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7745 DRAFT URBAN WATER MANAGEMENT PLAN 5. Water Metering and Rates Overview This chapter describes the City's water metering practices, its guiding principles regarding the setting of water rates, and a summary of current and future water rates. The City's water rates will need to be increased significantly. The City currently purchases all of its potable water supplies from San Francisco via the Hetch Hetchy Water System. The cost of Hetch Hetchy water is projected to almost triple over the next 10 years because of large new costs associated with its capital improvement program. With such large increases in purchased water costs, alternative supplies (e.g., recycled water) and water conservation programs become relatively more cost - effective. These programs alternatives will, however, also tend to increase costs, but perhaps less - drastically. Another related issue is water demand/supply reliability as discussed in Chapter 3. The City would need to pay more to decrease the frequency and magnitude of expected water shortages. 5.1 Water Metering The City meters all its water customers. In 2002, about 23,000 meters of various sizes were in service. Single - family and multiple - family customers have their meters read and billed on a bimonthly basis. All other classes have their meters read and billed on a monthly basis. Currently, the City makes about 150,000 meter reads per year. Water meters are subject to wear and deterioration. Over time, meter accuracy decreases, resulting in under - readings and a reduction in revenues. AWWA standards recommend periodic meter testing (one to four years depending on size). In fiscal years 2000/01 and 2001 /02, the City tested all of its large meters between 3 and 10 inches. It has a maintenance program for systematically testing, calibrating, and replacing meters based on a per meter cost/benefit analysis. The City does not have a similar systematic program for meters less than 3 inches, although these smaller meters are replaced as problems are identified. Historically, the City uses staff to walk 154 different meter routes, lift each meter box lid, open the meter cover, read and enter the meter reading into a hand -held computer, and then replace the box lid and walk to the next meter. In September 2002, the City Council approved the purchase of automatic remote meter reading equipment as part of a pilot project. The pilot project targets remote, hillside areas, where meter reading is especially difficult and consists of: ❑ Converting 838 meters to automatic radio read technology, requiring the purchase of 827 radio -read meter transceiver units, and replacement of 625 old meters. _ ❑ Purchasing a vehicle communications unit and meter reading software. 35