Loading...
05 Promissory Notes Res 2007-406 FINANCE ADMINISTRATION MEMORANDUM ~ May 22, 2007 FROM: Steven E. Sheiffer, City Manager Jacob J. Winzenz, Assistant Director of Administrative Services C)')W TO: SUBJECT: Proposed Resolution Authorizing the Issuance of $13,275,000 in Promissory Notes for Financing Various Public Purposes (File Res. #2007-406) Please find attached proposed Resolution #2007-406 (Exhibit I) which would authorize the Administration to issue promissory notes in the amount of $13,275,000. Of this amount, $4,935,000 is General Fund debt and corresponds to the funding approved in the 2007 Debt Fund - Major Capital Projects budget. Wisconsin State Statutes govern the issuance of general obligation debt and specifically identify those items for which debt may be incurred. We have structured the resolution so that the individual projects would be grouped into those categories specifically referenced by State Statutes. Please reference the attached Summary Schedule (Exhibit II), which indicates in greater detail the individual projects referenced by the resolution and compares the funding requested with the amount identified in the 2007 Capital Projects Budget. In addition, we have included a report which describes the scope of the individual projects (Exhibit III). Notes were issued in the December 2006-A note sale to partially fund several projects included in the 2007 Capital Projects Budget. The remaining funding for these projects is included in the proposed note authorization resolution: DESCRIPTION DECEMBER 2006.A Street Extensions $785,000 $879,000 $1,664,000 Storm Sewer Extensions 205,000 545,000 750,000 Water Main Extensions 285,000 655,000 940,000 Sewer Extensions 300 000 800 000 1 100000 TOTAL $1 575 000 $2.879.000 . $4,454.000 The 2007 Capital Projects Budget contained nine (9) projects for the 2007 note issue that have not been included in the proposed note authorization resolution: DESCRIPTION . . .' .....AMO.lJIH . STH 11/US14 - Desian (Wriaht to CTH Q) $ 20,000 New Landfill- Lanr:l-Term Care and Closure 230,000 New Landfill - Initial Site Const. - Year 5 fundinr:l 320,000 Northwest Pressure Zone 466,000 Water Tower and Pumpina Station 2,704,000 East Side Reservoir Desian and Site Acauisition 400,000 Sewer Mains - North Parker Drive 950,000 I ~""'AI""'" fo.A.,inC' _ t\lnrfh\AlnC'+ ~i..-.ln fo.A..,in", ,),)'1f'1f'1f"1 I Sewer Mains - Northwest Side - Mains 332,000 Sewer Mains - Northwest Side - Lift Station 148 000 TOTAL $5.750.000 . The improvements to State Highway 11/U.S. Highway 14 have been scaled back from a reconstruction and widening project to a resurfacing project. At this time we do not know if additional local funding will be necessary. . Funding for New Landfill- Long-Term Care and Closure will be taken from the Landfill operating budget. Over the last three (3) years we have been able to transfer between $280,000 and $300,000 per year from the landfill operating budget to fund construction of the new landfill. That transfer will not be necessary in 2007 so those funds can be re-directed to pay for Long- Term Care and Closure. . The original financing plan for the New Landfill - Initial Site Construction proposed funding in 2007 ($320,000). However, due to the transfers from the landfill operating budget described above, construction costs have been paid and no additional funding is necessaryforthis project. . Notes to fund the Northwest Pressure Zone were included in our December 2006-A note sale ($422,000). . Notes to fund the Water Tower and Pumping Station were included in our December 2006-A note sale ($2,628,000). . The Community Development Department is currently updating the Comprehensive Plan for the City of Janesville which will outline future growth patterns. Therefore, the East Side Reservoir Design and Site Acquisition project is premature until that planning process is further along. . Sewer Mains - North Parker Drive has been delayed. This project will be needed to support development proposals along North Parker Drive north to Highway 51, including a possible expansion of the Rock County Jail. However, these projects are not ready to proceed at this time. . Notes to fund the Sewer Mains - Northwest Side - Mains were included in our December 2006- A note sale ($275,000). . Notes to fund the Sewer Mains - Northwest Side - Lift Station were included in our December 2006-A note sale ($100,000). It should be noted that funding for two (2) projects included in the 2007 Debt Fund - Major Capital Projects budget (Intersection Improvements ($100,000) and Railroad Crossing Improvements ($80,000)) have been reallocated and incorporated into the Street Maintenance and Improvements project ($500,000). Conversely, the 2007 Capital Projects Budget did not contain the following projects, which have been included in the proposed note authorization resolution: DESCRIPTION . .. . . AMOUNT I E. Rotamer