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Miscellaneous1 A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, MAY 4, 1998, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR WILLIAM E. BOHARSRI PRESIDED. COUNCIL EMBERS JIM ATKINSON, NORBERT DONAHUE, JOHN GRAVES, DALE HAARR, DUANE LARSON, GARY NYSTUL, RON VAN NATTA, DOUG SCARFF AND CITY ATTORNEY GLEN NEIER AND CITY MANAGER CLARENCE KREPPS WERE PRESENT. Mayor Boharski called the meeting to order and led the Pledge of Allegiance. AGENDA APPRO Gary Nystul moved to approve the agenda with the addition of Resolution 4401 and •. addition of - draft of new City -County Health Department Interlocal Agreement. The motion was seconded by There was discussion. Atkinson said he opposed any action on the new Interlocal Agreement because there are several concerned citizens who would like to be present at the discussion and who would have liked to have known it was on the agenda. Nystul commented the discussion is only preliminary and everyone will have a chance to comment prior to final approval. Atkinson moved to amend the motion by deleting any action on the Interlocal Agreement. The motion was seconded by Larson. There was discussion. Donahue said the Commissioners are going to act on the agreement and he feels the Council should follow suit. He added he would like to see a motion of intent to adopt the Interlocal Agreement. Atkinson repeated the item shouldn't be placed on the agenda without proper notice to the public. Boharski said the purpose of adding it to the agenda is to discuss the issue in front of the public to help everyone understand the agreement. Larson said although he seconded Atkinson's motion, he doesn't feel there is any problem in discussing the agreement as long as the Council only gives it preliminary approval. favor.The amendment failed upon vote with Atkinson and Van Natta voting in •. 11.• •♦. f •.: •. I1:! •••. • 2 CONSENT AGENDA APPROVAL A. Council Minutes -Regular meeting April 20, 1998. B. Approval of Claims per Payables Register-$285,415.28. C. Final Appointment -Toby Hubbard-Firefighter/EMT-1 D. Proclamations - National Historic Preservation week Kalispell Letter Carrier Day Haarr moved approval of the consent agenda. The motion was seconded by Nystul. There was discussion. Boharski questioned a bill from PTI Communications for the Hockaday Center for the Arts in the amount of $212.00. He said he feels the amount is excessive for long distance. Krepps answered the bill includes lease charges. Boharski then inquired about a Community Development bill of $231.37 to mow and clean up South Woodland. He asked if that isn't something the Parks Department could be doing. Community Development Director Larry Gallagher said the bill included the removal of all the weeds and debris from South Woodland and Teton Terrace along with some clean up around the CDC building. Parks Director Mike Baker answered it will be another two weeks before all the summer staff is hired and the Department doesn't have the manpower right now for additional tasks. Boharski proclaimed May 9 as Kalispell Letter Carrier Day and May 10-16 as National Historic Preservation Week. The motion carried unanimously upon vote. HEAR THE PUBLIC Bill Wright, 1104 1st Avenue East, a member of the Street Tree Commission, presented Mayor Boharski with the 1997 Growth Award, which represents the 6th year in a row the City has received the award for achievements in tree plantings and maintenance. Gilbert Bissell, 76 Stafford Street, Chairman of the Airport Advisory Board, urged the Council to move forward with the sale of Daley Field. He said the airport project should be done in its entirety, and not piecemeal. Bissell added the sale of Daley Field is imperative to the project. David Miller, 900 West Reserve, proposed the Council start official dialogue on a skateboard park. He said petitions for a park are 3 being circulated and hopefully at the next meeting the petitions, with approximately two thousand (2000) signatures, can be presented to the Council. Daniel Ulibarri, 91921/2 Hwy 35, Bigfork, said he is a youth pastor and he has found a large support in the community for a skateboard park. He asked the Council to set aside time in the next few weeks to talk about location, costs, insurance and other issues surrounding a park. Ken Yachechak, 157 N. Meridian, urged the Council to coincide the 1st Alley East Utility Project with the sale of the KDC and NFS lots. He said it doesn't make any sense to do the underground utilities until the City knows what kind of development may go into that area. David Dachs, 335 Summit Ridge Drive, spoke to --the Council as a representative of Kidsports and encouraged members to proceed with the sale of Daley Field for the general purpose of airport improvements. Boharski opened the public hearing. Proponen-A None None Boharski closed the public hearing. Resolution 4400 is necessary to proceed with repairs of the digester and fermenter system at the WWTP. The $180,000.00 needed is available in the Equipment Reserve Fund but a budget amendment is needed to authorize the expenditure of the funds. Nystul moved Resolution 4400, a resolution amending the annual appropriations of the City of Kalispell, Montana, as set forth in the 1997-98 Budget adopted by the City Council for the Sewer Fund, Wastewater Treatment Plant Equipment