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5.10. SR 01-16-1996ty of ITEM 5.10. MEMORANDUM iver Mayor & City Coun~ FROM: Pat Klaers, City A~t/Jator DATE: January 16, 1996 SUBJECT: 1994 Policy Change In late fall of 1994, the City Council was requested to "loosen up" our city engineering policy. The request was to allow private engineers to do public improvement planning work for private development projects that were financed by the developer. Please see the attached material on this fall, 1994, request. The pre-October 17, 1994, city engineering policy stated that any plans that had to do with a city street and a public improvement project was required to be completed by the city engineer. The City Council approved a change in this policy on October 17, 1994, in Resolution 94-105, which allowed developers to use another engineer other than the city engineer for certain types of public improvement planning work. The motion which approved this change in the city policy also requested a review in a year on how things have worked out. Some developers, especially developers in the western part of the city, have taken advantage of this change in policy and, as a result, private engineering firms such as John Oliver and Associates are now doing work for private developers that formerly could only be completed by the city engineer. Not everything has gone perfectly with this change in policy, but there has not been enough problems to request a change back to the pre-October 17, 1994, policy. Overall, things are working okay and there is no reason to change Resolution 94-105. City Engineer Terry Maurer will provide a verbal update on how this October 17, 1994, city policy change worked out in 1995. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 .y of iver ITEM 5.2 MEMORANDUM TO: FROM: DATE: SUBJECT: MAYOR & CITY CO'UNCIL PAT KLAERS, CITY ~?I~ATOR RESOLUTION 89-12 WHICH ADOPTED CERTAIN POLICIES REGARDING ENGINEERING SERVICES FOR DEVELOPMENT PROJECTS The City has received a request from John Oliver and Associates to change our City policy on utility projects. Currently, on all projects, whether City financed or developer financed, the City requires the plans and specifications to be put together by the City Engineer. Also, the City Engineer is charged with inspecting the projects to ensure that they are installed correctly and that everything meets with the City's standards. In the late 1980's, the City experienced some problems where firms hired by developers to "engineer" their projects were cutting corners and not putting in projects to City standards. The City would inspect ~these projects and identify problems, then changes would be required and increased costs would be incurred, and, consequently, more complaints would be brought before the Council. In order to eliminate duplication of services and to ensure that all projects met City standards, the City initiated a new policy in 1989 whereby all improvement projects, either privately or publicly financed, would have to be prepared by the City Engineer. All cities deal with developers and public improvements differently, but this policy of the City is ~t ~consistent with how other cities handle this situation. In fact, since this policy was adopted in Elk River, we have not experienced the same problems that we had in the late 1980's with projects being put in that did not meet City standards. Attached for your review are the minutes and resolution from 1989 when this policy was approved by the City Council. Also attached for your review is a request from John Oliver and Associates to change our City policy. The final attachment for your review is some information from the City Engineer regarding under what conditions would the changing of the City policy be acceptable and still ensure that the project meets City standards. P.O. Box 490 * 13065 Orono Parkway * Elk River, MN 55330 · (612) 441-7420 * Fax: (612) 441-7425 From my understanding, ff a registered Engineer signs off on the plans and specifications, and, if the project is privately financed, and, if the developer understands that the City still is obligated to review and approve the plans and specifications and inspect the construction (which means City engineering expenses in addition to their private engineering expenses), then we have no problems with changing our City policy. The problems we had in the late 1980's related to plans and specifications that were not completed by registered engineers and