Memorandum

City of Lawrence

City Manager’s Office

 

To:

Mayor

City Commission

From:

Dave Corliss

City Manager

cc:

Debbie Van Saun, Asst. City Manager

Dave Wagner, Utilities Director

Date:

April 3, 2007

Re:

Water and Sewer Topics

 

Significant projects associated with putting the infrastructure in place to serve the water and wastewater needs for a community of 150,000 are underway.  Staff is using this opportunity to update current and new City Commissioners on several topics and decisions related to these projects.  Additionally, Black & Veatch will be presenting a short overview of how we’ve progressed from the master planning process through the process of establishing appropriate rates for services. 

 

An outline of the two projects and an associated topic are presented below.  Documents with background and additional information are provided.  Those items needing direction from the City Commission are also noted, and will be agenda items for the April 17, 2007 City Commission agenda.  The most recently completed rate study for the water and wastewater utilities (for the five year study period of 2005 through 2009) was based on capital improvement projects that were anticipated in the 2003 water and wastewater Master Plans. 

 

            I.      Maps of Water and Wastewater Capital Improvement Projects

Capital Improvement projects essential to the growth, reliability, and regulatory compliancy of these utilities were forecast in the 2003 water and wastewater Master Plans.  Many of those projects have been completed, are currently underway, or are planned for the upcoming years.

 

         II.      Clinton Water Treatment Plant Improvements

The second phase of this major upgrade of the Clinton Treatment facility to a 25 million gallon per day (mgd) treatment capacity will maximize the City’s water rights in the Clinton Reservoir.  The attached staff memo outlines the scope of this construction project and the items for City Commission consideration and direction:

A.    Award construction contract to CAS Construction, Inc.

B.    Award construction phase services contract to Black & Veatch, Inc.

C.   Approve the issuance of a Request for Proposals (RFP) for instrumentation and controls services associated with the project.

 

     III.      Wakarusa Water Reclamation Facility Project

Siting of this facility and land acquisition has been accomplished.  Next steps include:

A.    Launching of the annexation process.

B.    Completion of the Kansas Department of Health & Environment (KDHE) National Pollutant Discharge Elimination System (NPDES) permit process.

C.   Establishment of the conveyance corridor and land acquisition of same.

D.   Request for Qualifications (RFQ) for design/build team for design and construction of the treatment facility, conveyance system, and associated appurtenances. (see attached staff memo)

E.    Resolution for bonding authority to finance the project.

 

 

       IV.      Water and Wastewater Rates – Forecast of Potential Impacts

The 2005-2009 rate study included an analysis of the revenue necessary for the completion of capital improvement projects anticipated to meet the growth, reliability, and regulatory needs of the water and wastewater utilities for the Lawrence community.  As project costs have been refined for these two significant projects, staff has utilized the rate forecasting model to further analyze the impact of the increased costs on future rates.  The attached spreadsheets provide rate projections utilizing updated information on project costs.  While we are forecasting increases for water rates that are higher than what was provided in the aforementioned rate study, staff continues to analyze these projections and will provide a revised recommendation for the 2008 water and wastewater rates later during the 2008 budget process.