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HomeMy WebLinkAbout9A - Interceptor & Lift StationMaintenance Center 17073 Aflelmann Street S.F_. Prior Lake, Minnesota 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA # PREPARED BY: March 21, 2005 9A Bud Osmundson, Director of Public Works AGENDA ITEM: CONSIDER APPROVAL OF A LETTER WITH RECOMMENDATIONS REGARDING THE METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES RECONVEYANCE OF A SEGMENT OF THE INTERCEPTOR AND LIFT STATION SERVING PRIOR LAKE DISCUSSION: The purpose of this agenda item is to request the City Council to approve a letter with recommendations regarding the Metropolitan Council Environmental Services (MCES) decision to reconvey or "tm-back" a segment of the Prior Lake sanitary sewer interceptor. A letter, a process flow chart, and a map showing the alignment of the pipe in question are attached for your information. In accordanCe with State Statute 473.5111, the MCES has determined that the portion of the sanitary sewer interceptor system from Manhole 70 (MH 70), at the intersection of County Highway 82 and County Highway 21, to, and including the lift station (L58) adjacent to our old maintenance shop at CH 21 and Adelmann St., is no longer of regional benefit. In other words, this segment of line only serves Prior Lake and no other communities. The MCES wants to "mm back" this segment of pipe in much the same manner as the County or State tums back a roadway that no longer serves a regional purpose. From MH 70 northerly along the CH 21 alignment, the interceptor still provides a benefit to the Shakopee Mdewakanton Sioux Community, so that portion would still b e owned and operated by the MCES. The City has 90 days to appeal this determination and respond in writing to the MCES if the City objects to the local benefit determination. City staff was aware that the MCES wanted to reconvey the lift station and force main to the City, but were unaware that the gravity line from Franklin Trail to CH 82 was also going to be reconveyed to the City. By legislation the City has two years to work out with the MCES staff a formal reconveyance agreement. MCES staff and City staff met and discussed this issue. The interceptor line is in good condition. We had the televised tapes of the line evaluated for structural stability and noticed only one small area of concern, which the MCES will probably repair if they haven't already. However, the long term ownership of this line could be a significant cost to the City in maintenance and replacement. www. cityofpriorlake, com Agenda apt letter c,n rccc. n;-cyanc, c~ 03 05 Phone 952.440.9675 / Fax 952.440.9678 It was constructed in the 1970's and could last over one hundred years without major repair. If a failure does take place in the line, however, a repair could cost well into the hundreds of thousands of dollars. With that in mind staff recommends that the City accept the reconveyance only if the MCES agrees to the following: 1. That the MCES include a full 10 year warranty for the reconveyed interceptor. Its current policy is to include only a sliding scale warranty during the 10 year period. However, Minnesota Statute Section 473.511 Subd. 7 (c) provides that "the (transfer) agreement may provide for the council to share in the cost of emergency repairs to the transferred interceptor for an agreed warranty period not to exceed ten years..." The statute does not mention a sliding scale warranty period. 2. That the MCES be required to reconstruct the Lift Station No. 58 to completely match the City Standardized Lift Station design. It currently i s a "can" type o f lift station that cannot be modified very easily. 3. That the MCES repair the line as we have found in our inspection of their video tapes. 4. That when the MCES reconveys the segment of the interceptor north of CH 82 which would include the SMSC flows, that the MCES credit the City the SAC units already paid and committed for the line, as is its current policy. This would allow the City to build a fund dedicated to the repair and replacement of the interceptor in the future when it is required. After City Council discussion on the proposed reconveyance, Council should direct staff to do one of two options: 1. Send a letter to the MCES stating that the City objects to the local benefit determination. 2. Send a letter stating that the City does not object to the determination, provided that the conditions enumerated above are incorporated into the "Reconveyance Agreement". The Council should make changes, if desired, to the attached letter, which summarizes the City's concerns identified by staff, and direct staff to send the letter. FISCAL IMPACT: Budget Impact The MCES action will not have an immediate or short term impact to the Sanitary Sewer operating or capital budgets. In the long term both funds will need to be able to withstand a significant impact when repairs or replacement are required Agenda app letter on reconveyance 03-05 ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: The altematives are as follows: 1. Approve the attached letter with comments regarding the MCES decision to reconvey a segment of the Prior Lake interceptor as presented or with modifications. 