HomeMy WebLinkAboutCouncil Workshop Minutes 06.27.2006 MINUTES
COUNCIL WORKSHOP
JUNE 27, 2006 6:30 P.M.
COUNCIL CHAMBERS
A Council Workshop was held in the Council Chambers and called to order by Mayor Ken Olson at 6:30
p.m. on June 27, 2006.
COUNCIL MEMBERS PRESENT:
x Dick Fritzler
x Kate Hart
_x_ Gay Easton
Jennifer Johnson
_x_ Doug Poehls
_x_ Mark Mace
_x_ Chuck Dickerson
_x_ Norm Stamper
OTHERS PRESENT:
Mary Embleton
Perry Asher
Larry McCann
Sam Painter
Steve Klotz
Jared Schoch, Johnson Controls
Public Input {three-minute limit):
Citizens may address the Council regarding any item of City business not on the agenda. The duration for an individual
speaking under Public Input is limited to three minutes. While all comments are welcome, the Ctntncil will not take action on
any item not on the agenda.
· None
Public Utilities Denartment:
* Johnson Controls: Report on results at the halfway point.
A letter from Jared Schoch, Johnson Controls, was distributed to the council, and a copy is attached to
these minutes. Jared Schoch reported that Johnson Controls (JCI) is at the half-way point of developing
the project to upgrade the city's water meter system, add automated mater reading, and make energy
efficiencies throughout city facilities. After JCI tested twenty water meters, it was estimated that 5 to 7
percent of unaccounted for water savings could be generated from replacing water meters. However, a
sample of 1 O0 to 150 meters is needed in order to determine the actual unaccounted for water savings that
could be generated from this project.
JCl typically sees 7 to 9 percent inefficiency for water fi.om systems like Laurel's system. Information
regarding the finance payback project for 8, 10, and 12-year scenarios was included in the letter. At this
point, the department heads are comfortable with an 8 to 10-year project, rather than a 12-year project,
based on the financial situation of the City of Laurel. Since JCI did not find enough savings in the
inaccuracy of the meters, they looked at other potential savings streams including: utilizing additional
savings from unbilled city water use; in parks, utilizing additional savings fi.om reallocating full-time
employees; adding a one-time capital contribution to buy down the project; an annual contribution; and
other scenarios poss~le to make this project work. The worst case scenario is that 60 to70 percent of the
project gets funded by itself and the city would have to potentially fund the remaining 30 to 40 percent.
JCI thought it was prudent and respous~le to report these findings based on the 20 meters instead of
doing it two months fi'om now when the entire budget for developing this project has been spent.
Council Workshop Minutes of June 27, 2006
Larry McCann prefers that the project does not extend out moro than ten years. The only way to do that
is with an annual contribution of $80,000 per year or a one-time contribution of $650,000. The $80,000
per year contribution would allow the city to do some important projects, including the Main Street water
line and the Eighth Avenue lines. Larry prefers the ten-year payback, as shown in Option 2, 1 O-Year
Payhack, Scenario A of the information, because it will self-fund itself for ten years and JCI guarantees
the self-funding.
Mary stated that the Water Fund has substantial debt right now, and it would be prudent not to incur any
more debt if possible. Debts will start being paid offin 2017, so a ten-year payback on this project would
fit very neatly in with that. The recent rate increases put the Water Fund in a good cash position and
moderate increases are needed in the future. Right now, the city has money to do some projects. In a
meeting with Jared recently, Mary asked what would happen if the city had a one-time cash infusion at the
beginning of project. The value of money at the beginning ora project has a greater impact on what is
carried over for the rest of the project. Whether the city does a one-time cash infusion or dedicates money
every year for the next ten years, either way will help the project and guarantee its success. Mary would
like to see this through and thinks that the city would reap great benefits from it.
Mayor Olson stated that, on the proposed project, the savings the city would realize on a monthly basis is
from 60 to 70 percent, based on the fact that JCI found a 5 to 7 percent error on the meters.
Jared stated that information regarding the figures of the guaranteed savings that JCI will control over a
ten-year term will be presented to the council in a month or so.
Mayor Olson mentioned that the city will have a current expense of about $90,000 at the end of this part
of the project. If the council elects not to go forward with it, that would be out-of-pocket expense. If the
council decides to continue with the program, the $90,000 would be incorporated into the life of the
project and be paid back by the mount of savings realized.