Road Desion IWrioht Rd. - Townhalll $ 40,000 Street Maintenance and Imorovements 500,000 Greenbelt Protection 20,000 Fire Station #1 - Site Acouisition 350,000 Hedbero Public Librarv 125,000 Landfill Comoactor 480 000 TOTAL $1.515.000 2 . East Rotamer R08n from \Mrinht 0,/,,\......,.4 ""...... ,........._1-_" ....... . East Rotamer Road from Wright Road to Townhall Road is scheduled for reconstruction to urban standards in 2009. This funds the City's portion of the design costs. The City's street infrastructure is aging and additional funding is necessary to maintain and improve that system. Projects may include items such as road resurfacing, intersection improvements, or railroad crossing improvements. Concerns have been identified regarding pedestrian safety where several sidewalks cross greenbelts. Railings are proposed to address these safety concerns. Additional funds are needed for site acquisition and design for the replacement/relocation of Fire Station #1. The Hedberg Public Library is now eleven (11) years old and routine building repairs and maintenance are necessary as are renovations are necessary to address operational inefficiencies. The City of Janesville Landfill currently operates with one (1) compactor. With increased volumes of waste and aging equipment a second compactor is necessary. . . . . . State Statutes specifically identify the procedural process involved in issuin9 both general obligation bonds and notes. Unlike the process required for issuing bonds, which requires separate actions to authorize and establish the bond details, promissory notes can be approved in one comprehensive resolution. However, we recommend that the Council follow the two-step process in authorizing and issuing the debt. Therefore, on Monday, June 11,2007, the Council will be requested to adopt the companion details resolution, which will finalize the projects and their corresponding funding levels. The attached initial resolution sets forth the maximum amount of notes that can be issued; whereas, the details resolution will set the final amount of the notes authorized. The Administration will distribute detailed information and graphics showing the fiscal impact of this note sale with the details resolution. We have scheduled the note sale to take place on Monday, June 25, 2007. The bid opening will be held at 1 :00 P.M., and the Council will be requested to award the sale by adopting the award resolution that evening, which will indicate the "best bidder." We anticipate receiving the note proceeds on July 10, 2007. Our financial consultant has estimated that the note issuance expenses will not exceed $43,600. We intend to charge these expenses directly to the 2007 operating budgets of the various accounting entities on a prorata basis. The Administration requests that the Council review the proposed projects, identify any additional informational needs that they may require, and adopt the proposed Resolution #2007-406 authorizing the issuance of promissory notes not to exceed $13,275,000. The resolutions authorizing, detailing and selling the notes are adopted by a majority vote of all members of the Council. Attachments J:\Finance & Administration\Finance AdministrationiDebtWote IssuelSpring 2007\/nitial Memo 2007-406.doc 3 EXHIBIT I RESOLUTION NUMBER 2007-406 RESOLUTION A UTHORIZING THE ISSUANCE OF $13,275,000 IN PROMISSORY NOTES FOR FINANCING VARIOUS PUBLIC PURPOSES WHEREAS, Section 67.12(12) Wis. Stats., authorizing any Wisconsin municipality to issue promissory notes as evidence of indebtedness for any public purpose as defined in Section 67.04(1)(b), Wis. Stats., and for general and current municipal expenses, including interest thereon; and WHEREAS, pursuant to Section 67.04(4), Wis. Stats., the legislature finds that contracting of debt under Chapter 67, Wis. Slats., for any project constitutes a public purpose; and WHEREAS, the following public projects and purposes fall under the scope of Section 67.04(1)(b) AND 67.12(12), Wis. Stats.: $3,314,000 to construct and improve streets; $1,050,000 to construct and improve storm sewers; $1,142,000 to acquire, improve and maintain parks and public grounds; $3,084,000 to acquire, improve and maintain public buildings and grounds; $1,150,000 to acquire capital equipment; $510,000 to construct and close landfills; $1,225,000 to extend and improve the waterworks system; and $1,800,000 to extend and improve the sanitary sewer system; and WHEREAS, such above proposed public projects and purposes and the issuance of such promissory notes will be beneficial to the City and in the best interest of the community; NOW, THEREFORE, Be It Resolved by the City Council for the City of Janesville that: 1. The City of Janesville may, pursuant to Section 67.12(12) Wis. Stats., have up to thirteen million, two hundred seventy-five thousand dollars ($13,275,000) in municipal promissory notes to finance various public projects and purposes as follows: $3,314,000 to construct and improve streets; $1,050,000 to construct and improve storm sewers; $1,142,000 to acquire, improve and maintain parks and public grounds; $3,084,000 to acquire, improve and maintain public buildings and grounds; $1,150,000 to acquire capital equipment; $510,000 to construct and close landfills; $1,225,000 to extend and improve the waterworks system; and $1,800,000 to extend and improve the sanitary sewer system. 