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6.3E <br />Page 2 <br />the new meter-reading technology will enable PWS to automatically alert residential <br />customers of continuous water leaks or when they have exceeded their water budget. <br />The benefits of the meter replacement project are two-fold; the project will not only <br />reduce the labor costs associated with conventional meter-reading by hundreds of <br />thousands of dollars each year, but will also have the potential to save hundreds of <br />acre-feet of water through better customer communication. Specifically, the project <br />involves the replacement of more than 20,000 meters with new Automated Metering <br />Infrastructure that will enable the City and water customers to detect leaks and reduce <br />water use, resulting in less potable water demand. <br />The five-year, City-wide meter replacement project cost is estimated at $8 million; the <br />grant proposal request is $1,000,000 in funding for implementation of Phase I of the <br />City's residential portion. The grant requires that receiving agencies match at least 50% <br />of the project cost; the remaining portions of the project will be paid for using City funds. <br />These City funds will come from the dedicated Water Conservation CIP account and an <br />inter-loan transfer. The inter-loan transfer will be repaid using revenues collected <br />through the City's Water Enterprise. PWS will be returning to Council early in the new <br />fiscal year with a complete proposal; including cost breakdowns, funding mechanisms, <br />and scheduling. <br />ALTERNATIVES <br />Council could elect to not adopt the Resolution; the consequence is that the City would <br />not receive the grant funding. <br />FISCAL IMPACT <br />PWS anticipates spending up to $8 million to replace the City's aging metering <br />infrastructure with new technology. These funds will be spent regardless of whether or <br />not WaterSMART grant monies are received; the grant funds, however, will offset up to <br />$1 million of City expenditures on the project. The City's portion of the meter <br />replacement project will be borne by the Water Enterprise; the City's General Fund will <br />not be affected. The five-year Meter Replacement Project costs have been outlined in <br />the ten-year Water Enterprise Cash Flow Projection which was updated in 2010. <br />Ju Ezell <br />blic Works Superintendent <br />_ ~~ <br />eter I ram ; <br />City Manager <br />.~ <br />Marilyn Hara <br />Acting Publi~ orks Services Director , <br />ATTACHMENTS <br />Resolution authorizing the City Manager to commit the City to the financial and legal <br />obligations associated with receipt of WaterSMART Grant financial assistance. <br />RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br />None <br />