American Control Technologies is Pleased To Present To:

1. American Control Technologies is PleasedTo Present To: The City of San Marcos

2. What Key Issues Do We Address? • AMR Technologies and their Viability • End to End Water Asset Utilization • Asset Capitalization, Infrastructure Maintaince and Planning • Federal and State Municipality Guidelines (Valuation, Improvement) • Complete Benefit Analysis Presentation (Community, Council, Operational Units) • Rate Structures and Billing Analysis

3. Why does UtiliWorks exist? • Process and technology evolutions are occurring at such rapid rates that all industries require support to move forward • These changes are vast and complex, but bring tremendous benefits to those they serve • For many industries it is change and improve or stagnate/decline, UtiliWorks works to assist in the former • Someone needs to visit all the AMI/AMR Vendors and their Facilities

4. How Does ACT Accomplish This Vision? • Build a Team that can manage ALL the AMR variables and help clients in the following areas: • Assess the Environment (Technology, Workflow, Asset Management, Rates, P&L, Data& Equipment Utilization ) • Analyze the Benefits (Go/No Go) • Develop an Implementation Strategy • Work towards the Best Solution • Manage the Change to a successful conclusion • Provide ongoing support as decided with the client

5. What Are the Key AMR Drivers? • AMR is the Enterprise Resource Planning (ERP) tool for Asset Management in the Utility Segment • Become a state of the art Manufacturer!! • A significant cost reduction in data collection and customer service (6 data readers = $360K+ per year expense) • It offers a significant change in pricing models for the Utility to implement (TOU Pricing) • It is a network that is expandable for other city services, or can connect to existing networks

6. water treatment sewer plant LEGEND Residential Commercial Water Lines Sewer Lines Industrial Leak well 3 UTILITY ASSET ASSESSMENT 1920 1st Phase $20M (06 dollars) 1932 2nd Phase $8M (06 dollars) 1940 3rd Phase $ 20M (06 dollars) 1960 4th Phase $160M (06 dollars) 1980 5th Phase $65M (06 Dollars) 2005 Total Infrastructure= $265M Water Loss = 30% well 1 well 2

7. water treatment well 1 well 2 sewer plant LEGEND Residential Commercial Water Lines Sewer Lines Industrial Leak well 3 AMR Becomes Your Asset Monitoring System

8. Leaks near commercial areas with 1960s clay pipe Old pipe from 1920s water treatment well 1 Low-pressure in 1980s Plastic pipes well 2 sewer plant LEGEND Residential Commercial Water Lines Sewer Lines Industrial Leak well 3 To Identify Water Loss and Problem Areas

9. What is the AMR reality? • Extremely remote possibility of any one supplier being able provide the ultimate solution • Make the ROI and VAP the cornerstone of the AMR Project • To create the BEST AMR solution, each opportunity must be analyzed for the environment it will reside in • Design with a clear upgrade path in mind and look for ways to improve ROI and Cost Benefits over time • In today's world a hybrid solution in the majority of cases is the best solution • Focus on the 80% solution, and strive to keep it simple

10. Total Project Benefit Package Non AMR Asset Monitoring Asset Value Mass Balance Report Capacity Utilization Compliance Monitoring Customer Satisfaction System- Wide Leak Detection In Home Leak Detection Cash Flow Consumption Profiling Theft Detection Online Usage Battery Life Monitor Revenue Growth Alarm Notification Hi-Lo Consumption Daily/Hourly Reads Tamper Detection On-Demand Reads Labor Savings for OFF-cycle reads Labor For Re-Reads Safety Improvement Revenue Recovery From Improved Meter Accuracy Labor Savings for ON-cycle reads Mobile Contribution by: * Fixed benefits include the mobile benefits as well Fixed *

11. METER = DATA AMR Data should be used as Critical Data In Your 1+ Billion Dollar Asset Management Program

12. Use AMR as Your Infrastructure Network( Safety Net) Data Grid Collecting and Analyzing the Data Together Does Production #’s=Sales #’s????

13. Technology is Just theEnabler/Catalyst toProcess Change

14. What is Process Change? • AMR system shows a massive increase in water flow through one of the large loop meters, what do we do? • Data is available every day, what do we look for? • What do I do with emerging technologies? How do we maximize the benefits?

