HomeMy WebLinkAbout8D - Cates Oak Island Addition
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
BACKGROUND:
DISCUSSION:
STAFF AGENDA REPORT
3D ~X~\
FRANK BOYLES, CITY MANAGER
CONSIDER APPROVAL OF JOINT P RS
AGREEMENT FOR TEMPORARY SEWER AND WATER
EXTENSION TO CATES OAK ISLAND ADDITIONS IN
SAVAGE
OCTOBER 2, 1995
The City of Savage has requested the extension of Prior
Lake sewer and water services to the Cates Oak Island
area in an effort to address serious environmental
problems which have been identified by a certified
inspector and confirmed by the Minnesota Department of
Health. The project involves the phased extension of
sewer and water services to "in place" subdivisions in
Cates Oak Island and a subsequent extension of sewer and
water services around Cates Lake to serve the first phase
of the new West Summit Oaks subdivision in 1996. No
further phases of the new West Summit Oaks Subdivision
will be permitted to develop until the City of Savage
extends municipal services to this area and eliminates the
temporary connections to Prior Lake. This memorandum
requests City Council action on the proposed Joint Powers
Agreement which would effectuate this request.
The City Council has received various materials with
respect to this matter, including:
. A letter from Savage Public Works Director Dave
Hutton requesting that the City Council consider
this project.
. A report from Public Works Director Larry
Anderson dated August 7 summarizing the proposed
project and including a draft joint powers agreement
16200 ~~~R9we. S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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intended to protect the rights of both parties if the
extension were to take place.
. A letter from Steve King dated August 31, 1995
which further addresses and amplifies upon areas of
specific Prior Lake concerns.
In addition I am including or making available to the
Council the following:
a) A feasibility report for this project which was
completed by Savage earlier this year. A copy is
available in my office. I have not attached it
beca use of its size.
b) A report from the Metropolitan Council approving
the City of Savage's request to serve the Cates Oak
Island area by land trade and through extension of
municipal sewer and water services from Prior
Lake.
c) A September 26, 1995 letter from Dave Hutton
addressing a number of concerns regarding the
draft joint powers agreement.
ISSUES:
The Council has had an opportunity to discuss this issue
formally and informally. Most discussion took place at the
1996-2000 Capital Improvement Program workshop.
From that discussion a number of conclusions and Issues
have been identified::
1) The Council has concluded that it is appropriate for
the City of Prior Lake to help the City of Savage and
the Metropolitan Council to resolve a significant
environmental dilemma. Prior Lake is uniquely
situated to render this assistance and Savage is
incapable of resolving the issue themselves.
2) It is not appropriate for the City of Prior Lake to
add development capacity for new subdivisions in
Savage unless the project areas are inextricably
connected financially or from an engineering
feasibility perspective and therefore cannot be
divided.
AGCA TES.DOC
3) The Prior Lake taxpayer must not in any way
subsidize this cooperative effort. Nor should the
City of Prior Lake be diminished in any way, shape
or form with respect to metropolitan sewer or water
capacity.
4) The veracity of the septic system inspections must
be verified.
5) Project phasing should be identified.
6) This extension is not be precedent setting for the
sewer and water to commercial areas such as
Highway 13 and County Road 42.
Under Savage city code septic inspections are conducted
biannually. The process they use is very thorough and
involves a state certified inspector. When questions arise
they have called in the Minnesota Department of Health
for technical assistance. Our conclusion is that, lacking
evidence to the contrary, the dimension of the septic
system problems as outlined by the City of Savage are
accurate. I am not aware of residents who claim that the
findings are inaccurate who have also offered written
verification from a certified inspector to support their case.
Some have expressed concern that this proposal is really
intended to provide more development capacity to Savage.
My findings contradict this. First, the area involved is too
small to provide substantial development capacity. Only
180 units, 87 of them which are in existing subdivisions
are involved. Second, Savage has had to trade
approximately 40 acres out of the MUSA to add these 40
acres to its metropolitan utility capacity. If development
capacity were really the issue it seems unlikely that a land
trade would have been used as the mechanism. Finally,
Savage has provided data that shows that the new
subdivision must be served by this extension temporarily
to complete the looping of the utilities which is important
from an engineering perspective and to defray some of the
substantial costs associated with this project. Moreover
this proposal does not provide for development of the new
AGCA TES.DOC
ALTERNATIVES:
AGCA TES.DOC
subdivision all at once but, instead, phases sewer and
water service to the first addition of West Summit Oaks.
This proposal deals with the Cates Oak Island and the
West Summit Oaks areas only. It is not precedent setting
for the Savage commercial areas at T .H. 13 and CSAH 42.
Savage Public Works Director Dave Hutton has confirmed
this fact in the letter he supplied earlier this week. Those
areas are to receive utility extensions within the next two
or three years a~d are therefore not likely to be subject to
this sort of request.
The Joint Powers Agreement (attached) has been prepared
to protect the rights of Prior Lake taxpayers and our sewer
and water systems. The agreement calls for a maximum
number of lots to be served (180), a maximum life span of
the agreement (10 years), phasing for sewer and water
services, payment to Prior Lake for services rendered, hold
harmless agreements, maintenance responsibilities by
Savage, project assessment, construction and
administration by Savage and a means of protecting Prior
Lake's sewer and water allocations. In short, the
agreement attempts to protect the city in every way
possible while solving a bona fide environmental issue.
Attached is a copy of the Joint Powers Agreement. Since
it was last reviewed by the Council the following changes
have been made:
. The total number of units have been changed from
175 to 180.
. Language has been added about phasing of the
sewer and water extensions.
. Language has been added which allows for either a
paper transfer of water allocations or an actual
water transfer with a surcharge due and payable to
Prior Lake to cover production and distribution
costs. This language has been added in the event
that the Department of Natural Resources does not
approve our preferred paper transfer method.
The Council has the following alternatives:
1. Approve the Joint Powers Agreement as proposed.
2. Approve an amended version of the Joint Powers
Agreement.
3. Do not approve the Joint Powers Agreement and
refer to staff for additional information.
4. Motion and second to opposing the extension of
sewer and water.
RECOMMENDATION: Alternate #1 - Council and staff have spent considerable
time evaluating the true impact of this proposal as well as
its benefits and liabilities to Prior Lake. Concerns have
been raised by Savage residents who may oppose the
project. These concerns have been addressed through the
materials we have received. Positive action by the City of
Prior Lake in this instance is a good neighbor approach
towards resolving a significant environmental concern.
Since the Joint Powers Agreement protects the city's
interest there is no "downside". to a positive action.
