Title
A Resolution of the City of Lee’s Summit, Missouri, affirmatively assenting to the issuance of revenue bonds payable from revenues to be derived from the operation of the Middle Big Creek Subdistrict sewer system in an additional amount of $12,000,000, together with the previously authorized amount of $106,000,000, for a total not to exceed amount of $118,000,000 for the purpose of acquiring, constructing, improving or extending the sewer system serving the Middle Big Creek Sewer Subdistrict, including, but not limited to the improvements described herein, in accordance with section 204.569(3), revised Missouri Statutes. (PWC 10/14/24)
Body
Issue/Request:
A Resolution of the City of Lee’s Summit, Missouri, affirmatively assenting to the issuance of revenue bonds payable from revenues to be derived from the operation of the Middle Big Creek Subdistrict sewer system in an additional amount of $12,000,000, together with the previously authorized amount of $106,000,000, for a total not to exceed amount of $118,000,000 for the purpose of acquiring, constructing, improving or extending the sewer system serving the Middle Big Creek Sewer Subdistrict, including, but not limited to the improvements described herein, in accordance with section 204.569(3), revised Missouri Statutes.
Key Issues:
These Key Issues remain the same:
The City of Lee’s Summit and Middle Big Creek Subdistrict to Little Blue Valley Sewer District (LBVSD) have a long-standing service contract for sanitary sewer treatment.
The City of Lee’s Summit is a Member City of the Subdistrict with representation on its Advisory Board
The City of Lee's Summit is a Member City of LBVSD with representation on its Board of Trustees
The plant for the Subdistrict is approaching its maximum capacity
A major pump station which serves Lee's Summit in the Middle Big Creek Sewershed is at its capacity
This Bond Issue will upsize the plant to meet the future needs of those served by the District
This Bond Issue will remove the existing pump station and replace it with a gravity interceptor
The original Resolution was passed in December of 2021.
The design and construction of the project was held up due to several issues including revisions to the flood plane in the area of the project.
The cost of construction during these delays saw significant increases.
The new estimated construction cost of the complete project is $118,000,000, or $12,000,000 over the previous approval be resolution.
The MoDNR is willing to expand the SRF funding to cover the increased cost of the project.
Proposed Committee Motion:
I move to recommend to City Council for approval of a Resolution of the City of Lee’s Summit, Missouri, affirmatively assenting to the issuance of revenue bonds payable from revenues to be derived from the operation of the Middle Big Creek Subdistrict sewer system in an additional amount of $12,000,000, together with the previously authorized amount of $106,000,000, for a total not to exceed amount of $118,000,000 for the purpose of acquiring, constructing, improving or extending the sewer system serving the Middle Big Creek Sewer Subdistrict, including, but not limited to the improvements described herein, in accordance with section 204.569(3), revised Missouri Statutes.
Background:
The City of Lee's Summit has been a member of the Middle Big Creek Subdistrict (MBC) to the Little Blue Valley Sewer District (LBVSD) since 1992. MBC serves a large portion of southeast Lee's Summit with treatment of the collected wastewater at the MBC plant located in Pleasant Hill. The existing sewers west of Highway 291 and south of the north edge of Summit Ridge and Arbor Walk to roughly Pryor Road flow under Raintree Lake by gravity to the MBC treatment plant. The existing sewers east of Highway 291 and south of 50 Highway to the east City limit flow south through Greenwood to the Greenwood Pump Station where they are pumped to the Raintree Pumpstation to gravity flow to the MBC Treatment Plant.
Currently the MBC treatment plant is at capacity and a considerable amount of flow is diverted to the LBVSD treatment plant for treatment there Via the Raintree Lake Pump Station. Expansion of this plant was planned from its inception and has been scheduled to be completed based on growth in the system. The existing Greenwood Pump Station is at capacity and near the end of its useful life. This pump station services the Big Creek Sewer Shed west of Highway 291.
The proposed bond issue will provide for the upsizing of the MBC existing treatment plant and the removal of the Greenwood Pump Station and its replacement with a gravity interceptor.
Impact/Analysis:
The MBC rates to support this project will need to increase on average 2.3% per year for the next 10 years.
Presenter
Jeff Thorn, Deputy Director of Water Utilities
Jeff Shook, Director Little Blue Valley Sewer District
Recommendation
Staff recommends approval of a Resolution of the City of Lee’s Summit, Missouri, affirmatively assenting to the issuance of revenue bonds payable from revenues to be derived from the operation of the Middle Big Creek Subdistrict sewer system in an additional amount of $12,000,000, together with the previously authorized amount of $106,000,000, for a total not to exceed amount of $118,000,000 for the purpose of acquiring, constructing, improving or extending the sewer system serving the Middle Big Creek Sewer Subdistrict, including, but not limited to the improvements described herein, in accordance with section 204.569(3), revised Missouri Statutes.
Committee Recommendation