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9. Ratify Interlocal Agreement - City of Kalispell and Montana Dept of TransportationCity of Kalispell Public Works Department Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831 REPORT TO: Mayor and City Council FROM: James C. Hansz, P.E., Director of Public Works SUBJECT: City/MDT Storm Water Phase H Inter -Local Agreement MEETING DATE: March 17, 2003 BACKGROUND: Several years ago the United States Environmental Protection Agency (USEPA) issued rules requiring cities with populations greater than 100,000 to obtain permits for the discharge of storm water to waters of the United States. The rules also set requirements for implementing best management practices (BMPs) to reduce pollutants in storm waters, testing for pollutants and reducing them to safe levels. These rules have now been passed down to smaller communities as Phase II requirements of this on -going program. A few Montana communities and counties, along with MDT, have been identified to participate in the Storm Water Phase H program. Kalispell is one of the communities that must obtain a Phase 11 Storm Water permit. The program is administered and permits will be issued by the Montana Department of Environmental Quality (MDEQ). Kalispell has been working several months to prepare the baseline data for this permit based on the general rules issued by USEPA. MDEQ recently (February 12, 2003) clarified its requirements for making an application. The deadline for submitting applications is March 10, 2003. After reviewing the MDEQ requirements with MDT it is apparent that there are significant benefits to be had from making a joint application as co- permitees for the Kalispell area so that both agencies can meet the March 10th deadline. A few of these benefits are the City's ability to meet its obligation to develop a manual of BMPs and a public information program by using the program already developed by MDT. In addition, MDT will pay 40% of the initial permit fee ($3,440 of $8,600), and 40% of subsequent annual permit renewal costs ($1,040/yr of $3,460/yr). The City will pay the remaining 60% of the fee due to the much larger number of City facilities involved. Kalispell also will be the lead agency for this joint permit and will file the permit and all annual reports. MDT will provide their input to the March 17, 2003 City MDT Storm Water Permit Agreement City for inclusion in these reports and will provide the permit funding and program materials, as previously mentioned. MDEQ requires a formal agreement between the agencies participating in a joint permit application. A formal City/MDT Inter -Local Agreement has been prepared to satisfy this requirement. It defines the specific roles and responsibilities of the City and MDT as partners in the permit application, specifies cost participation, provides the City protection if MDT fails to provide required information, and sets a five year term so that each party may review their continued participation in light of experience and their needs at that future time. The signed Inter Local Agreement was forwarded to MDT for final signatures. A copy was sent to MDEQ as part of the permit application package that was submitted March 10, 2003, the deadline for applications. Ratification of the Inter Local Agreement is recommended to complete the Agreement process. RECOMMENDATION: Ratify City and MDT Phase II Storm Water Permit Interlocal Agreement. ACTION REQUESTED: AT CITY COUNCIL MEETING OF MARCH 17, 2003 — MOTION TO RATIFY CITY AND MDT PHASE II STORM WATER PERMIT INTERLOCAL AGREEMENT. FISCAL EFFECTS: Initial City expenditure of $5,150.00 (total = $8,600.00) for permit application and annual permit renewal expenditures of approximately $2,420.00 (total = $3,440.00) MDT to cover the remaining portions of initial permit and renewal costs. ALTERNATIVES: As suggested by the City Council Respectfully sub , Ir J Zublic sz, P.E. Chris A. Kukulski ector of Work I Ci Engineer City Manager Report compiled March 13, 2003 March 17, 2003 City MDT Storm Water Permit Agreement INTERLOCAL AGREEMENT City of Kalispell Montana Department of Transportation MPDES SMALL MS4 STORM WATER CO -PERMIT WHEREAS, Title 7, Chapter 11, Part 1, M.C.A., known as the "Interlocal Cooperation Act", permits governmental units to make the most efficient use of their powers by enabling them to cooperate with other local governmental units on a basis of mutual advantage and thereby to provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population, and other factors influencing the needs and development of local communities; and WHEREAS, said Act provides that an interlocal agreement may be authorized and approved by the governing body of each party to said contract; and WHEREAS, the United States Environmental Protection Agency (US EPA) has adopted regulations addressing the Storm Water Discharges portion of the National Pollutant Discharge Elimination System (NPDES) as defined in the lean Water Act (33 U.S.C. §§ 1231-1387) and is proceeding with Phase II for small MS4s; WHEREAS, the Montana Department of Environmental Quality (MDEQ) is required by the US EPA to implement and enforce the Storm