to shortcuts in the designing of the project, and in shortcuts in the installation of the project all being done in an effort to cut development costs (and raise profits). The City's infrastructure cannot be developed in this manner as the City is the one that is obligated to maintain the system once it is installed. The City has not experienced any problems since the policy adopted in 1989 has been in place. However, we are willing to look at a change under certain conditions and believe that we can manage privately financed projects simply through the review and inspection processes, and that we don't have to do the plans and specifications as a City provided they are completed by a registered engineer. The Council should note that it is under no obligation to change our existing policy if everyone is comfortable with how things have been going and no changes are desired. On the other hand, if the Council does want to loosen up this City policy, staff has no problems with this provided that some requirements, as outlined in the City Engineer's memo, are attached to the loosening up of this policy. If the Council wants some policy changes, we would recommend that they direct staff to prepare a resolution amending Resolution 89-12. ' ~ s:\council\amnd8912.doc RESOLUTION 89- 12 A RESOLUTION OF THE CITY OF ELK RIVER A RESOLUTION ADOPTING CERTAIN POLICIES REGARDING ENGINEERING SERVICES WHEREAS, the City of Elk River (the City) has adopted subdivision regulations pursuant to Minnesota Statutes 462.358 setting forth subdivision regulations and design criteria for public improvements; and, WHEREAS, the City has adopted engineering standards to insure and protect the public investment in and use of streets, sanitary sewers, municipal water and storm sewer systems; and, WHEREAS, strict adherence to these standards in the design and construction of public services are necessary to protect the investment in the public interest and welfare of the City; and, WHEREAS, the City has experienced problems in uniform adherence to the design and construction of public improvement~ resulting in delays and unnecessary costs; and, WHEREAS, the City deems it in the public interest that the design of final engineering plans and inspection of'the installation of public improvements be conducted by the City's designated City engineer. NOW, THEREFORE, BE IT RESOLVED that the City of Elk River does hereby adopt the policy that a~~g ~ c~ction ser_v_J_ce~_b_e_p_~_~--~o~d by th_~_~~_i~le_e~ re_~_~a~nl _ea Dy ~0~tr.a__c_ct__or empAo~ent and that the costs ~ s s 6 c i-a~i~.~_~ e s e-s e-r v-i~~ g e~t h e eveloper or proponent of the improvements by project. Passed and adopte~by the City Council of the City of Elk River this 6th day of February, 1989. James A. Tra!le, Mayor ATTEST: Patrick D. Klaers, City Administrator .~FC_ei=Y Council Mi~ bruary 6, 1989 __/_ ' Page 5 5~.8. City Engineer Policy for Urban Improvement Projects The City Engineer submitted a proposal to the Council which would require urban developers to use the City Engineer in lieu of their own engineer. He stated that several problems arise by allowing developers to use their own engineer, some of which are efficiency; coordination of projects; compliance to City and State laws; less City Staff involvement; overall scope; and interest conflict. COUNCILMEMBER KROPUENSKE MOVED TO ADO.Of. RESOLUTION 89-12, A RESOLUTION ADOPTING CERTAIN POLICIES REGARDING ENGINEERING SERVICES. COUNCILMZM~ER DOBEL SECONDED TF.E MOTION. THE MOTION CA~F_D 4-0. 5.9. Central Business District P~verbank Erosion Update The City Engineer__ indicated that he has,contac a number of agencies to inquire abo~t programs that help fund erosion control projects along river banks. ~e indicated that the only pro, am that could possibly help fund an er0sm~n control project is coordinated by the Sewer and Water Conservation' D~trict. He further indica ed that applications for this program are due_~Apri!~ 1, 1989. CO Cz UN .LP[EP[BER _KRO~UENSKE MOVED TO AU%~HO E %"HE CITY ENGIA~ER TO FOLLOW UP ON THE PO~SIB_iLI~ OF RECEIVING MONEY RIVERBAk~< EROSION SOLUTIONS. COUNCILMEMBER SCHULDT SECONDED THE MOTIf THE MOTION CA~ED 4-0. 5.10.Waco Street Bridge Terry Maurer, City ineer, possibility of future ~iiable fun over the Elk River at Street. be some MSA funding for :his hr: Council that this bridge ~ussion (North ol 10) that he has been checking into the for the construction of a bridge He stated that there would possibly e. It was the consensus of the City COUNCIL~ER DOB~N. MOVED TO COST OF CONSTRUCTING A BP. II COUNC!LMF-U~ER SCHD%DT SECONDED THE CITY ENGINEER TO 'INqrESTIGATE THE AT WACO STREET OVER THE ELK RIVER. MOTION. THE MOTION CARP~IED 4-0. 