ACTION REQUIRED: Motion and second authorizing the Mayor and City
Manager to execute the proposed Joint Powers Agreement
Attachments
AGCA TES.DOC
JOINT POWERS AGREEMENT
FOR THE CONSTRUCTION AND MAINTENANCE OF
INTERIM SANITARY SEWER AND WATER SUPPLY CONNECTIONS
BETWEEN THE CITIES OF SA V AGE AND PRIOR LAKE
This agreement made and entered into the
Savage and City of Prior Lake.
day of
, 1995, by the City of
WI1NESSETH:
WHEREAS, the City of Savage has performed inspections on the ~n-site sewer and water
systems located within the existing Cates-Oak Island subdivisions, and these inspection results
indicate there is some severe environmental problems within the septic systems and wells within
this area, and
WHEREAS, a feasibility report, dated February 28, 1995, and revised March 29, 1995, has been
prepared to address providing municipal sewer and water service to this subdivision to correct
the environmental problems that currently exist, and
WHEREAS, it has been determined that the only feasible solution to this problem is to connect
up with the sewer and water systems in the City of Prior Lake on an interim basis until the City
of Savage trunk sewer and water facilities are provided in this area, and
WHEREAS, the project is made technically and economically feasible by including the proposed
new subdivision West Summit Oaks in the project, and
WHEREAS, the City of Savage will be pursuing a MUSA expansion through the Metropolitan
Council to include the area in the Urban Service Area that is contiguous with the City of Prior
Lake Urban Service Area, and
WHEREAS, the City of Prior Lake has determined that their existing sewer and water facilities
are able to provide temporary connections to the City of Savage for the purposes of installing
sewer and water in the Cates, Oak Island, West Summit Oaks subdivisions.
NOW, THEREFORE THE PARTIES AGREE, AS FOLLOWS:
1. The City of Savage will construct at its own cost all sewer and water
improvements including inspection, testing and grading permits necessary to
provide municipal services to these subdivisions including the connections to the
City of Prior Lake's water system. Savage will be responsible for accomplishing
JOINT POWERS AGREEMENT
CITIES OF PRIOR LAKE AND SA V AGE
SANITARY SEWER AND WATER SUPPLY CONNECTIONS
Page 2 of 4
in full conformance with the law all steps pre requisite to special assessments,
deferred and accounting for such assessments.
2. The City of Prior Lake will allow the City of Savage to connect up to the sanitary
sewer system manhole at Fish Point Road and also allow two watermain
connections directly adjacent to Trunk Highway 13. Industrial flows are strictly
prohibited.
3. The City of Savage agrees to install and m.aintain a flow meter on the sewer
system and water meters on the watermain connections at no cost to the City of
Prior Lake.
4. The City of Prior Lake will not charge the City of Savage any connection or trunk
charges for these temporary connections unless usage continues beyond the term
of this agreement.
5. The sewer connection at Fish Point Road is considered temporary. One of the
watermain connections is considered temporary but the other connection could be
a permanent cross connection between the two cities if so desired. This
connection shall be valved by the City of Savage to permit or prohibit flow
between the two systems.
6. The City of Savage is pursuing a MUSA expansion through the Metropolitan
Council to cover this project. The City of Savage proposed to install sewer and
water trunks to this area within ten years of the date of this Agreement in order to
eliminate temporary connections to the City of Prior Lake systems. This
agreement is conditioned upon the Metropolitan Council's approval and the
requirement that the City of Prior Lake will not lose sewer capacity as a result of
this agreement.
7. The City of Savage will maintain all sewer and watermains from the meters
upstream and all meters within the Cates, Oak Island, and West Summit Oaks
subdivisions. All watermain flushing will be coordinated in advance with City of
Prior Lake Maintenance personnel.
8. This Agreement is valid upon execution by both parties and shall expire ten years
from the date of this Agreement or whenever the City of Savage provides trunk
sewer and water to this area, whichever is sooner. In the event that the City of
Savage requests an extension of this Agreement, existing conditions of the
Agreement will be reviewed, re-negotiated and subject to all applicable fees.
9. The maximum amount of connections allowed is 180 units.
JOINT POWERS AGREEMENT
CITIES OF PRIOR LAKE AND SA V AGE
SANITARY SEWER AND WATER SUPPLY CONNECTIONS
Page 3 of 4
10. The City of Savage proposes to serve the existing Cates/Oak Island Subdivisions
and the first phase of the new West Summit Oaks Subdivision in 1996. No
further phases of the West Summit Oaks Subdivision will be permitted to develop
until the City of Savage extends municipal services to this area and eliminates the
temporary connections to Prior Lake.
11. The City of Prior Lake may be restricted by the Department of Natural Resources
(DNR) on the maximum amount of water it can pump from the Jordan aquifer due
to future regulations concerning the Savage fen. In the event the DNR restricts
the amount of water from the Jordan aquifer one of the following two options will
be implemented by City Staff.
Option 1 - This is the preferred option by the City of Prior Lake. The City of
Savage will provide at no cost to Prior Lake on an annual basis the equivalent
number of million gallons per year allocation from the City of Savage to the
City of Prior Lake used within the scope of this Agreement so that the City of
Prior Lake experiences no net loss in its pumping capacity.
The City of Prior Lake agrees to bill and Savage agrees to promptly pay the
City of Prior Lake the normal sewer and water rates that are charged to
residents using the flows as read by the meters, including Capital Facility
Charge (CFAC) for the term of this agreement. The sewer, water and CFAC
rates will be subject to any annual adjustments made by the City of Prior Lake
for its own users.
Option 2 - This option will be used in the event Option 1 is not workable as
determined by the City of Prior Lake. The City of Savage will supply the City
of Prior Lake an equivalent amount of water as used in the Cates/Oak Island
area. A connection at Boone Avenue and County Road 42 will be used to
supply the water. The City of Savage will provide payment annually based
upon a $.25 per thousand gallon usage to cover operating expenses. Payment
for sanitary sewer and CF AC will be the same as Option 1. Implementation of
this option will be through City Staff
12. The City of Savage hereby indemnifies and holds the City of Prior Lake harmless
from any and all causes of action by itself, its current or previous utility users.
JOINT POWERS AGREEMENT
CITIES OF PRIOR LAKE AND SA V AGE
SANIT AR Y SEWER AND WATER SUPPL Y CONNECTIONS
Page 4 of 4
IN WITNESS THEREOF, the parties hereto have caused this Agreement to be du1y executed.
Mayor, City of Prior Lake
Mayor, City of Savage
Date
Date
City Administrator, City of Savage
City Manager, City of Prior Lake
Date
Date
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April 4, 1995
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Larry Anderson
Director of Public Works
City of Prior L~ke
16200 Eagle Creek .A. venue
Prior Lake, MN 55372
I
1
,
RE: Cates-Oak Island Additions
Dear Larry:
The City of Savage would like to formally request approval from the Cief' of Prior Lake for
pennission to serve the Cates-Oak Island Additions with municipal sewer and water service from
your existing facilities, subje~~ to the ne~essar: agreements being exe~uted.
