#3 Improvements to Water Utility and apply for funding (File Res. Nos. 2009-600 & 2009-601)
DEPARTMENT OF PUBLIC WORKS MEMORANDUM
April 17, 2009
TO: City Council
FROM: Daniel L. Lynch, PE, Utility Director
SUBJECT: Action on Proposed Resolutions Authorizing the City Manager to Proceed
with Improvements to the Water Utility and to Apply for a Wisconsin Safe
Drinking Water Fund Loan and Authorizing Interfund Borrowing to Provide
Interim Funding (File Resolution Nos. 2009-600 and 2009-601)
Summary
The City of Janesville has experienced residential growth to the northeast. This growth
has increased the demand on the water distribution system resulting in unacceptable
water pressure fluctuations. Independent engineering firms evaluating this problem
have each concluded that additional water storage is presently needed on the City’s
east side to support existing demands placed on the water distribution system. This
additional storage will reduce the magnitude of the pressure drops on the City’s
northeast side during high water demand situations such as those created when water
is used to fight fires or when a major water main break occurs.
Department Recommendation
The Water Utility staff strongly support this project and encourage the City Council to
adopt the proposed resolutions. Adoption of these resolutions does not create any
additional financial obligation on the part of the City. This project will be before the
Council at a future date to acquire a tower site and to authorize construction.
Suggested Motion
Move to adopt Resolution Numbers 2009-600 and 2009-601 authorizing the City’s
application for a low interest loan and providing for interim financing for the proposed
Water Utility improvements.
City Manager Recommendation
The City Manager concurs with the Utility Director’s recommendation based on the
existing north zone pressure issues. I believe that supporting this project currently will
provide the City the opportunity to seek funding assistance in the event the project
continues to proceed forward.
Analysis
The North Pressure Zone serves about 30,000 people or almost fifty percent of the
City’s 63,500 population. Normal water system pressure in the North Pressure Zone is
about 60 PSI, but can vary from a low of 45 to over 100PSI. The North Pressure Zone
can be divided into three general areas, which are:
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Population Served (est.)
West of the Rock River 5,900
Between the Rock River & the Interstate 17,900
North & East of the Interstate 6,200
Total 30,000
Distribution of water in the North Pressure Zone has been compromised on a number of
different occasions resulting in either the complete loss of water system pressure or a
major pressure drop in the portion of the North Pressure Zone north and east of the
interstate. These events were accompanied by major water system pressure drops (up
to 50 psi) in the remainder of this zone east of the Rock River and typically last about
four hours. These extreme pressure drops are caused by: major main breaks (three-
four in the past five years); failure of the pumping equipment supplying the zone (once
in the past five years); or failure of the single river crossing connecting the west side of
the zone to the east side (three times in the past five years). An example of the effect
an extreme event has is shown on the attached map.
As indicated on the map, during an extreme event such as a 16 inch main break, most
homes north of highway 14 will experience water system pressure below 20 PSI. This
pressure is below the minimum safe water pressure for residential or domestic use (35
PSI) and the minimum residual pressure for fire protection (20 PSI). This means that
the water supply serving the residents northeast of the interstate may be compromised
by groundwater, chemicals or other liquids being pulled into the distribution system
creating a public health risk. In addition, in this part of the City the availability of water
to fight fires is greatly reduced or eliminated.
Less extreme, but still significant system-wide pressure drops (15 to 20 psi) occur more
regularly during the warmer months when maximum hour water demands occur or
during emergencies, such as fires, when large volumes of water are used in a short
period of time.
The North Pressure Zone problems are compounded by the following conditions:
1. East-west water main transmission capacity is limited. Large diameter mains exist
on both the east and west sides of the North Pressure Zone; however, they are not
connected. Even when the North Zone Reservoir is full, because of its location on
the City’s far west end and inadequate east/west transmission capacity, the water
cannot be conveyed quickly enough to the east side in high demand situations.
