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2.3 ERMUSR 04-11-2017 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Eric Volk—Water Superintendent MEETING DATE: AGENDA ITEM NUMBER: April 11, 2017 2.3 SUBJECT: Agency Relocation Agreement—State of Minnesota ACTION REQUESTED: Adopt resolution authorizing ERMU to enter into an agency agreement with the State of Minnesota BACKGROUND: In response to MnDOT replacing the Highway 10 Bridge over the Elk River,we are relocating our water main that passes within 11' of the bridge. We will be relocating the water main outside of the Minnesota Department of Transportation (MnDOT) right-of-way(ROW). The construction of the new water main will be bid and completed as part of the MnDot project. DISCUSSION: In order to be part of MnDOT's contract, we must enter into an agreement with the agency. They will coordinate the installation of the water main in 2018. FINANCIAL IMPACT: The financial impact will be included in the 2018 budget. Preliminary numbers put the project at $362,961.00,this includes the construction costs and MnDOT's cost for administering the project. ATTACHMENTS: • 17-2 Resolution—Authorizing ERMU to enter into an Agency Relocation Agreement with the State of Minnesota • Agency Relocation Agreement MN Department of Transportation Page 1 of 1 45 RESOLUTION NO. 17-2 BOARD OF COMMISSIONERS ELK RIVER MUNICIPAL UTILITIES A RESOLUTION AUTHORIZING THE ELK RIVER MUNICIPAL UTILITIES TO ENTER INTO AN AGENCY RELOCATION AGREEMENT WITH THE STATE OF MINNESOTA WHEREAS, the Minnesota Department of Transportation (MnDOT) plans to let a contract to construct State Project Number 7102-127 (Project) on Trunk Highway Number 10. The Project is located on Trunk Highway 10 on Bridge #5955 and Bridge #71005 over the Elk River (Lake Orono) and from Joplin Street to Xenia Avenue in Elk River; and WHEREAS, Elk River Municipal Utilities (ERMU) owns and operates water mains, their fixtures, and related equipment (Facilities) that are located on property where MnDOT will construct the Project; and WHEREAS,the Project will require the relocation and adjustment of ERMU's Facilities. If ERMU relocated the Facilities or let a separate contract to relocate them that relocation work would interfere with the Project. ERMU has requested that MnDOT perform the relocation work as part of the Project. Including ERMU's relocation work in the State's Construction contract may eliminate duplication of services, facilitate activity coordination, simplify supervision, and expedite Project construction; and WHEREAS, pursuant to Minnesota Statutes, section 161.46, subdivision 5, ERMU appoints MnDOT as its agent to design and construct the relocation work as part of the Project and MnDOT may relocate the Facilities as part of the Project on the trunk highway system; and WHEREAS, state law requires a written agreement between MnDOT and ERMU that describes their separate responsibilities. NOW, THEREFORE, BE IT RESOLVED that Agency Relocation Agreement Number 1027572 between the State of Minnesota, acting through its Commission of Transportation, and ERMU, is hereby approved and the ERMU Chair and General Manager are authorized to execute the Agreement on behalf of ERMU. This Resolution Passed and Adopted by the Board of Elk River Municipal Utilities this 1 1th day of April, 2017. John J. Dietz, Chair Troy Adams, P.E., General Manager 46 Prepared by the S.P. 7102-127 (T.H. 10) Utility Agreements and Permits Unit Location: On Trunk Highway 10 on Bridge (Receivable) #5955 and Bridge#71005 over the Elk River ($362,961.00) (Lake Orono) and from Joplin Street to Xenia Avenue in Elk River Utility Owner: Elk River Municipal Utilities MnDOT Agreement Number 1027572 AGENCY RELOCATION AGREEMENT This Agreement Number 1027572 (Agreement) is between the State of Minnesota (State), acting through its Commissioner of Transportation and Elk River Municipal Utilities, including its agents, contractors, and subcontractors (Utility Owner). This Agreement outlines the separate responsibilities of the State and the Utility Owner as part of a construction project. RECITALS The State plans to let a contract to construct State Project Number 7102-127 (Project) on Trunk Highway Number 10. The Project is located on Trunk Highway 10 on Bridge#5955 and Bridge #71005 over the Elk River (Lake Orono) and from Joplin Street to Xenia Avenue in Elk River. The Utility Owner owns