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Automated Metering Infrastructure Project <br /> July 16, 2024 <br /> Page 2 <br /> replace or retrofit all of the existing, manually-read water meters in the City with smart <br /> meters capable of communicating water consumption and other system information to <br /> both the utility and the customer. Additional components of the AMI Project are the <br /> installation of communications equipment to receive water system data, billing software <br /> system upgrades, and other software integrations to allow for full utilization of available <br /> water data. <br /> Due to the age and condition of the City's water system infrastructure, especially <br /> appurtenances that house or control the delivery of water to meters, the AMI Project has <br /> incurred additional expenses in order to correct related deficiencies. Although staff <br /> anticipated some supplemental work would be needed and attempted to budget <br /> appropriately with both the contingency for the AMI Project's master agreement, as well <br /> as with the use of third-party contractors, the amount of work and materials needed to <br /> make prudent repairs to the infrastructure has far exceeded initial projections. The <br /> requested amendment with Aqua-Metric (Exhibit 1) will add $6,000,000, including <br /> $1 ,500,000 in contingency, to cover already-determined expenditures, as well as <br /> establish a new contingency fund for future unknown costs related to the repair of the <br /> water system infrastructure. <br /> Finding cost-effective solutions to maintain and improve the City's water system <br /> infrastructure has been a priority for the Division. To date, the Division has been <br /> awarded $1 ,500,000 in grant funds from the Federal Bureau of Reclamation, <br /> $4,000,000 in grant funds from the California State Natural Resources Agency, and a <br /> $10,117,365 low-interest loan from the California State Water Resources Control Board <br /> for the AMI Project. However, due to the factors mentioned above, as well as rapid <br /> inflation driving up project-related material costs, additional funds are needed in order to <br /> complete the project as-intended. On June 4, 2024, the City Council approved the sale <br /> of Water Revenue Bonds to provide the capital needed to fund several Water <br /> Resources Division projects, including the AMI Project. <br /> To date, only $25,894,948 has been appropriated to the project; the approval of the <br /> recommended actions will appropriate an additional $15,000,000 to the project for a <br /> total of $40,484,948, and amend the FY 24-25 CIP Plan (Exhibit 2). The additional <br /> funds will be used to cover the previously-mentioned increased costs incurred under the <br /> agreement with Aqua-Metric Sales Company, as well as allow for needed rehabilitation <br /> on the City's water meter vaults and appurtenances. <br /> Project Delivery <br /> The estimated total project delivery costs include work being performed under the <br /> agreement with Aqua-Metric Sales Company, project management and software <br /> integration support services, as well as supplemental work to replace or rehabilitate <br /> aged water meter infrastructure. <br /> City Council 16 — 2 7/16/2024 <br />