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Home My WebLink AboutTB Minutes 1978-06-08 , t P R O P O S A L f o r T O W N O - F I T H A C A WATER SYSTEM REPAIRS AND IMPROVEMENTS .i June 8 , 1978 i II TABLE OF CONTENTS A . Introduction Bo Current Needs C . Plan of Action Do Method of Financing E . Financing Schedule F . Surcharge Determination Go Resolutions f • I A . INTRODUCTION The Town of Ithaca owns its own distribution system , including pump stations , water mains , pressure reducing vaults and the following reservoirs : Christopher Circle Standpipe - 500 , 000 gal . - built - 1957 ~ � Sapsucker Woods Standpipe - 500 , 000 gal . - built . 1957 Pine Tree Road Tank - 200 , 000 gal . - built 1954 Ridgecrest Road -Tank - 500 , 000 gal . - built 1968 . Hungerford Hill Road . Tank - 500 , 000 gal . - built 1968 Danby Road Tank - 500 , 000 gal . . - built 1953 Trumansburg Road Tank - 500 , 000 gal . - built 1933 Northview Road Tank - 200 , 000 gal . - built 1953 Repairs to the system include preventive maintenance at the pump stations , hydrants , PRV ' s , control valves , telemetering and repairs to water main breaks . At the present time , approximately $ 28 , 500 per year is collected for repairs and maintenance - by the 5 % surcharge on the water rate . The percentage was reduced from 15 % at the time of the Bolton Point water rate increase in 1976 . The last major replacement accomplished in the Town of Ithaca water system was the replacement of a pump at the Cliff Street Pump Station in 1976 . The pump replacement had to be accom- plished on an emergency basis because of the failure of the City to maintain either of the two pumps which serve the West Hill part i i of the Town and , in particular , the Hospital . No Town reservoir has been painted in the last 25 years . C 1 i 2 - B . CURRENT NEEDS 1 . Forest Home Water System The Forest Home Water System was constructed in 1936 . The Town Board has been concerned for some time about the condition of the 10 - inch water main crossing the westerly bridge . Since the Forest Home sewer project also includes a sewer main crossing , the Town Board decided to incorporate the water main replacement as a separate bid item . The low bidder included a price of $ 25 , 000 for this work and the project is now in the early stages of construction . 2 . Christopher Circle/Sapsucker-Woods Standpipes . On May 10 , 19781 - the Town drained the Christopher Circle . tank to permit bidders on the painting project to see the condition of the tank first hand to minimize the liklihood of costly extras once the project is underway . Extensive pitting was observed and the budget may have to be revised above the $ 20 , 500 figure approved by the Town Board on March 13 , 197 $ Bids - will be opened on June 15 . It can also be assumed that the Sapsucker Woods Road Standpipe is in similar condition since it was built at the same time . It is , therefore , desirable to ' accomplish the repainting of the Sapsucker Woods Standpipe this fall if a financing method can be arranged . - 3 - 3 . Cliff Street Pump Station. The work remaining includes a replacement of the second pump and - extensive repairs to the building . It is likely that a pump is available in the now defunct East State Street Pump Station , including valves and electrical components . This will permit the pump station to be restored at a cost of $ 25 , 000 , rather than the $ 40 , 000 estimated for totally new equipment : The East State Street pump impellers may have to be replaced to efficiently fill the Trumansburg Road Tank . The cost of the impellers is included in the budget . 4 . Glenside Water Loop The sewer project now under construction in the Glenside area includes the relocation of the water line to the area from the City line . This permits placement of the sewer main at the optimal location to serve all of the existing residences in the area . A water loop up - Coy Glen Road to intersect with the new Glenside pipe is required . Although this is a system extension , its primary purpose - -will be to improve the pressure and reliability of the existing area of service . It is not anticipated that addi - tional units will be served by this water line . C . PLAN OF ACTION Christopher Circle Tank repairs and painting Bids due June 15 , 1978 Complete construction September 1 , 19780 Sapsucker Woods Standpipe repairs and painting Authorize preparation of bid documents June 12 . Release for bidding July 1 , 19780 Open bids August 1 , 19780 Complete construction September 15 , 1978 . Cliff Street Pump Station Replace pump and restore building . Release for bidding July 1 , 1978 Open bids August 1 , 1978 . Complete construction January 1 , 1979 . Glenside Loop Release bid documents . August 1 , 1978 Bids September 1 , 1978 Complete construction December 1 , 1978 . D . METHOD OF FINANCING Budgets Fall Creek Crossing $ 25 , 000 Christopher Circle Tank 28 , 000 Sapsucker Woods Tank . 28 , 000 Cliff Ztreet Pump Station 261F000 Glenside Loop 321F000 $ 139 , 000 i Source of Funds Anti - Recession Funds 19 , 000 New Bond Anticipation Notes 120 , 000 Total . . . . . . . . $ 139 , 000 * To be allocated on June 12 , 1978 for water system repairs . � I 5 - E . FINANCING SCHEDULE $120 , 000 at 6 % Principal Interest Total $ 12 , 000 71200 19 , 200 12 , 000 61480 18 , 480 12 , 000 5 , 760 . 17 , 760 . 12 , 000 5 , 040 17 , 040 - 12 , 000 41320 16 , 320 12 , 000 31600 15 , 600 12 , 000 2 , 880 14 , 880 12 , 000 2 , 160 14 , 160 12 , 000 1 , 440 13 , 440 12 , 000 720 12 , 720 1979 40 , 800 - 19 , 200 = $ 21 , 600 1980 21 , 600 + 17 , 000 = 38 , 600 . - 18 , 480 = 20 , 120 1981 20 , 120 + 17 , 000 = 37 , 120 - 17 , 360 = 19 , 360 19824 19 , 360 + 17 , 000 = 36 , 360 - 17 , 040 = 19 , 320 1983 19 , 320 + 17 , 000 = 36 , 320 - 161320 = 20 , 000 1984 20, 000 + 17 , 000 + 37 , 000 - 15 , 600 = 21 , 400 The surplus each year will increase in 1983 because the annual payment of existing - Bond Anticipation Notes and bonds begins to decrease . The surplus each year will increase by approximately $ 1 , 150 per year as new units are added to the overall system at � conservative rate of 50 /year . • I G f 6 _ F . SURCHARGE DETERMINATION Analysis of current annual water maintenance and operating budget : Preventive maintenance of pump stations , telemetering . . . . . . : . . . . . . . . . . : . . . . . . . . . . . . . . . . . . $ 5 , 000 Electric Power , Telephone Equipment . . . . - • • • • • • • • 16 , 000 Water Line Leak Repairs 7 , 5500 Total . . : . . $ 28 , 500 For each 1 % increase $ 4 , 200 is added to the water repairs fund . The addition of 3 % will generate $ 12 , 600/year , which in two years will provide enough to paint one tank . The following schedule can then be established for painting the remaining reservoirs with- out borrowing funds : Years since last painting . ( or construction ) Danby Road ) 25 Northview Road ) 1979 - 1981 25 _ Trumansburg Road . ) 45 Pine Tree Road ) 24 Ridgecrest Road ) 10 Hungerford Hill ) after 1981 12 Approvimate cost to homeowner . . . $ 80 x . 03 = $ 2 . 40 /yr Consideration will be given to increasing the surcharge to 10 % effective October 1 , 19780 Since the work will be completed on about January 1 , 1979 , we anticipate the sale of $ 120 , 000 in 10 -year bonds to provide . financing of this project . The benefit assessment of $ 23 /unit will pay for the new debt service without causing a deficit in the bene- fit fund .