and operates water mains, their fixtures, and related equipment (Facilities) that are located on property where the State will construct the Project. The Project will require the relocation and adjustment of the Utility Owner's Facilities. If the Utility Owner relocated the Facilities or let a separate contract to relocate them, that relocation work would interfere with the Project. The Utility Owner has requested that the State perform the relocation work as part of the Project. Including the Utility Owner's relocation work in the State's Construction contract may eliminate duplication of services, facilitate activity coordination, simplify supervision, and expedite Project construction. Pursuant to Minnesota Statutes, section 161.46, subdivision 5, the Utility Owner appoints the State as its agent to design and construct the relocation work as part of the Project and the State may relocate the Facilities as part of the Project on the trunk highway system. State law requires a written agreement between the State and the Utility Owner that describes their separate responsibilities. Page 1 of 8 47 S.P.7102-127(T.H. 10) MnDOT Agreement Number 1027572 AGREEMENT Term/Termination A. Effective Date: This Agreement is effective on the date the State obtains all signatures required by Minnesota Statutes, section 16C.05, subdivision 2. B. Commencement of Work: Upon notice of Agreement approval, the Utility Owner must promptly provide the State (and the State's Contractor (Contractor)) with any information necessary to commence and successfully prosecute the utility work according to the terms of the Notice and Order and a work schedule the State's Project Engineer (Project Engineer) approves. C. Expiration Date: This Agreement will expire on the date that all obligations, excluding the Utility Owner's ongoing maintenance obligations, have been satisfactorily fulfilled. D. Termination by the State: The State may terminate this Agreement at any time, with or without cause, on 30 calendar days' written notice to the Utility Owner. Upon termination, the State will be entitled to payment, on a pro rata basis, for satisfactorily performed services. The termination of this Agreement does not relieve the Utility Owner of its obligations under the Notice and Order. E. Survival of Terms: The following articles survive this Agreement's expiration or termination: (Ill) Utility Owner's Ongoing Maintenance Requirements; (V) Indemnification; and (VII) Governing Terms. II. Description of Work Procedures A. Plans: The Utility Owner will provide relocation plans. These plans, which are attached to this Agreement as Exhibit A, indicate the present and proposed locations of the Facilities. 1. If any changes to the plans or character of the work become necessary, the State.and the Utility Owner must agree to the changes before the State makes (or directs the Contractor to make) them. If these changes require an amendment or supplement to this Agreement, the parties will negotiate such amendment or supplement in good faith, and the State is not obligated to commence such changes until such amendment or supplement is fully executed. The State will enter into such supplemental agreements with its Contractor as the State deems necessary to implement such changes. Page2of8 48 S.P.7102-127(T.H. 10) MnDOT Agreement Number 1027572 2. The Utility Owner authorizes the Project Engineer to make any minor field changes and adjustments to the plans, specifications, and special provisions as the State deems necessary for efficient Project construction. The Utility Owner authorizes the State, on its behalf, to enter into supplemental agreements with the Contractor as necessary to implement these changes. B. State's Responsibilities 1. The State will: a. Advertise the Project for bids; and b. Award a construction contract for the Project. This Project will include the relocation work. 2. The Project Engineer will supervise and direct the Project, including the relocation work, but the Utility Owner may inspect the work periodically. If the Utility Owner finds that any completed relocation work is defective, it must inform the Project Engineer of these defects in writing; however, any recommendations the Utility Owner makes are not binding to the State. The State has the exclusive right to determine whether the Contractor has performed the work according to the plans, specifications, and special provisions. 