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Water and Sewage System Condition and Operations Report I I I I I I I I I I I I I I I J -I I I =ij~ fS-2-'1-7g' SALINA, KANSAS Water and Sewera~e System CONDITION AND OPERATIONS REPORT FOR THE YEARS 1974. 1975. 1976 & 1977 WITH RECOMMENDATIONS FOR 1978 & 1979 ILS 0 N COMPANY ENGINEERS t ARCHITECTS I - ,"' ~..... . ",.,,; "'. 11LSON COMPANY ENGINEERS ARCHITECTS t ENGINEERS ARCHITECTS PLANNERS RO. SOX :20 OS1 EAST CRA\lVFORO AVENUE . SALINA, KANSAS 87401 . ens 827-04sa 14 August 1978 : RECEIVED . '. .~~ AUG 14 1978 ~. -.. . .. .": : .: Mr. Norris Olson City Manager City-County Building 300 W. Ash Salina, Kansas 67401 CITY MANAGER'S OFFICE Re: Salina, Kansas . Water and Sewerage System Condition and Operations Report WCEA File: 78-049 Dear Mr. Olson: W~ present herewith five (5) copies of the Condition and Operations Report for the Water and Sewerage System. These copies are for review by you and your staff. An additional 20 copies of the final draft will be delivered as soon as possible after your review, at which time we will also furnish a copy to the Bond underwriter, as required by the bond ordinance. We will revise or modify the report in the event your review indicates such changes as are necessary or desirable. WILSON & COMPANY --/('uW~ Kenneth W. Willey, P. E. -ciw SALINA, KANSAS . ,^,ICHITA, KANSAS . ALBUQUERQUE, NE,^, MEXICO 1---- . 2-'" CITY OF SALINA ~. .~,. , . ';r ." ,...., --...,.... " ...- COMMISSIO~IERS MCK WEISGERBER. MAYOR QJTH G. DUCKERS DAN S. GElS KAREN M. -GRAVES Jl':RRY saMPSON CITY - COUNTY .UIL.OINQ HO ..IT ASH ITR.n ...o.~x.,... MLINA. KANSAS U.01 CITV MANAGER NORRIS D. OLSON ARIA CODI: In US-U77 . September 14, 1978 Mr. Ken Willey Wilson & Co., Engr. & Arch. ,631 E. Crawford Ave. P. O. Box 28 Salina. Kansas 67401 Dear Ken: We have provided a staff review of your 1978 Condition and Operations Report for the Water and Sewer Department, with the following comments: ---Page 6: If your project cost figures are correct, the total should read $354,340.00. The 4-yearaverage would then be $88,585.00 instead of $178,520.00. , . ---Page 7: "Projects Financed Through $3,000,000 Revenue Bond Issue~ We would pr.efer that these projects be more clearly identified such as Ohio, Crawford to Magnolia; and Magnolia, Ohio to 9th St. It appears that the 1979 project. calling for a 20" line on Magnolia.Road is an error. Possibly this should be the North 4th Street Main (water plant to Santa Fe & Lincoln Tower.as proposed in the 1976 list of improvements) as we do not find this project on your list. We would suggest that you re-evaluate the present need for this extension as the industrial character of the area served by this tower has changed during the past few years. Also, the city share for the Sludge Disposal Facilities is substantially less than $575,000.00. As this project is now virtually completed, a rather accurate figure can be obtained from the project records. ---Page 8: We disagree with the wordin9 in the 4th sentence. The sewer service charge schedule has not been revised on several occasions. The city does have the latitude however, and has on certain occasions, established special rates for certain users so that their charges are equitable to our service charge schedule. i t t ---Page 12: That portion of your sentence stating that "interest from the funds invested shall accumulate to the funds until the bonds become callable" is not in keeping with the ordinance. Actually these funds are available to spend for "emergency pur- poses" as long as the minimum amounts required by the ordinance are maintained in each fund. I t f , MEMBER. . . KANSAS LEAGUE OF MUNICIPALITIES -NATIONAL LEAGUE OF CITIES '9 .. ,- Mr. Ken Willey September 14, 1978 Page -2- .'--Page 17: Your 4th and 6th j::aragraph under Operations and Maintenance are somewhat in conflict. In paragraph 4 you suggest that these matters receive "study and appropriate action". In paragraph 6 you state that "three of these projects are substantially complete". Actually, the first two "not three" of these projects are substantially completed. Plans and specifications for project #3, #4, and #5, are being prepared. Item #6 has never been formally submitted or authorized as a project, nor has a method of financing the improvement been proposed. We suggest that you further evaluate this proposed project with other capital needs for the utility to determine its priority. This, of course, will need