Replacement (Capital Improvement) Account. The motion was seconded by Larson. There was no discussion. The motion carried upon roll call vote with Atkinson, Donahue, Graves, Haarr, Larson, Nystul, Scarff, Van Natta and Boharski voting in favor. Pieter Drent, the City Parks Director from September 4, 1973 to September 18, 1987, was instrumental in the beautification of woodland Park. Nystul moved Resolution 4401, a resolution dedicating the Formal Garden in Woodland Park as the Pieter Drent Formal Garden and to provide an effective date. The motion was seconded by Larson. There was discussion. Nystul commented that when he worked for the City as the Finance Director you could be sure when Pieter asked for money he had "arm twisted" the merchants down as far as they would go. Donahue said he also worked with Pieter for many years and his great love was flowers. He added it's a fitting tribute to dedicate the garden in his memory. Larson said he served on the Evergreen Fire Department with Pieter over forty years ago and he was always kind and gentle with a deep concern for the community and kids. He suggested the City have a formal dedication ceremony and invite Pieter's wife, Therese. The motion carried upon roll call vote with Atkinson, Donahue, Graves, Haarr, Larson, Nystul, Scarff, Van Natta and Boharski voting in favor. ORDINANCE 1287-ZONING TEXT AMENDMENT -DAILY INTER LAKE -2ND READING This ordinance would reduce the minimum rear yard in B-2 and B-3 zoning districts from twenty (20) feet to ten (10) feet. Haarr moved the 2nd reading of ordinance 1287, an ordinance amending Sections 27.14.040 and 27.15.040 of the Kalispell Zoning Ordinance, (ordinance 1175), by establishing a minimum rear yard of ten (10) feet in General Business (B-2) and Community Business (B- 3) zoning districts, and declaring an effective date. The motion was seconded by Scarff. There was no discussion. The motion carried upon roll call vote with Atkinson, Donahue, Graves, Haarr, Larson, Nystul, Scarff, Van Natta and Boharski voting in favor. STATION REFLAc ENT The Kelly Road Lift Station #5 is marginal for existing flows and a new lift station is needed. Billmayer Engineering has proposed entering into an agreement with the City for the replacement. Public Works Director Jim Hansz explained the existing lift station serves the Greenacres area and is undersized. He said when the Willows Subdivision was developed one of the criteria was to upgrade the lift station. Hansz said at the beginning of the 5 development, which was about two (2) years ago, the City decided it could contribute $50,000.00 to the cost of the upgrade with the remainder being funded by the Willows Subdivision. He said since that time, the size of the lift station has been increased to handle future growth and therefore the -cost is greater than what was originally anticipated. Because of the cost increase, Billmayer Engineering has proposed the City enter into an agreement for partial reimbursement of construction costs in accordance with the City's Extension of Services Plan. Hansz said when the project is complete, the City will have contributed an additional $49,503.00 to the project and in return would receive a substantially upgraded lift station at a cost lower than normal. Haarr moved to accept the proposal by Billmayer Engineering and enter into a cost-rei urs ent agreement within the parameters specified. The motion was seconded by Nystul. There was discussion and Hansz answered questions. Boharski asked if the storm drain issues in the Willows Subdivision have been taken care of and if the lift station will compound the water problems in that area. Hansz answered the DEQ has approved a storm drain system for the subdivision and tests have shown that the system should function with no problem. Donahue inquired as to whether the Willows Subdivision is in the City limits. Hansz said at this time the subdivision is outside the City but has agreed to annexation. He added when annexation occurs, the lift station is big enough to handle the developed areas. The motion carried unanimously upon vote. DALEY FIELD In December of 1997 the City sold Lot 2 of Daley Field Subdivision to Rosauers. Staff is now recommending the sale of Lots 1 and 3 to finance airport improvements. Krepps explained authorization is needed to move ahead with the sale. He said Staff feels leasing the property could create several problems and recommended the Council move ahead with the offering. Haarr moved the Council not act on the sale or lease of Daley Field until after the receipt of the Master Plan and designation of the City Airport is complete. The motion was seconded by Scarff. There was discussion. Haarr said when the City has money sitting in a "pot" for a project, the project always seems to outgrow the "pot." He cited the Youth Athletic Complex as an example and said he feels it's premature for the City to act on Daley Field without a firm plan for the airport. Larson disagreed, saying the Council has been given the reasons for why the property needs to be sold and has been asked by the citizens of Kalispell to move ahead with the project. He reminded the Council that promises were made to sell the property. He said it's time to move forward with the sale and not "throw another roadblock in the way of progress." Van Natta also encouraged the Council to vote in