Memorandum
City of Lawrence
Utilities Department
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TO: |
Thomas M. Markus, City Manager Diane Stoddard, Assistant City Manager Casey Toomay, Assistant City Manager |
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FROM: |
Beth Krishtalka, Assistant to Utilities Director |
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CC: |
Dave Wagner, Director of Utilities Mike Lawless, Deputy Utilities Director Philip Ciesielski, Assistant Utilities Director Bryan Kidney, Finance Director |
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Date: |
April 20 , 2016 |
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RE: |
Resolution No. 7155 Authorizing Water & Wastewater CIP Financing |
Background
Staff proposes revenue bond financing for water and wastewater projects included in the capital improvement master plans reviewed by the City Commission on March 12, 2013. Bond repayments will be made from water and wastewater fund revenues. An estimated $3.0 million in cash may also be used to finance 2016 and 2017 projects. The projects include some or all of the following activities: study, design, property acquisition, construction, and construction services. All of these projects were included in the 2016-2017 rates approved by the City Commission in 2016. Several projects, such as the Wastewater Treatment Plant items, were previously authorized by financing actions, but those are being consolidated with this authorizing resolution. Additionally, it should be noted that all projects will require further steps and contracts that will be considered by the City Commission.
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Water & Wastewater Revenue Bonds Financing |
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Project Description |
Series 2016 Bonded Projects |
Series 2017 Bonded Projects |
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Water |
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General Improvements to Clinton & Kaw Water Treatment Plants |
$ 4,600,000 |
$ - |
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General Improvements to Water Storage & Pumping Stations |
$ 5,650,000 |
$ - |
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Watermain Assessment, Relocation, Rehabilitation, Replacement & Extension |
$ 2,940,000 |
$ 1,400,000 |
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Subtotal Water Per Year |
$ 13,190,000 |
$ 1,400,000 |
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Wastewater |
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General Improvements to Kansas River & Wakarusa River Wastewater Treatment Plants |
$ 400,000 |
$ 200,000 |
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New Wakarusa WWTP, Influent Pump Station, and Force Mains |
$ 23,100,000 |
$ 4,900,000 |
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Rapid Inflow/Infiltration Reduction Program |
$ 4,610,000 |
$ 2,190,000 |
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Sanitary Sewer/Manhole Assessment, CIPP, Relocation, Rehabilitation, Replacement & Extension |
$ 700,000 |
$ 100,000 |
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Subtotal Wastewater Per Year |
$ 28,810,000 |
$ 7,390,000 |
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Combined Water/Wastewater Subtotal Per Year |
$ 42,000,000 |
$ 8,790,000 |
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Combined Total for Both Years |
$50,790,000 |
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In addition to the above project financing, issuance costs and a debt service reserve need to be included in the authorization. Staff recommends City Commission adopt Resolution No. 7155, authorizing the total amount of $61,000,000 combined for 2016 and 2017 to fund water and wastewater master plan projects, pay for issuance costs, and establish a debt service reserve fund.
The Resolution must be published and a 15-day protest period must expire prior to the execution of any construction agreements to begin the projects.
Action
Adopt Resolution No. 7155, authorizing the amount of $61,000,000 to fund water and wastewater master plan projects, pay for issuance costs, and establish a debt service reserve fund.