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1. Mountain View Plaza Utility Reimbursement RequestCity of Kalispell Public Works Department Post tics, Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)759-7720, Fax (406)758-7 31 REPORT TO: Mayor and City Council FROM: James C. Hansz, P.E., Director of Public Works I City Engineer SUBJECT: Work Session for Mountain View Plaza Utility Reimbursement Request MEETING DATE: 20 October 2003 BACKGROUND: The developer of Mountain has once again requested reimbursement of utility installation costs related to this development. Nearly one year ago we reviewed utility installation related information provided by the developer and engineer for MVP and reached the conclusion that the cost of increasing the size of a portion of the gravity sewer mama (2,330 LF) from 8 inch diameter to 12 inch diameter is the only cost that should be reimbursed. This matter was discussed in detail nearly a year ago with the City Council, with the developer participating, and the result was a commitment by the Developer to submit additional new data that would support their request for greater reimbursement. After many months of delay the MVP engineer finally provided information. We have thoroughly reviewed this "new" data and concluded that it is a re -submittal of the previous data with no new information to support their claim for reimbursement. Frank Castles' analysis is attached. His conclusion is the same as the one we reached last year, the only eligible area of reimbursement is the City -directed over -sized of part of the gravity sewer. The new data does not include break-out numbers for this work. However, the earlier information for the project included cost estimates for 8 inch sewer and 12 inch sewer. Using the numbers prepared by the developer's engineer and the installed length of the oversized portion, Frank has calculated that our obligation to MVP is no more than $11,650.00. There is no justification for additional engineering expenses. All other utility costs are clearly the responsibility of the developer and were necessary to meet the needs of his project based on requirements set by his project tenants, Home Depot. These requirements are more strict than the City requirements. RECOMMENDATION: I recommend that this amount, $11,650.00 be forwarded to MVP as full and final settlement of all developer's claims for utility reimbursement. FISCAL EFFECTS: Expenditure of system development funds (growth related expenses) from the Seger Fund in the amount of $11,65O.O0 for the cost to oversize 2,330 linear feet of sewer. ALTERNATIVES: As suggested by the City Council. Respectively submitted, UaiesT. Hansz, YE - Director of Public Works October 20, 2003 utility Reimbursement Request From MVP Developer.doc Chris A. Kukulski City Manager �I City of Kalispell Public Works Department Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7 720, Fax (406)758-7831 10 October 2003 To: Jim Hansz, P.E., Director of Public Works/City Engineer From: Frank Castles, P.E., Assistant City Engineer Subject: Mountain View Plaza Water Line and Sanitary Sewer Main I have reexamined the documentation for the referenced water line and can find no technical reason for reimbursement to the developer for the installed 12" diameter water mains. It is clear in the Design Report of March 27, 2001, that the fire flow requirement of 2,250 gallons per minute at a residual pressure of 50 psi was established by Home Depot and not the City of Kalispell. The fire flow and residual pressure required by Home Depot is only provided by one 12" diameter water main from FVCC to the southwest corner of the development. The 2,250 gallon per minute fire flow at 50 psi cannot be met by a 10" diameter water main. The sizing of the water main was based on the more restrictive requirement from Home Depot. The minimum fire flow residual pressure required by the City of Kalispell was superseded by the Home Depot requirement. The looping of the fire line along the West side of U.S. Highway 93 from the northwest corner of Grandview Drive and U.S. 93 to the southwest corner of the development was required under the PUD Agreement. This is a requirement of the PUD Agreement and is not a reimbursable cost to the developer. The fire loop had to be the same diameter as the main line. It appears from the construction plans that the 12" sanitary sewer line laid at a minimum grade of 0.22% from FVCC to Station 34+99 was dictated by the terrain between these points. Excessive pipe insulation fill would have been required for an 8" sanitary sewer line laid at the minimum grade of 0.40%. Further research within the files indicated the City requested the developer to upsize the 8" sanitary sewer line to 12" from Station 34+99 to Station 58+29 (the end of line) as shown on Sheets C3.26 through C.3.28 of the record drawings for the referenced project. Had the sewer line not been upsized upstream of Station 34+99, the installation of the 8" line at a minimum grade of 0.40% would have required about the same excavation volume as the installed 12" line. It has been my observation and experience that the excavating machinery utilized for sanitary sewer installation has used a 36" wide bucket for trench excavation for gravity sanitary sewer lines 