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HomeMy Public PortalAboutAB01-35CITY COUNCIL City Of McCall AGENDA BILL 216 East Park Street Number AB 01–35 McCall, ID 83638 Date September 13, 2001 ITEM INFORMATION  SUBJECT: Original Agenda Date & Bill No.    Department/Committee/Individual Initials Remarks  Water line and sewer line A Mayor / Council    upgrade for the Holiday P City Manager    Inn Express – request from P Finance Director/City Clerk    Bob Hunt R City Attorney     O City Engineer     V Community Development     A Public Works     L Golf Course/Parks Superintendent    COST IMPACT: $84,977 S Recreation Director    FUNDING SOURCE:  Deputy City Clerk    Water Fund, Sewer Fund  Airport Manager    TIMELINE: ASAP  Librarian      Police Chief    SUMMARY STATEMENT: See the attached correspondence from Bob Hunt and Lindley Kirkpatrick.  RECOMMENDED ACTION: Contribute no more than $84,977 to the water line and sewer line improvements on Third Street; direct staff to prepare an amendment to the FY02 budget to appropriate $25,483 from the Sewer Fund fund balance and $59,494 from the Water Fund fund balance; authorize the City Manager to enter into necessary agreements with Bob Hunt and George & Bonnie Bertram.  RECORD OF COUNCIL ACTION  Meeting Date Action  March 8, 2001 Tabled until March 22.  March 22, 2001 Tabled until April 12  April 12, 2001 Approved up to $34,000 to replace water lines; authorized the City Manager to enter into necessary agreements with George Bertram, Bonnie Bertram, and Bob Hunt  August 23, 2001 Directed staff to identify ways to share sewer costs appropriately.   City of McCall, Idaho Community Development Department Memo To: City Council  From: Lindley Kirkpatrick, AICP  Date: September 10, 2001  Re: sewer line upgrade for the Holiday Inn Express   Following the August 23 Council meeting, staff met with the developer’s engineer to identify portions of the sewer project that can be appropriately shared with the City. The following table identifies $160,129 of water and sewer line improvements necessary for the Holiday Inn Express and Pancake House. There are also additional costs associated with the service connections and site work for each project. All costs are based on valid bids received by Allen Consulting. Of the $77,807 for sewer improvements within the Third St. right-of-way, $24,401 is ‘upstream’ from the Holiday Inn Express site. This work is over and above the minimum that is necessary to provide adequate service to the proposed Holiday Inn Express. AB01–117 proposes that the City and the developer pursue a $50,000 Gem Community Implementation Grant to offset the Holiday Inn Express sewer costs. In April, the City Council agreed to participate in the water line improvement project up to a maximum of $34,000. The City’s participation was limited to the estimated cost of the water line project that was over and above the minimum required by both the Holiday Inn Express and the Pancake House. The additional work included new water connections for all customers between Floyde and McBride, a new fire hydrant, and a portion of the water main south of the proposed developments. The bids received by Allen Consulting were significantly higher for the new water connections to existing customers on the east side of Third Street. The new water main will be on the west side of the road, requiring that the service connections be ‘jacked’ under the highway. The total cost to the City for both the water and sewer improvements will be $84,977. That includes the $34,000 already committed to the project and the additional cost of the previously agreed upon scope of work for the water project. The City’s $24,401 participation in the sewer project is a result of the Council’s desire to share the costs with the developer. All additional project costs, including engineering and construction management, will be the responsibility of the developers. CITY COUNCIL City Of McCall AGENDA BILL 216 East Park Street Number AB 01–35 McCall, ID 83638 Date August 23, 2001 ITEM INFORMATION  SUBJECT: Original Agenda Date & Bill No.    Department/Committee/Individual Initials Remarks  Water line and sewer line A Mayor / Council    upgrade for the Holiday P City Manager    Inn Express – request from P Finance Director/City Clerk    Bob Hunt R City Attorney     O City Engineer     V Community Development     A Public Works     L Golf Course/Parks Superintendent    COST IMPACT: unknown S Recreation Director    FUNDING SOURCE:  Deputy City Clerk    Water Fund, Sewer Fund  Airport Manager    TIMELINE: ASAP  Librarian      Police Chief    SUMMARY STATEMENT: See the attached correspondence from Bob Hunt and Lindley Kirkpatrick.  