2. Table or deny this agenda item for a specific reason. Staff r~,~ umber 1. Frank Boy~ M~ager Agenda app letter on reconveyance 03-05 Maintenance Center 17073 Aflelrnann Street S.E. Prior Lake, Minnesota 55372 March 22, 2005 Mr. William Moore General Manager Environmental Services, Metropolitan Council 230 East Fifth Street St. Paul, MN 55101-1626 RE: City of Prior Lake comments on the Prior Lake Interceptor Reconveyance Dear Mr. Moore: Thank you for the opportunity to provide our input on the MCES's proposed decision to reconvey a segment of the Prior Lake interceptor to the City. At the March 21, 2005 City Council meeting, the issue of objecting to the MCES determination that the pipe in question has no local significance was discussed. The City Council also discussed whether to accept the reconveyance subject to certain conditions. The City Council will agree to the reconveyance if the following conditions are met by the MCES: · That the MCES include a full 10 year warranty for the reconveyed interceptor. · That the MCES be required to reconstruct Lift Station No. 58 to completely match the City Standardized Lift Station design. · That the MCES repair the line as we have found in our inspection of your video tapes. · That when the MCES reconveys the segment of the interceptor north of CH 82 which would include t he S MSC flows, t hat t he M CES credit the City the SAC units already paid and committed for the line, which follows your current policy. If you have any questions regarding these matters, please call me at 952.447.9890. Sincerely, Bud Osmundson. P.E. Director of Public Works Cc: Mayor and City Council Frank Boyles, City Manager Steve Albrecht, City Engineer www. cityofpriorlake, com Phone 952.440.9675 / F~ 952.440.9678 ~2~ Metropolitan Council Environmental Services February 10, 2005 Frank Boyles, City Manager City of Prior Lake 16200 Eagle Creek Avenue SE Prior Lake, Minnesota 55372-1786 SUBJECT: Council Actions regarding Interceptor MSB 7120 and Lift Station 58 Dear Mr. Boyles, On February 9, 2005 The Metropolitan Council approved placing the portion of interceptor MSB 7120 from Lift Station 58 to manhole 70 at Eagle Creek Avenue and 154a Street NW on the reconveyance list. Council actions included determining MSB 7120 and Lift Station 58 are in "good" operating condition and are a local benefit and naming the city of Prior Lake the benefiting unit of government. Based on the above Council determinations, and in accordance with Minn. State Sra. 473.5111, this letter is to notify the City that should the city of Prior Lake disagree with the "local benefit" determination the City must respond in writing and has 90 days I which to do so, by writing to; William Moore, General Manager, Environmental Services, Metropolitan Council 230 East Fifth Street Mears Park Centre, 6t~ Floor St. Paul, Minnesota 55101-1626 If the City does not object to the "local benefit" determination no reply to the Council is necessary and by legislation the City has two years to work out with Council staff a formal reconveyance agreement. Council staff will contact City staff to begin work on the reconveyance agreement. During this time frame Council staff will address concerns and issues City staff may have, as allowed by legislation. Should you have any questions please do not hesitate to call my staff Donald Bluhm, 651-602- 1116 Or Deborah Rose, 651-602-1479. Sincerely, ! William G. Moore, General Manager cc: '~Bud Osmundson, Bill Moeller, Donald Bhhm, Deborah Rose www. metrocouncil.org Metro Info Line 602-1888 230 East Fifth Street · St. Paul, Minnesota 55101-1626 * (651) 602-1005 * Fax 602-1138 * TrY 291-0904 An Equal Opportunity Employer 140TH ST NW Shakopee NE CARRIAGE HILLS PKWY FOX HUNT CT EAGLE CR !tZON DR ~c° MCGuiR , T ~, Lift Sra. Meter Gravity ........ Forcemain Siphon Other MCES Intercepton Community Boundary 138TH ST FOXTAiL TRL NW ~ LLJ 154TH ST NW MARSH H~NT S~F LE CiR BALSAM ST ec_~S~ff4G 5'~ ~70TH ST SW S COLORADO ST .~. vE~,E PLEAJSAN~ ST <~ RCP ~ PRIORWOOD ST '~ .~, ~ ANNA TRL SE ' VINE ST TOWER ST SE : ~t70TH ST E CROSS,NNDI~.j~ '.~T SE LU 15OTH ST SE 150TH ST SE : . . OAKRIDGE ., '~AgEs L~' % vl¢.~oR~AcP, w Cre tin W 153RD ST ~ S~age WHITE DR SUEL LN ive r Twp 170TH ST E wp. Mifinesota' Statutes 2004, 473.5111 ~ Page. 1 of 5 Minnesota Statutes 2004, Table of Chapters Table of contents for Chapter 473 473.5111 Transfer, disposal of nonmetropolitan interceptor. Subdivision 1. Definitions. In this section, the definitions in this subdivision apply, except as otherwise expressly provided or indicated by the context. (a) The term "in good operating condition" with reference to an interceptor means that the facility is currently operational and that the pipes or sewer mains portion only of the facility is expected to have structural integrity, as appropriate for the proposed use of the pipe, for a period of ten or more years after the date of a determination or certification of good operating condition under this section. (b) The term "interceptor" has the meaning given it in section 473.121, subdivision 23, and includes a designated portion of an interceptor. (c) The term "local government unit," with