The Houston City Council is set to vote Wednesday on whether to appropriate an additional $5,500,000 to an existing contract for the city’s Advanced Metering Infrastructure (AMI) system — bringing the total contract value to $43.5 million.
The funds would come from the Water and Sewer System Consolidated Construction Fund and go toward the city’s contract with Sensus USA, Inc., which has been managing the installation of the AMI network since 2020.
Contract background
The original contract was awarded Nov. 24, 2020, under Ordinance No. 2020-0992, for a 10-year term with a maximum contract amount of $38 million. An initial funding amount of $18.5 million was allocated at the time.
This is not the first time the contract has been amended. In October 2024, city council approved an additional $16,054,610 appropriation under Ordinance No. 2024-0768 — though that amendment did not increase the maximum contract amount.
To date, the city has spent $34,322,180.55 on the project.
Why more money is needed
According to Houston Public Works (HPW), the additional funding is necessary due to increased material costs, higher equipment pricing and rising operating expenses — cost escalations that were not anticipated in the original contract scope.
The additional $5.5 million is expected to sustain the department’s AMI operations through the end of 2027.
What AMI means for Houston
Public works said the AMI system is more than just a meter upgrade. Both the Texas Commission on Environmental Quality (TCEQ) and the U.S. Environmental Protection Agency (EPA) require the service, which is designed to minimize the risk of loss of life and property due to flooding during extreme weather events.
Under the contract, Sensus USA, Inc. provides all tools, materials, equipment, labor, training and supervision necessary for the AMI network and its Software as a Service (SaaS) platform. Software maintenance and upgrades are covered under the SaaS agreement, while installation of individual meter reading devices and infrastructure is handled by HPW field personnel and/or contractors.
