8.1 SR 07-17-2023Request for Action
To
Item Number
Mayor and City Council
8.1
Agenda Section
Meeting Date
Prepared by
General Business
July 17, 2023
Brandon Wisner, Engineering Project Manager
Item Description
Reviewed by
Rolling Hills Sewer Extension Assessment and Project
Justin Femrite, P.E., Public Works Director
Reviewed by
Approvals
Calvin Portner, City Administrator
Action Requested
Following discussion, consider several action items:
■ Adopt, by motion, a resolution for the adoption of the special assessment roll.
Approve, by motion, Connection Agreement with Rolling Hills.
Approve, by motion, lift station easement.
Adopt, by motion, a resolution awarding of bid to Northdale Construction Company.
Background/Discussion
The Rolling Hills Homeowners Associate Board of Directors requested to connect their subdivision to the city's
sanitary sewer system because their communal drain field is failing. Their development consists of 28 single family
homes.
In January 2023 each property owner signed a petition and waiver for consulting services to cover engineering design
through bidding. The project was put out for public bid in May and we received 5 bids at the June 2 opening. The
results of the bids ranged from $2,149,950.08 to $1,711,923.51 with the engineers estimate at $2,117,894.00. We have
reviewed the submitted bids and Northdale Construction Co has been found to be the low responsible bidder at
$1,711,923.51.
The bids were as follows:
Northdale Construction Co. = $1,711,923.51
JR Ferche = $1,917,829.00
Geisliner & Sons = $1,988,536.51
Meyer Contracting Inc. = $2,126,149.20
GM Contracting = $2,149,950.08
Based on the original petition and waiver amount being rolled into this final assessment, along with all incurred costs,
minus the state grant of $1,100,000 the total assessment per parcel is $44,037.56 (shown below). Per the city
assessment policy, the term is filled out as 10 years, with a total 5.3% interest rate. The interest rate is the current
treasury rate plus a 1.5% administration fee.
The Elk River Vision P 0 W E e E 0 0 V
A welcoming community rvitb revolutionary and spirzted resourcefulness, exceptional NATURE
service, and community engagement that encourages and inspires prosperz[ Updated. Januay 2023
AS BID CONSTRUCTION COST: 1,711,923..51
5";' CONTINGENCY $85,596.18
TOTAL CONSTRUCTION COST: 1,797,5`19,69
ENGIINEEI ING & ACIMINISTRATIIOIN:
$310,000,00
SEWER ACCESS CHARGE ) 5,769/EA):
$161,532.130
TRUNK SEWER FIEE )$1,500/EA):
$42 000,,G0
TOTAL. ESTIMATED PROJECT COST':
' 2,311,051.69
STATE GRANT:
®' 1,100,I100.00
2 GRANT ADMINISTRATION:
$22,000.00
TOTAL ASSESSMENT AMOUNT:
$1,233,05169
TOTAL ASSESSMENT PER PARCEL:
$44,037.5q
The Connection Agreement details where private to public ownership of the sewer collection system. The Easement
Agreement allows for the city to maintain the lift station. The HOA agrees with the location of this lift station.
Financial Impact
All project costs will be rolled into the assessments and paid off by the benefiting property owners per the approved
resolution.
Mission/Policy/Goal
Long-term: Urban Service Area Expansion
Attachments
■ Resolution Adopting Assessment for Rolling Hills — Sewer Extension Project
■ Connection Agreement
■ Lift Station Easement
■ Resolution Awarding the Bid for Rolling Hills — Sewer Extension Project
N:APublic Bodies\Agenda Packets\07-17-2023\Final\x8.1 sr Rolling Hills.docx
C".fty
Resolution 23-
A Final Resolution Accepting the Petition, Waiver, and Agreement for
Payment of the Cost to Design, Bid, and Construct the
Decommissioning of the Rolling Hills Subdivision Subsurface Sewage
Treatment and Connection to the City Sanitary Sewer System
WHEREAS, in January of 2023, all owners ("Property Owners") of the 28 properties located within
the Rolling Hills subdivision ("Properties"), filed a Petition, Waiver and Agreement for Payment of
the Cost to Design and Bid the Decommissioning of the Existing Rolling Hills Subdivision
Subsurface Sewage Treatment System ("SSTS") and Connecting the Rolling Hills Subdivision to the
City of Elk River Sanitary Sewer System, and for Assessment of Amounts Paid as a Special Charge
Under Minnesota Statutes, Chapter 429 ("First Petition"); and
WHEREAS, by Resolution 23-04, the City of Elk River ("City') accepted the First Petition and
ordered the design and bidding of the Decommissioning of the Existing Rolling Hills "SSTS" and
Connecting the Rolling Hills Subdivision to the City of Elk River Sanitary Sewer System, which
included a not -to -exceed amount special assessment amount for the design and bidding of the
proposed decommissioning and connection project; and
WHEREAS, the design and bidding work contemplated by the First Petition and approved by
Resolution 23-04 is complete, and the decommissioning and connection project is ready to proceed;
and
WHEREAS, the Property Owners, filed a Petition, Waiver and Agreement for Payment of the Cost
to Decommission the Existing Rolling Hills SSTS and Connect the Rolling Hills Subdivision to the
City of Elk River Sanitary Sewer System pursuant to the plans and specifications, and for
Assessment of Amounts Paid as a Special Charge Under Minnesota Statutes, Chapter 429 ("Second
Petition"); and
WHEREAS, the City acknowledges that the SSTS has failed, that the failure of the SSTS has created
a public health and safety hazard; that in lieu of replacing the SSTS the Owners have collectively
agreed to connect the Subdivision to the City of Elk River Sanitary Sewer System; that the proposal
is reasonable and necessary to connect the Subdivision to the Sanitary Sewer System and to eliminate
the public health and safety hazard from the Properties.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River,
Minnesota, as follows: Glud< IIiei,e to eiitei, text,
226789v2
1. The City accepts the Second Petition as filed by the Property Owners, which waives all
hearing rights, and finds that the Second Petition represents all Properties within the
Rolling Hills subdivision.