favor of the sale saying the property is as valuable now as it's going to get. Boharski said he feels, as Haarr does, that the City hasn't shown much ability to be careful with the money it has in the bank. He added the fields will not depreciate in value and the Council should wait. Donahue stated he also feels the Council hasn't been very wise in its use of resources and has spent money it should have kept. He said if the land is sold the money will be "down the tube," but if the land is leased the City will have a constant flow of cash that will go directly to the airport. The motion carried upon roll call vote with Donahue, Haarr, Nystul, Scarff and Boharski voting in favor and Atkinson, Graves, Larson and Van Natta voting against. FINAL PLAT -BUFFALO SQUARE SUBDIVISION This subdivision contains approximately 5.852 acres and is located on the west side of whitefish Stage Road, south of Edgerton School. Preliminary Plat approval was granted on November 3, 1997, subject to five conditions. All conditions have now been adequately met. Nystul moved final plat approval of the Buffalo Square Subdivision. The motion was seconded by Haarr. There was no discussion. The motion carried unanimously upon vote. CONDITIONAL USE PERMIT-GRUMPA'S RESTAURMT AND CASINO "G" L.L.C. Development has requested a conditional use permit to allow the use of an existing building, proposed for expansion, for a casino and restaurant in a B-2, General Business zoning district. Haarr moved approval of the Conditional Use Permit for Grumpa's. The motion was seconded by Nystul. There was discussion. MEMORANDUM April 24,1998 To: Clarence Krepps, City Manager From: Jim Iiansz, Director of Public W rks Subject: Kelly Road sewage lift station #5 replacement Billmayer Engineering on behalf of the developer of the Wallows Subdivision has requested the City enter into a cost reimbursement agreement for this project. Background: Kelly Road lift station #5 (LS #5) serves the Greenacres area and will collect sewage flows for the Willows Subdivision when it is complete and from other area developments in the future. The capacity of the existing lift station is marginal for the existing flows and its reliability is problematic. The facility was intended for eventual repair and upgrade but the advent of the Willows Subdivision and potential future growth accelerated the need. The City reviewed its sewerage system replacement plans and determined that it could, at that time justify, and City Council approved, participating with the developer in the cost of upgrading LS #5 in the amount of $50,000.00. This amount was originally provided in the FY 1997 budget and was carried over to the current FY 1998 budget. When the Willows was proposed the flow generated by the Willows was estimated to be a significant amount. The developer was asked to participate in the cost to upgrade the facility in addition to the normal developer paid costs for on -site improvements. It was anticipated that the upgrade costs paid by the City and the developer would be approximately equal and in proportion to the flow contribution of each. The upgrade also provides for the relocation of LS #5 out of a resident's front yard to a superior location. Current Situation: Final design of LS #5 now reflects the total estimated flows for all the contributing areas and results in a designed capacity of 150,000GPD. This is about 50% greater than originally anticipated before the engineering was completed. Of this total, existing and future flows not related to the Willows Subdivision are roughly 67% of the capacity. The Willows and related future developments will utilize the remaining 33% of design capacity. Post Office Box 1997 • Kalispell, Montana 59903-1997 Telephone (406) 758-7700 • FAX (406) 758-7758 The original cost sharing formula was intended to reflect an approximate equal and proportional split of cost. However, the actual split of cost is in inverse proportion to flow contributed. The current funding formula would provide for the City paying $50,000.00, approximately one-third of the $153,000.00 project cost, for two-thirds of the capacity utilization. The developer would be obligated to pay two-thirds, $103,000.00, of the cost for one-third of the lift station capacity. The City's adopted Extension of Services Plan, Policies of Meeting the Cost of Services provides that the City will upgrade existing facties to meet the demands of growth. Xt-#;evc-r, V t1e Cirf's x7,grafe sclletyxletr Ivit-11get cammtt acc+nwiDtate- th&-tovetl),Tuent then the developer is obligated to install the upgraded facilities. The policy states that the developer may be reimbursed for this cost from the connection fees generated within the development. The developer has asked the City to reconsider t1:e-6rrent funding arrangement for this iject 9--Tt pritpises eTteriTg iI 2T 2gr nev f1)rpaA2 I reinYP-rsene-LtTf oi,-TT-&FT, costs in accordance with the City's Extension of Services Plan. The partial reimbursement of construction costs would be made from sewer connection fees within the WUlows subdivision. The developer has asked that the City continue to participate in the financing of the project by providing the already budgeted $50,000.00 to cover a portion of the construction costs. The maximum reimbursement to the developer would be limited to the actual total of connection fees