3. The Project Engineer and the Utility Owner will perform a final inspection of the work. Once the State has accepted the relocation work, the Project Engineer will inform the Utility Owner in writing, and the Utility Owner will assume ownership of the Facilities. C. Deletion of Work: If the Utility Owner decides to delete the relocation work from the Project, the Utility Owner will: 1. Be subject to the Notice and Order and remove and/or relocate the Facilities; and 2. Defend (at its own expense and to the extent Minnesota's Attorney General permits) indemnify, save, and hold the State and all of its agents and employees harmless of and from all claims, demands, actions, or causes of action that deleting the relocation work causes. This obligation to indemnify extends to any attorney's fees. D. Risk: Risk of loss of partial or complete relocation work will be on the Contractor or the Utility Owner as the current Standard Specifications for Construction set forth. Page 3 of 8 49 S.P.7102-127(T.H. 10) MnDOT Agreement Number 1027572 III. Utility Owner's Ongoing Maintenance Requirements A. No more than 90 calendar days after receiving as-built plans for the relocation from the State, the Utility Owner must submit one copy of the State's Application for Utility Accommodation on Trunk Highway Right of Way, Form 2525 (Permit), including two copies of"as-built" sketches, for all Facilities within the State's trunk highway right of way to the Utilities Engineer. B. Once construction is complete, the Utility Owner must maintain the Facilities at its own expense. The Utility Owner must follow the terms of the Permit when it performs any maintenance work. C. The Utility Owner may open and disturb the trunk highway right of way without a permit in the case of an emergency that is dangerous to the public and requires immediate attention. Upon learning of the emergency, the Utility Owner must immediately notify the State Patrol. The Utility Owner must take all necessary and reasonable safety measures to protect the public and must cooperate fully with the State Patrol. In this event, the Utility Owner must request a permit from the proper authority no later than the working day after it begins working in the right of way. IV. Payment A. The State will determine the cost of the relocation on a contract-unit-price basis. The Utility Owner authorizes the State to pay the Contractor directly for the relocation work. As Exhibit B shows, the estimated cost of the Utility Owner's relocation work is $362,961.00. B. The Utility Owner agrees to pay the State the total cost it incurs to relocate the Facilities. The total cost will include: 1. The construction cost, which consists of all of the Contractor's bid item costs to satisfactorily relocate the Facilities according to the plans, specifications, and special provisions; and 2. The construction engineering cost, which is equal to 8 percent of the construction cost. C. After acceptance of the bids, the State will notify the Utility Owner of the total cost by providing a written cost schedule. Page 4 of 8 50 S.P.7102-127(T.H. 10) MnDOT Agreement Number 1027572 1. The Utility Owner must accept or reject the total cost no more than 10 calendar days after receiving the cost schedule. If the Utility Owner does not provide this notification after 10 days, the State will consider the lack of response to be the Utility Owner's acceptance of the total cost and the State will proceed with the work. 2. If the Utility Owner chooses to delete its work from the State's contract, it will be obligated to remove or relocate its Facilities according to the terms of the Notice and Order. D. The State will issue the Utility Owner an invoice for the amount specified in the cost schedule. Pursuant to Minnesota Statutes, section 161.46, subdivision 5, the Utility Owner will promptly reimburse the State for the relocation costs. E. After the Contractor has completed the work required under its contract and the State has accepted the work, the State will prepare a final computation of the amount due from the Utility Owner. 1. If the final total amount is greater than the amount the State has already received from the Utility Owner, the Utility Owner must promptly pay the difference, without interest, to the State. 