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HomeMy WebLinkAbout5F - Sanitary Sewer & Water AGENDA #: PREPARED BY: SUBJECT: DATE: BACKGROUND: DISCUSSION: ISSUES: ALTERNATIVES: STAFF AGENDA REPORT 5F ~ (I." FRANK BOYLES, CITY MANAGE~ W CONSIDER APPROVAL OF RESOLUTION 98-XX APPROVING "CONSTRUCTION AND MAINTENANCE AGREEMENT" FOR SANITARY SEWER AND WATER. APRIL 6,1998 The City Council has previously authorized the staff to negotiate an agreement for the extension of sewer and water in the South Shore Drive area to eliminate environmental problems created by failing septic and/or well systems. This agenda item completes that direction. The attached agreement has been prepared by the City Attorney's office following receipt of direction from the City Council about certain policy issues at the Annual workshop. The agreement provides for the extension of sewer and water along South Shore Drive to serve up to 80 connections. Under the agreement, the construction project and associated financing is conducted under the supervision of the Township. The Township purchases sewer and water services from the City and bills its residents for amounts used. This method is preferable since the City would have no mechanism to collect unpaid bills from private individuals in the Township. The Township will be responsible for maintaining the system except for water flushing which the City will conduct so we can coordinate with the rest of the City. The township may buy maintenance services from the City if it desires. Appropriate indemnification, annexation and fee provisions are also addressed in the agreement. The issues previously raised by the City Council are addressed in the agreement. 1) Adopt Resolution 98-XX approving the agreement. 2) Direct that the City attorney make modifications to the document. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph, (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER RECOMMENDATION: Alternative 1. The City Attorney has met with the Township Attorney to review a draft of this document. The document attempts to respond to City Council and Township concerns. MOTION REQUESTED: Motion and second to adopt Resolution 98-XX Approving the "Construction and Maintenance Agreement for Sanitary Sewer and Water." SEWER.DOC RESOLUTION 98-XX A RESOLUTION APPROVING A CONSTRUCTION AND MAINTENANCE AGREEMENT FOR SANITARY SEWER AND WATER WITH SPRING LAKE TOWNSHIP MOTION BY: SECOND BY: WHEREAS, failing septic and private water systems in the South Shore Drive area of Spring Lake Township have created an environmental problem affecting the immediate residents, and WHEREAS, said environmental problems also affect the quality of water in upper and lower Prior Lake, and WHEREAS, alternate means of resolving the environmental issues have been examined, and WHEREAS, the extension of Sewer and Water service from Prior Lake to serve the South Shore Drive area have been identified as the only cost effective long term means of addressing this problem, and WHEREAS, the City Council desires that the City enter into a contract with the Township which memorializes the rights, responsibilities, and obligations of each party, and WHEREAS, the City Attorney's office has prepared such a document which has been reviewed by the parties to the agreement. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, that it approves the "Construction and Maintenance Agreement" for Sanitary Sewer and Water, and BE IT FURTHER RESOLVED that the City Council authorizes the Mayor and City Manager to execute the agreement on behalf of the City. SEWER.DOC Passed and adopted this I Mader Kedrowski Petersen Schenck I Wuellner {Seal} SEWER.DOC day of ,1998 YES NO I Mader I Kedrowski I Petersen Schenck Wuellner City Manager City of Prior Lake 03/31/98 TUE 14:42 FAX 612 452 5550 CAMPBELL @004 CONSTRUCTION ANn MAINTENANCE AGREEMENT FOR SANITARY SEWER AND W AIJ:t.It THIS AGREEMENT is entered into this day of , 1998 by and between the Spring Lake Township, a municipal corporation (hereinafter "Township") and the City of Prior Lake, a municipal corporation (hereinafter "City") for the construction and maintenance of a sanitary sewer and water facility to serve certain areas in the vicinity of Spring Lake, Scott County, Minnesota, and provides as follows: RECITALS WHEREAS, a Petition to Incorporate Spring Lake Township was filed with the Minnesota Municipal Board (hereinafter the "MMB") by citizens of Spring Lake Township on May 15, 1997, and WHEREAS, the Petition for Incorporation of the Township was denied by the MMB on July 8, 1997, as set forth in the Order of the MMB dated October 16, 1997; and, WHEREAS, as a part of the proceedings before the MME, on July 8th, 1997, the