Water & Sewer Condition & Operations 1972-1973
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SALINA, KANSAS
Water and Sewerage System
CONDITION AND OPERATIONS REPORT
FOR THE YEARS 1972 & 1973
WITH RECOMMENDATIONS FOR 1974 & 1975
mlLSON
COMPANY
ENGINEERS
ARCHITECTS t
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SALINA, KANSAS
WATER AND SEWERAGE SYSTEM
CONDITION AND OPERATIONS REPORT
FOR THE YEARS 1972 & 1973
WITH RECOMMENDATIONS FOR 1974 & 1975
* * * * *
W. M. Usher, Mayor
COIIUIlissioners
Mike Losik, Jr.
Robert C. Caldwell
Norma G. Cooper
Jack Weisgerber
Norris Olson, City Manager
Ron Webster, Director of Utilities
(74-75)
Wt ILSON
COMPANY
ENGINI!.E.RS
ARCHITECTS t
JUNE 1974
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TABLE OF CONTENTS
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Purpose of Report
1961 Bond Issue
1961 Bond Issue Expenditures
System Improvements
Revenue
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Plate 1 - Water and Sewer Department Annual Revenues
and Number of Accounts
Cash Fund Accounts
Summary of Cash Fund Accounts
Capital Improvement Program
Review of Earlier Recommendations
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Operations and Maintenance
Conclusions
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Page No.
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follows 5
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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 ll(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
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 l5(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 construction 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 four reports were prepared in 1964, 1966, 1968 and 1970. The
information required for the 1972 report, covering the years 1970 and
1971, was 'included in the Engineering Report entitled "Water Distribution
Study", dated August 1972. This is the sixth 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
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Total Funds Available for Improvements $2,668,000
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The funds have now been expended.
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1961 BOND ISSUE EXPENDITURES
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The following tabulation summarizes the expenditures for improvements to
the combined water and sewerage system, such expenditures being solely
from the original bond issue, Federal Grant and investment income. All
improvements are in accordance with recommendations of the City's Con-
sulting Engineers and of the City Engineer's Office.
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Key Acres Elevated Water Tower
North Front Street Water Main
South Fourth Street Water Main
Water Treatment Plant Improvements
Sanitary Sewer Trunk Mains
Sewage Treatment Plant Improvements
Purchase of System Materials and Minor
System Improvements
Planning and Engineering
Water Main to Westinghouse
Water Main to Schilling
City-County Building, Water and Sewer
Services
South Industrial Area (Roberts Mfg.)
East North Street (Wyatt Mfg.)
Miscellaneous Extensions and Improvements
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TOTAL EXPENDITURES
*Includes investment income.
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$
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*
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SYSTEM IMPROVEMENTS
The Conditions and Operations reports prepared in 1964, 1966, 1968 and 1970
each contained recommendations and budget estimates of cost for system
improvements deemed necessary during the ensuing two-year period. These
recommendations pertained principally to short-range improvements or to the
planning or first phase construction of long-range improvements.
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Long range water system improvements were studied in the Engineering Reports
prepared in 1968, 1970 and 1972.
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The 1968 report dealt principally with potential sources of water supply
over a 40-year period and included recommendations regarding future water
supply, treatment, transmission and distribution facilities.
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The 1970 report was limited to recommendations regarding the expansion of
the present water treatment plant and the collection and disposal of all
plant wastes.
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The 1972 report included a very comprehensive study and analysis of the
water distribution system, a recommended 5-year capital improvements program
for the water system and a financial study. As a result of this study,
the City Commission adopted an increased water rate schedule which was
placed in effect on 1 January 1973.
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The following tabulation lists the major capital improvement projects
constructed in 1971, 1972 and 1973 and describes and estimates the cost
of other improvements planned for 1974 and 1975.
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Proje~ts Constructed
Year
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1971
1972
1972
1972
1973
1973
Project
Gypsum Hill Water Main, 24-inch
Gypsum Hill Water Main, 24-inch
Lakewood Park Water Main, l2-inch
Water Distribution Study
South Ind. Park Water Main, l2-inch
Wayne Street Water Main, l2-inch
Cost
$72,336
14,165
25,504
9,500
21,957
18,628
Projects Proposed
1974
1974
1974
South Ind. Park Water Main, l2-inch
South Highway 81 Water Main
Repaint Two Elevated Tanks
7,957
12,857
18,000
It should be noted that a priority schedule of major capital improvements
to the water and power system has not been adopted by City Officials.
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No major capital improvements have been made to the sewerage system.
Numerous extensions of the sewage collection system have been made to
developing areas with the majority of costs assessed to benefit districts.