Jared stated that about half of the money has already been spent. JCl wanted to make sure the council is
comfortable with the findings and the situation presented and that $90,000 is included in the capital
upfront costs of this project. If the city moves forward, it is ail paid for. If the city decides to opt out, the
$90,000 has to be paid for JCI's time and services.
Mayor Olson thanked Jared for his presentation.
· Sewer trunk line re-bid
Larry explained that the sewer trunk line project to replace the main lines from the city to the plant was
bid last year. The bids came in too high, and the city is ready to go to re-bid on the project. Larry asked
Morrison-Maierle to cut the project in half. Larry thinks the bids are going to come in substantially higher
than they did last year. Right now, based on flows down there, the city would drop offthe Lindy Lane
sewer main. That po~ion of the project will have to be done in the future. Because the project is being
re-bid, an amendment to the contract with Morrison-Maierle for the engineering services to go out for re-
bid will be needed.
Last fall, the project was $400,000 over the pre-Katrina estimate. Motrison-Maierle's engineer is putting
together a new estimate. Pipe coats have skyrocketed, and twenty feet of pipe cost $532 recently. The
city needs to move ahead with at least a phase of the project. The design is good for three years by the
State of Montana, so when this phase is done, the city can apply for more grants to do the second phase.
Council Workshop Minutes of June 27, 2006
The contractors intend to bid the project, but hoped they would have more working room. Lindy Lane
road is a 20-foot wide easement that actually belongs to NorthWestern Energy and the contractors will
have to do an alley operation in that road. That drove that cost pretty high and is why the city opted to put
it in as an alternate bid. The work should begin in October when the ditches are shut off.
· Authorization to bid: West Main Street water main
The city is ready to bid the Main Street water main project. The design is good for three years fi:om the
Department of Environmental Quality. One occupancy permit with the State of Montana Department of
Transportation will have to be redone. The Department of Transportation will probably not repave Main
Street until 2008. The schedule has changed recently, and the city has delayed the project until closer to
when MDT will repave the street.
Discussion regarding Eighth Avenue and MDT's programmed projects.
Eighth Avenue is one of the highway department's programmed projects. MDT was going to do Main
Street with maintenance money for this district bemuse it is a mill and overlay. Now they are going to try
to run it through a programmed project to get it done. If that does not work, they will do it with district
funds.
Steve explained that the city is jointly involved in that project with the curb, gutter, and sidewalk, and
MDT will do the street resurfacing. In the grant application for urban routes for preventive maintenance,
the city nominated everything up to Eighth Avenue, as everything fi:om Third to Eighth Avenues qualifies
for preventive maintenance. The state and the city are trying to split the savings that comes from the
federal government so we will realize a huge savings if we wait.
Staff's recommendation on the West Main project fi:om Third to Eighth Avenues is to do an SID for
sidewalks similar to that done with the East First Street project. The delay until 2008 would allow time to
prepare the SID. There was no SID on the First to Third Avenue project, as federal money was received
through the Urban Pilot Program grant to complete a streetscape project.
Mayor Olson mentioned that the Montana Depashnent of Transportation will have their district meeting in
Red Lodge on Thursday. On the way to Red Lodge, the board will drive through Laurel to view Eighth
Avenue and will pass through the proposed bypass area for 212 South. ARer the end of the meeting, they
will allow a half hour for elected officials' comments. Mayor Olson will attend fi.om 10:00 to 10:30 and
will inquire regarding the Main Street and Eighth Avenue projects.
Administrative Assistant:
· Resolution - Approval for installation of dedicated T-1 line for video arraignment
Perry explained the resolution for a contract with Vision Net to install a dedicated T-1 line for the court
video arraignment system. The annual costs would be $6,146.16. Perry stated that the fee allows the city
access to one of Vision Net's lines that is already in the ground, and the $313.25 hookup fee is small
because it is just a matter of hooking up. The resolution will be on the council agenda on July 5*.
· Report on the East First Street project
Steve Klotz reported that the paving and the majority of the curb, gutter, and sidewalk are done on East
First Street. Some tree removal, tree planting, installation of the signs, a small amount of curb, gutter, and
Council Workshop Minutes of June 27, 2006
sidewalk work, and the striping of the streets needs to be completed. The project should be completed
within three weeks.
