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Regular City Council Meeting Monday, March 29, 2010 Page 8 Klausing moved, Pust seconded, enactment of Official Summary of Ordinance No. 1390 entitled, ""An Ordinance Amending Title Three, Section 302: 302.08 C Manager and Server Training; and 302.15 B (Minimum) Penalty;" (Attachment B; as amended Roll Call Ayes: Roe; Pust; Ihlan; Johnson; and Klausing. Nays: None. 10. Presentations a. Automated Meter Reading (AMR) Presentation Public Works Director Duane Schwartz provided a Power Point presentation of Automated Meter Reading (AMR) options. The presentation addressed back- ground information on this technology, with more detailed financial and imple- mentation information available at a later date if the City Council is supportive of this system. The presentation addressed the City's current water distribution history and age; staff-consuming process in door-to-door meter readings with approximately 10,500 meters read every quarter within a 14 square mile area, with one section billed every month throughout the cycle; commercial and residential reading; and manual read issues. Mr. Schwartz addressed two different AMR systems: drive-by or fixed-based sys- tems; AMR communication types: one-way or two-way systems; and staff's ra- tionale for delaying this technology and review of past versus current technolo- gies. Mr. Schwartz noted benefits to the City and its customers through imple- mentation of an AMR. Mr. Schwartz estimated that .75 FTE staff time and an additional vehicle were in- cluded in the cost of meter reading, including Workers Compensation risks; and estimated that the cost was $1.5 - $1.7 million over a 5-10 year total implementa- tion period, with commercial and hard-to-read accounts first with an initial $200- 300,000 expenditure, and then the remainder of residential meters. Mr. Schwartz advised that additional information could be provided in the future related to me- ter and AMR costs as they related to cost-effective purchasing of a meter and reader as a package or bid out separately; and estimating an approximate 19 year payback Discussion included costs over the life of the meter based on battery life span; similar replacement considerations for meters; costs incurred regardless of the system in place (i.e., meter purchases); improved customer service and accuracy of lost water; and building costs into the fee structure, with some funding already built into the current fee structure as a capital improvement, making the increase in fees significantly less.