SR 01-23-2024 5J
City Council
Report
City Council Meeting: January 23, 2024
Agenda Item: 5.J
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources
Subject: Adoption of a Resolution for Advanced Metering Infrastructure (AMI) Water
Meter Opt-Out Fee
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of categorical exemptions pursuant to Section 15273 and Section
15302 of the California Environmental Quality Act (CEQA) Guidelines.
2. Adopt the attached Advanced Metering Infrastructure (AMI) Opt-Out Fee
Resolution to establish the one-time AMI opt-out fee and routine water meter
reading fee per billing cycle for customers that opt-out.
Summary
The City of Santa Monica’s Water Resources Division within the Public Works
Department delivers high-quality drinking water to approximately 18,400 metered water
connections in the city. In August 2022, the City Council authorized staff to enter into an
agreement with Badger, Inc. to upgrade the City’s water meters to an Advanced
Metering Infrastructure (AMI) system and deployment of the AMI system began summer
of 2023. The AMI system, or advanced meters, provide real-time information on water
usage and allow for improved leak detection, which would significantly enhance the
City’s water conservation efforts, and provide customers with the ability to track their
water use on a daily basis. Staff has developed an AMI Opt-Out Policy to provide
customers with the opportunity to opt-out of using the AMI signal transmission for their
water meter. Staff recommends the adoption of the AMI Opt-Out Fee Resolution for
both the one-time opt-out fee and the routine water meter reading fee for each billing
cycle.
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Discussion
The City’s current water meters are read manually on a bi-monthly schedule to bill each
customer for their water use. For example, a customer’s June water bill is for water that
is consumed during the prior two months (April and May). The AMI Project was
approved in the City’s Capital Improvement Program (CIP) Budget and is funded
through the 2021 Water Revenue Bonds. The AMI project includes the replacement of
aging non-AMI compatible meters, meter box lids, installation of cellular data
transmitters (encoders) on every meter, data migration capability to the City’s billing
software, and a customer water monitoring portal. Benefits of the AMI system include:
real-time water usage information to alert customers of water leaks (e.g. pipe breaks,
toilet leaks, and broken valves), prevention of possible water damage to properties from
leaks, enhanced customer service, and reduction of greenhouse gas emissions through
reduced vehicle miles and fuel consumption from manually reading the water meters.
The AMI system is a cloud-based system that transmits near real-time water use data
from each advanced meter via cellular network. The advanced meter is capable of
providing water usage information at 15-minute intervals and transmitted up to four times
per day to customer usage portals for each customer to view their water use in real-time
and get leak alert notifications. Each customer would no longer have to wait until the end
of the bi-monthly billing cycle to see their water use information on their utility bill. A small
percentage of customers, typically around 1-6% of the customer base based on prior
AMI projects completed by other municipalities, prefers the traditional manually read
water meters over the technology and efficiency improvements of the AMI system,
primarily due to concerns over radio frequency transmissions and data security.
As the advanced meters transmit information wirelessly over a cellular network, some
customers have expressed concerns regarding possible health effects of wireless
signals. These concerns have been brought to the attention of many California state
legislators in the past who have sought independent, unbiased, expert advice on human
exposure to wireless signals and the efficacy of the Federal Communications
Commission (FCC) safety standards and limits for these signals from the California
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Council of Science and Technology. Key findings of the California Council of Science
and Technology on the advanced meters include:
• Wireless advanced meters, when installed and maintained properly, result in
much lower levels of exposure to radio frequency than common household
electronic devices, notably cell phones and microwave ovens. A majority of the
city’s water meters are located outside of the residential household near the
street, in sidewalks, or in the alleyways.
• The current FCC standard provides an adequate factor of safety against known
thermally-induced health impacts of existing common household electronic
devices and advanced meters.
With regards to data security, a small number of customers have expressed concerns
over transmitting data wirelessly from the place of their residence to the customer portal
as their reason for wanting to opt-out of the AMI system. It should be noted that
personal information is not transmitted by the advanced meters and only water
consumption information is transmitted. Only authorized City staff and the account
holder would be able to access the water usage data.
The proposed AMI Opt-Out Policy (Attachment B) and AMI Opt-Out Application form
(Attachment C) is included for reference. The customer would be responsible for paying
the one-time opt-out fee ($107) for billing and water resources staff to setup the water
meter and account for manual meter reads, and routine meter reading fee ($26 per
billing cycle) to cover the cost associated with manually reading their water meter for
billing purposes. The proposed AMI opt-out fee and routine meter reading fee are to
cover staff time required to perform the work. The fees will be incorporated into the
City’s Master Fee Resolution and shall be adjusted each year with all other City fees.
