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03-08-89 S&W Comm MinutesMarch 8, 1989 SEWER AND WATER COMMITTEE MINUTES 8:00 A.M. Attendance: Chairman Nystul, Vice -Chairman Hopkins, and Councilman Furlong. Others Present: Surveyor Zavodny, City Accountant Robertson, Acting Water Supt. • Van Dyke, and Rick Hull of The Daily Interlake. EVERGREEN SEWER C. Nystul presented the Committee with an outline for discussion of the Evergreen sewer concept of which the City should respond. He questioned if the Committee is in agreement that the City is willing to provide service to Evergreen. C. Hopkins and C. Furlong responded yes. C. Nystul stated the City should, within the written contract, set boundaries and make provisions for a method to change the boundaries in order for the City to control expansion. The contract should also include responsibility of maintenance and billing. C. Furlong expressed his concern that the Evergreen sewer users may have a rate lower than City of Kalispell rate payers. C. Nystul stated Evergreen will be billed from the City for transmission and treatment. The difference in rates will be due to lower maintenance costs for a new system. Stronger industrial sewage rates are provided in Kalispell's current rules and regulations. C. Nystul stated a seaprate tariff should be incorporated to base the Evergreen rates. He then requested staff input. Surveyor Zavondy stated, on behalf of the staff, there is a need to work together to keep the Flathead Lake basin clean. The staff also has responsibilty to the taxpayers of Kalispell. The staff proposes the City design and implement the sewer system from the underpass to K-Mart and annex the adjacent properties. The value of the property will immediately go up. He expressed concern for allowing Evergreen to implement their own system and drawing business out of the City of Kalispell. Surveyor Zavodny reported DPW Hammer is working on a proposal whereby the City will install the sewer line from the underpass to K-Mart using available financing with EPA participation. This will provide leverage for growth. In this proposal, the strip will be annexed. C. Hopkins agreed. He noted annexation is not addressed by the outline provided. City Accountant Robertson stated she is in agreement with the staff and expressed concern for ownership of the sewer system. She stated the City of Missoula is offering incentives to encourage annexation. C. Nystul stated he has a problem with the concept presented by Surveyor Zavodny. Annexation should be based upon services received for annexation and not by using sewer as a tool to force or encourage annexation. C. Furlong responded C. Nystul's statement is inconsistent. Evergreen would be receiving benefits without annexation. C. Nystul clarified the usual taxing services are police, fire, street, garbage, etc. Sewer service is a utility. C. Furlong responded other developments look to annex into the City for obtaining sewer and water. C. Nystul noted of the annexation issue, the City will be dealing with individual property owners. The Evergreen Water District does not have the authority to waive the rights of individual property owners. • Acting Water Supt. Van Dyke stated he is in agreement with Surveyor Zavodny. If the City allows Evergreen to hook on as proposed, the City is promoting development outside the City. Evergreen is an area of dense population, and except for schools, volunteer fire station, and water district, there is no governing agency. Unless this area moves forward to incorporate and/or organize, it seems that they eventually would March 8, 1989 SEWER AND WATER COMMITTEE MINUTES Page 2 • 0 annex. Evergreen may eventually annex to the City of Kalispell, and improvement should be constructed to City Standards. C. Nystul questioned the reason to go only as far as K-Mart. Surveyor Zavodny responded from the underpass to K-Mart would be designed as a Phase I project. Land will be valuable the instant the sewer goes on line. He noted with the sewer line installed together with annexation that the City will not be responsible for roadway maintenance but will still have the tax benefits. C. Furlong stated whatever is constructed now the City has to consider that this is a beginning and the Evergreen area will ultimately be sewered. C. Nystul stated in order to complete the Facility Plan, the City must respond with any conditions and rate information. He requested Acting Water Supt. Van Dyke and Surveyor Zavodny to report back to Committee with a proposal addressing all aspects of rate charges to include present and future expectations. The Committee decided to meet March 16, 1989 at 8:00 A.M. to complete responses which will be addressed by the City Council March 20, 1989. Adjourned 9:05 A.M. ss