MMB took jurisdiction over approximately 80 acres along the South Shore of Spring Lake depicted in Exhibit A, attached hereto and incorporated herein, and legally described below as: All that portion of Goverrunent Lot 3 and Government Lot 4, Section 9 Township 114 Range 22, lying north and west of the northerly right-of-way of State of Minnesota Trunk Highway 13, aka Langford Blvd., aka Track F, R.L.S. 27. All plats and subdivisions of record and also those subdivisions and plats which are not of record. Including that PIO Government Lot 3 Lying W of Lot II, Pautz 2nd & .1A in Lots 2 &3. EXCEPT THAT P/O Government Lot 3 & com most westerly comer of Tract F, RLS #27, NE 429.25', NW 672.25', SW to SW Comer of Govenunent Lot 3, E along S line to POB, approx 11.72 ac.; all as records of the County Recorder of Scott County Minnesota. and did initiate, by its own action, a proceeding to annex the area legally described above into the City; and, W.n.r..1d:AS, due to the high percentage of failing and non-compliant on-site systems in the area of South Shore Drive, the Minnesota Pollution Control Agency has recommended that waste water treatment be provided through the City at the Metropolitan Council's Blue Lake Regional Wastewater Treatment Facility in Shakopee; and WHEREAS, the MMB has required the City, the Township and property owners along South Shore Drive to Meet and Confer on three occasions, with the intent and purpose of requiring the parties to negotiate a resolution of the annexation issues and septic system and water problems in the South Shore Drive area; and, WHEREAS, providing municipal services to replace the failing septic systems on properties alongSouth Shore Drive is the environmentally responsible thing to do, and 03/31/98 TUE 14:43 FAX 612 452 5550 CAMPBELL I4l OJl 5 WHEREAS, the City compiled an Annexation Task Force Report ("Reportll) dated April 4, 1997, incorporated herein as Exhibit B which predicts that the areas depicted in the Report as 7E and 7F would not be considered for annexation for five (5) year time period, at which time the extension of sanitary sewer and water to the area would be eligible for inclusion in the City's CIP; and WHEREAS, the parties to this Agreement, along with the local Watershed District, have agreed that correcting the sewer and water problems in the South Shore Drive area ultimately benefits and protects Upper and Lower Prior Lake; and WHEREAS, it is the City's practice to assess 100% of the cost to provide sanitary Sewer and water facilities to the benefitted properties and the City Council has expressed its opinion that resident~ in the South Shore Drive area should be treated in a similar manner as City residents arc treated if the City builds facilities to serve South Shore Drive properties; and WHEREAS, based on feasibility reports on the proposed project, the cost of the project will be less costly if constructed as a Township project rather than a City project because a project in the Township would not have to meet all City design standards; and, WHEREAS, the Metropolitan Council has advised the City and Township that the regional service capacity used for provision of service to the subject area will Dot be deducted from regional capacity allocated to the City as a result of this Agreement; and WHEREAS, the proposed project is intended to provide an environmentally sensitive solution to an immediate problem rather than to encourage development, therefore, the Township Supervisors have agreed to limit the density of future development in Area 7 E & 7F consistent with the Mel""}loIitan Council's Regional Blueprint; and, WHEREAS, the sanitary sewer and water facility referred to in this Agreement is intended to serve, to the extent Connection Units are available, the shaded areas within Exhibit A. Now, THEREFORE, in consideration of the mutual promises and covenants set forth herein, and for such good and valuable consideration, the sufficiency of which is not disputed, the City of Prior Lake, Spring Lake Township, and the Metropolitan Council agree as follows: 1. Dermitions. As they are used in this Agreement, the following terms shall have the meaning given to them in this Section: City shall mean the government of the City of Prior Lake, Minnesota. Townshi'l shall mean the govenunent of the Township of Spring Lake, Minnesota. Count]!. shall mean the government of Scott County, Minnesota. Connection Unit shall mean a residential or commercial building connection to the SSS06.07 2 0~J31/98 TUE 14:43 FAX 612 452 5550 CAMPBELL 141006 Facility system or any independent sanitary sewer and water service line that would utilize the Facility. Facilitv.. shall mean the sanitary sewer. including lift stations, and water facilities to be constrocted by the Township and connected to City utilities to serve the shaded area depicted in Exhibit A. MerrODolitan Council shall mean the agency created by Minnesota Statutes ~473.123. Parties shall mean the City of Prior Lake and Spring Lake Township. 