The subject area is shown on '-\'t!Jchment No. 1 and is gener:llly locJted in the southwest :omer of
Savage immediateiy east of Prior Lake and adjacent to Trunk Highway 13. The proje~t involves the
existing subdivisions of Cates Country EstJtes and Oak Island 1st and 2nd A.Jditions Jnd a new
development called West Summit Oaks, as shown on Attachmen( No.2. I would like to provide
you with an explanation for the need for (he proje~t and some of me e~onomics involved. To assist
you in understanding the proje~t, I have also inc!uded a copy of (he entire feasibility repon: for your
information.
The City of Savage recently enacted an on-site sewer and water system inspection ordinance. This
ordinance requires all on-site systems to be inspected every two years. The ordinance went inco
effect in October 1994 and the two areas targeted first were the Dan Patch and Cates-Oak Island
subdivisions. The inspections of all on-site systems in these two areas were conducted in October
and November 1994. This letter will only be discussing the Cates-Oak Island situation.
The results of the Cates-Oak Island inspections indicate a serious environmental problem with the
on-site systems. Over 50 % of the on-site septic systems were either failed (discharging to the
surface) or saturated drainrlelds. Another 38 % were nonconforming in one of six categories. Only
9% of the systems met today's design requirements, functioned properly and were environmentally
sound. Two (2) wells were also found co be contaminated.
Appendix A of the feasibility outlines in detail the level of inspections performed and summarizes
the results.
City of Savage ~ 6000 McColl Drive · (CounLy Road 16) · Savage, )Iinnesota 55378
Telephone: 612-890-1045 · Fa.""C 612-890-3815 0
f
Larry Anderson
Cates-Oak Island Additions
April 5, 1995
Page 2
In addition to the City's inspection of the on-site systems, a new state law went into effect as of
August 1, 1994, requiring the sellers of all property to have a septic system evaluator certify that
the system is in good working condition. Absent this certification, there are property owners in this
subdivision that cannot sell their homes or obtain FHA financing due to the condition of these
systems.
Because of the small size of the existing lots, topography, soil conditions and groundwater levels,
the majority of these lots do not have an alternative site available for a septic system. Holding tanks
are only allowed as a temporary measure and mound systems mayor may not work depending on
the lot conditions.
Basically, the feasibility report concluded that there are no viable options for the existing houses
except for providing municipal services. Since this area is currently outside of our MUSA line and
since this area will be at the southern end of our trunk system improvements, the City of Savage
would like to connect up to your sewer and water systems on a temporary basis until such time as
we can extend our trUnks to this area. Also, we are currently pursuing a MUSA expansion of this
area to be contiguous with your \l'CSA boundary through the Metropolitan Council.
Based on the on-site system analysis. it is quite apparent that municipal sewer and water should be
provided to the existing subdivisions. We are also proposing to serve the new subdivision. West
Summit Oaks. to complete the "loop" around the lake and to make this project economically
feasible. The folloviing analysis supports our position on this.
The existing subdivisions contain 87 platted lots, the majority which are built on. In addition. there
are twO larger, infill areas of vaC:U1t land which could conceivably be subdivided into 8 additional
lots each or 16 total. bringing the total number of lots in the existing subdivision to 103. The
proposed West Summit Oaks subdivision contains 63 more lots.
In our feasibility report. we are proposing to assess the existing homes an amount from 512.000-
516,000, with the average assessment being about $14,500 per lot. We have preliminarily talked to
several independent appraisers on the proposed assessments and. based on our on-site inspection
program and results. feel that the 514,500 assessment can be defended by the City if appealed. We
are currently in the process of performing detailed benefit appraisals of each property to verify that
the benefit is indeed greater than or equal to the proposed assessments.
As indicated in the feasibility report. the total project cost is estimated at 53,400,000 (using
514,500/10t). The assessments to the existing subdivisions will generate about 51,500,000, leaving a
shortfall of 51,900.000. The developer of West Summit Oaks has agreed to pay approximately
530,000 per lot. consisting of assessments and trunk fees, which will generate the balance of the
project cost.
$14,500 x 103 lots = $1,500,000
$30,000 x 63 lots = S 1. 890.000
TOTAL = $3,390,000
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Larry ,Anderson
Cates-Oak Island Additions
April 5, 1995
Page 3
/
I
/ I would also like to discuss the financial impacts to the City of not including this new subdivision.
I First of all, the project costs would only be reduced to about $2,500,000 because the sewer and
I water mains would still need to be extended around the lake (to loop the watermain and (0 provide
I adequate sewer design). If we were to assess this to the . existing 89 lots at 100% (assuming no inf1l1
lots), the assessment would be around $28,000 ~er lot, which we do not feel can be supported by
the benefit appraisals. The $14,500 that we are proposing of the assessment is the upper limit of
what we feel can be defended. Using $14,500 for the existing 89 lots results in a tocal assessment
of $1,300,000, meaning the City must come up with $1,200,000 from other funding sources to do
the project. We simply do not have any other funding sources that can provide that amount of
money. Even if we assume 103 lots (with infill), the City must come up with $1,000,000 from
additional sources.
Basically, the proposed development will be subsidizing the existing subdivisions to connect the on-
site system problems. Without the new lots, the project is not economically feasible. In addition,
other issues such as stormwater control and street access are improved tremendously by including
the new subdivision. The 152nd Street/Flag A venue/154th Street is a long (3600 feet) dead-end
srreet and is a real concern from an emergency vehicle access situation. Connecting this street to
AquiIla A. venue through the new subdivision provides a much needed secondary access and
eliminates a long cul-de-sac.
In 1993, the City Councils of Savage and Prior Lake met to discuss interim connections to your
sewer and water systems. It was generally agreed that Savage could connect up co your sewer
system at Fish Point Road and your watennain system adjacent to Trunk Highway 13, subject to
fonnal agreements being prepared. We have prepared a draft Joint Powers A.greernent (Attachment
3) for your review covering this proposal. Basically, the City of Savage is proposing the
following:
. The City of Savage will construct all of the proposed improvements at no cost of the
City of Prior Lake.
. The sewer connection is considered temporary. One of the watermain connections i~
considered temporary, but the other connection could be a permanent cross-connection
between the two cities.
. The City of Savage proposes to install sewer and water trunks to this area within ten
years to eliminate these temporary connections to your systems.
. The water and sewer connections will be metered for flow usage.
. Prior Lake will bill the City of Savage the normal, billable sewer and water rates
charged to your residents. The rates will be subject to your annual adjustment.