2. The City shall undertake to Decommission of the Existing Rolling Hills SSSTS and
Construct the Connection of the Rolling Hills Subdivision to the City of Elk River
Sanitary Sewer System ("Pro)ect").
City is staff is directed to perform title work on all Properties in the Second Petition,
which is an administrative cost of the Project.
4. Bolton & Menk, Inc. is hereby designated as the engineer for the Project, and Northdale
Construction Company is the Contractor for the Project.
5. The not -to -exceed special assessment amount for design through bidding that was
previously approved by Resolution 23-04, is hereby incorporated with a definite amount
into the total project cost to be assessed under this Resolution.
6. Pursuant to the First and Second Petitions, the City shall levy a special assessment
against each Property in the Subdivision as pursuant to Minnesota Statutes,
Section 429.031, subd. 3, in the amount of the total cost of the Project (including all City
administrative and other costs attributable to the Pro)ect, but subtracting a State Grant in
the amount of $1,100,000.00) in equal amounts to each of the 28 lots in the Subdivision,
for a total amount not to exceed $2,311,051.69, which shall be $44,037.56 for each of the
28 lots, as shown on the attached Exhibit A ("Assessment Roll")
The Assessment roll is hereby adopted and shall constitute the special assessment against
the lands named therein, and each and every tract of land therein included is hereby
found to be benefited by the proposed improvement and the amount of the assessment
levied against it.
Such assessment shall be payable in equal annual installments extending over a period of
10 years, the first of the installments to be payable on or before the first Monday in
January (year) and shall bear interest at the rate of 5.3 percent per annum from the date
of the adoption of this assessment resolution. To the first installment shall be added
interest on the entire assessment from the date of this resolution until December 31,
(year). To each subsequent installment, when due, shall be added interest for one year on
all unpaid installments.
The owner of any property so assessed may, at any time prior to certificate of the
assessment to the county auditor, pay the whole of the assessment on such property,
with interest accrued to the date of payment, to the city treasurer, except that no interest
shall be charged if the entire assessment is paid within 30 days from the adoption of this
resolution; and he/she may, at any time thereafter, pay to the city treasurer the entire
amount of the assessment remaining unpaid, with interest accrued to December 31 of
the year in which such payment is made. Such payment must be made before November
15 or interest will be charged through December 31 of the next succeeding year.
226789v2
10. The clerk shall forthwith transmit a certified duplicate of this assessment to the county
auditor to be extended on the property tax lists of the county. Such assessments shall be
collected and paid over in the same manner as other municipal taxes.
Passed and adopted this 17Ih day of June 2023.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
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FROMYLH-F-R3 -L7 F-NE 0='N —Ii. B E C G'
Rolling Hills
Sanitary Sewer Connection to City
Final Assessment Roll
Bolton & Menk Project # OR1.129209
06/14/23
No.
PH)
Block
No.
Lot
No.
