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HomeMy WebLinkAbout25-009 Authorizing an Interfund Loan for Temporary Financing of Water Meter DevicesResolution 25-009 RESOLUTION NO.25-009 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, AUTHORIZING AN INTERFUND LOAN FOR TEMPORARY FINANCING OF WATER METER DEVICES Recitals: A. The existing water meters and associated reading devices have reached their life expectancy. Failure rates have been accelerating and equipment is no longer serviceable. B. Water meters need to be replaced periodically to ensure accuracy of readings. Old water meters tend to under report actual water used. C. The City water rates were developed to include replacement of the City water meters over a 5 year period estimated at $2,130,617. D. This Resolution authorizes up to a $2,130,617 interfund loan from the General Fund to the Water Sewer Operating for four years at an interest rate based on the current short-term opportunity cost rate obtained for 5 year loans in the City investment pool. E. The City has existing equipment and is purchasing meters in consideration of our existing contracts and equipment. F. The City will use competitive purchasing process authorized by State Law to provide the best value in consideration of purchase price and long term operational costs. G. Replacing all the meters at one time will result in better pricing, reduce call outs for water meter failures, and will free up approximately 240 employee hours per month to work on important system maintenance and replacement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend as follows: The City Manager is authorized to take necessary steps and execute necessary documents to affect an interfund loan from the General Fund to the Water Capital Fund to finance the replacement of the City water meters and associated appurtenances. 2. The amount is not to exceed $2,130,617. The term is not to exceed 5 years at an interest rate equal to 4.75% per annum for the loan term. 3. The loan will be repaid no later than December 31, 2029 according to the payment schedule attached Exhibit A. Early payment is permitted. ADOPTED by the City Council of the City of Port Townsend at a regular business meeting thereof, held this 21 st day of April 2025. ,wrcrarr ""-009 David Mayor Attest: rL / / 0 S 0 9 � § c } G E 0 \ \ k © 0 \ \ p G = m / }� CU O (U \ § k ] J ; C . �� > n ,mlm;new \ \ \ \ \ G m M'm m m \ m m Inm ) � c \ƒ / \ 14 � 2 A t _ E ) § < ai ac ) \ � y o m � _. Ln — R aq \ © ° 2 \ (D % R m ® § R° k� /\ � k \ a N Ln �m _ .