7448-SOWSCOPE OF WORK
RFP #7448-AMI-AMR FEASIBILITY STUDY
Project Name: AMI/AMR Feasibility Study
Description:
The City of Denton, Texas, is soliciting proposals for Automated Meter Reading (AMR) /
Automated Metering Infrastructure (AMI) assessment services to determine the feasibility,
develop a deployment plan along with cost estimates and schedule for implementing an
AMR/AMI system in the Water Utility service area. The City of Denton has approximately
39,000 meters ranging in size of 5/8” through 8” and a population over 130,000.
Purpose
The purpose of this solicitation is to select a qualified consultant to conduct an evaluation of
the existing water meter infrastructure, and develop recommendations, financial information,
and implementation timelines for the City’s potential adoption of an Automated Meter Reading
and/or Automated Meter Infrastructure (AMR/AMI) system that would best meet the needs of
the City of Denton.
CONSULTANT MINIMUM REQUIREMENTS:
Consulting Firm must have been continually in the business of providing AMI
Consulting and Program Management, for at least 10 years.
Firm must have overseen at least three large AMI projects with over 50,000 service
meters, including residential, commercial, and industrial customers within the last ten
years.
Some of the expected or potential outcomes for the evaluation of a fully automated AMR/AMI
system are as follows:
Improved operational, meter reading and billing efficiency and reduced costs through
remote data transmission
Improved customer service (ability to communicate more information and
collect more timely information such as leak detection, abnormal usage
patterns, and real-time consumption date, etc.)
Improved water usage accountability
Interface with Computer information system (CIS) and other necessary applications
Increased safety for field operations
Remote meter connect/disconnect
Tamper/theft detection
Reduced billing adjustments
Optimized revenue and reduced field work costs
Ability to retrofit existing newly installed meters with AMI/AMR units and make
recommendations based on cost benefit.
Determine reliability of meter reads through existing meter boxes and vaults
Scope of Work:
The consultant must perform a comprehensive analysis of the current water distribution metering
system needs, water customer service infrastructure, customer billing, software, cost, feasibility,
viability and relative advantages and disadvantages of installing an AMR/AMI system citywide.
The Consultant will develop up to three alternatives/options for the implementation and
deployment of AMR/AMI program throughout the City. At least one alternative shall include a
hybrid approach where some or all existing meters are not replaced but AMR/AMI technology is
added to them. Each alternative analysis shall include recommendations of hardware (meters,
computer systems, devices, etc.) with the advantages and disadvantages of each type of
installation within the existing environment, and a cost-benefit analysis for consideration by the
City.
The City may select one alternative for development of an implementation plan.
Project description:
The Consultant shall identify functional and technical requirements; produce a project plan,
which shall consist of the work breakdown roles and structure from existing operational needs,
scheduling, budget, staff requirements, risk plan, communication plan, quality control plan,
potential procurement plan, meter change-out program development and failure rate/warranty
expectations with each system.
Task 1: Project Management
The selected Consultant must provide project management support, including participation in at
least monthly meetings with the City of Denton’s Project Team, overseeing project schedule,
tracking task status, and reporting issues. The selected consultant will be required to assign a
dedicated Project Manager for the duration of the project to manage the assigned resources and
ensure the requirements of this project are fully satisfied. In addition, the selected consultant will
develop and maintain a schedule illustrating the work plan for executing the necessary activities
to complete the delivery described in this Scope of Work. This schedule must be updated at least
monthly.
Develop a proposed schedule with major milestones.
Recommend the makeup of City’s project team for AMR/AMI.
Assess the capacity of City’s staff to adequately support an implementation
project and ongoing operations after implementation.
Task 2A: Assessment of Existing Metering System
The selected Consultant will perform an assessment of the City’s current water system
infrastructure, billing system integration and IT requirements. The Contractor shall conduct data
gathering meetings / interviews with various City departments including but not limited to Water
Metering, Customer Service, Development Services, Denton Municipal Electric (DME),
Finance/Budget and Tech Services (TS/IT). The purpose of this task is to familiarize the
selected Consultant with the current system conditions as well as the needs and expectations of
the end-users after successful implementation of a new AMR/AMI system.
Task 2B: Compatibility Assessment of Existing Billing System
The City currently uses NorthStar as its customer information and billing system. The selected
consultant will be expected to verify compatibility with NorthStar. During the Assessment phase,
the Consultant shall assess how the proposed new meters will be incorporated into the current
billing system. Subsequently, the Consultant will prepare a transition plan that will ensure a
smooth and successful transition plan from the existing system to the new system.