Property Owner
Site Address
Trunk
Sewer
Sewer
Access Charge
Sewer
Assessment
Total
Preliminary
Assessment
EACH(EACH)
EACH
Block 1
1
75-664-0105
1
1
DICKINSON, MARK & ANNE
9668 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
2
75-664-0110
1
2
ROTHSTEIN, PAUL & PAULA MARIE BERG
9708 226TH AVENUE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
3
75-664-0115
1
3
HANSON, LEE H & MEGAN C
9726 226TH AVENUE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
4
75-664-0120
1
4
BECKER, RANDY & KILFOYL, TRINA R
9744 226TH AVENUE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
5
75-664-0125
1
5
DOTRAY THOMAS W & WALL, AMANDA
9778 226TH AVENUE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
6
75-664-0205
2
1
REIMER, BILLY DEAN & DAWN M
9840 226TH COURT NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
7
75-664-0210
2
2
NORDSTROM, MARK S & BARBARA A
9850 226TH COURT NW
$1,500.00
$5,769.001
$36,768.56
$44,037.56
8
75-664-0215
2
3
ERICKSON, LORI
9878 226TH COURT NW
$1,500.00
$5,769.001
$36,768.56
$44,037.56
9
75-664-0220
2
4
BURTON, CHARLES M III & KRISTIN M
9916 226TH COURT NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
10
75-664-0225
2
5
DOLL, JASON M & DAWN M
9919 226TH COURT NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
11
75-664-0230
2
6
ANDERSON, ROBERT & LORI
9909 226TH COURT NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
12
75-664-0235
2
7
FISHBACK, JOHN A & CARRI
9881 226TH COURT NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
13
75-664-0240
2
8
DEZURIK, ANTHONY L
9841 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
14
75-664-0245
2
9
JURRENS, NICHOLAS L & SHANNON M
9833 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
15
75-664-0250
2
10
ASCHEMAN, TIM & DIANE
9819 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
16
75-664-0255
2
11
WAGNER, JAMIE R
9807 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
17
75-664-0305
3
1
SMITH, JASON M & KAITLYN J
22681 CLEVELAND STREET NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
18
75-664-0310
3
2
ERICKSON, TYLER L & JANAYE EMILY
9753 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
19
75-664-0315
3
3
BETTS, PETER A & PAMELA SUE
9729 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
20
75-664-0320
3
4
RICK, KYLE & ERIN
9713 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
21
75-664-0325
3
5 & 6
KING, DAVID & JENNIFER
9695 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
22
75-664-0335
3
7
DUSEK, BRADLEY R
9679 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
23
75-664-0405
4
1
STONE, NATHAN Z & CASSANDRA L
9838 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
24
75-664-0410
4
2
SMITH, SAMUEL E II & PEGGY D
9804 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
25
75-664-0415
4
3
THUNELL, ALICIA R
9740 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
26
75-664-0420
4
4
MOUDRY, BENJAMIN D & NICHOLE Y
9696 226TH LANE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
27
75-664-0425
4
5
THOM, DARIN W & KRISTINA M
9717 226TH AVENUE NW
$1,500.00
$5,769.00
$36,768.56
$44,037.56
28
75-664-0430
4
6
IROSSTEDT,DEREK&ASHLEY
19771226THAVENUE NW
1 $1,500.001
$5,769.00
$36,768.561
$44,037.56
Total Assessment $1,233,051.68
*INFORMATION FROM 2023 TAX STATEMENT FROM SHERBURNE COUNTY BEACOP
PETITION, WAIVER AND AGREEMENT FOR PAYMENT OF THE COST TO
DECOMMISSION THE EXISTING ROLLING HILLS SUBDIVISION SUBSURFACE
SEWAGE TREATMENT SYSTEM AND TO CONNECT THE ROLLING HILLS
SUBDIVISION TO THE CITY OF ELK RIVER SANITARY SEWER SYSTEM,
AND FOR ASSESSMENT OF AMOUNTS PAID AS A SPECIAL CHARGE
UNDER MINNESOTA STATUTES, SECTION 429.101
TO: City Council of the City of Elk River
The undersigned owners (the Owners), of the 28 properties (the Properties) located within
the Rolling Hills subdivision (Subdivision) as legally described on the signature page of this
Petition, Waiver and Agreement (Agreement), petition the City of Elk River (the City) to perform
and to pay the costs of (i) decommissioning and removing, as determined necessary by the City,
the existing Subsurface Sewer Treatment System (SSTS) serving the Subdivision; and
(ii) connecting all 28 properties in the Rolling Hills subdivision to the City of Elk River Sanitary
Sewer System (the Project). The Project is also further memorialized in the Sanitary Sewer
Connection Agreement, which the HOA shall enter into with the City. Estimated costs, charges
and fees, for the Project are described in more detail on Exhibit A attached hereto.
The Owners further petition the City to levy a special assessment against each Property in
the Subdivision pursuant to Minnesota Statutes, Section 429.031, subd. 3, in the amount of the
total cost of the Project, including all City administrative and other costs attributable to the Project,
in equal amounts to each of the 28 lots in the Subdivision, not to exceed $ 44,037.56 for each of
the 28 lots.
