Columbia Work Session on Advanced Metering Infrastructure (AMI)

Date: June 9, 2026
Time: 6:00 PM – 7:30 PM (approx.)
Location: Columbia City Council Work Session

This work session was convened to discuss the proposed Advanced Metering Infrastructure (AMI) project for both water and electric utilities. City staff and consultants from Amoresco presented the project scope, costs, benefits, and implementation timeline. Council members asked questions on financing, customer impact, data privacy, and public outreach. The council expressed general support and requested a financing report before a contract vote in September 2026.

Discussion Items

• Project Overview (Aaron Keys, Utilities Director):

  • AMI will enable automatic outage detection, flexible billing dates, remote turn-on/off, and real-time leak alerts.
  • Currently, the city relies on manual meter reads and customer calls for outages.
  • Staff has been working on the project for two years; the request is for council confirmation to proceed.

• Technical Presentation (Eric Wurtz, Engineering Supervisor; Chad Nobles, Amoresco):

  • A field survey was conducted: ~70 residential meters tested, hundreds surveyed.
  • Current meters are past useful life; many are failing or have inaccurate reads (average residential water meter accuracy ~96%; low-flow accuracy ~87%).
  • Scope:
    • Electric: replace all ~53,900 electric meters.
    • Water: replace ~33,000 meters, retrofit ~20,000 newer meters with radio modules.
  • New meters have 20-year warranties (water) and solid-state technology with no moving parts.
  • AMI network uses a mesh system with ~50 data collectors on light poles and existing cellular towers.
  • Data is transmitted 4 times per day; packet size is smaller than a text message.
  • A meter data management (MDM) system from Harris (current billing software vendor) will be implemented to handle the increased data volume.

• Customer and Operational Benefits:

  • Citizens will have a customer portal to view usage, set leak alerts, and receive notifications.
  • Estimated 30-40% reduction in customer service calls.
  • Operational savings: reduced truck rolls for meter reading, turn-ons/offs, and re-reads.
  • Accurate billing (no estimated reads) and potential for future time-of-use or real-time rates.

• Project Costs and Financing:

  • Total implementation cost: $42.1 million (Amoresco contract + Harris integration fees).
  • Ongoing annual costs: ~$560,000 (AMI network: $170,000; MDM: $330,000; portal integration: $62,000).
  • Construction timeline: ~3 years, with construction starting March 2027.
  • Financing options: bonds (10-year, 3.5% interest) or bank loan (3.75%).
  • Staff presented a pro forma showing positive cash flow from year 1 assuming 4% interest over 15 years, due to revenue gains from meter accuracy and operational savings.
  • Revenue gains: $597,000/year from water/sewer accuracy improvement; ~$1.2 million from electric accuracy (1% gain).
  • Operational savings: $1.15 million/year (estimated from reduced truck rolls, re-reads, etc.).

• Data Privacy and Cybersecurity:

  • Consumption data is encrypted and transmitted in small packets; no personal identification is stored in the meter or MDM – only account numbers and usage data.
  • City IT director confirmed encryption methods are robust and no known breaches of similar systems.
  • Historical data will be retained for a limited period (e.g., 5 years, similar to current billing data).
  • Opt-out policy: current ordinance allows opt-out with a one-time charge and monthly fee ($35.72/month). Staff prefers to remove the opt-out option and raise fees to cover costs, but this is a policy decision for council.

• Public Outreach and Installation Process:

  • Amoresco will provide a dedicated on-site construction manager, data team, and community engagement plan.
  • Installations will be scheduled in geographic routes; indoor/commercial meters will be individually scheduled.
  • Critical care patients (e.g., dialysis, oxygen) will be identified and prioritized.
  • No water shutoffs before 8 AM; typical working hours 8 AM–5 PM.
  • A public portal will show real-time progress; pre-notices will be used, but not specific dates due to weather delays.

• Council Questions and Concerns:

  • Council members asked about the impact on employees (meter readers will be retrained as meter technicians).
  • Concern over potential rate increases: accuracy gains are not rate increases; some customers with old, inaccurate meters may see slightly higher bills.
  • Councillor expressed excitement about real-time use rates for conservation incentives.
  • Councillor requested a comprehensive report on existing bond authority and water/electric capital projects to contextualize this large investment.
  • Council agreed to a financing report before the contract vote in September.

Key Outcomes

• Council consensus to proceed with the AMI project, pending a formal contract and financing report.
• Next step: Staff will bring a financing options report to council in advance of the September contract vote.
• Contract vote expected: Late August/early September 2026, with notice to proceed in mid-September 2026.
• Construction start: March 2027, with 3-year rollout.
• Pre-council scheduling: The June 15, 2026 pre-council meeting will start at 4:30 PM to accommodate interviews for Planning & Zoning, Water & Light Advisory Board, and Citizens Police Review Board, followed by a capital improvement plan discussion (estimated 90 minutes).