Ordinance 1316 - Highway 93 Utility Cost Recovery Program30
ORDINANCE NO. 1316
AN ORDINANCE ESTABLISHING A PROGRAM TO RECOVER UTILITY COSTS
ASSOCIATED WITH EHRECONSTRUCTIONNOFOU.S�HIGHWAY #ICIPAL U93LITIES SOUTH. IN
CONNECTION WITH TH
WHEREAS, the State of Montana, Department of Transportation,
anticipates reconstructing U.S. Highway # 93 from Seventh
Street within the City limits to an area commonly known
as Four Corners in the year 2000 or 2001, and
WHEREAS, MDOT and the City of Kalispell have agreed in principal
to a cost sharing program for the installation of water,
sanitary sewer and a sanitary sewer lift station upgrade
from the current City limits to the Four Corners area,
and
WHEREAS, the area potentially benefitted by the extension of said
utilities lies outside the boundaries of the City and
potentially benefitted property has not paid any of the
capitalization cost of the existing water delivery or
sewer collection and treatment facilities, and
WHEREAS, the costs for the installation of these new utilities is
estimated to be $1,874,500.00, and
WHEREAS, existing City policy contains no method by which the City
can recover the cost of utilities extended to an area not
within the boundaries of the City, and
WHEREAS, City policy does anticipate that, prior to the delivery
of utility services to areas outside the City,
benefitted property would petition for annexation to the
City, and
WHEREAS, the City Council has determined that the best interests
of City utility customers would be served by establishing
an Ordinance setting forth a method and formula for the
recovery of costs associated with the extension of water,
sanitary sewer and sanitary sewer lift station facilities
from property anticipated to be benefitted via their
installation.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, AS FOLLOWS:
SECTION I. That the costs of water, sanitary sewer, and
sanitary sewer lift station installation
associated with the U.S. Highway #93
reconstruction shall be recovered from each
parcel of property benefitted from said
utility extension, at the time of its
connection, based upon the following formula:
1. 450 of the total cost shall be recovered
from the property owners connecting to
said utilities based upon that part of
the whole cost which their property's
area bears to the area of the service
area of 7,977,219 square feet; and
2. 45% of the total cost shall be recovered
from the property owners connecting to
said utilities by use of a surcharge on
the established connection fee, at the
time of connection, such surcharge shall
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be an additional 35% of the connection
fee for water service, and an additional
37% of the connection fee for sewer
service, of the respective connection
fees then in effect; and
3. 100 of the total cost shall be recovered
from the property owners connecting to
said utilities based upon that part of
the whole cost which the frontage of
their property on US 93 bears to the
lineal feet within the service area of
10,722 lineal feet.
SECTION II. Determination as to the total cost of the cost
installation of the water, sanitary sewer
utility and sanitary sewer lift station shall
be based upon the successful bidder's final
installed price, together with reasonable
engineering costs, of said improvements as
calculated by the Department of Public Works.
SECTION III. Funds received as part of the cost recovery
program herein authorized shall be deposited
in the respective funds from which they were
dedicated to pay for the utility improvements
in proportion to the total of those dedicated
from each fund.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, MONTANA, THIS 21ST DAY OF JUNE, 1999.
ATTEST:
Theresa White
City Clerk
WM-F- XaharskF
Wm. E. Boharski
Mayor
32
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