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Water & Sewer Condition & Operations 1974-1977 I I I I I I I I I I I I I I I , J -I I ~I SALINA, KANSAS Water and Sewera~e System CONDITION AND OPERATIONS REPORT FOR THE YEARS 1974, 1975, 1976 & 1977 WITH RECOMMENDATIONS FOR 1978 & 1979 :1;, LS 0 N COMPANY ENGINEERS ARC H ITECTS t I I I I I I I I I I I I I I I I I I I SALINA, KANSAS WATER AND SEWERAGE SYSTEM CONDITION AND OPERATIONS REPORT FOR THE YEARS 1974, 1975, 1976 & 1977 WITH RECOMMENDATIONS FOR 1978 & 1979 ***** Jack P. Weisgerber, Mayor Commissioners Keith G. Duckers Dan S. Geis Karen M. Graves Gerald F. Simpson Norris Olson, City Manager Ron Webster, Director of Utilities AUGUST 1978 (78-047) ]'LSON COMPANY ENGINEERS ARC HITECTS t I I PURPOSE OF REPORT I I 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: I Section 11(e). "At least once in every two 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." I I I 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 construction and operation of municipal water and sewage systems and will cause such con- sulting 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." I I I 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. The last Condition and Operations Report covered the years 1972 and 1973, and was prepared in June 1974. I I I This report covers the years 1974, 1975, 1976 and 1977, with recommenda- tions for 1978 and 1979. In view of the fact that many water and sewer department capital improvement projects are now under construction, it was deemed appropriate that the current condition of the systems be mentioned. I I I I 1 I I I 1961 BOND ISSUE I I 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)." I I 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: I 1961 Bond Issue Federal Grant $3,600,000 250,000 I Total Funds Available for All Purposes $3,850,000 I Previous Bond Issues Refunding 1,182,000 Total Funds Available for Improvements $2,668,000 I The funds have now been expended. (See next page) I I I I I I I I 2 I I I 1961 BOND ISSUE EXPENDITURES I 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 improve- ments are in accordance with recommendations of the City's Consulting Engineers and of the City Engineer's Office. I I 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 I I I I I TOTAL EXPENDITURES *Includes investment income. I I I I I I I I I 3 I $ 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'>', I I 1977 BOND ISSUE I I On 1 April, 1977, the City of Salina, Kansas, issued Revenue Bonds in the amount of $3,000,000, the proceeds of which are to be used to finance the construction of several large water distribution and storage improvements and the City's share of the construction of the water treatment plant sludge disposal facilities. The water distribution system improvements consist principally of large-diameter feeder mains. The storage improve- ments consist of a 0.5 million-gallon elevated water storage tank in the extreme northern edge of the City. The need for all of these improvements has been evident for many years, having been recommended in Engineering Studies of the water distribution system. The sludge disposal facilities were demanded by the Environmental Protection Agency, as a means of pollu- tion Control of the Smoky Hill River. I I I The descriptions and estimated costs of each of the foregoing projects are included in the Section - SYSTEM IMPROVEMENTS. I In order to obtain an improved retirement schedule of the bonds issued on 1 April, 1977, the City Commission, in early 1978, combined the 1977 revenue bond issue with the 1961 revenue bond issue and refunded the combined issue. At that time, also, the water ~nd sewerage department projected revenues were studied and rate schedule adjustments were programmed in order to assure maintenance of the proper debt coverage ratio. (See Appendix "A" for the financial study made in connection with the bond refunding.) I I I I I I I I I I 4 I I I SYSTEM IMPROVEMENTS I I The Conditions and Operations reports prepared in 1964) 1966) 1968) 1970) 1972 and 1973 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. I Long range water system improvements were studied in the Engineering Reports prepared in 1968) 1970 and 1972. I 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. I 