Tab 39. Power Point Presentation Prepared for March 12, 2013 Planning Board MeetingUS 93 South Late Comers
Extension
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US 93 South
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=e< This extension is being constructed to accommodate
future development in the area south of the city
�However, the utilities need to be planned carefully to not
only account for the demands from the Old School Station
Subdivision, but also surrounding properties which may
be developed in the near future. As a result, both the
water and the sewer mains have been oversized to
provide greater capacity than what is required for the Old
School Station Subdivision
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Area
�= Municipal water and sewer have recently been
extended south from Kalispell along Highway 93.
Adequate capacity is available to serve all lands
within the Highway 93 South Corridor Growth Policy
Amendment area.
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tire -#loins aLove the original developrrienrs:trtinimum
kireflow requirement; are charged in a latecomer -fee.
'or example, if the original development required a
rhiimum fire flow of 7500 gallons per minute igpfnl
and a subsequent development requires 2000 t0pm;
then the Subsequent developmcntwould pay a late-:
comer fee fw ttie additional 566 .gpm.. All subsequent:
developments are: required` to pay for fire flovvs above
itie original minimum flow.
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These demands are converiEd to equivalent redden-
tial units so that residential and comrn&dai. der (ands
can be handled on an equnialent bass.
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CITY OF KALISPELL
The City of Kalispell owns and operates a water and sanitary
sewer utility. 'rr•,ese utilities typically provide service within the
City limits. When new development occurs adjacent to the exist/
ing utilities, the developer is often abieto con rect:to the sewer
and water lines Ithoutsignificantoff--site improvements.
f When landis annexed to theC'e7, and the developer intends to
serve the new development with water and sanitary sewer ser-
vice, the existing utifity systems must be extended to the pro-
posed development These extensions are-byp€cal y tlesigned.
p$ w t 1 sufficient capacity to serve the proposed development in
acid€lion to other potential developments in the area. In rare
casesth'e City may extend these utilities and then recover the
cost of Bose extensions through an impact fee. In most cases,
the cost of the proposed extensions is borne by the developer
wm t a portion of the cost recovered through a Developer Ezten--
son Agreement commonly referred to as latecomer agreement.
A latecomer agreement defines the costs of designing, construct
ing and Inspecting the utility extensions. The agreement also
specifies how these costs evil€te paid back to the developer, For
example, a sewer line extension serving a new development
may cost:SZ75,000: for this example, let us assume the new
extension has tie capacity to serve 1000 residential units, and
Me proposed development will consume 20% 1200 units) of the:
.capacity.
Design,
S 20,000
Construction:
S250,000
Inspection,
S 5000
Total Cost
S275,000
Cost per unit - $275.000/ 1000 or $275
The developer is required to bear the total cost of the
extension (S275.000), but only uses 20% of the capacity
or;S55 000 of the tofai cost. How does the developer
recover the remaining S220,0007 The latecomer agree-
ment is the mechanism bywhich the developer can
recover the remaining cost of the extension:.
In this case, there are a00 additional residential units:
that can be served outside ofthe original development:
As other developments utilize this extension, those de-
velopments pay a latecomer fee of$275 per residential
unit. This is the basic premise of a latecomer agreement,
the developer creates the capacity to serve the units
Within the original development as well as units.in'other
future. developments in the same area. The developer
then recovers the original Investment that was used to
create the additional capacity for the other future
developments.
AJI Developer Fixtension Agreements must be approved
by the City Council.
FAQ
The developer is responsibiefor creating the latecomer
agreement; the City assists in this. The.agreement is a
contract between the. developer and the City Of Kai€spell.
i he developer agrees to construct the improvements
and deliver the improvements to the City:. Tne City
agrees to collect latecomer fees from subsequent
development and pass the fees to the original developer.
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An agreement may last until the remaining costs have
been recovered, butlyplcall rno longer than.l0years.
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Yes. The City assesses a 6% administrative fee to defray
the cost of facilitating' and managing the agreement.
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No. A latecomer agreement allows for the recoveryor
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cost for inryeasi:-:g the size: ofaminis•++,um-stzect tine:. fror
example, a development may only need > 5% of the ca-
pacity of an 8-inch water line. >• cwevea this is, the mir. F
mum size 'of Brie req: fired to be installed for any develop- �
ment A latecomeragreementis .not created for the r=--
traihing 25%.
Yes. The Gay is currently managing two latecomer
agreements.
(f) There is an agreement withthe OW Corporat€on for
waMrand. sanitarysewer improvementsinstaoed;n
association with the West �fiew Estates Subdivision..
The general area 01 this latecomer agreerne.n: in-
cludes: eludes Section 36 and adjacent properties.
(2} There is an agreemenc W.rh rviontana' Ventum part-
ners for water and sanitary sewer improvements
Installed in association Wth the Old School Station'
Industrial parat The general area of this latecomer
agreement is the area south of Cemete—y Road.
Additional details of these agreements are available by
contacting the Public "NorksDeparti ient.
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Yes. The Fes are increased each january based on tf-z
ten-year United States Treasury mote rate asieported In
theMallStreet Journal on November 30 (or next buslrrss 1
day); of the previous yea.:, plus 1.59E. I
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None have been, created to date,.butcould be in the 3.
r
future.
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i< There is an agreement with Montana Venture
Partners for water and sanitary sewer
improvements installed in association with the
Old School Station Industrial Park. The general
area of this latecomer agreement is the area
south of Cemetery Road
* Existing city infrastructure in this area includes city
water and sewer lines running the length of Highway
93 from Cemetery Road south to the Old School
Station subdivision. These lines have been oversized
to serve not only the Old School Station subdivision
but the anticipated future development that would
occur on the tracts of land included with the
annexation request.
Meeting Minutes Kalispell City Council
November 17, 2oo8
(City Council approves Gardner Annexation)
Existing city infrastructure in this area includes city
water and sewer lines running the length of Highway
93 from Cemetery Road south to the Old School
Station subdivision. These lines have been oversized
to serve not only the Old School Station subdivision
but the anticipated future development that would
occur on the tracts of land included with the
annexation request.
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and
Gardner
PUD's
Blackout of
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Developed
Areas
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