17. Authority to Request for Proposals - Water System Improvementscll O iS
Incorporated 1892
Telephone (406) 752-6600
Douglas Rauthe
FAX (406) 752-6639
Mayor
Post Office Box 1997
Zip 59903-1997
Bruce Williams
City Manager
Date: March 20, 1995
To: Al Thelen, City Manager
cry Council
From: John Wilson, Assistant City Engineer ,
Members:
Gary W. Nystul
Ward I
Purpose of Memorandum
Cliff Collins
The March 25 workshop agenda will present another opportunity for the City Council
ward I
to review and discuss the January 1995 Water Rate Study. The study was previously
Barbara Moses
discussed at the January 8 Council workshop and recapped in the follow up Summary
Ward 11
Report. This memorandum is to 1) present an alternative for recovering costs allocated
Dale Haar,
to fire hydrants, 2) inform the Council that the rate review need not be finalized before
Ward 11
bonds may be sold and 3)support our request that the sale of bonds proceed as quickly
Jim Atkinson
as possible, to enable construction of the new well and other water system
Ward III
improvements this summer. All except one of the proposed improvements are included
Lauren Granmo
in the F.Y. 96 budget.
ward III
Pamela B. Kennedy
�f
Action Requested Ward IV
Staff hereby requests authorization for -the sale of approximately $1,000,000 in water M. Duane Larson
revenue bonds to finance the five water system improvement projects discussed in this Ward IV
memorandum. Staff also requests authorization to advertise for engineering design and
inspection services for three of the five projects, as described below.
Alternative for Recovering Costs Related to Fire Hydrants
Bond financing details may be found in the attached memorandum from Amy
Robertson. The primary recommendation of the January 1995 Water Rate Study is the
revenue neutral transition to a simpler, more equitable rate structure. Included in that
recommendation is a continuation of the present policy, by which fire protection costs
are recovered from the General Fund through hydrant rental fees. Under the present
rate structure hydrant rental fees total $34,100 per year. The rate study recommends a
reallocation of costs which would increase the annual total to approximately $63,300.
In an effort to limit General Fund expenses, staff recommends that the hydrant rental
policy be eliminated and that fire protection costs be recovered through the bi-monthly
minimum charge on all water accounts. This policy would add $2.11 to all water bills,
with respect to the proposed water rates. Or, if the Council so chooses, hydrant rental
fees could continue to collect the present amount, $34,100 per year, from the General
Fund and the $2.9,200 increase in allocated costs could be recovered through bi-monthly
minimum charges. This policy would add $0.97 to all water bills, with respect to the
proposed water rates.
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The original recommendation for hydrant rental fees was based on past practices, but we have since
found that Great Falls is one community which recovers these costs through water rates. A decision to
transfer these fire protection costs from the General Fund to the bi-monthly minimum charge would not
change the revenue neutral aspect of the proposed rates, with respect to total revenue collected.
Bonding and Water System Improvements
When the Water Rate Study began in the fall of 1994, the staff's intention was to "clean up" the
rate structure and prepare for a rate increase, as necessary to meet bonding requirements for
several high priority water system improvements. Since that time, we have found the Water
Fund to be in better shape than anticipated. While a bond sale is still required to finance
recommended improvements, the present Water Fund cash now is adequate to satisfy bonding
requirements. Staff proposes that the sale of bonds proceed as quickly as possible so that these
improvements may be funded during the next construction season. The total cost of engineering
and construction for the recommended improvements is $865,000. Adding bond issue and
reserve expenses, staff recommends the sale of approximately $1,000,000 in water revenue
bonds. Please refer to Amy Robertson's memorandum with more detailed information on the
bond issue.
As the Council may recall, in past years the State Licensing and Certification Bureau, which oversees
health care facilities, has been emphatic in their demands that we improve the fire protection services
throughout the hospital area. The 1991 Hafferman Upper Service Zone (USZ) En 'neering Analysis
recommended a new well near the Community College to resolve this and other USZ problems.
