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K:\PW-projects\SID 544 Rattlesnake Sewer\Data - Resolution of Intention\SID 544 Exhibit D.docx Exhibit D. Budget and Description of the Project Project Budget: Total project costs: Construction and Installation of Mains $2,953,076 Number of Service Stubs 301 Right-of-Way Acquisition $60,000 Contingency $301,640 Engineering $452,460 Total $4,013,000 SID Costs: Cost of Improvements $2,019,542 Number of Parcel in District 312 Contribution to Revolving Fund $100,950 City Administration $79,928 Cost of Issuance $54,447 Project Description: Historical Information - In January 1996, the Missoula Valley Water Quality District completed a study of eight high density, unsewered areas to evaluate the need for connection of homes and businesses in the areas to sewage treatment facilities. The study prioritized the areas for connection based on the degree of water quality degradation and potential health risks in each area. This study concluded that: Based on all of the factors considered, the Rattlesnake Valley area represented significant threat to water quality and public health. With 26% of all unsewered units in this one area, the total loading to groundwater is higher than any other area. Most areas do not have adequate ground water flows to support large wells. The only Mountain Water well in the Rattlesnake is shut down (pump removed) due to intermittent contamination with coliform bacteria. There are some private wells in the Rattlesnake which show coliform contamination There were 876 septics in Rattlesnake Valley as of 2002, subsequently some of these properties have been connected. Potential contamination of the aquifer due to unsewered homes and businesses has been a continual problem in the city. In order to bring an end to this chronic concern, increasing the number of properties hooked up to the sewer system is a high priority. The proposed SID 544 project would solve this issue for this neighborhood. Without a long-term financing mechanism with a low interest rate, the residents of the project area would probably be unable to afford sewer connection. Because of the close proximity of the Rattlesnake Creek and Clark Fork River, this area would continue to be a major concern for possible human waste contamination of the aquifer and the river. The Resolution of Intent to create SID 528 passed in 2003. Lawsuits were filed against the project that went through the court system and the final outcome of the last lawsuit was settled in 2009 in favor of the City of Missoula. Between 2003 and 2006, three separate SIDs were ---PAGE BREAK--- K:\PW-projects\SID 544 Rattlesnake Sewer\Data - Resolution of Intention\SID 544 Exhibit D.docx created within the boundaries of the original SID 528. These areas requested sewer from the City of Missoula by petition and SIDs 533, 534 and 536 were created to sewer a portion of the original Subdistrict 3 and the entire Subdistrict 1. The remainder of SID 528 is to be included in the current project which is proposed SID 544. Problem - Growth Management Missoula is growing community with new residents attracted by quality of life. Growth Management Task Force was created in 1994. In 1998 the City and County adopted an update to the Missoula Urban Comprehensive Plan. This plan calls for implementation of regulatory tools, which are designed to provide incentives for development inside the Urban Growth Area and disincentives for development outside of the area. Groundwater Protection The Missoula Valley groundwater supply has been designated as a sole source aquifer. Surface Water Protection The Clark Fork River and its tributaries are key natural resources. However, in recent years river water quality has deteriorated. Proposed Solution - Missoula has completed various sewer projects in Rattlesnake Valley. Missoula is now planning to move forward with installing a gravity sewer system to sewer the remaining developed areas inside the Sewer Service area. Construction anticipated in summer of 2009. The design for the sewer system in this phase provides for installing gravity mains and service connections where appropriate for this project area. This densely populated, primarily middle/upper income area currently has no available sewer service. The proposed project is also designed to safeguard the fragile aquifer by sewering a densely populated area of the City. It is vital that we continue our commitment to protect the Missoula Valley water resources by making sewer service available and connection a priority in the highly developed areas of Missoula. The proposed project is an important component in the process of protecting Missoula's Sole-Source Aquifer and the quality of the Clark Fork and Rattlesnake rivers. The total estimated cost of the Improvements for the remaining unsewered areas from the original SID 528 boundary is $4,013,000. See Construction Cost Estimates. Sources of funds identified for the Improvements are STAG, TSEP, DNRC and SRF grants and a SRF loan to fund the project to a $1,802,000 level. A Special Improvement District Bond in amount of $2,019,000 and City funds of $184,000. The project to complete the remaining area is proposed as SID 544.