Freeport Council approves $3.5M financing for Ameresco meter project despite concerns over timing and staffing

The Freeport City Council voted to accept a 15-year financing proposal from Government Capital to fund Ameresco’s advanced metering infrastructure (AMI) and meter replacement project.

Staff said the recommended option is a $3,500,000 financing package at 4.45% interest with annual payments of $337,856.32 beginning 18 months after funding. The turnkey project cost was reported as $3,480,210. Staff projected operational savings of $93,000 per year and first-year recovered revenue/unaccounted-for-water capture of more than $305,000. Ameresco provided performance guarantees that the vendor will pay shortfalls or replace failed equipment.

Council debate: Several council members pressed staff on fiscal readiness and contract enforcement. One council member said the guarantee felt like an “IOU” and cited recent warnings from the former CFO about tight finances. Members also asked whether the water department had the necessary supervisory staff in place to manage the implementation; staff confirmed positions were being recruited and that third-party reviews supported the vendor’s projected savings.

Vote and implications: After discussion the council approved the financing resolution 4–1. The approved financing moves the city toward implementation of the AMI project; staff said the anticipated increased revenue and O&M savings would offset annual debt service under the presented projections.

Outstanding items: Council requested clarity on who will monitor contract performance and expressed a desire to ensure appropriate staffing and oversight before full implementation. The council did not set a final installation schedule during the vote; repayment was set to begin 18 months from funding.