01-30-89 S&W Comm MinutesJanuary 30, 1989 SEWER AND WATER COMMITTEE MINUTES 8:00 A.M.
Attendance: Chairman Nystul, Vice Chairman Hopkins, and Councilman Furlong.
Others Present: Mayor Kennedy, DPW Hammer, City Accountant Robertson, Susan Moyer of
Community Development, Chief Operator Olsen, Acting Water Superintendent Van Dyke,
• and Rick Hull of the Daily Interlake.
C. Nystul opened the meeting and advised that at 9:00 A.M. the Committee will adjourn.
A meeting is tentatively set for 4:00 P.M., Thursday February 2, 1989 to discuss FVCC.
EVERGREEN SEWER The Committee reviewed the most recent proposal to the City of Kalispell
from the Evergreen Water District dated January 23, 1989.
C. Hopkins questioned the intended purpose of the hookup fee and the differences between
the hookup fee and the surcharge. City Accountant Robertson responded hookup fees are
restricted to use for expansion in the system. The 25% surcharge is revenue in the
sewer operating budget.
DPW Hammer advised the 25% surcharge applies to the $500.00 hookup fee as well. The
hookup fee would be $625.00.
C. Hopkins questioned the reason residents outside the City are charged 25%. City
Accountant Robertson responded the receivers of services outside city limits are
benefitting from the City's maintenance of the system. C. Nystul responded the
25% surcharge does not have evident support for justification. It is an incentive
for annexation.
Mayor Kennedy questioned if the City is restricted to 125% in regard to Kalispell
treating sewage for Evergreen. C. Nystul responded no, the tariff can be modified
for treatment for one major supplier.
• C. Furlong questioned if Evergreen is going to build, operate, and maintain their own
system, would the need be eliminated for Kalispell to collect hookup fees for
expansion and past payment of Kalispell's system. In addition, if a portion of the
$625.00 should go to Evergreen to maintain and expand their system. C. Nystul responded
yes, to the extent of the capital cost for the mains and collection system they would
be using. The proposal is to include hookup fees as part of the rate rather than a
lump sum. A portion would pay for maintaining the existing system they will utilize
within City limits.
Acting Water Supt. Van Dyke advised Evergreen will impact Kalispell's system from
where they enter. There is a new trunk line from the mall to the WWTP. He suggested
Evergreen assist in paying off the bonds for this development. The trunk line is
new and does not require a lot of maintenance. In addition, pipes require upsizing
from the point of entry to the trunk line.
Mayor Kennedy questioned the difference between the Evergreen proposal and North
Village Sewer District. DPW Hammer responded one difference is geographic location.
To think Evergreen will not be annexed into the City of Kalispell is not thinking ten
years ahead. The City should not have allowed the Developers Extension Agreements to
be approved for Bitney and North Village. The same situation exists with Evergreen.
The input from the staff has not changed. The City of Kalispell is premature on a
decision. The presented figures are questionable.
C. Furlong expressed concern for upgrading the streets and water system to standards
if annexation of Evergreen is to be an issue. The taxes would not begin to pay for the
improvements that Evergreen demands.
DPW Hammer stated the City of Kalispell will be indirectly telling new developers it is
too costly for taxes and assessments to develop within the City. Evergreen will be
offering the same facilities for less money.
January 30, 1989 SEWER AND WATER COMMITTEE MINUTES Page 2
4 C. Nystul stated Evergreen does not have financial resources and does not have plans
to create their own system once on Kalispell's WWTP.
The Committee then addressed the proposal of Evergreen point by point.
• 1 Evergreen contract with the City of Kalispell to treat the Evergreen effluent.
•
•
Acting Water Supt. Van Dyke stated the contract should include a renewable time factor
to negotiate prices. C. Nystul stated this can be accomplished in the development of
a contract.
Chief Operator Olsen stated the Public Service Commission is not going to allow Kalispell
to charge Evergreen actual costs for treatment of sewage and cannot make money on
Evergreen sewer treatment. C. Nystul stated the City could make a reasonable profit
and should be able to recover depreciation on the existing plant plus a percentage
of profit on the investment.
C. Hopkins questioned Kalsipell's costs to treat the sewage in relation to hiring
additional personnel, cost of added electricity and chemicals. C. Nystul responded
this is part of operation and maintenance costs.
The Committee agreed the concept of a contract is satisfactory.
be delivered to the C
N.E. area of
C. Furlong expressed concern for treating grey water and the possible problems with
biological balance at the WWTP. Chief Operator Olsen stated if the gallonage that
enters the WWTP could be leveled out there would not be a problem in treatment. There
will be a problem with odors.
C. Nystul responded the lift station odors would be the responsibility of Evergreen.
He questioned if odors in manholes within the system would cause a problem. Chief
Operator Olsen responded the odor problem in the manholes could be solved, but it
would be costly.
7. Evergreen
Kalispell area
of Evergreen.
will
M
line size
r additional capital costs bec
C. Nystul questioned if statement #7 addresses adequate size from the proposed lift
station to the trunk line. C. Furlong stated this would be his requirement.
Acting Water Supt. Van Dyke stated the trunk line was originally built for the North
Village Sewer District. There is needed replacement or upsizing north of the mall.
C. Furlong stated if Evergreen proposes they will construct the necessary sewer line
size improvements, a decision of what upsizing is needed should come from the City
staff. C. Hopkins agreed the Council needs to know the impact and what additional
upsizing is needed before making a decision on the Evergreen proposal.
