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4. Resolution 5590 - Willows SID #345201 Ist Avenue East PO Box 1997 Kalispell, MT 59903 Phone: 406-758-7720 Fax: 406-758-7831 www.kalispell.com Ipublic_works MEMORANDUM August 20, 2012 To: Doug Russell, City Manager From: Susie Turner, P.E. Public Works Director/City Engineer ,5tr Date: 8/29/2012 Re: The Willows Subdivision Stormwater Improvements Background: The Willows Subdivision experienced flooding in the spring of 2011 due to a plugged 12" discharge pipe from the Willows stormwater detention facility. The residents of the Willows approached the City and requested the City take over maintenance responsibilities for the detention facility and associated discharge piping. The City agreed to provide this service based on the stormwater detention facility and discharge system being updated to current City Standards. The improvements needed to meet current City Standards include re -development, upgrade, and installation of the following: • Detention facility sizing • Outlet structure • Side slopes • Offsite flows • Water quality treatment • Maintenance access The residents of the Willows came to a consensus the improvements would improve and enhance the subdivision and decided to proceed with the development of a Special Improvement District (SID). An engineer was hired to develop a preliminary engineering report which provides a cost estimate for the design and construction of the stormwater improvements. On August 13, 2012, City Council participated in a presentation outlining the Willows stormwater development and the proposed preliminary engineering report for the improvements. Questions arose concerning the offsite flows (bypass flows) in regards to who is responsible for that portion of the construction cost, and whether the City should participate in some of the offsite flows construction costs. Following discussion, Council requested options for consideration based upon potential participation in the offsite flows associated with the 18" pipe for this project. This report will outline the percentages of offsite flows associated with this project and offer several alternatives for participation and funding for the Council to consider. The Willows Detention Facility is located at the downstream end of a large drainage area. Flows from areas within the large drainage area can be broken into three sub -delineated drainage basins. 1. The Willows Drainage Basin (includes offsite vacant field to the north) 2. Muskrat Slough Drainage Basin 3. Leisure Heights 4. County Facility The flow contributions from each sub -delineated drainage basin are as follows: TABLE 1 Flow Contribution Drainage Basin Flow Contribution (cfs) Notes The Willows 13.3 Post Developed 100 year flows Muskrat Slough 2.53 Flows calculated from max allowable flows from pipe outfall structure at Willow Glen Drive Leisure Heights 6.39 Post Developed 100 year flows County Facility 9.16 Post Developed 100 year flows The preliminary engineering report outlined utilizing an 18" pipe to bypass the offsite flows from Muskrat Slough, Leisure Heights, and the County Facility. The flows from the Willows Subdivision were designed to discharge through the existing detention facility 12" discharge pipe and utilize some of the flow capacity of the bypass pipe. The table below summarizes the flows, capacities, and percentages of the pipes. The Willows will utilize the entire capacity of the IT' pipe and 36% of the bypass pipe. The remaining capacity of the bypass pipe will be utilized by the other sub - delineated drainage areas. TABLE 2 % Contribution to By ass Pipe Drainage Areas Total Flow Contribution (cfs) 12" Pipe Contribution (cfs) Bypass Pipe Contribution (cfs) % Contribution to Bypass Pipe Willows 13.3 3 10.3 36% Muskrat Slough 2.53 0 2.53 9% Leisure Heights 6.39 0 6.39 23% County Facility 9.16 0 9.16 32% Total 31.38 28.38 Based on 12" pipe at 0.3% slope with 3 feet of head Please note, the figures used to calculate the % contribution were based on the preliminary engineering and are subject to change, however the same methodology will be used once the final design report is complete. The preliminary engineering report includes the estimated total costs for construction, engineering, and administration/financial, as shown in Table 3. Portions related to the bypass flows are highlighted. 