Tipp City faced with $2.7M cost for new water, electric metering system

City officials cite multiple problems with existing AMI system, which was installed 13 years ago

TIPP CITY — Tipp City Council will be asked to spend about $2.7 million to buy a new advanced metering infrastructure, or AMI, for city water and electric systems, as estimated costs have increased during the past year.

Council last year heard about the need to replace the city’s first AMI system, which was installed in 2010. The city needs a new system in operation “yesterday,” according to City Manager Tim Eggleston said.

Advanced metering infrastructure systems allow for remote collection of customers’ water or electric usage data, largely eliminating the previous need for a manual meter reading process.

A new system has been under exploration because of several issues with the existing system, including unresponsiveness of some equipment, out-of-date software, inability of current system provider Honeywell to supply new meters, water meter modules nearing end of life and concerns about communication/service from Honeywell since it acquired the Elster system originally purchased by the city. The acquisition was in 2015.

Concerns about customer service have been shared with council for more than a year by city administrators including Eggleston, Finance Director John Green and Eric Mack, municipal services director.

In passing months, costs have grown to an estimated $2.7 million, Mack told council on Jan. 17.

“We still think this is the best option for us,” he said.

The initial $2 million cost estimate shared with council last year was a rough estimate that was based on number of meters and the cost of meters at that time, Eggleston said, adding, “Pretty much everything has gone up in price.”

City staff explored vendor options, eventually recommending American Municipal Power, or AMP, a nonprofit that is owned by member communities including Tipp City. The AMP system has 110,000 meters in its system so far. Tipp City’s system has less than 5,000.

AMP would handle the system server and monitor the system 24/7.

The staff thinks AMP would be the best choice because the city is a member of the AMP program, and they don’t anticipate its AMI system would be acquired by another company. Two other systems were looked at but not recommended for reasons including cost and concern about acquisitions.

AMP also is working on a grant through the Department of Energy to help fund AMI deployment costs for AMP members joining their AMI project, Mack said. That grant could save the city approximately $500,000, he said.

Implementation of a new system, no matter what the source, could take a year or two depending on the meter stock available, said Green.

To help cover the added cost of the project, city staff suggested postponing a proposed new utility services building. The projects are proposed in the utilities’ enterprise funds of the city.

Contact this contributing writer at nancykburr@aol.com

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