H2. Budget PHllu$ lA
MEMORANDUM
To: Doug Russell, City Manager -p-
From: Susie Turner, P.E. Public Works Director
Re: Public Hearing for Budget Amendment Recommendations for the Westside
Interceptor (WSI) and Sewer Line A Replacement
Meeting Date: November 6, 2017
Background: In order to complete the WSI as one project (Phase 1 and Phase 2), several budget
amendments are required for FY 17/18. In addition, an amendment to the sewer fund is required
to add a project to replace a section of Sewer Line A because it will be compromised during the
construction of the WSI. The following amendments for the 2017-2018 fiscal budget are listed in
the table below.
Sewer Operations: FUND: 5310-454-430630
Current
Amendment
Amend
FY 18 Budget
FY 18 Budget
Amount
Capital Outlay / Bonded Debt - Westside Interceptor
$7,086,427
$10,680,848
$3,594,241
Capital Outlay -Impact Fee funds (10123)
957: West Side Interceptor Phase I - Carryover &
$1,180,861
$1,755,101
$574,240
New Appr.
Capital Outlay: from Rates (10100)
$0.00
$558,000
$558,000
963: Sewer Line A Replacement Project
TOTAL
$4,726,661
Notification and the public hearing processes are applicable as part of the consideration for the
adoption of the proposed 2017-2018 fiscal budget amendments. As such, the requirement for a
public hearing prior to Council taking action for the proposed 2017-2018 fiscal budget
amendment is scheduled for the November 6, 2017 Council Meeting.
ATTACHMENT: Materials from the October 16, 2017, meeting on this subject including
Resolution 5842
RUf3lAC,
MEMORANDUM
To: Doug Russell, City Manager
From: Susie Turner, P.E. Public Works Director
Re: Budget Amendment Recommendation for the Westside Interceptor and Sewer Line
A Replacement
Meeting Date: October 16, 2017
Background: There are several budget amendments required in respect to the West Side
Interceptor (WSI) Project. The first being the additional cost to complete Phase 2 of the WSI,
and the second to replace an existing sewer main that will be parallel to the WSI's installation
location.
At the September 25th Council Work Session, Public Works Staff reviewed the status of Phase 1
of the WSI Project and the proposal to complete the Phase 2 portion of the WSI in conjunction
with Phase 1. The discussion reviewed land acquisition, route layout, design, construction
schedules, and funding options for both phases of the WSI. At the conclusion of the meeting,
Council provided direction to proceed with completing the entire WSI Project (Phase 1 &2). The
estimated cost for the WSI Project is listed in the table below:
WSI Summary of Project Cost
(Construcion, Land, Professional Fees)
Total FeestCosts
Preferred Route Asseseement
$174,750
PHASEI
SCHEDULE 1 - TIE-IN TO CASING AT EAST SIDE OF BYPASS
$2,675,966
BYPASS CROSSING (COMPLETED)
$233,069
SCHEDULE 2 - BYPASS TO TRIPLE CREEK DRIVE
$3,263,700
SCHEDULE 3 - TRIPLE CREEK DRIVE TO LS #29 TO 3 MILE DRIVE
$1,805,812
SCHEDULE 4A - THREE MILE DRIVE TO NORTH END OFTRIPP'S PROPERTY
$1,930,091
PHASE 1 SUBTOTAL =
$9,908,638
PHASE 2
SCHEDULE 413- NORTH END OFTRIPP'S PROPERTY TO W EST RESERVE DRIVE
$1,971,310
SCHEDULE 5 - FORCEMAIN FROM PUMP STATION #36 TO ROUNDABOUT AT W RESERVE DRIVE
$1,345,410
PHASE 2 SUBTOTAL .
$3,316,720
TOTAL ESTIMATED PROJECT COST Phase 1 & 2 = $13,400,108
SCHEDULE 1's route includes multiple utility conflicts and challenges that have to be addressed
in the design and construction of the WSI. One such area is the portion of the WSI that will be
located in 81h St W from 9 Ave W to 131h Ave W.
In this section, there is an existing sewer main (Line A) and a water main. The water main is
scheduled for replacement in FY 18's Budget and is listed as part of two Capital Outlay Projects
within the Water Fund 1) 962: 9`h Ave W Water Main Replacement, and 2) 963: 81h Street W
Water Main Replacement. The water projects will be designed, bid as an alternative, and
constructed in coordination with the WSI project.
Sewer Line A was going to be left in place in 8h St W during construction of the WSI.