· 2006-2007 Preliminary Budget - Enterprise Funds
Steve distributed information to provide history of the Solid Waste Fund, and a copy is attached to these
minutes. The rote increase for commercial businesses went into effect last year. The total revenues
includes collection of commercial and residential fees for the route truck, hauling containers, fees
collected at the transfer site, and interest on cash. We are barely gaining on revenues, which is typical
since the city limits are not increasing and we do not have a lot of new customers and businesses to
increase the revenue base for the collection. With the 20 percent increase in revenues in 2005-2006,
sixteen (16) percent resulted fi'om the increased commercial collection fees. That should continue
because of the step program on the fee schedule. The program was based on assigning the volumetric rate
to the costs that customers pay for the removal of solid waste. The motivation was to hold businesses
accountable for the waste in order to reduce what is put in the landfill and to make the system a little more
efficient. Some recycling opportunities were offered to motivate businesses. There has been a two
percent reduction in costs for what the city puts in the landfill. The expenditures line in the information
broke out the capital to show expenditures for O&M. The twelve percent increase this year can be
accounted to fuel costs and $15,000 for an accident with the route truck, for which the city is reimbursed.
There is $120,000 in the budget for a new route truck, but it is still undecided as to whether to wait
another year to make that type of capital expenditure. In 2005, revenues were about 30 percent
commercial and 70 percent residential. That has since changed to 40 percent commercial and 60 percent
residential because of the commercial rate increase.
Mary mentioned that the revenues projected for the Solid Waste Fund are $586,100 and the expenditures
are estimated at $728,000. The gap will be filled by cash reserves.
Lan-y explained that an addition at the water plant is included in the capital. Proper restroom, kitchen,
meeting mom, and office facilities are needed. The amount in the budget is $165,000. Fencing for the
property is part of Homeland Security and is needed. Replacement of filters is another concern. The
filters have worked really well, but they have not been touched since it was built in 1958. It will cost
$400,000 to rebuild the filters.
In the water system, $75,000 has been budgeted for a shop building and additional money will be
budgeted in the sewer system budget. One building will provide a place to store the equipment, including
trucks and specialized equipment. The money for Johnson Controls to finish the automated meter reading
system is in the budget if the city decides not to continue with the project.
The city has submitted a grant application for $1 million, $750,000 from CDBG and the balance from
DNRC, for the first phase of rebuilding the sewer plant. The first phase takes care of some of the issues
that need to be addressed. If the grant is received, the process of rebuilding the headworks and addressing
a hydraulic problem in the clear wells will proceed. The lawn mower at the sewer plant needs to be
replaced.
The sewer system would share the cost for the shop building with the water system. A video camera for
$56,000 has been budgeted under machinery and equipment. Instead of continuing to budget $15,000
annually for video work, the city would have its own video camera~ The city's sewer system would be
videotaped once to build a database. Then as sewer problems arise, videos would be available to the
insurance company to detemfine whether or not the city has maintained the system. Purchase ora new jet
redder is included for $280,000. The jet redder is used on a regular rotation on a monthly basis. The
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Council Workshop Minutes of June 27, 2006
budgets for the lift stations were not changed at all. Rebuilding of the lift stations would be included in
the second phase of the grant, iftbe grant is received. The lift stations are 25 and 35 years old.
Information on rate increases will be presented at a future meeting.
Executive review:
· Appointment: CC Planning Board - Ed Thumer to a two-year term ending June 30, 2008
Mayor Olson removed the appointment from the council agenda until further notice. This is the council's
appointment and suggestions could be made.
· Resolution - Two-year contract for city attorney legal services with Elk River Law Office
Separation of the civil and prosecution duties will continue.
Mayor Olson stated that we are trying to have Sam present at the staffmeetings and for two to three hours
after that. There is an increase in the contract. The resolution will be on the council agenda on July 5a~.
· Policy Discussion: Personal use of City vehicles by City employees
Doug stated that he is not opposed to the way the policy is w,k~en.
Chuck asked regarding vehicles that leave the city limits and are driven into Billings to get home and to
get hack to work
Mayor Olson explained that the practice is called "domicile to duty". He made some calls to other
entities and talked to Commissioner Kennedy. The county public works department heads have a vehicle.
Billings does not have city vehicles, but they have a vehicle allotment. Tiaa Volek receives a $400/month
allotment for transportation. In contacting other cities, Mayor Olson was informed that they wish they
had more vehicles available. If vehicles are not available, the city is obligated to give the depa~hnent head
a stipend of a vehicle allowance. In regard to "domicile to duty", Mayor Olson stated that it has been
proven from the people he contacted that it would be cheaper to give them a vehicle than to give a vehicle
allowance. In the case of an employee who is on call 24/7 and to be respons~le to have a vehicle to use
for city business, Mayor Olson believes it is an advantage to the city. Laurel is not outside of the realm of
norm but is about in the middle. Perry is a contractual employee and his contract requires that he lives in
the city limits. Akhough Mayor Olson would prefer that department heads lived in the city limits, there is
no law that states they have to live within the city limits. Yet the city still has to provide the opportunity
for them to respond to emergency situations.
