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4.21 SR 12-16-2024City of Elk - River To City Council Meeting Date December 16, 2024 Item Description Meadowwoods Village Sewer Connection (Agreement 24-39) Request for Action Item Number 4.21 Prepared By Justin Femrite, Public Works Director/Chief Engineer Reviewed by Justin Femrite Cal Portner Tina Allard Action Requested Approve, by motion, Agreement 24-39: Connection Agreement, CIP amendment, and professional services proposal. Background/Discussion As supported by Council consensus at the November 18, 2024, Regular Meeting Work Session, staff has continued work on necessary documents relating to the initiation of public improvements on behalf of the Meadowwoods Village development for connection to the public sewer system. The action requested is to approve the attached Connection Agreement, CIP Sheet which details a budgetary cost estimate, and a professional services proposal for services relating to preliminary engineering, final design, and construction administration. It is the goal of the homeowners association to begin work as soon as approvals are in place so that a project can be constructed and online in 2025 if possible. Financial Impact All costs for the improvements will be carried in the Trunk Utility Fund with 100% repayment to come from private property assessments. Mission/Policy/Goal Improve citizen quality of life. Attachments I . Sanitary Sewer Connection Agreement Updated 2. Meadowwoods Sewer CIP Form 3. Meadowwoods Village Sewer Engineering Services Proposal The Elk River Vision A avelcoming community with revolutionary and spirited resourcefulness, exceptional service, and community p p W E H E 0 B1NMLQd273 engagement that encourages and inspires prosperity SANITARY SEWER CONNECTION AGREEMENT THIS SANITARY SEWER CONNECTION AGREEMENT ("Agreement") entered into this day of December, 2024, by and between MEADOWWOODS VILLAGE HOMEOWNERS ASSOCIATION, ("HOA") and the CITY OF ELK RIVER, 55330 ("City"). BACKGROUND Meadowwoods Village (the "Subdivision") is a 39-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 39 lots in the Subdivision by means of a shared 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 has requested the City to connect the Subdivision to the City's Sanitary Sewer System. In response to this request, the City has initiated a public improvement project (the "Project") to install a public sewer line to connect the Subdivision to the City Sanitary Sewer System, and to assess the costs of the Project to the 39 lots in the Subdivision. The purpose of this Agreement is to set forth the terms and conditions for connection to the City -owned Sanitary Sewer System. AGREEMENT 1. The Project. The Project includes the design and installation of a publicly built sanitary sewer system that will connect the Subdivision to the City sanitary sewer system. This may be accomplished via a gravity sewer installation as detailed in the May 30, 2024, Feasibility Study completed by the HOA, or installation of a new lift station and forcemain system. The Project will study the cost effectiveness, constructability, and long-term maintenance around both options before developing plans around the option that most appropriately fits all needs, as mutually agreed upon by the HOA and the City. The Project will involve improvements on or across Outlot A as owned by the HOA. This Agreement hereby establishes the rights of the Project to establish certain public easements upon this outlot, to be detailed in and mutually agreed upon in certain easement agreements, so the public sewer system can be built and maintained into the future. Notwithstanding the foregoing, the HOA may terminate the Project and the Agreement at any time prior to the commencement of any construction or installation or repair of any portion of the Project, or if the HOA fails to close on its acquisition of the SSTS, in which case this Agreement shall terminate except for the HOA's obligation to reimburse the City's costs incurred through the date of termination and the City's ability to assess such costs as set forth herein. 2. Assessments. The HOA agrees that all City costs related to the Project shall be assessed to the 39 properties included in the Subdivision as committed through the signed preliminary Petition Waivers and Agreements to be entered into by and between the City and each lot owner, and to be fully documented in final petition Waiver and Agreements. Costs to be assessed will include all City costs to complete the Project, agreed costs for purchase of the current system from the HOA's third party vendor (already negotiated by HOA), any additional costs to upgrade or replace existing private HOA (or third party) Owned Infrastructure, any additional City Page 201 of 273 costs for consultant and staff time related to the Project, and the Trunk Sewer fees and Sewer Service availability charges for 3 9 single family residential Sanitary Sewer Services, as provided in the City fee schedule. All costs associated with the Project's development shall become assessable even it is determined the Project will not be built based on economic factors as directed by the HOA or its petitioners. (ie: The final bids are substantially higher than estimates and the HOA wants to rebuild their private system on their own). 