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18. Addendum to Interlocal Agreement/Evergreen Water DistrictADDENDUM TO INTERLOCAL AGREEMENT NOW THEREFORE IT IS MUTUALLY AGREED BETWEEN THE PARTIES AS FOLLOWS: SECTION I. a. That "replacement costs" referred to in Appendix B of the Interlocal Agreement between the City of Kalispell and Flathead County Water & Sewer District No. 1-Evergreen are hereby, agreed to be those costs contained in Exhibit "A" (Replacement Equipment Schedule), attached hereto and for purposes of this Addendum made a part hereof, as the equipment, appurtenances and accessories added to the Waste Water Treatment Plant between 1985 and 1996. Further additions to or deletions from the Replacement Equipment Schedule shall be as determined under this Addendum. b. The City shall on or before August 1, each year, during the term of the Interlocal Agreement provide the District with a list of equipment, appurtenances, and accessories added to the plant for the preceding year resulting in a rate adjustment for the subsequent year, which shall be accounted for in the Replacement Equipment Schedule. SECTION II. a. That on or before August 1, each year, during the term of the Interlocal Agreement the City shall provide to the District a statement listing the equipment, appurtenances and accessories replaced during the preceding year resulting in an expenditure from the Replacement Cost Reserve Account. b. It is mutually agreed between the parties that the District has an equity interest in funds contributed to the Replacement Cost Reserve Account based upon the average annual flow of District to the WWTP. On or before August 1 of each year, during the term of the Interlocal Agreement, the City will provide the District with a Replacement Cost Reserve Account accounting showing: 1) beginning balance; 2) the amounts contributed to the fund during the preceding year; 3) amounts spent for replacement; 4) balance of account; 5) percentage of District flow for year contributed to the WWTP and 6) cumulative equity of District in Replacement Cost Reserve Account based upon the average yearly percentage of District flow to the WWTP. For purposes of this Addendum the Replacement Cost Reserve Account for the year ending June 30, 1996, is as set forth in Exhibit "B", attached hereto and thereby made a part hereof. C. It is understood and agreed between the parties that the City shall have the authority to pool moneys contributed to the Replacement Cost Reserve Account with other moneys available to the City and invest said moneys in investments available to cities under Montana law. The City shall calculate interest accumulated in the Replacement Cost Reserve Account on a monthly basis during the term of the Agreement based upon the month end balance of the Account. Interest on the Replacement Cost Reserve Account shall commence on July 1, 1996. d. That during the term of Agreement, the parties agree to not allow the Replacement Cost Reserve Account to fall below $200,000. In the event the Replacement Cost Reserve Account does fall below $200,000, both parties agree to increase their respective contribution to the Replacement Cost Reserve Account by 50% until the Replacement Cost Reserve Account reaches $500,000. e. In the event the Interlocal Agreement is terminated at the expiration of the Agreement or any renewal period allowed under the Agreement, City shall rebate to District the District's cumulative equity, together with interest under § c, above, remaining in the Replacement Cost Reserve Account. SECTION III. It is mutually agreed between the parties that Interlocal Agreement, Sewage Treatment Rate, is hereby amended to change the effective date for determination of sewage treatment rates from January 1 to July 1, commencing July 1, 1996 for the duration of the term of the Interlocal Agreement. = 8= SS87R8S848S8�8�8??Q88S8�S8��RS8S88S88SS�888 C =v 25c52525��?S2S�c525Z525c3Z5���Z5�5c'S�c'S��25 � Qom` _ QpQ ��}• �f, o A p 0 CT �/`f FMt�✓1 n 11 O_ IA 69 fA (A (A Vi (!t Vl VY 69 fA ffT Vf V9 di bA b4 00 O fV �y Gil t� CZ O� 6R C 00 00 O+i � "r M 8 O 8 OC 8 W� i• tri t� M � OC CF V00 i .