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. I The 1972 report included a very comprehensive study and analysis of the water distribution system) a recommended 5-year capital improvements pro- gram 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. I I The following table lists the major capital improvement projects financed by current Water and Sewerage Department revenues for the years 1974) 1975) 1976 and 1977) and describes and estimates the cost of other capital improve- ment projects planned for 1978 and 1979) which likewise) will be financed through current revenues. I I I I I I I I 5 I I I I I I I I I I I I I I I I I I I I Projects Constructed Year 1978 1978 1978 1978 1978 1978 1978 1978 1978 1978 1978 1979 1979 Year Project Cost 1974 Byrd Rd. Water Main, 12-inch $ 1974 Sewer Cleaning Machine 1974 Planet Avenue Water Main, 12-inch 1974 Byrd Rd. Sew. Pumping Station 1974 Wayne Avenue Water Main, 12-inch 1974 New River Water Pump 1974 Repaint Sunset and Key Acres Elevated Tanks 1975 Storage Building at S.T.P. #1 1976 1976 1976 1976-77 1977 1977 Est. Cost $ 8,536 30,845 44,663 2,800 2,980 14,000 Sta. 13 ,800 30,000 No. 1 20,000 79,740 3,434 30,000 19,111 $ 299,909 $ 149,955 Lakewood Sew. Pumping Station Key Acres Sew. Pumping Station Flowmeter and Sampler, portable Replace Treatment Basin Equipment, W.T.P. Air Compressor Sullivan Water Main, 12-inch TOTAL 4-year average Projects Proposed Project Parshall Flume, STP No. 2 Hocking Water Main, 12-inch Hocking Sew. Pumping Sta. Power Winch for T.V. Unit Video Tape Recorder for TV Unit 3-Ton Truck wj2,000 Gallon Tank Emergency Alarm for Monitoring Pump Water Main to STP No.1, 6-inch 15' x 40' Office Bldg. & Locker STP New Water Meters (domestic) New Lab Equipment at WTP New Chlorinators for Airport area New Water Meters (domestic) Estimated Total Annual Average 6 31,862 18,000 620 3,000 14,767 5,744 17,469 25,000 13,385 34,321 5,000 133,729 5,666 45 , 77 7 $ 354,340 $ 88,585 I I I I In June, 1973, the City Commission authorized the preparation of documents for submission to the Environmental Protection Agency to enable the City to obtain grant funds to assist in the construction of sludge collection and disposal facilities for water treatment plant sludges. The grant applica- tion was subsequently approved by EPA in the amount of 75 percent of the eligible construction costs (not including costs for land purchases and temporary financing). I I I I In November, 1974, the City Commission authorized the construction of the project, basically as outlined in the EPA grant application. Construction of the project commenced in October, 1977, and will be com- pleted in August, 1978. The City's share of the project cost is approximately $270,538.00. This amount was financed through the issuance of Water and Sewage System Revenue Bonds, totalling $3,000,000.00. That bond issue, however, also included funds for the construction of many improvements to the water distribution and water storage systems, as shown by the following tabulation. The majority of these projects will be constructed in 1978. I- I I I I I I I I I I Projects Financed Through $3,000,000 Revenue Bond Issue Year Project Cost 1978 1977-78 1978 WTP Sludge Disposal Facilities Water Main, 30-inch, WTP to Ohio and Crawford Water Main, 20-inch, Ohio, Crawford to Magnolia, and on Magnolia, Ohio to Ninth Street Northwest Water Main, 12-inch Northwest Elevated Water Tank, 0.5 mg North Fourth Street Water Main, 20-inch, Water Plant to Santa Fe and Lincoln, and Water Main, 20-inch, West Crawford, Santa Fe to Broadway $ 270,538 586,736 1978 1978 1979 528,422 385,000 324,500 904,804 TOTAL $ 3,000,000 7 I I REVENUE I I Revenue is derived principally from a water rate schedule and a sewer service charge schedule. Both schedules are based on customer water 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 occasion, 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: I I I Estimated By Year Actual Balance First Securities 1961 $ 411,625 $ 377 ,949 1962 514,197 377 ,949 1963 456,503 377 ,949 1964 421,609 377 ,949 1965 345,014 377 ,949 1966 339,345 377 ,949 1967 330,053 377 ,949 1968 304,604 377 ,949 1969 296,650 377,949 1970 249,372 377 ,949 1971 283,527 377 ,949 1972 276,709 377 ,949 1973 511,656 377 ,949 1974 383,112 377 ,949 1975 317 ,599 (Not 1976 270,459 Appli- 