Chuck asked if more would be gained from having a stipend than the depreciation on the vehicles.
Mayor Olson stated that one of the senior clerk-treasurers in the state indicted that they would be money
ahead if they had more vehicles and did not have to give out the stipend.
Chuck asked regarding liability, in light of the letter received from the clerk-tressurer regarding insurance
issues.
Council Workshop Minutes of June 27, 2006
Mayor Olson stated that the vehicles are covered if they are going to and ~om work. They are not
allowed to use the vehicle for personal uses. If they decide to go outside the norm and have an accident,
he would find it very difficult to make that an insured incident. The city's policy is strict.
Kate stated that vehicles need to be provided to employees that are required to be on call and available to
the public outside of regular business hours. The way it is stated, we are not going to see a city vehicle at
a ball game. They are to be driven to and fi'om work and for a meeting somewhere. She thinks that the
verbiage covers the city in that.
Doug suggested that if employees are given a vehicle allowance, the city would have no control over what
they drive and how it is maintained. If there is a company vehicle, there is some recourse for
requirements. He would rather have a company vehicle.
Norm has no problem with the vehicle. The city already owns the vehicle and is paying the cost to
maintain it and provide some additional fuel. He receives mileage for his job, and he can easily see that
paying for that would cost more than what the city is going to pay for fuel in the existing vehicle. One
concern would be if the administrative assistant required a new vehicle, and Norm suggested that such
requests should come before the council.
There was discussion regarding the verbiage in the administrative assistant's contract. The contract states
that the city would provide a vehicle "so long as a City vehicle ' ' "
~s available. Any changes in the contract
require council ratification.
Doug stated that the contract said the vehicle "may be used to transport Employee to and from home as
well as for some other limited private use. City shall withhold income taxes for all use of the vehicle that
constitutes a benefit to the Employee under Montana law." He asked the attorney whether that statement
would cover the city in the case of an accident during personal use.
Sam answered that the analysis would be whether the administrator was in the scope of his job and duties
when the accident occurred. There is really nothing in the contract that the attorney could write that
would prohi~oit the employee bom personal use or to make the insurance company cover him for personal
use. The city has policies regarding city vehicles that apply equally to l%ny regardless of his contract.
The "some other limited private use" language comes from the possibility that a city employee could
attend training in Bozeman might stop at Wal-Mart on the way home. That would be a limited personal
purpose, but it is really not business. Insurance coverage is going to be a cut and dried analysis of the
insurance coverage with the scope of duties.
Resolution No. R06-67: A resolution authorizing the Mayor to execute a revised contract for the
Administrative Assistant to the Mayor position between the City of Laurel and Perry Asher.
(Postponed at council on June 20, 2006)
Perry wanted definitive language in the contract regarding attendance at ICMA Conferences, which is
located in San Antonio, Texas, this year.
Review of draft council agenda for Wednesday~ July 5~ 2006
· Public Hearing: Resolution No. R06-__: A resolution to adopt an official Schedule of Fees and
Charges for the City of Laurel repealing all previous resolutions that set fees or charges that
conflict with the schedule attached hereto.
· Public Hearing - July 5th: Conditional use permit application - Wal-Mart
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Council Workshop Minutes of June 27, 2006
The CRy-County Planning Board appointment will be removed from the council agenda.
Announcements
Dick and Norm met with Commissioner Kennedy today regarding the proposed Veterans' Cemetery. The
idea for the Yellowstone County Veterans' Cemetery is to get up to one mill levy on the ballot this fall to
finance the project. A one mill levy would produce about $220,000 to the county, who could maintain the
cemetery with that amount. Norm mentioned that groundbreaking could happen in a year, if the mill levy
is approved. Mayor Olson thanked Dick, Norm, and the committee for their work on this issue.
Mayor Oison mentioned that the fire department has planned a fireworks display that is larger than any
previous displays. Proper notice regarding the fireworks has been published.
Mayor Oison informed the council ora citizen's request to review the dog ordinances because of an attack
by a dog that has also attacked other people.
There was discussion regarding review of the current dog ordinance. The City of Billings has a "one-bite
role" for dogs. Laurel has a liberal ordinance that allows a dog to attack three times before it is deemed a
vicious dog. Mayor Olson asked that the Emergency Services Committee review the issue, and Sam will
assist with this critical issue.
