Water & Sewer Condition & Operations 1978-1982
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SALI NA,KANSAS
Water and Sewerage System
CONDITION AND OPERATIONS REPORT
1978 - 1982
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\It\I1 LS 0 N
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h- [COMPANY
, ENGINEERS ~
J_ tAR CHI TEe T S .
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JUNE 1983
(83-018)
SALINA, KANSAS
WATER AND SEWERAGE SYSTEM
CONDITION AND OPERATIONS REPORT
FOR THE YEARS 1978, 1979, 1980, 1981 & 1982
WITH RECOMMENDATIONS FOR 1983 & 1984
*****
John Burgess, Mayor
Commissioners
Fortino Bonilla
Merle Hodges
Joe Ritter
Charles Roth
Rufus Nye, City Manager
Dean Boyer, Director of Engineering and Utilities
11LSON
COMPANY
EHGIH....RS
ARCHIT~CTS t
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PURPOSE OF REPORT
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City of Salina Ordinance Number 8635, dated 1 May 1978, provides for the
issuance of revenue bonds for the refunding of two bond ordinances issued
for the purpose of altering, improving, extending and enlarging the munici-
pal waterworks and sewerage systems, contains, in part, the following
requirements:
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Section 12(h): "At least once in every two years the City's consulting
engineers hereinafter referred to in Section 16(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
16(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 16(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 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 Water and Sewage Utility, 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 extensions or improvements that may be needed in the ensuing
year .. "
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The 1961 bond ordinance required condition and operations reports which
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 two Condition and Operations reports were dated June 1974 and
August 1978. Projection of revenue requirements for the period 1980 - 1984
were included in "Water Rate Study", dated July 1980. This rate study was
the basis for new rate schedules implemented in 1981, 1982 and 1983. This
report is the first one covered by the 1978 bond ordinance and covers the
years 1978, 1979, 1980, 1981 and 1982, with recommendations for 1983 and
1984.
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1978 BOND ISSUE
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On 23 May 1978, the City of Salina, Kansas, authorized the issuance of
$4,670,000 in Revenue Bonds, the proceeds to be used to refund the principal
amounts of two previous outstanding bond issues and ". . . providing for
the collection, segregation and application of the revenues of said system
for the purposes authorized by law, including paying the cost of operation,
improvement and maintenance of said utility, paying the principal of and
interest on the refunding revenue bonds of said City issued against said
system and providing adequate reserve funds, making certain covenants with
respect to said bond, authorizing an escrow trust agreement relating to
certain prior lien bonds and authorizing a securities option and purchasing
agreement relating to the bonds. II
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The 1978 refunding bond issue was authorized to refund the following bond
issues:
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Series
1961
1977
Bond
Ordinance No.
6546
8546
Effective Date
July 1, 1961
April 1, 1977
Original
$3,600,000
3,000,000
Principal
Outstanding
$1,670,000
3,000,000
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1978 Refunding Bond Issue
$4,670,000
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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 (as refunded in 1978), Federal Grant and investment
income. All improvements are in accordance with recommendations of the
City's Consulting Engineers and of the City Engineer's Office.
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Project
Cost
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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
$ 120,005.00
38,390.00
23,060.00
566,956.00
573,018.00
859,092.00
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237,602.00
51,450.00
75,000.00
49,603.00
36,028.42
15,702.29
19,589.68
2,497.09
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TOTAL EXPENDITURES
$2,847,993.48.,':
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*Includes investment income.
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1977 BOND ISSUE EXPENDITURES
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The following tabulation summarizes the expenditures for improvements to
the combined water and sewerage utility, such expenditures being solely
from the original bond issue (as refunded in 1978) and investment income.
All improvements are in accordance with recommendations of the City's
Consulting Engineers and of the City Engineer's office.
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Project
Cost
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WTP Sludge Disposal Facilities
Water Main, 30-inch, WTP to Ohio and Crawford
Water Main, 20-inch, Ohio, Crawford to Magnolia,
~nd 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
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528,422
385,000
324,500
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904,804
TOTAL
$3,000,000
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SYSTEM IMPROVEMENTS
The Condition and Operations report prepared in 1977 contained recommenda-
tions and budget estimates of cost for system improvements deemed necessary
during the ensuing two-year period. These recommendations pertained prin-
cipally 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.
