San Dieguito advances $850,000 meter upgrade in phased push toward AMI

San Dieguito advances $850,000 meter upgrade in phased push toward AMIThe district will begin replacing over 1,100 failing radio meters in September, completing the first step of a broader technology shift despite missing out on an initial round of federal grant funding.

Contractor Ferguson will begin installing Neptune meters on September 14, 2026, targeting a four-to-six-week completion window.

The initial $850,953 design-build contract covers meter and lid replacements to transition the area to an automatic meter reading (AMR) drive-by system.

A Phase 2 contract for the AMI gateway receiver network is currently in design and expected to go before the board in early 2027.

The district plans to reapply for US Bureau of Reclamation WaterSMART funding after its initial application was not selected.

The board also approved a professional services agreement with Raftelis Financial Consultants for a water rate cost of service study.

The San Dieguito Water District (SDWD) is preparing to mobilize contractors for a targeted water meter upgrade, marking the first physical step in the utility’s phased transition to an Advanced Metering Infrastructure (AMI) system. Principal Engineer Elmer Alex informed the board on August 19 that Ferguson, operating under an $850,953 design-build contract awarded in December 2025, will begin meter and lid replacements on September 14. The contractor is sole-sourcing Neptune meters, which feature a 10-year prorated battery warranty. This initial rollout targets the district's "Cycle 7" area in old Encinitas, which currently suffers from the highest rate of radio failure, forcing staff to manually read the majority of its meters. Of the 1,176 meters in the cycle, 66 have been excluded from this phase due to physical conflicts, such as low placement or surrounding private improvements. Ferguson is expected to complete the Cycle 7 installations within a tight four-to-six-week window, ensuring the new hardware is operational before the district's next scheduled meter reading in November. While the new Neptune meters are AMI-capable, they will initially operate on a legacy automatic meter reading (AMR) drive-by system. Alex explained that the district is taking a phased approach to the technology upgrade to avoid installing receiver infrastructure in neighborhoods that do not yet have compatible meters. Ferguson is currently designing the gateway network required for full AMI functionality. Staff expects to bring an amended contract for the Phase 2 gateway installation to the board in early 2027. Following the completion of Cycle 7, the district will evaluate "Cycle 6" in old Leucadia, which has the second-highest radio failure rate. The district is currently funding the upgrades internally after its application for a US Bureau of Reclamation WaterSMART grant was unsuccessful. Alex noted that federal grant activity was delayed by a government shutdown in late 2025, and the Bureau ultimately awarded just $38.9 million across 31 projects. SDWD staff are working with grant specialists to seek a debrief from the Bureau and reapply in the next funding round. In separate action, the board utilized its consent calendar to approve a professional services agreement with Raftelis Financial Consultants to conduct a water rate cost of service study.