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1. Special Improvement District #345 - Willows SubdivisionCity p of Kalispell OFFICE OF THE CITY MANAGER l�A1'�TA TO: Mayor Fisher and Kalispell City Council FROM: Doug Russell, City Manager\ DATE: September 19, 2012 SUBJECT: Willows Special Improvement District At the previous Council meeting, the agenda item for the Willows Special Improvement District was tabled for further discussion related to potential Council participation in the expenses related to the drainage project. Attached to this memo is the previous information distributed and information related to the annual storm -water assessment for respective areas, impact fees collected from respective developments, and a cost breakdown for maintenance of the retention pond. It is requested that the City Council discuss this topic and provide direction to staff in relation to a future action item related to the special improvement district and the potential participation by Council in the costs of the proposed project. www.kalispell.com 201 IStAvenue East PO Box 1997 Kalispell, MT 59903 Phone.: 406-758-7720 Fax: 406-758-783I www.kalispell.com 1public_works MEMORANDUM To: Doug Russell, City Manager` From: Susie Turner, P.E. Public Works Director/City Engineer5(- Date: 9/20/2012 Re: The Willows Subdivision Stormwater Council Inquiries The Willow SID approval and City participation contribution was discussed at the September 4, 2012 meeting. Below is Staff s response to the questions and additional information requested by Council. In an effort to stay consist with the material presented to Council, the following information will be presented using the four sub -delineated drainage basins as outlined in the September 4, 2012 meeting. 1. The Willows Drainage Basin (includes offsite vacant field to the north) 2. Muskrat Slough Drainage Basin 3. Leisure Heights 4. County Facility Impact Fees: Stormwater impact fees collected to date since the inception of Stormwater Impact fees in 2008 are listed below per drainage basin: Drainage Basin Impact Fee $ The Willows Drainage Basin 0.00 Muskrat Slough Drainage Basin 0.00 Leisure Heights Subdivision 7,760 Kounty Facility 0.00 Total 7 760 Stormwater Assessments: Stormwater Assessments for FY 11/12 are provided in the table below. Retrieval of Stormwater Assessments collected back to 2001, when development first started in the Willows Subdivision, requires paper tracking for each property and staff did not have the time to collect this data prior to the Council meeting. If it is desired and provided more time, we can collect this remaining information, or estimates can be achieved by multiplying the FY 11/12 amount by the respective number of years. This would be a liberal estimate based upon lower fees and number of residences in the earlier years. Drainage Basin Stormwater Assessment FY 11/12 $ The Willows Drainage Basin 5,498.09 Muskrat Slough Drainage Basin 12,330.03 Leisure Heights Subdivision 3,919.80 County Facility 0.00 Total 21747.91 Cost to Maintain Detention Facility: The annual cost to perform the maintenance for the Willow Detention Facility is estimated to be $ 2,656. This estimation includes semi-annual responsibilities to inspect, clean, and maintain the facility. A breakdown of the cost is provided in the Willow Detention Facility Maintenance Costs attachment. THE WILLOWS AREA STORM SEWER ASSESSMENTS 6 Months Action Items: Remove accumulated trash and debris Inspect outfall structure and clean if necessary Jet rod outfall pipe if necessary Jet rod bypass pipe if necessary Number of Employees 2 Number of Hours 4 Employee Cost ($32.01/hr) $ 256.08 Equipment Cost (@$195/hr) $ 780.00 Foreman's Time Scheduling (@$32.82) $ 32.82 Total Cost $ 1,068.90 12 Months Action Items: Remove accumulated trash and debris Inspect outfoll structure and clean if necessary Jet rnr} nutfall pipe if nPre.q.wnry Jet rod bypass pipe if necessary Vac, out sediment chamber Number of Employees Number of Hours Employee Cost (@$32.01/hr) Equipment Cost (@$195/hr) Foreman's Time (@$32.82) 2 6 $ 384.12 $ 1,170.00 $ 32.82 Total Cost $ 1,586.94 .Annual Maintenance Cost $ 2,655.84 4 201 1 sr Avenue East PO Box 1997 Kalispell, MT 59903 Phone: 406-758-7720 Fax: 406-758- 7831 www.kalispell.com 1public_works MEMORANDUM August 20, 2012 To; Doug Russell, City Manager From: Susie Turner, P.E. Public Works Director/City Engineer Date: 8/29/2012 Re: The Willows Subdivision Stormwater Improvements Back Mond• 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 sormwater 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 • Offslte flows Water quality treatment Maintenance access The residents of tht Willows ca ie to a consensus the hnprovemneiAs would hiiprovc and culianue else 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 IS" 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. P relirninan `nee €� ox end ��site flow ereetae 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 bivl,krm inn Liilee 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 I `low Contribution Drainage Basin Flow Contribution (CAO Motes The Willows 13.3 post Developed 100 year flows Muskrat Slough 2.53 Flows calculated from max allowable Bows from pipe outfall structure at Willow Dien Drive Leisure Hei -its 639 1 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 mows 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 Bypass Pipe Drain C Areas Total Flow Contribution (cfs) 12" Pipe Coutribution (Cs) Bypass Pipe Contribution (e s) % Contiihut€on to Bypass Pipe Willows 13.3 3 iO,3 36% Muskrat Slough 25.3 0 2.53 9% Leisure Heights 6.39 0 6.39 23% County Facility 9.16 0 9.16 32% Total 31.38 Based on 12" pipe at 0.3% slo e with 3 feet of Bead Please note, the figures used to calculate the �a 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. I QTY UNIT UNIT PRICE EXTENSION 101 General Requirements 1 LS $10,300.00 $10,300.00 102 Mobilization/Demobilization I LS $8,200.00 $8,200.00 103 