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.
The 1972 report included a very comprehensive study and analysis of the
water distribution system, a recommended capital improvements program for
the water system and a financial study.
As a result of the refunding bond issue of 1978, adjustments to water and
sewer rates schedules were programmed for adjustments on an annual basis
through 1983 to assure maintenance of proper debt service coverage.
The following table lists the major capital improvement projects financed
by current Water and Sewerage Department revenues for the years 1978 through
1982, and describes and estimates the cost of other capital improvement
projects planned for 1983 and 1984, which likewise, will be financed through
current revenues.
TOTAL
5-year average
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Year
1978
1979
1980
1981
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1982
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Projects Constructed
Project
New Water Utility Vehicles
Water Meters
Water and Sewer Improvements in Dow Addition
Parshall Flume, WWTP #2
Water Meters
Calcining Plant Improvements
Water Meters
Motor Vehicles
Vacuum Rail Car Unloader, WTP
Calcining Plant Improvements
Boiler @ WWTP #1
Backhoe
Water Meters
Office Equipment
Motor Vehicles
Trickling Filter Mechanism @ WWTP #2
Calcining Plant Improvement
Cost
$ 36,290
17,200
65,530
7,680
19,100
458,070
8,780
30,070
31,770
36,410
31,770
25,000
7,320
2,000
5,490
25,480
19,600
$827,550
$165,510
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Projects Proposed 1983
Project
Estimated Cost
Bypass line from secondary settling basin
to filters at WTP #1 (Downtown)
$150,000.00
Heating unit at WTP #2 (Schilling)
15,000.00
18,000.00
Three (3) new well houses at WTP #2
Filter media and control valves at North 8
filters at WTP #1
100,000.00
New intercom system at WTP #1
10,000.00
Spectrometer for WTP #1 Lab
3,000.00
Specific Ion Electrodes (3) for WWTP #1 Lab
2,000.00
26,000.00
3 Raw Sewage Pumps at WWTP #2
10-inch sanitary sewer main
Chicago to Broadway between Ash and State
8,500.00
Computer Printer for Customer Service
10,500.00
Miscellaneous
7,000.00
Total Capital Improvements
$350,000.00
Projects Proposed 1984.
Capital improvement projects anticipated for 1984 total $350,000.00
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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 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. New
water rate schedules have been placed in effect on 1 January 1973, 1 January
1977, 1 January 1981, 1 January 1982, and 1 January 1983.
The water and sewer departments are now operating under Ordinance No. 8635,
dated 15 May 1978. City Ordinance No. 8635 requires that the City "will
fix, establish and maintain rates, fees and other charges for the sale of
water and sewage services and commodities of the Water and Sewage Utility
as shall be required to provide revenues at least sufficient in each fiscal
year to pay an amount equal to at least 130 percent of the aggregate debt
service for the fiscal year."
The following table indicates the Water and Sewer Department income position
as compared to the requirement of the ordinance.
Principal &
Sold Gross Total Operating Interest Ratio
Year (MG) Income Expenses Income Payments ~
1978 1872.9 2,198,615 1,530,474 668,141 301,187 221
1979 1891. 7 2,220,180 1,744,309 475,871 413,820 115
1980 2388.8 2,452,227 2,047,399 404,828 392,285 103
1981 1777.3 2,838,441 2,145,384 693,057 391,165 177
1982 1762.6 3,068,939 2,464,071 604,868 404,575 149
1983 1880.0 3,382,000 2,544,270 837,730 409,630 204
1984 1890.0 3,400,000 2,849,600 550,400 412,000 134
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The required ratio of 130 percent was not maintained in 1979 and 1980. New
rate schedules were implemented on 1 January 1981, 1 January 1982 and 1
January 1983, in anticipation of keeping the debt service ratio at required
levels. No rate increases have been scheduled after 1983. The projections
indicate that the debt service ratio will be approaching the minimum required
by 1984.
Plates 1 and 2 indicate graphically the population, number of accounts and
the Water and Sewer Department revenues, operating expenses and debt service
on an annual basis since 1970.
