TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:August 26, 2025
SUBJECT: Automated Meter Replacement Program FY 2025-27 (CI 5677) RECOMMENDATION:
1. Authorize expense in the amount of $4,000,000 as follows: $2,000,000 in FY 2025-26 from A/C #613-8030-682-8300 (Cl 5677, Automated Meter Replacement Program) and $2,000,000 in FY 2026-27 from A/C #613-8030-682-8300 (Cl 5677, Automated Meter Replacement Program) for the purchase of Badger water meters, appurtenances, meter reading equipment, and associated software.
2. Authorize the City Manager to execute an agreement after City Attorney approval with Badger Meter, Inc. (Milwaukee, WI) for meter endpoint cellular and data network service, effective July 1, 2025, through June 30, 2027, in an amount not to exceed $370,000.
3. Authorize budget appropriation in the amount of $40,000 in FY 2025-26 from A/C #611-0000-341-9900 (Water Fund – Fund Balance) to A/C #611-8030-683- 6117 (Water Fund - Utilities/Meter Cellular/Data).
4. Authorize expense in the amount of $370,000 as follows: $160,000 in FY 2025- 26 from A/C #611-8030-683-6117 (Water Fund - Utilities/Meter Cellular/Data) and $210,000 in FY 2026-27 from A/C #611-8030-683-6117 (Water Fund - Utilities/Meter Cellular/Data) for monthly Advanced Meter Infrastructure (AMI) meter endpoint cellular and data network service charges.
5. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
Automated Meter Replacement Program FY 2025-27 (CI 5677) August 26, 2025
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FINANCIAL IMPACT:
$40,000 Increase to Adopted FY 2025-26 Water Fund Operating Budget. $40,000 increase to Adopted FY 2025-26 Water Fund Operating Budget is requested to supplement available budget for monthly AMI meter endpoint cellular and data network service charges. $120,000 is included in the Adopted FY 2025- 26 Water Fund Operating Budget and $210,000 is included in the Adopted FY 2026-27 Water Fund Operating Budget. The annual not-to-exceed amount of $2,000,000 for the Automated Meter Replacement Program (CI 5677) is included in the Adopted FY 2025-2027 Water Capital Budget.
BACKGROUND:
The City’s water distribution system serves more than 17,000 water connections and provides water services to approximately 53,000 residents throughout Thousand Oaks. The water distribution system is separated into two service areas:
the main Thousand Oaks service area and the Newbury Park service area. The City’s Water Division provides monthly field meter reading services to the Finance Department for water utility billing purposes for each service connection in the water distribution system.
The City began replacing manual analog meters with Automated Meter Reading (AMR) technology in 2007, also known as drive-by meter reading. AMR technology utilizes radio communication to provide water usage data from each meter to a receiver mounted on a vehicle. This allows staff to gather monthly meter readings by driving near water meters, eliminating the need to physically walk and read each meter manually. The City initially began integrating AMR technology in the Newbury Park service area before expanding into the main Thousand Oaks area.
In 2013, City Council approved standardization of water meters and meter reading equipment purchases from Badger Meter, Inc. (Badger), and by 2021, nearly all the City’s water meters had been replaced with AMR technology.
As AMR technology continued to evolve, AMI was introduced to the water industry.
AMI refers to technology that modernizes the traditional utility metering system, allowing for more advanced and automated collection, measurement, and analysis of water use data. AMI goes beyond the AMR technology by transmitting data remotely through a more centralized radio data collection system, or, more recently, through a cellular carrier network. Data is uploaded into a software platform providing more accurate and timely water use tracking and data analytics for City staff and utility billing purposes. AMI technology eliminates the need for drive-by data collection through each meter route and allows customers timely access to their water use data through a customer portal.
Automated Meter Replacement Program FY 2025-27 (CI 5677) August 26, 2025
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Between 2021 and 2023, staff began piloting AMI technology using centralized remote data collectors and replacing a portion of AMR meters with radio AMI meters. By 2023, due to improvements in the cellular meter reading technology, staff began installation of cellular-capable AMI meters in the Newbury Park service area, followed by the central Thousand Oaks area. This transition coincided with the end of the estimated 15-year battery life of the existing AMR meters. Currently, these cellular-capable AMI meters represent approximately 50 percent of the total service area, and radio-capable AMI meters represent an additional 30 percent of the total service area.
DISCUSSION/ANALYSIS:
Cellular AMI technology has demonstrated greater consistency in data transmission across the City's varied topography. This supports the ongoing implementation and use of the customer-facing portal as meters are upgraded with AMI technology. Staff will continue replacing existing AMR equipment with cellular- based AMI meter endpoints and continue to use AMI radio technology where practical. This strategy allows for ongoing implementation of AMI technology and customer portal access while taking into consideration the existing AMR expected battery life. The overall goal is to complete the AMI meter reading system upgrade, including full customer access to water use data, by early 2027.
The proposed two-year purchase of Badger AMI meters, upgrade components, and software will support the City's full transition to AMI, including customer interface functionality. Since 2013, Badger meters have been standardized for all residential and commercial connections in the City’s system. Similar to other cellular-based technologies, both the meter endpoints and the required cellular/data service are necessary for the system to operate. The Badger meter endpoint with integrated cellular and data service is a proprietary commodity available exclusively through the manufacturer and is the only network compatible with the City’s existing metering infrastructure.
Staff recommends authorization to purchase Badger AMI Meters, meter upgrade equipment, and AMI infrastructure components in an amount not to exceed $2,000,000 in FY 2025-26 and $2,000,000 in FY 2026-27, as well as approval of cellular data transmission service charges in the amount of $160,000 in FY 2025- 26 and $210,000 in FY 2026-27.
Staff further recommends authorizing the City Manager to execute an agreement with Badger for meter endpoint cellular and data network service, effective July 1, 2025, through June 30, 2027, in an amount not to exceed $370,000. This service enables real-time communication and data transmission through Badger’s proprietary Beacon Advanced Metering Analytics system, which is essential for full network functionality and customer tools such as leak alerts and usage monitoring.
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This will help support the City’s water conservation and customer service goals.
To support the accelerated pace of AMI meter replacements and maintain project momentum, a $40,000 budget appropriation to the FY 2025-26 Water Fund Budget is recommended to supplement available funding for these service charges.
This project meets City Council’s Top Ten Priorities #9, “Public Works Infrastructure Investments”.
CIP PROJECT PRIORITY (as outlined in FY 2025-26 and FY 2026-27 CIP Program Budget)
Priority Two – Necessary, but not essential, and there could be consequences if deferred.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made. The completed Levine Act form for Badger Meter, Inc. is included as Attachment #1.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
Automated Meter Replacement Program FY 2025-27 (CI 5677) August 26, 2025
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F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Bret Sherman, Utilities Maintenance Supervisor Attachments:
Attachment #1 – Badger Meter, Inc. Levine Act Form
DPW:1000-30\ev\Council\2025\082625\CI 5677\Automated Meter Replacement Program FY 2026-27 staff report.docx