Water Discharge regulations for the State of Montana and reference its program as the Montana Pollution Discharge Elimination System (MPDES); WHEREAS, on February 12, 2003, the MDEQ notified the City of Kalispell (City) that the City and Montana Department of Transportation (MDT) are charged with the responsibility to apply for a storm water discharge permit either together or separately by March 10, 2003, and to develop a plan or plans over the 5-year term of the permit for implementing and enforcing a Storm Water Management Program for the Kalispell City Limits; WHEREAS, the MDEQ new rules (Title 17, Chapter 30, new Subchapter 11, revised Subchapter 13, A.R.M.; effective February 14, 2003) regarding storm water discharge permits authorize multiple agencies to apply for a co -permit outlining the responsibilities of each agency in regard to the permit requirements; WHEREAS, the City and MDT have reviewed the extensive requirements of the MPDES Phase II storm water discharge permit and find that combining efforts and resources is the most economical approach for the City and have agreed to form a partnership to share in the application for the required permit, work together to develop the plan for storm water management in the City, and begin implementation of the City's Storm Water Management Program; and Page 1 of 6 WHEREAS, MDT agreed to enter into a co -permit application with the City to meet the March 10, 2003, deadline for submittal, stated its intention to negotiate with the City to determine the roles and responsibilities of each party, and authorizing the City to coordinate the permit application. NOW THEREFORE, BE IT RESOLVED by the City, through the City Council of the City of Kalispell, and the MD, each a public agency of the State of Montana (Participating Agencies), that: Pursuant to Section 7-11-104, Mont. Code Ann., the Participating Agencies agree it is to their mutual advantage to adopt this Interlocal Agreement. Section 1: Recitals The City of Kalispell is a municipality of the State of Montana organized pursuant to Title 7 Chapter 3, Part 43. The Montana Department of Transportation is an organization of the State of Montana organized pursuant to MCA 2-15-2501. The area covered by this Interlocal Agreement is defined by the incorporated boundaries of the City of Kalispell as shown on the USGS Quadrangle Map attached to this Agreement as Exhibit A. Section 2: Purpose It is the purpose of this Agreement to delineate the responsibilities of the Participating Agencies for development and submission of the MPDES Phase II permit for the City of Kalispell. This Agreement shall also set forth responsibilities of the Participating Agencies with respect to existing storm water minimum measures, existing Best Management Practices (BMPs), and the development, implementation, enforcement and financing of a Kalispell Storm Water Management Program to be planned and formalized over the 5-year term of the MPDES Phase II permit as approved and conditioned by the MDEQ. Section 3: Administration 3.01. No separate legal entity is established by this Agreement. 3.02. The Participating Agencies agree to work cooperatively to submit the MPDES Phase II permit application to the MDEQ by the March 10, 2003 deadline. 3.03. The Participating Agencies agree to share the responsibilities for fulfilling the MPDES Phase II permit requirements in accordance with the approval and conditions of the MDEQ including annual data collection, analyses and reporting requirements. Page 2 of 6 Section 4: Permit Coordination, Writing and Submittal 4.01 City of Kalispell. The City agrees to provide existing staff and funds to coordinate writing the co -permit application for the Participating Agencies in accordance with MDEQ requirements and submit the permit by the mandated March 10, 2003 deadline. The City agrees to provide existing staff and funds to assist with the identification and development of all aspects of the co -permit application related to the City's jurisdiction, including current minimum measures, existing BMPs, steps to develop a plan for storm water management suitable within the Kalispell City limits, and preparation to implement the resulting storm water management program. Each Participating Agency will collect its own data for annual measurements and results. The City will compile each Participating Agency's data, annual measurements, and results for submittal to the MDEQ in the required annual report according to the new rules and requirements governing MPDES storm water permits. A central location for all co -permit records will be maintained by the City on behalf of the Participating Agencies. 4.02 Montana Department of Transportation. The MDT agrees to provide existing staff and funds to assist with the development of portions of the co -permit application related to its jurisdictional area in the Kalispell City limits including identification of any outfalls discharging into any water bodies within the Kalispell City limits, current minimum measures practiced by MDT, and the existing BMPs that meet the MPDES Phase II requirements for storm water pollution protection. The MDT agrees to implement its responsibilities set forth in the co -permit application, collect data and measurements, and submit the same to the City for compilation in the required annual report. 