20C - AA AND AGMT FOR METER INFRASTRUCTURE PROJECT

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Approve Appropriation Adjustment and Agreement Accepting BOR Funds for AMI Project May 19, 2020 Page 2 A feasibility study to evaluate the applicability and costs associated with the AMI project was completed in 2016. The study estimated the costs of fully deploying this project at approximately $14,400,000. In July 2019, the City was awarded $300,000 in BOR WaterSMART grant funding to help offset the City's cost for the this project. The BOR has obligated $275,000 to the City, while retaining $25,000 for their costs to perform environmental and cultural compliance work associated with the National Environmental Policy Act (NEPA) on the City's behalf. If the cost to perform the environmental and cultural compliance work is less than the estimated amount of $25,000 the remaining balance will be obligated to the City. All grant funds from this agreement (Exhibit 1) will be used for planning and design of Phase 1 of the project, which is estimated to cost approximately $2,600,000. To date, the City has received a total of $5,500,000 in grant funding for the AMI project. The balance of the project costs will be funded by the Water Enterprise's capital funds. These costs have been taken into account in the City's existing five-year water rate plan, and no additional rate adjustments are necessary to deliver this project. Staff will continue to pursue additional grant funding opportunities to deliver this project efficiently. 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). FISCAL IMPACT Approval of the requested appropriation adjustment will recognize $300,000 in Bureau of Reclamation WaterSMART grant funds into the Public Works Water Quality & Control Fund, Federal Grant -Direct revenue account (No. 16417002-52000), and appropriate $275,000 into the Public Works Water Quality & Control, WaterSMART-Watershed Management Program, Improvements Other Than Building expenditure account (No. 16417641-66220), and $25,000 into the Public Works Water Quality & Control, WaterSMART-Watershed Management Program, Reserve Appropriation expenditure account (No. 16417641-69011). Grant funds in the amount of $275,000 will be available for expenditure in FY 2019-20 and $25,000 will be placed in reserve appropriation for future year expenditures. Fiscal Year Accounting Fund Description Accounting Unit, Amount Unit -Account # Account Description Public Works Water WaterSmart-Watershed FY 2019-20 16417641-66220 Mgmt Prog, Improvements $275,000 Quality & Control Other Than Building Public Works Water WaterSmart-Watershed FY 2019-20 16417641-69011 Mgmt Prog, Reserve $25,000 Quality & Control Appropriation Total: $300,000 Exhibit: 1. Agreement 20Ci-2