3. Sewer Extension - Whitefish Stage RoadCity of Kalispell Public
Post Office Box 1997. Kalispell_ Montana 59903-1997 - Telepllos e (406)758-7720, Fax (406)158-7831
REPORT TO: Mayor and City Council
FROM: James C. Hansz, P.E,, Director of Public
SUBJECT: Sewer Extension Whitefish Stage Roat
MEETING DATE: Work Session, July 26, 2004
Background: Growth in the NE corner of Kalispell along the Whitefish Stage Road corridor
has continued at a steady pace so that today a majority of the developable land south of Reserve
Drive has been platted in subdivisions. What remains to be developed will essentially use the
available remaining capacity of key sewage collection facilities, i.e. lift station #9 and its force
main. Other sewer mains serving recent developments will continue to have carrying capacity,
beyond their immediate needs, which could support additional sewage flows from new
development, potentially north of Reserve Drive. This memo was requested to explore potential
issues related to the City extending facilities in order to assure that potential future development
is planned with municipal sewer service in mind and the City is able to exert positive influence
toward this objective.
Current Considerations: Substantial development interest has recently been shown in
properties north of Reserve Drive along Whitefish Stage (WFS) Road and, potentially, east along
Rose Crossing. At least two approaches are possible for this development: 1) Large lots served
by on -site (septic) systems (or their equivalent) could be created. 2) Alternatively, a higher
density development is possible if municipal sewer service is made available. Municipal service
could be obtained through extensions of existing City of Kalispell systems installed along
Whitefish Stage Road south of Reserve Drive.
Extension of City Systems: Sewer Mains - The distance from Glacier Commons to Rose
Crossing is about 7,300 feet. A main sewer to serve this area would likely be sized at 12 inch to
15 inch diameter to ensure adequate long-term capacity. Based on current bid costs, and without
having completed any detailed engineering, this extension could cost approximately $427,750,
inclusive of engineering, construction management and contingencies. This figure includes
July 26, 2004 Whitefish Stage sewer.doc
approximately 20 manholes, but does not anticipate any lift stations because, in general, the
slope from Rose Crossing to existing City systems is favorable. However, there would be
additional costs to upgrade some existing collection system facilities shortly after any
development north of Reserve came on-line.
Upgrade Existing Systems — Lift Station #9 is located just off Fairway Boulevard and
serves as the main pump station for all development in this area. Other local lift stations are sited
in Village Greens but are not impacted. Lift Station #9 employs a 6 inch diameter force main to
deliver sewage across the Stillwater River into the City's gravity sewerage system. The lift
station and force will require replacement to handle the added loads imposed by significant
development north of Reserve Drive. Replacement costs for LS #9 and its force main were
included in the City's long range Capital Improvement Plan. Lift station #9 is estimated to cost
approximately $108,000, including engineering and contingencies, and the cost to replace the
force main is estimated at approximately $508,000. One caveat: There may be a need to revise
the currently estimated sizes of these upgrades depending on the scale of growth north of
Reserve.
Overall, the estimated total cost for all the improvements needed to fully serve this area is
$1,043,000, and this is shown on the attached summary.
Potential Method of Payment: These improvements involve two categories of origin: 1)
growth -related facilities, reflected in the new pipeline and any additional capacity in the
upgraded force main and lift station, and 2) replacement related facilities reflected in the costs to
duplicate the capacity currently existing in the force main and lift station. Growth -related costs
could be funded from current collection system SDC funds and then repaid via new connection
charges, i.e. SDCs that are paid at the time of new development. There is presently
approximately $1,150,000 in the sewer collection system SDC account available to support
growth -related improvement costs. Further, each new dwelling will add and additional $865 to
this account (the remainder of the current $2,070 SDC connection fee is devoted to WWTP plant
replacement). Therefore, each 1,000 new units will generate $865,000 of additional revenue to
the sewer collection system SDC fund to defray growth/capacity-related improvement costs.
There is sufficient funding in the collection system SDC account to allow for
construction of the WFS pipeline without impacting any near -term plans. However, the current
schedule of SDC fees would need to be revised to include these facilities because they were not
included in the CIP when SDCs were recently revised. Failure to make this adjustment would
require deferral of some other improvements of similar value until SDC fees and attending
revenues are adjusted upward.
An alternative to fund growth -related improvements would be to authorize a surcharge
upon the normal SDC fee. This would be related to any connections made to new growth -related
facilities along WFS Road that are funded from the City's SDC account. This would be similar
to the late -comer surcharge envisioned for the Developer Extension Agreement concept except
that the City would be the final recipient of the surcharge which it would use to replenish the
SDC account for the initial investment made to provide facilities that serve the new developing
areas.
Costs for replacement -related improvements to upgrade LS ##9 and its force main would
likely be paid via a low interest Board of Investments loan with the loan repaid via the monthly
user charges. The current replacement account does not have sufficient funds to cover these costs
after accounting for current replacement plans. However, this method of repayment was
anticipated when rates were recently adjusted because these projects are included in the CIP
which formed the basis for the current sewer utility rate structure. The precise amount of the cost
split between replacing current capacity and new growth -related capacity cannot be determined
at this time without significantly more engineering to better define the facilities that are needed.
Conclusion: Growth in the Whitefish Stage Road area is continuing and new facilities are
needed to serve the area with municipal sewer. The facilities could potentially be provided
piecemeal by developers, or they could be provided along the corridor by the City to assure that
municipal services are immediately available and ready to serve an area which many believe is a
logical extension of the City. This would prevent an undesirable expansion of development that
depends upon on -site sewage disposal which local history has shown to be detrimental to both
ground water and surface water. When new growth occurs along WFS Road, certain other
existing City sewage collection facilities must be upgraded to ensure uninterrupted service.
Funding new facilities is a challenge but is possible within the financial framework the
City has in place. Many of the needed facilities have been programmed into the current CIP,
while others have not. If the City chooses to install and fund the growth -related improvements
necessary to accommodate community expansion north of Reserve Drive some modification of
current policy will need to be considered. This would be similar to the action taken when City
initiative resulted in the extension of utilities south on US 93 in conjunction with MDT plans to
improve the highway into Kalispell.
Juty 26, 2004 Whitefish Stage sewer.doc
Preliminary Cost Estimate for Gravity Sanitary Sewer from Glacier Commons
Subdivision to Rose Crossing along Whitefish Stage Road.
7,300 linear feet of sewer main @$35.00/ft.... ............. $255,500
20 manholes@$2,000.00/ea....................................... 40,000
Upgrade capacity of Pumping Station No. 9................... 73,700
Upgrade capacity of Force Main from LS No. 9.............. 350,500
Subtotal ................. $719, 700
20% Design & Construction Management ..................... 143,9Q
25% Contingencies ... ............................. ....... .............. .... 179,925
Total. .................... $1, 043, 565