It will cost about $7.5 million for the project, is expected to save about $1.29 million a year between making up for the lost revenues and staff costs because meter readers will no longer be needed.
CHICOPEE — The City Council will reconsider its rejection of a proposal to replace all 16,200 water meters in the city, but members said they want more information about the program and want to hear more from residents.
The plan, endorsed by Mayor Michael D. Bissonnette, the Board of Water Commissioners and the Department of Public works, is to spend about $7.5 million to replace all water meters in the city with ones that can be automatically read using radio signals.
Stanley W. Kulig, the retired Department of Public Works Superintendent who is working as a project adviser, handed councilors new information at a meeting Tuesday. He urged the 13-member group to adopt the proposal.
The city is eligible to borrow up to $8 million in 2 percent low-interest state loans for the project, but it must authorize the spending by June 30. As much as 10 percent of the loan could be forgiven if the city contracts for the work by April 1, Kulig said.
The current estimate for the entire project is $7 million and about $500,000 was added so lead connector pipes can be replaced when meter installer find them. The city is eligible to borrow $8 million but it does not have to borrow all the money, he said.
Kulig said older meters slow down and do not register accurately and most of the meters are reaching the end of their useful life.
A comparison of the amount the city is paying annually to buy water from the Massachusetts Water Resources Authority and the amount it is billing users shows a gap of about 118 million gallons a year, which costs between $300,000 and $400,000. In 2012 the city paid $2.7 million for water and in 2013 is expected to pay $3 million because rates are increasing, he said.
“That is 118 million gallons a year everyone is paying for,” Kulig said. He explained that those lost gallons used by those who have meters that are not registering properly have to be made up by fees from all residents.
City councilors said many residents have said they are opposed to spending the $7.5 million on the meters. They urged residents to call them or attend the finance subcommittee meeting. The date has not been set yet.
“We are hearing the benefits but not the cons. I’m having a lot of calls from people which is rare,” Councilor Donald G. Demers. “They want to know why can’t we replace the meters with new meters.”
Councilor James K. Tillotson questioned if there was a benefit from the low-interest loan from the state when the city has been able to borrow short-term for less than 1 percent interest.
He said he still has questions about the life of the meters and how well the radio reading system works.
Councilor Timothy McLellan said he does see the positives of the program and said the city should replace meters if 118 million gallons of water are not being registered a year.
“It is going to pay for itself. If we are going to net $1.3 million a year then it is a no-brainer,” he said. “I think we should seriously consider it.”
The program is expected to save about $1.29 million a year between making up for the lost revenues and staff costs because meter readers will no longer be needed. The annual savings will come from about $323,000 in water fees and $717,000 in sewer fees that are now being lost, $234,000 in savings in salaries and benefits for meter readers and $19,500 in savings on gas and vehicle maintenance, Kulig said.