Environmental Review
The adoption of the AMI Opt-Out Fee Resolution is exempt from CEQA pursuant to
Section 15273 of the CEQA Guidelines, which states that CEQA does not apply to the
establishment, modification, structuring, restructuring, or approval of rates, tolls, fares,
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and other charges by public agencies which the public agency finds are for the purpose
of maintaining operating expenses or for capital projects. The replacement of water
meters is categorically exempt pursuant to Section 15302 (Replacement and
Reconstruction) of the CEQA Guidelines. Section 15302 exempts Class 2 projects
which “consists of replacement or reconstruction of existing structures and facilities
where the new structure will be located on the same site as the structure replaced and
will have substantially the same purpose and capacity as the structure replaced”.
Past Council Actions
Meeting Date Description
8/23/2022 (Attachment A) Bid award for Advanced Metering Infrastructure (AMI)
meter replacement
Financial Impacts and Budget Actions
There are no immediate financial impacts or budget actions necessary as a result of the
recommended actions. The proposed AMI opt-out fee and routine meter reading fee are
to cover staff time required to perform the work. Staff would return to Council if specific
budget actions are required in the future. The fees will be incorporated into the City’s
Master Fee Resolution and shall be adjusted each year with all other City fees.
Prepared By: Sunny Wang, Water Resources Manager
Approved
Forwarded to Council
Attachments:
A. Bid Award for Advanced Metering Infrastructure (AMI) Meter Replacement (Web
Link)
B. AMI Opt-Out Policy - DRAFT_121123
C. AMI Opt-Out Application - DRAFT_121323
D. AMI Opt-Out Fee Resolution_121123
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Advanced Metering Infrastructure Opt-Out Policy
The City of Santa Monica Water Resources Division offers residential customers the option to opt-out of
the City’s Advanced Metering Infrastructure (AMI) program if they prefer to have a traditional water
meter, without AMI transmission, at their residence. Customers who opt-out will not have an AMI
transmitter installed on their water meter, and their water usage will be manually read by our staff on a
regular basis for billing purposes.
By opting out of the AMI program residents will not be able to take advantage on the benefits of the
program. AMI water meters provide residents and customers real-time monitoring of their water usage
to track their consumption patterns, identify potential areas for water savings, and alert them of water
leaks. Access to this detailed data allows residents to make informed decisions about their water usage,
leading to reduced water usage and lower water bills. AMI participants can also select leak detection
notifications when they register for the AMI application (app) to track their water usage. Without AMI
water meters, water leaks may go unnoticed for multiple billing cycles or months. This timely detection
helps residents take immediate action to repair leaks to prevent water loss, avoid highwater bills, and
avoid damage to property. By opting out of the AMI program you will no longer be eligible to participate
in the city’s water leak adjustment program.
Eligibility:
Customers who wish to opt-out of our AMI program must meet the following eligibility criteria:
• The customer must be the account holder or an authorized representative of the account holder.
• The customer must have an active account with the City.
Opt-Out Process:
Customers who wish to opt-out of our AMI program must follow these steps:
1. Contact our Billing department by phone (310-458-8224 extension 1) or email
(billing.collections@santamonica.gov) to request an AMI Opt-Out form.
2. Complete and submit the opt-out form to our Billing department. The form must be signed by the
account holder or an authorized representative.
3. Pay the one-time set up fee per meter for opting out of our AMI program.
4. Agree to a billing cycle fee per meter to manually read the meter. The current billing cycle is bi-
monthly but is subject to change to monthly at the discretion of the City.
Customers who opted out of our AMI program may also request to opt back in at any time.
Important Note:
Customers who opt-out of our AMI program should be aware that this shall result in higher fees for
manual meter reading, and they may not have access to certain features and benefits of our AMI
program, such as real-time water usage data and leak detection alerts. Additionally, customers who
opt-out may be subject to different billing cycles and will not be eligible for the City’s leak adjustment
program.
Contact Us:
If you have any questions about our AMI opt-out policy, please email
billing.collections@santamonica.gov or call 310-458-8224 extension 1.
