HomeMy WebLinkAbout8B Connection Agreement
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 25, 2016
AGENDA #: 8B
PREPARED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR
PRESENTED BY: LARRY POPPLER
AGENDA ITEM: CONSIDER APPROVAL OF AN AGREEMENT FOR WATER AND
SEWER CONNECTION FOR 1735 SHORELINE BOULEVARD AND
APPROVAL OF AN EXTENSION FOR CONNECTION FOR 1711 AND
1781 SHORELINE BOULEVARD
DISCUSSION: Introduction
Three properties on Shoreline Boulevard have not yet connected to City
sewer and water services. One of these properties desires to connect
through an agreement with the City. The other properties desire an
extension due to pending demolition.
History
In 2013, the City completed the extension of water and sewer to 40
properties on Shoreline Boulevard (CSAH 12) and Sunset Avenue. Since
the completion of this project, individual properties have hooked up their
services. The original deadlines for connection in accordance with City
Ordinances was November 8, 2014 for Shoreline Boulevard and March 14,
2015 for Sunset Avenue.
On November 24, 2014, the City Council granted extensions to property
owners giving an additional three monthes to secure permitting and an
additional 6 months to connect after securing the permit. In the case of
Shoreline Boulevard, properties should have been connected by August 8,
2015.
Current Circumstances
All properties on Sunset Avenue have connected or have secured approval
of a three year extension per the Orderly Annexation Agreement.
Three properties on Shoreline Boulevard have not yet connected to City
water and sewer services and are in violation of City Code.
1735 Shoreline Boulevard – The property owner has expressed that cash
flow has been the issue with connection and desires to enter into the
attached agreement with the city to accomplish connection. Through the
agreement, the City would pay the costs for the connection and would
assess the property for the work over a five year period. The agreement
includes language which the owner consents to the assessment amounts.
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The assessment amount includes reimbursement for staff and legal time
associated with creating and administering the agreement.
1711 Shoreline Boulevard – This property has changed ownership since
the original project was completed. The new owners are planning for
construction of a new home on the property. They contend that the home
will be demolished in September and new house construction will
commence. Because the existing home has structural issues, they request
that further extension be granted to the property for connection until
September 15, 2016. Due to a rental agreement which expires in August,
they desire to keep the structure until mid-September. The builder for the
property owner has provided the attached letter.
1781 Shoreline Boulevard – A small cabin occupies this property and has
not been used in some time. This property owner plans to demolish the
cabin within the next month. They are requesting an extension to June 1,
2016.
If either of these two properties do not connect within the extended
connection time then staff will recommend how connection should be
accomplished in the most expeditious fashion.
Conclusion
Staff recommend that the City Council enter into the attached agreement
for 1735 Shoreline Boulevard and allow for an additional extension to
September 15, 2016 for the property at 1711 Shoreline Boulevard and
June 1, 2016 for the property at 1781 Shoreline Boulevard.
ISSUES: Projects which include extension of sewer and water to existing
neighborhoods involve an enormous amount of City staff time in
coordinating the connection of water and sewer services. Each property
has their own unique circumstances and challenges.
If the City council does not desire to enter into the agreement but wishes
that these properties connect, citations could be issued and Scott County
District Court could order the property owner to connect.
Another option would be to ask the District Court to allow the City to install
and assess the improvements. The process for both these options could
take significant time before the work is physically performed.
The septic systems for both 1711 and 1735 Shoreline Boulevard were
constructed in the early 1980s. These systems are non-compliant systems
but the City does not have evidence that these systems present an
immediate health concern. The septic system at 1781 is not being utilized
as the property is vacant.
FINANCIAL
IMPACT:
If the City Council enters into the agreement for 1735 Shoreline Boulevard,
the City would finance the connection costs of $21,853.00 over a five year
period at an interest rate of 4.44%. Funding from the General Fund would
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be utilized to pay for the connection and would be reimbursed through the
assessments over a five year period.
