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9.1 SR 10-18-2021 Request for Action To Item Number Mayor and City Council 9.1 Agenda Section Meeting Date Prepared by Work Session October 18, 2021 Cal Portner, City Administrator Item Description Reviewed by Rolling Hills HOA SSTS Reviewed by Action Requested Receive information and provide direction. Background/Discussion The Rolling Hills Homeowners Association (HOA) currently has a community Subsurface Sewage Treatment System serving the 28 properties in the association. The HOA is exploring opportunities to resolve their system, which is nearing failure. They are outside of the Municipal Services Area and connecting to city sanitary sewer services is estimated at roughly $93,0000 per home. The HOA would like to address the council with their concerns. Financial Impact N/A Mission/Policy/Goal City Mission Attachments  Rolling Hills SSTS City Hook Up Project  2020 Rolling Hills UMN Memo  UMN Rolling Hills Over-Excavation Memo The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: August 2020 Situation: The Subsurface Septic Treatment System (SSTS) for Rolling Hills RH SSTS Permit: (RH) is failing and an option to resolve the failure needs to be No original permit found for an implemented. The homeowners are faced with an incredibly challenging SSTS install or SSTS operating situation that is both resource extensive and has a significant financial permit from the MPCA or by the burden. city. th Design Changes: Nov 8, 2000, Background: request for revision by the City of th June 19, 2000: Elk River City Council approved a 29-lot single Elk River change design from family residential plat called Rolling Hills. 10,000 gal/day to 13,000 gal/day o Wetland Conservation Act Decision, Rolling Hills, Case No. MPCA permit for the cluster, but WCA 00-2 not the design, installation of the o 38 acres of non-developable land allocated to RH (Back SSTS. 40) June 2020 RH initiated an In 2000: RH SSTS was installed on a site that was not feasible. operating permit through the City January 2020 - June 2020: RH had several septic inspections and of Elk River. repairs due to surfacing effluent. o Inspections concluded system was failing and overworked RH SSTS Soil Assessments: for many years. Initial soil testing in 2000 conflicts o Inspections concluded some residential repairs would be current assessments done Fall needed for managing I&I 2020. October 2020: Soil and Site Feasibility tests were conducted and o Fall 2020 Several subject repairs for RH SSTS current system would not be feasible. matter & environmental experts assessed and November 2020 May 2021: RH received consultations on new concluded the current design options from: Steinbrecher, LLC & Bolton & Menk. site was and is not June 2021: Due to the overwhelming costs for a new SSTS design suitable for SSTS. I.E. See option, RH Board and Septic Committee consulted with two soil assessment from Sara Attorneys. Heger, PhD and Dan o A construction attorney and HOA attorney both Wheeler (U of M). concluding we are past the statute of limitations for any legal action on the current design and installation of our RH SSTS New Design Options & SSTS. Estimated Costs June 2020: RH HOA concluded the city hook up was the best Steinbrecher, LLC: New SSTS in option for long term sustainability, but major concerns with the Back 40 financial burden. Bolton & Menk: Њ͵ City Hook Up (effluent o RH HOA Preliminary vote June 2021: 26 of the 28 homes only) Ћ͵Џ ƒźƌƌźƚƓ ε responded ƚƓŭƚźƓŭ ĭźƷǤ ƒƚƓƷŷƌǤ 21 indicated the city connection is our best option ƭĻƩǝźĭĻ ĭŷğƩŭĻ 16 of the 21 indicated the city connection 2. Back 40 SSTS Њ͵Б ƒźƌƌźƚƓ is a significant financial burden and would ǞźƷŷ ƚƓŭƚźƓŭ operating need other means to defray the project costs costs. Ќ͵ Surface Discharge Ѝ 5 did not agree with the city hook up and ƒźƌƌźƚƓ ǞźƷŷ ƚƓŭƚźƓŭ indicated the financial burden would be too ƚƦĻƩğƷźƓŭ ĭƚƭƷƭ severe Current: RH Board & Septic Committee continues to evaluate how to fund the project. RH HOA Considerations RH SSTS Funding Options RH SSTS was installed in a location that was feasible, RH HOA applied for $2.0M state o If it were a feasible site, the HOA SSTS would be planning a bonding funds, which is pending repair project