2. There is only a single crossing of the Rock River for the North Pressure Zone.
While the river is only three to four hundred feet wide where the main crosses it,
damage anywhere along a much larger segment of the main (about 7,000 feet) can
take the crossing out of service. In the past five years, the single crossing has
been taken out of service three times: twice because it was struck by contractors
and once because of material failure. On one occasion both the river crossing and
the reservoir were taken out of service.
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The solution to these problems has been developed by AECOM, a nationally
recognized engineering consulting firm that is also preparing the City’s update to the
Water System Master Plan. The recommended solution is to construct a 1.5 million
gallon water tower on the City’s northeast side and to construct a large diameter water
main to connect the existing 24-inch mains on the City’s east and west sides. This
project is estimated to cost approximately $7,150,000 and is being advanced at this
time to take advantage of the increased federal stimulus funding recently made
available. At this time the amount of federal funding available for this project is
unknown, but that funding information will be known before the Council is asked to
make a decision to proceed with this project.
With storage on the west side of the river, well production on the east side, and
significant residential populations on both sides, this is a critical situation. Having
storage on both sides of the river and reinforcing the water mains between the east and
west sides of the North Pressure Zone will greatly reduce the probability that
unacceptable drops in distribution system water pressure will occur. The proposed
Blackbridge water main and the new tower will help address this problem.
cc: Eric Levitt, City Manager
Jay Winzenz, Director of Administrative Services
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RESOLUTION NO. 2009-600
A Resolution authorizing the City Manager to proceed with certain improvements to the Water
Utility and to apply for a Wisconsin Safe Drinking Water Fund Loan
WHEREAS, A new water tower and related transmission water mains must be constructed to
stabilize the water distribution system on the City’s northeast side; and
WHEREAS, the design of a project water tower was included in the 2007 Water Utility Budgets as
a Capital Improvement Project; and
WHEREAS, the construction of this project is expected to begin in December 2009; and
WHEREAS, the City Council intends to fund this project by a combination of funding that includes:
funds previously borrowed in 2007 and borrowing or receiving funds in 2009 in the form of a
Wisconsin Department of Natural Resources Safe Drinking Water Loan Program low interest loan
or grant as outlined in the following table:
Project Funding Summary
Funding Amount
2007 G.O. Note $400,000
Safe Drinking Water Loan Program (DNR) $6,750,000
Total Project Cost $7,150,000
WHEREAS, the balance of said cost will be eligible for a Wisconsin Department of Natural
Resources (WDNR) Safe Drinking Water Loan Program low interest loan or grant which will be
repaid by user fees; and
WHEREAS, the WDNR has required that an authorized representative be designated by adopted
resolution for a Safe Drinking Water Fund Loan Program low interest loan; and
WHEREAS, Daniel L. Lynch, P.E., 18, N. Jackson Street, Janesville, Wisconsin 53545, (608) 755-
3115, is the Utility Director of the City of Janesville;
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville that they
hereby approve and authorize the City Administration to take actions necessary to provide funding
for the acquisition of land and the design and construction of a 1.5 million gallon water tower and
installation of 20 inch and 24 inch diameter transmission water main not to exceed $7,150,000. No
funds from sources other than the Notes or the Available Funds identified above are, or are
expected to be, reserved, allocated on a long-term basis, or otherwise set aside by the City for the
project, except as permitted by the Internal Revenue Code of 1986. This declaration of official
intent is consistent with the budgetary and financial circumstances of the City. The purpose of this
Resolution is to satisfy the “official intent requirement” of Treasury Regulation Section 1.150-2; and
BE IT FURTHER RESOLVED, by the Common Council of the City of Janesville that the City
Manager be authorized to apply to the Wisconsin Department of Natural Resources for a Safe
Drinking Water Loan Program low interest loan and that it endorses Daniel L. Lynch as the
authorized representative in any actions or for any requirements for a Safe Drinking Water Fund
Program low interest loan or grant