Payment to the City for City Staff time and legal costs are included in the
attached agreement.
ALTERNATIVES: 1. Approval of an agreement for water and sewer connection for 1735
Shoreline Boulevard and approval of an extension for connection
for 1711 and 1781 Shoreline Boulevard.
2. Table this item.
3. Deny this agreement and extension and provide staff with direction.
RECOMMENDED
MOTION:
A motion and a second for approval of alternative #1
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 16-xxx
A RESOLUTION ENTERING INTO A CONNECTION AGREEMENT FOR 1735 SHORELINE
BOULEVARD AND AUTHORIZING AN EXTENSION FOR CONNECTION FOR 1711 AND 1781
SHORELINE BOULEVARD
Motion By: Second By:
WHEREAS, In 2013, the City installed water and sewer utilities with the reconstruction of Sunset
Avenue and Shoreline Boulevard; and,
WHEREAS, Pursuant to City Code and an extension granted by the City Council, properties on
Shoreline Boulevard were to be connected to City Sewer and Water by August 8, 2015 ;
and,
WHEREAS, Three properties have not yet connected and are in violation of City Code section 705
and;
WHEREAS,
Two properties have requested further extensions due to pending demolition and one
property has requested a connection agreement.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The Mayor and City Manager are hereby authorized to enter into a connection agreement and
agreement with respect to special assessments for 1735 Shoreline Boulevard.
3. An extension is hereby granted until September 15, 2016 for 1711 Shoreline Boulevard
4. An extension is hereby granted until June 1, 2016 for 1781 Shoreline Boulevard
PASSED AND ADOPTED THIS 25TH DAY OF APRIL 2016.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
AGREEMENT REGARDING CONNECTION TO CITY SERVICES
THIS IS AN AGREEMENT MADE THIS ____day of ____________, 2016, between the City of
Prior Lake, a municipal corporation, ("City"), Dana A Breault, a Minnesota resident(s) ("Owner"),
Krueger Excavating, Inc., a Minnesota Corporation (“Contractor #1”), Bohn Well Drilling
Company, a Minnesota Corporation (“Contractor #2”), and Boevaag Plumbing Inc., a Minnesota
Corporation (“Contractor #3”) (collectively Contractor #1, Contractor #2 and Contractor #3 are the
“Contractors”).
RECITALS
A. The Owner holds legal and equitable title to property legally described as
Subdivision Name HILLSIDE VIEW Lot 008 Subdivision Cd 11002 LYING
S OF LINE COM 13' SW OF NW COR, SE TO SHORE & P/O LOT 7
LYING N OF LINE COM 5' SW OF NW COR, SE TO SHORE and
commonly known as 1735 Shoreline Boulevard, Shakopee, MN 55379
(“Property”).
B. The Owner desires to connect the Property to City water and sewer services.
C. The Owner desires the City to pay for the costs of the installation and assess the
Property for the cost pursuant to applicable law, including but not limited to Minn.
Stat. Section 444.075 and Minn. Stat. Chap. 429.
D. The Owner has, by Owner’s own volition and in Owner’s sole discretion, selected
and engaged Contractors to install the connection on behalf of Owner. Owner has
complied with Minn. Stat. 471.345 in selecting and engaging the Contractors.
AGREEMENTS
IT IS HEREBY AGREED as follows:
1. The Recitals are hereby incorporated into this Agreement.
2. Upon the completion of the installation, the City shall, on behalf and upon request of
Owner, pay to Contractor #1 an amount not to exceed $9,570.00, pay to Contractor
#2 an amount not to exceed $2,400.00, pay to Contractor #3 an amount not to
exceed $400.00, as payment in full for the installation of the connection. All of the
following conditions must occur before the City makes any payments to the
Contractors:
a. The City inspects and approves the connection.
