4.3. SR 02-17-1998Howard R. Green Company
CONSULTING ENGINEERS
Item 4.3.
CONSULTING ENGINtERS
Formerly MSA
Consulting Engineers
February 11, 1998
File: 802640j-0060
Honorable Mayor and City Council
City of Elk River
13065 Orono Parkway
P. O. Box 490
Elk River, MN 55330-0490
RE: LAKE ORONO SEDIMENT REMOVAL PROJECT
Dear Council Members:
As you are aware, Steve Rohlf has been working for some time on the Lake Orono Sediment
Removal Project. The schedule that was prepared by Mr. Rohlf and presented to the Council,
sometime ago, calls for the Feasibility Study to be authorized on February 17, 1998. The copy
of that schedule is attached. By authorizing the Feasibility Study this early, it allows time for the
project to be bid, assessment hearing held, and a 30 day waiting period for assessment appeals
to be observed prior to awarding the contract. As you are aware, Mr. Rohlf has done a
significant amount of work relative to the amount of sediment to be removed, the disposal site
for this sediment and the estimated cost of the improvement. Therefore, the feasibility study will
be a rather simple document only necessary to initiate the 429 improvement project process.
Attached for the City Council's consideration, is a Resolution that will order the Feasibility Study
for the Lake Orono Sediment Removal project. Because this is a City initiated project, this
Resolution requires a 4/5's vote to be adopted. One thing that will be necessary to complete
this Feasibility Study is the amount the City Council wants to assess each unit.
If you have any questions, I will be in attendance at your February 17, 1998 City Council
meeting.
Sincerely,
Howard R. Green Company
Terry J. maurer, P.E.
TJM/et
Attachments
Otproj~802640\640-1110.feb
612/644-4389
fax
612/644-9446
toll
free
1326 Energy Park Drive · St. Paul, MN 55108 ·
LAKE ORONO IMPROVEMENT PROJECT TIME LINE
January 1998
· Determination of wetlands on disposal sites, with property owner's
permission, by Natural Resources Conservation Service (NRCS).
· January 7 meeting with permitting governmental agencies.
· Preliminary assessment role (equivalency units) by January 15 meeting.
· State Disposal Systems permit (SDS) submitted to the Minnesota
Pollution Control Agency (MPCA) - (180 days).
· Funding from Sherburne County sought.
February
· Protected Waters permit submitted to the Minnesota Department of
Natural Resources (DNR) - (45 days).
· U.S. Army Corps of Engineer (USACE) permit submitted - (60 to 120
days).
· "401 Water Quahty Certification submitted to MPCA - (60-120 days).
· Environmental Assessment Worksheet (EAW) submitted to appropriate
agencies - (approximately 60 days).
· None Point Discharge permit (NPDES) submitted to MPCA- (permit
immediate after submittal).
· Feasibihty Study ordered by the City Council on 2/16/98.
March
· Feasibility received by City Council and Public Hearing ordered on 3/2/98.
April
· Public Hearing held and plans and specifications ordered by City Council
on 4/13/98.
· Special Projects and Challenge Grant applications to repair erosion at
Orono Cemetery submitted.
· DNR Protected Waters permit issued.
May
· Plans and Specifications approved and bids authorized by the City
Council on 5/4/98.
· Bids advertised for 21 days.
· EAW process is completed.
s:Xb&z\steverXlakoagda.doc
June
· USACE permit issued.
· MPCA 401 Water Quality Certification completed.
· Bids presented to City Council and Assessment Hearing ordered on 6/1/98.
· Assessment Hearing Held on 6/29/98 - (30 day appeal period).
July
· MPCA SDS permit issued.
· Special Projects and Challenge Grants awarded.
August
· City Council awards contract on 8/3/98.
Lake is drained early in the month.
· Start construction on 8/17/98.