to be done in conjunction with our comments relating to page 7 of the report. Staff stands ready to assist in this . exercise. .1 trust these are the comments you have solitited. Very truly yours, 'n~ Norris D~ Olson City Manager NDO:mbk I I I I 1 1 1 I I I I 1 I I I 1 I I 'I AUGUST 1978 (78-047) 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 ~I LS 0 N COMPANY ENOIN€l!.RS ARC HITl!.CTS t I I PURPOSE OF REPORT I 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 I Section nee). "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 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 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 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 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 $3,850,000 I I Total Funds Available for All Purposes 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 I I I I I I I I I I I I I I I 1961 BOND ISSUE EXPENDITURES The following tabulation summarizes the expenditures for improvements to the combined water and sewerage system, such expenditures being solely from the original bond issue, Federal Grant and investment income. All improve- ments are in accordance with recommendations of the City's Consulting Engineers and of the City Engineer's Office. 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 TOTAL EXPENDITURES *Includes investment income. I I 3 $ 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 and 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 II I I SYSTEM IMPROVEMENTS 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 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 I II 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 5 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 I I Year 1974 1974 1974 1974 1974 1974 1974 1975 1976 1976 1976 1976-77 1977 1977 Project Byrd Rd. Water Main, 12-inch $ Sewer Cleaning Machine Planet Avenue Water Main, 12-inch Byrd Rd. Sew. Pumping Station Wayne Avenue Water Main, 12-inch New River Water Pump Repaint Sunset and Key Acres Elevated Tanks Storage Building at S.T.P. #1 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 w/2,000 Gallon Tank Emergency Alarm for Monitoring Pump Sta. Water Main to No.1, 6-inch 15' x 40 Office Bl & Locker STP No. 1 New Water Meters (domestic) New Lab Equipment at WTP New Chlorinators for Airport area New Water Meters (domestic) Estimated Total Annual Average 6 Cost 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 45,777 $ 359,040 $ 178,520 H7P ? --- Est. Cost $ 8,536 30,845 44,663 2,800 2,980. 14,000 13 , 800 30,000 20,000 79,740 3,434 30,000 19.111 $ 299,909 $ 149,955 ~--, , I I 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 n.;, disposal facilities for water treatment plant sludges. The grant app1ica- ,VV tion was subsequently approved by EPA in the amount of 75 percent of the ~ ~ eligible co~stru~tion costs (not including costs for land purchases andJ1tO~y'~' temporary f1nanc1ng). . ;.D ~ vV-1 0 In November, 1974, the City Commission authorized the construction of the ,bO,~ II (project, basically as outlined in the EPA grant application. () .~ 'Construction of the project commenced in October, 1977, and will be com- 000 I ~~ p1eted in August, 1978. 'j.-,?Or The City's share of the project cost is approXimate~) ~s amount was financed through the issuance of Water a~em Revenue I 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 II majority of these projects will be constructed in 1978. Projects Financed ThrouKh $3,000,000 Revenue Bond Issue I I I I I I I ~I I I I ~~~ Year Project Cost 1978 1977-78 1978 WTP Sludge Disposal Facilities Water Main, 30-inch, WTP to Ohio Water Main, 20-inch, on Magnolia Ohio Street ~teve,,-~ Northwest Water Main, 12-inch Northwest Elevated Water Tank, 0.5 mg Water Main, 20-inch, MagRslia R9a~.,~d \]~cr ~ tlal.n, :lu-iu\.:h, We~L (.raw'[ord-No. '"f~. srt,liAlf-,.. WT.,o 70 Wif"fl- I<KV'U. . 1/ TOTAL $ 575,000 586,736 / / and Crawford Road and on 1978 1978 1979 528,422 385,000 324,500 600,342 $ 3,000,000 7 I I I I I I I I I I I I I I I I I I I REVENUE 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 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: ~ ,t/'f?;Ut.. -5; 17-->, pi '/11-/ J 1(; , / 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. , Year Actual Balance 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 $ 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_'5.77--317(, 317,599 I ' 270,459 646,065 Estimated By First Securities $ 377 ,949 377,949 377 ,949 377,949 377 ,949 377 ,949 377,949 377,949 377,949 377,949 377,949 377,949 377,949 377,949 (Not "Appli- cable) 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. 