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I .-SEWER ACCOUNTS
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I~ATER ACCOUNTS 111 11\
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2.0,870
Sewer
Accounts
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40
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2/,670
Water
Accounts
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1968
1970
1975
1980
1985
PLATE I
WA TER AND SEWER DEPARTMENT
POPULATION AND NUMBER OF ACCOUNTS
1990
JUNE 1983
WCEA FILE: 83-018
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5,000
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ANNUAL DEBT SERVICE
71 SEWER DEPT. ANNUAL OPERATING EXPENSE
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WATER DEPT. ANNUAL OPERATING EXPENSE
4,000
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ACTUAL
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GROSS AN!l UAL ./ ,bo.
REVENUES n - -;:;;:1.:S
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1980
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ESt FRQN, CITY BUDGET
1985
1990
PLATE 2
WATER AND SEWER DEPARTMENT
ANNUAL REVENUES AND EXPENSES
JUNE 1983
WCEA FILE: 83-018
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CASH FUND ACCOUNTS
As of 31 December 1982, all bond accounts are at or above the levels required
by the current Bond Ordinance, and as required by good management practices.
Until 31 December 1978, no funds had 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
Operating Income and from the Depreciation and Emergency Fund where
applicable.
From 1968 through 1976, no new Revenue Bond Issues were required for capital
improvements to the water and sewer system.
The major capital improvements projects completed since 1978 were financed
by the 1977 Revenue Bond Issue, as described earlier in this report.
A summary of the Cash Fund Accounts follows:
Summary of Cash Fund Accounts
Extension &
Bond & * Bond Depreciation & Bond
Interest Reserve Emergency Retirement
Balance 12/31/78 313,272 419,453 367,934 600,000
Required by Ordinance 317,000 410,000 125,000
Balance 12/31/79 415,070 438,534 390,118 856,760
Required by Ordinance 397,000 410,000 125,000
Balance 12/31/80 554,647 480,750 429,405 199,040
Required by Ordinance 551,000 410,000 125,000
Balance 12/31/81 709,181 537,736 460,283 218,849
Required by Ordinance 716,000 410,000 125,000
Balance 12/31/82 884,150 618,326 528,053 250, 132
Required by Ordinance 909,000 410,000 125,000
Operating
Income
668,141
475,870
404,827
693,056
604,868
*Invested Sinking Fund - Contributions are made to this cash fund account
in February and August of each year.
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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. Additional rate schedule
adjustments have been implemented annually since 1981 to meet debt service
requirements of the 1978 refunding bond issue.
Funds Available for Capital Improvements
Year 1978 1979 1980 1981 1982
ASSETS (CASH)
Operating Income $ 559,696 $ 419,066 $410,141 $503,159 $688,238
Ext. & Bond Retire-
ment Fund 600,000 856,760 199,040 218,849 250 , 132
TOTAL ASSETS $1,159,696 $1,275,826 $609,181 $722,008 $938,370
LIABILITIES
Accounts Payable 89,316 20,032 62,379 66,268 103,334
BALANCE $1,070,380 $1,255,794 $546,802 $655,740 $835,036
Projected Funds Available for Capital Improvements
1983 1984
ASSETS (CASH)
Operating Income
Ext. & Bond Retire-
ment Fund
$ 650,000
$400,000
400,000
400,000
TOTAL ASSETS
$1,050,000
$800,000
LIABILITIES
Accounts Payable
BALANCE
$ 100,000
$ 950,000
$100,000
$700,000
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REVIEW OF EARLIER RECOMMENDATIONS
The Conditions and Operations report of 1977 contained recommendations
regarding two items of improvement. These recommendations and the action
that has been taken by the City are as follows:
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1. Old Smoky Hill River Channel. Study was authorized in 1978 to
evaluate concepts for beautification, recreation enhancement, stabilization
of channel and banks, alternative concepts for dealing with the progressive
siltation and aggradation of the old channel and maintenance of the raw
water intake at the water treatment plant. Study was completed and recommen-
dations presented to City Commission. Due to estimated project cost and
lack of Federal funding, no action has been taken on the recommendations.
The project remains a feasible alternative for continued use of Smoky Hill
River water for raw water supply.