Attendance at the July 5th council meetln~
All present will attend.
Other items
None
The council workshop adjourned at 7:52 p.m.
Respectfully submitted,
Cindy Allen
Council Secretary
NOTE: This meeting is open to the public. This meeting is for information and discussion of the
Council for the listed workshop agenda items.
7
Jti;tHNSON
CONTROLS
Johnson Controls, Inc.
10289 W. Centennial Rd.
Littleton, CO 80127
Tel: 303-932-3768
Fax: 303-979-6847
www.lohnso ncontrols.com
June 15, 2006
Perry Asher, Mary Embleton, and Larry McCann
City of Laurel
115 West First Street
PO Box 10
Laurel, MT 59044
Dear Perry, Mary and Larry,
Following is a summary of our status in the development of a performance contracting program
for the City of Laurel. At this time, we look for direction from the City to allow us to move forward
into detailed development based on the preliminary economics that the potential project has
demonstrated so far.
Per our meeting this past Monday, June 12, we are at the half-way point of developing a project
to upgrade the City's water meter system, add automated meter reading and make energy
efficiencies throughout City facilities. Before we move forward, we want to make sure that the
City is comfortable accepting what the estimated worst case economics of this project could be
once we complete development. The reason we are asking for direction now is to be judicious
with the City's funds as part of the development agreement and to make sure the City is clearly
aware of the vadous economic scenarios that could play out once development is complete.
Facilities Energy Efficiencies
The energy efficiency improvements we found throughout your facility self-fund within 10-12
years. Based on reviewing this information with Steve KIotz and then again with Perry and Mary,
we have been given positive direction to move forward with these projects. We will move forward
once we gain similar feedback on the water meter upgrade as well.
Water Meter Upgrades
The unaccounted for water savings that we could generate from replacing City water meters is
estimated to be 5 - 7 percent. This estimation is based on a sample of 20 water meters tested.
Until we pull more than 100 meters, we won't have a large enough sample to determine the
actual unaccounted for water savings we could generate from this project. We typically see
between 7 - 9 percent unaccounted for water from an aging meter system like that in Laurel. The
difference in these perCentages is enough to create a project that funds itself from unaccounted
for water savings versus not funding. It is important to note that our unaccounted for water
savings are based on the 20 meter sample, If this sample is not representative of the entire
meter population, we may be far greater results during detailed development.
JCl is comfortable guaranteeing the accuracy of water meter upgrade projects like this for up to
15 years. We have found that water meters work very effectively up to this point and then slowly
begin to lose accuracy from years 16 - 20 before finally needing replacement between years 20 -
25. However, we know there are mixed opinions and comfort levels within the City related to
committing to a project for more than 10 - 12 years total financed payback. Based on this input,
we put together our preliminary analysis portion of development utilizing the 10-12 year payback
criteria. Using this criteria, we determined the water meter accuracy gain savings generated are
not enough to fund this project based on what the 20 meter sample provides us.
As a result, we t~ave quantified other savings streams that are additional benefits to the City as
part of this project including operations, maintenance, billing errors and annual meter
replacement savings that - when combined with the meter accuracy savings - total roughly
$120,000 in annual savings. We have provided various scenarios to the City to help make the
economics of this project work including: 1.) Utilizing additional savings from unbilled City water
use, 2.) Utilizing additional savings from reallocating an FTE from meter reading, or 3.) Adding a
one time capital contribution to this project, or 4.) Adding an annual capital contribution to this
project. Depending on [he scenario selected, the savings we have found for this project can pay
for 60 - 100% of this project in 10 - 12 years without the need for FTE savings or capital
contribution.
Bottom Line
In a time when inflation on raw materials is rising rapidly, federal, state and local budgets
continue to shrink, financing interest rates continue to rise and there are more capital projects to
implement than there are funds to pay for them, JCl views getting the majority of a project paid for
through savings as a real win for municipalities. In the worst case scenario, the City would
receive 60 - 70 cents on every dollar spent to fund this project which is a real win for almost any
project in today's business climate.
The alternative path we discussed the City could use is paying for the material for the meter and
AMR project over 4 years and implementing it with its own FTE labor force over that time. The
material would cost the City roughly $400,000 - $600,000 and would consume a large percent of
the City water meter team's time over the next four years. Based on funding challenges and
other priorities that arise, it is pessible the project would never get Completely finished.
