Title
FlexNet Fixed Meter Reading - Proposal
History
Between 1996 and 2008, the Utility Division conducted a water meter conversion program changing from Badger meters to the Sensus meter system. Along with complete meter replacement, meter reading technology was changed to a radio read format utilizing an MXU transmitter installed with each meter. Initially using handheld devices, meter reads were collected by walking near each metered property. As technology advanced and provided for improved meter reading efficiency, a vehicle mounted unit, a VXU, was purchased in 2002 to allow for drive-by meter reading.
The existing MXU transmitters are battery powered and are reaching the end of their life span. Battery failure rates are rapidly increasing; more than 2,000 batteries have already failed and more battery failures are found each billing period. Taking advantage of improved technology, as we respond to failures, we are installing new Smart Point transmitters. Staff has purchased a second Trimble Programmer Model 900LC with Command Link. This equipment is used to install SmartPoint transmitters and now allows Public Works to engage a second crew that will further accelerate the replacement and conversion effort.
Sensus has perfected a new SmartPoint transmitter and a fixed network meter reading system called FlexNet. SmartPoint transmitters come with a full twenty-year warranty, including the battery. The SmartPoint transmitters are capable of storing hourly reads for seven to ten days, as well as detecting continuous flow over a specified period of time and potentially identifying leak situations. Utility Division staff began installing SmartPoint transmitters in 2012. To date, more than 1,500 SmartPoint transmitters have been installed. There are currently just over 500 MXU replacement service orders pending; each of these MXUs will be replaced with a SmartPoint transmitter. In addition, only SmartPoint transmitters will be used for all new water meter and/or service installations.
Currently, meters are read utilizing the vehicle mounted VXU; one meter reader operates the vehicle, the other operates the VXU. Because SmartPoint transmitters are installed as MXUs are failing, the installations are not limited to one specific route or area of the Village and there may be one SmartPoint transmitter installed on a block and all other homes on that block still have an MXU installed. Because the current model VXU cannot read the SmartPoint transmitter, the meter readers utilize a handheld device to read the SmartPoint transmitters. The handheld device technology is not as advanced and there are many read errors that have to be corrected each billing period in order to ensure that the SmartPoint reads are recorded correctly in the Village's billing system. As more and more SmartPoints are installed, the process of reading these transmitters with a handheld device will become more cumbersome and will have a significant effect on the meter reading/billing process.
Fixed network meter reading, i.e. the FlexNet System, allows for the reading of all SmartPoint enabled meters via computer using antennas installed on water towers. In conjunction with the technology provided in SmartPoint transmitters, the FlexNet System would enable the meter reading/billing process to be as efficient as possible and eventually eliminate the need to drive each route each billing period, saving on fuel costs and wear and tear on the Village's vehicle. The FlexNet technology provides two-way communication between the Village and individual meters, providing staff in Public Works and Finance the ability to read and monitor individual meters without having to drive to the meter site, as individual meter reads can be obtained by directly and remotely polling a meter. The attached proposal itemizes the cost for the infrastructure, equipment, software, support and training required to fully implement the FlexNet system. HD Supply of Mokena, Illinois is the regional authorized Sensus representative and has provided a proposal for the installation of the FlexNet system.
On May 5, 2014, this item was reviewed and approved by the Public Works Committee and referred to the Board for approval.
OPTIONS
At a previous Committee meeting, it was requested that IT staff address the possibility of using the Village's virtualized Microsoft Hyper-V environment to house the new FlexNet System. After discussions with HD Waterworks and Sensus, it was discovered that the VMWare based virtualization software and associated components proposed by the vendor would not be supported by Sensus in the Village’s current Microsoft Hyper-V environment. Additionally, the Village engaged their expert virtualization consultant, SWC of Oak Brook, IL to take a second look at the FlexNet System to determine if there was any way to effectively use the Village’s virtualization environment to accommodate the FlexNet System. SWC would not recommend, or engage to assist, the Village in implementing this solution without the required support of the vendor.
Therefore, the following two (2) options are available to the Village. Option A provides various scenarios by which the Village can implement the Sensus/FlexNet system. Option B is a replacement of the current model VXU with a model that is able to read both MXU and SmartPoint transmitters and does not include implementation of the Sensus FlexNet System.
OPTION A - FlexNet Implementation
Required Infrastructure
In order to take full advantage of the SmartPoint transmitter and FlexNet technology, Sensus conducted an analysis and determined that two antennas would be required, one on Tower #1 (179th & Wolf Road) and one on Tower #4 (88th Avenue & Golfview Drive). One additional repeater may also be required, but would only be installed after an evaluation of the system’s meter reading effectiveness. If necessary, additional repeaters would be installed at Sensus’ expense. The cost for the two (2) Base Stations and the one (1) Repeater is $101,375.