2. Purnose. The City and Township desire to provide an environmentally sensitive and responsible solution to the problem of non-compliant and failing septic systems on certain properties along South Shore Drive in Spring Lake Township. Failed septic systems cause an enviromnental threat to Spring Lake which flows directly into Upper Prior Lake. Consequently. the waters of Upper and Lower Prior Lake are threatened if contaminates from the failed septic systems pollute Spring Lake. Connecting the properties with non-compliant or failing septic systems to municipal sewer and water will protect Spring Lake, Upper and Lower Prior Lake and preserve the property value of the homes in the area served by the municipal facilities. The City and Township desire to enter into this Agreement whereby the City will provide the Township with limited sanitary sewer and water capacity. The Area served by the Facilities provided pursuant to this Agreement will be limited to maintain development densities consistent with the Metropolitan Council's Regional Growth Strategy. This limitation will be implemented by limiting the number of Connection Units permitted to connect to the Facility. 2.1 Recitals. The recitals set forth above are incorporated herein as if fully set forth. 2.2 Exhibits. Exhibits A and B referred to in the Recitals above are incorporated by reference into this Agreement as if they were fully set forth herein. 3. Fees. As part of the consideration for pennitting the Township to connect the Facility to the City's sanitary sewer and water pipes. the Township shall pay the following City fees: City SAC and WAC per Connection Unit; City Water tower fees per Connection Unit; City Sewer and Water Trunk: Acreage Fees based on acres. 3.1 Amount of Fee. The amount of the City fees shall be that fee adopted by the City Council and in effect at the time the fee is required to be paid. 3.2 Metropolitan Council Reserve Capacity Charges. In addition to the City fees set out above, the Township shall pay directly to the Metropolitan Council all Reserve Capacity Charges in the form of Service Availability Charges ("SAC") as determined by the Metropolitan Council. 3.3 Payment of Fees Required. All fees set forth in this Paragraph 3 shall be paid upon 58806.07 3 03/31/98 TUE 14:44 FAX 612 452 5550 CAMPBELL [4] 007 completion by the Township of the construction of the Facilities and before the Facility is operational. In addition to the City fees set out above, the Township shall pay the Metropolitan Council's Reserve Capacity Charges. 4. Prelimin~ Desim. The preliminary design of the Facility shall be in substantial accord with the design outlined in the Preliminary Engineering Report of WSB & Associates, Inc. prepared by Donald W. Sterna and dated November 14, 1997. A copy of this Preliminary Report is incorporated by reference hereto as Exhibit C. 5. Plans and SDecifications. Prior to the commencement of construction of me Facility, it shall be the obligation of the Township to provide to the City plans and specifications for the Facility, prepared by a professional engineer licensed by the State of Minnesota. Such designs shall be in accordance with the requirements of the City Public Works Design Manual, incorporated by reference herein. The designs shall include a water metering facility of a type sufficient to perform the metering of flow required by Paragraph 17.4 of this Agreement. The City shall have the right to review and approve the plans and specifications for the Facility, said comments to be received ,"ithin fifteen (15) business days after submission of a complete set of the plans and specifications to the City. The plans and specifications also shall be submitted by the Township to the Prior Lake/Spring Lake Watershed District, Metropolitan Council, the MilUlesota Department of Health and Minnesota Pollution Control Agency for review and comment. 5.1 Change Orders. Any Change Orders during construction shall be submitted to the City Engineer at least fifteen (15) days prior to approval by the Township. If the City Engineer fails to comment on the proposed change order prior to such time as the Change Order is before the Township Board for consideration, the City shall be deemed to have concurred in the Change Order, in which case the Change Order will be deemed to comply with the City's Public Worb Design Manual. In no event shall the City be liable in any marmer for construction delays which may occur as a result of a Change Order or the City's response thereto. 