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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Debbie Arkell, Director of Public Services
Chris Kukulski, City Manager
SUBJECT: Authorize City Manager to Sign Agreement and Promise to Pay between
City of Bozeman and Richard and Kathy Wiersema, dba Executive Auto
Detai 1
MEETING DATE: June 5, 2006 Consent Agenda
BACKGROUND: The Auto Plaza Subdivision, located at the northwest corner of Huffine
Lane and Cottonwood Road, was platted and developed in the early 1990s. A condition of
approval of the subdivision was that the private water and sewer systems had to be designed so
that they could be readily connected to city services, once those services were available. The
property annexed in 1997, as part of the Valley West Annexation. Three developed properties
within the subdivision, including property owned by Richard and Kathy Wiersema, dba
Executive Auto Detail, located at 195 Competition Drive, have been served by municipal water
since at least 2001. at no connection cost, impact fee, or monthly water usage costs. This was
discovered when the properties within the Auto Plaza Subdivision inquired about connecting to
municipal sewer, as it is now adjacent to their properties. Research found that in 2001, a now
deceased city employee began working exclusively with engineers representing Joe Billion, the
developer of the Auto Plaza Subdivision, to connect the properties to municipal water, but there
are few records of what transpired at that time. What is known, is the properties were connected
to city water, but never paid any connection, impact, or water usage fees, and that water meters
and backflow prevention devices were never installed.
Upon this discovery, the property owners were advised that they must apply for water service,
pay applicable impact fees, pay for the installation of water meters, install backflow protection
devises, and pay past water usage charges. However, because the City accepts partial
responsibility for the fact the properties were connected to municipal water without proper
permits, the past due water usage charges were waived, and the properties have been paying a
flat rate water charge since May 1, 2006. It was also determined that the water impact fee due
will be the amount required in 2001, rather than today's rates.
Commission Memorandum
Wiersema/Executive Auto Detail Agreement
June 5, 2006 Consent Agenda
Page 2
Executive Auto Detail is a small, sole proprietor run business. The cost of having a licensed
plumber install the required meter and backflow protection device, coupled with paying the
impact and meter fee, caused a financial hardship on the owners. Again in recognition of the
City's partial responsibility of this oversight, we have entered into an Agreement with the
Wiersemas to allow them to pay the water impact fee and water meter cost on a monthly
payment plan over a period of 24 months. Their payment will be added to their monthly water
and sewer bill.
RECOMMENDATION: The Commission authorize the City Manager to sign the Agreement
and Promise to Pay between the City of Bozeman and Richard and Kathy Wiersema, dba
Executive Auto Detail.
FISCAL EFFECTS: The City will receive past-due impact and meter fees, without causing
undue financial hardship to the business owner.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
0
CQYL�- A
Debr F. Arkell, Director of Pu lic Services Chris A. Kukulski, City Manager
Attachments: Agreement and Promise to Pay
Report compiled on May 30, 2006
Cc: Richard &Kathy VlWiersema, 195 Competition Drive
Laurae Clark, City Treasurer
Chris Saunders, Assistant Planning Director