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3. Evergreen District Sewer LinesCity of Kalispell Charles A. HaYball Office of City Attorney Tel 406.75&.7708 City Attorney 312 First Avenue East Fax 406.758.7771 P.O. Box 1997 charball@kalispell.com Kalispell, MT 59903-1997 MEMORANDUM TO: Mayor Pamela B. Kennedy and Kalispell City Council FROM: Charles Harball, City Attorney Frank Garner, Interim City Manager SUBJECT: Establishing Policy for Ownership of Sewer Lines Connecting to Evergreen Conveyance System but Utilizing City of Kalispell Sewer Capacity MEETING DATE: Monday, August 23, 2004 — Workshop 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 RS1D remains a matter of contention. The Evergreen Board met on Wednesday and determined that it must own those lines. that: The reasons given by the Evergreen staff for needing to own the lines are 1) In the event the City fails to annex the development, Evergreen believes it must be in control the lines. August 18, 2004 Page - 2 2) Evergreen wants its infiltration & inflow controls (I & I) in place to ensure the quality of materials passing through its lines_ 3) Evergreen feels that the method of gauging sewage volume by metering water flows is inadequate for their purposes. 4) Evergreen feels it is more efficient for it to maintain the sewer lines within the new developments than for the City to maintain them. The City can, and will, provide an answer to each of these concerns, which are minor in contrast to the larger issue of providing municipal sewer to these developments so that water quality .may be protected. RECOMMENDATION: Resolution 4928, tabled on August 16, stated 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. FISCAL EFFECTS: The fiscal effects of this policy are complex, far-reaching and likely substantial. Respectfully sub 'od, Char es Ilarbal1, City Attorney Office of City Attorney City of Kalispell Lger