Memorandum

City of Lawrence

Utilities Department

TO:	David L. Corliss, City Manager Cynthia Boecker, Assistant City Manager Diane Stoddard, Assistant City Manager
FROM:	Philip E. Ciesielski, Assistant Director of Utilities
CC:	Dave Wagner, Director of Utilities, Mike Lawless, Assistant Director of Utilities Beth Krishtalka, Management Analyst
DATE:	May 27, 2009
RE:	June 2, 2009 Agenda Item – Downtown Sprinkler System Incentive Reimbursement – 746 Massachusetts

Please include the following item on the City Commission agenda for consideration at the June 2, 2009 meeting:

Approve reimbursement to Caspian Group, 746 Massachusetts (Tellers Restaurant), for costs associated with fire sprinkler system installation in the amount of $41,000.00 in accordance with the Downtown Sprinkler System Incentive program.

Program History:  The City Commission, at its June 6, 2006 meeting authorized a tap incentive to downtown building and business owners in the 700 and 800 blocks of Massachusetts Street.  In order to provide further incentive to downtown building and business owners, the City Commission allocated $250,000 in the 2007 and 2008 budgets to fund an incentive program that would reimburse property owners for 75% of the cost of installing full sprinkler systems, up to a maximum value calculated based on building characteristics, in selected downtown buildings.  The properties for the 2007/2008 program were approved by the City Commission on April 10, 2007. 

Program Status:  To date, nine of the approved downtown properties (including the one in this memo) have taken advantage of the incentives, and have been reimbursed a total of $235,268.40 as part of the program. 

746 Massachusetts Status:  Per the City Commission’s April 10, 2007 approval 746 Massachusetts was included in the Tier 1 properties authorized to receive the reimbursement incentive per the Downtown Sprinkler Incentive Program. The sprinkler system has been installed in 746 Massachusetts in compliance with NFPA-13 and City of Lawrence standards and is in operation.  A summary of the installation costs is attached. The maximum reimbursement as calculated based on the building characteristics is $41,000.00.

Project Funding:  The program is funded by the non-bonded water construction account of the Utilities Department.

Action Request: Approve reimbursement to Caspian Group, 746 Massachusetts (Tellers Restaurant), for costs associated with fire sprinkler system installation in the amount of $41,000.00 in accordance with the Downtown Sprinkler System Incentive program.