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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. A new water rate schedule was placed in effect on
1 January 1973. 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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Year
Actual Balance
Estimated by
First Securities*
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1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
$411,625
514,197
456,503
421,609
345,014
339,345
330,053
304,604
296,650
249,372
283,527
276,709
301,954
$377 , 949
377,949
377,949
377 , 949
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 nine years, however, the balances have dropped below the
estimated figures.
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The conversion of Schilling to commercial, industrial and institutional
facilities and the construction and operation of the new industries in
the South Industrial Area and elsewhere 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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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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EXPENSE ---y PLATE I
WATER AND SEWER DEP ARTMENT
/' AN NU AL REV ENU ES, EXPEN SES
// /' AND NUMBER OF ACCOUNTS.
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.......- - ---- 71t-75
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1300
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The following table indicates the Water and Sewer Department income
position as compared to the requirement above:
Principal
Sold Gross Total Operating & Interest Ratio
Year (M. Gal.) Income Expenses Income Payments (in Percent)
1961 1,376.8 $804,342 $507,604 $411,625 $107,242 *
1962 1,420.0 976,057 545,794 514,197 248,624 207.0
1963 1,434.7 960,374 726,104 456,503 234,270 195.0
1964 1,489.9 941,380 519,771 421,609 231,318 182.0
1965 1,260.3 848,321 503,307 345,014 228,965 151. 0
1966 1,422.3 869,145 529,800 339,345 223,458 152.0
1967 1,364.0 901,731 571,678 330,053 222,670 149.0
1968 1,552.0 950,135 645,531 304,604 219,215 139.0
1969 1,640.6 1,006,996 710,346 296,650 220,479 134.5
1970 1,748.0 1,031,720 782,348 249,372 216,574 115.1
1971 1,706.5 1,052,673 791,146 283,527 212,669 133.3
1972 1,644.4 1,034,939 758,230 276,709 213,770 129.4
1973 1,678.0 1,367,809 856,153 301,954 209,702 144.0
*Not a full year of operation
The required ratio of 135 percent was not maintained from 1969 through
1972, but, under the new water rate schedule, the 1973 ratio was satisfactory.
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The new water rate schedule, which was placed in effect on 1 January 1974,
was intended to increase water department revenues by 50 percent. Total
'vater revenue for 1973 was $965,013, which represents an increase of 53
percent over the water revenues of 1972. On the basis of revenue per
thousand gallons pumped, however, the increase amounted to 47.4 percent.
Water consumption during 1973 was somewhat less than would normally be
expected because rainfall for the year was far above normal.
Plate I indicates graphically the number of accounts and the Water and
Sewer Department revenues, operating expenses and debt service on an
annual basis since 1961.
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CASH FUND ACCOUNTS
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As of 31 December 1973, the Treasury and Operating and Maintenance Account,
the Bond 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 practices.
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The balance in the Extension and Bond Retirement Fund is $59,893.00, which
amount is not in excess of the funds reasonably required to be maintained
in the account for extending, improving or enlarging the City's combined
water and sewage system.
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During the past four years, all capital improvements made to the water
and sewage systems have been financed from system revenues supplemented by
withdrawals from the Extension and Bond Retirement Fund.
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Excess revenue above operation and maintenance expense and debt service
during 1974 and 1975 will be used to finance needed improvements to the
system, some of which were originally scheduled for earlier completion,
but have been deferred. It is not anticipated that the balance in the
Extension and Bond Retirement Fund, as of 31 December 1975, will be in
excess of the amount reasonably expected to be maintained in that fund.
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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
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
ex> 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
Balance 12/31/70 112,275 104,350 393,417* 175,567* 168,099 None
Required by Ordinance 88,498 300,000 125,000
Balance 12/31/71 83,975 104,350 424,334* 185,905* 106,273 None
Required by Ordinance 88,956 300,000 125,000
Balance 12/31/72 42,161 104,350 443,727* 174,861* 58,643 None
Required by Ordinance 87,264 300,000 125,000
Balance 12/31/73 77,170 104,350 463,427* 182,801 59,893 None
Required by Ordinance 84,703 300,000 125,000
*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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CAPITAL IMPROVEMENT PROGRAM
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The City of Salina has not been required to issue additional revenue bonds
for its combined Water and Sewage Department since the $3,600,000 issue
in 1961. All debt service, operating expenses and extensions and better-
ments in the system have been financed from water revenues and sewage service
charges.