1977 646,065 cable) I I I I I I During the first four years after issuance of the 1961 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 succeeding eight years, the balances dropped somewhat below the estimated figures. I I 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. I I City Ordinance No. 6546 required 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 I I 8 I I I 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." I The water and sewer departments are now operating under Ordinance No. 8635, dated 15 May, 1978. This ordinance contains the same requirements with regard to the rate schedules, but changed the debt service ratio from 135 percent to 130 percent. The following table indicates the Water and Sewer Department income posi- tion as compared to the requirement of the ordinance. I I I I I I I I I I I I I I I Year 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 Sold (M. Gal.) 1,376.8 1,420.0 1,434.7 1,489.9 1,260.3 1,422.3 1,364.0 1,552.0 1,640.6 1,748.0 1,706.5 1,644.4 1,678.0 1,640.0 1,673.5 1,740.3 1,721.1 Gross Income $804,342 976,057 960,374 941,380 848,321 869,145 901,731 950,135 1,006,996 1,031,720 1,052,673 1,034,939 1,367,809 1,403,056 1,479,944 1,560,950 1,993,588 Total Expenses $507,604 545,794 726,104 519,771 503,307 529,800 571,678 645,531 710,346 782,348 791,146 758,230 856,153 1,019,944 1,162,342 1,290,488 1,347,523 *Not a .full year of operation. Operating Income $411,625 514,197 456,503 421,609 345,014 339,345 330,053 304,604 296,650 249,372 283,527 276,709 511 ,656 383,112 317,602 270,462 646,065 Principal & Interest Payments Ratio (in Percent) $107,242 248,624 234,270 231,318 228,965 223,458 222,670 219,215 220,479 216,574 212,669 213,770 209,702 210,648 211 ,091 211 ,386 216,442 ;~ 207.0 195.0 182.0 151.0 152.0 149.0 139.0 134.5 115.1 133.3 129.4 244.0 181. 8 150.4 128.0 298.5 The required ratio of 135 percent was not maintained from 1969 through 1972, and again fell below the requirement in 1976. This deficiency, plus the need to issue additional revenue bonds for new system improvements, required that the Governing Body establish a new rate structure for the Water and Sewer Departments. The new rate was placed in effect on 1 February, 1977 and resulted in increase in the debt service ratio for the year 1977. 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. 9 - 2,500 2,1100 2,300 2,200 2,100 ~. 1,900 1,800 11'100 ~ 11'600 0. 1,500 .... 0 '" I.~oo 0. :z: . '" => 0. 1,300 '" t- 1,200 1,100 1,000 900 800 100 600 500 - - - - - - - - - - - - - - - - - - ... Cl) N .., Cl) ..... C7> CO> .., Cl) .,. ... Cl) .,. .., Cl) ... ... Cl) .... ... Cl) II) .., Cl) Cl) .., Cl) o ..... Cl) N .... Cl) .,. ..... Cl) ... ..... Cl) .,. ..... Cl) 0- .... C7> .., .... C7> .... ..... C7> to ..... Cl) o CD co 15,000 ;:. NUMBER OF ACCOUNTS~ --- " -- 2 111,000 (ANNUAL AVERAGES) -- --- E. --\.. , .. , , .... J.3-;0'0l) , -- --- - - --- '" .. , --- " ::> , ------- "- , 8 - -" '.', ... " -- .. --- ----- ~o " - - -- " - - - '...... - ~. - '"' II ,000 / . / I / I / ",' ~ ~ ", V7 // 1--- /1/ ,I ",,- I V // / I I I 7 v / / I / 1/7 TOTAL ANNUAL ~EVENUE - / --- ~~ ,...,..... ~ /7 / -- I--- '... ,..., ~ // ........ ~- /" 7 --- ~ /' / ~ - ~ ) ..</ - - /' PLATE I --- WATER AND SEWER DEPARTMENT V ANNUAL OPERATING EXPENSE-- ,/ /'" ~ANNUAL OPERATING EXP ANNUAL REVENUES, EXPENSES AND NSE PLUS DEB; SERVICE ...../ I NUMBER OF ACCOUNTS . --- /' l---- - ~ -- WCEA FILE: 18-0117 ~ I I CASH FUND ACCOUNTS I I As of 31 December, 1977, all bond accounts are at or above the levels required by the current Bond Ordinance, and as required by good management practices. I Since 31 December, 1974, no funds have been maintained in the Extension and Bond Retirement Fund. Moneys for extending, improving or enlarging the City's combined water and sewer system have been obtained from surpluses in the Treasury and Operating and Maintenance Fund, and from the Depreciation and Emergency Fund where applicable. I From 1968 through 1976, no new Revenue Bond Issues were required for capital improvements to the water and sewer system. I The major capital improvements projects now under construction are being financed by the 1977 Revenue Bond Issue, as described earlier in this report. I A summary of the Cash Fund Accounts follows: I I I I I I I I I I 10 I ------------------- 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 0.]'