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16. Ordinance 1316 - Hwy 93 South Cost Recovery - 2nd ReadingORDINANCE NO. 16 AN ORDINANCE ESTABLISHING A PROGRAM TO RECOVER UTILITY COSTS ASSOCIATED WITH THE INSTALLATION OF MUNICIPAL UTILITIES IN CONNECTION WITH THE RECONSTRUCTION OF U.S. HIGHWAY # 93 SOUTH. WHEREAS, the State of Montana, Department of Transportation, anticipates reconstructing U.S. Highway # 93 from Seventh Street within the City limits to an area commonly known as Four Corners in the year 2000 or 2001, and WHEREAS, MDOT and the City of Kalispell have agreed in principal to a cost sharing program for the installation of water, sanitary sewer and a sanitary sewer lift station upgrade from the current City limits to the Four Corners area, and WHEREAS, the area potentially benefitted by the extension of said utilities lies outside the boundaries of the City and potentially benefitted property has not paid any of the capitalization cost of the existing water delivery or sewer collection and treatment facilities, and WHEREAS, the costs for the installation of these new utilities is estimated to be $1,874,500.00, and WHEREAS, existing City policy contains no method by which the City can recover the cost of utilities extended to an area not within the boundaries of the City, and WHEREAS, City policy does anticipate that, prior to the delivery of utility services to areas outside the City, benefitted property would petition for annexation to the City, and WHEREAS, the City Council has determined that the best interests of City utility customers would be served by establishing an Ordinance setting forth a method and formula for the recovery of costs associated with the extension of water, sanitary sewer and sanitary sewer lift station facilities from property anticipated to be benefitted via their installation. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: H;\attsec\wp\ord\L'S93costrecovery SECTION I. That the costs of water, sanitary sewer, and sanitary sewer lift station installation associated with the U.S. Highway #93 reconstruction shall be recovered from each parcel of property benefitted from said utility extension, at the time of its connection, based upon the following formula: 1. 45% of the total cost shall be recovered from the property owners connecting to said utilities based upon that part of the whole cost which their property's area bears to the area of the service area of 7,977,219 square feet; and 2. 45% of the total cost shall be recovered from the property owners connecting to said utilities by use of a surcharge on the established connection fee, at the time of connection, such surcharge shall be an additional 35% of the connection fee for water service, and an additional 37% of the connection fee for sewer service, of the respective connection fees then in effect; and 3. 10% of the total cost shall be recovered from the property owners connecting to said utilities based upon that part of the whole cost which the frontage of their property on US 93 bears to the lineal feet within the service area of 10,722 lineal feet. SECTION II. Determination as to the total cost of the cost installation of the water, sanitary sewer utility and sanitary sewer lift station shall be based upon the successful bidder's final installed price, together with reasonable engineering costs, of said improvements as calculated by the Department of Public Works. SECTION III. Funds received as part of the cost recovery program herein authorized shall be deposited in the respective funds from which they were H;\attsec\wp\ord\US93costrecovery dedicated to pay for the utility improvements in proportion to the total of those dedicated from each fund. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, MONTANA, THIS DAY OF JUNE, 1999. Wm. E. Boharski Mayor Attest: Theresa White City Clerk H;\attsec\Wp\ord\US93costrecovery WATER/SEWER UTILITY SERVICE AREA ik PROPOSED NEW &A iM, sc GRAVITY EXTENSION OF MONK LINE Yaw J." TO WWTP ----------- NEW FORCE MAIN al cmnrrtm wo umm LOT! 6 ---------- --------- --------- ---------- NEW a* c3RAvtTY SEWER I ----------------------------- COLLECTION MAINS BOTH SIDES OF HIGHWAY LOT I K t mc LOT a 4a L3 mm we Ots APPROXIMATE SUBDIVISION SERVICE AREA NEW SEWAGE BOUNDARY LIFT STATION ---------- in r - - - ------- ­7 ---------- -- — --------------- NO TH -- t, ld6