September
October
· Project completed by 10/31/98.
s:\b&zXstever\lakoagda.doc
RESOLUTION 98 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION OF THE CITY OF ELK RIVER
ORDERING A PRELIMINARY FEASIBILITY REPORT IN THE
MATTER OF THE LAKE ORONO SEDIMENT REMOVAL
IMPROVEMENT OF 1998
WHEREAS
WItEREAS
the City has determined that it should consider improving certain property by
removing sediment buildup from Lake Orono; and
Council must first secure a preliminary feasibility study in order to consider
making the improvement;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River,
Minnesota:
This matter shall be referred to Howard R. Green Company, Consulting
Engineers who is requested to provide to the City Council a report advising, in
a preliminary way, whether the proposed improvement is feasible and whether
the improvement should thus be made as proposed or in connection with some
other improvement and the estimated cost of the improvement as recommended.
Passed and adopted this 17th day of February, 1998.
Henry A. Duitsman, Mayor
ATTEST:
Sandra A. Thackeray, City Clerk
O:\projX230369\369-1112.feb
Cay of
River
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City '~~rator
February 9, 1998
Lake Orono Update
On December 15, 1997, a presentation was made to the City Council regarding
options for a Lake Orono sedimentation improvement project. Based on available
disposal sites and area of land for material, the minimum type of sedimentation
removal project that would be necessary to do any long term good for the river/lake,
and an acceptable range of assessments to benefited property owners, everyone
seemed to agree with the Task Force recommendation of moving forward with a
1998 project that was in the $750,000 range.
At the February 2, 1998, capital improvement meeting, discussion took place on a
Lake Orono improvement project. Questions were raised regarding the overhead
expenses for the project, the total cost of the project, the disposal areas, the
assessment amounts, and the total number of assessment units. Some of the land
owners along the lake will receive more than one assessment unit based on the
amount of frontage which they own and based on whether or not the property can be
subdivided and part of the property sold off for another home site. At this time, it
appears that we will end up with a total of about 186 assessment units. This total
includes 26 assessment units for city property. The 186 total units is less than the
amount shown in Steve Rohlfs memo as we both believe his estimate of 201 will be
reduced after additional analysis.
A $750,000 project will require city participation in addition to any assessments
which the city receives. The city participation or contribution will either increase or
decrease slightly depending on if the overhead is less than 28 percent and if the
project comes in above or below the preliminary estimate. The City Council, at a
later date, can discuss how the city will finance its participation in the project. It is
assumed that whatever units are assessed to the city will be paid back over a five to
seven year assessment schedule. However, a contribution of $200,000 to $400,000
above and beyond the assessments can be funded by the city over time either within
or outside of the levy limit. Nonetheless, all the city participation will come from tax
dollars.
· 441-7425
1.,06~ Orono Parkway P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 Fax: (612)
Below are a number of examples on how the total cost of the project could be split up
between the property owners and the city. Also attached are sample assessment
schedules as prepared by Assistant City Administrator Lori Johnson.
Examples
$750,000 Total Project
160 Property Owner Assessment Units
26 City Owned Land Assessment Units
$2,000/assessable unit
$2,200/assessable unit
$2,350/assessable unit
$2,500/assessable unit
$3,000/assessable unit
186 units @ $2,000 = $372,000
· Property owners share = $320,000
· CityShare = $52,000
Additional city contribution = $378,000
Total city participation (including assessments) = $430,000
Total property owners expense (excluding city) = $320,000
186 units @$2,200 = $409,200
· Property owners share = $352,000
* City share-- $57,200
Additional city contribution = $340,800
Total city participation (including assessments) = $398,000