2 TABLE 3 Cost Estimate — Phase 1 ITEM NO. DESCRIPTION EST. QTY UNIT UNIT PRICE EXTENSION 101 General Requirements 1 LS $10,300.00 $10,300.00 102 Mobilization/Demobilization 1 LS $8,200.00 $8,200.00 103 Taxes, Bonds, Insurance 1 LS $6,200.00 $6,200.00 104 Construct Pond Outlet Structure 1 EA $5,000.00 $5,000.00 105 Construct Diversion Structure 1 LS $15,000.00 $15,000.00 106 18" PVC Storm Pipe 1500 LF $25.00 $37,500.00 107 Construct new 18" overflow pipe 1500 LF $35.00 $52,500.00 108 Install manholes for overflow pipe 6 EA $2,000.00 $12,000.00 109 Replace existing discharge structure 1 EA $5,000.00 $5,000.00 110 Excavation to increase pond volume 1000 CY $10.00 $10,000.00 III Pond slope stabilization 3000 SF $5.00 $15,000.00 112 Construct pond access ramp 1 LS $10,000.00 $10,000.00 113 Construct pond access gate 1 EA $2,000.00 $2,000.00 114 Topsoil and reseed all disturbed areas 1 LS $2,000.00 $2,000.00 115 Rip -rap for outlet to river 200 TON $60.00 $12,000.00 116 Rip -rap for detention pond 50 TON $60.00 $3,000.00 117 Miscellaneous Work 1 LS $10,000.00 $10,000.00 Construction Sub -Total Contingency (20%) Construction Total $230,700.00 $46,200.00 $276,900.00 Engineering Design Construction Engineering Services Wetland Study Engineering Total $27,700.00 $27,700.00 $10,000.00 $65,400.00 Bond Counsel and Related Costs Revolving Funds Deposit (5%) District Reserve Fund Deposit (5%) Administrative/Financial Total $11,000.00 $19,628.00 $19,628.00 $50,256.00 Total Project Costs $392,556.00 The construction cost can be further broken down into items associated with the bypass flows pipe construction. Table 4 Proportional Cost Break Down, uses the percent contributions (calculated in Table 2) to produce a proportional cost estimated for the Willows and offsite flows associated with the three sub -delineated drainage basins. Table 4 summarizes, a total proportional construction cost of $41,374.21 is from the Willows Subdivision. The remaining construction costs associated with the offsite flow or bypass capacity is $87,625.79. Please note, the figures used to calculate the % contribution were based on the preliminary engineering and are subject to change, however the same methodology will be used once the final design report is complete. 3 TABLE 4 Proportional Cost Break Down The Muskrat Leisure County Total Off Site Flows ITEM NO. Construction Description Cost Willows Slough Heights Facility Cost Construct Diversion $15,000.00 0 $5,000.00 $5,000.00 $5,000.00 $15,000.00 105 Structure 106 18" PVC Storm Pie $37,500.00 $13,609.94 $3,343.02 $8,443.45 $12,103.59 $23,890.06 Construct new 18" $52,500.00 $19,053.91 $4,680.23 $11,820.82 $16,945.03 $33,446.09 107 overflow Pipe Install manholes for $12,000.00 $4,355.18 $1,069.77 $2,701.90 $3,873.15 $7,644.82 108 overflow pipe 115 Rip -rap for outlet to river $12,000.00 $4,355.18 $1,069.77 $2,701.90 $3,873.15 $7,644.82 Totals $129,000.00 $41,374.21 $87,625.79 Percent Cost Contribution 1 32% 68% Alternatives and Options: Alternative 1: Find that the offsite flows are representative of new development impacting the drainage system and finance the facility upsizing with impact fees. Option 1 Elect to not participate in the funding of the improvements. Option 2 Elect to participate in 100% funding of the bypass improvements with impact fees covering the offsite flow percentage (68% per the example) and stormwater assessments for the remaining portion of the bypass project (18" pipe). tion 3 Elect to participate in the funding of the improvements with impact fees up to the percentage associated with off -site flows (68% per the example) for the bypass project (18" pipe). Alternative 2: Find that the offsite flows represent historical quantities for the Willows Subdivision. Option A Elect to not participate in the funding of the improvements. Option B Elect to participate in in the funding of the improvements with storm sewer assessments up to the entire bypass project (18" pipe). Option C Elect to participate in the funding of the improvements with storm sewer assessments up to the percentage associated with off -site flows (68% per the example) for the bypass project (18" pipe). Alternative 3: Deny the petition to form the SID Alternative 4: As determined by Council C! Funding Sources: Impact fees: The City's Stormwater Impact Fee Fund has $669,236, as outlined in the fiscal year 12/13 budget with two projects totaling $436,500 (though that is dependent upon new development occurring to encumber these appropriated funds.) Even with these projects, funding would be available in the Stormwater Impact Fee Fund. Stormwater Fund: Funding to support the construction for the bypass piping could be used from the budget line item Designated Capital