10-26-88 Council as WholeCITY COUNCIL WORKSHOP
5:00 PM OCPOBER 26, 1988
• The meeting was attended by Mayor Kennedy, Councilmembers Haffenman, Furlong,
Atkinson and Hopkins, City Clerk/Treasurer Halver, Construction Inspector Van
Dyke, Sewage Treatment Plant Foreman Olson, Building Official Kerzman and Public
Works Director Hammer.
Representing Evergreen were Lou Gates, Gene Thompson and Jack Fallon, and Dave
Stably of Stably Engineering. Craig Hess of the Flathead Basin Commission also
attended.
Mayor Kennedy introduced Dave Stably who presented a discussion of Kalispell and
Evergreen costs under several plans and options. (see attached report.)
Stably reported Evergreen preferred concepts 3 and 4. He explained the report
predicts 4800 users in Kalispell by 1990 and eventual users for Evergreen of 1908.
They expect about 395 customers initially in Evergreen.
The Kalispell $500.00 per customer hook-up fee is not grant eligible. They are
considering including it in the Debt Service if the fee is not waived.
Hooking up to Kalispell would cost the Evergreen users about $11.00 more a month
than building their own plant. Stably and the Council discussed the presumptions
used in developing this cost comparison.
Evergreen is suggesting they participate in Kalispell's existing system debt, and
share in the cost of the new plant, in exchange for Kalispell dropping the $500.00
• hook-up fee. If they built their own plant there would not be hook-up fees. They
also state adding the Evergreen customers to the rate base would reduce the debt
service assessments Kalispell users would pay.
Jack Fallon said Concepts 1 and 2 are cheap for Kalispell but very expensive for
Evergreen. They would like to discuss Concepts 3 and 4 for now and see if one of
these can be agreed to.
Dave Stably asked for comments on who should maintain the Evergreen Portion. Ken
Hammer said the Public Works staff feels Kalispell should maintain it. Lou Cates
didn't think Evergreen would oppose that as long as there is an agreement
acceptable to both parties.
Ken Hammer said it still has to be determined what effect the small diameter
system being proposed for Evergreen will have on the Kalispell Treatment Plant.
The group discussed this aspect for a while.
Lou Gates pointed out the EPA will pay 75% of this "innovative" technique versus
55% for a conventional system. In addition EPA will fund the connections up
through the septic tanks. In a conventional system EPA would only fund the
collection lines.
Acting Chairman Furlong said the City Council needs to talk to the City's expert
staff and get their information and then get back to the Evergreen people.
Furlong said he would move this along as fast as he could.
• The meeting ended at 6:35 Fan.
- 1 -
FLATHEAD COUNTY WATER DISTRICT #1 - EVERGREEN
130 NICHOLSON DR.
KALISPELL, MT 59901
(406) 25?r5861
THE PURPOSE OF THIS MEETING IS TO IDENTIFY THROUGH NEGOTIATIONS A
SEWAGE DISPOSAL METHOD OR CONCEPT THAT WOULD BE OF BENEFIT TO
BOTH THE CITY OF KALISPELL AND THE EVERGREEN COMMUNITY. THE
BENEFITS WOULD BE IN THE FORM OF REDUCED USER FEES FOR BOTH
COMMUNITIES.