generated by the development. The total of connection fees generated by the Wfflows subdivision, at 1998 rates, is $118,755.00 and a. on a fee of $1,365.00 for each of 87 lots. This fee is comprised of two pieces: the VVWTP component and the collection system component The total fee generated by the collection system component of the fee, $569.00 per lot, is $49,503-00. Therefore, the total possible reimbursement, at 1998 rates, would be $49,503.00. With construction estimated to cost approximately $153,000.00 the developer would continue to contribute $53,497.00 to the overall cost of improvements to There is benefit to this proposal. The City will receive a substantially upgraded lift station in place of a lift station that has a long history of capacity and reliabty problems. The new lift station will be moved from its present location in a resident's front yard. The lift station wiIl have the capacity needed to accept flows from any new sewerage systems that may be instafled in the future to serve existing areas of Greenacres having septic system problems. The City wffl receive a much improved lift station at a lower cost than normally expected due to the developer's participation of $53,497.00. The proposal if approved will .11'ejAI-01 In dealing with development. # it The Extension of Services Plan contains policy language for meeting the costs of services, pages 21-23 attached, and was adopted by the City Council in November 1995 with resolution Overall,te impact to the fund is positive t that the $153,000.00 facility provided would,under normal #a r: be funded entirely by the sewer replacement fund, but in this case the City will receive an upgraded-Uft station for a cost of S",503.00. Based on review of this policy and discussions with the City Attorney I recommend acceptance of this proposal by thedeveloper of ## #nfurther recommend entering into a cost reimbursementagreement t the developer t t the ordinance2. If the property is to be annexed, the City's annexation or resolution shall specificallystate _ method_ • ,time frame• bringing _ existing conditions into compliance with City standards, • shall identifyparties responsible for _ improvements. 3. If City services are to be extended •concurrent annexation, property owner shall sign_ Consent toAnnex/Notice • " Withdrawal fromRuraltire District_ • a PetitionRequesting Annexation. Both the petition and the waiver shall be recorded with the County Clerk and Recorder's Office. The property owner shall also sign, and the City shall record, a waiver of the right to protest participation in and the formation of any special improvement district that be formed to improve the _ • services, utilities, streets or other improvements. aStructuresYears _ - b. •' •-Years Stationary Equipment (motors, 20 Yearsc. •Asphalt Surfaces: • 20 Years Collector 15 Years Arterial St. - 10 Years aside s • - _ funds to replace the following shall be considered the components: pumps, ._. The amount to be set aside each year for the replacement of municipal infrastructure components shall be the cost of construction, if new, or the total estimated replacement cost divided by the remaining- number of years of the life of the component. 2. It shall be the responsibility of the developer or property owner to extend all roadways and utilities from the existing City facilities to the site of development in accordance with all City standards and specifications or provide appropriate easements. It shall further be the responsibility of the developer or property owner to construct all streets and utilities to the furthest boundary of the property to be developed in order to facilitate future development. 3. The ability of the City to increase existing utility line capacities to meet the demands of growth is dependent upon the availability of funding. If the City's ability to finance the necessary enlargement cannot keep pace with development, or if the improvements schedule does not mesh with that of the developer, it Ell shall be the responsibility of the developer to finance and construct City -approved alterations to the existing infrastructure sufficient to accommodate the development. In the event of this occurrence, the developer may be reimbursed by the City through utility service connection fees for said development. Said, reimbursement shall not exceed the cost, including interest, of the improvements •e, -- • e. • City system, nor reimbursement exceed the value of the connection fees collected from the specific development. 4. If the developer bears the costs of extending services and/or utilities, a Developer's Extension Agreement may be entered into between the developer an• the City. This agreement,_ term assessmentsnot to exceed ten (10) years, allows the developer to recoup costs associated with the extension of services or utilities by charging future entities wishing to connect to or use the extended service or utility a "Latecomer's Fee". The Developer's Extension Agreement shall set forth the specific parcels which could benefit from the extension (those within a described "design area") and specify the amount to be assessed to each parcel. The specific parcels and to be included in the Developer's Extensi•. Agreement are subject to approval by the City Council. The late -coming customer shall pay the extender a pro-rata share of the extension costs, including design and inspection fees. The pro-rata share may be based on lot area, front footage, or other means agreeable to both the City Council and the developer which is equitable to both parties as well as future customers. 