55D - RESO METER INFRASTRUCTURE - Laserfiche WebLink

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Resolution Authorizing Grant Applications - AMI & Hydropower Generation From Department of the Interior, Bureau of Reclamation WaterSMART October 15, 2019 Page 2 communities that upgrade to AMI systems can achieve water consumption savings of up to 15 percent. In 2016, the City completed an AMI feasibility study to evaluate the applicability and costs associated with an AMI project. The feasibility study estimated the cost of fully deploying this project at approximately $14,400,000. To date, the City has secured partial financing from two grants for the AMI project for a total of $4,300,000. The first is a $4,000,000 grant from the State's General Fund Specified Grant Projects account and the second is a $300,000 Bureau of Reclamation WaterSMART grant. The AMI project meets the requirements of the Fiscal Year 2020 WaterSMART WEEG Program for an award of up to $1.5 million. If a WEEG Program grant application is successful, the funding would offset a significant portion of the remaining cost of the project. Additionally, the City of Santa Ana water system has seven connection points with the Metropolitan Water District: sites SA-1 through SA-7. In February 2019, the City completed a Water Systems Alternative Energy Feasibility Study. The study determined that three of the seven connections have adequate water flow to generate electricity via turbines. This process is called hydropower generation, and the estimated cost of implementing that at all three sites is $2,600,000. Of the three sites, site SA-1 has a hydro turbine generator, but it has reached the end of its useful life. The estimated cost of replacing the hydropower generation unit at the SA-1 location is approximately $640,000. The proposed Hydropower Generation Project would upgrade the existing hydro turbine generator to a more efficient device and would serve as a model for installations at other locations. This project meets the requirements of the $300,000 WaterSMART WEEG Program funding group. The two resolutions referenced in this Council Action (Exhibit 1 and Exhibit 2) are needed to meet the State's requirements for submitting grant applications. Adoption of the resolutions would accelerate the completion of the AMI and Hydropower Generation projects, allowing the City and its enterprise ratepayers to benefit from these service -level improvements. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. 55D-2