Equipment and Software Scenarios
The proposed FlexNet Logic and RNI interface system consists of three separate virtualized servers that are mirrored to two physical servers. One virtualized server referred to as “Logic”, interfaces directly to the customers Utility Billing system; in the Village’s case, Innoprise CIS. This server consists of a Linux Red Hat operating system running an Oracle 11G database instance. All of this is running as one virtual machine in a VMWare ESXi environment on one physical box. The other two virtualized servers referenced as “Regional Network Interfaces” or “RNI”, interface directly with the Base Stations and maintain the meter reads from the new AMI meters. This environment runs the Microsoft 2008 operating system and SQL Server 2008, as well as a second Linux Red Hat OS instance that provides various application support to the database. Sensus highly recommends this two physical server environment, as the servers will be redundant and provide back-up to one another.
FlexNet Equipment and Software Implementation Scenarios:
#1. HD Waterworks/Sensus provides a two (2) physical server solution that include 3 logical servers using VMWare virtualization software, as stated above.
#2. The Village utilizes its current Microsoft Hyper-V platform, eliminating the need to purchase two physical servers and virtualization software. This is not an option as Sensus would not support the FlexNet System running on the Village's current virtualized platform. As a result, the Village would need to procure the hardware and software for the server environment as specified by Sensus.
#3. Sensus would host, run and operate the complete FlexNet System with the Village incurring annual hosting fees and an implementation fee. No physical servers would be purchased.
Equipment and Software Implementation Scenario #1
HD Waterworks/Sensus configures and provides two Dell Servers; configures and licenses VMWare and database software for Village; installs operating systems, and virtualizes the two machines. This scenario yields a system fully supported by the vendor. The line item cost of this configuration is $65,950.
Equipment and Software Implementation Scenario #2
The Village could choose to purchase directly the equipment and software needed to run and operate the FlexNet System, as opposed to purchasing as a package from Sensus. The Village requested HD Waterworks/Sensus provide a scope of work and provisions list for the equipment and software needed to run and operate the FlexNet System. The estimated cost of equipment and software to run and operate the FlexNet System is $26,878. The cost of the software that Sensus supports, VMWare, and the Meter Data Management (MDM) Logic Software, is $56,950, for a line item implementation cost of $83,828.
Equipment and Software Implementation Scenario #3
Another scenario exists where Sensus would host, run and operate the Village’s FlexNet system. The Village would incur annual hosting fees, and a set-up and configuration fee for this turn-key option. Estimated cost of implementation for these line items is $145,145.
Option A in which the virtualized server environment is pre-configured and fully supported by Sensus and can be implemented at a lower cost. Option A, Scenario #2 has a higher cost of implementation as does Scenario #3.
Software Support and Training
All three FlexNet scenarios would provide for a two day on-site training for $6,350. Software support for scenarios #1 and #2 will be for five (5) years for a lump sum cost of $41,000.
OPTION B - VXU Upgrade
An alternative to the implementation of the FlexNet technology would be the replacement of the current model VXU with a model that is able to read both MXU and SmartPoint transmitters. While this option would require less of a cash outlay in the short term, it does not provide us with the technology to take full advantage of the functionality provided by the SmartPoint transmitters. The cost of the upgraded VXU, Model #4600 VGB, is $28,500 [see attached quote]. Option B is a viable option that will advance the replacement of failed transmitters, but does not allow the Village to take advantage of the functionality available with the Smartpoint technology.
Financial Impact
A Total Cost of Ownership (TCO) Analysis is attached to this agenda item for review and discussion.
There is currently $195,150 budgeted for the purchase of the FlexNet System and $65,000 budgeted for the purchase of SmartPoint transmitters. To implement option A, a budget adjustment of $19,525 is required to cover the full cost of implementing the FlexNet System as reflected on the attached TCO Analysis. An additional budget adjustment in the amount of $120,000 would also be required as the current number of failed MXUs exceeds the number of SmartPoint transmitters that available funds are able to purchase. Staff will need to further evaluate and present an MXU-to-SmartPoint conversion plan at a future Committee meeting.
If Option B is chosen, staff will utilize funds budgeted for the FlexNet System to purchase additional SmartPoint transmitters and will request the funds required to purchase the FlexNet System in a future year. No budget adjustment would be necessary.
Recommended Action/Motion
I move to approve to waive the bid process;
and
I move to approve to select Option A, Scenario #1 and accept the proposal from HD Supply Waterworks, Ltd. of Mokena, Illinois for the installation of the FlexNet Fixed Meter Reading System for a total cost not to exceed $214,675 and authorize a budget adjustment in the amount of $19,525 for the implementation of the FlexNet System and a budget adjustment in the amount of $120,000 for the purchase of additional SmartPoint transmitters.