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4.14 SR 11-21-2022 Request for Action To Item Number Mayor and City Council 4.14 Agenda Section Meeting Date Prepared by Consent November 21, 2022 Brandon Wisner, Engineering Project Manager Item Description Reviewed by Rolling Hills Homeowners Association and City Cal Portner, City Administrator of Elk River Sanitary Sewer Connection Reviewed by Agreement and Surety Bond Action Requested Approve, by motion, the Sanitary Sewer Connection Agreement between the Rolling Hills Homeowners Association and the City of Elk River, and Surety Bond in the Amount of $156,000 for Associated Professional Services. Background/Discussion The Rolling Hills Homeowners Association Board of Directors requested to connect their subdivision to the city’s sanitary sewer system. The city will manage the public improvement and all costs will be assessed to the property owners over 30 years upon completion. The subdivision includes 28 detached single-family homes in the northeast area of the city. Financial Impact The surety bond is to cover professional services associated with design and bidding in the event the HOA later decides to not complete the process. Mission/Policy/Goal  Meet changing needs - Agile Attachments  Sanitary Sewer Connection Agreement – RH-HOA and COER  Surety Bond (available Monday) 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 SANITARY SEWER CONNECTION AGREEMENT THIS SANITARY SEWER CONNECTION AGREEMENT (“Agreement”) entered into this __ day of ___________, 20__, by and between ROLLING HILLS HOMEOWNERS TH ASSOCIATION, 9840 226 Court NW, Elk River, MN 55330 (“HOA”) and the CITY OF ELK RIVER, 13065 Orono Parkway, Elk River, MN 55330 (“City”) BACKGROUND Rolling Hills (the "Subdivision") is a 28-lot residential subdivision located outside of the City's Urban Service Area, with no current access to City Sanitary Sewer Services. Sanitary Sewer Service is currently provided to the 28 lots in the Subdivision by means of a shared low-pressure subsurface sewer treatment system ("SSTS"), which has reached the end of its useful life and must be replaced. In lieu of replacing the SSTS, the HOA Board of Directors has requested the City to connect the Subdivision to the City's Sanitary Sewer System. In response to this request, the City is considering a public improvement project to connect the SSTS to the City Sanitary Sewer System, and to assess the costs of the Project to the 28 lots in the Subdivision. The purpose of this Agreement is to set forth the terms and conditions for connection of the HOA-owned SSTS to the City-owned Sanitary Sewer System. AGREEMENT 1. The Project. The parties agree that the proposed public improvement project will include installation of a new lift station, force main and associated sanitary line within Outlot B of the Subdivision, connection of this pipe to the Subdivision's existing 3-inch PVC low-pressure force main, and abandonment of the Subdivision's drain field and recirculating sand filter, as provided in the feasibility report as Option B, dated May, 7, 2021, (the "Project"). The HOA acknowledges that detailed plans for the Project are forthcoming. The HOA consents to the City completion of the Project, and completing all work, including any upgrades or improvements to HOA-Owned Infrastructure, necessary, in the City's sole discretion, to connect the Subdivision's SSTS to the City Sanitary Sewer System. The HOA also consents to the dedication of all easements required for the infrastructure and the Project, including but not limited to an easement for a lift station on Outlot B. 2. Assessments. The HOA agrees that all City costs related to the Project shall be assessed to the 28 properties included in the Subdivision. Costs to be assessed will include all City costs to complete the Project described in the forthcoming plans and specifications, any additional costs to upgrade or replace HOA-Owned Infrastructure, any additional City costs for consultant and staff time related to the Project, and the Trunk Sewer fees and Sewer Service availability charges for 28 single family residential Sanitary Sewer Services, as provided in the City fee schedule. 3. Ownership, repair, maintenance and replacement of City-Owned Infrastructure. A. City will own all infrastructure installed in the Project beginning with the connection to the HOA's 3-inch low-pressure force main, and extending downstream from that point (the "City-Owned Infrastructure"). B. City will be responsible for the repair, maintenance and replacement of the City-Owned Infrastructure. The cost to repair, maintain and/or replace the City-Owned Infrastructure shall be borne by the City or the HOA, according to then-existing City policies applicable to all other properties served by the City's Sanitary Sewer System. 