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August 31, 1995
Mr. Frank Boyles
City Manager
City of Prior Lake
16200 Eagle Creek Ave. SE
Prior Lake, Minn. 55372
Re: Cates-Oak Island Subdivisions
Dear Frank:
On April 4, 1995, our City Engineer/Director of Public Works, Dave Hutton,
submitted a written request to your City Engineer/Director of Public Works, Larry
Anderson, for permission to temporarily serve a portion of Savage with municipal
sewer and water service from Prior Lake. The area in question has been commonly
referred to as the "Cates-Oak Island Additions". Mr. Hutton's request included:
1) A copy of a Feasibility Report for Public Improvements;
2) A copy of an On-Site Septic System Inspection Report for the
existing Cates-Oak Island area, demonstrating justification
for the project;
3) Correspondence providing the rationale for temporary
connection to Prior Lake's municipal systems.
The request also was accompanied by:
4) A draft Joint Powers Agreement expressing proposed terms and
conditions for the temporary connections to the City of Prior
Lake.
The City of Savage has not yet received a formal response from the City of Prior
Lake to this request. Through some brief and informal conversations, you have
indicated that a majority of the City Council of Prior Lake is not willing to
grant this request. Instead, you said they want to limit assistance only to the
existing Cates-Oak Island homes. You said they will not provide services to any
new subdivisions in Savage. At this point, we still respectfull.y request a
written response that decl.ares the Prior Lake position on our request.
Your Council majority's apparent view is unfortunate because it fails to
recognize that the project must be considered in its entirety - both from an
/ engineering basis and a financial basis - rather than as two separable projects
(i.e., existing homes and new homes). It is impossible to separate construction
of the infrastructure for the new subdivision on the east side of the lake (West
Summit OakS), from construction of the infrastructure for the existing Cates-Oak
Island subdivisions. This letter will help explain the necessary linkage between
the existing subdivisions and the proposed development. We sincerely hope it
will also encourage further review by your Council.
City of Savage · 6000 McColl Drive · (County Road 16) · Savage, Minnesota 55378
Telephone: 612-890-1045 · Fax: 612-890-3815 0
City of Prior Lake
Cates-Oak Island Subdivisions
-2-
August 31, 1995
v
The City of Savage has initiated an On-Site Septic System Inspection Program that
is a prototype for the regulatory review that will soon be required of all
Minnesota municipalities. The On-Site Septic System Inspection Program clearly
identified major environmental concerns with the existing homes in the Cates-Oak
Island area. On some sites, raw sewage is on the surface and at other sites,
drain fields are entirely saturated and probably adversely affecting the water
table supplying Cates Lake and even Prior Lake. The majority of these existing
lots do not have adequate land area for the installation of replacement systems.
Further complicating matters, recent legislation now mandates certain disclosures
about the condition of on-site systems when an owner attempts to sell the
property. In Cates-Oak Island, there are owners who are unable to sell their
property because their existing on-site systems do not and cannot meet current
requirements. The only solution to their situation is by connection to municipal
services.
The desire to lLmit the extension of municipal services only to the existing
Cates-Oak Island subdivisions does not recognize an extremely important point.
I As shown in the Feasibility Report, service to this area requires completion of
the infrastructure around the entire east side of the lake. Contrary to the dark
suspicions of rumormongers, the proposed new West Summit Oaks subdivision is not
the cause for this encircling of the lake. Instead, the water main ~ be
extended around the lake to provide the loop required for adequate pressure and
/ water quality, and to avoid long dead-end mains in the existing subdivisions.
While it is technically possible to limit extension of the sanitary sewer only
to the existing homes, the far more practical and desirable alternative is to go
around the lake for the provision of maximum lateral benefit and to thereby avoid
unassessable trunk costs. (The contrast can be seen by comparing option I and
Option II, as outlLned in the Feasibility Report.) Finally, circumscribing the
lake with public improvements is also very important from a transportation
perspective. The street system should be continued around the lake to avoid an
I extremely long (over 3,600 foot length) dead-end street. From a public safety
viewpoint, the dead-end street provides only one way in and no secondary access
for emergency vehicles. (You certainly must recognize this problem from your
experience with Ridgemont Avenue.) In short, completing the infrastructure
around the lake is extremely important to appropriate services for the existing
Cates-Oak Island neighborhoods.
Given the compelling case for extending the infrastructure around the lake, the
financial aspect of the project becomes critical. There is simply no way to
assess the existing homes for the full cost of providing the infrastructure
improvements around the east side of the lake. M.r. Hutton's letter of April 4,
1995 estimated those additional infrastructure costs at approximately $1.2
million dollars. The City of Savage does not have the fiscal resources to
underwrite that cost. Since the infrastructure ~-lill be in place on the east side
of the lake as a necessary means to service the existing Cates-Oak Island
neighborhoods, we believe it only makes sense to allow new development to share
the infrastructure and help finance the overall project, thereby substantially
reducing the cost to the existing neighborhood. In the absence of the subsidy
provided by new development, the assessments required of the existing homes will
J' be far in excess of the benefit conferred by the improvements. We have conducted
a benefit appraisal that clearly demonstrates this central point.
It is the City of Savage's plan to only allow the first phase of proposed
development in the West Summit Oaks area. This phase entails completing the loop
from Aquila Avenue to 154th Street and construction of sixty-three (63) lots.
No additional development phases will be allowed east of this area until the City
of Savage's trunk sewer and water facilities are available and the temporary
connection to Prior Lake is no longer necessary. We have expressed our
willingness to make these commitments by written agreement with the city of Prior
Lake and provided a draft Joint Powers Agreement for review.
City of Prior Lake
Cates-Oak Island Subdivisions
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August 31, 1995
To summarize, we believe that your Council members have mistakenly concluded that
our infrastructure improvements can be separated into two distinct proj ects. It
is our firm opinion that the two elements - existing subdivisions and a new
subdivision - exist as a single project from infrastructure and financial
(perspectives. We have presented this viewpoint to the Metropolitan Council in
support of our request for a MUSA expansion and preliminary Met Council staff
feedback is favorable. In contrast to the City of Prior Lake, they are viewing
this project as a single, integrated undertaking that will solve a major
environmental concern in a fiscally prudent manner.
The City of Savage continues to believe that a joint meeting between the two City
Councils would be very helpful to a full understanding of the issues and the
proposed solutions. As we have frequently noted on prior occasions, there is and
will be an urgent need for collaboration and cooperation between our two
communities (I have enclosed a brief list of examples). The situation at Cates-
Oak Island presents a clear and unambiguous opportunity for solving a real
problem that spans the boundaries between communities. Given the clear benefits
from proceeding with the project and the lack of any resulting detriment to the
City of Prior Lake, we remain truly puzzled by the resistance to the proposed
improvement. Shouldn't we meet and air our respective views?
