Agenda Item
O-364-20 Making certain findings related to the cost-benefit analysis of the Metering Infrastructure (AMI) and Leak Detection System conducted pursuant to a contract with Johnson Controls, Inc. (JCI) as authorized by Ord. 339-18 as amended by Ord. 291-19; authorizing the mayor to enter into a contract with JCI for project management, construction and implementation of the AMI project; authorizing the appropriation from the unappropriated bond proceeds in the amount of $43,897,291 into the Water Bond Improvement Fund and the appropriation from the unappropriated sewer bond proceeds in the amount of $43,892,844 into the Sewer Bond Improvement Fund and authorizing the expenditure of same; authorizing the appropriation in an amount not to exceed $5,000,000 from the unappropriated balance of bond proceeds into the Water Bond Improvement Fund and an amount not to exceed $5,000,000 from the unappropriated balance of bond proceeds into the Sewer Bond Improvement Fund for improvements to SAP necessary to support the Project and authorizing the expenditure of the same; authorizing the expenditure of $3,788,468 from the Utilities Administrative Services Fund over 20 years for measurement and verification service; authorizing the expenditure of funds from the Utilities Administrative Services Fund for annual software licenses; and declaring an emergency.
All council members should read the book "Strong Towns" by Charles Marohn before approving long term debt obligations where the bond payments will outlive the useful life of the improvements it's paying for.
The cost-benefit analyses of these projects are often full of faulty, best-case scenario assumptions and overly optimistic accounting tricks to make the numbers look better than they will be in reality. Please do your due diligence before saddling multiple generations of Toledoans with debt