Council reviews $5.6 million Amerisco proposal to replace ~6,350 water meters; no action taken

Amerisco representative Chad Knowles told Levelland officials that the company recommends a full, citywide replacement of aging water meters with an automatic metering infrastructure system that would add radios, a customer portal and GPS‑tracked meter locations, and address EPA/TCEQ pipe-material surveys required for lead and copper sampling.

Knowles, the Amerisco presenter, said the firm tested a sample of old meters under American Waterworks Association procedures and found low‑flow accuracy near 80% and an overall sample average of about 85.4% after removing meters that read zero. "Total implementation cost is roughly $5,600,000 to change all of this out," Knowles said, and Amerisco projects an additional $240,000 a year in recovered revenue plus about $124,000 a year in operational savings, for roughly $366,000 in year‑one benefits under the company’s model.

Why it matters: Amerisco told council members the city is losing measurable revenue where older mechanical meters undercount low flows, and that replacing meters and adding remote reads would both improve billing accuracy and give customers hourly usage data via an online portal.

Project scope and features: The firm described replacing about 6,350 meters (all sizes), installing radios and repeaters with roughly seven base‑station locations (tanks and well sites), and replacing or repairing damaged meter boxes and lids so radios will function. Knowles said Amerisco would act as construction manager, provide a full quality‑control program (including before‑and‑after photos and GPS coordinates for each install), and perform data integration with the city’s billing system.

Accuracy guarantee and testing: Amerisco said it would guarantee meters at 98.5% accuracy over the project term and retest a random sample in year three; "If they don't test at 98 and a half percent, then I gotta start replacing meters or write you a check for that revenue projection," Knowles said. The company estimated it would pull another ~68 meters for third‑party testing in year three to verify the guarantee.

Costs and ongoing fees: Knowles outlined one‑time construction and integration charges and recurring software costs. He identified a roughly $5.6 million turnkey implementation cost, an estimated ongoing meter‑manufacturer software fee of about $11,600 per year for the current meter count, and a Tyler Technologies/Encode customer‑portal integration and ongoing fee the presenter estimated at roughly $25,000 per year. Knowles warned these ongoing fees typically rise with more meters and annual inflation assumptions.

Regulatory and health checks: Staff (Speaker 8) noted that the Texas Commission on Environmental Quality requires lead‑and‑copper sampling on a three‑year cycle and that the city samples from 60 sites (30 primary and alternates). Speaker 8 said the city’s samples have remained below TCEQ maximum contaminant levels to date.

Operational impacts and risks: The presenter and staff discussed likely disruptions during construction — broken curb stops, occasional service interruptions, confined‑space issues in large pits, and the need for on‑site construction management and staff training. Knowles said Amerisco typically covers two feet on each side of the meter coupling for repairs during installations but is not responsible for customer‑side plumbing on citizens’ property. He acknowledged the project will touch every resident and business and that calls and repair work are expected during rollout.

Timeline and next steps: Amerisco estimated three months lead time for materials, one month to establish network infrastructure, and a roughly six‑month window of active construction (working in warmer months) to install the meters, assuming materials are available and weather permits. Council members did not vote; the presenter and council agreed no action would be taken that night, and the council will review the information and consider the proposal further before October.

What council members and the public should watch for next: a detailed contract or scope that specifies which curb‑side repairs the contractor covers, the precise integration costs billed by Tyler Technologies, the year‑three testing protocol and remedies if accuracy targets are missed, and outreach plans to inform residents about potential service interruptions during installs.

The special meeting ended without a vote; the body adjourned and said it will reconvene at 6 p.m. for its next scheduled session.