rather than full replacement option. decision RH is a small community with only 28 homeowners to share the RH HOA is investigating selling the expense. Back 40-acres Current proposal does not afford additional homeowners along the o 20 acres to B&B Sod line to connect into the line to share in the costs. ~$200,000 market value Concern for future assessment when/if line is upgraded to allow o 40 Acres is not ideal for additional connections. development City sewer connection Is effluent only o City Ordinance and HOA o Unlike other communities connected to city sewer, RH HOA Covenants would need to members will continue to have maintenance/repair be amended responsibilities and associated costs to the common interest RH HOA submitted a request to the MN Conservation Legacy compon department to see if the back 40 city connection station) and maintenance/repairs to their would be eligible for their individual septic components. program. Despite effluent only, SAC fee per homeowner remains assessed as RH HOA may be able to sell 3-4 part of the project. lots at the current SSTS site but will be years post project and full Funding Mitigation Considerations decommission of drain field RH HOA has researched and City to support the new Urban Development Expansion project to reached out to several resources initiate to County Road 33 to allow RH HOA to connect to this rd to evaluate other Grant options location rather than 193. ** understanding that the Urban with no options found to date. Development Expansion project is a projected project, but RH HOA discussed with the City anticipation for development in the next 10 years for the city to the American Rescue Plan Act of recoup the costs for the trunk line to be initiated for the RH HOA City 2021 has provided $2.6M in Hook up. funding to be used for eligible SAC & Trunk Sewer Fee waived for the RH HOA City Hook - $197k expenses, at the discretion of the Assessment interest fee waived city. Other considerations? U NIVERSITY OF M INNESOTA Room 173 McNeal Hall Onsite Sewage Treatment Program 1985 Buford Avenue Water Resources Center St. Paul, MN 55108 University of Minnesota Extension Service 800-322-8642 Fax: 612-624-6434 septic.umn.edu To:RollingHillsHomeownerAssociation From:Dr.SaraHeger Date:11/10/20 RE:Replacementsepticsystem TheOnsiteSewageTreatmentProgram(OSTP)isservingasaresourceforRollingHillsIƚƒĻƚǞƓĻƩ͸ƭ Association(RHHA)helpingtheAssociationdesignandoverseeinstallationofanewsubsurface sewagetreatmentsystem(SSTS).Ontwooccasions,ourstaff,includingasoilscientistandan engineer,havemetonsitetoevaluatethesoilandsiteconditionsatvariouslocationsownedbythe RHHAwiththehireddesigner/consultant.Belowisasummaryofthetwovisits: 1. OnSeptember23,2020,thefocuswasonthealternativeareanearthecurrentdrainfield area.Thesoilsinthisareawould ƓƚƷ allowforTypeIsoiltreatmentduetoshallow periodicallysaturatedsoilconditions,soilcompactionandimpactsfromtheexisting drainfield.ThesesoilevaluationsalsoindicatedthatthecurrentsystemisͻCğźƌźƓŭtoProtect DƩƚǒƓķǞğƷĻƩͼaccordingtoMinnesotaRulesChapter7080.Thelocationofthecurrent systemintotheseperiodicallysaturatedsoilconditionsislikelyoneofthereasonsithas beenproblematic.Thisdrainfieldareaalsorequiresa200footsetbacktoanydrinkingwater well,duetothedailywastewaterflowvolumewithintheSSTS.Anotherpotentialareainthe woodedhillslopewaslookedatbutnotfullyevaluatedatthistimeduetoonlyslightly bettersoilconditions,limitedarea,andproximitytothepropertyline.OSTPrecommends thattheconsultantdetermineifthenewsystemwouldfitintheexistingdrainfield, consideringthepotentialforgroundwatermounding(anelevatedwaterlevelduetothe additionsofwastewater).Thelimitedsystemlayoutoptionsandthecorresponding moundingevaluationindicatedthatthissiteishighriskforsurfacingofeffluentand thereforeotherlocationsshouldbeconsidered.Thesoilfromthisareacannotsimplybe removedandreplacedtosolvetheproblems.Therearemanyfeetofclay,compactedsoils andwetlandsoilscoveringtheentireareaandthisdoesnotimprovetheperiodically saturatedsoilelevation.Inaddition,theğƩĻğ͸ƭflattopographyandsurroundingsoil conditionswillexacerbatewetnessatthissiteΑevenifthesoilwasreplaced.Thesystemis currentlydischargingapproximately9,000gpdthatmustbesafelyreturnedtothe environmentwithpropertreatmentandremainbelowthegroundsurface. 