Owners acknowledge and agree: (1) that the SSTS has failed; (2) that the failure of the
SSTS has created a public health and safety hazard; (3) that in lieu of replacing the SSTS the
Owners have collectively agreed to connect the Subdivision to the City of Elk River Sanitary
Sewer System; (4) that the Project as described on Exhibits A and B is reasonable and necessary
to connect the Subdivision to the Sanitary Sewer System and to eliminate the public health and
safety hazard from the Properties; (5) that the Maximum Cost of the Project as identified on
Exhibit B is reasonable and necessary to complete the Project and is the responsibility of Owners;
and (6) that Owners have been provided the opportunity to pay the Cost of the Project without the
City's involvement and have elected, instead, to petition the City to pay the Cost of the Project and
to assess the full amount of the Cost of the Project to the Properties.
Owners acknowledge that the City may accept or reject this Petition, Waiver and
Agreement in the City's sole discretion, for any reason, including, but not limited to, the
availability of City funds to pay the Cost of the Project and agree, if the City accepts this Petition,
Waiver and Agreement: (1) to provide the City with the necessary easements, consents and other
approvals required for the City to enter on the Subdivision and the Properties to complete the
Project; (2) that the Project shall be contracted by the City pursuant to the City's normal procedures
and as required by Minnesota law; (3) that the City shall bear only that responsibility for or liability
related to the performance of the Project as is provided by law; (4) that Owners shall hold harmless
and indemnify the City from any claims related to the performance of the Project; (6) that, upon
completion and acceptance of the Project, City shall make payment to the City's contractor or other
parties who completed the Project in an amount not to exceed the Cost of the Project identified on
226792v1
Exhibit A; (7) that payment by the City of the Cost of the Project shall create an unpaid special
charge against the Properties; (8) that this unpaid special charge shall be specially assessed against
each Property within the Subdivision by the City as allowed by Minnesota Statutes, Section
429.101, subd. 1(a)(3); (9) that the City will conduct this assessment pursuant to the procedures in
Minn. Stat. Ch. 429; and (10) that the special assessment shall be payable in _10_ equal annual
installments with interest accruing on unpaid installments at the rate of _5.3_%.
Owners expressly waive the right to a hearing on assessments levied pursuant to this
Agreement; expressly waive objection to any irregularity with regard to the assessment of the
Properties for the Cost of the Project; expressly agree that any amount assessed for the Project that
is equal to or less than the maximum amount set forth in Exhibit A is reasonable; expressly waive
any claim that any amount assessed is excessive; expressly waive all rights of appeal, including
any rights under Chapter 429, Minnesota Statutes, from the assessment by the City of the Cost of
the Project; and expressly agree to pay when due all assessments levied for the Cost of the Project.
Owners represent and warrant that they are the fee Owners of the Properties as identified
on the signature page of this Petition, Waiver and Agreement; agree to make payment of all
assessments levied pursuant to this Agreement for payment of the Cost of the Project; agree that
they shall be personally liable for payments not made; agree that this Agreement shall be binding
on Owners and Owner's successors and assigns; agree that all assessments levied pursuant to this
Agreement shall be paid in full prior to or at the time of transfer of the Property to a subsequent
owner; and agree that this Agreement may be recorded against the title to the Properties.
Owners acknowledge that this Petition, Waiver and Agreement may be executed
electronically and in counterparts.
[Signature pages to follow]
2
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may be executed
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Dated: 6f l 5/2023
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22G792vl
Address: 9878 226th Court NW, Elk River MN 55330
Legal Description: Lot 3 Block 2
Owner: Lori K Eri. ........... . .....
Signature: Dated: 06/14/2023
Owner:
Signature:
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2267920
Dated:
Address: 9916 226TH CT NW, ELK RIVER MN
Legal Description:LOT 4, BLK 2
Owner: CHARLES BURTON
Signature: CX14Ad 46a4 ` M,
Owner: KRISTIN BURTON
Signature: /�uuz U�urtx`rL
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Dated: 6/14/2023
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Address: 9833 226th Lane NW, Elk River MN 55330
Legal Description: , OT 9BLK 2
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Owner: Nicholas Jurrens
Signature:
Owner: Shannon Jurrens
Signature:
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Dated: 6-29-23
Dated: 6-29-23
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Address: 9753 226th LN NW, Elk River, MN 55330
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Owner: Tyler Lee E
Signature.
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Dated.