Please contact me with any comments, questions, or concerns. I also look forward
to the City of Prior Lake's formal response to our request for temporary
connections. I will follow this letter with a personal contact at a later date.
Sincerely,
S1fr~ r:' ~-s\
Stephen P. King
City Administrator
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Comlnunity Development Committee Meeting of September 12. 1995
METROPOUITANCOUNaL
Mears Park Centre, 230 East Fifth Street, St. Paul. Minnesota 55101
612291-6359 roo 612291-0904
DATE;
September L 1995
TO:
Chair and Members of the Community Development Committee
FRO~l:
Office of Local Assistance (Carl Schen~ 291-6410)
SUBJECf:
City of Savage
West Summit OaksiOak Island Comprehensive Plan ~4JnendmGnt
Metropolitan Council Referral File No. 13087-4
Metropolitan Council District No.5
EXECUl1VE SUMMARY
ISSUE:; The issue is whether the Council should approve a MUSA addition that would allow
sewers to be extended to a 1 12.S-acre residential are:! in the City of Savage with faiiing on-site
sewage disposal systems and as part of the plan amendment approve a land trade that ,>>ould make
the sewer extenSIon economically feasibie.
POLICY INIPUCA nONS: The Regional Blueprin.I provides twO options ror land-trades if a
community cannot JUStify increasing the size of its urban service are~ The land-trade must
involve equal amounu of vacant. developable land with similar land use l)1'e5 and intcmsitic:s as
well as similar service characteristics, or if the scale of land and intensity of potenlial development
differ between the parcels. then they must have similar urban SCf'."i~ cnaracteristics.
DISCUSSION: The City of Savage proposes to add a 112.5-acre residential area to the Jl,WSA to
allow the extension of sewers to existing houses where most of the on-site disposal systems arc:
failing. The city also proposes to include the adjOIning 41.5 acres of proposed single-family
le.sideotial di:Velopmcnt in the MUSA to make the construction of utilities eronomicalIy feasible.
In exchange, the city will remove an undeveloped 45.2S-acre area from the current MUS^, This
land had been d~ignaLed by tbe city for single-family reside::tiaJ developmen~ but under an
agreement negotiated in the spring of 1995 the land will be acquired for public open space to
provide a wider protective buffer lor Eagle Creek. a state designated trout :iU~Qm.
The staff has determined tbat the proposed 112.5 acre MUSA addition to allow the extension of
sanitary sewers is necessary to correct the problem of failed or failing on~slte systems. The staff
also concludes that the proposed addition of another 41.5 acres of proposed resIdential
development in exchange for the removal of 45,28 acres of city-designated residential
development i:; consistent with the Regional Blu.epri111 options and criteria for land-ttades, The
twO areas are similar in size. land use and potential service (wastewater and traffic generation)
characteristics, Although the land will be acquired for public open space to protect the creek, th"
city's planning had previously deslgnated the land for residential development.
RECOMMENDATIONS
That the Metropolitan Council:
1. Adopt the :naff report and findings as part of these recommendations.
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Inf~{m the C;ty 0f Savag~ th;J.t !)W"Suant to the Metropol,tan L~nd Planning ..:\.~t
(Minnesota Statutes Sec. 473.175, Subd. 1), it can put the plan amendment into effect.
i\d\.1se the ..:iry that after the intercommunity agreement.vith the City ,)f Prior u~ is
approved) a ~Opy s~ould b~ submitted to the ~1ctropolitan Counc.il fur its files.
(
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RE'\'lE\V OF CITY OF SAVAGE COMPREHENSIVE PI.A~ AME:NDMENT
BACKGROUND
In 1990, the Council approved a 2400-acre MUSA addition for the City of Savage that included
most of the northwest area of the city. The city has submitted a major plan amendment that
(provides for an expansion of the city's :MUSA to allow sanitary s~er. water and other urban
services to be extended to a 112.5-acre area of existing single.family housing (87 homes) with
failing and !ubstandard annsite ~e"N3ge disposal systems. The city JIso propo-,;o to indude an
adjoining 41.5 acres of proposed single-family residential development on the east side of Cates
Lake to make the extension of utllities economically feasible. In exchange, the city proposes to
remove or "trade~ut'1 45.28 acres of land along Eagle Creek within the city7s existing NtUSA that
the city planned for single-family residential development. This area is now to be acquired for
public open space as pan: of a plan to prot~ct Eagle Cree~ a state designated trout stream, from
development.
<.Because the proposed !vfUSA additions cannot be served by Ihe city's current sewer and water
trunk systems! me cay proposes to serve the additions on a temporary basis through an
intercommunity connection with the City of Prior Lake, which adjoins the additIOns on the west.
AUTHORl1Y TO REVlEVV
The Metropoiitan Land Use Planning Act of 1976 requires local umts of government to submit
comprenensl"e plan amendments to the Metropolitan Council for r~iew- (Minn Stat. 473.~,
suM 2, 197R). The .Act also give;:; the Council the authority to establish guiddines govenling the
amendm~nt review process (Minn. Stat. 473.854). .
The city submitted the plan amendment as a major plan amendment on June 19, 1995. The:
review period ends on ~eptember 16, 1995.
The documents submitted for review are:
1. City of Savage Comprehensive Plan Amendment to Prov1d~ S~rvices to Cates Country
Estates 1st AL1aition. Oak Island 1st and 2nd Additions, and West Summit Oaks, Phase 1.
2. Letter to Larry Anderson, Director of Public Works, City of Prior Lake. dated April 4,
1995 RE: Cates-Oak Island Additions.
3. Fea!;ibilityReport for Street and Utility Improvements to Caks Country Estates, First
Addition to Cates Country Estates. Oak Island 1st Addition, Oak Island 2nd Addition and
.A.djoining Area.
4. Letter to Chuck Ballentine, Director, Office of Local Assistance. from the City of Savage,
RE: West Surr.;nit/Cates/Oak Island Comprehensive Pl~n Am~ndment, dated July 14,
1995.
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ANALYSIS
Regional Blueprint (Carl Schenk)
The City of Savage is located in nonhem Scott County. The northern three...quarters of the city
are located in the Metropolitan Urban Service Area (MUSA).The southern one~uaner is
located in (he rural service area. See Attachments 1 and 2. The city adjoins the ~finnesota River
on the north. the City of Burnsville on the east and the Cities of Shakopee and Prior Lake on the
west.
