Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Ami Project topic
No spam. Unsubscribe anytime.
Council approves AMI water‑meter replacement contract; financing to be done with certificates of obligation
Summary
Council approved a contract to replace more than 13,000 mechanical water meters with cellular AMI meters and endpoints. Staff said the $11.9M project will be financed with certificates of obligation over 16 years, funded from projected utility cash‑flow improvements and not by an immediate rate increase.
The City Council unanimously approved a contract to modernize Duncanville’s water‑meter system, a project staff said will convert more than 13,000 aging mechanical meters to Badger ultrasonic meters with cellular AMI endpoints to increase revenue accuracy and reduce operational costs.
Public Works Director Matt Bryant described the project as a turnkey replacement that includes more than 13,000 meter replacements, over 8,000 new meter boxes with composite lids and replacement of approximately 5,200 damaged lids and incompatible cast‑iron or concrete components. "The project scope is modernized infrastructure by converting existing water meters to solid state meters, to increase water revenue and reduce operational costs," Bryant said.
Staff proposed funding the work with Certificates of Obligation (COs) with a 16‑year repayment term. Interim City Manager Richard Jackson and Finance staff said the debt service would be paid from utility fund cash flows generated by improved meter accuracy, not by immediate water‑rate increases. Council heard staff estimates that current annual revenue losses from meter inaccuracies are approximately $1 million — a figure staff said the new meters will help recover over time.
Staff noted prior grant applications to the Texas Water Development Board were unsuccessful and described an owner‑directed contingency allowance within the contract (staff cited an $11.9M project figure and a $500,000 owner allowance). The council approved the contract and staff said a Notice of Intent to issue the COs will be placed on the March 3 council docket; sale of the COs follows statutory notice timelines.
Councilmembers praised the long‑running effort to modernize meters and emphasized customer benefits from a new customer platform that will allow residents to monitor usage and receive conservation alerts. Staff said tutorials and customer outreach would be provided when the system goes live.
Actions and next steps: council approved the PSI contract (motion by Councilman McBurnett, seconded by Mayor Pro Tem Gooden) and staff will return on March 3 with a Notice of Intent to issue Certificates of Obligation to fund the project and related closing steps.