Thomas, Dean & Hoskins was hired to design and inspect construction of that well system. The test
well was completed in October 1995 and design for the production well is about to proceed.
We propose that the sale of bonds move forward as soon as possible, while the engineering design is in
progress. Bonds could be sold within 90 days, making funds available to begin well construction and
other improvements by mid -summer. The Community College has asked that construction take place
during the summer months to avoid disruption of classes.
Given the current low interest rates, the expense of financing the bond issue and the need for numerous
water system improvements, staff recommends that the bond issue include funds for four other water
system improvements. All of these projects, with the exception of the South Woodland Drive water
main extension, are included in the F.Y. 96 budget.
The following list of high priority improvements was developed from the recommendations of the
Upper Service Zone Engineering Analysis prepared by Hafferman Engineering, the South Woodland
Facility Plan prepared by Thomas, Dean & Hoskins and the observations of the Public Works
Department staff.
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Projects Included in F.Y. 96 BudW
- North Side Water Well
Estimated Construction Cost - $415,000
Engineer - Thomas, Dean & Hoskins
The number one recommendation of the 1991 Hafferman engineering study is to construct a new well
as a second water source for the USZ. Thomas, Dean & Hoskins engineers have been hired to
provide design and inspection services for that project. The test well and preliminary design are
completed, the water rights application has been filed and easements are in place on the Community
College site. Final design work is set to proceed, with construction anticipated during the coming
summer.
14th Street East Water Main Improvements
Estimated Construction Cost - $40,000
Engineer - City Engineering Staff
The Public Works staff is currently designing a new storm water collection system in 14th Street
from 5th Avenue East to Dry Bridge Park. In conjunction with this work and before the street is
rebuilt, one block of undersized old cast iron water main will be replaced and another block of water
main will be added to create a loop between existing mains in 6th and 7th Avenues East.
- Liberty Street/Upper Service Zone South Loop
Estimated Construction Cost - $90,000
Engineer - Consultant (to be selected)
The concept of this project originated with a recommendation in the 1991 Hafferman engineering
study for a south loop on the USZ, connecting the water mains in Garland Avenue and Parkway
Drive. Through the years serious concerns have also developed about substandard fire flows and low
water pressure in the area west of Meridian Road between Three Mile Drive and Liberty Street. This
project would combine all of these issues with a south loop on the USZ, connecting the water mains
at Garland Avenue and Meridian Pointe. The work would include a short sections of new pipe,
reconfiguration of existing piping and the installation of one or more pressure reducing valves to
regulate pressure in the lower lying areas along Liberty Street.
Two Mile Drive Water Main Improvements
Estimated Construction Cost - $95,000
Engineer - Consultant (to be selected)
Houses along Two Mile Drive between Glenwood and Northern Lights Boulevard are presently
served by a substandard 2 inch water main. Also in this area, insufficient water main looping
contributes to the problem of marginal fire flows at the Two Mile Vista, Westwind Village and
Kalispell Senior Apartment complexes. A new connection between the water main west of Hawthorn
Drive and the water main in Glenwood Avenue would address these problems.
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Proposed Project
- South Woodland Drive Water Main Improvements
Estimated Construction Cost - $150,000
Engineer - Consultant (to be selected)
The water system on the southeast edge of town had developed with two dead end systems into the
South Woodland Avenue and Kelly Road areas. Marginal fire flows are a concern in the South
Woodland Drive area (Woodland Court) and both dead end systems are vulnerable to widespread
water outages in the event of a main break or shut down for repairs. A new water main along South
Woodland Drive between Kelly Road and the Woodland Court subdivision would eliminate these
problems while encouraging development of vacant lots which currently do not have access to
community water.
One engineering consultant would be chosen to design and inspect the Liberty Street and Two Mile
Drive projects, while another consultant would handle the work on South Woodland Drive. Both
consultants would be chosen through a single Request for Proposals. The total cost of engineering
services is estimated at $75,000. Construction would take place under two or three separate contracts.
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