The plan Jmendment prov'ides for the e.xp3nsion of the MUSA to aHou.- the .;:xtensiCrt of sanitary
sewers, water and oth.er urban services to the Cates Countrj .Esta~es and Oak Island subdivisions
in the soUthW~tern comer of the city. The subdivisions are outside the Savage ~lr{USi\., but they
are contiguous to the City of Prior Lake and its !v1USA Tne subdivisions were developed on
haU:--acre lots In the mid-1970/~ to .early 1980's and served by on-site s.ewage disposal systems and
wells. The ~ubdivisions contain 87 existing houses, another 16 po'(ent;al homesites, and an existing
commercial developnlenr and church. A city inspection of the on-site:: systelHS in ) 994 and J.995
indicate that 90 percent of the on~site systems are either failing Or have alre4idy failed. TIle
extension of municipal sanit3ry $ew~rs and oIher urban services is th~ anI; feasible ::>olution to
correct the problem.
In additior.. the Ciry of Savage proposes to expand the !\fUSA to induJe the adjoining .4 1-5 acres
of proposed single-tamil: residenliai development to the east and east of (:',.::.1(:$ Lake <:4i!ed W~t
Summit O~k:s_ This are:) ~.Hains 3 potential 60 lots. IncIudins this s~cunJ ;JiCa would allow the
City of Savage to spread the cost;; of extending services to the <irea 'with failing on-~ite :;ystems
across .3. larger number of lotS. "Unless this can be done the dty ~ocludes t:lu,,( it 'W"Ould not be
economIcally fe~iblc to serve the Cates Country .Estates/Oak Island J(e:J. Acc,xding to the city's
feaslbllity study, {he .1S5essment COSt for each of the e.xisting holties ~ould not b~ :;upp'"1rted by the
increased benefits unl~s the adjoinIng area is included. The deveJo!,er of the West Summit Oaks
subdivision has agre~d '.virh the city Ie allocate a substantia! portion of the utili.t}, ass~ssments to
the lots in the subdi',,'i,:;lon WhICh would make the project eccnomic:.ll} f.;;~s~bk.
In exchange for the. addition of the 41.5 .1':;4(; We$t Summit O.J~ area to the :v{USA, the Cjty of
Savage orcooses ro trade Out Ot remove 45.28 acrC'.$ of Jand within the citv's cunent ~f.1JSA alOtll3'
.. .. . 00
the Eagle Creek corridor in the northeastern corner of the city. TLi~~ drea \S p3rt of the 24OO-acrc
MUSA .icdlticn apE}ro'..;ed by the COt-neil. The land w~ ;;ubsC{!uently rezoned f.-om R-r~ral to R-
1 residential c!<......"ck){Jmcj".~) and preliminary plats (Eagle Creek Preser.v~ and F!i.('Jchcf FJrtn
subdi\."is;cns) were apprcvcd for the land and surrounding area ;)y the dty ic ~~~ spring of 1994.
The BlucDlin{ states that the Council \\.ilI consider a land-rrade if a communit-". cannot iustd\"
i~~as~ng tn-e size of its urban service area or if the communi!:..' .;ed~ to ()(he~;~e incr~~se Jth~
sUe of Its MUS A or recoot1gure it. TI.ler~ are t'<.vo ootions for the WUi'lCl1 a.nd co.mmuni~.J to
.. .
follow in evaluating land trades.
L The land trade must in,vclve equal amounts of vacant. developable land wich similar land
u.se ty.....oes 3na mtensities as well as similar urban service (transportation and sewer,;)
.I '" " . .I
characteristics, or
2. Ii' the scnle of land and inrensiry of potential development differ be::u'een the parcels,
then proposed land trades must have similar urban service charactenstIcs.
The City of Sdvag{; cannot jv~ti!y a rvflJSA ~~Ql"1$ion at this tlrn~. The Council Jpproved a 1400.
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~c.re (1725 n~t acn:s) ~fUSA ;;;:xpaD~loo in 1990. The area included 1215 acres of tfl.~'.r. fesiJcntial
development, S() ac: e:; ~)f p:lrkland and other business. commercial 3.nd indu$tri~l develcpm~nt.
The City of Savagc'~ fii"Opc;)ed l.lt..d trad~ meets the criteria under the first of lht~ above optiun;.
The \\r~t Sumn,i\. OdL ~rea that would be added to the :rvfUSA and the E<)glc: Creek area that
would be trad.ed out "fl;; nearly eq u.al in ;>ize and similar m service charncrer1stics. TIle Eagle
Creek ;irC3 (45.28 acres) that would be traded out is slightly larger th3fi the \Vest Sum mil Oaks
41.5 acre at~,,-c Both areas were planned by the city for single~famj'ly resjdential de-..~lopment and
would hrive S~l'riHd.r pc...entlai iffiCJCts on the metropOlitan sewer and highwa\' svstem~ in terms of
their service needs. · & 01 ~
As of the spring of ; ry:)5, thlC 45.28 acre Eagle Creek area is no longer be a...ail3.bie for resld~ntial
development. In th~ spr-irAg of 1994. the city agreed to prepare 3T1 Aher:J:l.tive crb;Jn Areawide
Review (AU.AR '\ to ...lSScSS the ovt(;oti<il environmental Un03Cts of the d~eiocment of the 1400-
acre 1vtUSA c:xp~.rwion ~pprcved by th{; C...,uncil in 1990 a~d other adjoining unde--lelcped land on
the Savage Fen and Eagle Creek. Eagle Creek is a state desIgnated trout stream. The draft
AUAR document .....~ publi;~1~d (('l public re'.iew and :n:nm~nt i.1 :he fan ~f 1994. During tho;:
review of the;::; draft and p(epar~tlon of the Final AU..\R document. a plan fer the a.:quisition cf a
4OO-foo( -'lJC. publidy 0'~'Tled ~)pen space buffer along Eagle Creek was ncgcti~ted by the
atIecled pgl'1:i~. Th~ y[vpo~cd ~orri.j(}r ;s 4(X) feet wide compar~d to th~ to'J.foot ~,de co;:Tidor
contained in the; preliminary pl:Hs previously approved by the city. 'The ~,der corridor reduces the
planned rQid~l1tial de....elopment bv 45,::8 ~1cres. The land ,.will be ~caui red for oubHe uoen soa~
and managed by th~ 'i\tfinn~ota D~partment of N amral Resources. · . .'
Although tb~ .i5,~;-acrc 'Cagle Creek area to be traded-out ~y the city is to be :lcquired for public
open spa..,~. the cil'/~ planning d~ignated the area for single-family residential jeve~(Jrment. The
area is k:;cGH.ed i.It the ~{USA c;c~~nsion approved by the Council in 1990. The E:lgle Creek and
HLrS(;h~r Farm par,,:cl$ that i.ndude the 45.28 acre area were assessed by the City of $a\"3ge in
1992 for the cost ot 3 sanitary trunk sewer. In January and April, 1994 the city appfO'led
preliminaf\' r'b~ for Eagle Ci.'~k Pres~rJe and Hirscher F3fffi subdivisions re~oectivetv. The bnd
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Will:; tt;;;wned by th~ ..:ity from R-rur:ll tv R-l residential :it the ~3me rime. In Jddinon. the land to
be acquired for J -~ider buffer along the ~reek is in 3.dditon to the \JO-acr~ of brae ::ilocated for
open space in the 2400-acre MUS~~ approved by the Council.