4.03 Authorization of Signatories. The Participating Agencies hereby authorize the following person to act as agency signatories and representatives for the purpose of executing the MPDES permit application documents, and for proceeding with the requirements necessary to comply with permit restrictions identified by the MPDES: Agency Signatory Title City of Kalispell: Pamela B. Kennedy, Montana Department of Transportation: Joel Marshik, Mayor Administrator, Highways and Engineering Division Page 3 of 6 Section 5: Ownership, Operation, and Control of Storm Water Infrastructure 5.01. Existing Infrastructure. Each Participating Agency will retain the ownership, operation responsibility, maintenance and liability for its existing infrastructure in accordance with the approved permit as conditioned by the MDEQ and existing contractual agreements for the maintenance of the infrastructure. Future Infrastructure. Each Participating Agency will retain responsibility for the design, construction, ownership, operation, maintenance and liability for any future storm water management infrastructure built by the responsible agency. Each Participating Agency will develop any new infrastructure in accordance with the MDEQ approved permit requirements and conditions. Section 6: Effective Date, Duration, Termination and Changes 6.01. This Agreement shall become effective upon approval by the Council of the City of Kalispell and the MDT. This Agreement shall remain in full force and effect from the date of signature and through the 5-year term of the MPDES Phase II permit, as approved by MDEQ, unless terminated according to the provisions of this Section. 6.02. This Agreement may be terminated by the Participating Agencies by mutual written consent of the Participating Agencies. 6.03. Either the City or the MDT may terminate this Agreement in the event of a breach of the Agreement by the other. Prior to such termination, however, the party seeking the termination shall give to the other party written notice of the breach and of the parry's intent to terminate. If the party has not cured the breach within thirty (30) days of the notice, then the party giving the notice may terminate the Agreement at any time thereafter by giving a written notice of termination. 6.04. This Agreement may be changed with additions and/or deletions in regard to responsibilities related to the approved MPDES Phase II permit as approved and conditioned by the MDEQ upon mutual written consent of the Participating Agencies. Section 7: Payment 7.01. It is agreed that the City will pay 60% of the permit application fee and 60% of the annual fee as outlined in the MDEQ Application Form. It is agreed that MDT will pay 40% of the permit application fee and 40% of the annual fee as outlined in the MDEQ Application Form. 7.02. The MDT will provide $3,440.00 to the City at the time of the execution of this Agreement. 7.03. The MDT will provide $1,040.00 to the City annually for the entire term of this Agreement, unless the fee requirements are changed by MDEQ. Page 4 of 6 7.04. It is agreed that MDT will pay all penalties and fines assessed by the MDEQ for late filing of any reports caused by MDT's failure to provide the City with the report data in a timely fashion. It is agreed that the City will provide to MDT 30 days notice regarding the submittal requirements of MDEQ. 7.05. It is agreed that other costs not covered by provisions in preceding sections that are subsequently identified and mutually agreed to be necessary for compliance with the MPDES Phase II permit, permit reports and for Storm Water Management Program implementation will be shared by MDT and the City on the basis of the following formulations. MDT Cost Share = [MDT Street Miles- Total City Street Miles] X Additional Costs City Cost Share = [City Street Miles—, Total City Street Miles] x Additional Costs MDT Street Miles are defined as On -system miles, including non -interstate, primary and urban routes irrespective of maintenance or ownership responsibility, as calculated by the MDT and verified by the City. City Street Miles are defined as total system street miles within the City of Kalispell less MDT Street Miles, as defined above. Total City Street Miles are defined as total system street miles within the City of Kalispell City limits as calculated by the MDT and verified by the City. Alleys are not included. Page 5 of 6 IN WITNESS WHEREOF, the Participating Agencies have caused this instrument to be duly executed by their proper officers as follows: CITY OF KALISPELL APPROVED BY THE COUNCIL OF THE CITY OF KALISPELL on the day of 2003, authorizing the Mayor to execute the Interlocal Agreement ATTEST: Theresa White City Clerk (SEAL) BY: Pamela B. Kennedy Mayor Charlie Harball, City Attorney MONTANA DEPARTMENT OF TRANSPORTATION APPROVED BY THE MONTANA DEPARTMENT OF TRANSPORTATION on the day of , 2003. LE Joel Marshik, Administrator Highways and Engineering Division Approved as to form and content: Robert M. Gentry, Legal Services Division Page 6 of 6