12" diameter and less. The excavation cost for installing the 12" line is the same as the excavation cost for installing an 8" line. The upsizing cost to capsize the 8" line to a 12" line should be limited to the actual difference in the material cost for the pipe. There could be a premium placed on the Labor costs of installing the 12" pipe as the 12" pipe is heavier and would take more effort to install. An examination of the file indicated that the designer estimated the cost difference between 8" sanitary sewer pipe and 12" sanitary sewer pipe at $5.00 per foot. Therefore, reimbursement of the cost difference from an 8" sanitary sewer to 12" sanitary sewer between Station 34+99 and Station 58+29 would be recommended. This would be 2,330 feet of sewer line at a $5.00 per foot cost yielding a total cost of $11,650.00. There should be no reimbursement for engineering or construction observation for upsizing the 8" line to 12" as the design effort and construction effort is the same for these gravity sanitary sewer lines. The recommended reimbursement for this project is $11,650.00 (D) Emergency fire, ambulance, police and public vehicle access shall be at all times available through said primary and secondary access without impediment. (E) The proposed northernmost access along Highway 93 near Ole's Country Store shall not be built unless the aforesaid traffic study establishes it is necessary to improve safety and traffic. 3.03 Private Internal Roadways and Sidewalks (A) Crosswell Development LLC acknowledges that the development of the Subject Property includes development, at Crosswell Development LLC's expense, of internal roadways providing access to the lots within the PUD. (B) Crosswell Development LLC agrees that the interior roadways within the PUD shall be constructed to CITY standards with curb, gutter, and sidewalks on at least one side of the roadways, except that sidewalks shall be on both sides of the Hain. Entrance of US Highway 93, in accordance with the proposed Site drawings and applicable City Standards for Design and Construction for local and collector streets. (C) Crosswell Development LLC agrees that they will maintain all internal streets, boulevards, and sidewalks as private with unrestricted public access. (1) Sidewalks shall be provided as shown on the Master Site Plan. 3.04 Sewer and Water (A) Sanitary sewer service to the Subject Area shall be accomplished via extension from the existing main at its current terminus near the Flathead Valley Community College (FVCC). Said sanitary sewer service shall be extended to the furthest boundary of the Subject Property, in accordance with the CITY Extension of Services policy. Water service to the Subject Property shall be provided by means of an extension of an existing CITY -owned 12 inch diameter water main from its present terminus near FINAL Agr.wpd 11 2031165 1 S) S D %-FVCC on the Fast side of U.S. Highway 93. This extended main shall be looped to provide dual direction of supply to the Subject Property in the event that this extended water main is temporarily out of service for repairs or maintenance. Said looping is to be accomplished by l further extension of the aforesaid water main across U.S. Highway 93 to the West side and from there South to a point of connection with the nearest existing CITY owned water main of the same size, or such other point of connection as may be authorized by the CITY. Water mains extended to serve facilities within the Subject Property shall be looped in similar fashion to ensure the ability to supply water service in the event a water main is temporarily out of service for maintenance or repair. (C) If a well is used on the premises it shall not in any way be connected to the CITY water supply system. (D) All sanitary sewer and water utilities shall be designed and installed in dedicated easements as shown on Exhibit I'D" and in accordance with the City of Kalispell's Standards for Design and Construction. (F) All Utility Infrastructure located within the Subject Property shall be dedicated to the public upon completion. (F) Crosswell Development LLC agrees to obtain all necessary easements for the extension of water and sewer to the Subject Property. In addition, Crosswell Development LLC will grant to CITY any and all easements necessary for CITY to perform maintenance of water and sewer lines installed pursuant to this Agreement. /'-'(G) In the event that CITY requires installation of water and/or sewer lines larger than those required to service the current needs of Crosswell Development LLC as determined by hydraulic modeling tests, then CITY shall pay only those costs associated with the increased i_ utility main sizing or extension. (H) In no event shall this require CITY to complete and other improvements on FINAL Agr.wpd 12 Agreement be construed as to installation of Infrastructure the Subj ect Property, or on any 2001LI(;5 I S I SO (A) Wall Signs: The amount of square footage for wall signs allowed on buildings shall be calculated at 1.5 sq. ft. for each frontage foot —of any single side of the particular building as determined by Crosswell Development LLC. (B) Ground Signs: Two ground signs shall be permitted, one foot from the property line fronting U.S. Highway 93. Each sign will have a maximum