Wastewater TreaODent
nle plan anlC:odmcfl{ pr0pose:; (l) c;rpand the ~ruSA to provide sewer. w3ter and Other urban
services to a 112.5-dcre deve1op..:~j area u.-;th failing aD-site system!;, The area Cl'Jntains &7 existing
houses, a commercial establishment aDd church. The area alSO contains vacant land with the
potential fot 16 how~ites. TIle city, 'Jlhich requires all on-site systems ta be inspected biennially.
inspectc;d the syste.r,s in 1994 ;.tnd 1995. The inspections indicated that 50 percent of the houses
have failing sy~tc:rn$ di~ch.)rg1ng to the surface or saturated dr3infields. Another 38 percent 'Were
nonconforming in Oile of 6 c.1tegories. Only 9 percent meet current cksign standards. function
properly and are environmentally sound. Two wells were found to be contaminated.
According to the city;s feasibility study. because of the s~ of the lots (half-acre), setback
!cquirements~ soil wndittons and ':urrel1t design standards it would be difficult if not imposslbie to
locate r~ew ~pti(. S-j'Sien1s on the ,,"tisti.~g lots. The city's feasibility report c~nctudes tn:n the only
option is to eXtend municipal sewers and other services to the area to correct the problem.
The plan amendment also proposes to add the adjoining 41.5 acres of proposed singie-family
development to the cast and east of Cates Lake called West Summit Oaks to tbe tv1USA and
extend sanitary sewers and other urban services to this area. This would allow the cost of the
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5er-..r:ices to $oread ;:KrOS$ th~ 60 lots in the new subdivision and 100p" the tHiIiti~$ around the
lake. The d~eloper h~ J~l~..:d ~...) pav for a substantial nortiOi'.i of the. telal cro;ei.:t C(j:;ts bv
allocating ~his cost: ;:0 the lors in (he ;ubdi"'sion. This w~uld ano~. the city t~ .1~CSS a reas~nable
amo'Unt of the project costs to the existing hous~ in the Cates Country/Oak Island subdivisions
which evuld be supported by the increased benetiu to the houses th~re. Unless this area is
included, (he city indicate.:) that i::; not economically feasible to e..xtend the services to the existing
houses.
The propo~d \".V~:.,t Summit Oab residential area (41.5 acres) that tJ/ould be added to the ~,,{USA
and the E~gle Cre-.;k: area (45.2S acres) that was planned for single-family residential aed "WOuld
be traded-~-)ut ~re 3pproxhnatdy equal in $lze. Based on their size and the proposed smgle-family
land use in both. th~ potential wastewater flews from the areas would be approximately equal.
The addition of the 8' existing houses, 16 potential homesites. church and commercial
establishment in the Cares Country/Oak Island MUSA "W'Ould generate an average of 36.000
gallons per day according to the ~ty. There is adequate capacity in the metropolitan wastevr'ater
system to handle these t1ows.
Becaust.; bc.th ;vfUSA additions a~e "muide i:he city's current ,;\-fUSA and beyond the city ~ ~anit3ry
sewer trunk .)ystem. ~hc City of Savage f,fCPOSes 1:0 serve the area temporaril:" through ::l inter-
community conn.ectian to the City of Prior Lake's sanitary sewer and water systems. The
proposed ~ruSA additions adjoin the Prior Lake MUSA on the west along TH 13. TIlt: Cir:/ of
Sa~'age indic4;A(e'~ that its tnHtk. :;ysrems will be extended in ten years and the ccnne::!ion \11111 be
tenninated. During the interim the wastewater will discharge to the Blue L~ke \\r\\,TP. After
the area is connecfed to the City of Savage trunk system, the waste-water \l.;"11I now to the Seneca
wwrP.
The City of SiiVJge ~-> ,,:uHL":f,cly d~ussing J Joint powers 3greement \1w-ith ttJ~ City of Pnor Lake to
allow the construction \)f ~hc inti,;,-community connections. An Jgreem~i:t h25 not oeen reached
as of thi> date. A ~'l'j ,)f the agreement shvuld be provided to the Council .1fte:- ~t LS 3pproved
by the cities.
Noapoint Source Pollution
Th~ city has adopted 30 ordinance J.S part of itS land use controls that incorpor3~es the C::Cuncii'~
lntertfn Stralegy for Redu.cing :\l...'llIpoint Sour~e Pollution ro Al! i\-terropoliran Warer Bodies requiring
the lJ..~ of the MPCAJ~; urban best management practices and Nation.:} Urban Ru.r:off Project
design ~pt:Cifications fur: ntW ')h1rmwater ponds. This aetion is consistent 'lJ.1th [he Ccuncil's
interim nonpoint strategy.
TnlDsportatloll (Ke;;",n Roggenbuc!{)
rne additi0n~d t:.iffk g..::n..-:.:all\J.l f~'.:;m this dc:velopment',1;11J Let Jf:-e:! t'1!~ :r:C"~xpoHt:1n h:ghwi:!Y
system. The areas that would be added to the ~fUSA adjoin m 13, an "...>\ -< minor arterial, which
~ not part 0f the rn\:;tropolitan highway ;)y~tem as defined in the Tra"sponation PoliC;I" Plan. Th.e
developdlCi.lt propo~aI docs net include additional access to m 13, ;lnd '~vin act C"cnflict '.vith state
and local effortS to manage access to TII 13 in the cities of Savage and Prior Lake.
Recreation Open Space (Florence Myslajek)
There is no potential Impact on the regional open space system.
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HousiJag tAudrey Dougherty)
No issues.
FINDINGS AND CONCLUSIONS
1.
Tht..: City vf S:'wag~ propo;;C'S t() expand the ~ft!SA t~ provide urban ier'\'1.ces to 0. 112.5
uc..-(. .1;~i4 (C~~ Cuuntr:.dOak Island subdivisions) cont:li~ing 87 hcw,C$ ,i...~d (,th~r ~es
wb~i.'(; 50 percent (if the ,~n..s;te scw3ge systems have either f:liled or saturated drainfields.
The only option is to extend municipal sewers to correct the problem.
.'t
Th ",' , 1_..., .-."-'''''' .,.,.. ;-'-1'..,-1.,., d......~. 4" <: . - ~-....; -....- ,"d . nol t-- ',.
1 e '*It)i a~v pl\.Jpu~es ~I..) Ul\", uue ..an a Ju,nmg .i......; a...re a,~.:.i vi PlV~OS"" Sln&"e- .:imhy
r~idential d~.Idopmc:nl in the 1vlUSA to make the e..'ttension of SC'A.er;$ J.nd other S~l";;':~
to the existing houses and other land uses economically feasible.
