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Adopt Resolution for AMI Project Installment Sale Agreement <br />February 7, 2023 <br />Page 2 <br />3 <br />2 <br />1 <br />7 <br />projects needed to achieve or maintain compliance with Safe Drinking Water Act <br />(SDWA) requirements. Approval of the agreement (Exhibit 2) will allow the City to fund <br />the AMI Project while also freeing up funds for additional projects that may otherwise be <br />deferred due to insufficient revenue fund balances. <br />Total AMI project costs are estimated at $29,683,230. Staff has requested a principal <br />loan from the SRF in the amount of $10,117,365, which according the Payment <br />Schedule (Exhibit 3), will be paid back over 23 years at 1.1% interest rate and at a cost <br />of $1,224,034.32. The remaining cost of the AMI project is being funded through State <br />and Federal Grants ($5.3 million) and Water Enterprise Revenue. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />Funds are available in the current fiscal year budget, FY 22-23, to pay estimated <br />administrative and grant fund fees of $15,028.57 in Water Debt Service, Contract <br />Services-Professional expenditure account (No. 06017020-62300). Principal and <br />interest payments are due annually beginning one year after construction completion <br />date of June 30, 2025. Funds for debt servicing in fiscal years FY25-26 through FY45- <br />46 will be included in the proposed budgets for City Council consideration. Debt <br />servicing will be recorded in Water Debt Service, Principal-Debt Services expenditure <br />account (No. 06017020-67100) and Interest-Debt Services expenditure account (No. <br />06017020-67110). Loan reimbursement disbursements will be recorded in Water Fund, <br />Notes/Loan Payable account (No. 06001001-27000). <br />EXHIBIT(S) <br />1. Resolution Approving the Construction Installment Sale Agreement with the <br />California State Water Resources Control Board for Financing of the Automated <br />Metering Infrastructure Project <br />2. Construction Installment Sale Agreement <br />3. Project Loan Schedule Summary <br />Submitted By: Nabil Saba, Executive Director, Public Works Agency <br />Approved By: Kristine Ridge, City Manager