2. Each promissory note so issued, plus interest, shall be repaid within ten (10) years after the original date of the note pursuant to Section 67.12(12), Wis. Stats. , ~. J anesville. Each such promissory note issued shall constitute an indebtedness of the City of ADOPTED: Motion by: Second by: Councilmember Aye Nay Pass Absent Brunner DeGarmo Loasching Steeber Truman Wellnitz Williams APPROVED: Steven E. Sheiffer, City Manager ATTEST: Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: U/ud{ ~ . 4' City Attorney '"7 /' Proposed by: Administrative Services Prepared by: Administrative Services 2 EXHIBIT III Z007 NOTE ISSUE PROJECT DESCRIPTIONS Construct and Improve Streets - $3,314,000 . Major Streets - $395,000 The reconstruction of East Court Street from Main Street to Garfield A venue is scheduled for 2007. The estimated cost of this improvement (design and construction) is $1,405,000. The Federal STP Urban Program will provide $1,090,000, with the remaining $315,000 to be provided by the City of Janesville. The City's share will be funded from two sources: Special Assessments ($35,000) and the General Fund ($280,000). The existing concrete pavement will be removed and replaced with new concrete. The reconstruction of Mineral Point Avenue from Austin Road east 1,300 feet to Parker High School is scheduled for 2007. The existing rural section will be replaced with an urban (curb and gutter) section, sidewalks, storm sewers and bicycle facilities. The project estimate has increased to $260,000. Initial funding ($220,000) was provided in 2006 with funding from Special Assessments ($95,000) and the General Fund ($125,000). The General Fund portion included the Special Assessments for the town ($95,000) and the General Fund ($30,000). In 2007, an additional $40,000 is needed to complete this project, with funding from the General Fund ($40,000). The reconstruction of East Rotamer Road from Wright Road to Townhall Road is scheduled for 2009. The existing rural section will be replaced with an urban (curb and gutter) section, sidewalks, storm sewers and bicycle facilities. The estimated total cost of this improvement (design and constmction) is $1,817,000. The Federal STP Urban Program will provide $1,453,000, with the remaining $364,000 to be provided by the City of Janesville. Design work for this improvement is scheduled for 2007 with an estimated cost of $213,000. The Federal STP Urban Program will provide $170,000, with the remaining $43,000 to be provided by the City of Janesville. The 2007 Note Issue includes $40,000 from the General Fund to fund the design phase of this improvement. . Street Extensions - $879,000 This program totals $1,664,000 and represents actual bid prices for streets to be constructed in 2007 in new developments for the Spring Public Works Program ($1,640,000) and additional funding for streets included in the 2006 Public Works Program (24,000). The Winter 2006 Note Issue included $785,000 for this program which reduces the proposed borrowing to $879,000. Funding for these improvements is provided through Special Assessments ($1,550,000) with the balance ($114,000) being provided by the General Fund. Of the amount provided by Special Assessments, $785,000 was included in the Winter 2006 Note Issue leaving a balance of $765,000 to be included in this Note Issue. J:\Fin:mce & Administration\Fioance Administration\Debt\Note Issue\Spring 2007\Project Descriptions.doc jjw 5/23/2007 Project Descriptions 2007 Note Issue Project Descriptions . Miscellaneous Streets - $440,000 Page 2 of 9 This program provides $30,000 for the temporary grading and graveling of new streets following the installation of sewer and water mains in 2006 and 100% of this cost is assessed. It also includes $390,000 for curb and gutter replacement approved in the 2007 Spring Public Works Program. Approximately $160,000 of the curb and gutter replacement cost for 2007 will be assessed to the abutting property owners; however, $30,000 is available from the 2006 Special Assessment borrowing to decrease the special assessment borrowing to $130,000. The remaining $230,000 will be provided by the General Fund. In addition, $50,000 is required from the General Fund to fully fund the 2006 program. . Ruger Avenue Bridge Replacement (Design) - $10,000 The replacement of the Ruger Avenue Bridge over Spring Brook is scheduled for 2009. The estimated total cost of this