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Dade City staff weigh AMI meter replacement and smart water system to recover lost revenue
Summary
Consultants from Performance Services recommended replacing most mechanical residential meters with solid-state (AMI) meters and installing a fixed network to reduce apparent water loss, improve billing accuracy and generate roughly $400,000 a year in additional revenue or savings, according to their analysis.
Hector Samaria of Performance Services presented a proposed smart water program to the Dade City Commission that would replace older mechanical meters with solid-state meters and install a fixed automatic meter-reading network. “This is actually happening today, here in Dade City,” Samaria said, describing degraded meter accuracy and the resulting revenue shortfall.
Performance Services reported it tested 123 sample meters out of roughly 6,500 meters in the system and concluded the city’s total water loss is about 14.8% with an estimated recoverable portion from meter replacement of roughly 9.7% (the consultants presented a range with a conservative safety factor). The consultant team estimated about 6,400 new meters and approximately 6,800 collectors/fixed-network devices would be needed, with a project cost estimated at roughly $5.5 million; the proposed scope excludes meters replaced within the last four to five years.
Why it matters: older mechanical meters undercount low and ultra-low flows and degrade over time; that undercount means some customers effectively subsidize others when rates are increased. Samaria illustrated the effect: if some meters underreport consumption while others remain accurate, a general rate increase will unevenly affect customers because revenue collection depends on meter accuracy.
Performance Services’ projected benefits included: more accurate and equitable billing, alerts for tampering or leaks, reduced apparent water losses, elimination of recurring meter-repair costs (the consultant said the city now spends roughly $100,000 annually on meter repairs), and customer-facing apps and alerts. The firm estimated about $400,000 in annual revenue and savings capture from improved metering and billing reconciliation; it also presented a 10- to 20-year cash-flow table showing net positive returns over the equipment life in the consultant’s scenario.
Commissioners asked about testing methodology and operations: the consultant said the meter-sample size (123 meters) followed industry standards for a 90% confidence level and 10% precision; the team also conducted field surveys of roughly 300 meter boxes. Commissioners asked about leak detection and real (physical) losses versus apparent (meter/billing) losses; Samaria said the project’s primary focus is apparent loss recovery but that leak detection and I&I (inflow and infiltration) monitoring can be added on once the telemetry network is in place.
Procurement and payment structure: Samaria said the work is typically financed under Florida’s guaranteed-performance contracting statute and a tax-exempt lease-purchase structure; project funds are placed in an escrow account and contractors/vendors are paid from that account. He said annual measurement-and-verification (M&V) would be part of the contract to confirm guaranteed performance and that first lease payments could be deferred until 2027 under the schedule he presented.
Ending: Commissioners heard details and asked clarifying questions but did not vote. Staff will refine propagation studies, confirm irrigation-meter needs and provide a formal contract and schedule for council consideration.
