2/27/2011
By CHRIS HUNTER | Salina Journal
Salina city commissioners could decide Monday whether increasing efficiency of the city's water meters by 3 to 5 percent is worth the $14.65 million it will take to replace the city's 20,465 water meters.

"It sure sounds like a lot," said Rod Franz, city finance director. "But, a lot of our meters are 25 to 30 years old and will continue to deteriorate. Our meters are only averaging 95 percent efficient."

Replacing the water meters is expensive, but so is losing the revenue for between 75 million and 125 million of the approximately 2.5 billion gallons of water that goes through city pipes each year due to the inaccurate meters, according to Franz.

Franz said replacement of the meters over an 18-month period will generate an estimated $30 million over 15 years in increased fees because of more accurate meters.

"The cost will cover itself and then some," Franz said.

Martha Tasker, Salina's director of utilities, said the meters will be installed by Siemens Industry, if approved by the city.

At the recommendation of the city's bond counsel, the meter replacement would be combined with $20 million in pipe replacement projects the city started in January and $5.2 million for bond costs for a total cost of $39.85 million.

If approved, the replacement of water meters could start in April.

Replacing meters

Franz said water meters generally have a life of 15 years, half as long as the city's meters have lasted.

"They need replacing," Franz said. "Some of the older meters are still running well, but replacing them with 98.5 percent accurate, or better, meters will make a very big difference."

For nearly 7,000 Salina households, the replacement of the water meters will mean meeting with Siemens contractors to move meters located in houses to public right-of-way.

"If you have a meter inside, they will be putting in a pipe and digging a meter pit in the right-of-way, most likely between the sidewalk and the curb of the street," Tasker said. "If someone doesn't have a sidewalk, it will be in the yard near the curb."

Tasker said the process will be explained in a newsletter set to be included in city water bills in April, if the purchase is approved. Then, Siemens will start scheduling appointments with residents. The appointments will take about 30 minutes and will require water to be shut off.

In January, Tasker told city commissioners the new meters will also eliminate the need for 2.5 city employee positions to read meters because the meters will be read by radio frequency.

Pipe work continues

The city is also replacing 40 miles of water pipes for $20 million over the next five years. The city approved the project and bonds in 2010.

Tasker said the first $1 million phase of the project is nearing completion and the second phase will start soon.

Franz said a study by the city found the pipes were in need of replacement.

"We found the flow was getting restricted by mineral buildup," Franz said. "We also had some water-quality issues with discoloration. The water is not unsafe (for consumption)."

Bond reserves

The projects themselves total $34.65 million. Franz said the remaining $5.2 million in the proposed cost is required to bond the projects.

For the $14.65 million water meter project, $2.2 million is required, on top of the $3 million required for replacement of the water pipes.

"It is set aside and held in the event you are unable to make payments on the bond," Franz said. "Typically, the amount in the account is used to make the last bond payment."

Even though the projected cost is expected to be around $39.85 million, Tasker said favorable bids could make it lower.

"Our (first) piping bid came in at $800,000 instead of $1 million," Tasker said.

nReporter Chris Hunter can be reached at 822-1422 or by e-mail at chunter@salina.com.

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