2. If the final total amount is less than the amount the State has already received from the Utility Owner, the State must pay the difference, without interest, to the Utility Owner. F. The final total cost constitutes payment in full for all relocation work according to this Agreement. This amount also constitutes payment in full for any and all damages, claims, or causes of action of any kind or nature that the Utility Owner may have relating to the relocation of the Facilities. V. Indemnification A. The Utility Owner will defend (at its own expense and to the extent Minnesota's Attorney General allows), indemnify, save, and hold the State and all of its agents and employees harmless of and from all claims, demands, actions, or causes of action arising from the Utility Owner's acts and omissions and from the State's (and its Contractor's) use of plans, designs, shop drawings, specifications, and special provisions prepared, reviewed, or approved by the Utility Owner. This indemnity obligation extends to any attorney's fees the State incurs in seeking to enforce this obligation, and in defending against any claims covered by this indemnity clause. Page5of8 51 S.P.7102-127(T.H. 10) MnDOT Agreement Number 1027572 B. The Utility Owner does not waive any defense or immunity of third parties. The Utility Owner, in defending any action on behalf of the State, will be entitled to assert every defense or immunity that the State could assert on its own behalf. VI. Nondiscrimination Minnesota Statutes, section 181.59 and any applicable local ordinances pertaining to civil rights and nondiscrimination are considered part of this Agreement. VII. Governing Terms A. Data Practices: All parties must comply with the Minnesota Government Data Practices Act (Minnesota Statutes, chapter 13) as it applies to any data that a party to this Agreement receives, collects, stores, or disseminates under it. The Act provides civil liability for failure to comply with its requirements. B. Applicable Law: Minnesota law governs the validity, interpretation, and enforcement of this Agreement. Venue for all legal proceedings arising out of this Agreement or its breach must be in Ramsey County, Minnesota. C. Waiver: If a party fails to enforce any provision of this Agreement, that failure does not waive the provision or the party's right to subsequently enforce the provision or any subsequent breach of that provision. D. Merger: This Agreement contains all negotiations and agreements between the State and the Utility Owner with respect to the subject matter it contains. No prior understanding regarding this Agreement, whether written or oral, may be used to bind either party. E. Assignment: The Utility Owner may neither assign nor transfer any rights or obligations under this Agreement without the State's consent and a fully executed assignment agreement. To be valid, the assignment agreement must be signed and approved by the same parties who signed and approved this Agreement, or their successors in office. F. Amendments: Any amendment to this Agreement must be in writing. An amendment will not be effective until the same parties who signed and approved this Agreement, or their successors in office, sign and approve the amendment. G. Incorporation of Exhibits: All exhibits attached to this Agreement are incorporated into this Agreement. Page 6 of 8 52 S.P. 7102-127(T.H. 10) MnDOT Agreement Number 1027572 County: Sherburne Utility Owner: Elk River Municipal Utilities IN TESTIMONY WHEREOF, the Utility Owner has caused these presents to be executed by , its , and the State has caused these presents to be executed by its duly authorized officers. Elk River Municipal Utilities By: Its: Date: Page 7 of 8 53 S.P.7102-127(T.H. 10) MnDOT Agreement Number 1027572 County: Sherburne Utility Owner: Elk River Municipal Utilities STATE OF MINNESOTA DEPARTMENT OF TRANSPORTATION Department of Transportation Recommended for Approval: Approved: By: By: District Engineer Director, Office of Land Management Date: Date: Office of Contract Management Approved as to Form and Execution: By: Date: Department of Administration By: Date: Page 8 of 8 54 I I 1 7/ g .' 1,1 x r F rJ I( /` O K (///1/1 1.0 W WZi 0 cc Q W O L I t'}al W m o �A a ? /, ...v a I-, cud �R Y± _ gA ^_3i I {{ 4 \ , 7{— I (77:X i I ,, . O� 1 �M �3 8 '.c< \ =Q�\ _ � ZO I \ i• l$ J LO F 0ZW LJ '54 W X(n r $ e. X Q W ,i8 `a ___ A ' I 03 ~~ 5 I--WI J_ r If O z \\ i 3 / ,\ z O \ Jj -`t J J O; F O Ln 0 11f9 of 11n O. 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