H3. Resolution 6239, for LSL Replacement FundingCITY OF
KALISPELL
MEMORANDUM
To: Doug Russell, City Manager
From: Keith Haskins, P.E., Deputy Director Public Works
Re: Resolution 6239 Recommendation
Meeting Date: 1/21/2025
BACKGROUND: During several Council Work Sessions, most recently on January 13, 2025,
Public Works staff provided an overview of the Environmental Protection Agency approved
Lead and Copper Rule Improvement (LCRI), which took effect in October 2024. The LCRI
establishes specific requirements for replacing non -compliant service lines, including lead lines
and galvanized lines requiring replacement. It also outlines additional requirements related to
public notification, inventory validation, sampling, and protocols for addressing action level
exceedances.
The City has an opportunity to leverage funding from the Drinking Water State Revolving Fund
(SRF) program to help offset the costs associated with replacing non -compliant service lines.
This program offers loan forgiveness of up to 60%, depending on the water system's eligibility
and specific conditions requiring replacements from the main to the building.
According to current City Rules and Regulations, service line maintenance is the responsibility
of the property owner. However, the City may replace old service lines from the water main to
consumer property boundaries when such lines are discovered to be leaking or as part of
scheduled capital improvement projects. Since full replacement from the water main to the
building exceeds the City's obligations, adopting a one-time resolution would be necessary to
authorize the City's involvement to complete non -compliant service line replacements and fully
capitalize on the funding opportunity.
RECOMMENDATION: Staff recommends that the Council approve Resolution 6239,
authorizing utilization of the SRF funding for replacement of non -compliant service lines from
the main to the building, as identified in the LCRI.
REQUESTED ACTION: Motion and vote to approve Resolution 6239, a resolution allowing
the City to fund and oversee a construction project in order to eliminate all identified non-
compliant lead and galvanized required replacement water service lines in the City of Kalispell
water service line inventory as a one-time exception from City regulations in order to be eligible
for State of Montana State Revolving Fund Loan Forgiveness.
ALTERNATIVES: As suggested by Council.
ATTACHMENTS: Resolution No. 6239.
201 Pt Avenue E IPhone (406)758-7720
Po Box 1997 Public Works Department Fax (406)758-7831
Kalispell, MT 59903 1 1 www.kalispell.com
RESOLUTION NO. 6239
A RESOLUTION ALLOWING THE CITY TO FUND AND OVERSEE A
CONSTRUCTION PROJECT IN ORDER TO ELIMINATE ALL IDENTIFIED NON-
COMPLIANT LEAD AND GALVANIZED REQUIRED REPLACEMENT WATER
SERVICE LINES IN THE CITY OF KALISPELL WATER SERVICE LINE
INVENTORY AS A ONE-TIME EXCEPTION FROM CITY REGULATIONS IN
ORDER TO BE ELIGIBLE FOR STATE OF MONTANA STATE REVOLVING FUND
(SRF) LOAN FORGIVENESS.
WHEREAS, as a Community Public Water Supply, Kalispell is required to comply with all
drinking water regulations specified in the Lead and Copper Rule Improvement
(LCRI), as approved by the EPA in October 2024; and
WHEREAS, the LCRI aims to eliminate all non -compliant service lines, defined as lead line
and galvanized required replacement lines requiring replacement; and
WHEREAS, the City's existing policy is to require consumers to maintain their own service
lines, however, the City may replace lead lines from the water main to consumer
property boundaries when such lines are discovered to be leaking or as part of
scheduled capital improvement projects; and
WHEREAS, in order to accept funding, the City must make an exception to replace these lines
with consumer consent and legal access; and
WHEREAS, the LCRI establishes specific requirements for the timing and responsibility of
these replacements and includes ongoing public notification obligations until
each non -compliant line is fully replaced; and
WHEREAS, the State of Montana may receive funding dedicated to lead service line projects,
which eligible projects would include developing a service line inventory,
planning for replacements or mitigations, and performing replacement activities;
and
WHEREAS, for projects to qualify for funding under this appropriation, they must meet
Drinking Water State Revolving Fund (SRF) eligibility, be directly related to Lead
Service Line Replacement (LSLR), and cover activities such as identification,
planning, design, and full replacement of lead service lines; and
WHEREAS, SRF loan forgiveness is available based on both water system and project
eligibility, allowing eligible projects and systems to have up to 60% of the loan
forgiven and DEQ policy requires water systems to repay 40% of the loan costs
for the project; and
WHEREAS, for the City to qualify for loan forgiveness, the City Water Fund must assume
responsibility for the loan's repayment portion associated with replacing the
identified lead and galvanized required replacement service lines from the main to
the structure's interior plumbing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, AS FOLLOWS:
SECTION 1. That the City shall fund and oversee a construction project to replace lead
and galvanized required replacement service lines as identified in the
required Water Service Inventory.
SECTION 2. The City shall proceed with replacement of non -compliant service lines on
private property only with the property owner's consent, secured through a
temporary construction easement.
SECTION 3. That funds necessary to replace the identified lead and galvanized required
replacement service lines be requested as an SRF loan from the State of
Montana.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, ON THE 21 ST DAY OF JANUARY, 2025.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk