Memorandum

City of Lawrence

Finance Department

TO:	Dave Corliss, City Manager
FROM:	Ed Mullins, Finance Director
CC:	Dave Wagner, Utilities Director
Date:	October 2, 2007
RE:	Resolution 6743 6^th and Stoneridge Elevated Storage Tank Water transmission main from Kaw Plant to SE Lawrence

Please include the following item on the City Commission consent agenda for consideration at the October 9, 2007 meeting:

Project Description There are two projects included in the 2007 Water and Sewer capital improvement budget that will need to be financed with revenue bond proceeds. The elevated water storage tank at 6^th and Stoneridge Drive is currently being designed. Proposals to design a water transmission from the Kaw Plant to southeast Lawrence were received on October 1st.

Project Status The storage tank design is 90% complete and the project is expected to be bid in December 2007. Construction of the water main should begin in 2008.

Project Details

Stoneridge Drive Elevated Water Storage Tank – The 2003 Water Master Plan recommended additional water storage volume be provided by to increase the reliability of water supply in the West Hills Service Area, ensure capacity for peak demands for future growth, and provide water storage for fire suppression. Based on the 2003 Water Master Plan and additional system evaluations the design and construction of a 1.5 million gallon elevated storage tank has been recommended to provide additional distribution system storage. The base of the tank will provide space for the future construction of a booster pumping station to accommodate water demands west of K10.

Kaw Water Treatment Plant Transmission Main - The 2003 Water Master Plan recommended the construction of a second water transmission main from the Kaw Water Treatment Plant to approximately 19^th & Harper. Based on the results of Professional Engineering Consultants’ additional evaluation of the Master Plan’s proposed treated water transmission main project an alternative alignment which travels north from the Kaw WTP around the northeast area of North Lawrence and back south to 23^rd and O’Connell Road has been recommended. The phased design and construction of the proposed improvements are identified as Route A on the attached exhibit. These improvements will provide increased ability and reliability for the pumping of treated water from the Kaw Water Treatment Plant to the southeast area of Lawrence, including increased service for RWD4 and Baldwin. The recommended improvements in Route A also provide additional water transmission connections and capacity to the North Lawrence area and the former Farmland property.

Project Funding The elevated water storage tank was budgeted in the 2007 CIP at $2,300,000. The current estimate of the design and construction of the storage tank is over $3,540,000. The total estimated cost of the water transmission main is over $18.6 million and will be constructed in phases over a four year period of time. It is requested that both projects be funded with revenue bond proceeds. The next revenue bond issue is scheduled for May of 2008.

Action Requested Adopt Resolution No. 6743 authorizing the issuance of water and sewer revenue bonds in the amount of $23.6 million for two projects describe above. This is approximately $1 million more than has been included in the Capital Improvement Budget.