RECOMMENDED ACTION:  RECORD OF COUNCIL ACTION  Meeting Date Action  March 8, 2001 Tabled until March 22.  March 22, 2001 Tabled until April 12  April 12, 2001 Approved up to $34,000 to replace water lines; authorized the City Manger to enter into necessary agreements with George Bertram, Bonnie Bertram, and Bob Hunt   City of McCall, Idaho Community Development Department Memo To: City Council members  From: Lindley Kirkpatrick, AICP  Date: August 16, 2001  Re: Waterline and sewer line upgrade for the Holiday Inn Express – Third Street, between Floyde and McBride   Mr. Hunt’s letter of August 16 raises three issues for the Council to consider. The first is whether he, as the developer of the 125 room Holiday Inn Express, should be responsible for upgrading the water and sewer lines on Third Street. His second and third points relate to the use of the water and sewer connection fees to pay for the needed improvements and the point at which those fees are collected. On the first issue, it has been a known element from the initial stages of review of this development that the existing sewer line does not have the capacity to accommodate a new 125 room hotel. In the initial meeting on September 27, 2000 between Mr. Hunt, his attorney, his contractor, his realtor, the Public Works Director, the Fire Chief, the Fire Marshall, the City Manager, the City Engineer, and me, it was made clear that the existing sewer line could not handle a development of this size and that it would be the developer’s responsibility to replace the sewer line. The replacement of the sewer line and the extension and/or replacement of waterlines ultimately became specific conditions of approval from the Planning & Zoning Commission. The reasoning behind these conditions of approval is simple: the existing water and sewer infrastructure is unable to accommodate the new demand from the 125 room hotel. An immediate problem of inadequate sewer line capacity would be caused by this development. The developer is responsible for solving the problem by providing adequate infrastructure. In nearly every subsequent discussion, the sewer deficiencies and the developer’s responsibilities have been clear. The minutes of the March 6 Planning and Zoning Commission meeting, the staff reports and City Engineer’s review, the P&Z’s conditional approval of the Scenic Route District Site Plan, the City Council’s minutes of March 8 all reflect the sewer line deficiencies and the developer’s responsibilities. The developer or his representative was present at each of the meetings referred to. Mr. Hunt’s suggestion that the water and sewer connection fees should be used to pay for the water and sewer improvements necessary for his development is not a new one. City Code requires that the connection fees be used to erect, construct, enlarge, extend and/or maintain water and sewer distribution, collection and treatment facilities. While the City has not historically applied connection fees from a specific project to improvements required by that project, the City Code seems to allow it. However, any use of connection fees should be limited to improvements necessary for all water or sewer users, not improvements required solely to serve one development. Mr. Hunt’s third point is that the water and sewer connection fees should be collected prior to issuance of a certificate of occupancy, rather than prior to the issuance of a building permit. McCall City Code 2-2-20(B) requires that a sewer and water connection permit be issued simultaneously with the building permit. All fees must be paid before the connection permit can be issued. A partial solution to this problem would be to issue a foundation permit, prior to issuance of the full building permit. This would allow Mr. Hunt to begin some work on the structure without incurring the full cost of the water and sewer connection fee. Alternatively, the Code would have to be amended to fully implement Mr. Hunt’s suggestion. CITY COUNCIL City Of McCall AGENDA BILL 216 East Park Street Number AB 01–35 McCall, ID 83638 Date April 12, 2001 ITEM INFORMATION  SUBJECT: Original Agenda Date & Bill No.    