6. Necessarv Aoorovals and Riehts-Of-Wav. Prior to the commencement of constrUction of the Facility, the Township shall have commenced quick take proceedings to acquire necessary right- of-way or have obtained construction easements and other necessary approvals for right-of-way from persons and entities owning land or rights in land across which the Facility will be constructed. Prior to connection of the Facility to the City, the Township will apply for, satisfy and receive all approvals and conditions required by the Metropolitan Council; including but not limited to an amendment to their Comprehensive Plan and a Tier 1 and Tier 2 Comprehensive Sewer Plan. 6.1 Permits. Prior to the commencement of construction of the Facility. the Township will apply for and have received pennits from the Prior Lake/Spring Lake Watershed District; the Minnesota Department of Health for watermain extension/construction; Scott County for utility and driveway permits; and the Minnesota Pollution Control Agency for sanitary sewer extension/construction. A copy of all permit applications and permits granted shall be provided to the City prior to the commencement of construction of the Facility. A copy of the Minnesota Pollution Control Agency permit application for 58806.07 4 .. ... 0.1/31/98 TUE 14: 44 FAX 612 452 5550 CAMPBELL 141 008 sanitary sewer extension/construction shall also be forwarded to the Metropolitan Council. 7. InsDection Durin~ Construction. It shall be the obligation of the Township to provide for adequate and customary inspection of the Facility during its construction by a professional engineer licensed in the State of Minnesota in order to ensure that the construction comports with the plans and specifications described in Paragraph 5 of this Agreement. 8. Costs. The cos~ of all aspects of the design. construction and inspection of the Facility including the costs of any oversizing to serve future expansion within the Township shall be borne by the Township. 9. As-Built Drawin~. Within three (3) months of completion of the Facility, the Township shall provide As-Built Drawings, certified by a professional engineer licensed in the State of Minnesota, to the City and the Metropolitan Council and shall retain a copy of the same in the records of the Township. The Township shall also submit the As-Built Drawings in electronic format to the City in a format compatible with the City's current software, AutoCAD Release 13. If the As-Built Designs indicate that the Facility as constructed is not SUbstantially in conformance with the City Public Works Design Manual and the approved plans and specifications and all modifications thereof, the City shall notify the Township in writing of the alleged deficiencies. The Township Engineer and the City Engineer shall meet to determine whether such lack of conformity with the Design Manual or approved plans and specifications is, in their professional opinion, substantial and whether the alleged deficiency will adversely affect the City sanitary sewer and water systems. Minor deviations may be waived by the City. The City will not unreasonably withhold waiving a minor deviation if the nature of the deviation will not adversely affect the Facility and City systems. If it is determined that any nonconfonnity is substantial and may, if not corrected, adversely affect the Facility or the City system, the City shaH have the right to disconnect the Township Facility from the City's sanitary sewer and water pipes. 10. Ree,ional Limitations as Limitations on Townshill. The Township recognizes that certain regionallitnitations in sanitary sewer capacity exist which might impact the capacity of sanitary sewer which shall be available for allocation to the Township in the future. As such, the number of individual connections to the Facility by the Township shall not exceed the number approved by the Metropolitan Council in the Townships Comprehensive Sewer Plan or eighty (80) Connection Units, whichever is smaller. Any increase in the number of Connection Units authorized to connect to the Facility shall require an amendment to this Agreement executed in writing by the parties. 11. ;Reserved Caoacitv Charees. The Township agrees to pay the Metropolitan Council reserve capacity charges (which presently takes the form of Service Availability Charges ("SAC")), or any statutory successor to such charges, pursuant to Metropolitan Council regulation and policy. Such payments will be made directly to the Metropolitan Council. 