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 8 II I I I I I I I I I I I I I 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 honds herein authorized at the time outstanding." 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. 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 1,367,809 856,153 511,656 209,702 244.0 1974 1,640.0 1,403,056 1,019,944 383,112 210,648 181. 8 1975 1,673.5 1,479,944 1,162,342 317,602 211,091 150.4 1976 1,740.3 1,560,950 1,290,488 270,462 211 ,386 128.0 1977 1,721.1 1,993'-88 1,347,523 646,065 216,442 298.5 *Not a ,full year of operation. 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. I I 9 I I Il61 <> >-:i .. ~l:l' ~~ ... C1C:r.:t- g .. W.. ~~" . ~~8 m - ... ... ... ~ ... 'I ~~~ .;; "0 -' ~ ~.. ;;: ...~ <> > w .. .....~ "~:E w " 0.> -- \ \ ~ -'.. .. ..... \ -- >- " I f...... .. X I .... 1-.... .. \ , .. \ "" "'\ , , \ f\. , , \ "'\ " , . , \ ~ '" , , . ~ "" I I \ I . . \ "'- . ...i, .... f...... '\ ( . f.., I 1\ ... . ~ . .... X ~ I ~ >-- . ~ X~ . ... " w . 00 . 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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 I .. ~ N .... .... .... .... .... ..., co '" co N N N .... OJ '" '" '" '" ~ ~ co OJ OJ OJ ~ OJ . . . . r:I r:I r:I lJ '" I '" I '" I N I co I '" I '" I 0 I 0 I 0 I 0 I 0"" '" '" 0 ~ '" N .... r :z; :z; :z; ~ 3 N '" '" N .... .... :j; I . :j; :j; :j; :j; 1<1 N .... ..., :j; r:I <n- o :j; lQ I "" r:I r:I 0 0 .... 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III III III III III III III III III III III III III "0 e ..... r- U " U " U " U " U " U " III <l 0 -0 r- <l 0,../ <l 0,../ <l 0,../ <l 0,../ <l 0,../ <lo",/ .<:I ;:l " 0\ 0\ .. ;:l .. ;:l .. ;:l .. ;:l .. ;:l .. ;:l !-I........ ..... ..... ....'" ....'" .... '" ....'" ....'" ....'" oj< ~ ~ .. III .. III .. III .. III .. III .. III <<I"" ~"" ~"" ~"" ~"" ~"" . 12 I I I I I I I I I I I I I I I I I I CAPITAL IMPROVEMENT PROGRAM 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 betterments 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 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 TOTAL ASSETS 59,893 $ 415,119 None None "None Ext. & Bond Retirement Fund $ 311,294 $284,293 $ 475,495 LIABILITIES BALANCE 68,984 $ 346,225 133,548 102,896 $181,397 53,222 $ 422,273 Accounts Payable $ 117,746 I I 13 I , I I I I I I I I I I I I I I I I I I I REVIEW OF EARLIER RECOMMENDATIONS 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: 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. 2. purchased Billin~ Equipment and Methods. New computer equipment has been and billing methods have been completely modernized. 3. Procedure Manual. A new manual of uniform procedures has been prepared and is being used. 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. -? 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. . 6 & 7. Arterial Water Mains and Reinforcin~ 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. 8. Monitoring Observation Wells. This recommendation is being followed. 7 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. 7 14 1--- I I , NEW RECOMMENDATIONS I 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 which 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 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 Mill Dam and the sedimentation basin and the removal of debris and aquatic vegetation downstream from the Old Mill 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 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. I 15 I I- I I '? I / I I I I I I I I I I I 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 heating 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. It is recommended that efforts to complete the remodeling work be expedited to achieve full utilization of the excess sewage gas. 16 II I I I I I I I I I 7 o I I 7 , I 7- " I I I I "1 I 7 I I OPERATIONS AND MAINTENANCE 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. The combined water and sewerage department is well equipped to perform the required services to the community. Maintenance, in general, is routine in nature and is accomplished according to schedule and with reasonable dispatch. The combined water and sewerage department is. execeptionally well managed and operated. Administrative personnel are knowledgeable and operate a