American Control Technologies is PleasedAmerican Control Technologies is Pleased

To Present To:To Present To:

The City ofSan Marcos

What Key Issues Do We Address?What Key Issues Do We Address?

• AMR Technologies and their ViabilityAMR Technologies and their Viability• End to End Water Asset UtilizationEnd to End Water Asset Utilization

• Asset Capitalization, Infrastructure Maintaince and PlanningAsset Capitalization, Infrastructure Maintaince and Planning• Federal and State Municipality Guidelines (Valuation, Federal and State Municipality Guidelines (Valuation,

Improvement)Improvement)• Complete Benefit Analysis Presentation (Community, Complete Benefit Analysis Presentation (Community,

Council, Operational Units)Council, Operational Units)• Rate Structures and Billing AnalysisRate Structures and Billing Analysis

Why does UtiliWorks exist?Why does UtiliWorks exist?

• Process and technology evolutions are occurring at such Process and technology evolutions are occurring at such rapid rates that all industries require support to move rapid rates that all industries require support to move forwardforward

• These changes are vast and complex, but bring These changes are vast and complex, but bring tremendous benefits to those they servetremendous benefits to those they serve

• For many industries it is change and improve or For many industries it is change and improve or stagnate/decline, UtiliWorks works to assist in the formerstagnate/decline, UtiliWorks works to assist in the former

• Someone needs to visit all the AMI/AMR Vendors and Someone needs to visit all the AMI/AMR Vendors and their their FacilitiesFacilities

How Does ACT Accomplish This Vision?How Does ACT Accomplish This Vision?

• Build a Team that can manage ALL the AMR variables Build a Team that can manage ALL the AMR variables and help clients in the following areas:and help clients in the following areas:

• Assess the Assess the EnvironmentEnvironment (Technology, Workflow, Asset (Technology, Workflow, Asset Management, Rates, P&L, Data& Equipment Utilization )Management, Rates, P&L, Data& Equipment Utilization )

• Analyze the Analyze the BenefitsBenefits (Go/No Go) (Go/No Go)

• Develop an Develop an Implementation StrategyImplementation Strategy

• Work towards the Work towards the BestBest Solution Solution

• Manage the Manage the ChangeChange to a successful conclusion to a successful conclusion

• Provide ongoing support as decided with the clientProvide ongoing support as decided with the client

What Are the Key AMR Drivers?What Are the Key AMR Drivers?

• AMR is the Enterprise Resource Planning (ERP) tool for AMR is the Enterprise Resource Planning (ERP) tool for Asset Asset ManagementManagement in the Utility Segment in the Utility Segment

• Become a state of the art Become a state of the art Manufacturer!!Manufacturer!!

• A significant cost reduction in data collection and customer A significant cost reduction in data collection and customer service (6 data readers = $360K+ per year expense) service (6 data readers = $360K+ per year expense)

• It offers a significant change in pricing models for the Utility to It offers a significant change in pricing models for the Utility to implement (TOU Pricing)implement (TOU Pricing)

• It is a network that is expandable for other city services, or can It is a network that is expandable for other city services, or can connect to existing networksconnect to existing networks

UTILITY ASSET ASSESSMENTUTILITY ASSET ASSESSMENT

well 1

well 2

water treatment

LEGEND

Residential

Commercial

Water Lines

Sewer Lines

Industrial

Leak

sewer plant

well 3

1920 1st Phase

$20M (06 dollars)

1932 2nd Phase

$8M (06 dollars)

1940 3rd Phase

$ 20M (06 dollars)

1960 4th Phase

$160M (06 dollars)

1980 5th Phase

$65M (06 Dollars)

2005Total Infrastructure= $265M

Water Loss = 30%

AMR Becomes Your Asset Monitoring SystemAMR Becomes Your Asset Monitoring System

LEGEND

Residential

Commercial

Water Lines

Sewer Lines

Industrial

Leak

well 1

well 2

water treatment

sewer plant

well 3

To Identify Water Loss and Problem AreasTo Identify Water Loss and Problem Areas

LEGEND

Residential

Commercial

Water Lines

Sewer Lines

Industrial

Leak

well 1

well 2

water treatment

sewer plant

well 3

Old pipe from 1920s

Leaks nearcommercialareas with 1960sclay pipe

Low-pressurein 1980s Plastic pipes

What is the AMR reality?What is the AMR reality?

