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: CC: |
Dave Wagner – Director of Utilities Mike Lawless – Asst. Director of Utilities Ed Mullins – Finance Director Casey Toomay – Budget Manager |
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Philip Ciesielski – Asst. Director of Utilities |
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Date: |
February 28, 2013 |
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RE: |
Agenda Item – Utilities Master Plans, Capital Improvement Program, and Rate and System Development Charge Ordinances |
Please include the following item on the City Commission Agenda for consideration at the March 12, 2013 meeting:
1. Consider a Motion to Adopt the 2012 Water and Wastewater Master Plans.
2. Consider a Motion to Adopt the 2013 - 2017 Capital Improvement Program (CIP) for Scenario 5 - Taste, Odor, & Microtoxins.
3. Consider Adopting on First Reading, Ordinance No. 8846, Adopting the 2013 Water and Wastewater Rates.
4. Consider Adopting on First Reading, Ordinance No. 8847, Adopting the 2013 - 2017 Water and Wastewater System Development Charges (SDCs).
Background
At the February 12, 2013 Study Session, staff had a good discussion with the Commission while presenting the findings of the Water and Wastewater Master Plans, information on the Wakarusa and Kaw Wastewater Treatment Plants (WWTP), and seven CIP scenarios that partially or fully fund the identified needs in the Master Plans. The Commission directed that the materials be placed on a Commission Agenda in March and requested some additional information for discussion.
Discussion
The Commission asked for additional information on a typical monthly water and wastewater bill for the last 5-years and what would the reduction in peak flow at the Kaw WWTP be if the Wakarusa WWTP is not constructed.
The attached graph shows the typical water and wastewater monthly bill from 2008 to 2012 and the proposed water and wastewater monthly bill from 2013 to 2017. The table below provides the percentage of revenue increase for each year depicted in the graph.
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2008 |
2009 |
2010 |
2011 |
2012 |
Scenario 5 |
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2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
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Water |
6.0% |
12.0% |
10.0% |
0.0% |
2.0% |
5.0% |
6.0% |
8.0% |
8.0% |
6.0% |
3.0% |
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Wastewater |
6.0% |
0.0% |
0.0% |
0.0% |
2.0% |
3.0% |
3.0% |
4.0% |
6.0% |
7.0% |
6.0% |
The reduction in the peak flow at the Kaw WWTP is the same, from 81 MGD to 59 MGD, whether the Wakarusa WWTP and associated Pump Station 5C (PS 5C) are constructed or not constructed.
PS 5C serves two purposes. First, it sends dry weather flow to the Wakarusa WWTP. Second, it provides additional peak flow capacity for wet weather flows that exceed the capacity of PS 5A/5B preventing sewer overflows along the 31st Street corridor. If PS 5C is not constructed, the design storm peak flow rate exceeds the firm capacity of PS 5A/5B by 8.5 MGD. The sewer model estimates that about 4 million gallons would overflow the sewers upstream of PS 5A/5B.
Process
To implement the recommendations from the Master Plans, the Commission needs to complete a number of actions.
Adopting Scenario 5 provides for full implementation of the Taste, Odor, and Microtoxin improvements pending the outcome of the Taste and Odor Study. If the study recommendation is less than full implementation, the CIP and future rates will be adjusted accordingly.
Staff reports for the priority CIP projects follow this staff report.
Funding
In addition to the actions authorized, staff will begin to prepare the funding resolution and subsequent ordinance to support the revenue bonds for implementation of the 2013 CIP.
Recommendation
Staff recommends the Commission