However, after discussions with the Utility Superintendent and the Maintenance Staff, there are
concerns it will be impacted during the construction. Sewer Line A in this section is an 18" clay
pipe and provides services to the west side of Kalispell and Highway 93 corridor north of the
Meridian Road and Highway 93 intersection via the Grandview Lift Station. The manholes and
pipes are in poor condition due to root intrusion, pipe/manhole material, bury depth, and age (pre
1940's). The poor status of the system makes it susceptible to failure during the large excavation
required for the WSI. Therefore, we are recommending replacement of three blocks of Line A in
this area at the same time the WSI is constructed. There was not a scheduled CIP for the Line A
Sewer Replacement Project in FY 18's Budget.
Please see Exhibit A for a schematic reference of the WSI Project, Water Project and Sewer Line
A Project.
Fiscal Effects: There are several budget amendments required to fund the addition of Phase 2 of
the WSI and the replacement of three blocks of Sewer Line A. FYI 8's budget allocated
$7,086,427 in bonding for construction of WSI Phase 1, and allocated $1,180,861 from the
capital outlay Sanitary Sewer Impact Fee Fund (10 123) for land acquisition and professional
fees. With the addition of Phase 2, FY 18's budget allocation for bonding of the construction of
the total WSI Project will need to increase to $10,680,848. Additionally, an appropriation of
$574,240 will need to be added to the Capital Outlay —Impact Fee Funds (101.23) 957 - West
Side Interceptor Phase I increasing the line item amount to $1,755,101. This addition will cover
the remaining professional fees including design, bid, and construction management to complete
the entire project. Please see Exhibit B for a break out of the WSI estimated cost and
expenditures.
Sewer Line A Replacement Project will need to be added as a Capital Outlay Project from rates.
The estimated cost for design and construction is $558,000. This project will be funded from
rates and can be expensed from FY 18's sewer rate revenues. Please see Exhibit C for a break
out of the Sewer Line A Replacement Project estimated probable cost and expenditures.
Recommendation: Amendments to FY 18 Budget are as follows:
Sewer Operations: FUND: 5310-454-430630
Current
Amendment
FY 18 Budget
FY 18 Budget
Capital Outlay / Bonded Debt - Westside Interceptor
$7,086,427
$10,680,848
Capital Outlay -Impact Fee funds (10123)
$1,180.1861
$1,755,101
957: West Side Interceptor Phase I - Carryover & New Appr.
Capital Outlay: from Rates (10100)
$0.00
963: Sewer Line A Replacement Project
Exhibit B
WSI Summary of Project Cost
(Construction, Land, Professional Fees)
Total Fees/Costs
Preferred Route Assessment
$174,750
PHASE 1
SCHEDULE 1 - TIE-IN TO CASING AT EAST SIDE OF BYPASS
$2,675,966
BYPASS CROSSING (COMPLETED)
$233,069
SCHEDULE 2 - BYPASS TO TRIPLE CREEK DRIVE
$3,263,700
SCHEDULE 3 - TRIPLE CREEK DRIVE TO LS #29 TO 3 MILE DRIVE
$1,805,812
SCHEDULE 4A - THREE MILE DRIVE TO NORTH END OF TRIPP'S PROPERTY
$1,930,091
PHASE 1 SUBTOTAL =
$9,908,638
PHASE 2
SCHEDULE 4B - NORTH END OF TRIPP'S PROPERTY TO WEST RESERVE
DRIVE
$1,971,310
SCHEDULE 5 - FORCEMAIN FROM PUMP STATION #36 TO ROUNDABOUT AT
W RESERVE DRIVE
$1,345,410
PHASE 2 SUBTOTAL =
$3,316,720
TOTAL ESTIMATED PROJECT COST Phase 1 & 2 =
$13 400,168
COMPLETED by June 30 2017
REMAINING Probable Cost Phases 1 & 2 FY 18
Impact fee funds start of FY 2018
Impact fee funds toward WSI in FY 2018
Total Probable Cost for Bond Phase 1 & 2
-$964,158
$12,435,949
$2,593,200
-$1,755,101
$10,680,848
Impact Fee Fund FY 18 Review
SANITARY Sewer Impact Fee Inv. Account
FY 18 Project Cost
FY 18 Budget
Beginning Cash FY 18
$2,593,200
Est. Revenues FY 18
$513,000
Est. Interest -Sanitary Impact Fee Invest. Acct. (10123)
$25,000
Capital Outlay -Sanitary Sewer Impact Fees Funds
Grandview L.S. Relocation & Upsize (50%rate 50%impact fee)
$230,000
Main & Lift Station Upsize
$200,000
West Side Interceptor (New Appr. $574,240)
$ 1,755,101
Sub Total
$2,185,101
B'; I0 i
Debt Service From Sanitary Impact fees (10123):
1
'; _1',17i;r1:
Ending Cash Balance
I
1 $851,099
Exhibit C
Item
Urf4t
Engineer`s Estimate
Unit Price
Total PrIce
No
Quwtltv
unit
Description
Fig ures)
(Figutes),
LINE A REPLACEMENT - 8TH SST FROM ALLEY E OF STH AVE TO ALLEY W OF 10TH AVE
Construction Costs
I
I
LS
Mobilization. Bonding and Submittals (5% Max)
$20,100.00
$20.100.00
2
1
LS
Traffic Control
$8.100.00
$8.100.00
3
1,467
Sy
Aspheit Removal IZVVide
$3.00
$4,400.00
4
15
DAY
Bypass Pumping NOT &VER WEEKENDS
$8Z00,00
S127,500.00
5
4
EA
Manhole - 40,� Sanitary Sewer
56.500,00
S26,000.00
6
10
'EA
Gravity Sewer Service - Sch. 40 PVC Pipe Mth Cleanouts
S3.000.00
SK000,00
7
1,100
LF
Pipe - Buried: IS' Sanitary Sev,,er Main (IN ROADWAY)
$105.00
$116.600,00
1,730
CY
Imported Trench B,ackfill - 3' Minus Crushed Subbase
$30,00
$51.900,00
9
1,230
Sy
Stabilization Fabric
$2.00
$2,460.00
10
310
CY
Select Sub -Base Course - 3' Minus: 9" Thick
$25.00
$7.750,00
11
210
CY
Crushed Base Course - 3/4" Minus: V' Thick
$35.00
$7.350.00
12
330
TON
Asphatt Concrete Pavement: 4" Thick
$90.00
$29.700,00
13
0
SY
Vegetation Restoration
$2.00
S0.00
14
1
LS
200k Contingency
$86.200.00
$86,200.00
Subtotal Construction Costs =
S516,960,00
Sewer Line A Project Probable Costs
Total Fees/Costs
Construction Total
$516,960
Professional Fees
$40,200
TOTAL ESTIMATED PROJECT COST
$557,160
N
I IN LIM I ; wigs 111 1 or-M I.
WHEREAS, in the budget adopted by the City of Kalispell for the 2017-2018 fiscal year, certain
detailed and itemized estimates of expenditures of the Sanitary Sewer Fund were not
included at the time of adoption.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
• AS FOLLOWS:
SECTION 1, On the 6th day of November, 2017 at 7:00 o'clock P.M., in the Council
Chambers, City Hall, 201 1st Avenue East, Kalispell, Montana, the City
Council of the City of Kalispell shall hold a Public Hearing on the following
amendment to the 2017-2018 fiscal budget:
Sewer Operations:
Current FY 18
Amend FY 18
Amend
FUND: 5310-454-430630
Budget
Budget
Amount
Capital Outlay/Bonded Debt — Westside
$7,086,427
$10,680,848
$3,594,421
Interceptor
Capital Outlay/Impact Fee Funds
$1,180.861
$ 1,755,101
$ 574,240
(10123)
957: West Side Interceptor Phase I —
Carr aver & New Appr.
Capital Outlay/from Rates (10100)
$ 0.00
$ 558,000
$ 558,000
963: Sewer Line A: Replacement
Project
$4,726,661
For the purpose of constructing the Westside Interceptor and a Sewer Line replacement.
SECTION 2. That notice of the passage of this resolution shall be published pursuant to
Section 7-1-4127, MCA.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 16TH DAY OF OCTOBER, 2017.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN, that on the 6th day of November, 2017.at 7:00 P.M., in the
Council Chambers, City Hall, 201 1 st Avenue East, Kalispell, Montana, the City Council of the City
of Kalispell shall hold a Public Hearing on the following amendments to the 2017-2018 fiscal
budget:
Sewer Operations:
Current FY 18
Amend FY 18
Amend
FUND:5310-454-430630
Budget
Budget
Amount
Capital Outlay/Bonded Debt— Westside
$7,086,427
$10,680,848
$3,594,421
Interceptor
Capital Outlay/Impact Fee Funds
$1,180,861
$ 1,755,101
$ 574,240
(10123)
957: West Side Interceptor Phase 1 —
Carryover & New Appr.
Capital Outlay/from Rates (10100)
$ 0.00
$ 558,000
$ 558,000
963: Sewer Line A: Replacement
Project
$4,726,661
For the purpose of constructing the Westside Interceptor and a Sewer Line replacement.
Further information is available on-line at l►t�_//kalispell.cotxtfinayot� and city council/
agenda.plhp or contact the City Clerk at City Hall, telephone (406) 758-7756.
Any person wishing to address the proposed budget amendment may appear at this hearing
and make oral statements or present same in writing. Written comments may also be submitted for
Council consideration by delivering the same to the City Clerk at 201 First Avenue East, Kalispell,
MT 59901, or by email to cityclerkC�kalispell.com prior to the hearing.
If there are questions that might be answered by telephone please call (406) 758-7720.
Dated this 16th day of October, 2017.
Aimee Brunckhorst, CMC
City Clerk
Publish: October 22, 2017
October 29, 2017