b. The Owner approves Contractors’ work and invoice, in writing, and presents
to the City a written request that the Contractors receive payment. Owner’s
written approval of the work and invoice, and request for payment, shall
follow the form of attached Exhibit A.
c. Contractors present invoices or bills to the City setting forth the amount
owed (not to exceed the amount in Paragraph 2, above) and including the
following signed and dated statement: “I declare under penalty of perjury
that this account, claim, or demand is just and correct and that no part of it
has been paid.”
d. The Owner executes and presents to the City the “Agreement Regarding
Special Services” (attached as Exhibit B), with the amount in Exhibit B of
said Agreement being equal to the amount of Contractors’ invoices to the
City plus applicable fees.
3. Owner and Contractors agree that the City’s sole responsibility under this
Agreement is to pay Contractors upon completion of the installation. Owner and
Contractors shall look to each other for all other matters relating to the installation of
the connection, including, without limitation: negotiating the work to be done and
its cost, scheduling the installation, obtaining permits, scheduling inspections,
warranty matters, claims for breach of contract, claims for negligence, damage to
person or property, faulty installation, or any other matter related to or arising out of
the installation of the connection.
4. Subject to the City’s obligation to pay for the installation of the connection
contained in Paragraph 2, Owner and Contractors hereby release the City of all
claims, actions, causes of action, suits, liabilities, judgments, mechanics liens, and
demands of any nature whatsoever, whether for damages or otherwise, in law or
in equity, contractual, tortious, or otherwise, known or unknown, arising under the
law of any jurisdiction, now or in the future, that are arising out of or related to
the installation of the connection or this Agreement.
5. To the fullest extent permitted by law, Owner and Contractors shall indemnify,
defend and hold harmless the City from all claims, demands, losses, damages,
injuries, liabilities, expenses, judgments, liens, encumbrances, orders and awards,
together with attorney fees and litigation expenses, that are related to or arise out of
the installation of the connection or this Agreement.
6. The Parties expressly agree, represent and warrant that all agreements and
understandings in any way related to the subject matter of this Agreement are
contained herein, and there are no oral agreements or understandings of any
nature whatsoever that contradict, vary, modify, supplement or add in any way to
the express written terms of this Agreement.
7. Should any provision of this Agreement require interpretation or construction, it is
agreed that the Court, administrative body, or other entity interpreting or
construing shall not apply a presumption that the provisions hereof shall be more
strictly construed against one party by reason of the rule of construction that a
document is to be construed more strictly against the party who itself, or through
its agent, prepared the same.
8. This Agreement may not be terminated or amended except in writing executed by
all Parties hereto.
OWNER(S)
Dana A. Breault
CITY OF PRIOR LAKE
A Minnesota Municipal Corporation
By:__________________________________
Kenneth L. Hedberg
Its: Mayor
____________________________________
By: ________________________
Frank Boyles
Its: City Manager
CONTRACTOR #1 (Krueger Excavating
Inc.)
By:
Its:___________________________
CONTRACTOR #2 (Bohn Well Drilling Co.)
By:
Its:___________________________
CONTRACTOR #3 (Bovaag Plumbing Inc.)
By:
Its:___________________________
Exhibit A
(see next page)
City of Prior Lake
4646 Dakota St. SE
Prior Lake, MN 55372
Dear City of Prior Lake:
In accordance with that certain agreement titled “Agreement Regarding Connection to
City Services” (the “Agreement”), I, Dana Breault, hereby request the City to pay to
_________________________ (the “Contractor”) the amount of $________________ in full
satisfaction of the amount owed for the installation of water and/or sewer connection to my
property. I hereby approve the Contractor’s work and invoice, and desire that Contractor be paid
for the installation of the connection. I acknowledge that by paying the Contractor, the City has
fulfilled its obligations under the Agreement and that I will look to the Contractor for any matter
related to the installation of the connection.