height of five feet. One of the signs shall not exceed 90 square feet per side and the other shall not exceed 60 square feet per side. (C) Entrance Signs: An entrance sign shall be allowed at a minimum of 40 feet from the property line fronting U.S. Highway 93 at a maximum height of 22 feet. This sign shall not exceed 158 square feet per side. An entrance sign will be allowed at a minimum of 30 feet from the property line fronting West Reserve Drive. This sign will have a maximum height of eighteen feet and will not exceed 117 square feet per side. (D) All other signage will conform to CITY Ordinances, IV. CITY SEWER/WATER CONNECTION FEES 4.01 Connection Fee Schedule (A) Connection fees for connection to the CITY Water and Sewer Utility, based upon Resolution No. 4287 and Resolution No. 4288, will be determined in accordance with City Standards and fee schedules for connection fees, —in effect at the time of the application for a building permit. (B) Crosswell Development LLC, or its successors and assigns which own the property at the time of applying for a Building Permit, shall pay the connection fees associated with the utility connections at the time of obtaining the Building Permit for each structure. This provision is to assure that the fees are paid at the time of applying for a Building Permit and is not to be construed as to prohibit Crosswell Development LLC from requiring reimbursement or advance payment of the cost from any potential tenant or purchaser. FINAL Agr.wpd 16 2C01165 ) S ) S() (C) Crosswell Development LLC may be entitled to reimbursement of a portion of the costs of installation and extension of water and sewer utilities from future users who connect to extended water and sewer facilities. If Crosswell Development LLC anticipates the need for reimbursement of cost, Crosswell Development LLC's engineer shall prepare a preliminary design and report that details the proposed facilities and the estimated proposed reimbursable costs and will submit said design and report to the CITY for review and concurrence. Costs shall be recovered through a developer's extension agreement and will be subject to the following conditions. 1) No reimbursement will be allowed for any costs associated with meeting the utility requirements for development of the Subject Property. These costs shall be determined by Crosswell Development LLC's engineer and shall be submitted for review and concurrence by the Director of Public Works. Said costs shall be the actual costs of construction, inclusive of engineering and inspection costs, and shall be submitted as specified within thirty (30) days of substantial r completion of the work. 2) No reimbursement will be allowed for any costs of extension of water and sewer facilities, or increases in size thereof, for which the CITY has agreed to provide reimbursement as described elsewhere in this agreement. 3) Costs associated with extensions of water and sewer facilities to future users shall be determined by Crosswell Development LLC's engineer and shall be provided to the Director of Public Works for review and concurrence that said costs are appropriate for reimbursement. Said costs shall be the actual costs of construction, inclusive of engineering and inspection costs, and shall be submitted as specified within thirty (30) days of substantial completion of the work. 4) A developer's extension agreement shall be prepared by Crosswell Development LLC's engineer and FINAL Agr.wpd 17 2031ILs5 I S 1 's o submitted to the Director of Public Works for review and concurrence. The agreement shall identify the costs to be reimbursed, the properties benefitted by the extended utilities, and the proportionate cost to be reimbursed by each benefitted property upon connection to the extended utilities. The agreement shall identify the recommended method for apportioning reimbursable costs between the benefitted properties. Said method shall be the same for all properties. The term of this agreement shall not exceed a period of seven (7) years. 5) Upon concurrence, the Director of Public Works shall submit the proposed developer's extension agreement to the Kalispell City Council for approval. 6) Future extensions by the CITY of utility facilities covered by this PUD agreement shall not be subject to the cost reimbursement outlined in this section. V. AMENDMENT OR MODIFICATIONS OF AGREEMENT 5.01 Amendment or Modification Procedures This Development Agreement may be amended or modified only by application of Crosswell Development LLC, in accordance with the procedures set forth herein. Applications for amendment or modification may be made to the City of Kalispell Site Review Committee. (A) Modifications of this agreement and the attachments hereto which are deemed by said Site Review Committee to be minor modifications shall require only the consent of the Site Review Committee and shall not require the consent of the City Council or any other public agency. Said minor modifications shall include, but are not limited to, adjustments in size, location and orientation of specific building pads or other facilities and amenities, provided that said minor modifications do not alter the total developed area or number of pads or amenities as shown on the Master Site Plan. FINAL Agr.wpd 18