Memorandum
City of Lawrence
City Manager’s Office
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TO: |
City Commission |
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FROM: |
David L. Corliss, City Manager
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CC: |
Diane Stoddard, Assistant City Manager Cynthia Boecker, Assistant City Manager Dave Wagner, Director of Utilities Mike Lawless, Assistant Director of Utilities |
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Philip Ciesielski, Assistant Director of Utilities
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Date:
RE: |
January 29, 2009
Utilities Issues Update |
Background
As the City Commission is aware, the plans to proceed with the Wakarusa Water Reclamation Facility were temporarily placed on hold in late 2007 as a response to slowed community growth. Specifically, there were concerns that if the facility were constructed and growth continued to be slow, the rate base would not be present to support the financing of the facility. Additionally, there was a recognition that the facility required significant lead time for construction and was necessary to meet future growth demands. In short, there is a need to balance when the construction commences with updated anticipated short and long term growth projections.
A key issue at this time appears to be when and how the City should plan infrastructure to allow for Lawrence’s future growth needs. Staff believes that the City needs to begin progress on the Wakarusa Water Reclamation Facility in 2009. The issue of appropriate sizing of the facility is important given what we know today and projecting the near future. Also, there are other important needs, including airport utility infrastructure, the Bowersock Dam facility, and our water system needs that should be considered when planning for near and long term utility projects. These projects are also discussed in this memorandum. Planning ahead for these projects results in the most efficient and effective use of resources. Failure to plan ahead with updated master plans will result in the inability to accurately apply our resources. The 2003 master plan is now obsolete and inaccurate with its assumptions, particularly regarding population trends. For example, the 2003 Master Plan assumed a growth rate of over 2% annually. Actual recent trends, however, point to much slower growth. The average annual population growth from 2000-2007 was 1.66%. The average annual population growth in more recent years, 2005-2007 is under 1%, at 0.93%.
Key Background Dates:
On March 11, 2008, the City Commission authorized staff to advertise a Request for Proposals for professional engineering services to prepare a wastewater facilities master plan and for professional engineering services to design the expansion of wet weather storage at Pump Station 9 (Four Seasons).
On April 25, 2008 in response to the Request for Proposals for the wastewater facilities master plan, staff received proposals from four (4) groups interested in the project. Proposals were received from George Butler Associates, Inc.; Burns & McDonnell/BG Consultants, Carollo and Black & Veatch.
At the same time, staff received proposals from five (5) groups interested in the Four Seasons project. Proposals were received BG Consultants/Burns & McDonnell, Shafer, Kline & Warren, Black & Veatch, Olsson Associate/Peridian Group and Landmark Engineering Group.
On June 17, staff requested authority to begin negotiations with Burns & McDonnell/BG Consultants for the Wastewater Facilities Master Plan Project and Black & Veatch for the Four Seasons Project. The City Commission deferred action on the projects indefinitely at that time.
The Need for Wastewater and Water Master Plan Updates:
The current Water and Wastewater Master Plans were completed in 2003 and supersede the 1995 Water and Wastewater Master Plans. Interim updates focusing on specific areas of the City have been made to both sets of Master Plans, with the most recent involving the City’s northwest and southeast areas. The current Master Plans are five years old and based on data that is six or more years old.
Changes in the past five years decrease the reliability of the current Master Plans, including the following:
These changes are significant. As the Plans age, the projects and recommendations contained in them become less accurate and less reliable, thereby making it more and more difficult to ensure that limited funds are applied to the highest priority projects.
The 2003 Master Plans were based on an Urban Growth Area (UGA) established by the City for the T2025 Long Range Transportation Plan. Earlier last year, the Commission adopted the Transportation 2030 Plan, which included a new UGA. Since the adoption of the T2030 Plan, several sector plans have been started and are complete in a draft form. These are the West of K-10 Plan and the K-10 & Farmer’s Turnpike Plan. In addition, there has been recent interest in development at the airport. To be prepared for the growth and economic development of these areas, the water and wastewater infrastructure needed to support them must be analyzed and incorporated into a master planning process.
Peer Community Processes
Master plans and master plan updates serve as key planning tools for communities to plan for necessary capital improvements to meet future needs. The main criteria for updating master plans include changes in growth, changes to the system such as the implementation of capital projects and regulatory changes. Wichita, Manhattan, Topeka, Olathe, and Water One (Johnson County) were contacted to discuss their master planning processes. Below is a matrix outlining the master planning processes of several area peer communities, all of which utilize professional consultants.
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Community/System |
Population |
Master Planning Process/Capital Planning Process |
Master Plan Cost and Year last Completed |
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Wichita |
356,000 |
Try to update Master Plan on a 5 year cycle. Uses a model for water and wastewater systems. |
Water mater plan covering treatment and distribution for about $500,000 in 2006. Wastewater master plan covering collections and treatment for about $500,000 in 2005. |
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Manhattan |
51,000 |
Plan to be on a 5 year cycle. Uses a model for water and wastewater systems. |
Water master plan update covering water distribution and sewer collections for $192,000 in 2001. Wastewater master plan covering system model and CIP update for $266,000 in 2006. |
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Topeka |
121,000 |
Would like to be on a 5 year update cycle. Uses a model for water and wastewater systems. |
Water Master Plan for Treatment in 1994 for $251,000. Master Plan for distribution in 2002 for $207,000. Wastewater Facility Plan to update only the collection system model in 2002 for $35,000. |
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Community/System |
Population |
Master Planning Process/Capital Planning Process |
Master Plan Cost and Year last Completed |
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Olathe |
115,000 |
Olathe updates master plans for basins as needed, typically triggered based on significant expansion or capital improvement. |
Recently completed water master plan (2006 - $ 165,000); Build-out financial impact study (2008 - $ 115,000), not yet been presented to Council by finance dept.; Cedar Creek Wastewater Treatment Plan Facility Master Plan (2005 - $ 100,000); Cedar Creek Wastewater Treatment Plant preliminary engineering design (2008 - $295,000); Water and sewer rate study and model update ( 2008, approx $70,000) 6. Solid waste rate study and model (2007, $52,000
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Water One |
400,000 (135,000 customers) |
Master plan completed in the late 1970s; calls for 10 incremental phases targeted at certain daily water production- can be scaled back when population projections change. Updated approximately every 5 years, or as needed based on any significant changes. Includes both projects and financial plans. Utilize consultant. |
2008 update – approximately $100,000 |
All of these municipalities used engineering consulting firms to prepare their plans. In-house performance of studies of this magnitude would require a much larger staff or a dedicated redeployment of existing staff to a single project. This is not practical given the current staffing and projects that are underway or waiting to start. Consultants have experts in the many different areas covered by a master plan including collection and distribution systems, treatment processes, rate and system modeling and regulatory requirements. In addition, external preparation provides an independent assessment of our systems.
