Water & Sewer Condition & Operations 1968-1969
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SALINA, KANSAS
Water and Sewera~e System
CONDITION AND OPERATIONS REPORT
FOR THE YEARS 1968 & 1969
WITH RECOMMENDATIONS FOR 1970 & 1971
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COMPANY
ENGINEERS
ARCHITECTS t
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APRIL 1970
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SALINA, Kl'.NSAS
WATER AND SEI'JERT\GE SYSTEM
CONDITION AND OPERATIONS REPORT
FOR THE YEARS 1968 & 1969
WITH RECO~1ENDATIONS FOR 1970 & 1971
* * * * *
Donald D. Millikan, Mayor
Commissioners
Leon L. Ashton
Robert C. Caldwell
Carl R. Rundquist
William 1,'1. Yost
Norris Olson, City Manager
Ron Webster, Director of utilities
* * * * *
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COMPANY
E.HGIN EERS
ARCHITECTS t
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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 tvlO years the City's consulting
engineers hereinafter referred to in Section 15(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 15(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
Retirement 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, the second in 1966, and the
third in 1968, this is the fourth 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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1961 Bond Issue
Federal Grant
$3,600,000
250,000
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Total Funds Available for all Purposes
$3,850,000
Previous Bond Issues Refunding
1,182,000
Total Funds Available for Improvements
$2,668,000
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1961 BOND ISSUE EXPENDITURES
The following tabulation summarizes the expenditures for improvements to
the combined water and sewerage system, such expenditures being solely
from the original bond issue, Federal Grant and investment income. All
improvements are in accordance with recommendations of the City's Con-
sulting Engineers and of the City Engineer's Office.
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Key Acres Elevated Water Tower
North Front Street Water Main
South Fourth Street Water Main
Water Treatment Plant Improvements
Sanitary Sewer Trunk Mains
Sewage Treatment Plant Improvements
Purchase of System Materials and
Minor System Improvements
Planning and Engineering
Water Main to Westinghouse
Water Main to Schilling
City-County Building, Water and Sewer
Services
South Industrial Area (Roberts Mfg.)
East North Street (Wyatt Mfg.)
Miscellaneous Extensions and Improvements
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TOTAL EXPENDITURES
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*Includes investment income.
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$ 120,005.00
38,390.00
23,060.00
566,956.00
573,018.00
859,092.00
237,602.00
51,450.00
75,000.00
49,603.00
36,028.42
15,702.29
19,589.68
2,497.09
$2,847,993.48*
\{hile the closing of Schilling Air Force Base reduced the total number of
accounts, the need for expanding water and sewer service to newly develop-
ing residential, commercial and industrial areas, the incorporation of the
former Air Base water and sewer systems into the City's systems and the
necessity to provide better service within the present system required a
continued program of system improvements. A number of earlier Consulting
Engineer's reports, particularly the distribution system study and report
of 1963 and the overall water study of October 1968, contained recommenda-
tions regarding major improvements needed in the water system. Many of
the recommendations were long range capital improvements and are being
constructed as funds become available. However, the service area has
expanded so rapidly and in such a complex manner that some of the 1963
recommendations are probably no longer valid.
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SYSTEM IMPROVEMENTS
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The 1968 "Salina Water Study" contained some recommendations in regard to
arterial mains which were in addition to those recommended in the 1963
report.
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The need for an updated water distribution system analysis is apparent.
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There is a continuing program of City participation in the construction of
subdivision extensions of the water and sewer system to pay the increased
cost of enlarging mains as required by the overall master planning and of
constructing facilities normally paid for by the City at large.
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All of the facilities proposed for construction during 1968 and 1969 in
the last Conditions and Operations report have been completed, except
for the following:
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Wayne Street Relief Sewer
Ground Water Investigation
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1968 Budget Estimate
$ 35,000
35,000
The following tabulation describes and estimates the cost of improvements
to the combined water and sewerage system anticipated for the years 1970
and 1971.
