5. Kelly Road Lift Station ReplacementAgenda - May 4, 1998
AGENDA ITEM 5 - KELLY ROAD LIFT STATION REPLACEMENT
BACKGROUND/CONSIDERATION: Enclosed is a memo with an explanation of the
background, current status, and the requested change to the project. This memo covers the
entire subject very well. There is no need for me to repeat the information.
RECOMMENDATION: I concur with the Public Works Director's recommendation to
approve the agreement as per our existing policies.
ACTION REQUIRED: A motion to authorize the City Manager and City Attorney to
compile and sign a contract with the stipulation outlined in Mr. Hansz's memo.
MEMORANDUM
April 24,1998
N
To: Clarence Krepps, City Manager
From: Jim Hansz, Director of Public W t#5
ks
Subject: Kelly Road sewage lift station replacement
Billmayer Engineering on behalf of the developer of the Willows 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 facilities to meet the demands of growth.
However, if the City's upgrade schedule or budget cannot accommodate the development
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.
Reguested Change:
The developer has asked the City to reconsider the current funding arrangement for this
project and proposes entering into an agreement for partial reimbursement of construction
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 Willows
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
Willows subdivision, at 1998 rates, is $118,755.00 and is based on a fee of $1,365.00 for each
of 87 lots. This fee is comprised of two pieces: the W VVTP 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
LS #5.
Benefits:
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 reliability problems. The
new lift station will be moved from its present location in a resident's front yard. The lift
station will have the capacity needed to accept flows from any new sewerage systems that
may be installed in the future to serve existing areas of Greenacres having septic system
problems. The City will 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
be in conformance with the City's extension of services policy and will provide consistency
in dealing with development.
Recommendation:
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 #4241. Overall, the impact to the fund is positive in that the $153,000.00 facility
provided would, under normal circumstances, be funded entirely by the sewer replacement
fund, but in this case the City will receive an upgraded lift station for a cost of $99,503.00.
Based on review of this policy and discussions with the City Attorney I recommend
acceptance of this proposal by the developer of the Willows Subdivision. I further
recommend entering into a cost reimbursement agreement with the developer within the
parameters specified in this memorandum and subject to the review and concurrence of the
City Attorney.
2. If the property is to be annexed, the City's annexation
ordinance or resolution shall specifically state the method and
time frame for bringing the existing conditions into compliance
with City standards, and shall identify the parties responsible for
the improvements.
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.
POLICIES OF MEETING THE COST OF SERVICES
1. For the purpose of setting
components of the physical plant,
as the estimated life of each of
a. Structures -
30
Years
b. Pipelines -
30
Years
c. Stationary Equipment (motors,
-
20
Years
d. Asphalt Surfaces:
Local Streets
- 20
Years
Collector St.
- 15
Years
Arterial St.
- 10
Years
aside adequate funds to replace
the following shall be considered
the components:
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.
Fi3. 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
mprovements schedule does not mesh with that of the developer, it
21
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 to the existing City system, nor shall the
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 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.
MAINS 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:
22
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 in accord with this Plan, the
City's Standards For Design And Construction, and the City of
Kalispell Subdivision Regulations.
C. Through the formation of a Special Improvement District
(S.I.D.).
d. Federal or State grant funds.
e. State Fuel Tax monies.
8. Connection and user fees for properties located outside the
City limits for sewer and.water services shall be charged as
follows:
a. The fee for connection to the City's water utility shall be
125% of the fee charged to City residents.
b. For the use of City water and sewer, the rate shall be 125% 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 150% of the fee for City residents (if collection and 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 taxpayers.
23
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 47,500 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 April 16, 1998
Kelly Road Lift Station Replacement Page 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
buildout. 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,
BILLMAYER EN ERING
J. Jay illmayer, P.E.
cc: American Land & Development.
2. If the property is to be annexed, the City's annexation
ordinance or resolution shall specifically state the method and
time frame for bringing the existing conditions into compliance
with City standards, and shall identify the parties responsible for
the improvements.
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.
—>- POLICIES OF MEETING THE COST OF SERVICES
1. For the purpose of setting aside adequate funds to replace
components of the physical plant, the following shall be considered
as the estimated life of each of the components:
a. Structures - 30 Years
b. Pipelines - 30 Years
C. Stationary Equipment (motors, pumps, conveyors, etc.)
20 Years
d. Asphalt Surfaces:
Local Streets - 20 Years
Collector St. - 15 Years
Arterial St. - 10 Years
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 develo e� r_, it
21
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 eve opmen ai
reimbursement shall not exceed the cost, including interest, of t e
improvements to the existing City system, nor shall the
reimbursement exceed the value of the connection tees coIIected
from the specific deve opment.
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.
MAINS 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:
22