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DRAFT 3/23/2010 Memorandum of Understanding Spring Meadows Addition Municipal Sanitary Sewer Service This Memorandum of Understanding (MOU) is entered into by and between Missoula County, hereinafter called the County, and the City of Missoula, hereinafter called the City, concerning the Spring Meadows Addition Municipal Sanitary Sewer Project. WITNESSETH THAT: WHEREAS, the County and City have expressed a concern for the protection of the Missoula Valley sole source aquifer, as designated by the Environmental Protection Agency in 1988, and have engaged in cooperative water quality planning projects since this sole source designation was received. WHEREAS, the Spring Meadows Addition subdivision is part of the Wye Area, which lies within the adopted wastewater service area of the 1999 Wastewater Facility Services Plan Update. WHEREAS, the 1994 Cumulative Effects/Carrying Capacity Study and 1999 Missoula Wastewater Treatment Facility Plan indicate that untreated wastewater from septic systems in the County constitutes a major source of pollution to the Clark Fork and Bitterroot Rivers and poses a threat to the aquifer. WHEREAS, the Clark Fork River Voluntary Nutrient Reduction Program (VNRP) adopted by the City-County Health Board, City Council, and Board of County Commissioners includes a reduction goal for Missoula area ground water loading from septic systems. The goal is to connect 50% of the 7,000 existing septic systems in the Missoula urban area to public sanitary sewer by 2008, and hold the number of septic systems to no more than 3,500 in the future. WHEREAS, in January 2008, the Missoula City-County Health Department received notification from the Montana Department of Environmental Quality that a private well in the Mahlum Meadows subdivision, which lies in the Wye Area, exceeded the drinking water standard for nitrate of 10 mg/l. WHEREAS, the County and City are committed to improving the water quality in the area, commonly referred to as the Wye Area, of the water quality violation, Wye Area. WHEREAS, the Missoula City-County Health Department, in conjunction with the Missoula Valley Water Quality District, conducted a detailed study in 2008 of the drainage basin associated with the water quality violation. This study identified the Spring Meadows Drainage as the most likely source of the ground water pollution causing the water quality violation. WHEREAS, subsequent to the identification of the Spring Meadows Drainage as the problem area, the Missoula City-County Health Department adopted a Revised Policy Regarding Subdivision and Septic Applications in the area, published the detailed study, and adopted a Special Management Area into the Missoula City-County Health Code. WHEREAS, it has been determined that extension of a municipal sanitary sewer system to unsewered areas in the Wye Area would serve to mitigate water quality problems. ---PAGE BREAK--- DRAFT 3/23/2010 WHEREAS, the Spring Meadows Addition subdivision is comprised of 67 lots, 62 of which have individual drainfields where sewer effluent discharges to groundwater. WHEREAS, the County has obtained grant money from the Treasure State Endowment Program to study the Spring Meadows Addition sewer project and prepare a preliminary engineering report. WHEREAS, the preliminary engineering report for the Spring Meadows Addition Sewer Project evaluated alternatives and recommended connection to City of Missoula municipal sanitary sewer. WHEREAS, the City Public Works Department has indicated its conditional support of this project through a letter dated February 26, 2010, stating the City’s intent to enter into an Interlocal Agreement with the County to take ownership of the sanitary sewer system after construction and provide operations and maintenance services. NOW, THEREFORE, it is herby understood and agreed as follows: The County will: Create a Rural Special Improvement District (RSID) to finance a portion of the project. Include City sanitary sewer development fees of $1,400 per lot in the project cost, which will be paid to City prior to connection to City sanitary sewer. Submit grant funding applications to the Treasure State Endowment Program and the Renewable Resource Grant and Loan Program to try to gain additional funding for the project. Inform property owners in the Spring Meadows Addition that sanitary sewer contracts with the City, including waivers and petitions to annex, are required prior to owner’s connection of a home or building to the sanitary sewer system. That eventually, the City will execute the contract related petitions to annex at some future time of the City’s choosing. Complete final designs in accordance with City standards, at such time as the project becomes financially viable. After final designs are complete, construct the sanitary sewer improvements in accordance with approved plans and specifications. That the sewer improvements will be constructed within public right-of-ways or public utility easements or utility easements obtained by the County and transferred to the City upon City acceptance of the facilities for maintenance. The City will: Review final design plans for conformance with City standards and approve said plans prior to construction. Upon construction completion and City inspection, testing, and approval for access, takes ownership of the sanitary sewer improvements. Operate and maintain the sewer improvements as part of the City municipal sanitary sewer system. Administer the required sanitary sewer contracts with conditions of property owners signing waivers and petitions to annex into the city and other conditions contained in the contract for sewer service. ---PAGE BREAK--- DRAFT 3/23/2010 It is mutually agreed by the parties that: The above recitals are incorporated into and made a part of this memorandum. The County and City will enter into an Interlocal Agreement prior to the creation of the RSID, which shall set forth the terms and conditions under which the City will assume ownership and responsibility for the Improvements, and the rules and regulations under which the properties in the proposed District will be served by the Municipal Sanitary Sewer System. This memorandum may be modified by mutual consent of the parties at any time prior to its expiration. This memorandum shall expire on December 31, 2012 or at the time an Interlocal Agreement has been signed by both parties, whichever shall occur first. Dated this day of BOARD OF COUNTY COMMISSIONERS, MISSOULA COUNTY, MONTANA Michele Landquist, Chair Jean Curtiss, Commissioner Bill Carey, Commissioner APPROVED AS TO FORM AND CONTENT: ATTEST: Deputy County Attorney Clerk and Recorder CITY OF MISSOULA - ACCEPTANCE Approved by the City Council of the City of Missoula and accepted this day of , 2010. ATTEST: BY: Martha L. Rehbein, CMC John Engen City Clerk Mayor (SEAL) ---PAGE BREAK--- DRAFT 3/23/2010 APPROVED AS TO FORM AND CONTENT: Jim Nugent, City Attorney