11.1 Future Connections. All future Coooection Units to the Facility shaIl be subject to the payment provisions in Paragraph 3 and this Paragraph. Such payments shall be made prior to actual connection to the Facility. 58806.07 5 03/31/98 TUE 14:45 FAX 612 452 5550 CAMPBELL 141 059 11.2 Payment of Metropolitan Council and City Fees. Before the Facility is authorized to connect [0 the City, the Township shall pay: (1) the Metropolitan Council reserved capacity charges. at the then-prevailing rate, for the number of Connection Units cOIUlected to the Facility and (2) the City SAC. WAC. Water Tower and Trunk acreage charges, at the then prevailing rate, for the number of Connection Units connected to the Facility. 12. Notice t,o Parties. The Township shall provide to each of the Parties to this Agreement 30 days' notice of properties connected to, or to be connected to the Facility. The notice shall identify the owner, address and legal description the property(ies) to be added. 13. Maximum Flow Permissible. The Township shall be entitled to discharge from its sanitary sewer flow from up to, but not more than the number of COIUlection Units authorized in Paragraph 10 of this Agreement. The right to discharge sanitary sewage which the Township obtains under the terms of this Agreement. and the amount of capacity which the Township has the right to use is obtained exclusively by the Township for use by the properties identified and no portion. allotment, apportionment or share of the rights so obtained by the Township may be assigned, allocated by the Township to any property outside of the shaded area identified in Exhibit A. 14. Reeional Bluenrint. The Township agrees not to approve any land use for any property in Exhibit A if the development densities are inconsistent with the Metropolitan Council's Regional Blueprint. 15. Ownershin of the Facilit~. Upon completion of the Facility, the Township shall retain all right. title and interest in and to all portions of the Facility which lie within the Township. and the Township shall convey to the City all of the Township's right, title and interest in and to the portions of the Facility, if any, which lies within the City. 16. Annexation. The City agrees not to initiate annexation proceedings involving any properties served by the Facility while the original debt instrument associated with the financing of the Facility is outstanding. 17. Use. Monitorine- and Maintenance of the Facilitv. The Parties agree that the following actions are necessary to monitor and maintain the Facility and its use: 17.1 Township Ordinance. Metropolitan Council Rules. The Township will adopt an Ordinance which supplements and aids the enforcement of the Waste Discharge Rules of the Metropolitan Council. but which will not preempt those Rules. It is the express agreement of the Parties that the Waste Discharge Rules of the Metropolitan Council (including the Metropolitan Council's strength discharge provisions) shall apply to users of the Facility within the boundaries of the Township. The use of the Facility shall be in all respects consistent with the prOVisions of the Permit for the Construction and Operation of a Disposal System. issued to the Township by the MPCA, and shall also be consistent with the tenns of the Ordinance, which incorporates and applies with full force and effect the provisions of the Permit. Prior ~e Citv Code. The Ordinance to be adopted by the Township shall also 58806.07 6 03/31/98 TUE 14:45 FAX 612 452 5550 CAMPBELL 14I 010 incorporate the provisions from the Prior Lake City Code as may be amended from time to time attached hereto as Exhibit liD". Any future amendments to the Prior Lake City Code relating in any manner to sanitary sewer or water, which apply to City residents, shall also apply to Township residents served by the Facility. The City shall provide the Township Clerk with notice of any such Code provisions. Upon receipt of notice from the City, the Township shall provide to its residents served by the Facility notice of said Code provisions. The Township shall be responsible for enforcement of said City Code provisions for its residents cOIUlected to the Facility. Failure to enforce said Code provisions shall be considered a breach of this Agreement. By execution of this Agreement, the Township agrees that it will take no action to rescind or modify the Ordinance before it has provided written notice of such action to the City I the Metropolitan Council, and the Prior Lake/Spring Lake Watershed District, not less than thirty (30) days in advance of any proposed action by the Township Board to rescind or amend the Ordinance. 