*$ 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 '1dq ,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 '1--~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'\- 139,518'1~ 94,612 *'*123,427 Required by Ordinance 92,779 300,000 125,000 Balance, 12/31/67 160,907 99,128 334, 964'1~ 147 ,401;'~ 250,412 ;';-:~73 ,817 Required by Ordinance 91,278 300,000 125,000 Balance, 12/31/68 126,285 104,913 348,095'1( 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 ------------------- Treasury and Extension Operating and Bond and Bond Depreciation and Bond Maintenance Interest Reserve and Emergency Retirement Balance 12/31/72 42,161 104,350 443,727* 174,861;" 58,643 Required by Ordinance 87,264 300,000 125,000 Balance 12/31/73 77 , 170 104,350 463,427* 182,801 59,893 Required by Ordinance 84,703 300,000 125,000 Balance 12/31/74 355,225 104,350 492,162 194,372 59,893 Required by Ordinance 87,655 300,000 125,000 Balance 12/31/75 311 ,294 104,350 528,196 183,325 None Required by Ordinance 87,840 300,000 125,000 Balance 12/31/76 284,294 104,350 560,561 146,606 None Required by Ordinance 96,290 300,000 125,000 - Balance 12/31/77 461,467 104,298 591,536 154,126 None N Required By Ordinance 90,080 560,000 125,000 Bond Proceeds Fund None None None None .,.......,2,852,587 *These funds have accumulated to the amounts required by the Ordinance; no further payments into these funds from revenue are required as long as they are at or greater than the sum required. **1961 Bond Issue remainder. *;'~~1977 Bond Issue remainder. I I I I I I I I I I I I I I I I I I I CAPITAL IMPROVEMENT PROGRAM Following the $3,600,000 revenue bond issue in 1961, it was not necessary for the City of Salina to issue additional revenue bonds for its combined Water and Sewerage Department until early in 1977. All debt services, operating expenses, extensions and betterments during that period were financed from water revenues and sewage service charges. It was necessary, however, to increase the water rates at the beginning of 1973 and again in 1977, the latter increase being required to offset the increased debt service requirement of the 1977 revenue bond issue. Under the new rate schedule, there was an increase of approximately $240,000 in available funds in 1977 over the amount available in 1976, as shown by the following table: FUNDS AVAILABLE FOR CAPITAL IMPROVEMENTS Year 1974 1975 1976 1977 ASSETS (CASH) Water & Sewage Treasury $ 273,385 $ 291,005 $185,437 $ 461,467 Water & Sewerage Operating Account 81,841 20,289 98,856 14,028 Ext. & Bond Retirement Fund 59,893 None None None TOTAL ASSETS $ 415,119 $ 311,294 $284,293 $ 475,495 LIABILITIES Accounts Payable 68,984 133 ,548 102,896 53,222 BALANCE $ 346,225 $ 11 7 , 746 $181,397 $ 422,273 13 I I REVIEW OF EARLIER RECOMMENDATIONS I I 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: I 1. Water Rate Increase. A new water rate schedule, designed to increase water revenues by 50 percent was placed in effect on 1 January 1973. I 2. Billing Equipment and Methods. New computer equipment has been purchased and billing methods have been completely modernized. I 3. Procedure Manual. A new manual of uniform procedures has been prepared and is being used. I 4. Disposal of Water Plant Wastes. Construction of this project is nearing completion. It was financed by an EPA Grant in the amount of 75 percent of the eligible costs, with the City's share being financed from a portion of the 1977 $3,000,000 Revenue Bond Issue. Operation of the facility will increase the system operating costs for power, labor and maintenance, but the added costs have been provided for in the water rate schedule now in effect. I I 5. Long Range Water Study. The Engineering Study has been prepared and approved by the City. City Officials are keeping water storage appli- cations "alive" but have not as yet undertaken the recommended ground water survey in the Smoky Hill Valley. I 6 & 7. Arterial Water Mains and Reinforcing Mains. Construction of the recommended Arterial and Reinforcing Water Mains has been undertaken and a large portion is substantially complete. The remainder is scheduled for construction in 1978 and 1979. These projects are being funded by the 1977 Revenue Bond Issue. I I, 8. Monitoring