3. Ownership, repair, maintenance and replacement of City -Owned Infrastructure. A. City will own all infrastructure installed with the Project. 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 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 existing SSTS and all affiliated equipment and infrastructure is currently owned by Natural Systems Utilities, LLC, a Delaware limited liability company ("NSU"). Pursuant to that certain Letter of Intent dated effective October 4, 2024, the HOA has tentatively agreed to purchase the SSTS from NSU pursuant to an Asset Purchase and Sale Agreement with NSU based on the terms of the Letter of Intent. B. Through the HOA's purchase from NSU [and subsequent conveyance to the City], the City shall take ownership of all existing SSTS and the piped collection system on Outlot A and under the streets of the Subdivision. C. After the Project, the HOA will not have control/ownership of any parts of the system as public ownership will include all mainline piping as consistent with City standards. Each lot will own their service lines to the point of their single connection in the street. D. 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 each lot in the Subdivision. E. 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 this agreement or Minnesota Stat. § 429.101. 5. Discharge to City Sanitary Sewer System. This Agreement authorizes the HOA to connect 39 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. 2 Page 202 of 273 6. User Charges. Upon connection 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. 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: Meadowwoods Village Homeowners Association c/o Cities Management 2100 Summer Street NE, Suite 280 Minneapolis, MN 55413 Attention: Chris Shaw Either 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. 3 Page 203 of 273 H. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Minnesota. L Authorily. 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. [Intentionally left blank; Signature page follows] 4 Page 204 of 273 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first written above. CITY OF ELK RIVER :• AND: John J. Dietz, Mayor Tina Allard, City Clerk MEADOWWOODS VILLAGE HOMEOWNERS ASSOCIATION :• Christopher Shaw, Board President S-1 Page 205 of 273 Capital Improvement Plan 2024-2028 Department: Contact: Public Works Justin Femrite Meadowwoods Village Sewer Connection Install sewer system to connect the 39 existing homes in the development to the City sewer system for ultimate disposal and treatment of their wastewater. The project has been petitioned for by the HOA and its members. Justification Through execution of the Connection Agreement with the HOA, the City will undertake a public project at their cost. Expenditures 2024 2025 2026 2027 2028 Total Improvement Project 1,450,000 Total 1,450,000 Funding Source 2024 2025 2026 2027 2028 Total Trunk Utility Fund 1,450,000 Total 1,450,000 Page 206 of 273 BOLTON & MENK Real People. Real Solutions. December 3, 2024 Mr. Justin Femrite, P.E. Chief Engineer City of Elk River 13065 Orono Parkway Elk River, MN 55330 RE: Meadowwoods Village Sewer Extension — Engineering Services Proposal Dear Mr. Femrite: 7533 Sunwood Drive NW Suite 206 Ramsey, MN 55303 Phone: (763) 433-2851 Bolton-Menk.com Bolton & Menk, Inc. appreciates the opportunity to submit this proposal to the City of Elk River for professional engineering services related to the proposed Meadowwoods Village Sewer Extension project. Project Background and Scope General Considerations The scope of the improvements are generally as described in the feasibility study previously completed by Lake Superior Consulting dated 5/30/2024. • Meadowwoods Village is located along Elk River Road (CR 1) and Ranch Road (CR 33). The development has 39 homes that have a shared sewer system. • The existing feasibility report recommends constructing a gravity system along Elk River Road to tie into the gravity sewer along Ranch Road. We will evaluate if the construction of a lift station and force main along the same route may be a preferred option considering the depth the gravity pipe would need to be installed and with the possibility of using parts of the existing lift station in the development. Work Plan Our work scope will include preparation of an update to the existing feasibility report considering the forcemain