Department/Committee/Individual Initials Remarks  Waterline upgrade for the A Mayor / Council    Pancake House and Holiday P City Manager    Inn Express – request from P Finance Director/City Clerk    George & Bonnie Bertram R City Attorney     O City Engineer     V Community Development     A Public Works     L Golf Course/Parks Superintendent    COST IMPACT: $34,000 S Recreation Director    FUNDING SOURCE:  Deputy City Clerk    Water Fund  Airport Manager    TIMELINE: ASAP  Librarian      Police Chief    SUMMARY STATEMENT: See the attached correspondence from Bonnie Bertram, Lindley Kirkpatrick and Vern Brewer.  RECOMMENDED ACTION: Approve up to $34,000 to replace water lines; authorize the City Manager to enter into necessary agreements with George & Bonnie Bertram and Bob Hunt; direct staff to prepare budget amendment.  RECORD OF COUNCIL ACTION  Meeting Date Action  March 8, 2001 Tabled until March 22.  March 22, 2001 Tabled until April 12  April 12, 2001 Approved up to $34,000 to replace water lines and authorized the City Manger to enter into necessary agreements with George Bertram, Bonnie Bertram, and Bob Hunt and directed staff to prepare budget amendments, if needed   City of McCall, Idaho Community Development Department Memo To: City Council members  From: Lindley Kirkpatrick, AICP  Date: April 9, 2001  Re: water line improvements for the new Pancake House and the new Holiday Inn Express   Staff has met several times in the past few weeks with representatives of the new Pancake House and the new Holiday Inn Express regarding the provision of water and sewer service to those new developments. SEWER SERVICE It is clear that Bob Hunt, the developer of the Holiday Inn Express, must replace the sewer line in Third Street for approximately 800 feet south of Floyde Street. The existing sewer line does not have the ability to serve the new hotel. Mr. Hunt has agreed to replace that sewer line. WATER SERVICE The water line issues are not as simple to resolve. There are two solutions to the water needs of the new Pancake House and the new Holiday Inn Express. The first solution provides no additional benefit to the City, but allows those developments to proceed. The second solution allows those developments to occur and also provides a benefit to the City’s water system. Option One Adequate water service can be provided to both the new Pancake House and the new Holiday Inn Express by extending an 8" water line from Thula Street, across the Holiday Inn Express property and under Third Street to the new Pancake House. This option will provide adequate fire flows for both new developments, but will leave the existing 4" transite lines and 1" galvanized lines in service. At some point in the future, the City will have to replace these lines, as part of the South Corridor Improvement Project. Option One would be accomplished entirely at the developers’ expense. It would address their immediate needs, but leave an unsolved problem for the City. Option Two The existing water lines in Third Street can be replaced with a new 8" water line from Floyde Street to McBride Street. The new 8" lines would connect with existing 8" lines at Floyde and McBride, creating a loop. The Holiday Inn Express and Pancake House would be served by new 8" service lines from Third Street. Additionally, new service connections would be provided for the existing users along Third Street. The existing undersized service lines for Bill’s Grocery, the small trailer park, and the A-1 Storage & Car Wash office would be upgraded. Option Two would serve the needs of the new developments and would upgrade the City’s infrastructure to other nearby users. It would provide an improvement to the entire water system by removing from service today old and undersized waterlines south of the new developments that will have to eventually be replaced. Option Two would be accomplished through a cost-share agreement between the developers and the City. The City’s portion would be capped at $20,000 for the new 8" water line in Third Street and $10,000 to $14,000 for the new service connections and other associated work not related to the Holiday Inn Express or the Pancake House. The attached correspondence from Vern Brewer explains Option Two in more detail. STAFF RECOMMENDATION Because of the benefit to the City and to the water system users, staff recommends that the Council enter into a cost-share agreement with Bob Hunt and George & Bonnie Bertram to construct Option Two. The City’s cost will be limited to $20,000 for the new 8" water line. Additional work, unrelated to the new development, is estimated to be between $10,000 and $14,000. Approval of this concept will require a budget amendment to appropriate $34,000 from the Water Fund fund balance.