Observation Wells. This recommendation is being followed. I 9. Relief Sewer. The Wayne Street relief sewer as previously recom- mended 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. The plan should include a new sewage pumping station and eventual abandonment of the Schilling waste treatment plant. I I I I 14 I I I NEW RECOMMENDATIONS I 1. Old Smoky Hill River Channel. percent of its annual water supply from and 30 to 40 percent of its supply from The City now obtains from 60 to 70 the Old Smoky Hill River Channel wells. I The Salina Flood Control Project, constructed by the U.S. Corps of Engineers and completed in 1961, included a cut-off channel whirh separated the River from the built-up portion of the City. A maximum flow of 100 cubic feet per second was allowed to continue through the original river channel, on which is located the City's River Intake Facilities. The extremely low flow has resulted in excessive clogging of the River Channel upstream from the City's intake structure to the upper end of the River cut-off channel. I I I The City Commission began actively to seek a solution to the clogging problem and its serious consequences. In January, 1978, the City Commis- sion authorized Wilson & Company to conduct a study of the Old River Channel, the objective of which was to evaluate concepts for beautification, recrea- tion enhancement, stabilization of the Channel and banks, alternative concepts for dealing with the progressive siltation and aggradation of the old channel and maintenance of the water supply to the raw water intake at the water treatment plant. I I The study was completed, delivered to and discussed with the City Commis- sion in the spring of 1978. The study projected that the old channel above the Western Star Mill Dam would be completely full of silt sometime between 1983 and 1984, terminating the supply of water to the raw water intake. I I Several solutions to the problems were considered and analyzed and con- struction costs were prepared for each alternate method. I The recommended plan includes the construction of a gravity inflow pre- sedimentation basin, designed for a flow of 50 cubic feet per second and located near the upper end of the Old River Channel. This basin would remove a major portion of the silt, return the settled silt to the cut-off channel of the river and allow the clarified water to continue in the Old River Channel to the raw water intake and beyond. The plan also includes dredging and sloping of the Old River Channel between the Old Hill Dam and the sedimentation basin and the removal of debris and aquatic vegetation downstream from the Old Hill Dam to the present outlet at the River. I I I In addition, the plan includes the development of a parkway system for the entire length of the Old River Channel. I The City Commission is now considering the recommended plan and the alterna- tive plans and soliciting public support for a project which will insure continuation of the raw water supply from the River. They are also investi- gating the availability of Federal funding for a portion of the project cost. I I It is recommended that the City Commission pursue these considerations actively to insure that an acceptable project is implemented in the near future to assure continued use of this raw water source. 15 I I I I 2. Restoration of Sewage Gas Utilization. The operating personnel of Waste Treatment Plant No. 1 have been rehabilitating the sewage gas collection and burning system to utilize as much of the sewage gas as possible for digester he~ting and for other purposes at the treatment facility. Completion of the remodeling work will improve plant operation and result in substantial savings in fuel costs, as well as to reduce plant odors. I I It is recommended that efforts to complete the remodeling work be expedited to achieve full utilization of the excess sewage gas. I I I I I I I I I I I I I 16 I I I OPERATIONS AND MAINTENANCE I I 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. I 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. I The combined water and sewerage department is execeptionally well managed and operated. Administrative personnel are knowledgeable and operate a business-like, efficient public utility. I In the course of interviews with Department Staff personnel, several