alternative. It will also include preliminary and final designs through bidding administration. We will also provide construction services including survey, inspection, and administration. Our assumptions and proposed approach are as follows: • Data Transfer: Receive GIS, CAD and Record Drawing files from City. • Preliminary Survey: We have included a topographic survey for the entire proposed improvement area. We will call a Gopher One locate as well for private utilities. We will also fly a drone to collect current imagery along the project area. H:\ELKR\$_City of Elk River MN\Meadowwoods Village Sewer Extension Proposal.docx Bolton & Menk is an equal opportunity employer. Mr. Justing Femrite, P.E. December 3, 2024 Page: 2 • Wetland Delineation: No wetlands are anticipated within the project area. • Easements & ROW: We anticipate only temporary construction easements will be needed for the gravity sewer option. We will create the temporary easement exhibits for these. We did not include any easement work for the HOA parcel or any of the HOA sewer system that will be turned over to the City. If these require easements we can create those as an additional service. • Feasibility Report: We will provide a memo evaluating the additional alternative of a lift station and forcemain. This will be an addition to the existing feasibility report. • Design Services: Includes sanitary sewer design and plan production. This will include preparation of plans and specifications in the standard City formats. • Soil Borings and Environmental: No geotechnical evaluations are included in this proposal. These will be needed if directional drilled forcemain is proposed. We can solicit a geotechnical contractor for bids at the City's request. • Project Specifications: This document will be prepared in accordance with City standards utilizing Bolton & Menk, Inc standard formatting. • Project Permitting and Utility Coordination: We will complete a sewer extension permit and an NPDES erosion control permit. The County ROW permit will need to be submitted by the selected contractor. • Bidding Services: We will solicit bids, answer questions, issue addenda if needed, open bids and prepare a letter of recommendation. • Construction Services: We will perform construction staking and provide a field representative during construction. We will also complete construction management tasks such as holding a preconstruction meeting, submittal reviews, weekly construction meetings as needed, pay request processing, contract processing, and final close out. • Construction Testing: This proposal does not include construction testing. We can solicit at testing contractor for bids at the City's request. In addition to the above items, meetings will occur at logical periods throughout the design process. We will prepare all exhibits and graphics for those meetings. Our Project Manager will attend all design - related meetings. Should any of the above -listed items that are not included in this proposal be requested, we will provide separate fee proposals as needed. Project Team Jason Cook, P.E. is the proposed Project Manager and lead Engineer, performing the design work tasks for the project. Andy Hill, L.S. will complete the platting process, Jon Nico, E.I.T. will be the lead CAD drafter and designer. H:\ELKR\$_City of Elk River MN\Meadowwoods Village Sewer Extension Proposal.docx Bolton & Menk is an equal opportunity employer. Mr. Justing Femrite, P.E. December 3, 2024 Page: 3 Project Schedule We understand the importance of meeting desired timelines to enable construction to occur in 2025 The below schedule assumes easements will not delay gravity design construction or that lift station controls and generators don't cause delays to the forcemain option. Item Date Notice to Proceed from City December 16, 2024 Plans and Specifications Complete February 28, 2025 Bid Opening March 31, 2025 Award Bid April 7, 2025 Construction Start May 2025 Substantial Completion November 21, 2025 Final Completion December 26, 2025 Project Fees Bolton & Menk will perform the work as described in the Work Plan. Our proposed fees for services are hourly, not to exceed, as follows: Business Center Drive Extension Topo Surveying, Drone Imagery, Temp Easements Design through Bidding Fee $ 16,313.00 $ 48,510.00 Construction Services Fee $ 57,608.00 Total Base Fee $ 122,431.00 Summary Bolton & Menk has field crews available to begin surveying and we also have engineers and technicians available to begin evaluating the lift station/forcemain alternative. If there are any questions, please contact me at the number listed below. Sincerely, Bolton & Menk, Inc. J--L� -W Jason W. Cook, P.E. Principal Engineer (763) 200-2444 H:\ELKR\$_City of Elk River MN\Meadowwoods Village Sewer Extension Proposal.docx Bolton & Menk is an equal opportunity employer.