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Harball to Clausen/Latecomer's FeeCharles A. Harball Office of City Attorney City Attorney 201 First Avenue East P.O. Box 1997 Kalispell, MT 59903-1997 October 30, 2008 Kent Clausen KVC Developments 8923 East Mission, Suite 135 Spokane, WA 99121 Re: Latecomer's Fee for Fire Flows Dear Mr. Clausen: Tel 406.758.7977 Fax 406.758.7979 charball@kalispell.com The latecomer's fee billing that you received from the City for the Holiday Inn at the Spring Prairie Development was incomplete as it did not include the excess fire flow requirements that your facility requires. After we sent you the first billing, we were contacted by the investor who installed the water and wastewater conveyance system at his cost to question the amounts we billed. He cited the latecomer's agreement that states: "If a project with a fire flow requirement higher than the base fire flow of 1,000 GPM were to connect to the main, the future development would benefit from this extra capacity due to the oversized pipe. Therefore there would have to be a payment for the additional fire flow above and beyond the 1,000 GPM already supplied." The City had interpreted this section of the agreement to have been fulfilled when Glacier High School paid the fee for the additional fire flow above and beyond the 1,000 GPM. We assumed that the excess fire flows would be paid just once based upon the ultimate capacity of the lines. The investor, however, disagrees and believes that the language of the contract allows for his recovery from any developer requiring the excess fire flows and that there is no relationship to line capacity. He agrees that he may not be reimbursed for more than his investment. Because the City is the "administrator" of this agreement and that it may be interpreted in more than one way, we are giving you a statement of the amount due on the agreement with the excess fire flows taken into account. Kent Clausen October 30, 2008 Page - 2 The amount due and owing to the City is $151,481.88. I have enclosed the memorandum and analysis provided to me by the Public Works Department as well as a copy of the latecomer's agreement. Please feel free to give me a call as I am sure you will wish to discuss this further. The Interim City Manager has been brought up to date on this as well. SVes Carball City Attorney Office of City Attorney City of Kalispell g = City of Kalispell Public Works Department Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)7.58-7720, Fax (406)758-7831 9/30/08 To: Charlie Harball, City Attorney Cc: Jim Hansz, P.E., Public Works Director Re: Holiday Inn Express -Water Latecomers Fees Attached is the calculation sheet used to determine the Water Latecomers Fee. These charges are as follows: Project Site Total Water Latecomer Fee .......................... 849.35 EDU Water Credit Latecomer Fee ............................. 28.31 EDU Total 821.04 EDU For 2007 the reimbursement amount per EDU equaled $184.50. The total fee owed by this project is $151,481.88. Credit was given for the $5,224.00 received by the City. If you have any questions, please do not hesitate to contact this office. incerely, usie Turner Latecomers Fee Project Name: Holiday Inn Express Date: 9/30/2008 Calculated By: Susie Turner WATER LATECOMER FEE Maximum Day Demand Per EDU = Reimbursement Amount per EDU 2007 Year 0.62 GPM/EDU $184.50 $/EDU TYPE OF DEVELOPED AREA UNITS EDU 1. 2. ISingle Family Residence 0 0.00 JApartment, Duplex or Multi -Family 0 0.00 Commercial Construction GPM EDU 3. Maximum Day Demand (GPM) 26.6 42.90 Fire Flow GPM EDU 4. Current Set Aside Fire Flow 1000 5. lAdditional Development Fire Flow 500 806.45 Total Water: 849.35 0; Maximum Peak Hour Flow Per EDU = Reimbursement Amount per EDU 2007 Year 0.66 GPM/EDU $527.73 $/EDU TYPE OF DEVELOPED AREA UNITS EDU 1. 2. ISingle Family Residence 0 0.00 JApartment, Duplex or Multi -Family 0 0.00 Commercial Construction 3. Maximum Peak Hour Flow (GPM) GPM 0.0 EDU 0.00 Total Sewer: 0.00