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2. Resolution 4928 - Evergreen District Sewer Lines (Tabled 8/16)City of Kalispell Charles A. xarball Office of City Attorney City Attorney 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 Frank Garner, Interim City Manager Tel 406.758.7708 Fax 406.758.7771 charball@kalispell.com SUBJECT: Establishing Policy for Ownership of Sewer Lines Connecting to Evergreen Conveyance System but Utilizing City of Kalispell Sewer Capacity MEETING DATE: Monday, September 20, 2004 — Regular Meeting BACKGROUND: Council has been in ongoing discussions regarding the issue of development around the perimeter of the Evergreen Sewer District. Council issued Resolutions of Intent to enter into interlocal agreements with Flathead County and developers agreements and/or annexation district agreements with the developers of Cottonwood Estates and Kelsey Subdivision. Based primarily on concerns expressed and shared by all of the entities regarding the preservation of water quality in the region, Council further indicated that. the City is willing, upon certain conditions, to allow for these developments to convey sewage through the Evergreen Sewer District and use the capacity of the City of Kalispell rather than the Evergreen Sewer District's allocation. The City staff recently met with the Evergreen Sewer District staff to discuss those issues that would be involved in an agreement between the City and Evergreen for this sewer service. It would appear as though engineering, maintenance and billing issues are all easily resolvable and can be presented to Council in an agreement for its consideration. However, it is apparent that the issue of whether the City or Evergreen will own the sewer lines outside of Evergreen's RSID remains a matter of contention. The Evergreen Board passed its own resolution and determined that it must own those lines. The most recent attempt by the Kalispell City Council to meet with the Evergreen Board to discuss these issues was thwarted. However, the Evergreen Board determined on September 15th that it would be willing to meet with the Kalispell City Council to attempt to work through these issue. September 15, 2004 Page - 2 RECOMMENDATION: Resolution 4928, that is being brought off of the table, states that the policy of the City in this regard is that it will approve the extension of sewer lines out of the Evergreen Sewer RSID for sewage that passes through Evergreen's sewer system for treatment by the City and that such sewage treatment will not be accounted against Evergreen's contractual allocation ONLY if those sewer line extensions are owned by the City. The Council may determine to act of this resolution at this time, or table it to another date certain pending the outcome of its discussions with the Evergreen Sewer Board. FISCAL EFFECTS: The fiscal effects of this policy are complex, far-reaching and likely substantial. Respectfully Charles AaAW City Attorney Frank Garner, Interim City Manager Office of City Attorney City of Kalispell RESOLUTION NO.4928 A RESOLUTION EXPRESSING THE POLICY OF THE CITY OF KALISPELL TO ALLOW THE EXTENSION OF SEWER LINES TO THE EVERGREEN SEWER SYSTEM FOR CONVEYANCE THROUGH EVERGREEN AND TREATMENT BY THE CITY OF KALISPELL. WHEREAS, it is in the best interests of Flathead County and the City of Kalispell and their citizens, that water quality of the shared aquifer be protected by the connection to and utilization of a municipal sewer by development of property around the perimeter of the Evergreen Sewer RSID; and WHEREAS, these potential developments are located within such proximity to the Evergreen Sewer District that they may be served by the Evergreen Sewer District which is a customer of the City of Kalispell municipal sewer system and contractually provided with an allotment of sewer capacity and which conveys its sewerage to the City of Kalispell municipal sewer system; and; WHEREAS, it is in the best interests of the City of Kalispell to agree to allow these potential developments to convey their sewage through the Evergreen Sewer District conveyance system without requiring the Evergreen Sewer District to assign such sewerage to its own contractual capacity only if the City of Kalispell maintains ownership of the newly developed sewer lines. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION I. The City of Kalispell will enter into an agreement with the Evergreen Sewer District to allow new developments on the perimeter of the Evergreen RSID to convey their sewage through the Evergreen Sewer District conveyance system without requiring the Evergreen Sewer District to assign such sewerage to its own contractual capacity only if the City of Kalispell maintains ownership of the newly developed sewer lines. SECTION II. The City of Kalispell will endeavor to enter into an agreement with the Evergreen Sewer District that responds appropriately to all concerns of the Evergreen Sewer District regarding quality control and maintenance. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 20TH DAY OF SEPTEMBER 2004. Pamela B. Kennedy Mayor ATTEST: Theresa White City Clerk