15. Non AMR/AMI Billing Cycle Process Archive Meter Writing Pad Handheld Pad & Dispatch COSTS Truck Facility Billing Tray COSTS COSTS COSTS COSTS COSTS COSTS+ Operations COSTS COSTS Computer Input Customer service COSTS COSTS+ COSTS Consolidate And Check Collection Stamp Paid Bill Envelope And Slip Customer Bill Print Out and Mailing COSTS COSTS COSTS COSTS COSTS Bank Acceptance Posted to Account Time Cycle 1-3 Months COSTS

16. Optimum AMR Transaction Operations Engineering Management Meter Computer Customer Portal Customer Work Envelope Customer Bank Account Transaction Time Frame 1 Hr Customer Service Utility Bank Account Note: Key Goal, Single Source Database

17. Financial-Indirect Workflow Benefits Increase Sales to customers Complaint Reduction Move In/Out Theft Capacity Management Minor Work Flow Change Find and Prosecute Variable Rate Structure Monitor and Sell Excess Capacity Workflow Changes are the key to expanding benefits Potential Benefits With Utiliworks Workflow Changes Fixed-Net Benefits “out of the box” The Client MUST Be a Part of the Solution! Community Awareness

18. Look at the Whole Picture for ROI withAMR and a 20% loss savings • Eliminate Additional Drilling • Eliminate added piping • Less Maintenance • Monitoring of Infrastructure • Reduced capacity stress • Rapid Loss Repair and Identification • Reduced repairs • Reduced Power Consumption • Lower System Utilization • Reduced repairs and system stress • Reduced Capital costs

19. Understand the Loss Dynamics Expense Expense Wasting 2-3.6 million in operating expenses, plus 7.56 million in product (60K Customers @ $35 per month, plus operational margin 30-50%)

20. Look at the Whole Picture for ROI with AMR Inform Client $$$ Here Control Demand here To Keep From Spending 100+ Million Here for the 2-3%Peak Load

21. Understand the ROI, Asset Management Equation 6 Meter Readers@ total Cost (equipment, benefits etc) of $360K per year. ROI for Asset NPV=0 6 Maintenance Workers@ total Cost (equipment, benefits etc) of $360K per year. ROI for Asset NPV=70-85% of cost= $288K+(80%) 4 Year Differential = $1,152K+ to Asset Value 23 billion, the annual funding gap for water and wastewater infrastructure in the USA. Source: APWA News Release, April 12, 2000.

22. The 7 Steps to Adopting an AMR Program 1. The AMR assessment: Collection of information the utility; conduct a technology review. 2. Pilot Program: Deploy a small number of scalable systems. 3. Procurement Navigator: Develop the complete strategy. 4. Staff Model: Address the human factor; design new work flow procedures. 5. AMR Plan Builder: A comprehensive project plan. 6. AMR Program Manager: Manage the installation; commission the new system; integrate data into the operation to ensure that all benefits are captured. 7. Quarterly Reports: Conduct quarterly review to optimize data useage and plan system improvements.

23. Data Gathering for Assessment

24. Signal Attenuation Studies

25. UW a s s e s m e n t UW RFP Review Select Plan UWImplementation Go L I V E Procurement Procurement Training System Integration Data Utilization Testing, Testing, Testing Pilot Customer Install Customer PR Workflow Modification Key Areas in Planning Time

26. Develop a Complete Project Plan

27. Billing System • Increased reliability • Lower Production Costs • Faster Pay Cycles • Customer Service • Reduced disputes • Less costly off-cycle reads • Faster response times • Maintenance • Outage detection-response • Proactive problem identification • Improved scheduling • Operating Efficiency • Improved meter accuracy • Faster data collection • Lower labor cost • Customer • online bill pay • leak-outage notification • usage history • Compliance and Engineering • Data correlation/connection...SCADA • Water Loss; Distribution Modeling • Better planning and resource allocation • Safety • Risk reduction for staff • Risk reduction for client • Tamper Detection • Management • Increased Financial Performance • Increased customer satisfaction • Better Asset Management The ACT Process Delivers The Benefits

28. American Control Technologies 1152 West 2400 South ‘C’ Salt Lake City, UT 84119 801-783-2051 www.americancomptech.com