Memorandum
City of Lawrence
Utilities Department
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TO: |
David L. Corliss – City Manager Cynthia Wagner - Assistant City Manager Diane Stoddard - Assistant City Manager |
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FROM: |
Mike Lawless – Asst. Director of Utilities |
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CC: |
Dave Wagner – Director of Utilities Philip Ciesielski - Asst. Director of Utilities Ed Mullins, Finance Director |
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Date: |
July 27, 2010 |
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RE: |
Water & Sewer Revenue Bond Reallocation |
Please include the following item on the City Commission Agenda for consideration at the August 3, 2010 meeting:
Approve Resolution 6898 Authorizing Financing for Water and Sewer Capital Projects.
Project Description
The Utilities Department has identified five projects funded with revenue bonds that have unspent proceeds. The Department is recommending reallocation of the unspent proceeds to fund projects identified in the 2009 and 2010 Capital Improvement Program (CIP) that will be ready for construction later this year. The projects identified with unspent proceeds are listed in the table below.
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Project No. |
Description |
Estimated Bond Balance |
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2007 Bond Series |
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2CP205 |
Clinton Plant Expansion |
115,000.00 |
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CS0704 |
West Baldwin Creek Interceptor Sewer |
405,000.00 |
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UT0705 |
Four Seasons Wet Weather Basin |
1,690,000.00 |
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CS0707 |
Pump Station 25 and Force Main Upgrade |
300,000.00 |
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Sub-total 2007 Series |
2,510,000.00 |
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2008 Bond Series |
|||||
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6CP906 |
Stoneridge Tank |
335,000.00 |
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Sub-total 2008 Series |
335,000.00 |
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Estimated Bond Funding Available |
2,845,000.00 |
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The Utilities Department has identified one previously approved project in the 2009 CIP that requires additional funding and three new projects in the 2010 CIP that could be funded by reallocating the bond proceeds. Reallocation of the bond proceeds will provide the necessary funding for all bonded projects in the 2010 CIP with no new revenue bonds needed.
Before the bond proceeds mentioned above can be reallocated, the new projects identified for funding must be authorized for financing by resolution. Staff has prepared resolution 6898 authorizing financing for water and sewer capital projects in the 2010 CIP. After the required 15 day protest period, a second resolution authorizing the reallocation of the bond proceeds will be presented for Commission consideration.
The projects to receive the reallocated bond funds are described below. Projects 2, 3 and 4 are the bond projects identified in the 2010 CIP.
1. Project WW0601: Anaerobic Digester at the WWTP - $410,000
This 2009 CIP project, authorized by the City Commission for design, involves converting an existing storage tank into a third anaerobic digester vessel and modifying the gas control building/equipment to allow processing additional digester gas.
2. Project UT0810DS: 2010 Water Line Rehabilitation and Replacement Program - $1,135,000
This project includes replacement of the existing watermains along 9th Street from Vermont Street to Tennessee Street and along Tennessee Street across the 9th Street right-of-way. It also includes replacement of the existing watermains along Kentucky Street from 12th Street to 19th Street and the watermain on Engle Road south of 15th Street. This project has not been authorized for design.
3. Sanitary Sewer Reconstruction - $650,000
a. Project UT0905CS: 15th & New Hampshire and 11th & Delaware - $525,000
The existing sewer lines servicing both the 1100 block of Delaware Street and the 1500 block of New Hampshire consist of 6 inch diameter vitrified clay pipe and have been in service for over 70 years. The project will include the installation of approximately 890 linear feet of sanitary sewer line servicing the 1100 block of Delaware Street and approximately 670 linear feet of sanitary sewer line servicing the 1500 block of New Hampshire Street. This project has been authorized for design by the City Commission.
b. Project UT0702CS: 8th & Michigan - $125,000
The project will construct approximately 180 feet of 12 inch relief sewer, 35 feet of 8 inch relief sewer and about 2,200 feet of Cured-In-Place-Pipe lining on Michigan Street and Arkansas between 6th & 8th Street to help reduce sanitary sewer overflows. The project was designed by Utilities staff and is ready for City Commission authorization for construction upon approval of the bond reallocation.
4. Motor Control Center (MCC) Replacement - $650,000
a. Clinton Water Treatment Plant MCC Replacement - $500,000
The Motor Control Centers, (MCC) located at the Clinton Water Treatment Plant, are over thirty years old and replacement parts for the MCC’s are no longer available. The Motor Control Center is essential, as it receives the incoming electrical feed and distributes 480 Volt AC power to the major components in the plant including Pumping and Chemical Feeds. This project has not been authorized for design.
b. Pump Station PS 5 – MCC Replacement - $150,000
The Motor Control Center (MCC) in Pump Station 5 A was installed in 1966 and replacement parts are no longer available. The Motor Control Center is essential, as it takes the incoming electrical feed and distributes 480 Volt AC power to the pumps in this structure. This project has not been authorized for design.
Action Request: Staff recommends approval of Resolution 6898 Authorizing Financing for Water and Sewer Capital Projects.
Thank you for your assistance. Please advise if you have any questions.