San Bernardino completes first phase of AMI rollout, closes installation contract with $262k deduction

San Bernardino completes first phase of AMI rollout, closes installation contract with $262k deductionThe California utility has automated nearly a third of its 45,000 water meters, utilizing $2.5 million in grant funding to transition toward real-time leak detection and operational efficiencies.

The Water Board approved a final deductive change order of $262,270 to Professional Meters, Inc. (PMI), closing out the initial installation contract.

The board also approved a $140,573 contract amendment with Itron for ongoing AMI software, subscriptions, and connectivity support.

The department secured two grants totaling $2.5 million to help fund the meter modernization effort.

Staff noted the utility is not rushing into Phase 2, citing the need to evaluate costs and transition field staff through natural attrition.

During its July 14, 2026 meeting, the San Bernardino Municipal Water Department approved key contract actions to close out the first major phase of its Advanced Metering Infrastructure (AMI) program. The utility has successfully automated nearly a third of its 45,000 meters, shifting away from manual reads to a system that provides real-time usage data and leak notifications for customers. To finalize the installation phase, the board approved a deductive change order of $262,270.47 to its contract with Professional Meters, Inc. (PMI). A staff member explained that the deduction trued up final quantities, accounting for meters that were ultimately replaced by in-house staff rather than the contractor. Concurrently, the board approved a $140,573 contract amendment with Itron. The agreement covers the software, subscriptions, and connectivity required to maintain the automated reading network for an initial one-year term, with options for four additional annual renewals subject to a 3% price escalator or CPI increase. While the first phase has been deemed a success—bolstered by $2.5 million in grant funding across two separate awards—board members and staff indicated a cautious approach toward upgrading the remainder of the system. In response to board concerns regarding the cumulative costs of technology upgrades and ongoing maintenance contracts, staff confirmed the utility is "not in a hurry to get into Phase 2." The transition to automated meters has already generated labor efficiencies. Staff noted that while the remaining two-thirds of the system still requires manual reads, the utility anticipates reducing or reallocating field positions over the next few years through natural attrition as the rollout eventually continues.