5.11."Dam" Brid~e Uodate The City Engineer informe the C~nci! that the Sherburne County P~storica! Society hal requ~ d ~o qualify the bridge at Main Street and 0rono Road as a His~oric~ bridge and ~u!d, therefore, like the bridge preserved. The City Engineer stated ~az the bridge is in very poor condition and stated tha]/i~ should be jesuit. He indicated he and Phil Hals, Street Suoerinten~nt, would b~ doing~ome investigation into this matter and would be ~ontacting the Histo~ica! Society with their findings. / ~ 6.1. Call Special City Council Meetin~ ~ae Ci[y Administrator indicated that due to the agenda being completed at this meeting, there was no need to call for a special Council meening to finish this agenda. Civil Engineering Land Surveying Land Planning John Oliver & Associates, Inc. 580 Dodge A~,enue: Elk River, MN 55330 (612) 441-2072 · Fa~: 441-5665 September 15, 1994 Honorable Mayor and Council City of Elk River 13065 Orono Parkway Elk River, Minnesota 55330 Re: Engineering Services Policy Dear Mayor and Members of the Council: We have had considerable discussion with Cit~ Staff and the City Engineer regarding.the current City policy of Engineering design of utilities in private developments. The present Policy mandates that the City Engineer designs all Sanitary Sewer and Water facilities. We feel it is appropriate that this policy should be reviewed and modified. We formally request the policy be modified so that a land owner or developer can privately engineer, construct, and finance the improvements for a development. We understand the City must maintain control of the design standards used for the utilities to standardize the systems and minimize the long term maintenance requirements. We would therefore suggest that the following procedures be followed: The City Engineer'should review and approve the plans and specifications for compliance with City standards and standard engineering practice. The plans and specifications shall be signed by a Professional Engineer licensed in the State of Minnesota. The Developers Engineer would be required to design and inspect the improvements and certify to the city that the facilities were constructed in accordance with the plans and specifications. The City or City Engineer would provide periodic inspections of the construction when appropriate and be present when all system acceptance tests are performed. The City Engineer would acknowledge that the project is acceptable based upon review of all normal acceptance tests and recommend to the City they accept the improvements. Page 2 September 15, 1994 Honorable Mayor and Council The City Engineer would have authority to question the construction operations during installation and recommend modifications to the construction if conformance with City standards is not being made. The City Engineer would have authority to stop work if non-conformance persists. This authority should be a condition of the developers agreement. We believe the design Engineer must have control of the construction inspection to provide the necessary continuity from the design through construction. The best of designs can become failures if quality control is not maintained through construction. Our experience has shown that when the design Engineer does not have responsibility for the construction, the project results are of less overall quality. We believe our common goal should be the best quality system for the taxpayers of the City of Elk River at the most economical cost. Thank you for consideration Of the suggested policy change. We feel the change is a positive step which will enhance the growth potential of the City of Elk River by offering some additional options to potential developers, not now available. We will be present at the Council meeting to answer any questions. Sincerely, John Oliver & Associates, Inc. ~a~s~e~ SEP-- 16--94 FR I 18 : 18 MSA ST PAUL P. 04 '~1 T ~T' ~' CIII,~It,TI.~I~ IL%l~iffi'.