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San Diego Water District approves design‑build contract to begin advanced metering infrastructure program
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Summary
The board authorized the general manager to execute a design‑build agreement with Ferguson Enterprises for Phase 1 design of an AMI program (Phase 1 ≈ $850,953; design work and replacement of ~1,178 meters). Phase 2 (construction/GMP) will return to the board.
The San Diego Water District Board unanimously authorized the general manager to execute a design‑build agreement with Ferguson Enterprises to begin a phased advanced metering infrastructure (AMI) program, approving a Phase 1 design contract of roughly $850,953.
Principal Engineer Alex described the district’s existing metering baseline — roughly 14,350 meters serving about 40,000 customers, with approximately 10,600 meters (75%) installed before 2010 and about 3,800 AMR meters currently non‑transmitting. Alex told the board Phase 1 is primarily design and software integration with the district’s billing system, and that the Phase 1 scope includes replacing about 1,178 legacy AMR meters and designing the fixed AMI network.
Alex said the district used a progressive design‑build procurement approach (two‑step RFQ/RFP, best‑value selection) and that a selection panel recommended Ferguson because of coastal‑zone experience and a dual AMR/AMI capability they previously used in Oceanside. Ferguson’s approach, Alex said, includes solar‑powered gateways (no new structures or antennas) and an estimated 19 gateways if the system were fully implemented; final gateway counts will be confirmed during Phase 1 design.
Alex also updated the board on a Bureau of Reclamation WaterSMART grant application (50% up to $1,000,000) that could offset Phase 2 implementation; he said announcements had been delayed due to federal grant pauses and a government shutdown.
Board members asked whether a formal cost‑benefit analysis had been completed (staff said no) and raised concerns about radio/backhaul longevity and the risk of carrier changes over time. One board member urged a pilot to test gateway/backhaul performance and battery life before wider implementation: “I think you probably need to get 1 gateway in there,” that member said. Alex confirmed Phase 1 is design only and that Phase 2 would return with a guaranteed maximum price for construction and implementation.
A board member moved to authorize the agreement with Ferguson, adopt a budget amendment and adopt a sole‑source resolution for Neptune Technology Group meters to ensure compatibility; the motion was seconded and carried unanimously. Staff will return with Phase 2 implementation plans, final gateway counts and any grant award details.