Total property owners expense (excluding city) = $352,000
186 units @$2,350 = $437,100
· Property owners share = $376,000
· Cityshare = $61,100
Additional city contribution = $312,900
Total city participation (including assessments) = $374,000
Total property owners expense (excluding city) = $376,000
186 units @$2,500 = $465,000
· Property owners share = $400,000
· City share = $65,000
Additional city contribution = $285,000
Total city participation (including assessments) = $350,000
Total property owners expense (excluding city) -- $400,000
186 units @$3,000 = $558,000
· Property owners share = $480,000
* City share = $78,000
Additional city contribution = $192,000
Total city participation (including assessments) -- $270,000
Total property owners expense (excluding city) = $480,000
SAMPLE A
Principal Outstanding:
Interest Rate:
Interest Start Date:
Term:
Payment Year
Year 1
Year2
Year 3
Year4
Year 5
SAMPLE B
Principal Outstanding:
Interest Rate:
Interest Start Date:
Term:
Payment Year
Year 1
Year 2
Year 3
Year4
Year5
SAMPLE C
Principal Outstanding:
Interest Rate:
Interest Start Date:
Term:
Payment Year
Year 1
Year 2
Year 3
Year4
Year 5
SAMPLE D
Principal Outstanding:
Interest Rate:
Interest Start Date:
Term:
Payment Year
LAKE ORONO
SAMPLE ASSESSMENT SCHEDULE
$2,000.00
7.00%
Jan. 1
5
Payment Pdncipal
540.00 400.00
512.00 400.00
484.00 400.00
456.00 400.00
428.00 400.00
Principal
Interest Outstanding
$2,000.00
140.00 %600.00
112.00 1,200.00
84.00 800.00
56.00 400.00
28.00
$2,420.00 $2.000.00 $420.00
$2,200.00
7.00%
Jan. 1
5
Payment Pdn~pal Interest Outstanding
$2,200.00
594.00 440.00 154.00 1,760.00
563.00 440.00 123.00 1,32000
532.00 440.00 92.00 880.00
502.00 440.00 62.00 440.00
471.00 440.00 31.00
$2,662.00 $2,200.00 $462.00
$2,350.00
7,00%
Jan. 1
5
Pnndpal
Payment Pdn~pal Interest Outstanding
$2,350.00
635.00 470.00 165.00 1,880.00
602.00 470.00 132.00 1,410.00
569.00 470.00 99.00 940.00
536.00 470.00 66.00 470.00
503.00 470.00 33.00
$2,845.00 $2,350.00 $495.00
$2,500.00
7.00%
Jan. 1
5
Pnncipal
Payment Pdndpal Interest O~standing
$2,500.00
Year 1 675.00 500.00 175.00 2,000.00
Year2 640.00 500.00 140.00 1,500.00
Year 3 605.00 500.00 105.00 1,000.00
Year 4 570.00 500.00 70.00 500.00
Year 5 535.00 500.00 35.00
$3,025.00 $2,500.00 $525.00
SAMPLE E
Principal Outstanding:
Interest Rate:
Interest Start Date:
Term:
PaymentYear
$3,000.00
7.00%
Jan. 1
7
Payment Principal
Year 1 638.57 428.57
Year 2 608.57 428.57
Year 3 578.57 428.57
Year 4 548.57 428.57
Year 5 518.57 428.57
Year 6 488.57 428.57
Year 7 458.57 428.57
Pdncipal
Interest Outstanding
$3.000.00
210,00 2,571.43
180,00 2.142.86
15000 1,714.29
120.00 1,285.71
90.00 857.14
60.00 428.57
30.00
$3,840.00 $3,000.00 $840.00
c..y of
MEMORANDUM
iver To:
FROM:
MAYOR AND CITY COUNCIL
STEPHEN ROHLF, BUILDING
ZONING ADMINISTRATOR
DATE: FEBRUARY 9, 1998 ..~
SUBJECT: LAKE ORONO PROJECT
Staff is proposing the assessable area for the Lake Orono project includes the shoreland
from the dam as for up fiver as sediment is removed. The assessment role still needs
adjustment, but the area described includes property under approximately 117 different
ownerships that equal 201 equivalency units.
The vast majority of the owners (102) are proposed to be assessed as one unit. The
breakdown of units per owner is as follows:
Owners # of units
102 ~ 1
7 @ 2
6 (between 4 & 10 units each) 39
1 @ 20
1 ~ 26
117 201
Guardian Angels is proposed at 20 equivalency units and the city is the owner with 26.
Included in this packet is a memo from Pat Klaers with a recommendation on how the
city's units should be treated.
The numbers above are preliminary. It is estimated that approximately 20 of the 201
equivalency units need to be reviewed closer.
The estimated cost of the recommended project is $750,000. Overhead was figured into
this price at 28%, the same as an urban service project. The plans required for this project
will not need to be as detailed as an urban service project and it will require less survey
stacking and inspection.
The 28% was used to add a cushion. The bids for the project may come in higher than
the estimates the city received. If the overhead is less than what was estimated, the city
contribution will be less.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 ° TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425