MOU/MT Basecamp & City/Consecutive Water System and Water Metering SystemMEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF KALISPELL, MONTANA
AND
MONTANA BASECAMP INC / MONTANA BASECAMP, INC. / BASECAMP
OUTPOST, LLC.
FOR
A CONSECUTIVE WATER SYSTEM AND WATER METERING SYSTEM
This agreement ("MOU") made and entered into by and between the City of Kalispell, a
municipal corporation incorporated and organized under the laws of the State of
Montana, ("City") and the Montana Basecamp Inc / Montana Basecamp, Inc. /
Basecamp Outpost, LLC., ("Basecamp").
RECITALS
1. The City serves as the owner and operator/manager of a unified utility system known as the
Kalispell Public Water System that provides water utility services to the City of Kalispell.
2. Montana Basecamp, Inc. / Basecamp Outpost, LLC. desires to provide water service to its
development through a consecutive water system (the "Private Water System") which is
defined as a public water system that receives some or all of its finished water from one or
more wholesale systems (40 CFR 141.2).
3. The City desires to provide water service to a consecutive water system within the
boundaries of the real property owned by Montana Basecamp, Inc. / Basecamp Outpost,
LLC., legally described as follows, and hereinafter referred to as "Basecamp":
Tracts 1 and 2 as shown and described in COS 20796, on file and record in the office of
the Clerk and Recorder of Flathead County, Montana.
4. The City sets rates and charges for water services it provides. Rates shall be applied per the
most up-to-date rate and schedule as may be adopted by the Kalispell City Council.
5. Basecamp plans for multiple phases of development, which will include a total of 330
proposed RV spaces and multiple facilities at buildout. Rather than City owned infrastructure
within the site and individual water meters for each lot, the City and Basecamp both agree a
consecutive water system fully owned, operated, and maintained by Basecamp is a benefit to
both parties. A master meter system will measure and report water use for the entire site.
Basecamp's Private Water System shall be sized appropriately to provide fire flows as
required by the Kalispell Fire Department.
6. Each phase of the Private Water System and metering system will be designed by a
professional engineer and comply with Montana Department of Environmental Quality
design requirements, City Design and Construction Standards (Standards), and City Rules
and Regulations Governing Water Service (Water Regulations). The City will administer
water service according to the adopted Regulations; exceptions to the Regulation are
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described in the terms of this MOU.
7. The Private Water System water metering will consist of an appropriately sized meter (or
meters) to capture and record water use from commercial and domestic water demands. A
larger ten -inch meter will record water used during line flushing and fire flows.
8. It is understood between the parties that the volume rate for the described consecutive system
shall not exceed an average of 166,000 gallons per day during the months of operation by the
Private Water System. If the volume rate is fully utilized Basecamp may request an approval
of a volume rate increase from the City.
9. Irrigation water will be metered separately, but considered apart of the Private Water System.
Irrigation water shall only be used for irrigation of outside grass and landscape areas.
NOW, THEREFORE the City and Basecamp agree as follows:
1. The foregoing recitals are true and correct and by this reference are incorporated
into the terms of this MOU.
2. The City is the owner, operator/manager of the Kalispell public water system, and has
the authority to administer all functions and responsibilities of the water system up to
the point of connection to the Private Water System. The City will be responsible for the
following:
a. Setting all rates or fees for water service to generate sufficient revenue to pay all
costs for the operation and maintenance, administration and routine functions of the
City water system. The City is in the process of updating the water and sewer rate
schedule. Upon completion of the rate study a wholesale or consecutive system charge
will be established, and shall be applied once approved by City Council.
b. Ensure the operations and maintenance of the City's water system are in full
compliance with all applicable federal, state and municipal laws, regulations and
ordinances.
c. Collect all fees and charges due from consumers receiving services. The City of
Kalispell will prepare one bill monthly for water service provided to Basecamp
based upon total metered volume of water supplied to the point of connection to
Private Water System.
d Notify Basecamp in writing of any non -compliant items and/or defective
appurtenances found during inspection of the Basecamp Private Water System. If
compliance is not met within 30 days after receipt of written notification, service
will be terminated to Basecamp until compliance is met and accepted by the City,
at which point service will be reinstated.
