Water & Sewer Condition & Operations 1966-1967
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SALINA, KANSAS
Water and Sewerage System
CONDITION AND OPERATIONS REPORT
1966 - 1967
WILSON
~ COM PANY
I ENGINEERS i
, ARCHITECTS I
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OCTOBER 1966
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SALINA, KANSAS
WATER AND SEWERAGE SYSTEM
CONDITION AND OPERATIONS REPORT
1966-1967
* * * * *
G. N. Waddell, Mayor
Commissioners
Charles Casebeer
Ralph Exline
Carl Rundquist
Robert Stark
Norris Olson, City Manager
Harold F. Harper, City Engineer
Ron Webster, Director of Utilities
* * * * *
11LSON
COMPANY
ENGINeEIlS
ARCHITECTSf
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PURPOSE OF REPORT
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City of Salina Ordinance Number 6546, dated 13 July 1961, which provides
for the issuance of revenue bonds for the purpose of altering, improving,
extending and enlarging the municipal waterworks and sewerage systems,
contains, in part, the following requirements:
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Section 11 (e). "At least once in every two years the City's consulting
engineers hereinafter referred to in Section l5(d) of this ordinance,
after making their examination and report on the condition, operation,
and needs of the City's combined water and sewage system as provided
in said Section l5(d), shall, by written instrument filed in the office
of the City Clerk......, certify whether or not in their opinion, the
moneys in the "Combined Water and Sewage System Extension and Bond
Ret irement Account" are in excess of the amount reasonably required to
be maintained in such account for extending, improving or enlarging
the City's combined water and sewage system, and, if so, the amount of
such excess."
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Section 15 (d). "At least once in every two years the City will employ
an independent consulting engineer or firm of consulting engineers
having a reputation for knowledge, skill and experience in the con-
struction and operation of municipal water and sewage systems and will
cause such consulting engineer or engineers to make an examination and
report on the condition and operation of the City's combined water and
sewage system, such report to include recommendations as to any changes
in such operation deemed desirable. Such report shall also make reference
to any unusual or extraordinary items of maintenance and repair and any
improvements or extensions that may be needed in the ensuing two-year
period."
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The first such report was prepared in 1964 and this is the second report.
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1961 BOND ISSUE
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On 13 July 1961, the City of Salina, Kansas authorized the issuance of
$3,600,000 in Revenue Bonds, the proceeds to be used to refund the
principal amounts of two previous outstanding bond issues and "for the
purpose of altering, improving, extending and enlarging the waterworks
of said City......and for the purpose of altering, improving, extending
and enlarging the sanitary sewer system of said City (said waterworks
and said sanitary sewer system now having been combined into a combined
water and sewage system of said City)".
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The 1961 Bond Issue was supplemented by a $250,000 Federal grant to
assist in the construction of improvements to the sewage treatment
plant. The funds available for improvements to the water and sewerage
system after refunding previous bond issues were as follows:
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$3,600,000
250,000
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1961 Bond Issue
Federal Grant
Total Funds Available for all Purposes
$3,850,000
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Previous Bond Issues Refunding
1,182,000
Total Funds Available for Improvements $2,668,000
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1961 BOND ISSUE EXPENDITURES
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The following tabulation summarizes the expenditures for improvements
to the combined water and sewerage system, such expenditures being
solely from the original bond issue. All improvements are in accord-
ance with recommendations of the City's Consulting Engineers and of
the City Engineer's Office.
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Key Acres Elevated Water Tower
North Front Street Water Main
South Fourth Street Water Main
Water Treatment Plant Improvements
Sanitary Sewer Trunk Mains
Sewage Treatment Plant Improvements
Purchase of System Materials and
Minor System Improvements
Planning and Engineering
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$120,005
38,390
23,060
566,956
573,018
859,092
237,602
51,450
As of 31 December 1965, $198,426.81 remained in the Water and Sewage
Revenue Bond Proceeds Fund.
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SYSTEM IMPROVEMENTS
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While the closing of Schilling Air Force Base reduced the total number
of accounts, the need for expanding water and sewerage service to newly
developing commercial and industrial areas, the proposed incorporation
of the former Air Base water system into the City's water system and the
necessity to provide better service within the present system require
a continued program of system improvements. A number of the improvements
were recommended in earlier Consulting Engineers' studies and reports
and some are required by more recent developments.
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Among the earlier recommendations still to be implemented in the sewerage
system are the Wayne Street Relief Main and the installation of variable
speed pumping equipment in two major sewage pumping stations. A number
of additional water main improvements were incorporated in a Consulting
Engineers' report of 1963; however, the service area has expanded so
rapidly in the last two years that it is recommended that another system
analysis be undertaken before major water system improvements are
considered for construction.
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There is a continuing program of city participation in the construction of
subdivision extensions of the water and sewerage system to pay the increased
cost of enlarging mains as required by overall master planning.