Task 3: Evaluation of Advanced Metering Infrastructure System Technologies
The Consultant shall evaluate available AMR/AMI technologies and provide
recommendations on the best use of technology given the City’s operating environment.
This evaluation shall include:
Evaluate the performance of alternative meter reading technologies (system-
wide AMR, system-wide AMI, and/or a hybrid system) from industry-leading
manufacturers of AMR/AMI technologies in comparison to the base case
(current methods) and determine the relative advantages and disadvantages
of each alternative.
Determine if multiple AMR/AMI systems are available to meet City’s needs
ensuring that a fair, open and competitive process can be used to select a
responsible vendor/contractor.
Provide recommendations for an AMR/AMI technology system, billing system
integration, staffing evaluation, and other technology issues.
Define the risks this project poses to the organization and the required
mitigation strategies. These are from all aspects of the project including
equipment failure, battery life expectancy, customer billing issues,
communication problems, and software issues with migrating the new meter
information into our billing system. The consultant shall also provide
information on the critical success and risk factors of projects similar in size
and scope as well as direction on implementation.
Review and evaluate the option of integrating with DME electric meter reading
system.
Task 4: Financial Analysis
The Consultant shall include an estimate for infrastructure cost associated with the
recommended AMR/AMI improvements as well as annual operation and maintenance cost for the
first ten years of operation. A full economic analysis will be completed including a full cost/benefit
analysis, revenue recovery and payback, return on investment, life cycle cost, and net present
value. The financial analysis shall address how the system will improve/reduce current and future
billing issues.
Items to be addressed in the financial cost benefit analysis are:
Years to Payback
Net Present value
Return on Investment
Cash flow analysis
Funding options/recommendations, funding schedule by fiscal year and source
of funding including grants and any other financing options
Assessment of the impact of the project on City’s rates, fees and charges
Ensures that all required IT, communications and other hardware and software
needed for a successful implementation are detailed and any conflicts
identified and corrective actions recommended.
Recommendations concerning meter changeout schedules, based on the expected
lifecycle of the new meters and the schedule for conversion to AMI/AMR meters
outlined in the implementation plan.
The Consultant shall also identify and evaluate any grant, rebate, or other alternative funding
source for implementation of an AMR/AMI system that the City would be eligible to apply for and
obtain.
Task 5: Business Case Recommendations
Recommendations shall include a recommended AMR/AMI system to implement along with type
of system recommended while considering the potential retrofit of existing newer meters to
compliment the proposed system. A summary of the financial analysis as well as an estimated
phasing schedule for construction/installation shall be included.
As part of the Business Case development, assess and report on the organizational impact of
potential AMI/AMR solutions on applicable City business processes, personnel, and technology.
Task 6: AMR/AMI Implementation Plan
The Consultant shall also develop a “Road Map” for the City to consider if the City chooses to
implement an AMR/AMI system. The Implementation Plan shall include a basic description of
how the selected AMR/AMI technology would be deployed in a phased approach within the
entire City water service area. For the selected alternative, the implementation options shall
address project planning, budgeting, and overall system performance. A schedule for
implementation of the project shall be estimated based on the findings of the study along with
the selected system type.
Develop an effective communications plan that includes all aspects of the project from start to
finish. This plan should give expected timelines on when communication should start, how
often, when it should be updated, to whom and what methods should be utilized. This plan shall
also include an approach and examples of communications to customers about the system
being installed, what to expect, changing out meters, billing questions as well as internal
communication with all City AMR/AMI Team members to keep informed.
Summary
Guide the City in objectively assessing the criteria and conditions that must be
addressed with respect to existing systems within the City to successfully
deploy an automatic metering system. Evaluate and recommend potential
synergies and/or modifications to existing pilot systems to improve or build on
the proposed system.
Quantify specific operational benefits to be realized through AMR/AMI implementation.
Identify qualified AMR/AMI vendors and technologies that will meet the City’s
needs, including assessment of their long-term viability.
Identify AMR/AMI technology alternatives that present reasonable options for the City.
Review and present the City with existing systems available in the market, the tradeoffs
among those systems, and how the various functionalities of the systems can lead to
operational benefits.
Review, evaluate, and report on potential initiatives or opportunities for the City to
partner with our electric power company (DME) to collaborate on AMI infrastructure
costs.
Conduct a risk assessment of available alternatives and recommend strategies to
minimize AMR/AMI implementation risks. Provide alternatives and strategies to reduce
the impact and risk in operations, customer service, AMI installation, and management.
Evaluate applicable existing City IT hardware and software systems for required
interface with AMR/AMI. Assess if meter data management (MDMS) system upgrades
are required and make recommendations.