business-like, efficient public utility. In the course of interviews with Department Staff personnel, several matter;-' were discussed which appear to merit consideration for further study and ~ appropriate action: 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 the south elevated tank; (3) a 20-inch water main on West Crawford from Santa Fe to Broadway Boule- vard; (4) a 12~ihch 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) a new 20-inch water main on Marymount Road ~ from Greeley south to Crawford, thence east on Crawford to the proposed shopping center area. The first three of these projects are substantially complet~ and plans and] ____specifications for the latter three are being prepared. Contracts for construction will be awarded as soon as possible. ~ ~ 19 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. 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. 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 ~. Repair or possible replacement of the mechanisms on the roof of the Calc~ning Building to reduce the amount of escaping lime dust. 17 I I I I I I I I I I I I I I I I I I I I' 5. Conduct the proposed ground water hydro-geological survey in the Smoky Hill Valley between Salina and Bridgeport. 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. 18 I- I CONCLUSIONS I 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 Summary of Cash Funds Account Table are not in excess of the amount reasonably required to be maintained in such account for extending, improving or enlarging the combined water and sewerage system of the City of Salina, Kansas. The reserve accounts "Bond Reserve" and "Depreciation and Emergency" have reached. the minimum limit set by ordinance. 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 L It is recommended that, insofar as practicable, all of the studies and improvements listed under "Operations and Main- 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 May 1978 I Salina City Commission City-County Building 300 W. Ash Salina Kansas 67401 I I Dear Mayor and Conimissioners: I We are submitting this letter r2port as a sumn~ry of our analyses of the operating condition of thc >mter and se"er utility of the City of Salina, Kansas. The information contained herein Was develop cd through the cooperation of the City's water and sewer 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 operations gained through 30 years' experience as Consultants to the City. I I I Table 1 and Table 2 indicatE a lO-year history of population, number of accounts, water consumption and sewage flows. As can be seen the total water consumption trends generally incrcase with population increase although the per capita consumption shows a declining trend. The water consumption trend is expected to coutinue to decline moderately as costs of water increase, conservation practices bccome more desirable aud as regulatory standards become more strict. Se\.;age volumes have indicated , I I I I a dowm<ard trend in recent ycars and this trend is expected to continue due to regulatory requirements to minimize extraneous and excessive set,-age flm"s. I I Table 3 and Table 4 present 10-year histories of revenues and cxpenses in the water and sewer utility. The revenue: from the: sanitation department is derivcd from billing servic"s whi"h are performed as part of the regular water and sewage 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 CONSUMPTION 10-Year History, 1968 to 1977 Water Water Number of Pumped Metered Gal/Capita Year Population Accounts Million Gal. Million 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 2,193.64 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 SEWAGE VOLUNES 8-Year History, 1970 to 1977 Metered Number of Volume Year Po pula tion 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 wastewater 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 SEWERAGE DEPARTIlENT OPERATING REVENUE 10-Year History, 1968 to 1977 Water Sewer Sanitation Year Dept. Dept. Dept. Total 1968 597,731 349,462 2,943 950,136 1969 652,337 351,640 3,019 1,006,996 1970 670,807 357,771 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(4) 1977 (ad- justed) (2) 1,501,000 600,400 5,980 2,107,380 (1) New rate schedule for water sales effective 1 January 1973 (2) New rate schedule for water and sewer 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 I I I I I I I I I I I I I I I I I TABLE 4 TOTAL OPERATING EXPENDITURES WATER AND SEHERAGE DEPARTHENT 10-Year History, 