3. Basecamp will be responsible for the following:
a. The design, construction, maintenance, and operation of the Basecamp Private Water
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System described in this MOU.
b. Employing a certified water operator to complete required water sampling and
operation of the Private Water System at no cost to the City.
c. Failing water samples within the Basecamp Private Water System shall be reported to
the City within 24 hours.
d Failing water samples within the Private Water System that require the collection,
testing, and reporting of water samples within the City Public Water distribution and
water sources shall be wholly paid by Basecamp except as follows:
i. If the Private Water System failing samples are found to be caused by the
City's water distribution or source.
e. The design, construction, maintenance, and operation of the water metering system
described in this MOU.
£ Providing 24-hr access for City staff to the Private Water System and water metering
system to verify compliance with this agreement, the approved design City
Standards, City Water Regulations, and to check or verify meter accuracy.
g. For continued water supply, Basecamp shall repair or replace any defective
appurtenances to and of the Private Water System and/or return such appurtenance to
proper working order within 30 days after written notification by the City.
h All Backflow prevention assemblies shall be tested by a certified backflow prevention
tester upon installation and annually thereafter. Repairs to backflow prevention
assemblies shall be made within 7 days of the failed inspection. All backflow tests,
retests and repairs shall be at no cost to the City. All Backflow prevention testing
results shall be submitted to the Public Works Department for review.
i Basecamp shall perpetually maintain its status as a legal entity with the authority to
respond to its legal obligations under this agreement. Basecamp may not assign its
duties and obligations under this agreement without the prior written consent of the City
of Kalispell.
4. The City reserves the right to refuse to deliver water to Private Water System if it is
determined that conditions exist which might lead to contamination of the public water
supply, and may continue to refuse such delivery of water until such condition is remedied
to the satisfaction of the City.
5. The City reserves the right to sample from the Private Water System, as it deems necessary.
6. In the event there is a need to issue a public notice regarding the public water supply, the
City will issue public notice to Basecamp at its property address and business mailing
address on file with the Montana Secretary of State. Basecamp will be responsible for
notification of its users. Basecamp will be responsible for notifying the Department of
Environmental Quality (DEQ) that the public notice was delivered as required by local state
and or federal regulations. The City will not be responsible for delivery of public notices
to the individual users of Basecamp under any circumstances.
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7. Basecamp will be responsible to copy and distribute, as required, the Consumer Confidence
Report to its users. If required, Basecamp is responsible for notifying DEQ that Consumer
Confidence Reports were provided to their users as required by .local, state, or federal
regulations.
8. Basecamp shall obtain all of its water from the City and shall not sell water to any other
person or entity.
9. Nothing in this agreement will obligate the City to operate or maintain any asset owned by
Basecamp.
10. Nothing in this agreement will obligate the City to modify the operation or maintenance of
the City's water treatment or water distribution system.
11. Nothing in this agreement will relieve either party from any duty required by local, state or
federal rules or regulations.
12. The City may unilaterally amend this agreement in response to changes in state or federal
rules and regulations or in response to circumstances that were not anticipated at the time
the agreement was executed. The City will provide notice to Basecamp of any proposed
amendment(s) and Basecamp will be given 30 days to comment. The amendment(s) will
go into effect 30 days after Basecamp is provided with a copy of the final version of the
amendment(s).
13. Both parties agree to review this agreement in no less than 20 years, at which time
conditions of this agreement may be re-established.
IN WITNESS WHEREOF the parties have subscribed their names on the dates hereinafter
written.
FOR MONTANA BASECAMP, INC. — Operating Manager
/ BASECAMP OUTPOST, LLC. — Property Owner
�12�
DATE Andrew J. Ma ws
FOR CITY OF KALISPELL
DATE g ssell — City Manager
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