Memorandum

Utilities Department

 

TO:

Dave Corliss, City Manager

Cynthia Boecker, Assistant City Manager

Diane Stoddard, Assistant City Manager

FROM:

Mike Lawless, Assistant Director of Utilities

CC:

Dave Wagner, Director of Utilities

Philip Ciesielski, Assistant Director of Utilities

Beth Frailey Krishtalka, Management Analyst

DATE:

August 13, 2008

RE:

2009 Water and Sewer Rates and System Development Charges

 

The 2009 water and sewer rates are based on analyses of the projected cost of services, updated project timing and cost estimates, and recent consultations with Black & Veatch. The Utilities Department has experienced cost increases in a number of areas this year including capital projects, commodities such as fuel, chemicals and energy and the parts used throughout the facilities because of raw material price increases such as stainless steel and copper.  In addition, the Utilities Department has numerous Capital Improvement Program (CIP) projects currently in progress. For 2009 several major CIP projects are planned with the main emphasis placed on maintaining our existing infrastructure.

 

Projects currently in progress are:

 

  1. Clinton Reservoir Water Treatment Plant Expansion - $17.6 million
  2. Stoneridge Water Tower - $2.94 million
  3. Bowersock Dam Renovations - $1.17 million
  4. Kaw Water Supply Transmission Main Design - $1.13 million
  5. East Hill Pump Station #25 Upgrade - $3.40 million
  6. West Baldwin Creek Sanitary Sewer Interceptor - $3.20 million
  7. Southeast Area Sanitary Sewer Benefit District - $0.60 million

 

For 2009 the projects include:

 

  1. Raw Water Intake at the Kaw Water Treatment Plant (KWTP) – Currently there is only one raw water intake at the KWTP and it has been in service beyond the average age at which the three previous intake structures failed. The estimated cost to provide a redundant raw water intake structure is $6.6 million.

 

  1. Anaerobic Digester Improvements – This project is needed to meet regulatory and system reliability needs for the WWTP to be capable of treating wastewater for a population of 110,000 persons. It will convert the existing anaerobic storage tanks to a secondary digester with gas mixers and a floating cover. It will expand the gas control building and upgrade the digester SCADA system to current Department standards. The project cost is estimated at $5.0 million.

 

  1. Four Seasons Wet Weather Storage – This project is critical to relieving collection system capacity issues and continuation of development along the 31st Street corridor. It will expand the wet weather storage capacity at Pump Station #9 located west of 31st and Kasold by 2.5 million gallons. The project cost is estimated at $3.5 million.

 

  1. Water system maintenance projects include the Waterline Rehabilitation and Replacement Program, Water System Maintenance and Waterline Relocations totaling $3.4 million.

 

  1. Sewer system maintenance projects include I & I Removal, Wastewater System Maintenance, Wastewater Treatment Plant Maintenance, Pump Station Maintenance and Sanitary Sewer Relocations totaling $2.6 million.

 

The proposed 2009 water and sewer rates would increase residential customers monthly charge by a combined 3.2% to 4.8% depending on the volume of water used. Multifamily customers would have increases ranging from a combined 2.7% to 4.8% while commercial and industrial customers would have combined increases of 3.9% and 2.9% respectively. These increases are for customers that are inside the city limits. The wholesale water customers would have a water rate increase of 16.1%.

 

The attached table provides a comparison of the existing rates to the proposed rates for water, sewer and system development charges. To provide a comparison of typical monthly charges under existing and proposed water and sewer rates, the following table is included.

 

The graph below shows the water use distribution for residential customers. As you can see, the largest percentage of residential customers use between 3,000 and 4,000 gallons per month. The proposed 2009 water and sewer rates would increase the monthly bill by $1.31 and $1.56 respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recommended Action: Staff recommends approval of the 2009 Water and Sewer Rates and the System Development Charges.