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09. Water Rate Adjustments and Sewer Rate Increase NoticesiheCltoiKallspell Incorporated 1892 Telephone (406) 758-7700 Douglas Rauthe FAX (406) 758-7758 Mayor post office Box 1997 Kalispell, Montana Al Thelen Zip 59903-1997 Interim City ,tilanager City Council Members: Gary W. Nystul MEMO Ward I Cliff Collins To: Mayor & City Council Ward I Norbert F. Donahue From: Al Thelen, Interim City Manage Ward II Dale Haarr Date: July 1, 1996 Wards Jim Atkinson Re.: Annexation - Water/Sewer Rates, Future Agendas Ward ill Lauren Granmo Ward III As I project my remaining time table toward agendas for the next six weeks, I have identified some projects that can be Pamela B. Kennedy Ward IV accomplished and others that will have to await Clarence's arrival. M. Duane Larson Ward IV Water and Sewer Rate Adjustments and Increases We have delayed action on both the water rate adjustments and the sanitary sewer increase so that they can be noticed on one mailing and the hearings scheduled at the same time. We have also been awaiting the anticipated approval of the agreement with Evergreen so that specific City costs of the sanitary sewer system could be identified. Now that the agreement has been approved, we have tentatively identified August 19 for the hearing and will be addressing this item with you at the work session on July 8th so that notices can be authorized on July 15th for the hearing on August 19th. Green Acres Annexation Annexation of an area in and around Green Acres was discussed briefly at your last budget session and will also be reviewed with you in more detail on July 22 or 29. We will also be reviewing the serious sanitary sewer problem in this area on the same date. Mayor and City Council Page 2 July 2, 1996 Evergreen Annexation Several members of the Council identified this issue as a priority item in my initial meeting with each of you the first week I arrived in Kalispell. I have reviewed the extensive file on this item and spent i a day touring the area and have reached the view that this is not the time to annex all of Evergreen. Some of you raised that'issue in view of the recent Attorney General opinion on annexation that is in part identified by the City Attorney's opinion which is attached to this memo. It appears to me that the condition of roads, streets and storm sewers in Evergreen present a tremendous challenge now and in the future as annexation is pursued. The City is not in a position to deal with this problem now. one of the options identified back in the early 1990's was to consider annexation of Evergreen in a ten year period that would put it at about the year 2000. It seems to me that a time table that would lead to. annexation in about the year 2000 is appropriate. However, the annexation of the so called commercial strip is a different issue. It was not annexed in 1994 due to a fluke. In reviewing the data compiled in 1993-94, including the service plan, it is my opinion that this annexation should be pursued again. The staff is working on this project. We are updating the data that was originally developed, including the service plan, and will have at least a preliminary report to share with you on July 22nd. The aforementioned opinion from the City Attorney also applies to this annexation. All of the reasons that you gave for the annexation in 1993-94 still exist. In addition, the possible change in State law that might allow this area to incorporate is another major reason why this commercial strip should be annexed in 1996. Kalispell cannot continue to provide central city services to an increasing suburban area without an aggressive annexation program. This memo is written to make you aware of these activities which will be presented to you in the next few weeks. We also need to complete, the budget and consideration of the two new renewal projects in the next few weeks,'but those items are in the process and will be addressed in a timely matter. Sidewalks The staff will complete an inventory of sidewalk conditions in the entire City during the week of July 8th and that will be presented to the Council on the July 22nd work session. The implementation of an action plan will not be possible this year. Mayor and City Council Page 3 July 2, 1996' Golf Course Lease While several Council members wanted to see this lease completed in this interim period, that will not happen. While I have talked to Steve Dunfee a couple of times since we received their last letter and indicated a willingness to continue negotiations, there has been no interest on their part to work on the project.