C. Nystul stated ill could be considered as a contribution in -kind toward Kalispell's
future costs and would eliminate the requirement of hookup fees.
3. Effluent flow would be measured daily.
C. Nystul suggested a flow meter be installed in the line. Acting Water Supt. Van Dyke
agreed, a flow meter with a chart possibly remoted in the telemetry would be ideal.
C. Furlong stated there may be a need for off-peak discharge as well.
January 30, 1989 SEWER AND WATER C011i11T'1'EE PUNUrL5
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C. Hopkins stated there is a potential for industrial disposal and questioned if there
is a way to determine if Evergreen is transporting such waste. DPW Hanmer stated the
City can identify industrial waste at the WWTP but cannot determine where it is being
transported from. Testing for industrial waste should be addressed.
C. Hopkins expressed concern for Evergreen possibly requesting lower rates due to
the treatment of only the grey water.
4. Evergreen will share the actual Kalispell Treatment Plant operation and maintenance
costs proportionate to the respective flows.
C. Furlong stated this may only relate to a percentage of the Evergreen flow. Taking
the effluent will not only have a greater impact than the number of gallons transported,
it will affect the overall operation of the WWTP.
C. Nystul stated it appears Evergreen is proposing their rates be based on the number
of gallons they contribute vs total gallons at the WWTP and add in a factor for the
main trunk line.
5. Evergreen will nav a sum. determined from EPA literature. for the oneration and
to the treatment
C. Furlong stated he has a problem using a determining factor from EPA literature.
C. Nystul stated in 4 & 5, Evergreen is looking at a way to arrive at 0 & M costs
for their rate in treating the effluent. Acting Water Supt. Van Dyke stated a number
could be arrived at by using present 0 & M costs for the entire system. C. Nystul
responded Evergreen is more interested in the trunk line, not the collector lines.
• Chief Operator Olsen stated when the sewage arrives at the plant it costs approximately
$ .75 per thousand gallons. This does not include transporting to the plant. Based
upon the proposal of Evergreen, they will be paying less than the $1.57 City of Kalispell
rate payers are paying at present. Electricity will go up as well.
C. Furlong stated 4, 5, & 7 may adversely affect a return on Kalispell's investment.
Acting Water Supt. Van Dyke stated the dollar figure for operation and maintenance of
the main trunk line will be very small.
C. Nystul stated in 6 of the proposal there is relation to sharing debt retirement
proportionate to the respective flows. C. Hopkins suggested the hookup fee be used
to off set some of the bond costs for the trunk line.
C. Furlong questioned which funds are used to pay off the debt retirement and 0 & M.
City Accountant Robertson responded it is included in the rate for users. C. Furlong
stated there will be a lot of people upset over the fact they are paying for
impovements for Evergreen when in fact there are places in other areas of town needing
upgrading. City Accountant Robertson believes the City of Kalispell should have a
five year plan which includes areas of town requiring sewer/water line/main replacement.
8. Evergreen will build, operate and maintain its own colli
i station to deliver i
Mayor Kennedy stated there has been discussion regarding the City of Kalispell owning
the pump station for more control. DPW Hammer stated his concern for having or not
having the ability to shut the system off at the lift station. PSC may not allow this
to happen. If Evergreen Water District looses all of their money, would Kalispell own
Evergreen's system which Kalispell may not want?
January 30, 1989 SEWER AND WATER C0MMiTTHE MINUTES rage 4
Acting Water Supt. Van Dyke stated he strongly believes Evergreen should build their
collection system to City of Kalispell standards.
DPW Hammer noted there are three problems with small diameter pipe if accepted at the
• lift station: 1) It is more corrosive to take the grey water rather than the entire
effluent, estimated life of the pipe is reduced, 2) It will introduce more gases in
the City's manholes. He advised the City to be cautious and careful., 3) The residents
of the City of Kalispell will be the receivers of the odor through the manholes and
sanitary lines.
C Nystul proposed the Staff respond to the eight items listed in the proposal
and comment as to PSC and rate profit. C. Furlong requested staff comments
.ono.Aino rhn .4v cratamanrc made on Kalisnell's current system.
C. Hopkins commented for the record he believes it is not proper long range planning
to bring Evergreen into the City and not have signatures on a Waiver to Protest
Annexation. The City cannot grant Evergreen freedom from annexation.
SOUTHWEST KALISPELL Susan Moyer requested the Committee to recommend the Council
authorize the Public Works Department to advertise bids for Southwest Kalispell
improvements.
DPW Hammer stated obtaining bids will aid in determining a dollar amount for funding.
C. Furlong questioned Susan Moyer if she knows of any problems. Susan Moyer responded
no.
C. Nystul questioned the format in the bids for the street project. DPW Hammer responded
he requested Mr. Carver to modify the request for bids. Carver Engineering has placed
an alternate on the bid to contract the streets as part of the contract.
Discussion took place regarding how the streets will be constructed in relation to bidding.
C. Furlong stated he does not want to bypass Public Works Committee action. C. Nystul
suggested C. Hopkins poll the other Public Works Committee Members to arrive at a
decision and report back to the Sewer and Water Committee for recommendation to
advertise for bids.
WWTP - SELECTION OF ENGINEER C. Hopkins questioned if C. Nystul has any questions to
address the Selection Committee regarding the selection of the engineer for design and
construction of the advanced WWTP.
C. Nystul responded yes and will provide his questions at a later time.
Adjourned: 9:15 AM
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