DATE: May 6, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Mark Hilty, Director of Water Management
SUBJECT:
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Consideration of Resolution 2016-26 and 2016-31, Resolutions to Approve Financing of a Supervisory Control and Data Acquisition (SCADA) System for Water Management with the State Revolving Fund. (8-12-2016 Finance 3-0)
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning a financing agreement with the State Revolving Fund to finance the upgrade and relocation of the SCADA system used by Water Management to monitor its various facilities.
Background
The Water Management department has proposed an upgrade and relocation of its SCADA system as part of the Integrated Water Management Plan. The State Revolving Fund has agreed to finance the expenditure for this project at particularly favorable interest rates, which the City would be unlikely to obtain in the municipal bond market.
The City of Franklin Water Management Department currently uses an antiquated SCADA system that provides limited monitoring and nearly no operating capabilities of the wastewater collection and water distribution systems. The project, proposed to be funded through the SRF, will provide operators and supervisory staff much needed capabilities in terms of system wide monitoring and in operations of key elements in both systems. This includes upgrades at over 40 locations including finished water reservoirs, water booster stations, wastewater lift stations and metered water intakes from the HVUD.
Financial Impact
The project would add $3.5 million in debt obligations to the Water Management department, which would be retired over a fifteen or twenty year period depending on interest rates at the time of closing.
Recommendation
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Staff recommends approval of the Resolution, subject to final approval by the Law Department.