Wakarusa Water Reclamation Facility Project Status
Staff has performed a cursory review of the current loading of the Wastewater Treatment Plant compared with rated design capacity for several parameters. Loads have been increasing and all indicate the facility is operating at or beyond 90% of the rated design capacity. These include organic, solids, hydraulic and population parameters. It is staff’s conclusion that the plant has remaining capacity to support an increase in population and corresponding growth in commercial and industrial uses of about 10,000 people. This would indicate a total community of 100,000 people. Under conventional delivery construction methods, any major expansion of treatment capacity would take about five years to complete. Given the facility is at or slightly beyond 90% of its rated capacity a new Master Plan and evaluation of treatment capacity versus various growth rate projections needs to be completed in 2009. This work will help confirm the scope and timing for the needs for additional wastewater treatment capacity.
While staff’s focus has been mainly on wastewater and the Wakarusa WRF, that does not mean the water system does not need similar attention. As mentioned in the 2009 Budget Meetings there are new projects, changes and challenges facing the water system, e.g., Bowersock Dam improvements, the removal of meter limitations for the Rural Water Districts and the cost and viability of becoming a regional water supplier.
Lawrence Municipal Airport Utility Needs
One key issue for the future is meeting the utility infrastructure needs for the Lawrence Municipal Airport. The airport currently utilizes wells for its water source and a septic system for its sewer needs. While these systems have served the airport to date, these systems will not adequately serve the airport if development occurs on the airport. Over the past few years, the City has missed out on development opportunities at the airport as a result. Currently, there are several businesses contemplating the Lawrence Municipal Airport as the site for development projects. It is suggested that as part of future master plan updates, these utility needs are appropriately considered.
Bowersock Dam
As the Commission is aware, the Bowersock Dam facility has severe structural integrity issues. The Dam is needed by the Bowersock Mills and Power Company for its operation. Additionally, the structure is necessary to support the intake facilities for the Kaw Water Treatment plant and is necessary for the integrity of various bridge pier foundations downstream from Lawrence. This project should be contemplated in the Water Facilities Master Plan process. This would allow for the City Commission to discuss this project further and consider putting a rate plan in place to accommodate this substantial project in the near future.
Pump Station 9 (Four Seasons) Weather Storage Expansion Project
Improvements, including expansion of the wet weather storage capacity by 2.5 million gallons, to Pump Station 09, located west of 31st and Kasold, were identified in the 2003 Wastewater Master Plan. Proceeding with this project is cirtical as the additional wet weather storage is key to relieving collection system capacity issues and for the continuation of development along the 31st Street corridor.
Staff seeks authorization to begin contract negotiations with Black & Veatch for this project.
NPDES Permit Issues:
The City is currently working with the Kansas Department of Health and Environment (KDHE) and the U.S. Environmental Protection Agency (EPA) on the renewal of the City’s wastewater treatment permit for the Kansas River. One of the issues that has arisen during this review is the City’s use of Actiflo in its wastewater treatment operations. Actiflo is an additional treatment system which was installed by the City in 2003 at considerable expense in order to meet environmental regulations and ensure that during severe wet weather events, surcharge wastewater is treated rather than simply bypassed into the Kansas River. It fully met EPA and KDHE requirements when installed. In 2005, the EPA issued a draft policy that changes its interpretation on the implementation of the Clean Water Act. This new interpretation could make Actiflo obsolete. The City of Lawrence values environmental stewardship and has always worked to meet and exceed these regulations. The City staff is currently reviewing the draft policy and will hopefully be successful in getting the EPA to recognize Actiflo as an approved treatment process. Additional updates will be provided to the City Commission regarding this issue.
Funding
The current utility rate plan model includes limited CIP projects that primarily focus on maintaining the existing systems. However, completing new master plans will identify projects to address areas of the systems other than maintenance. These include the following project types:
In the current economic environment, it will be a considerable challenge to address and prioritize all of the needs identified and still provide reasonable rates for our customers.
The Master Plans are being included in the preparation of the 2009 CIP. Funding may come from cash projects or from the Non-Bonded Construction account by a budget authority transfer.
The Four Seasons Project is currently funded through the reallocation of the 2007 Revenue Bond Issue.
Recommendation
Authorize commencement of negotiations with the team of Burns & McDonnell/BG for the Wastewater Facilities Master Plan and with Black & Veatch for the Four Seasons Project. Both of these contracts would come back before the City Commission for final authorization.
Request authorization to advertise a Request for Proposals for professional engineering services for a Water Facilities Master Plan. In the future, a request to negotiate with a firm responding to the RFP will come back before the City Commission.