~ September 16, 1994 File: 230-000-00 ~, NVIP. ONM~N[~i MUNICI?AI PLANNING W,~ t J'5?C;~ .fA 1326 Energ¥?orkDr~ St. PouI, MN55108 612-644-4389 Far 612-644-9446 Mr. Pat Klaers City Administrator City of Elk River 13065 Orono Parkway P.O. Box 490 Elk River, MN 55330 PRIVATE IMPROVEMENT PROJECT ENGINEERING SERVICES Dear Mr. Klacrs: I understand that John Oliver and Associates has requested that thc policy requiring all public and private utility improvement projects be designed by City staff be open for discussion. As you are aware, this policy was established by resolution of the City Council in February 1989. The policy was in response to numerous problems on private development projects with engineering services provided by others. Some of the typical problems the City encountered included plans not certified by a professional registered engineer, no specifications provided, major components of the projects-Omitted during construction or constructed incorrectly, and projects proceeding without the appropriate permits from the regulatory agencies. Since the City Council adopted the current policy in 1989, there have been no reoccurrences of these types of problems. Essentially the policy has served the City very well. However, there has been one major change in that John Oliver and Associates now has an engineering department. This gives them the personnel and expertise to provide the engineering function in a professional manner. If the City Council wants to consider a change in this policy to allow privately financed improvement projects to have engineering services provided by the engineer of the developer's choice, I would recommend that it be conditioned upon the following items: Private engineering services could only be provided on privately financed improvement projects. Improvement projects which arc publicly financed would follow 429 assessment law and would by definition have services provided by City staff. 9800 Shelard Parkway Minneapolis, MN 55441 612'546-0432 Fax: 612'544'6398 All private engineering projects have a complete set of detailed plans and specifications certified by a registered professional engineer in the State of Minnesota. Honorable Mayor and City Council September 16, 1994 Page Two City staff would still provide a detailed review and approval of the project plans and specifications and provide construction inspection services. The developers need to understand that there will be City expenses and time involved in the review of the plans and specifications. The developer would be responsible for applying for and receiving all necessary permits from the regulatory agencies. Proof of receipt of these permits would need to be provided to the City prior to initiating any construction. o City staff would prepare a detailed listing of materials to be supplied on these improvement projects and a listing of minimal design standards that are to be followed on all projects. The project plans and specifications would then be reviewed by City staff using these design standards and material listing as the basis for review. I believe a change in policy with these recommended guidelines would certainly allow John Oliver and Associates and several other firms to begin to do engineering work in the City of Elk River. With the growth of City staff and the evolution of the public improvement process within the City, I believe we are better equipped than we were several years ago to review plans and specifications prepared by others and to ensure a quality product that meets all the City's standards and expectations. Please let me know how you would like to proceed with this issue. I am prepared to immediately begin work on a listing of City standards to be used by private consulting firms in the preparation of plans and specifications for work wi~in the City of Elk River. Sincerely, MSA, CONSULTING ENGINEERS aurer, P.E. TJM: tw O00-1604.s~p City Council Minutes September 19, 1994 Page 3 5.2. Consider request to chan.ae Resolution 89-12 which adopted certain policies reqardincl en.qineerinq services for development projects The City Administrator indicated that the City has received a request to change its policy regarding engineering services for development pr0]ects. He explained that the current policy requires the City Engineer to provide the engineering service for all public improvement projects in the City of Elk River. Terry Maurer, City Engineer, indicated that the firm of John Oliver and Associates is requesting the City to change its policy to allow a landowner or developer to hire their own engineer to design, inspect, and bid the improvements for a development. Terry Maurer stated that if the Council considers this type of change, private engineering services should be provided only on privately financed improvement projects. He