Memorandum
City of Lawrence
Finance Department
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TO: |
Dave Corliss – City Manager |
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FROM:
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Ed Mullins – Finance Director
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CC: |
Dave Wagner – Director of Utilities Mike Lawless – Asst. Director of Utilities Philip Ciesielski – Asst. Director of Utilities
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Date: |
March 19, 2013 |
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RE: |
Resolution No. 7019 Authorizing Water & Sewer Financing for 2013 CIP Projects |
Background
The water and wastewater projects below were included in the water and wastewater master plans reviewed by the City Commission on March 12, 2013. They include all projects except the O’Connell Road Waterline Project (under construction) and the Bowersock Dam Improvements (payment made). It is anticipated that the majority of the projects will be financed with a revenue bond to be repaid with revenues from the water and wastewater fund. An estimated $2.0 million in cash will also be used to finance 2013 projects.
The projects will include some or all of the following activities study, design, property acquisition, construction, and construction services.
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Water Projects |
2013 |
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Kaw WTP: Supply Improvements |
$4,770,500 |
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Oread Storage & Booster Pump Station Rehabilitation and/or Replacement |
$3,952,600 |
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Water Tower Maintenance and Booster Pump Station Improvements |
$1,664,000 |
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Kaw Water Transmission Main |
$7,836,400 |
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Waterline Assessment, Relocation, Rehabilitation, and Replacement |
$5,292,100 |
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Kaw WTP: Structural, Mechanical, Electrical, & Process Improvements |
$1,535,000 |
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Total: |
$25,050,600 |
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Wastewater Projects |
2013 |
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New Wakarusa WWTP, Influent Pump Station, and Force Mains (Authorized by Resolution 6717) |
$5,707,000 |
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Kaw WWTP: Co-generation & Backup Power Improvements |
$1,081,600 |
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Rapid Inflow/Infiltration Reduction Program |
$1,872,000 |
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Sanitary Sewer Relocation, Rehabilitation, Replacement, and Relief Sewers |
$1,416,000 |
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Pump Station and Force Main Improvements |
$1,140,000 |
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Total (excluding Wakarusa WWTP): |
$5,509,600 |
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Grand Total: |
$30,560,200 |
Recommendation
Financing for the Wakarusa wastewater treatment plant was previously authorized by Resolution No. 6717. The 2013 estimated cost for the project is $5.7 million is not included in this resolution, but will be included in the 2013 debt issue. In addition to the project costs above, the City will need to an estimated $350,000 in issuance cost and will need to fund a 10% debt service reserve. As a result, it is recommended that the City Commission approve Resolution No. 7019, authorizing the amount of $35,200,000 to fund the 2013 projects in the water and wastewater master plans, pay for issuance costs, and establish a debt service reserve fund. It is also recommended that the City issue one year General Obligation temporary notes to initially fund the projects. The notes will then be permanently financed with water and sewer revenue bonds.
The Resolution must be published and a fifteen day protest period must expire prior to the execution of any construction agreements to begin the projects.