improvement (design and construction) is $546,000. The Federal Bridge Replacement Program will provide $438,000, with the remaining $108,000 to be provided by the City of Janesville. Design work for this improvement is scheduled for 2007 with an estimated cost of $62,000. The Federal Bridge Replacement Program will provide $50,000, with the remaining $12,000 to be provided by the City of Janesville. The 2007 Note Issue includes $10,000 from the General Fund to fund the design phase of this improvement. . Downtown Signal Replacement - $90,000 Funds are proposed for the replacement of several aging downtown traffic signals primarily along Milwaukee Street. These signal systems are experiencing malfunctions and it is increasingly difficult to find replacement and spare parts for the controllers. In addition, this project will include improvements necessary to coordinate the timing of the traffic control system and add fire pre-emption devices. . Sidewalks (New Program and Replacement) - $1,000,000 This program totals $1,000,000 for the construction of new sidewalk and the replacement of deteriorated sidewalk andlor sidewalk with other safety deficiencies. The sidewalk program is primarily funded through Special Assessment with 80% of the costs ($800,000) being assessed to abutting property owners. General Fund costs total $200,000 and include expenses such as curb ramp replacements, sidewalk crossing city owned property (greenbelts, parks, etc.) and other miscellaneous cost typically paid by the city at large. . Street Maintenance and Improvements - $500,000 This program includes funds to increase maintenance of City streets and make various other improvements to the street network such as intersection and railroad crossing improvements. This is a 5-year program which should allow the City to catch-up on its street maintenance activities. The 2007 Note Issue includes $500,000 for this program. ..VVI J.'Vt.~ .J.~~U~ PrniJ:Jll"t ntlo~l"rintinn~ rage j 01 Y 2007 Note Issue Project Descriptions Construct and Improve Storm Sewers - $1,050,000 Page 3 of9 . Storm Sewer Extensions - $545,000 This program totals $750,000 and represents actual bid prices to extend storm sewer for streets to be constructed in 2007 in new developments on the Spring Public Works Program ($385,000), as well as an estimate for storm sewer extensions to be constructed in the Fall Public Works Program ($365,000). The Winter 2006 Note Issue included $205,000 for this program which reduces the proposed borrowing to $545,000. Funding for these improvements is provided through the Stormwater Utility. . Storm Drainage Structures - $485,000 Storm drainage structures primarily consist of detention/retention ponds, greenbelts, overland flow routes and other facilities to prevent flooding from major storm events. The program proposed for 2007 supports the construction of ponds and greenbelts in new subdivisions including Wright Road Greenbelt ($240,000), Rock Prairie Greenbelt and Pond ($185,000) and Emerald Estates Pond ($60,000). . Greenbelt Protection - $20,000 In several locations where sidewalks cross greenbelts the sidewalk also goes over the top of a storm drainage structure (culvert). These locations present potential hazards if a person were to fall from the sidewalk into the greenbelt at the culvert location. This project will install railings at the top of critical storm drainage structures in greenbelts that present a fall hazard. Acquire. Improve & Maintain Parks and Public Grounds - $1,142,000 . Renovate Playgrounds/Maintain Equipment - $72,000 This project includes funding for two primary activities. In 1996, the City began a program to renovate/replace playground equipment in neighborhood parks. To date, renovations have been completed at 28 neighborhood parks at a cost of approximately $35,000 for each neighborhood park. The renovation/replacement of playground equipment will continue in 2007, with improvements proposed for Holiday Park ($35,000). Palmer Park contains the central outdoor tennis facilities for the City of Janesville. At this facility there are nine lighted tennis courts for public use. The light poles and fixtures are rusting, fading, chipping and in need of painting which requires a painting contractor. The light fixtures have not been painted since they were originally installed. This project provides for the painting of29 metal light poles and 54 light fixtures at a cost of$27,000. . Aquatics Facilities Improvements - $1,000,000 In 2006, initial funding ($255,000) was included for aquatics facilities design and improvements. An 18-member citizen committee, with the assistance of a consultant, has reviewed our current Project Descriptions 2007 Note Issue Project Descriptions aquatic facilities and prepared a recommendation for future aquatic facilities in Janesville. Their recommendation totaled $9,000,000 in three phases: Page 4 of9 o Phase I ($5,250,000) includes funding to build a new medium swimming pool with amenities at Palmer Park ($5,000,000) and a splashpad at 4th Ward Park ($250,000). o Phase II ($3,000,000) includes funding to renovate Rockport Pool with a small shallow pool ($2,500,000) and two splashpads at Riverside Park ($250,000) and Kiwanis Park ($250,000). o Phase III ($750,000) includes funding for three splashpads at Palmer Park (to replace the current wading pool), the Northeast Regional Park and at a Southside Park ($750,000). It was originally anticipated the aquatic projects would cost $4,000,000 with initial funding of $2,000,000 proposed in the 2007 note issue and the remaining funds provided in 2008 ($1,000,000) and 2009 ($1,000,000). With the size of the committee's recommendation and the need for additional review and public comment, it is unlikely significant construction will occur in 2007. However it is desirable to move forward with the funding of this project to spread the debt over a number of years so $1,000,000 is included in the 2007 note issue. . Bike Trail Improvements - $70,000 A new bike trail will be constructed on the City's south side. This proposed bike trail will connect Jackson Elementary School with the Highway 11 bike trail ($70,000). Funding for this project will be provided by Tax Increment Finance (TIF) district #22. Acquire, Improve & Maintain Public Buildine:s and Grounds - $3,084,000 . Transit Services Building - $475,000 A new Transit Administration and Maintenance Building is proposed to replace the existing facility located on North Parker Drive. The existing facility was constructed in 1961 as a public works garage and became the Transit Maintenance Facility in the mid-1960s. An addition was constructed in 1979 to provide a dedicated area for vehicle maintenance. In 2006 $100,000 was provided to fund the feasibility study and develop the building program. A new facility is estimated to cost $4,700,000, with 80% ($3,760,000) funded by the Federal Transit Act and the remainder ($940,000) provided by the City of Janesville. In 2007, land acquisition costs ($350,000) and design costs ($125,000) are proposed for funding. . Wastewater Treatment Plant Improvements - $2,000,000 In 2007, funds are proposed for Wastewater Treatment Plant improvements totaling $2,000,000. The Wastewater Utility is involved in a study to evaluate the overall conditional capacity of the Treatment Plant, optimization of electricity at the plant and overall sludge management practices. In 2006, funds were included to begin the design or implementation of the study's recommendations ($100,000). Funding for 2007 will be utilized to continue implementation of the study's recommendations. .GUU I l'lUU: 1:'):')UC ..I. abc: ~ Ul :7 n~~:....... n......."....:.......~^n~ 2007 Note Issue Project Descriptions Page 5 of 9 . Building Repairs - $134,000 Each year, funds are required for minor building maintenance projects at City facilities. In 2007, improvements totaling $134,000 are proposed for several public buildings. The locations include the Municipal Building, the City-owned building at 200 W. Milwaukee Street, and various park and recreational facilities. . Central Fire Station and Administration - $350,000 The central fire station and administrative offices (Fire Station #1) was constructed in 1957 and no longer meets the space or operational needs of the Fire Department. An analysis of response times and ambulance/engine call data is underway and staff plans to present a report to the City Council in 2007 with recommended station locations. This proposal provides $350,000 which, when combined with the 2006 funding ($150,000) should be sufficient to pay site acquisition costs and begin the design process. . Hedberg Public Library - $125,000 The Hedberg Public Library was constructed in 1996 so the building is now eleven years old. This project proposes funding for ongoing general building maintenance needs ($50,000) as well as renovations to the library to improve the efficiency of operations ($75,000). Acquire Capital Equipment - $1,150,000 . Portable Generator - $100,000 A 150KW portable generator is proposed for the Water Utility. This generator will be able to provide electricity in the event of an extended power outage for two (2) water pumping stations. These pumping stations transfer water to higher pressure zones of the distribution system ($100,000). . Public Safety Equipment - $70,000 Funding is proposed to replace three vehicles in the Fire Department: a 1997 shift command vehicle ($26,000), a 1997 compact sedan ($13,000), and a 1998 compact pickup truck ($17,000). In addition, funding is provided to equip these vehicles with emergency equipment necessary for Fire Department operation ($14,000). . Technology Enhancements - $200,000 The City will continue implementation of the Information Technology Strategic Plan. This plan addresses maintaining