further suggested that the project plans and specifications should be reviewed by the City Engineer for all projects and the City should inspect the installation of the improvements. Lynn Caswell from John Oliver's Office stated that developers would like the flexibility of choosing their own engineer. Councilmember Scheel stated that she liked the idea of a developer being able to choose their own engineering service. Mayor Duitsman stated that he would still want the City to inspect the projects. Councilmember Farber questioned whether a change in the policy would slow down the process and whether the City would be stuck with more expenses. Councilmember Holmgren indicated that this is a significant change to a policy that has been working well. He indicated that he would like more time to review the request and existing policy prior to making a decision. COUNClLMEMBER SCHEEL MOVED TO CONTINUE THIS ITEM TO THE OCTOBER 17, 1994, CITY COUNCIL MEETING. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.3. Update on street projects: 221st Avenue; Concord Street; Edison Street; Gates Avenue/3rd Street Intersection 221st Avenu~e .x~ / Steve Rohlf, Building and Zo~i~ng Administrator,/6pdated the Council on the 221st Avenue road alignment pro]e~xt. He indicat,~:l_ t_h~a,t the project is anticipated to be complete this year if the wetl~procT~s not appealed. Concord Sfreef X~ . _ City Engineer, Terry Maurer, indicate~ t~t the Cih/ has received 6 out of 15 easements for the Concord Street i~pr.ove..~nt project. He indicated that all easements are necessary prior to bTinn,ng reelect. Councilmember Dietz ~ ye City Engineer't~c. ontact all of the property owners along ConcorcfS~c~ Cee where ~ach own'~r stands on the issue. He requested the City Engineer to report back to the Council with this information. City Council Minutes October 17, 1994 Page 3 5.4. Consider Personne! Request forW,~ ~ City Administrator Pat Klaers/rndicat~d that the WWTS Superintendent is requesting permission to adverse for a ~11 time employee, with a start date of 1/2/95 to replace Ken Nelso/~'who resigne~:J June 6, 1994. He indicated that the Superintendent is requestir)g to upgrade tl~,e position to an electro-mechanical technical/W.W.T.S. OpTor. ~, There was council consensus to delay action on this item until the WWTS Superintendent ardved. 5.5. Consider Request to Chanqe Resolution 89-12 Which adopted certain policies reqardin.q en.qineerinc~ services for development projects The City Administrator indicated that a request has been made for the council to consider changing the City's engineering policy. He indicated that this issue was discussed at the September 19, 1994, City Council meeting at which time it was continued for further review. The Council discussed what recourse the City would have if work by a private engineer was done unsatisfactorily. It was indicated that the City is ultimately responsible for the project, Lynn Caswell of John Oliver and Associates indicated that the plans and specifications would be inspected by the City's engineer. He indicated that a change in the policy would not put the City at risk. Councilmember Holmgren indicated that the City should try the policy for a year as outlined by the attached resolution. Councilmember Dietz indicated that he wanted all outside engineering firms to be aware that there could be a duplication of cost and effort. Mayor Duitsman indicated that he is in favor of private development but is concerned that problems may arise from developers moving ahead with projects prior to City Engineer review of the design work. He indicated that if this happens, this policy will come back to the Council for reconsideration. Councilmember Farber indicated that if the new policy is adopted, it is important that the City be included in the inspection process and that plans are prepared by a registered engineer. COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 94-104, A RESOLUTION ADOPTING CERTAIN POLICIES REGARDING ENGINEERING SERVICES, WITH THE UNDERSTANDING THAT THIS POLICY BE REVIEWED BY THE COUNCIL BEFORE DECEMBER 31, 1995. COUNCILMEMBER SCHEEL SECONDED THE MOTION. The City Attorney suggested minor language changes in the last paragraph of the resolution. City Council Minutes October 17, 1994 Page 4 The maker of the motion and the second concurred with the language amendments proposed by the City Attorney. THE MOTION CARRIED 5-0. 