4. Ownership, repair, maintenance and replacement of HOA-owned infrastructure. A. The HOA will install, to the specifications required by the City in its sole discretion, and own, all infrastructure upstream of city installed lift station, to be shown on the forthcoming plans (the "HOA-Owned Infrastructure") necessary to connect the 28 lots in the Subdivision to the 8-inch gravity sewer pipe installed by the City across Outlot B, up to the connection point. The HOA and/or the individual lots in the Subdivision will be responsible for all costs associated with installation of the HOA- Owned Infrastructure, and for the costs to repair, maintain and/or replace the HOA- Owned Infrastructure in the future. Installation and all future repairs or replacement to HOA-Owned Infrastructure shall be subject to City approval and inspection. B. By executing this Agreement, the HOA authorizes the City to install or replace any portion of the HOA-Owned Infrastructure which the HOA has failed to install as required by this Agreement and the Project specifications, and to add the costs of such additional work to the Project costs for assessment to the properties in the Subdivision. C. By executing this Agreement, the HOA authorizes the City to enter on the Subdivision to repair or replace any component of the HOA-Owned Infrastructure which the HOA has failed to repair or replace after notice from City; and to assess the costs of such repair or replacement to the HOA pursuant to Minnesota Stat. § 429.101. 5. Discharge to City Sanitary Sewer System. This Agreement authorizes the HOA to connect 28 single family residential lots to the City Sanitary Sewer System. Neither the HOA, nor any individual lot within the Subdivision, shall discharge any effluent to the system other than wastewater from single family residential uses. 6. User Charges. Upon connection of the HOA-Owned Infrastructure to the City Sanitary Sewer System, each lot within the Subdivision shall pay ongoing sewer use charges at the House Unit Flat Charge rate set forth in the City's fee schedule for residential properties not served by the City water utility. 7. Miscellaneous Provisions. A. Entire Agreement. This Agreement incorporates the entire understanding between the parties and supersedes all prior understandings and agreements related to the subject matter. This Agreement cannot be amended, altered or modified, and no provisions can be waived, unless the amendment, change or modification is in writing and signed by both parties. B. Benefit. This Agreement shall bind and inure to the benefit of the parties and their respective successors and permitted assigns. 2 C. No Waiver. No waiver of any breach or any agreement, covenant or restriction contained herein shall be construed to be a waiver of any other or future breach of the same or other covenants or restrictions. D. Notice Addresses. All notices shall be sent by registered or certified mail addressed as follows: City: City Engineer City of Elk River 13065 Orono Parkway Elk River, MN 55330 HOA: Treasurer th 9717 226 Avenue NW Elk River, MN 55330Either party may, by such notice, designate a new or other address to which notice may be mailed. E. Heading and Captions. The headings and captions of the paragraphs and subparagraphs of this Agreement are inserted for convenience and reference only and shall not constitute a part of this Agreement or a limitation on the scope of any paragraph or subparagraph. F. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable under any applicable law or rule, such provision will be ineffective only to the extent of such invalidity, illegality or unenforceability without invalidating the remainder of this Agreement. G. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document. H. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Minnesota. I. Authority. The parties each warrant and represent that the person executing this Agreement on its behalf has the authority to do so and to bind said party to the terms of this Agreement. 3 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first written above. CITY OF ELK RIVER BY: _____________________________________ John J. Dietz, Mayor AND: _____________________________________ Tina Allard, City Clerk ROLLING HILLS HOMEOWNERS ASSOCIATION BY: ____________________________________ AND: _____________________________________ S-1