CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance authorizing the issuance of General Obligation (GO) Bonds for an amount not to exceed $7,500,000
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
Prior to the City Council's approval of the Water 2.0 project, the Financial Advisory Board (FAB) discussed project financing. FAB recommended debt issuance given the long service life of the assets and the low interest rate environment.
BACKGROUND:
In 2019, the City Council directed staff to issue a request for proposals for the implementation of an automated metering infrastructure (AMI) system in the Water Utility. This project, known as the Water 2.0 project, sought to convert the City's approximately 43,500 water meters into a wireless meter reading system. The project included the installation of AMI hardware, including meter interface units and data collection units, integration with the City's existing Meter Data Management System (MDMS), and associated software integration for a complete automated utility metering system across both utilities. The project supports improved service levels, increased accuracy and efficiency of data collection, improved sustainability, and improved experience with future utility billing technology.
On September 1, 2020, the City Council awarded a contract to Core & Main/Sensus for the installation of automated water meter infrastructure in the amount of $7,155,860, as well as a contract with Harris Computer Systems in the amount of $247,580 for MDMS integration. Based on the project cost, the estimated 20-year life of the assets, and the availability of low interest rates, staff proposed that the project be funded through bond issuance, a recommendation supported by the FAB.
The 2022 budget reflected the issuance of $7 million in general obligation (GO) bonds to reimburse the project costs.
DISCUSSION:
Since 2017, the City has issued bonds based...
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