matters were discussed which appear to merit consideration for further study and appropriate action: I 1. The arterial and reinforcing water main project now under con- struction should be completed and placed in operation. This project includes (1) a 30-inch water main on Fifth Street from the high service pump station to Santa Fe Avenue, thence South on Santa Fe to Crawford, thence east on Crawford to Ohio; (2) a 20-inch water main on Ohio from Crawford to Magnolia, thence west on Magnolia to Ninth Street; (3) a 20-inch water main on West Crawford from Santa Fe to Broadway Boulevard; (4) a 12-inch water main on Grand Avenue from Woodlawn to Ninth Street, thence north on Ninth Street to Euclid Avenue and the proposed elevated tank; (5) a new 0.5 million gallon elevated water tank near Ninth Street and Interstate 70; (6) water main, 20-inch, north Fourth Street, from Water Plant to Santa Fe and Lincoln; (7) a new 20-inch water main on Marymount Road from Greeley south to Crawford, thence east on Crawford to the proposed shopping center area. I I I I The first two of these projects are substantially complete, and plans and specifications for items (3), (4) and (5) are being prepared. Depending upon the urgency of the need for the improvements and the availability of funding, there is a possibility that item (7) may be substituted for item (6). This change is being considered. I I 2. Furnish City water supply to Waste Treatment Plant No.1. This may be accomplished most economically by constructing a new 6-inch water main from the end of the present water main on Eastborough north across the Smoky Hill River to the Plant. I 3. There are no major items of maintenance of the sewerage system mentioned by the operating personnel which have not already been requested or provided for in the City budget. I I 4. Major items of maintenance of the water system includes: ~. Relining or possible replacement of the sludge holding tank within the Calcining Building of the Water Treatment Plant. I I 17 I I ~. Repair or possible replacement of the mechanisms on the roof of the Calcining Building to reduce the amount of escaping lime dust. I 5. Conduct the proposed ground water hydro-geological survey in the Smoky Hill Valley between Salina and Bridgeport. I 6. Other than those stipulated in Paragraph 4, above, there are no items of unusual repair or maintenance within the ensuing two years in the Water Department Facilities. I I I I I !I I I I I I I I I I 18 I I CONCLUSIONS I The results of this study and examination indicate that, as of 31 December 1977, the funds in the Extension and Bond Retirement Account as shown in the Sunmlary 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. I I I The review of the condition and operation of the combined water and sewer- age system indicates that the system is opertated in a satisfactory manner and that the conditon, in general, is good. I The following is a summary of recommendations and suggestions in regard to the operation of the combined water and sewerage system: I It is recommended that, insofar as practicable, all of the studies and improvements listed under "Operations and Nain- tenance" be undertaken during the comming two-year period. I I " \ I I I I I I I I 19 I I I APPENDIX "A" I I 12 Hay 1978 I I Salina City City-County 300 ~.J. Ash Salina Kansas Commission Building 67401 I Dear Mayor and Commissioners: I We are submitting this letter r2port as a SUll1Llary of our analyses of the operating condition of the '.'.'<;lter and 30,\;2r utility of the City of Salina, Kansns. The information contained herein l.Jas developed through the cooperation of the City IS 'h'o? ter and se\-.'er utility staff, from the excellent records maintained by that staff, from annual financial audits of the utility and from our firm's familiarity with the utility operatiO!lS gained through 30 years' experience as Consultants to the City. I I I Table 1 and Table 2 indicatE a la-year history of population, n'..l;nber of I accounts, \,'ater consumption and sewage flOlvs. As can be seen the total \'later constlmption trends generall:,. increase ,'lith popul:nion increase although the per capita consu~ption shows a declining trend. The water consumption trend is expcc:ted to continue to decline moderately a.', costs I of water increase, conservation practices become more desir2ble and as regulatory standards bEcome !r.ore strict. Sel';Cige volumes have indicated I I a dO\vlW,:1rd treI~d in recent years and this trend is expected to continue due to regulatory rcquircr;1c:>nts to minimize 2xtran20US and excessive se\.;age flOlvs. I I Tahle 3 and Table 4 present IO-year histories of revenues and expenses in the 1'.'