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Client Name: City of Santa Ana I AMI FEASIBILITY REPORT 1 Executive Summary City of Santa Ana (City) supplies potable water to over 45,000 customers which includes all of the City's 324,000 plus residents, business and institutions. The customers are metered by traditional water meters, these meters are manually read every two months to collect the meter reading. This data is then processed to provide the water bill. The City is committed to pursuing Automated Meter Infrastructure (AMI) to convert all water meters to smart meters based on new available technologies, transition from bi-monthly to monthly billing to improve cash flow, establish a distribution leak detection system, and provide water consumption data to customers while maintaining optimum customer satisfaction. The City selected Black & Veatch LLC (Black & Veatch) to provide AMI Feasibility Report for evaluating the use of smart metering technologies. Black & Veatch reviewed the City's current metering technologies and requirements, evaluated the manual meter reading system and accessed the relevant market leading solutions to evaluate available options and scenarios. This report provides the observations and analysis by Black & Veatch into the benefits of the City of Santa Ana progressing with the implementation of AMI. AMI system consists of smart meters that communicate over a radio frequency (RF) network to the software application that remotely collects the meter reads, alarms and events. The meters provide hourly readings on a daily basis and this data is provided to the customers on a web portal, data is also used for billing, leakage detection, water audit and other purposes. The AMI system also provides a foundational network that can potentially be used by City for leak detection, pressure monitoring, and other value-added services (on the distribution system) that constitute the basis of a smart water utility. The recent drought in California and desire of the customers to be provided with timely and granular data that enables them in understanding water usage, water conservation and leakage detection has led to many utilities including the City of Santa Ana to consider AMI on a priority. Based on water industry surveys by Black & Veatch, approximately two-thirds of water utilities surveyed indicated that they have or are pursuing AMI. There are growing numbers of water utilities of similar size to the City that have embarked on AMI initiatives. As the market has matured and business benefits have been demonstrated, the unknown risks of moving forward have evolved into the known opportunity costs of not progressing. This report details several ways in which the City can leverage the AMI solution: increased customer service to customers, transition to monthly billing, pressure monitoring and leakage detection. A transition to monthly billing, based on actual meter reads, will improve cash flow as there is a one-time improvement when customers are moved to monthly billing. There will also be a reduction in billing errors as more frequent and accurate reads become available and estimates are reduced. The meter readers will not be required to manually read the meters and can be reassigned for other tasks. There will be savings as vehicles will not be required for meter reading, further resulting in less greenhouse gas emissions. The accuracy of new meters will result in recording actual usage and therefore lower losses. Identification of defective or stopped meters can be done from the meter read data. Meter read data will enable other engineering planning activities and more accurate water audit. BLACK & VEATCH I Executive Summary 25G-119