• Extremely remote possibility of any one supplier being able provide Extremely remote possibility of any one supplier being able provide the ultimate solutionthe ultimate solution

• Make the ROI and VAP the cornerstone of the AMR ProjectMake the ROI and VAP the cornerstone of the AMR Project

• To create the To create the BEST BEST AMR solution, each opportunity must be AMR solution, each opportunity must be analyzed for the environment it will reside inanalyzed for the environment it will reside in

• Design with a clear upgrade path in mind and look for ways to Design with a clear upgrade path in mind and look for ways to improve ROI and Cost Benefits over timeimprove ROI and Cost Benefits over time

• In today's world a hybrid solution in the majority of cases is the best In today's world a hybrid solution in the majority of cases is the best solutionsolution

• Focus on the 80% solution, and strive to keep it simpleFocus on the 80% solution, and strive to keep it simple

Mobile

Total Project

Benefit Package

Fixed *

Revenue Recovery From Improved Meter AccuracyLabor Savings for ON-cycle reads

Labor Savings for OFF-cycle reads Labor For Re-Reads

Tamper Detection

Consumption

Profiling

Hi-Lo Consumption

Safety Improvement

Mass Balance Report

Alarm Notification

On-Demand Reads

Battery Life Monitor

Online Usage

Non AMR Asset Monitoring

Customer Satisfaction

Compliance Monitoring

Capacity Utilization

System- Wide Leak Detection

Revenue Growth

Asset Value

Cash FlowTheft Detection

Daily/Hourly Reads

Contribution by:* Fixed benefits include the mobile benefits as well

In Home Leak Detection

METER = DATAMETER = DATAAMR Data should be used as Critical DataIn Your 1+ Billion Dollar Asset Management Program

Use AMR as Your Infrastructure NetworkUse AMR as Your Infrastructure Network( Safety Net)( Safety Net)

Data Grid

Collecting and Analyzing the Data TogetherDoes Production #’s=Sales #’s????

Technology is Just theTechnology is Just the

Enabler/Catalyst toEnabler/Catalyst to

Process ChangeProcess Change

What is Process Change?What is Process Change?

• AMR system shows a massive increase in water flow AMR system shows a massive increase in water flow

through one of the large loop meters, what do we do?through one of the large loop meters, what do we do?

• Data is available every day, what do we look for?Data is available every day, what do we look for?

• What do I do with emerging technologies? How do we What do I do with emerging technologies? How do we

maximize the benefits? maximize the benefits?

MeterWriting PadHandheld

Pad & Dispatch

Bill EnvelopeAnd Slip

CollectionStamp Paid

ConsolidateAnd

Check

Billing Tray

Computer Input

Archive

Bill PrintOut and Mailing

Customer

Truck Facility

Operations

BankAcceptance

Posted toAccount

Time Cycle 1-3 Months

COSTS COSTS COSTS COSTS COSTS

COSTS

COSTS

COSTS

COSTS

COSTSCOSTSCOSTSCOSTSCOSTS

COSTS

Customerservice

COSTS+

COSTS+COSTS

Non AMR/AMI Billing Cycle Process

Optimum AMR TransactionOptimum AMR Transaction

ComputerMeter

Customer Bank Account

Utility Bank Account

Transaction Time Frame 1 Hr

Operations EngineeringManagement

Customer Portal

Customer Service

Customer Work Envelope

Note: Key Goal, Single Source Database

Financial-Indirect Workflow BenefitsFinancial-Indirect Workflow Benefits

Potential BenefitsWith Utiliworks Workflow Changes

Fixed-Net Benefits “out of the box”

Complaint Reduction

Workflow Changes are the key to expanding benefits

Move In/Out

Minor Work Flow Change

Theft

Find and Prosecute

CapacityManagement

Monitor and Sell Excess

Capacity

Increase Sales to customers

VariableRate

Structure

CommunityAwareness

The Client MUST Be a Part of the Solution!

Look at the Whole Picture for ROI withLook at the Whole Picture for ROI withAMR and a 20% loss savingsAMR and a 20% loss savings

Eliminate Additional Eliminate Additional DrillingDrilling

Eliminate added pipingEliminate added piping Less MaintenanceLess Maintenance

Monitoring of InfrastructureMonitoring of Infrastructure Reduced capacity stressReduced capacity stress Rapid Loss Repair and Rapid Loss Repair and

IdentificationIdentification Reduced repairsReduced repairs

Reduced Power ConsumptionReduced Power Consumption Lower System UtilizationLower System Utilization Reduced repairs and system Reduced repairs and system

stressstress Reduced Capital costsReduced Capital costs

Understand the Loss DynamicsUnderstand the Loss Dynamics

Expense

Expense

Wasting 2-3.6 million in operating expenses, plus 7.56 million in product (60K Customers @ $35 per month, plus operational margin 30-50%)

Look at the Whole PictureLook at the Whole Picture for ROI with AMR for ROI with AMR

ControlDemandhere

To Keep From Spending100+ Million Herefor the 2-3%Peak Load

Inform Client$$$ Here

Understand the ROI, Asset Management Understand the ROI, Asset Management EquationEquation

6 Meter Readers@ total Cost (equipment, benefits etc) of $360K per year. ROI for Asset NPV=0

6 Maintenance Workers@ total Cost (equipment, benefits etc) of $360K per year. ROI for Asset NPV=70-85% of cost= $288K+(80%)

4 Year Differential = $1,152K+ to Asset Value23 billion, the annual funding gap for water and wastewater infrastructure in the USA.

Source: APWA News Release, April 12, 2000.

The 7 Steps to Adopting an AMR ProgramThe 7 Steps to Adopting an AMR Program

1. The AMR assessment: Collection of information the utility; conduct a 1. The AMR assessment: Collection of information the utility; conduct a technology review.technology review.