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The following tabulation indicates
improvements to the combined water
the years 1966 and 1967.
the amount and division of costs of
and sewerage system anticipated for
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Proposed Expenditure
Amount
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North Ninth Street Benefit District
Revision to Water Supply Dams in the
Smoky Hill River
City's Portion of Cost of Sewer to South
Industrial Area and Westinghouse Lamp Plant
Water Line to South Industrial Area,
West inghouse Lamp Plant and Schill ing Air
Force Base
City's Portion of Cost of Water Line to
Elks Country Club
General Water System Improvements
Wayne Street Relief Main Sewer
Sewage Pumping Station Revisions
Estimated City's Portion of Benefit Districts
$10,000
5,500
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56,000
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121,500
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6,000
26,000
35,000
20,000
30,000
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$310,000
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The committed expenditure for the first five items will exhaust the
remainder of the 1961 Revenue Bond Proceeds Fund of $198,426.81
available as of 1 January 1966. Any additional expenditures must
come from revenue income.
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Another water main improvement which may be required in the near future
and one which has not been programed is a reinforcement main on South
Ohio Street from Republic Street to Cloud Street. It would be well to
determine the size of this line in a overall system analysis.
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An additional study is required to determine the feasibility and the
economics of disposing of that portion of the water softening plant
sludge which is now being discharged into the Smoky Hill River and/or
the sewerage system.
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REVENUE
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Revenue is derived principally from a water rate schedule and a sewer
service charge schedule. Both schedules are based on customer usage.
The sewer service charge schedule was established at the time the
water and sewerage departments were combined, there having been no
previous direct charge for this service. The sewer service charge
schedule has been revised on several occasions, primarily to establish
equitable rates for special cases. The water rate schedule has remained
unchanged. The excess of total revenue over operating expenditures
(not including the bond issue debt service, reserve requirements and
capital improvements), compared to the amount estimated by First
Securities Company in their "1961 Financial Feasibility Report", is as
follows:
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1961 1962 1963 1964 1965
Actual Balance $411,625 $514,197 $456,503 $421,609 $345,014
Estimated by
First Securities* $377 ,949 $377 ,949 $377 , 949 $377 ,949 $377 ,949
*25 Year Average
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With exception of 1965, the actual balance has been in excess of that
estimated and revenues appear to be adequate. It should be pointed
out that the first several years of operation of the combined system
were during near drought conditions and water sales were relatively
high.
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The closing of Schilling Air Force Base in 1964-1965 produced a marked
effect upon the number of customers served by the municipal water and
sewerage systems and upon the revenue derived. The Base closing was
responsible for the loss of approximately 4,000 residents of the City
and approximately 1,700 water and sewer accounts. The following chart
indicates graphically the number of accounts and total revenue derived
on a month-by-month basis.
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City Ordinance No. 6546 requires that the City "maintain and collect
rates, fees and charges for the use of or services rendered by its
combined water and sewage system which will be sufficient to enable
the City to have in each fiscal year a net operating income from such
system in an amount that will be at least one hundred thirty-five
percent (135%) of the amount required to be paid by the City in such
year on account of both principal of and interest on the bonds herein
authorized at the time outstanding."
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The following table indicates the Water and Sewer Department income
position as compared to the requirement above:
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1961 1962 1963 1964 1965
Net Operating Income $411,625 $514,197 $456,503 $421,609 $345,014
Principal and
Interest Payments $107,242 $248,624 $234,270 $231,318 $228,965
Ratio, in percent * 207 195 182 151
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*Not a full year of operation
The required ratio of 135 percent has been exceeded through 1965.
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80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
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~~ATER REVENUE . I
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THOUSANDS OF DOLLARS I
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( ~THOUSANDS OF DOLLARS .I '. /
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-- ,/,...................................... ------ - ---. .-- -_-- - - -. _ _1____ -- -- -- ---- .......-,/'---.............------... -------- - - - -------- - --- _0__0___
""'..-------.. ----..............-........,
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~ACTIVE ACCOUNTS
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1961
1962
1963
1964
1965
1966
YEA R
SALINA, KANSAS
WATER AND SEWER
ACCOUNTS AND REVENUE
66-95
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CASH FUND ACCOUNTS
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As of 31 December 1965, the Treasury and Operating and Maintenance
Account, the Bond and Interest Account, the Bond Reserve Account and
the Depreciation and Emergency Account are at or above the levels
required by the Bond Ordinance and as required by good management prac-
tices. The total transfer to the Extension and Bond Retirement Account
has been $85,000. (This amount has increased to $90,893 due to interest
received on the invested funds).
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At the current rate of revenue production and with the program of
planned expenditures, there will be no excess monies for the 1966-1967
period in the Extension and Bond Redemption account beyond the amount
reasonably required to be maintained in such account for extending,
improving or enlarging the City's combined water and sewerage system.
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In 1965 the reserve accounts "Bond Reserve" and "Depreciation and
Emergency" reached the minimum amounts required by ordinance. Therefore,
the $102,000 per year that has been required to be transferred from
revenue to those accounts may now be transferred to the Extension and
Bond Retirement account and be available for system improvements.