respect to an interceptor that is a storm sewer, means a local governmental unit as defined in section 473.121, subdivision 6. The term local government unit, with respect to an interceptor that is not a storm sewer, means a local government unit as defined in section 473.501, subdivision 3. (d) The term "storm sewer" means a facility that currently carries exclusively water runoff, surface water, or other drainage, rather than sewage. (e) The term "use as a local facility" includes use as either a sanitary sewer or a storm sewer. Subd. 2. Nonmetropolitan status determination. The council may determine that an interceptor is no longer needed to implement the council's comprehensive plan for the collection, treatment, and disposal of sewage in the metropolitan area. If the council makes the determination, it may use the procedures in this section to sell, transfer, abandon, or otherwise dispose of the interceptor. Subd. 3. Local benefit determination; transfer to benefited community. (a) If the council uses the procedures in this section, it must, with regard to each interceptor for which the determination is made in subdivision 2, determine whether or not the interceptor continues to be of benefit for use as a local facility for one or more local government units. If the council determines that the interceptor does not continue to be of benefit as a local facility, it must notify each local government unit in which the interceptor is located, of this determination. (b) Such a government unit may notify the council in writing within 90 days from receipt of notice that'it believes http://www, revi s or. 1 eg. state, rn n. us/stats/473/5111, htm 1 12/8/2004 Mihnesota' Statutes 2004, 473.5111 Page 2 of 5 the interceptor provides a local benefit to the government unit and that it desires to take possession of the interceptor. The council may extend the time for a government unit to provide this notice. If a government unit delivers a written notice to the council in accordance with this paragraph, the council must transfer the interceptor at no cost to the government unit by preparing and transmitting a bill of sale for the facility and quit claim deeds for any property rights associated with the facility that are no longer needed for the council's purposes. Upon receipt of the bill of sale, the government unit is the owner of the interceptor and thereafter responsible for its operation and maintenance. (c) If the council does not receive notice from a government unit under paragraph (b), the council may sell, transfer, abandon, or otherwise dispose of the interceptor in such manner as it may deem fit. Subd. 4. Preliminar~ council determinations; notice to local government units. If the council determines that an interceptor continues to be of benefit for use as a local facility for one or more local government units, it must designate those units that are so benefited and the portions of the interceptor that should properly be transferred to the benefited units. It must also determine whether the interceptqr good operating condition ~nd, ~ the necessary is in ~epa~rs~_ an~ ~heir cos~, ~eed~d~to put the interceptor in good operating condition. The council must provide written notice each designated unit of the council's determinations in this subdivision. Subd. 5. Contested case; administrative and judicial review. (a) The council's preliminary determinations under subdivision 4 may be contested by a local government unit which has been designated by the council under that subdivision. The unit has 90 days from receiving notice of the council's determinations under subdivision 4 within which to make a written request to the council for a hearing on the council's determinations. The unit in its request for hearing must specify the determinations with which it disagrees and its position with regard to those determinations. If within 90 days no designated unit has requested a hearing in writing, the council's preliminary determinations become its final decision with respect to the determinations under subdivision 4 and the final decision is binding on all designated units. If a designated unit requests a hearing, the request for hearing must be granted and the hearing must be conducted by the Office of Administrative Hearings in the manner provided by chapter 14 for contested cases. The subject of the hearing must extend only to those council determinations under subdivision 4 for which a hearing has been requested. The council and all local government units designated by the council under subdivision 4 are parties to the contested case proceeding. (b) Charges of the Office of Administrative Hearings must be divided equally among the council and those parties who requested a hearing under paragraph (a) . Otherwise, each party is responsible for its own costs and expenses in the proceeding. (c) After receipt of the report of the Office of http ://www.revi sor.leg, state, mn.us/stats/473/5111 .html 12/8/2004 Minnesota' Statutes 2004, 473.5111 Page 3 of 5 Administrative Hearings, the council must make a final decision with respect to the determinations in subdivision 4. Any party to the contested case proceeding who is aggrieved by the final decision of the council may make a judicial appeal in the manner provided in chapter 14 for contested cases. Subd. 6. Council options. (a) If the council's final decision after a proceeding under subdivision 5 is that the interceptor does not continue to be of benefit for use as a local facility, it may sell, transfer, abandon, or otherwise dispose of the interceptor in such manner as it may deem fit. (b) If the council's final decision is that the interceptor continues to be ~-f benefit for use as a local facili~~-~-~l~ not in good operating condition, i~ may either: _ (1) continue to operate the interceptor until sold, transferred, abandoned, or otherwise disposed of in such manner as it may deem fit;~ or (2) r.