<Jter and sevier utility. The revenue' fre'I!: the, scwitation department is derived from billing services ~i;i2h are performed ns part of the rE'gular vater and selvage billing. I I 1 I I I I I I I I I I I I I I I I I I I TABLE 1 WATER CONSU}1PTION -- 10-Year History, 1968 to 1977 Water Water Num1: T of Pumped Hetered Gal/Capita Ye2r Popula tion Accounts Hi llian G3l. HUlian Gal. /day ---- 1968 38,110 12,532 1,958.39 1,552.0 112 1969 39,013 12,795 2,039.19 1,640.6 115 1970 37,714 12,945 2,223.62 1,748.0 127 1971 37,925 13, 155 2,152.72 1,706.5 124 1972 36,609 13,336 2,046.35 1,644.4 123 1973 37,162 13,581 2,124.78 1,678.0 124 1974 37,377 13,016 2, 19 3 . 64 1,640.0 120 1975 38,378 14, 154 2,246.00 1,673.5 120 1976 39, 682 14,588 2,413.27 1,740.3 120 *1977 40,532 14,942 2,113.79 1,721.1 116* *Ra te increase into effect 1 February 1977 . 2 I I I I I I I I I I I I I I I I I I I TABLE 2 SElvAGE VOUJ}!ES 8-Year History, 1970 to 1977 Metered Number of Volume Year Population Accounts (1) Million Gal. (2) 1970 37, 714 12,700 2,022.8 1971 37,925 12,900 2,262.6 1972 36,609 13,200 1,643.2 1973 37,162 13,300 2.069.9 1974 37,377 13, 600 1,717.0 1975 38,378 13,900 1, 849. 1 1976 39,682 14,400 1,811.9 1977 40,532 14,700 1,963.7 (1) Estimate, separate tabulation not maintained. (2) Metered at waste,.;rater treatment plant. 3 Gal/Capita /day 147 143 123 153 126 132 125 133 I I I I I I I I I I I I I I I I I I I TABLE 3 WATER AND SEHER.\GE DEPARTHENT OPERATING REVEt-mE 10-Year History, 1968 to 1977 Water Sewer Sanitation Year Dep t. Dept. Dept. Total 1968 597,731 349,462 2,943 950,136 1969 652,337 351,640 3,019 1,006,996 1970 670,807 357, 77 1 3,062 1,031,645 1971 677,031 372,517 3,142 1,052,690 1972 647,120 384,634 3,183 1,034,939 1973(1) 973,908 390,624 3,276 1,367,809 1974 1,030,869 366,818 5,369 1,403,056 1975 1,074,725 399,485 5,734 1,479,944 1976 1,137,557 417,573 5,820 1,560,950 1977 (2) 1,476,782(3) (4) 591,959(4) 5,980 2,074,721(Li) 1977 (ad- justed) (2) 1,501,000 600,400 5,980 2,107,380 (1) New rate schedule for \Vater sales effective 1 January 1973 (2) Ne\V rate schedule for water and se\Ver sales, effective 1 February 1977. (Adjusted) For rate if in effect for 12 months. (3) Includes charges for fire hydrant rental ($81,135). (4) New rate in effect for 11 months of the year 4 I I TABLE 4 TOTAL OPERATING EXPENDITURES I WATER AND SEHERAGE DEPARTIrENT 10-Year History, 1968 to 1977 I Water Sevler Year Dept. Dept. Total I 1968 451,587 193,938 645,525 1969 499,402 210,605 710,007 I 1970 551,382 228, 102. 779,490 I .1971 529,371 242,634 772,005 1972 518,101 240, 128 758,229 I 1973 572,888 283,265 856,153 1974 705,157 314, 787 1,019,944 I 1975 786,280 376,062 1,162,342 I 1976 866,584 423,904 1,290,488 1977 908,759 437,745 1,346,504 I I I I I I I I 5 I I I I I I I I I I I I I I I I I I I I Projected water and sewer utility expenditures and revenue requirements have been developed based on existing trends, anticipated future changes in operating procedure, proposed debt service requirements and minor capital improvements which will be required to keep th,- \vater and sewage utility responsive to its customers. }linor capital improvements, although not specifically identified in the historical expenditures have fluctuated in the past but have been financed from the operating revenues. Projected annual minor capital improvements are expected to remain relatively constant due to a recently established policy of the City requiring extension of the \'Jater and Se\ler utilities into ne\-l areas to be paid for by the developer of that area. This policy relieves the Utility of initial financing of these improvements. Projected minor capital improvements are expected to vary from $50,000 to $200,000 annually and average approximately $125,000.00. Table 5 and Table 6 indicate projected population, number of accounts, operating revenues and expenditures for the water and se\ver utility through 1997 and presents a summary of our study analyses. 