large meter replacement programmeter at the hood dairy plant. we collected $ 70,000 in revenue last...
TRANSCRIPT
•Sacramento Water Service Area
•Large Meter Replacement Program
•Meter Accuracy Testing
•Calculating Payback Period
•Meter Study Results-Comparative Billing Analysis
Sacramento Water Service Area
Approximately 100 square-mile service area
140,000 connections
Over 1,250 large meters ranging in size from 3” to 10”
Large Water Meters
Source: Dept. of Utilities
1%
99%
Number of Large Meters
Number of Small Meters
11%
89%
Large Meter Revenues
Small Meter Revenues
Perfect Revenue and Decrease Water Loss
• Develop a replacement schedule for large meters
• Install a bypass on all new installs and replacement meters.
• Correct misapplied meters
• Update meter shop to meet current and future challenges
• Attended various AWWA conferences and large meter workshops
San Francisco
EBMUD / Oakland
SJW /San Jose Water
What are other agencies doing?
•The San Jose Water Company installs double meters in all large
non irrigation meter applications .
•SJWC tests their large meters based on a combination of time and usage.
•Golden State Water Company Installs bypasses on all large meters
•GSWC tests their large meters every year.
What do we do ?City Library County Jail
Other locations
Verizon on Freeport K street Mall
Our Process and Criteria
•2009 Program planning begins.
•2010 Start with oldest first.
•2011 High runners first , return on investment.
Testing Meter Accuracy
AWWA testing procedures Accuracy = Metered VolumeActual Volume
City of Sacramento’s Meter Test Bench
.
•
The Payback period is calculated as follows:
Costs of installation and maintenance of the new meter as a percentage of the projected revenue gain over the old meter
Examples of Misapplied Meters and Corrective Action
8340 BelvedereThis is a 10” Badger turbinemeter at the Hood Dairy plant.
We collected $ 70,000 in revenue last year. The low flow on this meter is accurate at 50 gpm.
We replaced it with three 6” compound Meters with a low flow accuracy at 1.5 gpm.
The three meters are tracking at 40% gain in revenue.
8340 Belvedere
Months Billing History in Comparison: 1 Year
Old Meter New Meter
Meter size 10” TurbineThree 6” Compound
Average Monthly Billing Units
8,242.25 11,626.40
Average Monthly Revenue
$6,916.29 $9,680.30
MeterAccuracy Test Results
Low % 101.38Med % 101.5 High % 101.44
Average Monthly Gain
$2,764.03
Average Monthly Gain: 40%
6916.29
9680.3
Old Meter
New Meters
8340 Belvedere 15 Year Revenue Projections
10% Volumetric Rate Increase for First Three Years
YearTotal Projected
RevenueTotal Gain Total Costs Net Gain
Current to Year 3 $531,592.98 $152,1156.42 $8,242.17 $143,914.25
Year 4, 6-9, 11-15 $1,507,293.80 $432,292.95 $5,400.00 $426,892.95
Year 5, 10 $301,458.76 $86,458.59 $8,760.00 $77,698.59
Totals $2,340,345.54 $670,907.96 $22,402.17 $648,505.79
Assumptions: No rate increases after year 3 and volumetric usage is static across years.Small chamber replacement occurs every year. Large chamber replacement occurs every five years.
Current Year Year 1 Rate Increase Year 2 Rate Increase Year 3 Rate Increase Years 4 to 15
New Meter $116,163.60 $126,606.44 $138,093.55 $150,729.38 $150,729.38
Old Meter $82,995.53 $90,398.72 $98,542.23 $107,500.08 $107,500.08
$0.00
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
$160,000.00
Revenue Projection over the Life of the Meter
.
