Memorandum

City of Lawrence

City Attorney’s Office

TO:	David L. Corliss, City Manager
FROM:	Toni R. Wheeler, City Attorney
Date:	March 9, 2012
RE:	BMPC South Agreement -2012 Addendum

Please place on the City Commission’s agenda the attached BMPC South Agreement – 2012 Addendum.  At its regular meeting on December 6, 2011, the City Commission approved the City’s participation in the installation and maintenance of a rubber dam system.  The Commission directed staff to bring an agreement back to the Commission for approval.

Bowersock’s request came after the City had completed its Utilities Department budget for 2012 and after rate increases for capital improvement projects were already approved.  The 2012 payments will be made from Water and Wastewater Fund.  The multi-year payments to Bowersock will be subject to future appropriations.         

Key Components of the 2012 Addendum.   

Upstream Dam Maintenance:  As part of Bowersock’s construction of its new powerhouse on the north end of the Dam, Bowersock’s contractor, Kissick, will perform Upstream Dam Maintenance.  The City will reimburse Bowersock up to $295,000, paid in installments, and upon receipt of detailed invoices from Kissick showing the construction services provided. 

Rubber Dam Installation:  Rather than using the flashboards to control the mill pond levels, Bowersock intends to install and maintain a rubber dam system.  Under existing agreements with Bowersock, the City is required to pay for the flashboards.  Therefore, the City agrees to pay Bowersock the sum of $125,000, paid in installments, in consideration for Bowersock’s installation and maintenance of the rubber dam system. 

On-going Maintenance of Rubber Dam System:  From and after calendar year 2013, and in lieu of the City’s periodic payments for flashboards and related materials, the City will set aside, appropriate, and reserve funds for future maintenance of the rubberized fabric dam body and attachment hardware, in the amount of $18,000 annually until the existing agreements with BMPC are terminated or otherwise expire. 

The City’s contribution to Bowersock for the rubber dam system and the Upstream Dam Maintenance totals $424,000, plus the annual set aside of $18,000 for periodic maintenance of the rubberized fabric dam and attachment hardware. 

Action requested:  Authorize the City Manager to execute the BMPC South Agreement – 2012 Addendum.