CAPITAL IMPROVEMENTS EVERYWHERE
If you have driven around Lawrence at all lately, you are doubtless aware of the tremendous amount of infrastructure improvements that are under construction. All this activity has impacts on traffic flow and can be frustrating at times. It is important to keep the end-result in mind when you get frustrated! The amount of infrastructure improvement work that is being done in the older parts of Lawrence is unprecedented to say the least! But there is so much yet to be done. We appreciate all our customers and the patience they have exhibited so far with all the work going on and would ask that you continue to be patient and aware of the workers in the various project areas, to keep them and you safe!
Our capital improvements projects are designed to replace infrastructure based on probability of failure and consequence of failure ratings. We are primarily focused on the area of Lawrence west of Post Road, although there are some isolated areas out east needing attention. It is in the older parts of the city where we see the worst condition issues and highest failure rates. It is also where 2 of our 3 chronic sanitary sewer overflows occur.
With the water system rate increase of 2017, the last phase of which implemented on January 1, 2020, we have been able to invest in upwards of $30-million in water system improvements to our wells, treatment plants, storage facilities, distribution system and in general have improved all aspects of our water system operations. This does not mean we have nothing left to do though! Our water rates support:
- Routine Operations & Maintenance (payroll, insurance, utilities, materials, supplies, parts, and other expenses necessary to the proper functioning of the water utility);
- Bonded and State Revolving Fund Loan debt service (Our Phase I & II Water System Improvements Projects and other bond dent);
- Ongoing annual Replacements & Improvements (annual water main replacements/extensions, meter changeout program, vehicle/equipment replacements, other large repair or replacement costs for components such as pumps/motors, etc.)
As you know, the sewer utility is presently in front of the Common Council with a proposal to increase the sewer rates to begin addressing the serious financial and other issues facing the sewer utility. These are:
- Inadequate revenue due to not increasing rates since 2009, which significantly impairs our ability to properly operate and maintain the sewer utility;
- Receipt of a new Administrative Order on Consent from the EPA for failure to meet the obligations under the prior Agreed Order, due to lack of funding to perform the necessary projects to reduce the amount of inflow & infiltration of rain and ground water into the sanitary sewer, which leads to sanitary sewer overflows;
- Increasing annual sewage treatment costs from CEG.
Our proposal will phase the increase in over 4 years, provide for two low-volume user rates like the water rate structure, and provide the debt reserve for existing and proposed bond issues as well as provide the for ongoing annual Replacements & Improvements as noted above for the water utility. We simply cannot afford to continue on the same path we are on right now. The consequences for failing to act now to correct the sewer utility’s financial and physical condition will only lead to worsening problems, not only from a regulatory perspective, but from a customer perspective as well.
Infrastructure is the bedrock of any community. Without it, there quite literally is no community. It is imperative that we act as a community to ensure that we are getting the best water and sanitary sewer services possible, not only for us here and now, but for those who will rely on these systems after us.
We need to place the appropriate value on clean, safe, and adequate potable water; and a safe, reliable and effective sewage disposal system. These are key elements of the public health and safety that have elevated the standard of living in this country and driven our economic success for decades. These systems require routine maintenance and investment in capital projects to replace, repair or rehabilitate all the various components that make them up. If you are in business, then you understand that you cannot let your equipment deteriorate and fail and expect to stay in business.
While we are not in the business of making money here at the utility, we too cannot afford to have our systems deteriorate and fail, but for a far more important reason: The health, safety and well-being of our customers and the general public, and the continued success and prosperity of our community.
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