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Harball to Goldberg/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 Mark Goldberg 195 West 12th Avenue Denver, CO 80204 Re: Latecomer's Fee for Fire Flows Dear Mark: Tel 406.758.7977 Fax 406.758.7979 charball@kalispell.com As we discussed the other day, the latecomer's fee billing that you received from the City for the Tally Lake Ranger Station 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. Mark Goldberg October 30, 2008 Page - 2 The amount due and owing to the City is $112,528.40. 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 to discuss this further. The Interim City Manager has been brought up to date on this as well. CharleA. Harball City Attorney Office of City Attorney City of Kalispell - City of Kalispell Public Works Department Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831 9/30/08 To: Charlie Harball, City Attorney Cc: Jim Hansz, P.E., Public Works Director Re: Tally Lake Ranger Station -Water Latecomers Fees Attached is the calculation sheet used to determine the Water Latecomers Fee. Per the agreement with Owl Corporation 635.65 water EDUs remain. These charges are as follows: Project Site Total Water Latecomer Fee .......................... 832.26 EDU Remaining Water EDUs..................................... 635.65 EDU Water Credit Latecomer Fee ............................. 25.74 EDU Total 609.91 EDU For 2007 the reimbursement amount per EDU equaled $184.50. The total fee owed by this project is $112,528.40. Credit was given for the $4,748.39 received by the City on 9/19/08. If you have any questions, please do not hesitate to contact this office. S' cerely,r O sie Turner Latecommers Fee Project Name: Tally Lake Ranger Station Date: 9/24/2007 Calculated By: Susie Turner Maximun Day Demand Per EDU = Reimbrusment Amount per EDU 2007 Year 0.62 GPM/EDU $184.50 $/EDU TYPE OF DEVELOPED AREA UNITS EDU 1. 2. 1 Single Family Residence 0 0.00 Apartment, Duplex or Multi -Family 0 0.00 Commercial Construction GPM EDU 3. Maxumum Day Demand (GPM) 16.0 25.81 Fire Flow GPM EDU 4. JProposed Current Set Aside Fire Flow 1000 5. Devlepment Fire Flow 1500 806.45 Total Water: 832.26 Maximun Peak Hour Flow Per EDU = Reimbrusment 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 GPM EDU 3. Maximun Peak Hour Flow (GPM) 10.5 15.91 Total Sewer : 15.91