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Proposed Construction
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Wayne Street Relief Sewer
Ground Water Investigation
City's Portion of Benefit District Improvements
Update Water Distribution System Analysis
Water Plant Sludge Disposal Study
Procedure Manual for Water and Sewer Department
Billing Methods Study
Water Main, Pacific & Woodland to Euclid & Ninth,
12-inch
Water Main,
Water Main,
Water Main,
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Indian Rock
Cemetery to
S. Hwy. 81,
Park to Iron, 12-inch
Marymount, 24- and 20-inch
Wayne to Key, 12-inch
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Budget Estimate
of Cost
$ 55,000
40,000
60,000
8,000
4,000
2,500
1,000
55,000
34,000
79,000
46,000
$384,500
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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 Feasibili.ty Report," is as follows:
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Year
Actual Balance
Estimated by
First Securities*
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1961
1962
1963
1964
1965
1966
1967
1968
1969
$411,625
$514,197
$456,503
$421,609
$345,014
$339,345
$330,053
$304,604
$296,650
$377 , 949
$377 ,949
$377,949
$377 ,949
$377 , 949
$377 ,949
$377 , 949
$377,949
$377,949
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*25 Year Average
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During the first four years after the issuance of the revenue bonds the
actual balance was well in excess of that estimated. These were relatively
dry years and Schilling Air Force Base was operating at full strength.
In the last five years, however, the balances have dropped below the
estimated figures. This is traceable primarily to the fact that Schilling
Air Force Base closed and approximately 4,000 residents moved from Salina.
In addition, although the five years were not exceptionally "wet" years,
the rainfall was adequately spread through the growing season and there
were very few days when the temperature rose to 100 degrees or more.
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The conversion of Schilling to commercial, industrial and institutional
facilities and the construction and operation of the new Westinghouse
Fluorescent Lamp factory are bringing about substantial increases in
Salina's population and the number of water and sewer accounts. Sewer
revenues have become relatively stable.
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Plate No. 1 indicates graphically the number of accounts and the water and
sewer revenue on a month-by-month basis.
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I 80,000
I 70,000
I 60,000
I 50,000
I 40,000
I 30,000
I 20,000
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10,000
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~WATER REVENUE I I
THOUSANDS OF DOLLARS I \ I' ' \ I I
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......./ SEWER USE FEE \/. / .I
( ~THOUSANDS OF DOLLARS .I
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/',....................----..... 0..... .___. _......---__ _ _1____ ,---.. .. --- ...--._----...
" .....--------... " ,,'- -------.. -..........---- '. . ------------- ----- -- ---
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,--------- -.......--.........--...., .......-.. I ' --------"./
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~ACTIVE ACCOUNTS
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1961
1962
1963
1964
1965
YEA R
1966
1967
1968
1969
1970
SALINA, KANSAS
WATER AND SEWER
ACCOUNTS AND REVENUE
70-41
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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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*Not a full year of operation
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The required ratio of 135 percent has been exceeded through 1968, but in
1969 it was below the requirement.
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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 was increased to $250,412 during 1967
due to interest received on the invested funds and a transfer of funds
from the operating and maintenance fund. Expenditures from the fund for
extensions and improvements during 1968 and 1969 have reduced the balance
to $180,965.
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At the current rate of revenue production and with the program of planned
expenditures, there will be no excess moneys for the 1970-1971 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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A summary of the Cash Fund Accounts follows:
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SUMMARY OF CASH FUND ACCOUNTS
Treasury and Extension
Operating and Bond and Bond Depreciation and Bond Bond Proceeds
Maintenance Interest Reserve and Emergency Retirement 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
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Balance, 12/31/65 $186,109 $116,242 $304,583* $134,048 * $ 90,893 $ 198,427
Required by Ordinance 92,988 300,000 125,000
Balance, 12/31/66 $230,849 $103,085 $317,214* $139,518* $ 94,612 $ 123,427
Required by Ordinance 92,779 300,000 125,000
Balance, 12/31/67 $160,907 $ 99,128 $334,964* $147,401* $250,412 $ 73,817
Required by Ordinance 91,278 300,000 125,000
Balance, 12/31/68 $126,285 $104,913 $348,095* $154,946* $234,521 None
Required by Ordinance 91,222 300,000 125,000
Balance 12/31/69 $120,754 $104,629 $367,325* $163,442* $180,965 None
Required by Ordinance 91,748 300,000 125,000
*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, but interest from
the funds invested shall accumulate to the funds until bonds become callable.
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OPERATIONS AND MAINTENANCE
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A survey of the operations of the combined water and sewerage department
was conducted. The survey included 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.
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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 personnel, several matters
were discussed which appear to merit consideration for further study
and for action.
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1. Water Rates. Because the net annual revenue from the combined
water and sewer department is falling below the 135 percent ratio
to principal and interest payments, some adjustment in water rates
or sewer use fees will probably be required within the coming two-
year period. It is recommended that the water rate schedule be
examined to determine whether an across-the-board rate increase is
necessary, or if an adjustment in the higher-use step rates to
achieve a more equitable rate structure will return the desired
revenues.
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2. Billing Equipment and Methods. The present billing equipment
is now about 16 years old and is requiring considerable expenditures
for maintenance. It is recolnmended that the equipment and the
billing methods be thoroughly examined to determine if greater
efficiency can be obtained, either by replacement of the equipment
or by modification of the procedures.
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3. Procedure Manual. It is believed that a manual of uniform
procedures to be used in the water and sewer departments will
result in greater efficiency throughout the department. It is
recommended that this item be studied and that a procedures manua'
be prepared if its desirability is indicated by the study.
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4. Disposal of Water Plant Wastes. It is recommended that a
study be made to determine the most feasible and economical methods
of disposing of wastes from the water softening plant. Types of
structures and equipment should be determined and estimates made
of their construction and operating costs. It is suggested that
the waste disposal structures be designed so that they can be
incorpordted into facilities required for pretreatment of addi-
tional amounts of raw water from the Smoky Hill River.
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5. Long Range Water Supply. It is recommended that the long range
water supply requirements of the City of Salina be kept constantly
in mind whenever any water department improvements for the City are
planned or constructed. Conferences and negotiations with Federal
Agencies to'.vard the use of water from Kanopolis or Milford Reservoirs
should be continued. The ground water survey of the Smoky lIill
Valley, recommended in the "Salina Hater Study" should be undertaken
as soon as possible.
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6. Arterial Water Mains. It is recommended that the arterial
water mains proposed for construction within the next two years be
completed. These mains are required for the correction of flow
deficiencies in the extreme northern portion of the City, the high-
level areas east of the Smoky Hill River, and in the vicinity of
the proposed shopping center in the southwestern portions of the
City.
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7. Reinforcing Mains. The continuation of construction of water
distribution reinforcing mains recommended in earlier Engineering
reports should be encouraged.
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8. Monitoring Observation Well. The regular monitoring of
observation well water levels should be continued.
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9. Relief Sewer. Consideration should be given to the construction
of the Wayne Street Sanitary Sewer Relief Sewer in the southern por-
tion of the City. Existing pumping stations in the area are heavily
loaded and with increased residential and commercial development
in the southern areas of the City these stations will be taxed beyond
capacity. The Wayne Street Relief Sewer will divert a substantial
amount of the sewage flow to the large interceptor sewer east of
Ohio Street.
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The proposed improvement and study item for the period 1970-71 totals
$384,500 which exceeds the estimated funds available of $341,000
($180,965 in Extension and Bond Retirement Fund and $160,000 from
revenue for the period). Either some of the proposed improvements or
study items will have to be deferred or an adjustment in the water rate
schedule will be required. It is possible that increased water sales
may produce additional revenue, however it is doubtful that a net gain
in excess of $40,000 would be realized. It is recommended that a legal
review be undertaken to determine if the excess funds in the Bond Reserve
and the Extension and Bond Retirement Accounts may be used for system
improvements. If the excess funds in these two accounts cannot be used,
and if all of the projects recommended for the next tHO years are undertaken,
the balance in the Extension and Bond Retirement Fund will be exhausted by
the end of 1971.
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CONCLUSIONS
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The results of this study and examination indicate that, as of 31
December 1969, the funds in the Extension and Bond Retirement Account
as shown in the Summary of Cash Funds Account 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. The reserve accounts "Bond
Reserve" and "Depreciation and Emergency" have reached the minimum
limit set by ordinance.
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The review of the condition and operation of the combined water and
sewerage system indictes 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:
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It is recommended that, insofar as practicable, all of
the studies and improvements listed under "Operations
and Maintenance" be undertaken during the coming two-
year period.
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