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Council rejects $67 million AMI smart‑meter plan after lengthy debate over costs and customer impacts
Summary
Performance Services presented a citywide advanced metering infrastructure (AMI) proposal that included a $4.1 million annual revenue guarantee and projected commercial collection gains; council voted down the implementation agreement 4–1 after residents and members pressed for more independent validation and clarity on resident impacts.
Performance Services on Tuesday outlined a proposal to replace North Miami’s water meters with an advanced metering infrastructure (AMI) system and to finance related upgrades through a long-term performance contract. The company told the council the project would install commercial meters first, begin residential installations in 2027 and would be financed so the city’s first lease payment is due in January 2029.
The consultant, Arthur Soory of Performance Services, said the investment-grade audit estimates about $43.8 million in improvements and a total financing package of about $67 million. The company said it would guarantee minimum annual debt service of roughly $4.1 million and projected additional commercial revenues if collection rates rise from about 40% today to 60% after the system is active. “We guarantee it every year — there won't be a year that comes that you won't have revenues come in to make the $4,100,000 payment,” Soory told the council.
Council and residents pressed the presenter and staff for independent verification of the revenue projections, details about financing terms and the program’s effect on residential customers. Several speakers said meter inaccuracies and undercollection already cause unfair bill disparities and urged caution before locking the city into long-term debt. “If we never reach 4.1, who’s gonna pay it?” asked one councilmember; Performance Services replied that its contract and Florida statute create the payment obligation on the contractor.
Residents and councilmembers also flagged community benefits and mitigation measures: the company proposed $1.5 million toward stadium bleachers, job fairs and outreach to teach residents how to use billing apps. Performance Services said residential rates were not included in its projections and emphasized a separate “Helping Hands” program to assist low-income customers once residential meters are active.
After more than two hours of public comment and council questioning on the program’s assumptions, financing and possible effects on the city’s ability to fund a separate water‑treatment plant, the council voted down the implementation item 4–1. Mayor Alex de Soumy cast the dissenting vote. Councilmembers who opposed the item cited insufficient independent validation of revenue assumptions and concern that the city could be left responsible if targets were not met.
Next steps: staff said they will bring back additional analysis and, if requested by the council, outside financial review and clearer financing terms before any future vote on a performance‑guaranteed AMI package.
