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**** Staff also requests that Council authorize the Director of Public <br /> Works to sign all change orders up to one per cent (190 of the total <br /> project . <br /> A copy of the staff report that was presented at the July 10, 1995 Council <br /> work session, accompanies this report for Council' s reference. <br /> Staff has researched the possible funding options for a city wide water <br /> meter changeout as directed at the June work session. Funding sources <br /> identified were, the Water Access Charge Fund (WAC) , and the Special <br /> Projects Fund. Noted at previous council work sessions the Water Utility <br /> is currently losing approximately $30, 000 per year, through inaccurate <br /> meters . This loss will continue to increase until these meters are <br /> replaced. Three options are available for Council consideration. An outline <br /> of the funding will follow the options . <br /> * T--h-e firat.—op�isn i-s to changcout the current water meters, and i- -tall <br /> the most current meter reading technology of automatic phone reading. <br /> Option #1 Changeout of all meters to phone read <br /> Total cost of project : $830, 000 <br /> WAC Fund Contribution: $330, 000 <br /> Special Project Loan : $500, 000 <br /> 967 interest loan, 12 years <br /> Projected Increased Revenue $31, 500 <br /> Possible meter charge / quarter: <br /> Residential - 5/8" $3 . 00 <br /> * Commercial - 1" $3 . 60 <br /> 1 1/2" $6 . 00 <br /> 2" $7 .40 <br /> 3 " $19 . 00 <br /> * Represents the percentage of cost of meter and <br /> installation over the residential 5/8"meter, with a <br /> starting fee of $3 . 00 . <br /> This scenario would produce $70, 381 toward an annual loan payment of <br /> $62 , 951 . The balance of the revenue could remain in the water fund for <br /> future projects, or future meter replacement . <br /> ** The second option would be to install new meters and phone, or radio <br /> read on all the commercial accounts, and install new meters and touch read <br /> on the residential accounts . This is somewhat of a lesser system, but will <br /> be a significant improvement in reading and billing. This system would also <br /> relieve the City of the problems related to scheduling meter readings, <br /> security risks of entering residences, incorrect readings, scheduling final <br /> readings when the customer is at home, and an enormous amount of staff time <br /> related to all of the aforementioned items . <br /> Option #2 Changeout Commercial accounts to phone read, residential to <br /> touch read. <br /> Total cost of Project : $505, 914 <br /> WAC Fund Contribution: $305, 914 <br /> Special Project Loan : $200, 000 <br /> 967 interest loan, 10 years <br /> Projected Revenue Increase $31, 500 <br /> Annual loan payment $26 , 613 <br /> Contracted Meter Reading $ 5, 880 (includes 4 readings) <br /> * 1 9 9 5 <br /> Budgeted amount for 1 contracted reading, $4, 095 . <br /> Possible meter charge / quarter, potentially not necessary <br />