5. If the City requires the customer or developer extending a sewer or water line to install a larger size than that required by City standards for a particular project, the City shall pay the difference in cost between the two lines. 6. The City reserves the right to further extend sewer or water. INS installed by the preceding developer or property owner without paying compensation. The City also reserves the right to charge future sewer or water utility users beyond those areas identified in the Developer's Extension Agreement, if applicable, for their pro -rated share of the City's cost for the oversizing of the line. This in no way shall diminish the preceding developer's right to collect SERVICE LINE connection fees within the limits of a Developer's Extension Agreement. In the case of water lines, the pro-rata cost shall be based on the domestic capacity plus fire flow capacity existing at the point of extension as opposed to the domestic plus fire flow capacities required by the development. 7. Financing the construction of new streets in a proposed development, or the upgrading of streets in an existing developed area, shall be accomplished in one, or a combination of, the following methods: m a . In an undeveloped area, the developer shall provide all necessary _ right-of-way, or additional right-of-way if less than adequate right-of-way exists. b. The developer shall bear the cost of constructing all improvements within the right-of-way • • with this Plan, the Kalispell Subdivision Regulations. C. Through the formation of a Special Improvement District City's Standards For Design And Construction, and the City of d. Federal or State grant funds. -' - Fuel Taxmonies. sewerS. Connection and user fees for properties located outside the City limits for and.water services shall be charged as follows: ^ fee for connection• the City's water utility shall 125% of the fee charged to City residents. b. For the use of City water and sewer, the rate shall be 1251 of the rate charged to City residents, until such time that the property is annexed into the City. c. For connection to the City's sewer system, the fee shall either be of fee for residents . _ • -collection•treatment services are provided), or 200% of the fee for City residents (if treatment only is provided). 9. As new City streets are constructed, and as existing streets are improved, storm drainage infrastructure shall be installed or improved to City standards. It is the responsibility of the developer to convey storm water from their property to an appropriate point of disposal. The -quantity and rate of runoff from a developed parcel cannot exceed that which would occur had the property remained undeveloped. 10. For the purposes of fire, police, and all general government services, the tax burden for these services shall be shared by all city • ^ NK BILLMAYER ENGINEERING April 16, 1998 Jim Hansz, P.E. Director of Public Works City of Kalispell PO Box 1997 Kalispell, MT 59901 Re: Kelly Road Lift Station Replacement Dear Mr. Hansz: You will recall we have been working with the City staff to jointly develop a replacement design for the City owned Kelly Road Sewage Lift Station. That facility serves a portion of Green Acres and the recently approved Willows Subdivision. Additional capacity is built into the facility to accommodate future connections from the remainder of Green Acres, Leisure Subdivision, the Christian School, and County owned facilities. Initially, the City of Kalispell committed $50,000.00 toward construction of the lift station replacement based on early estimates of sizing. As the service area was studied in detail, it became apparent that this lift station was to be enlarged to provide regional service. The following table presents the sewage load contributed to this facility by the various users. REPLACEMENT LIFT STATION USERS AND CONTRIBUTION Load Percent of Percent of Sewage Source (Gallons/Day) Total Load Contribution Total Cost American Land & Dev. Willows Sub. 28,000 Leisure Sub. & Adj. Future Connects 22,000 33% $103,000 67.3% 50,000 City of Kalispell Green Acres Existing 52,500 Future Green Acres 47 67% $50,000 32.7% 100,000 DESIGN TOTAL 150,000 100% $153,000 100% 2191 Third Avenue East • Kalispell, Montana 59901 • (406) 257-8708 • FAX (406) 257-8710 Jim Hansz Aprfl 16,1998 Kelly Road Lilt Station Replacement Pap Two Now that the facility has been designed, approved by M.D.E.Q., and the City of Kalispell, and detailed construction estimates developed, additional funding is required to construct an upgraded lift station with planned growth capacity. To that end, we request the collection system component of the service connection fees generated from The Willows Subdivision be utilized to reimburse American Land & Development for the expanded construction cost of the lift station. This concept for developer reimbursement is in accord with the City of Kalispell Extension of Services Plan, Resolution No. 4246 (see Policies of Meeting The Cost of Services, paragraph 3., p.21 & 22, attached). The collection system component of The Willows Subdivision connection fees will generate $49,503.00 at buildouL When combined with the pledged $50,000.00 from the City of Kalispell, the percentage of funding contribution from the City of Kalispell will be equitable with the percentage of service load. Your favorable recommendation before City officials will be greatly appreciated. Sincerely, cc: American Land & DevelopmenL 2. If the property •. be annexed, annexation ordinance or resolution shall specifically state the method and -time frame for bringing the existing conditions into compliance with City standards, •. shall identify theparties responsible • the • • 3. If City services are to be extended without concurrent annexation, the property owner shall sign a Consent to Annex/Notice of Withdrawal from Rural Fire District and a Petition Requesting Annexation. Both the petition and the waiver shall be recorded with the County Clerk and Recorder's Office. The property owner shall also sign, and the City shall record, a waiver of the right to protest participation in and the formation of any special improvement district that may be formed to improve the existing services, utilities, streets or other improvements. r. POLICIES OF 1. For - purpose of setting components of the physical plant, as the estimated life of each of a. Structures - 30 Years b Pipelines C. Stationary Equipment (motors, 20 Years • Asphalt Surfaces: Local --Years St. - 15 Years Arterial St. - 10 YearsCollector aside adequate funds to replace the following shall be considered the • p pumps, conveyors, etc.) The amount to be set aside each year for the replacement of municipal infrastructure components shall be the cost of construction, if new, or the total estimated replacement cost divided by the remaining- number of years of the life of the component. 2. It shall be the responsibility of the developer or property owner to extend all roadways and utilities from the existing City facilities to the site of development in accordance with all City standards and specifications or provide appropriate easements. It shall further be the responsibility of the developer or property owner to construct all streets and utilities to the furthest boundary of the property to be developed in order to facilitate future development. 3. The ability of the City to increase existing utility line capacities to meet the demands of growth is.dependent upon the - availability of funding. If the City's ability to finance the necessary enlargement cannot keep pace with development, or if the improvements schedule does not mesh with that of the developer, it 21 shall be the responsibility of the develo er to finance and construct City -approved alterations to the existing infrastructure sufficient to accommodate the development. In the event o t s occurrence, the developer may be reimbursed by the City t roug utility service connection fees for said eve o menSaid reimbursement shall not exceed the cost, including interest, of t e mprovements to the —existing C ty system, nor shall the reimbursement exceed the value or the connection tees c`oIl from the specific development. 4. If the developer bears the costs of extending services and/or utilities, a Developer's Extension Agreement may be entered into between the developer and the City. This agreement, with a term not to exceed ten (10) years, allows the developer to recoup costs associated with the extension of services or utilities by charging future entities wishing to connect to or use the extended service or utility a "Latecomer's Fee". The Developer's Extension Agreement shall set forth the specific parcels which could benefit from the extension (those within a described "design area") and specify the amount to be assessed to each parcel. The specific parcels and assessments to be included in the Developer's Extension Agreement are subject to approval by the City Council. The late -coming customer shall pay the extender a pro-rata share of the extension costs, including design and inspection fees. The pro-rata share may be based on lot area, front footage, or other means agreeable to both the City Council and the developer which is equitable to both parties as well as future customers. 5. If the City requires the customer or developer extending a sewer or water line to install a larger size than that required by City standards for a particular project, the City shall pay the difference in cost between the two lines. 6. The City reserves the right to further extend sewer or water. INS installed by the preceding developer or property owner without paying compensation. The City also reserves the right to charge future sewer or water utility users beyond those areas identified in the Developer's Extension Agreement, if applicable, for their pro -rated share of the City's cost for the oversizing of the line. This in no way shall diminish the preceding developer's right to collect SERVICE LINE connection fees within the limits of a Developer's Extension Agreement. In the case of water lines, the pro-rata cost shall be based on the domestic capacity plus fire flow capacity existing at the point of extension -as opposed to the domestic plus fire flow capacities required by the development. 7. Financing the construction of new streets in a proposed development, or the upgrading of streets in an existing developed area, shall be accomplished in one, or a combination of, the following methods: m