the current information technology infrastructure and improving the efficiency of City services and providing citizen satisfaction through the use of information technology. In 2007, funds are requested from the General Fund ($100,000), Water Utility ($50,000) and Wastewater Utility ($50,000) to obtain consulting services and purchase hardware and software for the implementation of specific City-wide information technology priority proj ects, as determined by the City Manager. Project Descriptions 2007 Note Issue Project Descriptions Page 6 of9 . Police Communication System - $190,000 in 2007, funds are proposed to upgrade the Police Communication System ($190,000) to address coverage issues ($83,000) and replace approximately 106 aging and obsolete portable radios ($107,000). The Police communications system has particular coverage issues in the southwest area of the City and in the north/east growth areas. With the impending annexation of the Rock County Airport and surrounding properties, and proposed residential developments to the north and east, this issue will become more critical. in addition, a majority of the portable radios used by police officers are ten years old, with as old as fifteen years. The average life expectancy of a portable radio is seven years. . Hedberg Public Library - $110,000 The current automated system was purchased in 1996 with funds the Library raised as part of the capital campaign for the new library. That system includes the public catalog and modules for circulation, acquisitions, cataloging, serials, the web catalog and automated telephone and e-mail notification. The total cost to replace the automation system ($205,000) and all staff and public computers ($230,000) is $435,000. Funds were borrowed in 2005 ($205,000) and 2006 ($120,000) and funds are proposed in 2007 ($110,000). . Landfill Equipment - $480,000 The volume of trash being brought to the Sanitary Landfill has increased dramatically in the last two years. In order to accommodate this increased volume, in 2007 the City rented an additional compactor at a cost of $15,000 per month. A landfill compactor compresses the trash being dumped in the landfill allowing more trash to be deposited in the same amount of space. Given the projected trash volumes at the landfill, a second compactor is being proposed at a cost of $500,000. The current compactor was purchased in 2005 and has a life expectancy of five years. This piece of equipment is experiencing more frequent breakdowns which creates operational issues. A second landfill compactor will allow for increased compaction thus extending the life of the landfill and will also provide redundancy in the event the current compactor experiences mechanical problems. The remaining portion of the funding ($20,000) will be provided from funds borrowed in 2006 for the construction of the current landfill. Construct and Maintain Solid Waste Disposal Facilities - $510,000 . New Landfill - Phase 2 Construction - $300,000 The constmction of Phase 2 at the Landfill is expected to begin April 2007. In 2007, initial funding is proposed ($300,000) with the remainder of the project costs provided in 2008 and 2009. Total project funding will be $900,000 for the construction of Phase 2. . Horizontal Gas Collection System - $60,000 A temporary horizontal gas collection system is required by the DNR as a condition of approval for the operating Sanitary Landfill. The temporary system will allow the City to place the permanent gas collection header pipe system above the plastic membrane at final closure. This I Llbt: I Ul::1 Prniprt Oplio:rrintionli: 2007 Note Issue Project Descriptions will significantly reduce long-term maintenance costs related to the permanent system. The City proposes to implement a horizontal gas collection system at the Landfill, with funding ($60,000) proposed in 2007. Page 7 of9 . Maintenance Facility/Fuel Tank - $150,000 A new maintenance facility and fuel tank is proposed to support the operating Landfill at a total cost of $300,000. The existing facility was constmcted in 1985 and has a limited capacity. A new Landfill Maintenance Facility and fuel tank will support the operating facility for its projected remaining useful life of 13 years, and would also provide support for possible future expansion. On April 23, 2007, the City Council awarded Public Works Contract 2007-9 in the amount of $252,150 for the construction of the maintenance building and on May 14, 2007, a contract in the amount of $33,170 was awarded for the fuel tank. The balance of the project ($ I 4,680) will used for site paving and construction contingency. In 2007, initial funding ($150,000) is proposed for a Landfill Maintenance Facility and fuel tank, with the remaining funds ($150,000) provided in 2008. Construct and Extend Water Mains - $1,225,000 . System Improvements - $400,000 This program is needed to replace