2.OnOctober28,2020,thefocusofoursitevisitwasontheopenprairiearea.Thesoilsinthis area Ǟźƌƌ allowforaTypeIsoiltreatmentsystem.Agroundwatermoundingevaluationwill beneeded,butitisunlikelythattheresultsofthisevaluationwillbeproblematic.OSTP recommendsthisareaforthenewsystemasthemostcosteffectivewaytobothdeliver wastewatertothesiteandtreatittothespecificationsofMNRulesChapter7081.Building inthisareacanavoidimpactstowetlandsandtheareacancontinuetobeusedfor recreation,althoughsnowmobileandATVtrafficwillhavetostayoffthesepticsystem.The Associationshouldconsiderafenceorothermeansofprotectionforthesystemarea.The MPCArequiresapretreatmentsystemthatisanitrogenbestmanagementpracticedueto thepredominantlysandysoils.Acoupleofbenefitsofusingapretreatmentsystemisthe soiltreatmentareawillhaveincreasedlongevityaslongasthepretreatmentsystemis properlymaintainedbecausewastewaterwillbecleanergoingintothesoilandthesoil meetsecondary treatmentareamaybeloadedatahigherratesincethewastewaterwill treatmentstandards. TheotherissuethatneedsattentionbytheRHHAaretherecordedflows.Forthenumberofhomes inthecommunitytheflowsare~30%higherthanistobeexpected.Therearetwocommonsources forexcesswaterinwastewatertreatmentsystems: (1) sumppumps,watertreatmentdevicesandothercleanwatersourcesconnectedto thesystemand/or (2) leakyseptictanksandpiping Itisrecommendedthatthisissueberesolvedpriortoreplacingthesystemasitis ĭƩźƷźĭğƌ thatthe systemnotbereceivingandtreatingtheseothersourcesofwater.Thisevaluationcanbeconducted bythehiredSSTSlicenseddesigner/inspectororanotherlicensedSSTSinspector.Itwillrequire accesstoeachŷƚƒĻ͸ƭbasementandseptictank/pumpsystem. Over Excavation (aka soil correction) at Rolling Hills’ Existing Soil Treatment Area Dan Wheeler – UM Soil Scientist Knowns: 1. The native and natural soils across the entire mowed grass area are drumlin-like in their characteristics. This means that they naturally perch water (have saturated soil conditions) seasonally within 12” of the soil surface. Underlying these unsuitable wet soil conditions is many feet of densely compacted glacial deposit of varying textures including clay and clay loams as verified during earlier fall 2020 soil pits dug and described. These soils do not allow for water movement, which is why there is saturation evident in the overlying soils. These very similar soils were observed in their more natural state on the north side of the Rolling Hills property just north of the trail off of Cleveland Avenue. 2. The soils across this entire mowed grass area have been compromised by previous activities on this site. a. There are severely compacted soils from agricultural and/or construction activities. b. There are areas closer to Jarvis Street that have the presence of fill in wetland areas as verified during earlier fall 2020 soil pits dug and described. c. Existing wastewater does not infiltrate/move vertically into and through these soils and has likely plugged any voids with solids. 3. Clearly, the status of the soil resource in the entire mowed area is problematic. Solutions: 1. Removal and correction of the problem soil. a. This effort will remove some compacted and/or clayey soil. b. Any replacement soil would have to be able to withstand placement with minimal compaction – MN Rule Chapter 7080 specifications limit this to clean sand. c. This effort will not remove or change the fact that water is moving in the landscape. Digging a large hole in relatively impermeable materials and filling it full of different material creates a bathtub in the landscape. Water will not be able to move into the surrounding unexcavated soils so will fill the new area with water. In addition, the filled wetlands are still wet as was evidenced by gley soil conditions (permanent saturated conditions) during our earlier fall 2020 soil pit in this area and will add to the water in this area. 2. Underdrains to lower and/or drain water (in addition to soil removal/correction). a. MPCA has considered any artificial drainage within the area of a wastewater soil treatment area to require a surface discharge permit known as a National Pollution Discharge Elimination (NPDES). This moves the project into another permitting group with the MPCA and would require additional design, monitoring, reporting, etc. along