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-gym ( <br /> 411 MEMORANDUM <br /> Memo To :Mayor and Council Members <br /> From :Ric Minetor, City Engineer/Director of Public Works <br /> - <br /> Date :February 28, 1991 . 414!fAfr-1-'*- . <br /> Subject :Analysis of Bond Sales for Water Dept. Capital Projects <br /> We have received the analysis of bond sales from Springsted Co. <br /> (attached) for the proposed water department capital improvement <br /> projects. Ron Langness from Springsted will be available Monday <br /> night to answer any questions regarding this analysis. The rates <br /> currently in effect and approved through 1994 will carry any of <br /> the .3 options outlined in Ron's analysis. <br /> The major projects are the construction of a new treatment plant <br /> and the rehabilitation of treatment plants 2 & 3 . The new <br /> treatment plant is nearly half the total cost. Rehabilitaion of <br /> plants 2 & 3 are also expensive totalling $500,000. However, the <br /> new equipment and backwash reclmation will result in conserving <br /> approximately 10 million of gallons of water each year. Costs <br /> 0 will also be reduced due to more efficient treatment. <br /> There are 3 projects that are considered questionable at this <br /> time. These are the rehabilitation of well #4 , the transmission <br /> line from well #4 to the new treatment plant, and the painting or <br /> demolition of tower #2. <br /> Rehabilitation of well #4 and the transmission line from well #4 <br /> to the new treatment plant are related projects. If the well is <br /> not rehabilitated it would appear to be inappropriate to <br /> construct the transmission line. Likewise, if the well is <br /> rehabilitated, it is necessary to construct the transmission line <br /> in = -= _ - = : _ • ' : - - - -= -,.nga-nese-r-emoval . OUT original cort <br /> estimate for rehabilitating this well was $50,000. We reviewed <br /> the plans, test well information, and discussed the possible <br /> rehabilitation method with the Department of Health. Due to <br /> requirements of the department of health and the method of <br /> construction, the rehabilitation cost is estimated at $161 ,000 - <br /> more than triple our initial estimate. This well is not necessary <br /> in the system, but can serve as an emergency backup, which is how <br /> we have utilized it over the last 3 years. If it is included for <br /> rehabilitation , it would provide excess capacity and an <br /> alternative if another well was out of service for a significant <br /> time period. The Council will need to determine the <br /> appropriateness of including these 2 projects. <br />