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16 <br />AMI Feasibility Report I Client Name: City of Santa Ana <br />Cost savings for 3,717 meters not replaced (includes meter and installation cost) is $599,000. <br />However, these are old meters and may require registers to be upgraded, cost of registers and <br />installation is $465,000. This leaves a saving of $134,000 compared to the detailed case where <br />37,739 meters are to be replaced against 34,022 meters as in this case. We must be careful in this <br />comparison as we are considering meters that are over 10 years old that are not recommended for <br />upgrade to AMI. This may result in more cost as these meters may fail in a short period leading to <br />further cost of replacement and maintenance. Decision must be made on a number of factors <br />including accuracy, age of meters and their condition to decide if they will be upgraded to AMI or <br />replaced. <br />4.4 DISCUSSION OF CURRENT OPERATION OF METERING AND METER <br />OPERATIONS <br />4.4.1 Backflow (Negative Readings) <br />Generally, occasional backflow conditions if they occur are not captured by the traditional water <br />meters or the periodic meter reading process. City may require customers to install backflow <br />prevention devices where necessary, however device failure or non-compliance can result in <br />inadvertent backflow. This is not a significant water service revenue issue or an issue related to <br />wastewater services as this service charge is based on the water service meter and City currently <br />uses fixed charges. However, this can be a potential health and safety problem as the backflow can <br />result in contaminants entering the City water system and being transferred to other customers. <br />The AMI system, with its finer resolution interval data collection, along with potential backflow <br />alarms, can provide indication of potential locations and City can alert customers to this condition <br />or take necessary action. <br />4.4.2 Current Replacement Practices <br />City has a budget for annual meter replacement.that covers about 1500. meter changes each year. <br />The meters are replaced depending on the size (as large size meters are usually repaired unless <br />they are too old) if they are not performing to the desired accuracy level, or become defective. City <br />also repairs meters that are 3" and above, if they are old (20 years plus), then the meters are <br />changed. Smaller size meters are not repaired, in case of 2" meters, the registers may be replaced if <br />necessary. However, since the majority of the existing meters will be replaced in the AMI program, <br />the average age of City meters will be reduced and the need to replace and repair meters will likely <br />be reduced for several years after implementation of the AMI program. This will mean that <br />resources and dollars currently supporting this effort will be available for other purposes in the <br />near-term. <br />4.4.3 Tampering and Theft <br />City has not reported significant number of tampering and theft cases. However, AMI meters will <br />provide tampering alarms that need to be investigated by field staff. Even if City has not seen <br />significant theft and tampering, AMI will provide functionality that can deter potential tampering <br />and prevent revenue loss by early detection of theft <br />25G-134 <br />