with larger permitting fees. This is considered a tall hurdle by many and is one way the MPCA discourages such a solution (see attached MPCA factsheet). b. In addition, saturated soil elevation does not necessarily lower with an underdrain. Underdrains provide an easier outlet for the water. Additional work would be required to verify. A drainage maintenance agreement would also be required. c. The elevation of the periodically saturated soil will remain the same on the site for the design of a new system. There will not be any credit given to any fill material that is at or below the original soil surface as the surrounding soils remain and possess this limiting soil condition. This means mounds would still be required to be constructed similar to earlier discussions, layouts, etc. 3. Find a natural soil condition that is favorable for treatment and acceptance of wastewater. a. Allows for the use of established 7080/7081 design practices. b. Provides a greater certainty of long-term performance and life span. c. There will be a simplified permitting process Rolling Hills City Council 10.17.21 SSTS RH HOA Board and Project CommitteeHOA Septic RH –Alicia Thunell CommitteeHOA Septic RH –Tyler Erickson HOA Treasurer RH –Darin Thom HOA Vice PresidentRH -Dawn Doll RH HOA President-Megan Hanson Committee Update RH Neighborhood Preliminary Votesevereindicated the financial burden would be too did not agree with the city hook up and 5•other means to defray the project costs.a significant financial burden and would need indicated the city connection is 16 of the 21 •optionindicated the city connection is our best 21•homes responded28 RH HOA Preliminary vote June 2021: •project will entailOverwhelming input of the financial risk this •MeetingCity Council from last RH Considerations with City assessed as part of the projectDespite effluent only, SAC fees per homeowner remains 3.components. maintenance/repair to the common interest Effluent only: RH HOA Members will continue to have 2.costsalong the line to connect into the line to share the Current proposal does not afford additional homeowners •upgraded to allow for additional connections. Concern for future assessments when/if the line is 1.Hook Up RH Financial Burden bankruptcies of the homeowners.and foreclosures,abandonment,forrisk Significant•financial needs vs. assessment).choose paying for college & other major Generational impact (forcing families to • RH SSTS Funding Options be amendedCity Ordinance and HOA Covenants would need to-**For any of the Property options field.decommission of the drain and require fullbe several years post replacement project would 4 lots at the current SSTS site: -3Not Ideal for development–Sell Back 40Market ValueSell 20 acres to B&B Sod Farm ~$200,000 5. RH HOA Property: datereached out to several with no options to RH HOA researched and Other Grants: 4.be eligibleSubmitted a request to see if the Back 40 would RH HOA MN Conservation Legacy: 3.RiverAllocated through the City of Elk Funds: American Rescue Plan Program 2.the funds appropriately.the city can allocate we get the MN state bond,other mechanisms to offset the project costs. If forward, we need to assess move this projectapproval and there is a need to legislatureAs this is subject to MN State Bond: 1. What to share the expense. homeowners 28 RH is a small community with only 2.~$500KestimatedThe HOA was prepared to fund this project in 2020, Initial repair/rebuild option is not viable for RH. –not feasible. RH SSTS was installed in a location that was 1.Differentmakes RH Project Cost Mitigation Considerations Other considerations??4.overall project cost equal to the repair costs. Due to the small size of Rolling Hills and site is not feasible for repair, capping the •Project Cost Cap: 3.Allow 0% interest on funds allocated to project and assessed to homeowners.•$197k-City Hook With only effluent service, waive SAC & Trunk Sewer Fee waived for the RH HOA •Assessment Fees and Interest2.recoup the costs of the trunk line to be initiated for the RH HOA Anticipated development in the next 10 years, which would afford the city to which may allow RH HOA a viable connection with anticipated reduced costs. •Urban Development Expansion project to County Road 33 1.