Lou Di Gironimo, General Manager Toronto Water, City of Toronto Toronto, Ontario, Canada
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1 Lou Di Gironimo, General Manager Toronto Water, City of Toronto Toronto, Ontario, Canada
2 Toronto Water Overview Serves 3.1 million residents and businesses Over $26 billion in infrastructure Infrastructure renewal and state of good repair supported by multi-year business plan Program is 100% rate-supported -no reliance on the property tax base to support Toronto Water services Operating/capital budgets supported by user fees for water consumption and sewage treatment 2010 projected revenues $768 million mainly through the sale of water as measured by water meters January 31 February 2, 2010 Toronto, CANADA
3 AMR Background 1999 City Council approves $21 million program to install meters in the City s flat rate water accounts Council directs staff to integrate the Universal Meter Program into a larger water meter and meter reading study City begins testing and analysis: City s water meters aging/require overhaul and replacement 84% of low volume meters have reached the end of their useful life same for majority of large volume meters also performing below industry standards metering and meter reading study January 31 February 2, 2010 Toronto, CANADA
4 AMR Background 2004 Council approves: All water meters be upgraded to allow for the wireless collection of meter reading data using a fixed area network All flat rate accounts be converted to metered accounts over a 4-year period 2008 Council authority received to enter into agreement with Neptune Technologies with Aclara RF Systems as the supplier of the meter reading technology December 2009 contracts executed January 31 February 2, 2010 Toronto, CANADA
5 Project Overview Install new meters and AMR at flat rate customers: 72,000 customers currently not metered Replace large meters (refurbish where possible) and install AMR: 14,000 large meters; only 93% accurate; 65% of meters fail internal guidelines for accuracy Replace most small meters (retain the newer ones): 380,000 customers; only 96.9% accurate (in 2001); 31% of meters fail internal guidelines for accuracy
6 Existing Meter Reading Systems and Processes Customers Custome Service r Staff Data Systems Meter Reading Software Meter Reading Equipment Geographic Territories ICI High Priority (over 6000 M3?) Installation Customer Service Northrop Grunman Meter Reading Software 2 1 City Readers (Local79) Toronto Etobicoke East York ICI Low Priority Res Metered & Remote Res Meter Cards 9 8 Voice Mail 9 City Call Center Water Billing 7 6 WMACS WMACS Hansen Hansen Itron Meter Reading Software (Olameter) Card File Text File 5 Schlumberger Telephone reading City Readers (Local 416) Hydro Readers Card Readings Telephone Readings North York (ICI) Scarborough York North York Toronto & Misc. Res Flat Rate Acct s Work Installers/ Repair Personnel January 31 February 2, 2010 Toronto, CANADA
7 January 31 February 2, 2010 Toronto, CANADA
8 AMR Information Flows Customers Customer Service Staff Data Systems Meter Reading Software Meter Reading Equipment Geographic Territories ICI High Priority (over 6000 M3) ICI Low Priority 8 City Call Center WMACS Res Metered 9 6 Water Billing Web access to water meter information Work Installers/ Repair Personnel 7 Hansen FAN Control Computer FAN Collectors MIUs All Areas January 31 February 2, 2010 Toronto, CANADA
9 Implementation of the Fixed Area Network and Data Repository Data Repository Call Center Residential Water Meter FAN Transmitter (MTU) WAN Backhaul Daily Reading Info Reading Info (Billing) Water Billing WMACS FAN Transmitter (MTU) FAN Software (NCC) Customer Info/Acct s Meter Install info ICI Water Meter FAN Transmitter (MTU) DCD (DCU) Install info Hansen Install Application Repair Personnel
10 AMR Business Case Benefits to City Benefits are now $28M/y revenue recovery and $5M/y in operations savings: Improved customer service Improved ability to conserve water (customer and City) Solves inequity in meter accuracy (customers paying some of the cost of others) Cost is approximately $219 M (net GST) Payback is 6 7 years: good investment January 31 February 2, 2010 Toronto, CANADA
