Memorandum

City of Lawrence

Utilities Department

To:	Dave Corliss, City Manager
From:	Dave Wagner, Utilities Director
cc:	Debbie Van Saun, Assistant City Manager Casey Toomay, Budget Manager
Date:	May 31, 2007
Re:	2008 Department of Utilities Budget

The City of Lawrence Utilities Department is committed to sustaining excellent water and wastewater operations consistent with the goals of the City Commission, community needs and regulatory requirements, now and in the future. In support of that commitment, I am pleased to submit the Department’s fiscal year 2008 Recommended Budget Request and Proposed Program Improvements for your consideration and approval.

Funded from the 501 Water/Wastewater Fund, the Budget reflects a proposed 2008 Operations and Maintenance Budget totaling $22,784,818, of which $1,819,853 is budgeted for Utility Billing. In addition, a total $510,869 in Program Improvements has been proposed. This Recommended Budget Request supports 134 employees (including 22 Utility Billing employees); two water treatment plants; one wastewater treatment plant; a water distribution system of approximately 420 miles of pipe and related infrastructure; and a sanitary sewer collection system of approximately 400 miles of pipe and 34 lift stations.

The Department’s mission is to provide safe, clean drinking water to City residents and other users and to return wastewater safely to the environment in compliance with regulatory requirements through cost-effective, efficient and continuously improving operations. System-wide capacity, management, water quality and process reliability are key to sustaining the Department’s nationally recognized operational excellence and to meeting forecasted population growth.

Consistent with its mission and these goals, the Department is extending its proactive management system and process automation approach across all operations. One expected outcome is improved capacity to identify and address the community’s water taste and odor concerns in response to the 2007 Citizen Survey. A substantial infrastructure and facilities program is underway, including the ongoing Clinton Water Treatment Plant expansion, the to-be constructed Wakarusa Wastewater Reclamation Facility and other significant infrastructure improvements and expansion. Structurally, the Department is reorganizing from a water and wastewater operational structure to an operational and technical structure for optimal staff alignment, deployment and expertise across water and wastewater operations.

The 2008 significant issues are as follows:

• Implementation of proactive system processes to address the community’s water taste and odor concerns as identified in the 2007 Citizen Survey.
• A substantial infrastructure development and expansion program, including the to-be constructed Wakarusa Wastewater Reclamation Facility, Clinton Water Treatment Plant expansion and regional wastewater pump station, collection system and water distribution system additions.
• Operational and process improvements through department-wide automation, implementation of the management system and staff reorganization.
• Stewardship of and improvements to aging utility infrastructure.
• Debt financing and adjusted utilities rates as needed to fund the above infrastructure and expansion program and system improvements.
• Increasing regulatory requirements for water and wastewater operations.

With respect to 2008 Program Improvements, we are requesting a total of eight positions and one improvement program at a total cost of $510,869:

1. The addition of one new Maintenance Mechanic related to the Clinton Plant expansion;

2. The addition of one new Network Technician position to support expanding technological and automated operational networks;

3. The addition of one Operations Supervisor for utility maintenance related to system growth;

4. The addition of one Engineering Technician to support the expanded Engineering Division;

5. The addition of one Operations Supervisor for wastewater line maintenance related to system growth;

6. The addition of one Plant Operator related to growth in water demands and improvements to the two water plants;

7. The addition of one new Collection System Operator related to system growth;

8. The replacement of three staff vehicles with new fuel-efficient hybrid vehicles;

9. The addition of one new technical staff member to the Engineering Division to monitor compliance with the Backflow Prevention and Cross Connection Control Program and other 6293 Ordinance compliance.

Thank you for your consideration of the Utilities Department’s 2008 Recommended Budget Request and Proposed Program Improvements. I stand ready to answer any questions or provide any additional information you may need.