6 ------------------- TABLE 5 WATER SYSTEM PROJECTED OPERATING REVENUE AND EXPENDITURES Hetered Usage Net Income No. of Consumption Gal/Capita Operating Operating From Year Population Accounts Million Gallons /day Revenue Expenses ODerations . 1978 41,000 15,220 1,770 118 $ 1,51..9,000 $ 913,500 $ 566,500 1979 41,700 15,440 1,811 119 1,575,600 1,056,000 519,600 1980 42,300 15,670 1, 790 116 1,670,100 1,122,300 547,800 1981 42,800 15,850 1,812 116 1,699,700 1,203,200 496,700 1982 43,400 16,070 1,822 115 1,852,700 1,284,500 568,200 ...... 1983 43,900 16,570 1,843 115 1,883,500 1,382,300 501,200 1984 44,500 16,790 1,835 113 2,034,200 1,468,000 566,200 1985 45,000 16,980 1,840 112 2,047,900 1,564,000 483,900 1986 45,700 17,240 1,835 110 2,150,300 1,651,500 498,800 1987 46,200 17,430 1,855 110 2,183,300 1,769,700 413,600 1992 49,000 18,846 1,874 105 2,712,300 2,368,300 344,000 1997 52,000 20,800 1,892 97 3,327,300 3,169,300 158,000 ------------------- TABLE 6 SE"'wERAGE SYSTEJ.'1 PROJECTED OPERATING REVENUE fu~D EXPENSES Metered Usage Net Income No. of Sewage Flows Gal/Capita Operating Operating From Year Population Accounts Mill ion Gallons /daL- Revenue Expenses Operations 1978 41,000 15,000 1,875 125 $ 616,000 $ 455,000 $ 161,000 1979 41,700 15,200 1,903 125 630,200 485,300 144,900 1980 42,300 15,450 1,853 120 668,000 496,600 171,400 1981 42,800 15,650 1,843 118 679,900 519,700 160,200 1982 43,400 15,850 1,822 115 740,100 546,600 193,500 CXl 1983 43,900 16,300 1, 795 112 753,400 570,800 182,600 1984 44,500 16,500 1,787 110 813,700 602,200 .211,500 1985 45,000 16, 750 1, 757 107 819,200 623,700 195,500 1986 45,700 17,000 1,751 105 860,100 656,600 203,500 1987 46,200 17,200 1,771 105 873,300 697,800 175,500 1992 49,000 18,600 1,789 100 1,084,900 933,800 151,100 1997 52,000 20,600 1,803 95 1,330,900 1,249,700 81,200 L- I I I I I I I I I I I I I I I I I I I Based on our analyses and projections of the City's \.J3.ter and Sewer Utilities, a minimum annu3.l net operating income of approximately $700,000 must be maintained througll 1986 to provide appropriate debt service coverage and funds for annual minor capital improvements. To provide such funds an adjustment in the Water and Sewer Rate Schedules will be required periodically to increase total revenues to compensate for increased cost.s. Based upon our analyses and projections, proposed rate adjustments required to produce the projected revenues would occur at two-year intervals beginning in 1980 and extending through 1986. The adjustments must be capable of covering increases in operating costs as well as provide bond coverage. Table 7 summarizes the prqjected \vater and sewage operations with suggested rate adjustments which increase operating revenues by 6 percent in 1980, 9 percent in 1982, 8 percent in 1984, and 5 percent in 1986. Operating expenses have been projected to increase 6 percent annually during this time interval. 9 I I TABLE 7 WATER AND SEI.JERAGE DEPARTHENT I PROJECTED DEBT SERVICE COVERAGE I Net Income From Qr:>.erd tions Debt Year \<later SC\.Jer S"nitation Total Service Ratio -- I 1978 566,500 161,000 6,000 733,500 301,188 2.44 1979 519,600 144,900 6,200 670, 700 386,795 1. 73 I 1980 547,800 171,/.00 6, /100 725,600 391,035 1. 86 I 1981 . 496,700 160,200 6,600 663,500 389,915 1. 70 1982 568,200 193,500 6,800 768,500 403,325 1. 91 I 1983 501,200 182,600 7,000 690,800 406,085 1. 70 I 1984 566,200 211,500 7,200 784,900 403,270 1. 95 1985 483,900 195,500 7,400 686,800 405,770 1. 70 I 1986 498,800 203,500 7,600 709,900 406,900 1. 74 1987 413,600 175,500 7,800 596,900 285,160 2.09 I 1992 344,000 151,000 8,800 503,800 291,247 1. 73 I 1997 158,000 81,200 9,000 248,200 140,749 1. 76 I I I I I I 10 I I I I I I I I I I I I I I I I I I I I Beyond 1986 when the proposed refunding debt service decreases, net operating incomes of approximate'ly $500,000 annually should be main- tained. Timely rate adjustments will be needed to produce the required operating revenues to provide for all operating expenses, debt service, projected minor capital improvements and bond coverage. The City should continue its practice of revie\'Jing \vater and sev:age revenues and expcnditures annually so that the appropriate rate adjust- ments can be initiated. WILSO~ & CmlPANY Jerry L. May, P.E. -cw 11