-.. V9 iR N M O 0 fA J r C M V'1 Q O�OI r uv C F Z wa G d' F Z n v E flA Y ai C C br E U '0 c a E c 3 cooE •" a�Ei O •?" E A +- ° k u ti > Li 'a u 0:6E" �? v d.' G r l' p E -0 3p q UC E< u€ a v v u .5 w 'a m., v" u c o_ E U :a •c e° c c .' y G ,, Cd E 10 m E C E •� ca a �- c�73 E ea C� a •- c r ll� IR r4 C14 61� Z' 4A (A 6n 00 00 en VII 00 --4 W% ws 6oll 4m Zk V) 60q I S CH Y4 i'ter cc io% > 0 E t E a rA op O vr �6 t 9 Z 3 > E 'E E E 604 iheCllyotKalisell _ Incorporated 1892 Telephone (406) 758-7700 FAX (406) 758-7758 Post Office Boy. 1997 Kalispell, Montana Zip 59903-1997 June 12, 1996 To: Al Thelen interim City Manager From: Amy Robertson Finance Director Re: Administrative computations - Evergreen (1) Currently the direct costs for the Personnel for the Waste Water Treatment Plant include the following: ' Public Works Director 10% Assistant City Engineer 20% WWTP Manager 100% Administrative Assistant 25% (4) Operators 100% Lab Tech 100% Clerk 11 10% The salary distribution will be reviewed each year during the budget process and may change due to work load. (2) Central Garage Transfers are based on the prior year usage of the garage by the department. The garage works on vehicles and equipment as well as welding projects as staffing allows. Costs are tracked on work orders and include materials and labor. (3) The Administrative Transfer formula charges Enterprise and Special Revenue funds for the cost of City government including a portion of the City Manager budget, the Mayor/Council budget, the Finance office, The City Attorney's office, Public Work's Administration, City Hall and the General Government budget. The formula uses the prior year budget figures to determine the next year's transfer amounts. The above listed department budgets are the support services. The total of the departments supported, the Enterprise and Special revenue funds, are totaled and compared to the total City budget to determine the percent of support services to be prorated. (4) The Data Processing transfer is split to the departments based on memory capacity in the computer, payroll and claims transactions. It also includes usage of copiers, the postage machine rental, fax machine supplies, copy and computer paper -all purchased centrally. We charge the WWTP for 5% of the cost of Data Processing Fund M & O. The distribution will be reviewed annually at budget time. Douglas Rauthe Mayor Al Thelen . Interim City Manager City Council Members: Gary W. Nystul Ward 1 Cliff Collins Ward I Norbert F. Donahue Ward II Dale Haarr Ward It Jim Atkinson Ward Ill Lauren Granmo Ward Ill Pamela B. Kennedy Ward IV M. Duane Larson Ward IV The district will be notified of any changes in methodology. DAVID L ADTLIK WILLIAM i AST" VIA TELEFACSIMILE Mr. Glen Neier City Attorney Kalispell City Hall Kalispell, MT 59901 A5TL.E AND ASTL.E ATTORNICYS AND COUNSELORS AT LAW 706 VAIN STRUT KALISPELL. MONTANA 5Mi May 31, 1996 Re: Kalispell/Evergreen Interlocal Agreement Dear Glen: FAX (4m 3W *X6 Please find attached rough draft proposals of an Interpretive Guideline Policy and a suggested Interpretive Guideline No. 1 relating to "replacement costs", Please review and give me a call. Very truly yours, W EA/slp Enclosures WHEREAS, the CITY OF KALISPELL (hereinafter called Kalispell) and FLATHEAD COUNTY WATER AND SEWER DISTRICT NO. 1 - EVERGREEN (hereinafter called Evergreen) have entered into an Interlocal Agreement for the treatment of Evergreen's sewage by Kalispell; and, WHEREAS, from time to time Kalispell and Evergreen have negotiated a mutually agreed upon interpretation of certain provisions of the Interlocal Agreement. WHEREAS, Kalispell and Evergreen are interested in establishing guidelines for the future interpretation of provisions of the Interlocal Agreement; and, WHEREFORE, as evidenced by their signatures hereon, when Kalispell and Evergreen have agreed to an interpretation of the Interlocal Agreement they may further agree to establish that interpretation as a guideline for future use in interpreting the Interlocal Agreement. Each agreed upon guideline will be dated, numbered and signed by the respective parties as an interpretive guideline for future use in Interpreting the provisions of the Kalispell/Evergreen Interlocal Agreement. DATED this day of , 1996. CITY OF KALISPELL .M FLATHEAD COUNTY WATER AND SEWER DISTRICT NO. I - EVERGREEN Pursuant to the Interprative Guideline Policy adopted by Kalispell and Evergreen, as evidenced by their signatures hereon, they have negotiated an agreed upon interpretation of the term "replacement costs" as set forth on page 12 of the lnterlocal Agreement which reads as follows: R�pl ement CQ9 --- $31,OOCfyr" plus the monthly cost of depreciation or replacement based upon a 20 year life for Treatment Plan equipment, appurtenances, and accessories added to the plant. Kalispell and Evergreen as evidenced by their signatures hereon, agree that in future interpretation of the phrase "replacement costs" the items set forth on Exhibit "A" attached hereto are within the definition of replacement costs set forth in the Interlocal Agreement as being "equipment, appurtenances and accessories added to the plant". The phrase "equipment, appurtenances and accessories added to the -- plant" does not include the treatment plant budding nor any real estate. DATED this day of , 1996. CITY OF KALISPELL FLATHEAD COUNTY WATER AND SEWER DISTRICT NO. 1 - EVERGREEN By.