11 Monitor, Display and Report System status FAN transmitter messages DCD status FAN and DCD Read Success Rate & Redundancy List of transmitters affected by DCD loss Device map Account and Route status* Meters read, Meters not read, high-low exceptions, Reading consumptions, ID mismatching, Consumption reporting, Transmitter read Redundancy, DCD status, Performance, Performance against targets Route status: downloaded, uploaded, missed reads, tampered meters and leak detection alarms Account status: tamper, high/low water consumption and leak detection FAN Location Information GIS Meter and DCD location map
12 AMR Benefits to Customers Meter Readings Meter Reading & Billing Meter Readings Accurate & Timely Bills New Services: Leak Monitoring Consumption Profiles On-Demand Reads Water Conservation Low Volume Customers (Universal Metering and Existing) January 31 February 2, 2010 Toronto, CANADA
13 Display Only City User Customer Access to all: meter readings, consumption history Access to their: meter readings, consumption history DR
14 Financial Summary (in millions $) Meters Transmitters Installation Total Universal Metering $ 3.8 $ 5.7 $ 20.6 $ 30.1 Small Meter Change-out $ 18.0 $ 30.5 $ 43.5 $ 92.0 Large Meters (including Mag meters) $ 7.5 $ 1.0 $ 56.3 $ 64.8 Sub-total $ 29.3 $ 37.2 $ $ Collectors WAN FAN Software Total Collectors & WAN $ 1.5 $.5 $.9 $ 2.9 Total RFP Cost $ Total Additional Support costs (10 years) $ 1.6 January 31 February 2, 2010 Toronto, CANADA
15 Cash Flows By Year Phase One Phase Two Phase Three in million $'s Net GST Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 TOTAL Meter Costs $ 1.1 $ 6.7 $ 6.7 $ 4.9 $ 4.9 $ 4.9 $ 29.3 FAN Equipment Costs $ 2.1 $ 7.6 $ 5.6 $ 8.4 $ 8.3 $ 8.3 $ 40.2 Installation Costs $ 7.9 $38.5 $38.5 $11.8 $11.8 $11.8 $120.4 Sub-total $11.1 $52.8 $50.8 $25.1 $25.1 $25.1 $189.9 Total Contingencies $ 1.1 $ 6.6 $ 7.5 $ 4.1 $ 4.5 $ 5.0 $ 28.8 TOTAL CAPITAL COSTS $12.3 $59.4 $58.3 $29.2 $29.6 $30.0 $218.7
16 AMR Project Status Update The project contract and details are being finalized Water meter installation is expected to begin in 2010 on large meters and some commercial locations Project rollout will take six years AMR integration with City IT will take 6 months to 1 year
17 Communications Plan Customer Group Universal Meter Installs Meter Replacements ICI* Replacements Overview of Deliverables Local Hotline Public Education Coordinator Internal Training Staff Guidelines & Protocols Introductory Letter* Information Sessions Website* Multi-lingual Sheets Press Release Ceremonial Installation Booklet Doorknockers* Canvassers Telemarketers Final Notice* Advertisements Water Supply By-law requires mandatory compliance
18 January 31 February 2, 2010 Toronto, CANADA
19 Lessons Learned Terms and Conditions: Important balance between ensuring the terms and conditions in the specification are strong enough to protect the City, while at the same time allowing for enough competitive bids. Consultant & Fairness Consultant Role: Involved in the project from beginning to end Involvement in the RFP preparation, management and evaluation, to ensure fairness in the process
20 Lessons Learned Specifications - Facilitating a Competitive & Fair Process: Remain generic enough that all the main vendors could submit a bid Important to have updated meter specifications and updated installation procedures prior to initiating the process Need to properly allocate associated project risks between the Contractor and the Municipality at the beginning of the RFP process Other considerations Consider phasing in of a large, complex undertaking instead of doing one large project (may speed up the process). Clearly articulate the benefits of the project to Council to maintain their support throughout.
21 Thank you/questions Lou Di Gironimo General Manager, Toronto Water
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