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6. Resolution 5072 - Evergreen Water & Sewer Connection - Kelsey SubdivisionCity of Kalispell Charles A. Harball Office of City Attorney City ,Atty 312 First Avenue East P.O. Box 1997 Kalispell, MT 59903-1997 ......................................... . MEMORANDUM To: Mayor Pamela B. Kennedy and Kalispell City Council FROM* Charles Harball, City Attorney James H. Patrick, City Manager Tel 406.758.7708 Fax 406.758.7771 charball@kalispell.com SUBJECT: Resolution. 5072 Resolution Regarding provisions of City Sever Utilities to Kelsey Subdivision MEETING DATE: Monday, October 17, 2005 Regular Meeting BACKGROUND: The City Counsel discussed the issue of proviffing municipal sever services to Kelsey Subdivision at its workshop on October 10, 2005. Although this issue has been before the Council before, it has been determined that the subdivision has apparently now been approved by the State for a Type H onsite septic system. The potential for this to occur and the risk it may present to the groundwater in the area caused some members of Council to request that the matter be revisited. ,As Council is aware, pursuant to the City's agreement with the County, Kelsey Subdivision, which contains land parcels outside of the Evergreen Sever RSp , requires the consent of the City to utilize the Evergreen Sever conveyance system. Council previously expressed concerns that subdivisions building to urban density and utilizing the City's sever treatment facilities 1 be amenable to annexation, or at least future annexation. (through waivers of protest); 2 construct a sever conveyance system to City of Kalispell standards; and 3 develop the subdivision. to City of Kalispell Urban Construction and Design Standards, p to this time, the City and the Evergreen Sewer District have been able to agree upon the three conditions stated above, but have been unable to agree upon which entity should own the sever lines in the event that the City annexes the subdivision. It has now been proposed that Evergreen should continue to own and maintain the lines, regardless of annexation, until such time that the City serves the Kelsey Subdivision with a separate sever conveyance systems, thereby severing from. the Evergreen Beyer conveyance system. This proposal has been incorporated into the resolution now before Council. Memorandum to Council Municipal Sever Services/Kelsey Subdivision Page - 2 RECOMMENDATION: That Council consider Resolution 5072 and to approve o i,sap p rove the resolution after discussion. FISCAL EFFECTS: The fiscal effects of providing municipal sewer services to the Kelsey Subdivision are somewhat minor when compared to the larger policy issue o generally consenting to allow the Evergreen Sewer conveyance system to serve other pote .t al developments outside of the RSID. As discussed at the workshop, Kelsey SubdiviLsion may be distinguished y the fact that some of its parcels are within the RSID and would otherwise be eligible for Evergreen service. We can expect, however, that the City"s consent to Kelsey may well bring requests of other subdivisions bordering the Evergreen Sewer RSID boundaries. If the City takes the next step and consents to servicing any of those properties, it could be successfully argued that it has held itself out as the sewer utility for that area and may thereby e legally restricted from denying sever access to the next applicant. Unless the City is prepared to annex this area, t may unwittingly grow a substantial urban area on the outskirts of the City. The fiscal effects of that would be a further drain on City resources e . g. transportation, arks) by non -city taxpayers as well as the creation of further commercial and industrial potential outside of the City. Respectfully submitted, Cx ba 1, City Attorney James H. Patrick, City Manager Office of City Attomey City of Kalispell RESOLUTION NO, 5072 RESOLUTION REGARDING THE DEVELOPMENT of KELSEY SUBDIVISION AND PROVISION of MUNICIPAL SEWER SERVICES THERETO. o. WHERE,AS, the owner of that certain .real property located outside municipal boundaries and in Flathead County, Montana and more particularly described as Assessor's Tract located in Section 281, Township 29 North, Range 21 West, and hereafter referred to as "Kelsey S-u divisio ", seeks to develop said property to an - rba density and has therefore applied for and received approvals to construct a Type-2 Septic system; and WHEREAS, the Kalispell City Council is concerned that such septic systems may have the potential to critically compromise the ground water quality of Flathead Valley and therefore believes that it is in the best interests of the citizens of Kalispell that developments of urban density that could negatively impact local groundwater quality be served by municipal sever treatment; and WHEREAS, some, but not all, parcels of the Kelsey Subdivision are located within the Evergreen Sever RSI D which is a customer of the City of Kalispell municipal al sewer system and which conveys its sewerage to the City of Kalispell municipal sewer system; and WHEREAS, pursuant to its agreement with Flathead County, the City of Kalispell may agree to allow those parcels of the Kelsey Subdivision outside the Evergreen. Sever RSID to convey its sewerage through the Evergreen. Serer conveyance system without requiring the Evergreen Sewer RSID to assign such sewerage to its own contractual capacity; and WHEREAS, since a portion of Kelsey Subdivision is within the Evergreen. Sewer District RSID and is therefore contractually eligible for eon.neetion to muniei al sewer services through the Evergreen Sever conveyance system, the City of Kalispell should, subject to certain qualifications, allow that portion of the Kelsey Subdivision outside of the Evergreen Sever RSID to also connect to the same municipal sewer services; and WHEREAS, in the event that the owner of Kelsey Subdivision applies to connect the subdivision to the Evergreen Sewer conveyance system, it is in the best interests of the City of Kalispell to allow all parcels of Kelsey Subdivision to utilize the sewer treatment facilities of the City via the Evergreen. Sever conveyance system, on the conditions that 1such sever infrastructure he constructed in compliance with City and Evergreen standards; and 2 the owner and developer of Kelsey Subdivision execute waivers of right to protest annexation for all parcels; and 3 the owner and developer of Kelsey Subdivision enter into a developer's agreement with the City of Kalispell in which the parties agree that the subdivision shall be developed to City of Kalispell Urban Construction and Design. Standards and that the City of Kalispell and Flathead County enter into are agreement stipulating that in the event that the City of Kalispell ever serves the Kelsey Subdivision with a separate sever conveyance system, thereby severing from the Evergreen Serer conveyance system, the ownership of the sewer lines within the subdivision shall be conveyed to the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of THE CITY of KA ISPE L ASFOLLOWS: SECTION 1. That in the event the owner of Kelsey Subdivision makes such application, the City of Kalispell directs the City Manager to provide the necessary written consent to Kelsey Subdivision and to Flathead County and EvergreenSewer RSD approving the construction o sever lines servi ng the Kelsey Subdivision to connect to the mains or services of the collection system operated by the Evergreen. Sever RSID. SECTION 11. That the above -described written consent t clearly indicate that the conditions of the consent are that I. such surer infrastructure be constructed cted in compliance with City and Evergreen standards; and 2 the owner and developer of Kelsey Subdivision execute waivers of right to .protest annexation for all parcels; and 3 the owner and developer o Kelsey Subdivision eater into a developer's agreement with the City o Kalispell in which the parties agree that the subdivision shall be developed to City of Kalispell Urban Construction and Design Standards; and that the City of Kalispell and Flathead County eater into an agreement stipulating that in the evert that the City of Kalispell ever serves the Kelsey Subdivision with a separate sewer conveyance system, thereby severing from the Evergreen Serer conveyance system,, the ownership of the suer lines within the subdivision shall be conveyed to the City. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR of THE CITY of KALISPELL., 'PHIS 17TH DAY of oC oB R Zoo . ATTEST Theresa White City Clerk Pamela B. Kennedy Mayor