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A summary of the Cash Fund Accounts follows:
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SUMMARY OF CASH FUND ACCOUNTS
Treasury and
Operat ing and
Maintenance
Extension
and Bond
Retirement
Bond and
Interest
Bond
Reserve
Depreciation
and Bnergency
Bond Proceed s
Fund
Balance, 12/31/61 $ 82,898 $107,243 $ 24,000 $ 10,000 $2,296,384*
Required by Ordinance 100,168 18,000 7,500
Balance, 12/31/62 $ 96,453 $105,498 $ 96,000 $ 67,500 $85,000 $1,656,562*
Required by Ordinance 97,613 90,000 37,500
Balance, 12/31/63 $127,797 $118,126 $169,500 $106,250 $85,000 $ 509,687*
Required by Ordinance 96,258 162,000 67,500
Balance, 12/31/64 $164,594 $124,008 $244,851 $129,460 $87,777 $ 242,621*
Required by Ordinance 95,279 234,000 97,500
\0 12/31/65 $186,109 $116,242 $304,583** $134,048** $90,893 $ 198,427*
Balance,
Required by Ordinance 92,988 300,000 ~25,000
*Portions of these fund s encumbered by contract, to be paid in ensuing year.
**These funds accumulated to the amounts required by ordinance; no further
payments into these funds from revenue required as long as they remain at
or greater than the sum required.
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OPERATIONS AND MAINTENANCE
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A survey of the operat ions of the combined water and sewerage department
was conducted. The survey concluded on-site inspections, examination
of records and reports, and interviews with department personnel.
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The combined water and sewerage department is well equipped to perform
the required services to the community. Maintenance, in general, is
routine in nature and is accomplished according to schedule and with
reasonable dispatch. The purchase and operation of an extremely
efficient sewer cleaning machine has enabled sewer maintenance
personnel to undertake an extensive program of preventative maintenance.
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The combined water and sewerage department is exceptionally well
managed and operated. Administrative personnel are knowledgeable and
operate a business-like, efficient public utility.
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In the course of interviews with department personrlel, several matters
were discussed which appear to merit consideration for further study
and for action.
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1. In billing water accounts, a number of cases have arisen
where a single owner may have two or more water meters serving a
structure, a complex of buildings or several scattered buildings.
The present ordinances governing the water consumption billing
procedures do not stipulate a specific method for computing the
charges for such cases. The provide the necessary administrative
authority for computing these charges, it would appear that Section
30-119, Consumers, of the City Code should be revised, particularly
the second definition where the term "in a common enclosure" can
be interpreted in many different ways. It is recommended that
the revision provide that:
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a. The water consumption, as shown by multiple meters serving
a single structure or a group of structures having single
plumbing system, be combined for purposes of computing charges.
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b. All single meter installations be computed for billing
on an individual basis.
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2. The present rate schedules for both water consumption and
sewer service charges provide for accounts for those customers
outside the corporate limits of the City. The present schedules
require a double minimum and that the regular schedule of charges
be increased by 25 percent when computing the billing for such
accounts. On the basis of present detailed analyses in other
communities, it has been determined that a more equitable schedule
would be approximately twice the in-city rate. It is recommended
that a detailed analysis be undertaken to determine the adequecy
of present charges to customers outside the corporate limits.
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3. Since 1963, a continuing study has been conducted of the
water supply wells, all located within the urban area, to
determine the extent of organic matter contained in the water
obtained from these sources. The analytical method being used is
the Carbon Chloroform Extraction of Dissolved Organics procedure
as suggested by the Public Health Service. This procedure is
relatively new and much is yet to be learned of the technique
and the interpretation of the results. However, the results to
date indicate that the existing well field is producing water
with dissolved organic content in excess of the Public Health
Service suggested limit for public water supplies. It is suggested
that studies and surveillance be continued to determine the scope
and the implications of dissolved organics in the well water supply.
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CONCLUSIONS
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The results of this study and examination indicate that, as of 31
December 1965, the funds in the Extension and Bond Retirement Account
as shown in the Summary of Cash Funds Ac~ount table are not in excess
of the amount reasonably required to be maintained in such account for
extending, improving or enlarging the combined water and sewerage
system of the City of Salina, Kansas. While the closing of Schilling
Air Force Base materially reduced the total number of accounts, this
situation is believed to be temporary, and no change in the rate
structures appears to be desirable for the 1966-1967 period, The
reserve accounts "Bond Reserve" and "Depreciation and Emergency" have
reached the minimum limit set by ordinance, Thus, $102,000 per year
previously required for transfer from revenue to those accounts may
now be used for system improvements.
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The review of the condition and operation of the combined water and
sewerage system indicates that the system is operated in a satisfactory
manner and that the condition, in general, is good. However, recent
and contemplated expansions of the water works system are so extensive
that a review and updating of the system analysis should be performed
to determine the need for and the location and size required of new
feeder mains and other system improvements.
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The following is a summary of recommendations and suggestions in
regard to the operation of the combined water and sewerage system:
1. A review and updating of the water system analysis.
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2. A study to determine the feasibility and economics of
disposing of water softening plant sludge.
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3. Consideration of adopting a specific method of computing
charges for those accounts having multiple meter installation.
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4. A review of the charges assessed to those accounts outside
the corporate limits.
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5. Continued study and surveillance of the amount of dissolved
organics in the well water supply.
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