undersized water mains (from 1-1/2 inch up to 4-inch main) in the distribution system. There are approximately 12 miles of undersized main in the system. Replacement is done in coordination with street restoration projects. Funds requested will replace about 3,850 feet of main ($400,000). . Main Extensions - $655,000 This program totals $1,020,000 and represents actual bid prices to extend water mains for new developments on the Spring Public Works Program ($660,000), as well as an estimate for water main extensions to be constmcted in the Fall Public Works Program ($360,000). Approximately $890,000 will be assessed to developers with the remainder of the cost ($130,000) being paid by the Water Utility. The total borrowing is reduced by $365,000 due to $80,000 in carryover funds from the 2006 Note issue ($75,000 - Special Assessments and $5,000 - Water Utility), and the Winter 2006 Note Issue ($285,000 - Special Assessments). . Water Laterals - $120,000 Water laterals are included as part ofthe improvement process with water mains and are installed at the same time. The amount includes $120,000 for new lateral work for 2007 programs. . Lead Service Replacement - $50,000 In 2005, the Water Utility implemented a lead services replacement program within the City. This program is similar to the iron service replacement activities the City has historically undertaken. The actual cost of this program will vary from year to year based upon the number of lead services under streets that are being reconstmcted in any given year. Currently, there are Project Descriptions 2007 Note Issue Project Descriptions about 2,560 lead services in the City. In 2006, 25 lead services were replaced. In 2007, the Water Utility proposes to replace 35 lead services ($50,000). Page 8 of9 Construct and Extend Sewer Mains - $1,800,000 . System Improvements - $900,000 This program totals $900,000 and has projects that fall into three primary categories: o Sanitary Sewer Repairs - $300,000 Several sanitary sewer repair projects were identified totaling $300,000 in 2007. The City's sanitary sewer system has four (4) existing siphons to convey the sewer flow from one side of the river to the other. An Engineering inspection indicates that three of the four are in need of repair ($90,000). Several manholes on Rockport Road need rehabilitation due to the significant infiltration from these manholes and at least four (4) manholes are proposed for rehabilitation in 2007 ($100,000). The removal and relocation of a 36-inch sewer main that is exposed at the flow line of Springbrook, which has caused flow obstruction and deteriorated conditions of the shoreline, is proposed in 2007 ($110,000). o Sewer Lining - $500,000 Janesville has approximately 140 miles of clay pipe in the sanitary sewer collection system that ranges in age from 40 to 100 years. Most of the clay pipe is structurally sound, but suffers from root intrusion and infiltration of groundwater. The 2007 Budget proposes $500,000 of funding, which will reline about 3 - 3-1/2 miles of sanitary sewer main. This is the seventh year of a multi-year program, which reduces the potential for clogged sewers resulting from root growth and also ensures the continued structural integrity of the clay sewers. o Inflow/Infiltration Reduction - $100,000 A six-year program, estimated to cost $100,000 annually, is proposed to repair about 520 manholes to prevent storm water inflow and infiltration. These manholes are located in greenbelts and roadside ditches and many were submerged during the 1998 flooding. The manholes will be repaired and retrofitted with either internal or external seals, if needed. This is the fifth year of the program, and since 1999, the City has repaired about 450 of the manholes that were most susceptible to flooding. . Sewer Extensions - $800,000 This program totals $1,140,000 and represents actual bid prices to extend sewer mains for new developments on the Spring Public Works Program ($735,000), as well as an estimate for water main extensions to be constructed in the Fall Public Works Program ($385,000). In addition, $20,000 is also necessary for 2006 sewer extensions funded through Special Assessments not included in the 2006 funding levels. Approximately $1,010,000 will be assessed to developers with the remainder of the cost ($130,000) being paid by the Wastewater Utility. The total "",UU I nuu:: .l~~ut::: .l a~[;" :7 Vi :7 n_~:"....+ T\........._:........;.......C' 2007 Note Issue Project Descriptions borrowing is reduced by $340,000 due to $40,000 in carryover funds from the 2006 Note issue ($40,000 - Wastewater Utility), and the Winter 2006 Note Issue ($300,000 - Special Assessments) Page 9 of 9 . Sewer Laterals - $100,000 Sewer laterals are included as part of the improvement process with sewer mains and are installed at the same time. The amount includes $100,000 for new lateral work for 2007 programs.