~pair the interceptor as necessary to pu~ the ~nterc~ept0r in qood operating condition, certify that it is in good operating condition, and proceed ~nder subdivision 7. (c) If the council's final decision is that the interceptor continues to be of benefit for use as a local facility and is in good operating condition, it must proceed under subdivision 7. Subd. 7, Transfer agreement; local benefit charge; transfer to benefited community. (a) This subdivision applies if an interceptor designated in subdivision 2 continues to be of benefit as a local facility and is determined or, after repair is certified, by the council to be in good operating condition. (b) The council and each local government unit that has been determined to have a benefit in accordance with the procedures in this section must negotiate and enter into an agreement governing transfer of an interceptor that has been determined to have benefit for use as a local facility. (c) The agreement may provide for the council to share in ~ the cost of emergency repairs to the transferred interceptor fo rj an agreed warranty period not exceeding ten years beyond the later of: (1) the date of the preliminary council determination of good operating condition in subdivision 4; or ('2) the date of the certification in subdivision 6, paragraph (b), clause (2). (d) The agreement may also contain arrangements between one or more local government units concerning shared use, ownership, operation, or maintenance of the transferred interceptor. (e) If the interceptor is not a storm sewer and is not transferred in its entirety to local government units, the council must charge a local benefit charge for the portions of the interceptor not transferred. http ://www.revi sor.leg, state.mn.us/stats/473/5111 .html 12/8/2004 Minnesot~i Statutes 2004, 473.5111 Page 4 of $ (f) The charge must begin on the later of: (1) two years from the date of the determination in subdivision 2; or (2) the day after the completion of any contested case proceeding under subdivision 5, including any judicial appeals. (g) The local benefit charge must be: (1) based on the costs of overhead, operation, maintenance, rehabilitation, and debt service of that portion of the interceptor not transferred; (2) charged to all local government units which have not taken ownership of their allocated portion of the interceptor; and (3) allocated in accordance with the final decision of the council under subdivision 5. (h) The local benefit charge is considered a charge payable by the local government unit to the council under section 473.521 and must continue to be paid by the local government unit until the interceptor is transferred to it. (i) If the facility is a storm sewer and is not transferred in its entirety to the benefited local government unit or units by the later of: (.1) two years from the date of the determination in subdivision 2; or (2) the day after the completion of any contested case proceeding under subdivision 5, including any judicial appeals, then the facility is transferred effective on the later of the dates in clauses (1) and (2), by operation of law, to the unit or units determined to have a benefit in accordance with the procedures under this section. (j) The transfer is not dependent on an agreement between the council and the local government unit or units and is at no cost to the receiving unit. (k) The local government unit is thereafter the owner of the interceptor and responsible for its operation and maintenance. (1) The council must prepare and transmit to the appropriate government unit or units bills of sale for the facility, and quit claim deeds for any property rights associated with the facility which are no longer needed for the council's purposes. Subd. 8. Power to operate, maintain, and repair facility. Until such time as an interceptor is sold, transferred, abandoned, or otherwise disposed of under this section, the council has all powers under this chapter to operate, maintain, and repair the interceptor. After transfer http ://www.revi sot.leg, state.mn.us/stats/473/5111 .html 12/8/2004 Minnesota Statutes 2004, 473.5111 Page 5 of 5 of an interceptor, the council has all powers under this chapter to provide emergency repairs under any agreed warranty period incorporated into a transfer agreement under subdivision 7. HIST- 2002 c 278 s 1 Copyright 2004 by the Office of Revisor of Statutes, State of Minnesota. http ://www. revi sot. 1 eg. state, mn.us/stats/473/5111 .html 12/8/2004