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney
Proposed by: Utility Director
Prepared by: Utility Director
RESOLUTION NO. 2009-601
A Resolution authorizing interfund borrowing to provide interim funding for the Safe
Drinking Water Loan Project and to comply with requirements of the Wisconsin Safe
Drinking Water Loan Program
WHEREAS, the City of Janesville has prepared an engineering agreement for engineering
services for the construction plans and specifications for construction of a water tower for the
City of Janesville, in cooperation with AECOM; and
WHEREAS, the City of Janesville through its internal engineering department will provide the
engineering services for the construction plans and specifications for construction of the water
mains for the City of Janesville; and
WHEREAS, the City Council intends to fund this project by a combination of funding that
includes: funds previously borrowed in 2007 and borrowing or receiving funds in 2009 in the
form of a Wisconsin Department of Natural Resources Safe Drinking Water Loan Program low
interest loan or grant as outlined in the following table:
Project Funding Summary
Funding Amount
2007 G.O. Note $400,000
Safe Drinking Water Loan Program (DNR) $6,750,000
Total Project Cost $7,150,000
WHEREAS, the Water Utility will make application for a Wisconsin Safe Drinking Water Loan
Program to assist in the financing of the land acquisition, design and construction of such Water
Utility improvements including: acquisition of a water tower site for the construction of a 1.5
million gallon water tower and installation of 20 inch diameter transmission water main to
connect the tower to the distribution system; and the installation of approximately 12,000 feet of
20 inch and 24 inch diameter transmission water main to connect the existing large diameter
water main on the City’s east side to the large diameter water main on the City’s west side; and
WHEREAS, the City desires to comply in all respects with the requirements of the Wisconsin
Safe Drinking Water Loan Program and to refrain from any financial activity which may be
considered impermissible arbitrage;
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville that
they hereby approve and authorize the City Administration to take actions necessary to provide
funding for the acquisition of land and the design and construction of a 1.5 million gallon water
tower and installation of 20 inch and 24 inch diameter transmission water main not to exceed
$7,150,000. No funds from sources other than the Notes or the Available Funds identified
above are, or are expected to be, reserved, allocated on a long-term basis, or otherwise set
aside by the City for the project, except as permitted by the Internal Revenue Code of 1986.
This declaration of official intent is consistent with the budgetary and financial circumstances of
the City. The purpose of this Resolution is to satisfy the “official intent requirement” of Treasury
Regulation Section 1.150-2; and
BE IT FURTHER RESOLVED, that the City of Janesville hereby sets forth as its policy
compliance with all requirements of the Wisconsin Safe Drinking Water Loan Program so as to
avoid impermissible arbitrage in financing and refinancing of the site acquisition, design and
construction of thee utility facilities, and otherwise; and
BE IT FURTHER RESOLVED, that the City pay for services received from its Engineer prior to
the approval of any loan(s) from the Wisconsin Safe Drinking Water Loan Program and that
such expenditures be paid from the general funds of the Utility or funds previously borrowed in
the City’s 2007 G.O. note; and
BE IT FURTHER RESOLVED, that the City has the intent to seek financing and refinancing with
the Wisconsin Safe Drinking Water Loan Program to pay $6,750,000 of the expenditures for the
site acquisition, design and construction of these Water Utility facilities, all said financing and
refinancing to be in compliance with the Wisconsin Safe Drinking Water Loan Program so that
the City may be eligible for all monies available under said program; and
BE IT FURTHER RESOLVED, that the City may pay for services provided in conjunction with
the site acquisition, design and construction of these Water Utility facilities performed by
independent contractors which may not be included in billing for engineering services provided
by AECOM and seek reimbursement from the Wisconsin Safe Drinking Water Loan Program
from the general funds of the Utility; and
BE IT FURTHER RESOLVED, that the City has the intent that Safe Drinking Water Loan
Program repayments be repaid with the revenues of the City water user charge system.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney
Proposed by: Utility Director
Prepared by: Utility Director