. 6/14/2023
Dated: 6/14/2023
Address: 9729 226th LN NW Elk River MN 55330
Legal Description:
Owner: Peter Betts
Signature:
Peter Betts Dated : 06/15/2023
Owner: Pamela Betts
Signature: Pameal Betts _.....m. Dated: 06/15/2023
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226792v1
Address: 2219"_ NW
Legal Description: L -VI-13
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Address: 9;66 226th Lane NW, Elk River MN
Legal Description: LOT 7, BLK 3
Owner: Brad Dusek
Owner:
Signature: 944. T U"406 Dated: 6120/23
Signature:
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Dated:
9838 226th Lane NW
Address:
Legal Description: Lot 1, Block 4
Owner: Nathan Stone
Signature: �� _. ,,,,........_._ Dated: 6 / 2 0 / 2 3
Owner: Cassandra Stone
Signature: Dated: 6/ 2 0/ 2 3
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For Office Use �............ ....... ...... e.......
Application Approved:
Permit No(s):
Project completed on:
Approval for Final Payment:
Date:
Date:
S-2
226792v1
Project:
EXHIBIT A
AS BID CONSTRUCTION COST: ---.—.-$1,711,923.51
. ........................ "I---
5% CONTINGENCY
$85,5'96.18
11111 . ..... ...... ---
TOTAL CONSTRUCTION COST:
$1,797,519.69
ENGINEERING & ADMINISTRATION: $310,000.
SEWER ACCESS CHARGE ($5,769/EA): $161,S32.
A
TRUNK SEWER FEE ($1,500/EA): $42,000.1
TOTAL ESTIMATED PROJECT COST:
$2,311,051.69
..........
STATE GRANT:
-$1,100,000.00
. . . . . . . . .. ............
2% GRANT ADMINISTRATION:
......... . . ..
$22,000.00
- - ------------- ---------------- -
TOTAL ASSESSMENT AMOUNT:
$1,233,051.69
TOTAL ASSESSMENT PER PARCEL:
$44,037iS6{-
A-1
226792v]
SANITARY SEWER U)NNECTIONAGREEMENI'
THIS SANITARY SEWER CONNECTION AGRE EMEN,r ("Agreement") entered into
this - day of 201 by and betwecru ROL.11NG HILLS TIOMEOWNERS
ASSOCIAFION, Elk Rivor, .M.N 55330 ("HOA") and the CITYOF ELK
RIVER, 13065 Orono Parkway, Elk: River,.MN 55330 ("City")
BACKL.3,K)UND
Rolling Hills (the "Subdivision") is a 28 lot residential subdivision located outside of the
City's LJrban 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 an shared
low-pressure subsurface sewer treatment system ("SSTS"), which has reached the end ic.).f its useful
lift, 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 rrespnornse to
this request, the City is cons.idering an public improvement project. to connect the SSTS to the City
Sanitary Sewer System, and to assess the costs of the Project
ject to the 28 lots in the Subdivision. 'The
purpose of this Agreement is to set forth the terms and conditions for connection of the
HO.A.-owned SSTS to the City -owned Sanitary Sewer System.,
AGREEMENT
I The PrWgct. The parties agree that the proposed public improvement pro ect will
J
include installation o-Fa 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, (fated May, 7, 20211, (the "Project"). 17he F10A
ackriowledges that detailed plans for the Project are forthcoming. 'I'lle HOA consents to the City
coinpletion of the Project, and completing all work, including any upgrades or improvements to
I 10A Owned Infrastrticture, necessary, in the City's sole discretion, to connect the Subdivision's
SSTS to the (,ity Sanitary Sewer System. The JJ0.A also consents to the dedication of all
easements required for the infrastructure and the Project, including but not, I 4nited to an easement
for a lift station on Outlot B.
1 A5,smsimmLs- 'rhe 110A 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 Pro " ject described in the fortficoming plans and
d secifications, any additional
costs to upgrade or replace HO.A.-Owned Infrastructure, any additional City costs for consialtaDt
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. Owne rshijeI.,air.,mintenanceandejmj� (—�(tmQ—w n-e LlLudure.
djafrA —
A. City will own all infrastructtire installed in the Project beginning with the
corincction to the 110A's 3 inch low-pressure force mairi, and extending downstream
from that point (the "'Cit ..Y ..... Owned Infrastructure"').