5.4. Consider Personnel Request for WWTS This item was tabled from earlier in the meeting until the WWTS Superintendent was present. Darrell Mack, WWTS Superintendent was present at this time to answer ~estions. Darrell :k indicated that an employee with electrical training would benefit the City id save several thousand dollars a year service calls. Mayor Duitsman what charges have been mad in the past for electrical work. Mack indicated that a service call is $400 minimum. He indicated the charges for the last four years hav been about $4,500. Mayor Duitsman que ioned whether this employee would e available to work in other departments s his expertise in electricity needed. Darrell Mack indicated that would be possible. 5.8. COUNCILMEMBER TO ADVERTISE ELECTRO-ME HOUR DEPENDING THE MOTION. THE Consider request fo ~REN MOVED TO AUTH A W.W.T.S. OPERATOR TECHNICIAN, AT A QUALIFICATIONS. CARRIED 5-0. Beer Licen R~ THE W.W.T.S. SUPERINTENDENT THE QUALIFICATIONS OF AN OF $17.75 - $20.75 PER LMEMBER FARBER SECONDED ~erAmerica The City Clerk indicated intoxicating malt liquor off-sale has made application to sell non- new location on 193rd Avenue. 5.9. Councilmember Scheel she does not like the idea of gas stations selling 3.2 beer. COUNClLMEMBER FARBER MOYi~D TO AJ~ROVE A NON-INTOXICATING OFF SALE MALT LIQUOR LICENSE FOR SUPi-'RAMERICA\\AT 193RD AVENUE. COUNCILMEMBER DIETZ SECONDED THE MOTION/ THE MOTIX~N CARRIED 4-1. COUNClLMEMBER SCHEEL OPPOSED. / '~\x Consider Request for ExemStion from Lawful~'~Gamblinq License by Proper Economic Resource Mana.qe1 lent (PERM) \. / The City Clerk indicated t~at PERM is requesting an Exemption from Lawful Gambling license that will/~llow them to hold a one-day raffle at Broadway Bar and Pizza. Perm is a nonppfit organization that supports the protection of Natural Resources. COUNCILMEMBER DIETZ MOVED TO APPROVE THE EXEMPTION FROM LAWFUL GAMBLING LICENSE FOR PROPER ECONOMIC RESOURCE MANAGEMENT TO HOLD A RAFFLE AT BROADWAY PIZZA ON MAY 2, 1995. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. RESOLUTION 94-1o5 A RESOLUTION OF THE CITY OF ELK RIVER A RESOLUTION ADOPTING CERTAIN POLICIES REGARDING ENGINEERING SERVICES WHEREAS, the City of Elk River (the City) has adopted subdivision regulations pursuant to Minnesota Statutes 462.358 setting forth subdivision regulations and design criteria for pubhc improvements; and, WHEREAS, the City has adopted engineering standards to ensure and protect the pubhc investment in and use of streets, sanitary sewers, municipal water, and storm sewer system.~¢; and, WHEREAS, strict adherence to these standards in the design and construction of pubhc services are necessary to protect the investment in the public interest and welfare of the City; and, WHEREAS, the City deems it in the public interest that the review of the final engineering plans and specifications and inspection of the installation of public improvements be conducted by the City's designated City Engineer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota: 1. Resolution 89-12 adopted February 6, 1989, is hereby rescinded. Plans and specifications for privately financed public improvement projects may be prepared and certified by a Registered Professional Engineer in the State of Minnesota other than the City's designated City Engineer. All publicly financed improvement project plans and specifications shall be prepared by the designated City Engineer. o Plans and specifications prepared by other than the designated City Engineer must be reviewed and approved by the City Engineer prior to initiating construction of the improvements. All construction of public improvements shall be inspected and approved by the City Engineer or his agent prior to acceptance by the City. Preparation of plans and specifications and inspection of construction shall be in accordance to the City Standards and all apphcable State and Federal regulations. The developer would be responsible for applying for and receiving all necessary permits from the regulatory agencies. Proof of receipt of these permits would need to be provided to the City prior to initiating any construction. NOW, THEREFORE, BE IT FURTHER RESOLVED, that the cost associated with review of the engineering plans, inspections, and construction services performed by the City Engineer for the benefit of a development project be charged to the project. Passed and adopted by the City C(~uncil of the City of Elk River this 17th day of October, 1994. ATTEST: gan(ira A. Thackeray, City Clerk/ ,,/H~ ,nf~ A. Duitsman, Mayor