Memorandum

City of Lawrence

TO:	Mayor and City Commission
FROM:	City Manager David L. Corliss
C:
Date:	December 1, 2011
RE:	Bowersock Dam proposal

Attached is a revised request from the Bowersock Mill and Power Co. concerning their desire for City financial participation in continuing dam improvements along the Kansas River.    The City-Bowersock agreement includes provisions placing dam maintenance responsibilities on the City of Lawrence along with financial participation for maintenance of the existing flashboard system.   These agreements will need to be modified if the City Commission approves the Bowersock request.

This request from Bowersock came after the City had completed its Utilities Department budget for 2012 and after rate increases for needed capital improvements where already approved. The City had not budgeted funds for these improvements and the City’s current water rate structure does not include this capital improvement in the current rates.  The revised proposal provides for a multi-year payment to Bowersock for these improvements.   This will allow for either a rate increase in 2013 or a reduction in other capital improvements to the City’s water system in order to provide funds for these improvements.   The City does benefit from the dam for the City’s water intake along the Kansas River.  The City Commission has previously authorized additional study and capital improvements to improve raw water intake for the Kaw River Water Treatment plant.   This study and capital improvements will be undertaken in the coming months.