13. City will be responsible for the repair, maintenance and replacernent of the
( .1
"ity-Owned Infrastructure., The cost to repair, rnaintain and/or replace the City -Owned
Infrastructure shall be borne by the City or the HOA, according to then -existing City
nliC2,«le e. 1,011erti -, seru*i 1tv the Citv'.-, ',2.nitqry Qewer Svstem,
- - - ---------
A. The HOA will install., to the specifications required by the City in its so
discretion, and own, all infrastructure upstream of city installed lift station, to be sho
on the forthcoming plans (tile "HOA-Owned Infrastructure") necessary to connect tile
B, up to the connection point. The HOA and/or the individual lots in the Subdivision wi
be responsible for all costs associated with installation of the HOA-O
n•
wned Infrastructur
and for the costs to repair, maintain ad/or replace the HOA-Owned Infrastructure in t
future, Installation and all future repairs or replacement to HOA-Owned Infrastructu
shall be subject to City approval and inspection. I
13By 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 oil tIA
Subdivision to repair or replace any component of the HOA-Owned Infrastructure whi
the HOA has failed to repair or replace after notice from City; and to assess the costs
such repair or replacement to the HOA pursuant to Minnesota Stat. § 429. 10 1. 1
5. Dischar�2e to Cit,, Sanitar,,, Sewer S,� stem. This Agreement authorizes the HOA
. ........... ............ .... ........... C>
connect 28 single family residential lots to tile City Sanitary Sewer System. Neither the HOA, n
any individual lot within the Subdivision, shall discharge any effluent to the system other th
wastewater from single family residential uses. I
6, User -fbzroes. Upon connection of the HOA-Owned Infrastructure to the City
,2
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.
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.
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
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. Severabilit� . 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. Counterrzarts. 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. Authorit§,, . 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.
IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of
the date first written above.
CITY OF ELK RIVER
M
AND:
John J. Dietz, Mayor
Tina Allard, City Clerk
ROLLINC�Aj�,IILLS HOMEOWNERS
ASSOCI.,k4'1))N
BY-
ANI
. . . . . ..... . . ...... .
preserved Jor recording �
PERMANENT EASEMENT AGREEMENT
This PERMANENT EASEMENT AGREEMENT ("Easement") is made by and between
ROLLING HILLS HOMEOWNERS ASSOCIATION, a Minnesota nonprofit corporation
("Grantor"), and the CITY OF ELK RIVER, a Minnesota municipal corporation ("City")
Grantor, in consideration of $1.00 and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, does hereby grant unto the City, its successors
and assigns, the following easement:
1. Permanent Easement. A permanent, non-exclusive easement for public drainage
and utility purposes over, across, on, under and through the land situated within the County of
Sherburne, State of Minnesota (the "Easement Premises") that is legally described as follows:
Outlot B, ROLLING HILLS, according to the recorded plat thereof, Sherburne
County, Minnesota.
Such permanent easement is legally described on Exhibit A and depicted on Exhibit B, and
includes the rights of the City, its contractors, agents, servants and assigns to enter upon the
Easement Premises at all reasonable times to construct, reconstruct, inspect, repair, and maintain
the drainage and utility systems over, across, on, under and through the Easement Premises,
together with the right to grade, level, fill, drain, pave, and excavate the Easement Premises, and
226712v1
the further right to remove trees, bushes, undergrowth, and other obstructions interfering with the
location, construction, and maintenance of said public sidewalk and drainage and utility systems.
Grantor hereby grants the uses specified in this Easement without divesting itself of the
right to use and enjoy the above -described permanent Easement Premises, provided Grantor's use
does not interfere with the City's use of the same for the purposes described in this Easement.
2. The City will maintain insurance with at least the minimum coverage consistent
with the liability limits provided under Minnesota Statutes, Chapter 466. Proof of existence of
the policy, including, without limitation, an insurance certificate will be provided by the City to
the Grantor within ten (10) days of the execution of this Easement. Furthermore, the City will
indemnify, defend and hold Grantor and its officers, members, governors, employees, contractors
and agents harmless from any and all liability, loss, cost, or expense of any nature (including
reasonable attorneys' fees) or any claims made by it and any third parties for damages sustained
or costs incurred from the City's exercise of its rights under this Easement, or as a result from
the City's use of the Easement Premises, except for any costs or damages resulting from the
negligence or willful misconduct of Grantor, its officers, employees and agents. Nothing in this
Easement will constitute a waiver of the City of any statutory of common law immunities or
liability limitations.
3. The City, its contractors, agents, servants and assigns will use best efforts to
minimize the disturbance of Grantor's quiet enjoyment of the Easement Premises.
4. Grantor, for itself, its successors and assigns, does covenant with the City, its
successors and assigns, that Grantor is well seized in fee title of the above described Easement
Premises; that it has the sole right to grant and convey the easements to the City; that there are no
2
226712v1
unrecorded interests in the Easement Premises; and that it will indemnify and hold the City
harmless for any breach of the foregoing covenants.
5. Nothing contained in this Easement will be deemed to be a gift or dedication of any
portion of the Easement Premises to the general public or for the general public or for any public
purpose whatsoever, it being the intention that the easements will be strictly limited to and for the
purpose expressed in this Easement.