Taxes, Bonds, Insurance 1 LS $6,200.00 $6,200.00 104 Construct Pond Outlet Structure I EA $5,000.00 $5,000.00 105 Construct Diversion Structure I LS $15.000.00 $15.000.00 106 18" PVC. Storm Pipe 1500 LF $25.00 $37,500.00 107 108 Construct new 18" overflow pipe Install manholes for overflow pipe 1500 LF EA $35.00 $2,000.00 $52.500.00 $12,000.00 109 Replace existing discharge structure 1 EA $5,000.00 $5,000.00 110 III Excavation to increase pond volume Pond slope stabilization 1000 CY $10.00 $10,000.00 3000 SF $5.00 $15,000.00 112 Construct pond access ramp 1 LS 1 $10,000.00 $10,000.00 113 Construct pond access gate I 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 tar outlet to river 2()0 TON $60.00 S12,000.00 116 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 Pro'ect Costs $392,556.00 The construction cost can be further broken down into items associated with the bypass rows 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. TABLE fro ortional Cost Break Down The Muskrat Leisure County Total Off i N1Vi NO. Construction Description Cost Willows Slough Heights Facility Sfte ]Flows Cost Construct Diversion $15,000,00 0 $5,000.00 $5,000.00 $5,000.00 S15,000.00 105 Structure 106 18" PVC Stonn Pie $37,500.00 $13,609.94 $3,343,02 $8,443.45 $12,103.59 $23,890.06 107 Construct new 18" overflow Pipe $52,500.00 S19,053.91 $4,680.23 $11,820.82 $16,945.03 S337446.09 Install ina„l,vlcs Cur $12,000.00 $4,355.1$ $1,069.77 $2,701,90 $3,873,15 $7,644.82 ]0$ overflow pipe 115 Ri -ra for outlet to river $12,000.00 54,35.5.18 $1,069.77 $2,701.90 $3,873.15 $7,644,82 Totals $1?9,UUU-UU $41,374.21 $375625.79 Percent Cast Contribution 32% 68% Alte & 0 bons° Alternative 10 Find that the offsite flows are representative of new development impacting the drainage system and finalice the facility €zpsizing with impact fees. j ticrrh i 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 storniwater assessments for the remaining portion of the bypass project (18" pipe). Option Elect to participate in the funding of the improvements with impact fees up to the percentage associated with off -site flows (68%; pet- the exarhhplc) fo, ire bypass project (18" pipe). Alternative 2a Find that the offsite flows represent historical quantities for the Willows Subdivision. Option ) Elect to not participate in the funding of the improvements. fl tion Elect to participate in in the funding of the improvements with storm sewer assessments up to the entire bypass project (18" pipe). OptiElect to participate in the funding of the improvements wid'i storm sewer assessments up to the percentage associated with off -site flows (68% per the example) for the hypass prnji-ct (18" pipe.) - Alternative 3® Deny the petition to form the SID Alternative m As detemxined by Council 4 Ending 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 occulting 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 storinwater assessments at $50,000 per year. Ending cash in this lire item for F ' 1.2/13 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 tip 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 Authmizing the Willows Subdivision Special Improvement District and participate in funding the bypass project with impact fees €gyp to the percentage associated with offsite flows (68% per the example) for the bypass project (18" pipe). RESOLD TI N NO. 5590 E IT RESOLVED by the City Council (the "Council") of the City of Kalispell (the "CiLy" ), Moji Lana, as foll€aws: Section 1. Passage of resolution of intention. This Council, on June 18, 2012, adopted Resolution No. JJ 5 (the "Resolution of Intention"), pursuant to which this Council declared its intention to create a special improvement district, designated as Special frmprovement 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 " Irnprovenmt ruts") and paying costs incidental tbe.cto, including costs associated with the sale and the security of special improvement district boards drawn on the District (the "Bonds"'), the creation and administration of the District; and the funding of a deposit to the City's Special Iilmprovc-m ent District Revolving Fiend (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 i provernents and the creation of the District. The public hearing was the first mecting of the Council following die. expiration of the period ended 17 days after the first dale 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 -Pith the City, Clerk by the owners of property in the District subject to assessment, representing 3.45% of the total esdrnated casts of the Improvements and costs incidental thereto to be assessed against the properties in the District, in accordance with the method or methods of asscssmont in the Resolution of Intention. Section 4. Creation of the Di2Lrict; I€asufficicno—y of rotcsts. At the ncxt 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 Prude by owners in the District to Lr- asscsscd fui tlic vast of Liao pzopuscd arzd hicidcutal c casts to lou financed with the Bonds is not more than 50% of all of such casts 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 otherw-ise in accordance with, the Resolution of Intention, but taking into account any additional contributions by the City toward the costs of the SID #345 --- WilIows Subdivision unprove x ents, thereby, if made, redudng the special asscssments against properties in the District. The findings and deterininations made in the Resolution of Tntent on, including, without limitation, these relating to benefits conferred, funding the Revolving Fund and District reserve account and securing the Bonds therchy, and using the proceeds of the Bonds to pay or rcimbursc the Cite for all or a portion of the costs of the Improvc ents and costs incidtnta.I thereto are hereby ratified and confirmed. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF T14-E CITY OF KALISPEL ,, THIS 4 1H DA "( OF SEPTEMBER, 2012. ATTEST: T e—esa Write City Clerk SID #345 -- Willows subdivision 2 T ai-nnni Fisher Mayor