2. Pilot Program: Deploy a small number of scalable systems.2. Pilot Program: Deploy a small number of scalable systems.

3. Procurement Navigator: Develop the complete strategy.3. Procurement Navigator: Develop the complete strategy.

4. Staff Model: Address the human factor; design new work flow 4. Staff Model: Address the human factor; design new work flow procedures.procedures.

5. AMR Plan Builder: A comprehensive project plan.5. AMR Plan Builder: A comprehensive project plan.

6. AMR Program Manager: Manage the installation; commission the new 6. AMR Program Manager: Manage the installation; commission the new system; integrate data into the operation to ensure that all benefits are system; integrate data into the operation to ensure that all benefits are captured.captured.

7. Quarterly Reports: Conduct quarterly review to optimize data useage 7. Quarterly Reports: Conduct quarterly review to optimize data useage and plan system improvements.and plan system improvements.

Data Gathering for AssessmentData Gathering for Assessment

TOWER TOWER NO. NO.

DISK/DISK/PHOTO PHOTO

NO.NO.LOCATIONLOCATION LATITUDELATITUDE LONGITULONGITU

DEDE ESTIMATED HEIGHTESTIMATED HEIGHT

11 1/21/2 Progressive TractorProgressive Tractor 30-29-4930-29-49 92-04-2392-04-23Tower on bldg +/- 100' Tower on bldg +/- 100' height height

22 1/31/3 Drs Hospital CourtyardDrs Hospital Courtyard 30-28-1730-28-17 92-04-4692-04-46 +/- 50' height+/- 50' height

33 1/41/4School Board Office - Rear of School Board Office - Rear of BldgBldg 30-31-1330-31-13 92-04-2592-04-25 +/- 75' height+/- 75' height

44 1/51/5 Rear of Creswell Lane Rest.Rear of Creswell Lane Rest. 30-31-0830-31-08 92-04-2692-04-26 +/- 30' height+/- 30' height

55 1/71/7 Union St. Fire StationUnion St. Fire Station 30-31-1430-31-14 92-04-5892-04-58 +/- 120' height+/- 120' height

66 1/91/9 Cajun RentalsCajun Rentals 30-31-1830-31-18 92-06-2492-06-24 +/- 150' height+/- 150' height

77 1/101/10Bldg to North of Hidalgo Iron Bldg to North of Hidalgo Iron WorksWorks 30-31-4330-31-43 92-06-0292-06-02 +/- 50' height+/- 50' height

88 1/111/11 West End Fire StationWest End Fire Station 30-32-0130-32-01 92-05-5592-05-55 +/- 25' height+/- 25' height

99 1/121/12 Dixie GlassDixie Glass 30-32-0430-32-04 92-05-2892-05-28 +/- 125' height+/- 125' height

1010 1/131/13 Hollier ImplementHollier Implement 30-32-0130-32-01 92-07-1592-07-15 +/- 125' height+/- 125' height

1111 1/141/14 Yambilee BldgYambilee Bldg 30-32-0430-32-04 92-06-2292-06-22 +/- 50' height+/- 50' height

1212 1/151/15 Top of City Court BldgTop of City Court Bldg 30-32-1130-32-11 92-04-5492-04-54 +/- 50' height+/- 50' height

1313 1/161/16 City HallCity Hall 30-32-1230-32-12 92-04-5592-04-55 +/- 75' height+/- 75' height

1515 1/181/18 Rear of Entex Bldg - North StRear of Entex Bldg - North St 30-32-0730-32-07 92-04-5992-04-59 +/- 40' height+/- 40' height

Signal Attenuation Studies

Key Areas in PlanningKey Areas in Planning

UWassesment

UWRFP

ReviewSelectPlan

UW Implementation

Pilot

GoLIVE

ProcurementTraining

Customer Install

Workflow Modification

Testing, Testing, Testing

Customer PR

Procurement

Data Utilization System Integration

Time

Develop a Complete Project PlanDevelop a Complete Project Plan

The ACT Process Delivers The Benefits

Operating Efficiency

•Improved meter accuracy

•Faster data collection

•Lower labor cost

Customer

•online bill pay

•leak-outage notification

•usage history

Billing System

•Increased reliability

•Lower Production Costs

•Faster Pay Cycles

Customer Service

•Reduced disputes

•Less costly off-cycle reads

•Faster response times

Maintenance

•Outage detection-response

•Proactive problem identification

•Improved scheduling

Compliance and Engineering

•Data correlation/connection...SCADA

•Water Loss; Distribution Modeling

•Better planning and resource allocation

Safety

•Risk reduction for staff

•Risk reduction for client

•Tamper Detection

Management

•Increased Financial Performance

•Increased customer satisfaction

•Better Asset Management

American Control American Control TechnologiesTechnologies

1152 West 2400 South ‘C’1152 West 2400 South ‘C’Salt Lake City, UT 84119Salt Lake City, UT 84119

801-783-2051801-783-2051www.americancomptech.comwww.americancomptech.com