The funds available for improvements had been declining for several years
following the closing of Schilling Air Force Base and it was necessary to
increase water rates at the beginning of 1973. Under the new rate schedule,
there was an increase of approximately $200,000 in available funds during
the year 1973, as shown by the following Table:
FUNDS AVAILABLE FOR CAPITAL IMPROVEMENTS
Year
1968
1969
1970
1971
1972
1973
ASSETS (CASH)
Water & Sewage
Treasurer
$103,655 $100,183 $ 47,450 $ 5,916 $(15,679) $213,993
Water & Sewerage
Operating Acct. 21,130 20,570 64,825 26,725 57,840 77,170
Ext. & Bond
Retirement Fund 3,187 1,359 6,164 (727) 58,643 59,893
TOTAL ASSETS $127,972 $122,112 $118,439 $ 31,914 $100,804 $351,056
LIABILITIES
Accounts Payable 17,288 14,539 44,533 21,096 14,411 64,716
BALANCE $110,684 $107,573 $ 73,906 $ 10,818 $ 86,393 $286,340
Total water and sewer department revenues must be evaluated when considering
the financing of some of the large-scale improvements that should be under-
taken at an early date. The use of and the availability of grants-in-aid
must also be considered in proposed capital improvement programs.
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REVIEW OF EARLIER RECOMMENDATIONS
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The Conditions and Operations report of 1970 contained recommendations
regarding nine items of improvement. These recommendations, and the action
that has been taken by the City are as follows:
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1. Water Rate Increase. A new water rate schedule, designed to
increase water revenues by 50% was placed in effect on 1 January 1973.
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2. Billing Equipment and Methods. New computer equipment has been
purchased and billing methods have been completely modernized.
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3. Procedure Manual. A new manual of uniform procedures has been
prepared and is being used.
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4. Disposal of Water Plant Wastes. An Engineering Study has been
prepared and approved by the City. At the present time, the improvement
project is awaiting cost sharing funds from EPA.
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5. Long Range Water Study. The Engineering Study has been prepared
and approved by the City. City Officials are keeping water storage applica-
tions "alive" but have not as yet undertaken the recommended ground water
survey in the Smoky Hill Valley.
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6. Arterial Water Mains.
been implemented, but are being
for construction when financing
None of these recommendations have as yet
considered by the City and will be scheduled
can be arranged.
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7. Reinforcing Mains. The construction of reinforcing mains is con-
tinuing, all work being financed from Department revenues and/or special
assessment, as applicable.
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8. }lonitoring Observation Wells. This recommendation is being
followed.
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9. Relief Sewer. The Wayne Street relief sewer as previously
recommended has not as yet been undertaken. With the current rate of
commercial, industrial and residential development in the areas south
of Wayne Avenue and west of the Missouri Pacific railroad, it is now
recommended that additional sewage flow studies of the entire area be
undertaken and an updated plan of area sewer development be established.
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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 Staff personnel, several
matters were discussed which appear to merit consideration for further
study and appropriate action:
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1. The arterial water main feeding the South Industrial Area,
particularly the l2-inch main along U.S. 81 from Water Well Road north
to the point of connection with the main serving School Specialty should
be completed in 1974. In addition, 1974 construction should include the
proposed l2-inch water main along U.S. 81 from Magnolia north to the
point of connection with the existing l2-inch main.
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2. Complete the painting of the Magnolia and Sunset Park elevated
water tanks.
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3.
Major items of maintenance of the sewerage system includes:
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(a) Sewage Treatment Plants
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(1) Replacing mercury seals in the trickling filter
distributors, four at the Main Plant, two at the
Schilling Plant.
(2) Replacing clarifier weirs at the Main Plant.
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(b) Sewer System
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(1) Replacing sewage pumps at the pumping station at
1200 East Ash Street.
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(2) Install force main shut-off valves at the two Ash
Street Sewage Pumping Stations.
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4. Conduct the proposed ground water hydro-geological survey in the
Smoky Hill Valley between Salina and Bridgeport.
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5. There are no items of unusual repair or maintenance anticipated
within the ensuing two years in the Water Department Facilities.
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6. The continuing progress of separation of storm and sanitary sewers
should be prosecuted. Additional regulation and enforcement~ as required~
of controlling sources of storm water entrance into the sanitary sewer system
should be implemented.
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7. The City must initiate various monitoring~ controls~ operations
and construction requirements in order to be in compliance with the National
Permit Discharge Elimination System (NPDES) Permit stipulations. The stip-
ulations are essentially those required by the Water Pollution Control Act
Amendments of 1972 (P.L. 92-500). The principal objectives of NPDES at
this time is to obtain the proposed July l~ 1977 effluent standards which
require a high degree of treatment efficiency~ including effluent dis-
infection. If the City intends to request federal grant-in-aid funds
for these purposes~ the first action would be to request federal assistance
in funding of Step 1 Grant for a Facilities Plan. The completion of a
Facilities Plan is a prerequisite to eligibility for requesting federal
grants for Step 2 - Planning and Step 3 - Construction.
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CONCLUSIONS
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The results of this study and examination indicate that, as of 31 December
1973, 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, improve-
ing 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 indicates that the system is operated in a satisfactory manner and
that the condition, in general, is good.
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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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