Projects. Designated Capital Projects revenues are allocated from stormwater assessments at $50,000 per year. Ending cash in this line item for FY 12/13 is $465,844. With Council approval for use of either source, a new CIP would be created using the estimated bypass pipe construction cost with a follow up 12/13 budget amendment. Staff Recommendation: Discussion at the previous work session identified the offsite flows from neighboring development as having a negative impact upon the drainage system serviced by the Willows Subdivision. As such, it is recommend that Council approve the Resolution Authorizing the Willows Subdivision Special Improvement District and participate in funding the bypass project with impact fees up to the percentage associated with off -site flows (68% per the example) for the bypass project (1.8" pipe). 5 BE IT RESOLVED by the City Council (the "Council") of the City of Kalispell (the "City"), Montana, as follows: Section 1. Passage of Resolution of Intention. This Council, on June 18, 2012, adopted Resolution No. 5565 (the "Resolution of Intention"), pursuant to which this Council declared its intention to create a special improvement district, designated as Special Improvement District No. 345 of the City (the "District"), under Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended, for the purpose of financing the costs of certain local improvements described generally therein and consisting primarily of a storm water detention facility and outlet (the "Improvements") and paying costs incidental thereto, including costs associated with the sale and the security of special improvement district bonds drawn on the District (the "Bonds"), the creation and administration of the District, and the funding of a deposit to the City's Special Improvement District Revolving Fund (the "Revolving Fund") and to a District reserve account. Section 2. Notice and Public Hearing. Notice of passage of the Resolution of Intention was duly published and mailed in all respects in accordance with law, and on July 16, 2012, this Council conducted a public hearing to hear and pass upon protests against the proposed Improvements and the creation of the District. The public hearing was the first meeting of the Council following the expiration of the period ended 17 days after the first date of publication of the notice of passage of the Resolution of Intention (the "Protest Period"). Section 3. Protests. Within the Protest Period, three (3) protests were filed with the City Clerk by the owners of property in the District subject to assessment, representing 3.45% of the total estimated costs of the Improvements and costs incidental thereto to be assessed against the properties in the District, in accordance with the method or methods of assessment in the Resolution of Intention. Section 4. Creation of the District; Insufficiency of Protests. At the next regular meeting after the expiration of the Protest Period (i.e., the meeting on July 16, 2012), the Council heard and passed upon all protests and determined that the protests made by owners in the District to be assessed for the cost of the proposed Improvements and incidental costs to be financed with the Bonds is not more than 50% of all of such costs in the District. The Council found and hereby ratifies and confirms that the protests against the creation of the District or the making of the Improvements filed during the Protest Period are insufficient. The Council subsequently analyzed the Improvements in greater detail and determined that additional City contributions toward the costs of the Improvements may be warranted. The District is hereby created on the terms and conditions set forth in, and otherwise in accordance with, the Resolution of Intention, but taking into account any additional contributions by the City toward the costs of the SID #345 — Willows Subdivision Improvements, thereby, if made, reducing the special assessments against properties in the District. The findings and determinations made in the Resolution of Intention, including, without limitation, those relating to benefits conferred, funding the Revolving Fund and District reserve account and securing the Bonds thereby, and using the proceeds of the Bonds to pay or reimburse the City for all or a portion of the costs of the Improvements and costs incidental thereto are hereby ratified and confirmed. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 4TH DAY OF SEPTEMBER, 2012. 0101=41 Theresa White City Clerk Tammi Fisher Mayor SID #345 — Willows Subdivision 2