17.2 Sump Pwnps. No roof runoff, sump pump, subsurface or surface water drainage shall be connected to the sanitary sewer. All sump pump discharge systems shall have a permanently installed discharge line, which shall not at any time discharge clear water into the sanitary sewer system. The sump pump discharge system shall consist of a rigid discharge line, without valving or quick connections for altering the path of the discharge. 17.3 Access For Inspections. The Township will grant access at reasonable times and upon reasonable notice to the City and the Metropolitan Council to its sanitary sewc;r and water hookup records in order to permit the City and the Metropolitan Council to verify that all City Charges and the Reserved Capacity Charges paid by the Township are accurate. 17.4 Metering. The Township agrees to install and maintain a flow meter on the water main connection at no cost to the City of Prior Lake. The Township shall be responsible for the cost of acquisition, installation and maintenance of the electronic controls and metering devices for the flow. Once electronic metering is functioning, the meter shall be read by representatives of the Township and reported to the City on a routine basis during the 1st ten (10) days following the City's billing statement date (i.e. 2/1,4/1,6/1, 10/1, & 12/1 billing cycles). 17.4.1 Pavment of Fees to Citv. The City shall bill the Township based on the flow reported at the prevailing City sanitary sewer and water rates in effect at the time. The Township shall be responsible for determining and implementing a method to bill and collect fees from individual properties cOIU1ected to the Facility within the Township. Payment to the City shall not be dependent on the Township collecting fees from the individual properties connected to the Facility. 58806.07 7 03/31/98 TUE 14:45 FAX 612 452 5550 CAMPBELL ~ 0,11 18. 19. 20. 21. 17.4.2. Estimated UsaE!e Pennitted. During periods when the metering device is out of operation the flow from the Township shall be estimated based upon the average prior usage method applicable to all estimated City customers. 17.5 Maintenance of the Facility. The Township shall be responsible for all maintenance of the Facility. both routine and otherwise. The Township shall axmually have their meter inspected and calibrated to assure that it is operating properly and measuring flow accurately. The Township shall provide certification of the calibration to the City. The Township shall implement an alUlual program of jetting their sanitary sewer, to include cleaning of lift stations, to prevent obstructions. The City shall provide a semi-annual watennain flushing. The actual flushing of the lines shall be coordinated with the City in order to prevent City residents from being affected by the water flushing disturbance. In the event of water or sewer main breaks I the Township shall notify the City immediately of the situation. Except as herein described, the City will have no responsibility for maintenance of the Facility. Service requests and complaints shall be received and handled by the Township. The City may, on occasion, at its discretion and upon the request of the Township provide maintenance service. over and above that identified herein, to the Facility on a fee for service basis, If the City agrees to provide service, the scheduling thereof is at the discretion of the City. Jnterruotion of Service. The City shall not be responsible for any interruption of service regardless of the reason for occurrence. Procedures For Disconnection Or Refusal To Provide Services. In the event the Township breaches any provision of this Agreement the City shall provide the Township with written notice of the breach and provide the Township with thirty (30) days to cure the breach. Failure to pay charges due to the City shall be considered a breach of this Agreement. If the Township fails to cure the breach within the time specified, the City may disconnect the Facility from the City sanitary sewer and warer pipes. It is understood by the Parties, however, that the City retain the right to shut off service in accordance with its policy in emergency cases. Postinuf $r;c;urit...:. The Township shall provide the City an Irrevocable Letter of Credir in a fonn acceptable to the City, in an amount equal to fees set out in Paragraphs 3 and 11 for the number of Connection Units authorized but nor connected to the Facility. The Irrevocable Letter of Credit (ILOC) shall be maintained until all Connection Units authorized under this Agreement have been connected to the Facility. With the written consent of the City Council the amount of the ILOC may be reduced by an amount which reflects the number of Connection Units that have connected to the Facility subsequent to the initial connections. Consent to reduce the amount of the ILOC shall not be reasonably withheld. The City may draw on the ILOC to remedy any default under this Agreement: including payment for obligation pursuant to Paragraphs 3, 11, 17 and 27. The ILOC will be used to reimburse the City for any expenses, including attorney's fees, incurred in cOlUlection with enforcing any of the provisions of this Agreemenr. Remedies. Each right. power or remedy herein conferred upon the City is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to City 7 at law or in equity, or under any other agreement, and each and every right, 56806 . 