i
0
0
KALISPELL ORDINANCES
$500 hookup fee per EQR
This covers paying back the value of the system being
used (Plant Investment Fee)
$1.57/1000 gallon plus 25% surcharge = 1.96/1000 gallons
This is user fee, consisting of:
1. Debt Retirement
2. Reserves
3. Plant Operation & Maintenance
4. Collection System 0 & M
r-I
u
0
0
KALISPELL TREATMENT PLANT IMPROVEMENTS
Deht Retirement
Plant 0 8 M
Collection 0 K M
• 4800 users in 1990
1.5 m9pd
$ 40t000 t 12 t 4800 = 6.96/month
$350,000 ; 12 ; 4800 = 6.08/month
$220,000 , 12 = 4800 = 3.82/month
TOTAL
$16.86/month
• EVERGREEN
WITH NEW TREATMENT PLANT
EPA
LOCAL
0 R M
COLLECTION 7,290,040
4,732,520
2,557,520
93,500
TREATMENT 3,426,810
2,311,860
1,114,950
61,600
DISPOSAL 486,300
364,725
121,575
9,800
11,203,150
3,794,045
164,900
7,409,105
DEBT RETIREMENT 3,794,045 (.10663) - 12 1908 = $17.67/month
0 & M 164,900 12 - 1908 = E 7.20/month
TOTAL $24,87/month
1908 users in 1990
448,000 gpd
EVERGREEN
UTILIZING KALISPELL WASTEWATER PLANT
(as presented in study)
TOTAL
EPA LOCAL
0 8 M
COLLECTION
7,290,040
4,732,520 2,557,520
93,500
TREATMENT
581,406
319,773 261,633
5,500
KALISPELL
954,OOn
--0-- 954,000
317,480'
Hookup
`Kalispell treatment with 25% surcharge or $1.96/1000 gallons
Deht Retirement 3,773,153 (.10663) - 12 - 1908 = $17.57/month
0 8 M 416,480 - 12 - 1908 = $18.19/month
TOTAL $35.76/month
$1.96/1000 gal. to Kalispell (25% surcharge)
$500.00 hookup fee
1908 users in 1990
448,000 gpd
CONCEPT 1: KALISPELL MAINTAIN ALL OF
EVERGREEN SYSTEM FOR THE 25% SURCHARGE
Kalispell Plant 0 x M Budget $418,000
Kalispell Collertioni'Budget 220,000
Evergreen 0 a M Costs 99,000
TOTAL 0 8 M $737,000
Less Evergreen Payments $317,480
$419.520
Kalispell
User
0
8
M
419,520
12 -
4800 =
Evergreen
User
0
R
M
317,480
- 12 -
1908 =
$ 7.28
$13.87
Kalispell Debt Retirement
401,000 - (10663) = 299,274.98 - 12 - 4800 = $ 5.20
Evergreen Debt Retirement = $17.57
Total Kalispell User Cost = $12.48
Total Evergreen User Cost = $31.44
CONCEPT 2: KALISPELL CHARGE ONLY FOR PLANT 0 & M
EVERGREEN MAINTAIN OWN SYSTEM
KALISPELL GIVE CREDIT FOR $51,406 IN
IN IMPROVEMENTS TO THEIR SYSTEM OFF
THE HOOKUP FEE
Kalispell User Debt Retirement
401,000 - (954,000-51,406)(.10663) = 304,756.40
304,756.40 - 12 - 4900
Kalispell User 0 8 M
• Plant 0 & M = 419,000
Collection = 220,000
638,000
= 5.29
Less Evergreen payments
1.96 x 445 x 364 (418,000
6 8,000) 208,005 y�
429,995 - 12 - 1-2 = 7.47
TOTAL KALISPELL CHARGE $12.76
Evergreen Debt Retirement
(3,773,153 - 51,406)(.10663) = 396,949.88 - 12 - 1908 = $17.33/month
Evergreen 0 8 M Kalispell Payments 208,005
System 0 8 M 99,000
307,005 - 12 - 1908 = $13.41/month
TOTAL EVERGREEN CHARGE 3 .74 moat
CONCEPT 3: SINCE KALISPELL IS GOING WITH A BASIC NEW
PLANT, EVERGREEN SHARE
- NEW & EXISTING DEBT RETIREMENT AT KALISPELL
- EVERGREEN HAS THEIR SYSTEM DEBT RETIREMENT
- KALISPELL MAINTAIN ENTIRE SYSTEM, WITH
0 & M SHARED BY ALL USERS, (Kalispell and
Evergreen)
Debt Retirement:
Kalispell Existing Debt and New Debt Retirement
401,000/yr - 12 - (4800 + 1908) users = $ 4.98
Evergreen Debt Retirement
2,819,153(.10663) - 12 - 1908 = $13.13
Kalispell
User
Debt
Retirement
= $ 4.98
Evergreen
User
Debt
Retirement
= $19.11
Operation & Maintenance
Plant -
Kalispell Collection
Evergreen Collection
Total Kalispell User
Total Evergreen User
419,000
220,000
99,000
$737,006 - 12 - (4RO0 + 19n8) = $9.16
= $14.14 vs,_._$16:96
= $27.27 vs: $24.97- vs- $35:76
CONCEPT 4: - EVERGREEN PAY $500/EQR FOR EXIST. PLANT
- EVERGREEN PAY KALISPELL USER FEE W/O
SURCHARGE
- KALISPELL MAINTAIN ENTIRE SYSTEM
KALISPELL USER
Debt Retirement:
401,000 - (954,000 X .10663) _
299,275 - 12 - 4800 =
299,275
5.20
Operation & Maintenance
Plant 418,000
Collection 220,000
Evergreen 99,000
737,000 - 12 - 6708 = 9.16
Kalispell Total $14,36/month
EVERGREEN USER
Debt Retirement $17.57
User Fee (0 8 M) $ 9.16
• Evergreen Total $26.73/month