Memorandum

City of Lawrence

Utilities Department

TO:	David L. Corliss – City Manager Cynthia Wagner - Assistant City Manager Diane Stoddard - Assistant City Manager
FROM: CC:	Mike Lawless – Asst. Director of Utilities Dave Wagner – Director of Utilities
	Philip Ciesielski – Asst. Director of Utilities Beth Frailey Krishtalka – Assistant to Director
Date:	November 7, 2012
RE:	November 13, 2012 Agenda Item – Adopting the 2013 Wholesale Water Charges

Please include the following item on the City Commission Agenda for consideration at the November 13, 2012 meeting:

Consider Ordinance 8821 Adopting the 2013 Wholesale Water Charges.

Project History/Status

On October 16, 2012, the City Commission approved the wholesale water agreement with Baldwin City. On November 5, 2012, Baldwin City also approved the agreement. The agreement set Baldwin’s wholesale water rate at $2.91 per 1,000 gallons. The rate contained in the Baldwin City agreement is the same wholesale rate that was used to construct the approved 2013 Budget.

Status: 

Utilities staff is currently working on multiple Capital Improvement Program (CIP) scenarios for Commission consideration. These scenarios will determine the water and sewer revenues and rates needed to provide the appropriate level of funding. In each of the prepared scenarios the wholesale water rate is the same as contained in the 2013 Budget and the Baldwin City Wholesale Water Agreement.

In May the wholesale water customers where informed that the recommended 2013 wholesale water rate would be $2.91 per 1,000 gallons. In order to have this rate take effect on January 1, 2013, the City Commission must adopt the rate by ordinance. The City Attorney’s Office has prepared Ordinance 8821 establishing the 2013 Wholesale Water Rate.

Action Request: 

Staff recommends approval of Ordinance 8821 adopting the 2013 Wholesale Water Charges.