6. The City will not permit any mechanics', materialmen's, or other liens to stand
against Grantor's property or any part thereof for work or materials furnished City in connection
with this Easement, and the City agrees to indemnify.. defend and hold Grantor harmless from and
against the same.
7. If either party brings an action at law or in equity to enforce or interpret this
Easement, the prevailing party in such action will be entitled to recover reasonable attorneys' fees
and court costs for all stages of litigation, including, but not limited to, appellate proceedings, in
addition to any other remedy granted.
8. The exhibits attached to this Easement are true and correct, and are incorporated
into this Easement.
IN TESTIMONY WHEREOF, the parties hereto have signed this document this
day of 2023.
[Remainder of page left blank intentionally; signature pages follow.]
3
226712vl
GRANTOR:
ROLLING HILLS HOMEOWNERS
ASSOCIATION
..
L,
By. w f..R w [Print name]..,,,,,,._,__.
Its: � jrt
STATE OF MINNESOTA )
) ss.
COUNTY OF SHERBURNE)
The foregoing instrument was acknowledged before me this Vday of
2023, by O..:.....A.r�,qt• '7TeQ rof the Rolling Hills Homeo ers
Association, a Minnesota nonprofit corporation, on behalf of the corporation.
c
4
226712v1
a JENNIFER ANN DENGEPUD
NOTARY PUBLIC - MINNES,OTA
MYConV*dM Egg=JUL 31, 2028
V` -r me-
LIQJZ®'
CITY:
CITY OF ELK RIVER
John Dietz, Mayor
Tina Allard, City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF SHERBURNE)
The foregoing instrument was acknowledged before me this day of
2023, by John Dietz and Tina Allard, respectively, the Mayor and the City Clerk of the
City of Elk River, a Minnesota municipal corporation, on behalf of the corporation and pursuant
to the authority of granted by its City Council.
Notary Public
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center I
860 Blue Gentian Road, Suite 290
Eagan, MN 55121
Telephone: (651) 452-5000
JDS/AKLS
226712v1
EXHIBIT A
TO
PERMANENT EASEMENT AGREEMENT
Legal Description of the Permanent Easement
An easement for drainage and utility purposes over, under and across that part of Outlot B,
ROLLING HILLS, according to the recorded plat thereof, Sherburne County, Minnesota, said
easement described as follows:
Beginning at the northeast corner of said Outlot B, thence South 00 degrees 26 minutes 07 seconds
West, assumed bearing along the east line of said Outlot B, 111.93 feet; thence North 44 degrees
33 minutes 52 seconds West, 94.10 feet; thence North 89 degrees 33 minutes 53 seconds West,
23.53 feet; thence North 00 degrees 26 minutes 07 seconds East, 45.39 feet to the north line of said
Outlot B; thence South 89 degrees 33 minutes 53 seconds East, along said north line of Outlot B,
90.07 feet to the point of beginning.
Containing 6,303 square feet, more or less.
6
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EXHIBIT B
TO
PERMANENT EASEMENT AGREEMENT
Depiction the Permanent Easement
i
30.0'
i
226rH AVENUE NW
i
50_t7` POINT OF BEGINNING , ---a
NORTHEAST CORNER OF 't5
OUTLOT B, ROLLING HILLS
�¢
li
_
I NORTH LINE OF OUTLOT B
M
4;!
�I
I m
Iti
MLU
\ +v ry
ti
LEGEND
PROPOSED DRAINAGE AND UTILITY „yam` fi, I cn
r , EASEMENT CONTAIN ING sa\
L
Q -
®®®,®®J APPROXIMATELY 6,303 S6. FT.
— — BLOCK LINE
SECTION LINE
— CENTERLINE \
r
�
....E DESCRIPTION
PROPOSED EASEMENT DE � �..
�
An easement for drainage and utility purposes over, under and
across that part of Outlot B, ROLLING HALLS, according to the
recorded plat thereof, Sherburne County, Mlinnesota, said easement
described as follows:
0 Be
x Beginning at the northeast corner of said Outlot B, thence South 00
•••--
degrees 26 minutes 07 seconds West, assumed bearing along the
SCALE IN FEET
0 east line of said Outlot B, iii_93 feet thence North as degrees 33
SURVEYOR'S CERTIFICATION
minutes sz seconds West, 94.10 feet; thence worth 89 degrees 33
x minutes 53 seconds West, 23.53 feet; thence North on degrees 26 1 hereby certify that this survey, plan, or
report was prepared by
minutes 07 seconds East, 45.39 feet to the north line of said Outlot me or under my direct supervision and
that I am a duly licensed
B; thence South 89 degrees 33 minutes 53 seconds East, along said Land surveyor under the laws of the state of Minnesota_
w north tine of Outlot B, 9D.07 feet to the point of beginning. oc —
l
� v
5J3Date 3
,3 Q t Bustin Schmaltz
y Comtainmc 6,303 square fee more or less.
