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
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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
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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.
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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
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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.
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