TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Amendment to the Reimbursement Agreement with Inland Empire Utilities Agency (IEUA) for the Operations and Maintenance Costs of the Preserve Sewer Lift Station for a Five-Year Term in the total amount of $898,000.
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RECOMMENDATION
Approve an Amendment to the Reimbursement Agreement with Inland Empire Utilities Agency (IEUA) for the operations and maintenance costs of The Preserve Sewer Lift Station for a five-year total amount of $898,000; and authorize the City Manager to execute the necessary documents on behalf of the City.
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FISCAL IMPACT
There are sufficient funds in the FY 2024-25 Mid-Term budget for this reimbursement agreement to IEUA. However, the City will need to allocate funds in the subsequent fiscal years to reimburse IEUA in accordance with the five-year budget reimbursement schedule outlined in the Amendment. IEUA has established a budget for the five-year term, during which the City will continue to reimburse IEUA for full operations and maintenance costs in the final years of the Agency's oversight. The costs to operate and maintain the Preserve Sewer Lift Station are covered by the properties that are subject to the City's sewer rates approved by the City Council Resolution No. 2020-045 (attached). These costs, based on a comprehensive analysis, will increase by approximately five percent annually from years two through five to cover rising labor, material, and equipment expenses. The five-year reimbursement schedule is identified as follows:
IEUA Sewer Lift Station Preserve Five-Year
Budget & Reimbursement Schedule - Fund 531
Time Period
Reimbursement Amount
Year 1: July 2024 - June 2025
$163,000.00
Year 2: July 2025 - June 2026
$171,000.00
Year 3: July 2026 - June 2027
$179,000.00
Year 4: July 2027 - June 2028
$188,000.00
Year 5: July 2028 - June 2029
$197,000.00
Total 5-Year Reimbursement Amount to IEUA*
$898,000.00
*Note: An annual budg...
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