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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />OCTOBER 15, 2019 <br />TITLE: <br />ADOPT RESOLUTIONS AUTHORIZING <br />APPLICATION AND REIMBURSEMENT FOR <br />DRINKING WATER STATE REVOLVING <br />FUND CAPITAL PROJECT FINANCING FOR <br />THE ADVANCED METER INFRASTRUCTURE <br />PROJECT (NONGENERAL FUND) <br />{STRATEGIC PLAN NO. 6, 1G} <br />/s/ Kristine Ridge <br />CITY MANAGER <br />d xd•LTA I LTA 121 ki 11111 A r1VA" I Eel ki <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2111 Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />FILE NUMBER <br />1. Adopt a Resolution authorizing the City Manager to submit an application for Environmental <br />Protection Agency/California State Water Resources Control Board's Drinking Water State <br />Revolving Fund financing for the Advanced Meter Infrastructure Project and sign all subsequent <br />financial assistance agreements documents. <br />2. Adopt a Resolution authorizing the reimbursement of funding for the Advanced Meter <br />Infrastructure Project from the State Water Resources Control Board. <br />DISCUSSION <br />The City of Santa Ana provides potable water for all of the City's businesses and residents. The <br />City charges for water used by these customers via traditional mechanical meters that must be <br />read manually. The City is in the planning and design stages of the Advanced Meter Infrastructure <br />(AMI) Project. The proposed AMI Project involves, among other things, the transition of <br />approximately 45,000 existing manual -read meters to new smart meters that communicate via radio <br />or similar technology and enable the City to implement technological enhancements such as <br />automated meter reads, leak detection and usage notifications, and interactive customer portals. <br />By upgrading to an AMI system, customers can be supplied with on -demand, real-time water <br />consumption data, enabling them to make more informed decisions about their water use. Case <br />studies have shown that communities that upgrade to AMI systems can achieve water consumption <br />savings of up to 15 percent. <br />In 2016, the City completed an AMI feasibility study to evaluate the applicability and costs <br />associated with an AMI project. The feasibility study estimated the cost of fully deploying this <br />project at approximately $14,400,000. To date, the City has secured partial financing from two <br />grants for the AMI project for a total of $4,300,000. The first is a $4,000,000 grant from the State's <br />General Fund Specified Grant Projects account and the second is a $300,000 Bureau of <br />55E-1 <br />