Sincerely,
______________________________
Print Name:____________________
Date: ____________________
______________________________
Print Name:____________________
Date: ____________________
Exhibit B
(see next page)
AGREEMENT REGARDING SPECIAL ASSESSMENTS
THIS IS AN AGREEMENT MADE THIS ____day of ____, 2016, between the City of Prior Lake,
a municipal corporation, (the "City") and Dana A. Breault a Minnesota resident (individually
referred to as the "Owner").
A. The Owner holds legal and equitable title to property described on Exhibit A which
property is the subject of this Agreement and is hereinafter referred to as the
"Property."
B. The Owner desires to connect Owner’s property to the City’s water and sewer
system (hereafter referred to as the "Improvements").
C. The Owner desires the City to pay for the costs of the installation and assess the
Property for the cost pursuant to applicable law, including but not limited to Minn.
Stat. Section 444.075 and Minn. Stat. Chap. 429.
AGREEMENTS
IT IS HEREBY AGREED as follows:
1. The Owner consents to the levying of assessments against the Property for the
Improvements as described in Exhibit B. The amount of the assessments shall be
$21,853.00, payable over 5 years, bearing interest at the rate of 4.44% per year.
2. The City's assessment records for the Property will show the assessments as a
"pending assessment" until levied.
3. The Owner waives notice of any assessment hearing to be held at which hearing or
hearings the assessment is to be considered by the City Council and thereafter
approved and levied.
4. The Owner concurs that the special benefit to the Property by virtue of the
Improvements to be constructed exceeds the amount of the assessment to be levied
against the Property. The Owner waives all rights it has by virtue of Minnesota
Statute 429.081 or otherwise to challenge the amount or validity of the assessments,
or the procedures used by the City in apportioning the assessment and hereby
releases the City, its officers, agents and employees from any and all liability related
to or arising out of the imposition or levying of the assessment.
5. This Agreement shall be effective immediately.
6. This Agreement may not be terminated or amended except in writing executed by
both parties hereto, provided however upon the levying of the special assessments
contemplated by Paragraph 1 hereof the City may upon request of the owner of the
property affected, without the necessity of further City Council approval, unilaterally
prepare and provide to the owner for recording a document releasing any property so
levied from this Agreement.
7. This Agreement constitutes a lien upon the Property in the amount of $21,853.00
until such time as the assessments referred to above are levied.
OWNER(S) CITY OF PRIOR LAKE
A Minnesota Municipal Corporation
_______________________________
Dana A. Breault
_______________________________
By: ______________________________
Kenneth L. Hedberg
Its: Mayor
By: ______________________________
Frank Boyles
Its: City Manager
STATE OF MINNESOTA )
) ss.
COUNTY OF __________ )
This instrument was acknowledged before me this ___ day of __________, 2016, by
Kenneth L. Hedberg, Mayor, and Frank Boyles, the City Manager, of the City of Prior Lake, a
Minnesota municipal corporation, on behalf of the corporation.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF _________ )
This instrument was acknowledged before me this ______ day of __________, 2016, by
____________________________.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF _________ )
This instrument was acknowledged before me this ______ day of __________, 2016, by
____________________________.
Notary Public
This document drafted by:
Richard F. Rosow, Esq.
Gregerson, Rosow, Johnson & Nilan, LTD
100 Washington Ave. South, Suite 1550
Minneapolis, MN 55401
Exhibit A
SubdivisionName HILLSIDE VIEW Lot 008 SubdivisionCd 11002 LYING S OF LINE COM
13' SW OF NW COR, SE TO SHORE & P/O LOT 7 LYING N OF LINE COM 5' SW OF NW
COR, SE TO SHORE.
Exhibit B
Assessment Amount
Connection Fees: $ 6,483.00
Administration Fees: $ 3,000.00
Contractor #1 Amount (Krueger) $ 9,570.00
Contractor #2 Amount (Bohn) $ 2,400.00
Contractor #3 Amount (Bovaag) $ 400.00
Total Assessment: $21,853.00