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AMI Feasibility Report I Client Name: City of Santa Ana The AMI system will require procurement of new meters, communication modules to upgrade some of the meters, installation of RF network, AMI software (head end system - HES), meter data management system (MDMS) to store meter reads and the customer portal to provide data to customers. The MDMS will provide data to the existing billing system. We recommend the city to consider a hosted AMI HES, MDMS and customer portal solution as this will not put burden on City IT department to install and manage these systems. The overall cost to manage these systems can be comparable and even lower if City opts for a hosted solution. For the AMI RF network, City can own the network and allow the vendor to manage it thereby eliminating the need for resources with specific technology skills. City should validate these options and cost through request for proposal (RFP) from AMI vendors. A major goal of an AMI implementation is to offset some or all of the project costs with yearly cost savings as a result of implementing the project. The major benefits of an AMI implementation are derived through automation of business practices that are manual processes, meter accuracy, improved billing practices and customer service. A high level benefits analysis was done that shows total benefits over project life of $9,942,093. These estimates are based on the analysis of information provided by the City and Black & Veatch's experience and industry knowledge. The actual benefits will undoubtedly vary; additional benefit values will be experienced in some areas and less in others. Based on the recommendation for a hosted AMI solution, the total project cost (i.e., one-time costs experienced during the course of the 3 year implementation period) is approximately $13,274,449 million dollars. The estimated $3,384,405 million total recurring costs are those related to the ongoing support of the AMI system over the 18 year project operating life, including both City and vendor costs. This total estimated cost of ownership is $16,658,853 million. City has a budget for currently replacing 1,500 meters per year. If this budget is taken into consideration for the project duration of three years, then the cost of 4,500 meter replacement can be used towards the AMI project thereby reducing the project cost. City staff will have to continue to seek funding for the AMI initiative. Black & Veatch recommends that the City should select an AMI program advisor and industry consultants to assist in developing detailed requirements documentation to support the procurements. The City should also constitute and engage a core AMI working group that has representatives from throughout the City organization that can act as a conduit to provide information to the team as well as communicate to their respective work groups. The AMI working group and advisor should develop detailed strategy, design, and plans for AMI as well as support the project management and implementation. The business case for the City appears to be favorable since the City's major strategic goals: enhanced customer service portal, customer water consumption data availability, distribution leak detection system, smart water meters, monthly billing cycles and cash flow improvements can be implemented by the AMI System. Additionally, there is an opportunity cost if the project is not implemented as there will be ongoing investment in the current manual meter reading technology, 25G-120