Payback Period 2.6 Months
555 Capitol Mall Commercial Office
Months Billing History in Comparison: 8
Old Meter New Meter
Meter size 6” Turbine 6” Compound
Average Monthly BillingUnits
77.50 1068.59
Average Monthly Revenue
$58.13 $801.44
Meter Accuracy Test Results
Low % 52.51Med % 79.79High % 86.41
Average Monthly Gain
$743.31
Average Monthly Gain: 1,278.70%
Old Meter
New Meter
555 Capitol Mall 15 Year Revenue Projections
10% Volumetric Rate Increase for First Three Years
YearTotal Projected
RevenueTotal Gain Total Costs Net Gain
Current to Year 3 $55,831.06 $37,494.56 $2,940.00 $34,554.56
Year 4, 6-9, 11-15 $154,411.68 $107,577.61 $1,800.00 $105,777.61
Year 5, 10 $30,882.34 $21,515.52 $2,920.00 $18,595.52
Totals $241,125.07 $166,587.69 $7,660.00 $158,927.69
Assumptions: No rate increases after year 3 and volumetric usage is static across years.Small chamber replacement occurs every year. Large chamber replacement occurs every five years.
Current Year Year 1 Rate Increase Year 2 Rate Increase Year 3 Rate Increase Years 4 to 15
New Meter $12,556.65 $13,440.20 $14,393.04 $15,441.17 $15,441.17
Old Meter $4,490.35 $4,549.49 $4,613.26 $4,683.41 $4,683.41
$0.00
$2,000.00
$4,000.00
$6,000.00
$8,000.00
$10,000.00
$12,000.00
$14,000.00
$16,000.00
$18,000.00
Revenue Projection over the Life of the Meter
.
Payback Period 6.9 Months
831 H St Sacramento County Superior Court
4” compound4” Compound
2” Displacement
831 H Street
Months Billing History in Comparison: 9/ 22 y.o.d.
Old Meter New Meter
Meter size 4” Turbine4” Compound & 2” DISP
Average Monthly Billing Units
76.67 605.62
Average Monthly Revenue
$57.50 $454.22
Meter Accuracy Test Results
Low % 89.34Med % 95.21High % 97.94
Average Monthly Gain
$396.72
Average Monthly Gain: 689.94%
Average Monthly Billing Units
3" Meters (Qty: 44) 4" Meters (Qty: 62) 6" Meters (Qty: 52) 8" Meters (Qrt: 26)
Old Meters $148,885.28 $319,803.67 $772,759.61 $390,900.94
New Meters $213,142.03 $446,456.08 $900,122.92 $484,844.95
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
$1,000,000.00
Average Yearly Revenue Billing History (June. 2011-Dec. 2012)
Preliminary ResultsComparative Billing- Old vs. New Meters
The graph below illustrates increased revenue of the new meters based on the average monthly gain we are seeing on the large water meter replacements performed between June 2011 and Dec 2012.
43% Increase 16% Increase 40% Increase 24% Increase
Meter Size
No. of Meters
Old Meter Revenue Per Year
PotentialRevenue per Year
Cost to replace Meters
Net Gain For FirstYear
Maintenance Costs
Net Gain over 15 Yr Lifespan
3” 44 $148,885.28 $213,142.03 $42,002.40 $22,254.35 $44,700 $1,173,565.33
4” 62 $319,803.67 $446,456.08 $88,771.60 $37,880.81 $171,740 $2,223,522.03
6” 52 $772,759.61 $900,122.92 $124,800 $2,563.31 $254,800 $2,245,739.97
8” 26 $390,900.94 $484,844.95 $49,617.10 $42,793.41 $91,000 $411,258.46
Totals 184 $105,491.88 $6,054,085.79
184 Meter Accounts-Potential Revenue
3" Meters 4" Meters 6" Meters 8" Meters
Old Meters $2,920,087.00 $6,272,039.38 $15,928,893.88 $2,299,278.77
New Meters $4,138,353.23 $8,756,343.01 $18,554,233.85 $2,851,154.34
$0.00
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
$14,000,000.00
$16,000,000.00
$18,000,000.00
$20,000,000.00Projected Revenues
$(100,000.00)
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
3" Meter 4" Meter 6" Meter 8" Meter
New Meter Yearly Revenue
Old Meter Yearly Revenue
Meter Install Cost
New Meter Revenue Minus Install Cost
New Revenue - Install Cost
$207,156.12Total Profit after Install
Large Bypass
Large Bypass
Small Bypass
Meter Bypass InstallationPurpose and Benefit
1515 K Street