_ Date
License Number368�3
6Bofton rAenk,lnc 2023, All R.hts Reserved
DRAINAGE AND UTILITY EASEMENT OLITLOTB, ROLLING HILLS
P11D# 75-5 20 SHERBURNE COUNTY, MN
7533 SUNWOOD DR NW, SUITE 206
RAMSEY, MINNESOTA 55503 FOR: ELK RIVER
(763) 433-2851
gOLUNG HILLS SEWER
EXTENSION
JOB NUMBER: 129209 FIELD BOOK:
DRAWN BY: DRS
7
226%12v1
City of
Elk -�.-1
River
City of Elk River
City Council
Resolution 23-
A Resolution of the City Council of the City of Elk River Accepting Bid for
Rolling Hills Rolling Hills Subdivision Subsurface Sewage Treatment and
Connection to the City Sanitary Sewer System Project
WHEREAS, pursuant to an advertisement for bids for the Rolling Hills Subdivision
Sewage Treatment and Connection to the City Sanitary Sewer System project, for the
improvement of removing the existing drain field and construction of a lift station, all
necessary sewer pipe and related components along Jarvis St./Twin Lakes Rd. as detailed in
the approved plans. Bids were received, opened, and tabulated according to the law, and the
following bids were received complying with the advertisement.
BIDDERS
TOTAL BID
Northdale Construction Co.
$1,711,923.51
JR Ferche
$1,917,829.00
Geisliner & Sons
$1,988,536.51
Meyer Contracting Inc.
$2,126,149.20
GM Contracting
$2,149,950.08
and,
WHEREAS, it appears that Northdale Construction Co. of Albertville, MN is the lowest
responsible bidder,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: licn, t(� cntcr tcxto
The mayor and clerk are hereby authorized and directed to enter into the attached
contract with Northdale Construction Co. of Albertville, MN in the name of the City
of Elk River for the improvement of removing the existing drain field and
construction of a lift station, all necessary sewer pipe and related components along
Jarvis St./Twin Lakes Rd. as detailed in the approved plans and specifications
therefore approved by the city council and on file in the office of the city clerk.
i
2. The city clerk is herby authorized and directed to return forthwith to all bidders the
deposits made with their bids, except that the deposits of the successful bidder and
the next lowest bidder shall be retained until a contract has been signed.
Passed and adopted this 17Ih day of July 2023.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
i
Agenda Item 8.1 - Rolling Hills Sewer Extension Assessment & Project Approvals
Regarding the rate and term of the payment for the assessment, Rolling Hills is requesting two
changes to the terms of the payment for the assessment.
■ Extend the term to 20 years.
■ Reduce the interest rate to 3.8% on the first $30K of the assessment and 0% on the
remainder (- $14K). Can be accomplished by waiving the 1.5% administrative fee.
1) The Rolling Hills residents continue to be responsible for $1.23M of the project costs.
• Total assessment accounts for -10% of the current assessed values of the homes.
+ A 10-year term at 5.3% will increase each resident's monthly house payment -25%.
The requested term and rate will reduce this impact -50%.
■ Most recent home sales in Rolling Hills suggest properties are delayed in selling, and
those that have sold are going for - $50K below assessed value.
■ See Tables for financial impact comparison
Estimated Monthly Payments
Rate
10-Yr Term
15-Yr Term
20-Yr Term
3.8% (first $30K, then 0%)
$419/mo
$299/mo
$239/mo
3.8% full assessment
$442/mo
$321/mo
$262/mo
5.3% full assessment
[ $474/mo
$355/mo
$298/mo
Total Cost of Repayment
Rate
10-Yr Term
15-Yr Term
20-Yr Term
3.8% (first $30K, then 0%)
$50,100
$53,400
$56,900
3.8% full assessment
$53,000
$57,800
$62,900
5.3% full assessment
$56,800
$63,900
$71,500
2) Windsor Park was approved for a 15-year term for an assessment of $22K per property.
3) The CC had previously pledged support in the working session on October 18, 2021 to a
longer, 30-year term and also a lower rate for the Rolling Hills project.
4) The interest rate has significantly increased (--1.3 percentage points) since discussed at the
City Council work session on October 18, 2021.
5) Recognizing assessments should be reasonable, the City of Elk River Policy for Payment &
Assessment of the Costs to Repair Private Utility Lines limits an assessment to $40K. The policy
notes special circumstances may be considered and approved on a case -by -case condition. As
the Rolling Hills assessment will exceed the $40K maximum, it is our position that this meets the
condition for consideration and approval for amendment to the standard terms of the policy.