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Packet Pg. 198 Attachment: AMI Opt-Out Policy - DRAFT_121123 [Revision 2] (5875 : Advanced Metering Infrastructure (AMI) Water Meter Opt-Out Fee)
Advanced Metering Infrastructure (AMI)
Opt-Out Application Form
The City of Santa Monica strongly encourages all residents to participate in the AMI program.
The benefits of the program align with the City’s goals of water conservation and sustainability.
AMI meters provide residents the ability to monitor their real time water usage and take
ownership of their water usage. In addition, residents have the ability to create customizable
email notifications in the event a leak is detected on their property which may not normally be
detected for an extended period of time. By opting out of the AMI program you will not have
access to the benefits that the program provides. If you choose not to participate you do have
the ability to opt-in to the program any time in the future.
APPLICANT INFORMATION
Name:
Account No.:
Service Address:
Mailing Address:
Phone #: Email:
SIGNATURE AND ACCEPTANCE OF TERMS AND CONDITIONS:
I certify that I am the property owner or legally authorized representative and that I have
requested the City of Santa Monica to not install an AMI cellular device at my service address. I
agree to the AMI Opt-Out Policy and Application and associated Terms and Conditions.
I understand that electing to opt-out will result in a one-time set up fee per meter and
reoccurring manual meter reading fees per billing cycle. The City’s current billing cycle is bi-
monthly, but it is subject to change to monthly at the discretion of the City. The assessed fees will
cover the expenses of manual meter reading and additional operational activities related to the
opt-out request. The AMI opt-out fees will be applied to the regular billing statement for the
service address listed above and will be subject to the same collection policies as all other water
service charges. I understand and accept that these fees may increase in the future.
Signature of Property Owner / Authorized Representative:
Date:
Email:
Billing.collections@santamonica.gov
Mail:
City of Santa Monica
Billings & Collections Office
1685 Main Street – City Hall East
Santa Monica, CA 90401
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Packet Pg. 199 Attachment: AMI Opt-Out Application - DRAFT_121323 [Revision 2] (5875 : Advanced Metering Infrastructure (AMI) Water Meter Opt-Out Fee)
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Packet Pg. 200 Attachment: AMI Opt-Out Application - DRAFT_121323 [Revision 2] (5875 : Advanced Metering Infrastructure (AMI) Water Meter Opt-Out Fee)
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City Council Meeting January 23, 2024 Santa Monica, California
RESOLUTION NUMBER ____________(CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA TO ADOPT THE ADVANCED METERING
INFRASTRUCTURE OPT-OUT FEES
WHEREAS, on August 23, 2022, the City Council authorized staff to
implement the Advanced Metering Infrastructure (AMI), or advanced meters,
project for all water customers to enhance water use efficiency and water
conservation efforts.
WHEREAS, the AMI system provides each customer with real time
information on water usage that could alert the customer of water leaks, help
customers make informed decisions on their water consumption, and enhance
customer service with real time data available to the customer and City staff.
WHEREAS, the AMI system will replace the City’s traditional water meters
that are read manually on a bi-monthly cycle. The AMI system is an integrated
system of advanced meters, communication network, and data management
systems. Each customer will no longer have to wait until the end of the bi-monthly
billing cycle to see their water use information on their utility bill. The advanced
meter is capable of providing water usage information at 15-minute intervals and
transmitted up to four times per day, via a cellular network, to the customer usage
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Packet Pg. 201 Attachment: AMI Opt-Out Fee Resolution_121123 [Revision 3] (5875 : Advanced Metering Infrastructure (AMI) Water Meter Opt-Out Fee)
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portal. The AMI system only transmits water consumption information from the
advanced meter to the data management system.
WHEREAS, the City is providing each customer with the option to opt-out
of the AMI system to avoid the use of AMI signal transmission for their water meter
via a cellular network. By opting out of the AMI program, the customer’s water
meter will need to be read manually for each billing period. The customer that opt-
out of the AMI program shall be responsible for paying the one-time AMI opt-out
fee for initial set-up of manual read and routine manual meter reading fee per billing
cycle.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. The following One-Time AMI Opt-Out Fee and Routine Manual
Meter Reading Fee shall be effective upon adoption of this Resolution:
One-Time AMI Opt-Out Fee of $107
Routine Manual Meter Reading Fee of $26 per billing cycle
SECTION 2. The City Clerk shall certify to the adoption of this Resolution,
and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
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Packet Pg. 202 Attachment: AMI Opt-Out Fee Resolution_121123 [Revision 3] (5875 : Advanced Metering Infrastructure (AMI) Water Meter Opt-Out Fee)