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03-29-19 City Manager Report1 City of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 Telephone (406) 758-7701 Fax - (406) 758-7758 Information Memorandum 03/29/19 1. Public Works Lift Station #8: Sewer staff have recently completed an upgrade to Lift Station #8. Lift Station #8 was constructed in 1989 as a part of the Southwest Kalispell Project and originally served the area south of 11th St W on 5th, 6th, and 7th Ave W. At the time of construction, the average flow was projected to be 17 gpm. With the addition of the Sunnyside and Ashley Heights Subdivisions, the current flow to the lift station averages 40 gpm. With this added flow, the station began to operate near maximum capacity. Given the capacity issues, age, and a lack of available repair parts, staff initiated a plan to remove the existing pumping equipment and upgrade utilizing pumping equipment removed from Lift Station #19 and the Westside Interceptor Project. This project was constructed entirely within house staffing and required new electrical, control and piping systems prior to going live. Total construction costs were less than $4,000.00 and were funded by the Sewer O&M budget. Given costs associated with sub - contractors and projects similar to this one in nature, staff estimates this upgrade saved approximately $250,000.00 in a future Capital Improvement Project. From idea to fruition, this project has reduced daily pump run times by 27% and has reduced the daily pump starts by 67%. Additionally, pump runtime per pump cycle has increased by 50% which allows the pumps to run at their most efficient point, alleviating “short cycling.” A big kudos to David Maddalone and the rest of the Sewer Department staff for all their efforts during this project. 2 12’ Decorative Light LED Upgrade: The Traffic Sign and Signal Division recently upgraded 108 12’ decorative light fixtures in downtown Kalispell. A 28w LED direct retrofit lamp was used that matches the previous illumination and meets City lighting standards. Depending on the location, the decorative lights were previously using either a 70w or 175w Metal Halide bulb. The color of the light was changed from 4,000 Kelvin to 5,000 Kelvin to give the lights a consistent clean white color. The cost of the 108 lamps was $3,888. Along with over a 40% power savings, the City will also receive a rebate from Flathead Electric Coop for $2,540. 2. Finance Budget The fiscal year 2020 preliminary budget process is underway. The finance department has updated personnel cost schedules. Some personnel cost remain estimates due to expiring contracts and undetermined health and workers’ compensation insurance increases/decreases. The City’s fiscal year 2020 debt service cost is also being updated for the budget and includes estimates for some of the fiscal year 2019 borrowings. Currently, Montana State Board of Investment (BOI) loans have a rate of 3.37%, subject to adjustment every February. Most other City debt is fixed rate. Administrative, Information Technology, and Central Garage transfer formulas and amounts have been prepared and updated in the individual fiscal year 2020 fund budgets. The administrative cost allocation increased $108,833 (8%). The funds, other than general, were allocated just over $43,000 of this increase. Department budget review sessions will be scheduled for the 1st and 2nd week of April. Council review of the preliminary budget is tentatively scheduled for the 13 th, 14th, and 15th of May. 3. Parks and Recreation Begg Park Dog Park is closed due to spring thaw. The closure occurs each spring as snow and ice melt and the ground water rises, saturating the park. After the standing water diminishes, the top few inches of the soils will need to dry. In order to maintain turf throughout our park system, we typically do not allow high use in the spring in any location to let the top layers of the soils stabilize. We also will be over seeding the park and need the seed to germinate prior to heavy use again. When this property was designated as a dog park we knew that there would be small spring and turf challenges we would need to work through each year. 3 The late snows and accumulations have impacted opening of KYAC this year. Crews will begin readying buildings for water services to be reconnected in the coming weeks and allowing access to user groups to their buildings/facilities; however gates will remained locked till the turf can be practiced on. Even after the snow melts, there is a brief window of time in which we allow the turf to stabilize (dry out) before adding any type of use. This helps prevent permanent damage to the existing turf and provides more stability for the users. We appreciate everyone’s patience as we continue to monitor the turf at KYAC. Parks crews are transitioning equipment over from their winter to spring and summer implements. Trails are currently being swept of the winters dirt and debris that has accumulated. On April 13, Kalispell Parks and Recreation’s Forestry Foreman, Josh Keene, will be hosting a small tree pruning workshop for our community at Lawrence Park from 10:00am - 12:00pm. This is a chance to learn the techniques that our forestry staff are implementing in the pruning of city trees, as well as to get some hands on experience. We had over 60 kids participate in our annual Spring Break Camp this year. Campers had two different tracks to choose from, arts or science. While our “artists” experimented with watercolors, drawing, and other crafts, our “scientists” learned about rocket stability, lift, drag, thrust, and aerodynamics. With help from our special guests Alison Godfrey, retired rocket software engineer, and Steve Alejandro, retired aerospace scientist, the kids flew model hang gliders and built several types of rockets. Our Little Dribblers Basketball program started on March 16. Our participants and parents are appreciating the new gym at Russell Elementary School. Congratulation and thanks to Kalispell Public Schools for the great new improvements to our schools and our community! 4. Building Department In the last 2 weeks, we have issued permits for 5 single-family homes. That will bring the total of new single-family/duplex and townhouse units for the year to 15, which is where we were at last year at this time. 4 Walmart located at 170 Hutton Ranch Rd. was issued a permit to build a covered outdoor grocery pick up area; the project is valued at $168,000. Northwest Drywall was also issued a permit to build at their new location at 1105 Oregon Ave; this project is valued at $1.7 million. There are 2 new 4-plexes approved to build located at 21 Appleway Dr; the valuation of this project is approximately $854,000. 5. Planning Department Planning staff met with the URA on March 20th and discussed policies and procedures for the Downtown Kalispell TIF. Staff proposed some new ideas that have been successful in Bozeman, which is providing incentives to developers within their redevelopment areas. The URA thought the new direction was worth considering and has directed the staff to provide DRAFT policies at their next meeting for discussion. 6. Community Development South Kalispell Tax Increment Finance (TIF) Traffic Project WGM Group provided an update to Kalispell’s Urban Renewal Agency (URA) at the March 20, 2019, meeting on the South Kalispell TIF Project. The project is in the development stage with two possible designs for correcting the misalignment of First Avenue West and 18th Street at Airport Road. A commercial appraiser has been retained to establish a value for property which must be acquired to realign 18th Street under one of the proposed designs. 5