1968 to 1977 Water Se~ler Year Dept. Dept. Total 1968 451.587 193,938 645,525 1969 499,402 210,605 710,007 1970 551,382 228, 108 779,490 1971 529,371 242,634 772,005 1972 518,101 240,128 758,229 1973 572,888 283,265 856,153 1974 705,157 314,787 1,019,944 1975 786,280 376,062 1,162,342 1976 866,584 423,904 1,290,488 1977 908,759 437,745 1,346,504 5 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 the water and sewage utility responsive to its customers. Minor 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 polley of the City requiring extension of the water and sewer utilities into new areas to be paid for by the developer of that area. This policy relieves the . Utili~y of initial financing of these improvements. Projected minor capital improvements are expected to vary from $50,000 to $200,000 annually and ftverage approximately $125,000.00. I I I I I I I Table 5 and Table 6 indicate projected population, number of accounts, operating revenues and expenditures for the water and sewer utility through 1997 and presents a summary of our study analyses. I I I I I I I I 6 I I 01 '" a l'l 0 0 0 0 0 0 0 0 0 0 0 0 I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 u a ..... VI '" co .... N N N '" 0;) '" 0 0 l'l 0 u . . .... " I1l '" '" .... '" co ..... '" M co M .,.. co ~ " '" ..... .,.. '" '" 0 '" co '" ..... "" VI +l Q) VI VI VI .,.. VI VI VI "" "" .,.. M .... 01 I z a <J> I ~~ 0 0 0 0 0 0 0 0 0 0 0 0 0 a 0 0 0 0 0 a 0 0 0 c ..... 01 VI 0 '" N VI M 0 0 VI .... M M U '" I1l '" M '" N M "" N 00 .,.. ..... '" co '" " 01 ..... VI N 0 00 00 '" '" VI '" '" '" I 01 '" 0 ..... N N M .,.. VI '" .... M .... Po>: . . . ow ..... ..... ..... ..... ..... ..... ..... ..... ..... N M <J> I 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 '" 01 0 '" ..... .... .... VI N '" M M M M ..... ;:J . . . . . . . u '" '" VI 0 '" N M .,.. .... 0 M N .... I1l '" "" .... .... '" VI 00 M "" VI co ..... N I " ;. VI . VI '" '" 00 co 0 0 ..... ..... .... M '" '" . . . . . . U) Po~ ..... ..... ..... ..... ..... ..... N N N N N M W 0 ~ <J> I ~ .... ~ ~ I1l u I w ..... '" Po ~ bOl1l 00 '" '" '" VI VI M N 0 0 VI .... I1l U I1l ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... 0 '" ..: "'.....'0 ...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ffi P......... I w I1l VI H P C> U) Z w :>< w H U) 1;; '" ~ '" el ~ l'l 0 I 0 .... H g '0 ..... .... ~ '" u " 0 ..... 0 N N M VI 0 VI VI "" N .... " PoC> .... ..... '" ..... N "" M "" M VI .... '" H '" a .... co .... co 00 co 00 00 00 co co 00 ;:1 u ;:J '" . . . . . 01 lJl 0 ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .... I w ~ "'..... Po< 0.... 0 u.... ..... co ~ w I H U W ..., <Il ~ 4-< U 0 0 0 0 0 0 0 0 0 0 '" 0 0 l'l N "" .... VI .... .... '" 00 "" M "" 0 Po< ;:J N "" '" 00 0 VI .... '" N "" co 00 I 0 . . . . . . . . . 0 u VI VI VI VI '" '" '" '" .... .... co 0 Z u ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .... N ..: I l'l 0 ..... 0 0 0 0 0 0 0 0 0 0 0 0 u 0 0 0 0 0 0 0 0 0 0 0 0 I1l 0 .... M 00 "" '" VI 0 .... N 0 0 I .... . . . . . . . . ;:J ..... ..... N N M M "" VI VI '" '" N .,.. "" "" .;t .;t "" .;t .;t .;t .;t "" VI 0 Po< I jl 00 '" 0 ..... N M .;t VI '" .... N .... .... .... 00 00 00 00 co 00 00 co '" '" I '" '" '" '" '" '" '" '" 0' '" '" '" ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... 7 I I I I I 1 1/ I I I I I I I I I I I I I Based on our analyses and projections of the City's Water and Sewer Utilities, a minimum annual net operating income of approximately $700,000 must be maintained through 1986 to provide appropriate debt service coverage and funds for annual minor capital improvements. To provide such funds an adjustment in the I~ater and Sewer Rate Schedules will be required periodically to increase total revenues to compensate for increased costs. 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 water 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 Beyond 1986 when the proposed refunding debt service decreases, net operating incomes of approximately $500,000 annually should be main- tained. Timely rate adjustments Idll be needed to produce the required operating revenues to provide for all operating expenses, debt service, projected minor capital improvements and bond coverage. I I I The City should continue its practice of reviel<ing I<ater and sel<age revenues and expenditures annually so that the appropriate rate adjust- . ments can be initiated. I WILSON & COMPANY I I J, -cry L. Nay, P.E. I -cw I I I I I I I I I 11 I