2. Restoration of Sewage Gas Utilization. This project would enable
sewage gas to be collected and used for digester heating and for other
purposes at the Sewage Treatment Plant No.1. The project has not been
implemented. It is recommended that efforts to complete the remodeling
work be expedited to achieve full utilization of the excess sewage gas.
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NEW RECOMMENDATIONS
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1. Water and Sewerage Systems Study. The City has authorized Wilson &
Company, Engineers & Architects to prepare an engineering report to examine
the short-term and long-term improvement needs of the combined utility
through the year 2020. The study is expected to be completed late in 1983.
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2. Long-Range Water Study. Study was completed earlier. City has
completed groundwater survey in Smoky Hill River Valley and has filed
applications for water appropriations. Information from the Division of
Water Resources regarding those applications is expected in the near future.
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The City is represented on a Steering Committee for the Central Kansas
Wholesale Water Supply District. This Committee is coordinating planning
activities to determine the feasibility of providing 15 communities, includ-
ing Salina, with water supply from Milford Reservoir. Participation in
these long-range water supply planning activities should continue.
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3. Water Rate Increase. Annual water rate increases for 1981, 1982
and 1983 were implemented by ordinance in 1980. Review of the rate schedule
should be implemented and consideration given to annual water rate adjustments
required for 1984 and beyond to maintain debt service coverage.
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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 reasonble 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 need immediate action and others which appear to merit
consideration for further study and appropriate action.
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The items which need immediate attention include:
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1. Recarbonation equipment, for pH control at water treatment plant.
Estimated cost $110,000 plus annual CO2 costs of $80,000/year.
2. Replacement of 5 existing chemical feeders at water treatment
plant. Feeders include 2 lime, 2 soda ash and 1 alum. Estimated cost
$50,000.
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3. One additional air compressor at water treatment plant to provide
reliability for calcining operations and filter controls. Estimated cost
$30,000.
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4. Installation of equipment and chemical handling facilities for
trihalomethane (THM) control at WTP. Estimated cost $15,000.
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5.
WWTP #1.
Replacement of steel checkerplate on all clarifier bridges at
Estimated cost $30,000.
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6. Recalibrate and service influent magnetic flow meter at WWTP #1.
Estimated Cost $4,000.
7. Replace handrail on 1st stage trickling filter stairways at WWTP
#1. Estimated cost $2,000.
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8. Replace metal chutes and other miscellaneous metal on grit augers
and grit screw conveyer at WWTP #1. Estimated cost $5,000.
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9. Add new lighting around headworks structure at WWTP #1. Estimated
cost $3,000.
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10. Install trickling filter recirculation line at WWTP #2. Estimated
cost $6,000.
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11. Haul WWTP #2 sludge to WWTP #1. Estimated cost $73,000/yr.
*
Total Estimated Cost of Immediate Needs
$308,000.
*Will be an annual cost until sludge handling improvements are made at
WWTP #2.
In addition to the items of immediate need to maintain adequate process
control and alleviate potentially hazardous areas at facilities of the
Water and Sewage Utility, the City should initiate work for the following
items:
1. Primary Digester Rehabilitation at WWTP #1.
2. Mechanical Barscreen at WWTP #1.
3. Provide partition in lab building and relocate recorders for
magnetic flow meters at WWTP #1.
4.
WTP #1.
Raw water and finished water flow metering and recording at
5. Replacement of control valves and control equipment in north 8
filters at WTP #1.
6. Rework control equipment in south 8 filters at WTP #1.
7. Replace filter media in north 8 filters at WTP #1.
8. Rechlorination facilities in extremities of distribution system.
9. Methods of improving quantity and quality of Smoky Hill River
water arriving at raw water intake to treatment plant.
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CONCLUSIONS
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The results of this study and examination indicate that as of 31 December
1982, 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, improv-
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 sewer-
age 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 in regard to the operation of
the combined water and sewerage system.
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It is recommended that of all of the studies and improvements
listed under "Operations and Maintenance", Immediate Need be
completed as soon as possible. The remaining studies and
improvements recommended in this report should be initiated in
the coming two-year period.
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It is recommended that the current water and sewer rate schedules
be reviewed and adjustments made to assure adequate debt service
coverage is maintained and to provide adequate revenue for
capital improvement programs.
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