HomeMy WebLinkAboutPublic Utilities Committee Minutes 12.13.1993M I N U T E S
PUBLIC UTILITIES COMMITTEE
DATE: Dec. 13, 1993 TIME: 5:00 P.M.
PLACE OF MEETING - CITY HALL
MEMBERS PRESENT: Bob Graham, Acting Chairman
Ron Marshall Dave Michaels
Albert Ehrlick Sharon Herman
Peggy Schram
OTHERS PRESENT: James L. Kaercher, HKM
Ray Armstron, HKM
A quorum (3 or more) present, the following action was taken by the
committee:
Jim Kaercher and Ray Armstrong of HKM appeared before the committee
with an estimate of what it would cost to finish the Laurel Task 3
water study. Task 3 was to address water system assessment fees.
These fees are typically assessed against developers and builders
to help pay for needed improvements to the existing water system
and for system expansion.
Task 3 was discontinued in June of 1987 because budgets were tight
and not much development was taking place at that time. As of May,
1993, the cost to complete the task 3 study and to update step 1,
the present worth analysis, was approximately $6,905.00. HKM will
get back to us with a more accurate figure.
The committee felt this is something that needs to be done but
suggested referring this matter to the Budget finance committee to
find the money for the study.
Peggy reported that she had a request from Steven Ostermiller of
Portable Sanitation Service regarding a request to use the RV dump
at Terry's Quik Stop for disposal of waste from his business.
After Discussion, motion by Bob Graham that Mr. Ostermiller be
written a letter informing him that he cannot use the RV dump at
Terry's Quik Stop to dump his waste. Seconded by Albert Ehrlick.
Motion carried.
There being no further business to come before the committee, the
meeting was adjourned at 5:40 p.m.
Respectfully submitted,
Sharon Herman
Deputy City Clerk
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TASK III: ESTABLISH SYSTEM VALUES & METHOD OF ASSESSMENT
Step 1. Perform Present Worth Analysis
A. Establish system and improvement priorities
B. Hold reviews with City
C. Perform an analysis on:
1. Value of existing system
2. Cost of making improvements within the existing
service area (water treatment, water
distribution, water storage) to service future
expansion areas.
3. Cost of making improvements in the future
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D. Hold reviews with City
Step 2. Establish Desired Assessment Methods & assist in
adoption of a City Finanacial Water System Policy.
A. Establish alternative methods of scheduling and
financing water system improvement's based on adopted
master plan. Financing water system improvements
refers to assessment cost to developers, hook on fees,
improvements to be scheduled under SIDS, and cost
assessed directly to the over all service area
B. Hold reviews with City
expansion areas for pump, distribution and storage
C. Adopt city financial water system policy
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Step 3. Prepare Written Report on Method of Assessment
A. Prepare written document on system values method of
assessment of financial water system policy
B. Submit report to City for review
C. Prepare five (5) final copies and submit to the City
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May 18, 1993
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Mr. Jim Worthington
City Engineer
City of Laurel
P.O. Box 10
Laurel, MT 59044
RE: Task 3 Water Study, Laurel, Montana
Dear Jim:
HKM Associates
Engineers/Planners
2727 Central Avenue
P.O. Box 31318
Billings, Montana 59107-1318
Phone (406) 656-6399
Fax(406)656-6398
Branch Offices:
Bozeman, Montana/(406) 586-8834
Miles City, Montana/(406) 232-6666
Sheridan, Wyoming/(307) 672-9006
This letter is in response to your previous request to provide a
cost estimate for finishing a Laurel Task 3 water study. The
Task 3 water study was specifically being performed to address
water system assessment fees. These fees are typically assessed
against developers and builders to help pay for needed improvements
to the existing water system and for system expansion.
First, we would like to discuss the history concerning the study.
In 1984, HKM contracted with the City of Laurel to perform a water
system master plan. The water system master plan was performed in
two phases (Task 1 & 2). In April 1986, HKM contracted with the
City of Laurel to prepare a Task 3 water system study to establish
assessment fees. A copy of the April 16, 1986 contract for Task 3
is attached. On June 30, 1987, Mr. Jim Flisrand, City Engineer,
requested HKM to stop work on the Task 3 study. The reason for the
stop work order was because of tight City budgets. Not much
development was taking place in Laurel at the time.
The cost to date on the Task 3 study is $8,479.49. The original
contract amount is for $14,055.00. Therefore,. the remaining amount
under the original contract is $5,515.00. The second page of the
contract addresses delays beyond one year and the possibility to
renegotiate with the city.
We have reassessed our costs to complete the study considering
today's engineering rates and items that need to be updated in the
study. We will need to update Step 1, the present worth analysis,
to reflect 1993 or 1994 costs instead of the 1986 costs. We are
not starting from scratch on Step 1 or Step 2. The City has made
very few modifications to the water system, therefore, we should
only have to upgrade our appreciation/ depreciation tables. From
our estimate, the cost to complete the study would be $6,905.00.
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A Jim Worthington
• 5/18/93
Page 2
Consider this letter an amendment to the April 16, 1986 contract
and a notice to finish the study. We have enclosed two (2) signed
originals. If the City is in agreement, please sign the copies and
return one copy to our office.
Assessment values are important for the city so existing water
users are not subsidizing the water system expansion. Most cities
in Montana realize the importance of assessment fees to: IF
1. Present a fair assessment fee to both the existing
residents of Laurel and the developers.
2. Be able to defend the assessment fee if challenged by a
developer or builder.
Jim, if you or the City Council have any questions, please contact
our office. We would be happy to discuss the study with the City.
Thank you.
40" sincerely,
HKK ASSOCIATES
James L. Kaercher, P.E.
AGREED TO:
Mayor Chuck Rodgers
Date
Enclosure
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