3.
Th~ .:.:ry prcpG~~ ,} land-trade that removes another 45.28 acres of l.:md along the E~gle
Cre~k oorridor fro rd. th..:. ~'oJJ.-.~.cnt r.,fUSA that the city's planniog de~~gl'.ated for resid~nti~'tl
devdoomenc Thi.. (ir~J, \;l,'1U be 3cC...lired dS oan ..)f ;3 ~tatc 013;1 tc. L)fo~..:ide ~:'. .:.jd;~i0n.::.i
a; .1 1. "I-
protective buffer for Eagie Creek - a state designated trout creek.
J..
Tn.::: s~ <AWl p'J~..:.ntial :.~..'.\'ic.c ~b..:.ract'-=r1stiw ('J.'~Le';'3t:.r .ir..d ~r~m.;) cf ::ht: 4:..$ ~nd .t~.1S
4lC((; sin5k-fdrnil: (csidC:Dllal ;Hc3s;n the proposed land uade .He similar. Th~ref.jre. ',10
!mfi.act cn the mctrvpolit.l..;, wa::;t-..;watcr and h.ighway ;;}"'Sterrs ''''cuid result from th~ bnd
trade.
s.
The proposed MLJSA addltlons are contiguous to tbe MUSA in thr;: City of Prior 'LJkes.
6.
The plon ..1,'i'."f~~h;'~(lt will have no .;~gnific=-nt impact on the regicnzl rcc':'~~tion ~pen space
system.
7. The c;t: h~ ai-'ph':'V~ rJn rJ:~)).~nJm~nt l(l its iand u~ Co.1ntrols ro inwrporate the
reqo.i~c;:.i~I,~ of ~t1c ~JI.H1.cilsi In.urin~ Sn axeg;J foJ' the Rt!d~rich u,f.Vunpoint ~Qt.rc.;
Pollu.tivn w.r:.ll Af2I., cp....,!i:..1;~ !Vuut' B.Jdies. This is cor..sis!ent '.\'ith th~ WULciI's interir.::
Ilonpoint strategy.
RECOMMENDATIONS
That the Metropolitan Council:
1. Adopt the staff report and findings as part of these ret;OmmendatioIls.
2. Inform the Cir:'" of Savage that pursuant to the Metropolitan Land Planning Act
(Minnesota Statutes Sec. 473.175 Subd. 11. it can out the olan amendment into effect.
\. ) , ... .&
~. Ad~ the _ity thai: after tli.~ ir.l....;:iwHnl~ol.j~ty agreer~1ent ')'1t~ :~1e Citj' ~f Prior l..3~ is
approved~ a copy should be submItted to the M~tropoiitan Councll for itS tiles.
7
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City of Sa~lage
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September 26, 1995
Larry Anderson
Public Works Director
City of Prior Lake
16200 Eagle Creek Ave. SE
Prior Lake, MN 55372
Re: Cates/ Oak Island Joint Powers Agreement
Dear Larry:
It is my understanding that the City Council of Prior Lake will be considering the City of Savage's
request for temporary sewer and water services to serve the Cates/Oak Island/West Summit Oaks
Subdivisions at its October 2, 1995 Council meeting. The terms and conditions of these temporary
sewer and water connections are outlined in the proposed Joint Powers Agreement, which I received
from you on September 26, 1995. The City of Savage agrees to the following conditions for this
approval:
1. Agrees to the conditions outlined in the proposed Joint Powers Agreement between the two
cities. There are two provisions in the agreement that we would like you to consider revising.
a) Item 10 indicates the maximum amount of connections that would be allowed is 175
units. In reviewing the proposed connections needed, I have determined a total of
approximately 170 connections are needed. In order to allow some flexibility for in-fill
development in the existing Cates/Oak Island subdivisions, I would propose that in the
agreement the maximum amount of connections be set at 180. If you cannot support this
revision, we will accept the 175 units as proposed in the agreement.
b) Item 11 indicates that the City of Savage will provide an annual water allocation to the
City of Prior Lake equal to the amount used in the Cates/Oak Island area. According to
our calculations, the Cates/Oak Island project will have an annual water usage of
approximately 20 million gallons. Rather than provide the City of Prior Lake with this
allocation, I would propose that the City of Savage supply the City of Prior Lake this
additional 20 million gallons via a connection that is already in place at Boone A venue
and County Road 42.
The City of Savage is constructing a new water tower in Section 19 that will be online in
1996, and we will be providing water to this entire section of land. We could,
conceivably, install the connection at County Road 42 to supply you with the 20 million
gallons per year that the Cates/Oak Island area needs. By doing this, the Cates/Oak
Island area will actually be supplied by water from Savage that would be utilizing your
water distribution system.
City of Savage · 6000 McColl Drive · (County Road 16) · Savage, l\Iinnesota 55378
Telephone: 612..s90-1045 · Fax: 612-890-3815 0
Mr. Larry Anderson
September 26, 1995
Page 2
I believe this concept would be a more agreeable arrangement than trying to transfer
water appropriations that are set by the Minnesota DNR. The DNR may have difficulty
agreeing to such a proposal. In other words, I am not sure that Savage can transfer water
appropriations that the DNR permits. If you concur, I think we could revise Paragraph
11 to accommodate this change.
I
2. You requested additional language in the agreement to cover the phasing of this project. I would
propose the following Paragraph 12 be added and change the existing Paragraph 12 to Paragraph
13:
" The City of Savage proposes to serve the existing Cates/Oak Island Subdivisions and the first
phase of the new West Summit Oaks Subdivision in 1996. No further phases of the West
Summit Oaks Subdivision will be permitted to develop until the City of Savage extends
municipal services to this area and eliminates the temporary connections to Prior Lake:'
3 . You also expressed some concern that the on-site septic inspections were not done by a certified
inspector. Please be advised that the individuals who performed the inspections were indeed
certified septic system inspectors and have received all of the State and County certifications.
4. It is understood that this agreement only applies to the Cates/Oak IslandlWest Summit Oaks
Subdivisions and does not pertain to any other development on the common borders between
Prior Lake and Savage. including commercially zoned land near the intersection of Highway 13
and County Road 42.
Based on the above comments. the City of Savage will support the proposed Joint Powers Agreement to
cover the temporary connections to the City of Prior Lake. I will be presenting this Joint Powers
Agreement to our City Council for their consideration at the October 2, 1995 Council meeting.
If you have any other questions or comments or desire to discuss the specifics of the Joint Powers
Agreement, please contact me at 882-2670.
Sincerely,
~d~
David E. Hutton, P .E.
Director of Public Works/City Engineer
D EH/ljj
cc: Steve King, City Administrator
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