If the City would contribute those funds to buy down this project today or over four years as part
of the performance contracting project, JCl could implement this project under economic terms
that could easily exceed the 10-12 year payback criteria targeted. Either way our team looks at it,
the economics are more favorable to implement this project utilizing a performance contracting
project method.
Finally, we must stress to the City that the economics we put together are based on a sample of
20 meters during our preliminary analysis. We have put together what we believe are the worst
case scenario economics for this project to make sure the City truly is comfortable in case this
project turns out this way. We believe there is a good chance the economics will actually improve
as we do detailed development and that the final savings determined could provide a project that
funds without any capital contribution or use of operations and maintenance savings at all.
We urge the City to review the business case scenarios I have attached on the following page as
background information to this summary letter. We truly believe this is a great use of City funds
and investment to increase operational efficiencies within the City, increase revenues, decrease
operational costs, decrease energy costs and increase building occupant comfort.
We are hopeful of moving forward as your performance contracting partner. Please contact me
with any specific questions.
Sincerely;
Jared Schoch
Account Manager
JOHNSON CONTROLS, INC.
CONTROLS
City of Laurel Water Meter Scenarios and Options
BASE CASE
iScenerio A Scenario B Scenario C Scenario D
Cost $1,298,000 $1,298,000 $1,114,000 $1,114,000
Meter Retrofil ~ 2", AMR Meter Retrofit ~ 2", AMR on Old Meter Retrofit < 2", 3Id Meter Retrofit ~ 2",
Cost Scope on All Meters All Meters AMR on All Meters ~,MR on All Meters
Savings $69,600 $120,000 $67,000 $117,000
6avingsScope MeterAccur/Maint, Mat. MeterAccur/Repair/FTE MeterAccur/Maint. Mat, VleterAccur/Repair/FTE
Financed Term (approz) 23 11.5 20 10.5
OPTION 1 - t2 YEAR PAYBACK
Scenerio A Scenerio B Scenerlo C Scenario D
Cost $1,298,000 $1,298,000 $1,114,000 $1 ,I14,000
Meter Retrofit ~ 2", AMR Meier Retrorit ~ 2", AMR on 0Id Meter Retrofit ~ 2", Old Meter Retrofit ~ 2",
$ost Scope on All Me[ers All Meters ~,MR on All Meters AMR on All Me,em
Savings $69,600 $120,000 $67,000 $117.000
Savings Scope Meter Accur / Maint. Mat. Meter Accur / Repair / FTE rioter Accur ! MainL Mat. Meter Accur / Repair / FTE
1 Time Capital Contribution $550,000 NA $390.000 NA
)r) Annual Contribution Over Term $57,100 NA $39,000 NA
[nanced Term (approx) _ __ 12 11,5 12 10.5
OPTION 2 -- 10 YEAR PAYBACK
8cenerio A Scenerio B Scenerio C ' Scenerio D
Cost $1,298,000 $1,298,000 $1,114,000 $1,114,000
Vieter Retrofit 5 2", AMR en Old Meter Retrofit 5 2", Old Meter Retrofit-< 2",
Cost Scope ~feter Retrofit ~ 2", AMR ~,11 Meters AMR on All Meters AMR on All Meters
Savings $69,600 $120,000 $67,000 $117,000
Savings Scope ~le[erAccur/Maint. Mat. MeterAccur/Repair/FTE MeterAccur/Maint. Mat. MeterAccur/Repair/FTE
t Time Capital Contribution $650,000 $163,000 $491,000 $4,000
or) Annual Contribution Over Term $80,000 $19,000 $56,500 $500
Financed Term (approx) 10 10 lC 10
OPTION 3 -- :8 YEAR PAYBACK
Scenerio A Scenario B Scenario C Scenario D
Cost $1,298,000 $1,298,000 $1,114,000 S1.114,000
Meter Retro01 ~ 2". AMR Meter Retrofit-< 2", AMR on Old Meter Retrofit -< 2", 'Old Meter Retrofit -< 2",
Cost Scope on All Meters All Meters AMR on All Meters AMR on All Meters
Savings $69.600 $120.000 $67,000 $117,000
Savings Scope Meter Accur / Maint. Mat. Meter Accur / Reparr / FTE Meter Accur / Maint. Mat. Meter Accur / Repair / FTE
Time Capital Contribution $761 000 $368,000 $600.000 $205,000
or) Annual Contribution Over Term $112.000 $50.000 $81,500 $28,000
Financed Term (approx) 8 8 8 8
Uti HNSON
CONTROLS