07 8 01/31/98 TUE 14:46 FAX 612 452 5550 CAMPBELL ~012 power and remedy herein set forth or otheIWise so e~isting may h<<: exercised from time to t~e as often and in such order as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any other right. power or remedy. 22. Notice. Notice provided under this Agreement shall be in writing, signed by the officers signatory to this Agreement or their successors and shall be sent by Certified Mail, Return Receipt Requested, to the Parties at the following addresses: To the Township: Mr. William J. Lerschen, Township Clerk 2771 South Shore Drive Prior Lake, Minnesota 553721 To the City: 16200 Eagle Creek Avenue. S.E. Prior Lake, Minnesota 55372-1714 Attention: City Manager To the Met Council: Metropolitan Council 230 East fifth Street St. Paul, Minnesota 55101-1634 Attention: Office of Local Assistance To the Prior Lake/Spring Lake Watershed District: 16670 Franklin Trail S.E. Suite 110 Prior Lake, Minnesota 55372 23. Hold Jlarmless And Indemnification. The Township of Spring Lake hereby indemnifies and holds the Ciry and the Metropolitan Council harmless from any and all causes of action or claims arising out of or in connection with the Facility or this Agreement. The Township further agrees to indemnify the City and the Metropolitan Council against, and hold them harmless from those claims. liabilities, demands, damages, costs and expenses arising out of negligent or willful actions by the Township, its employees or residents which result in penalties imposed against the City or th~ Iv.ietropolitan Council, whether by federal, state or local govenunental units, for violations of permits which are required for the City or the Metropolitan Council to continue operation of the sewer and water facilities to which the Township is cOIUlected. 24. Jurisdiction. This Agreement shall be governed by the laws of the State of Minnesota. 1 Township Clerk is an elected position. The name and address of the Township Clerk may differ from the name provided in rhis Agreemenr depending on rhe date notice is provided. Before sending notice ro rhe Township please determine rhe current Township Clerk. 5880G.07 9 03/31/98 TUE 14:46 FAX 612 452 5550 CAMPBELL 141013 25. Successors And Ass~. The rights, privileges and obligations of the Parties under this Agreement are intended to, and shall remain in full force and effect and shall bind any successor agencies or entities to which the authorities and obligations of the Parties may be assigned by law. 26. Effective Date. The Agreement shall be effective upon all of the fOllowing having taken place: (a) this Agreement having been approved by Resolution of the Township Board and by Resolution of the City Council and (b) this Agreement having been signed by all of the officers designated as signatories below, and (c) payment of the sum described in Paragraph 27. 27. J\dministrative Fee,. The Township shall pay to the City an Administrative Fee equal to three percent (3 %) of the lesser of the Design Engineer's Opinion of Probable Cost for construction of the Facility or the amount of the award of the bid for construction of the facility. 28. Recordin&. This Agreement shall be recorded against all properties depicted in the shaded area in Exhibit" A II at the Township's sole cost and expense. The purpose of this recording provision is to insure that the owners of property depicted in the shaded area in Exhibit "A" have notice that the number of Connection Units allowable under this Agreement is limited to the number authorized in Paragraph 10 of this Agreement. The existence and/or recording of this Agreement against a particular property is not intended to guarantee or entitle that a particular property will allowed connection to the Facility. 29. Dunlicate Oris!inals,. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first hereinabove written. Spring Lake Township City of Prior Lake By: Its: By: Wesley M. Mader, Mayor AND: By: Its: By: . Frank Boyles, City Manager 58806.07 10 . ~r. 0~/31/98 TUE 14:46 FAX 612 452 5550 CAMPBELL I4J 014 STATE OF MINNESOTA ) (S5. COUNTY OF ) The foregoing instrument was acknowledged before me this day of ,,19_ ,by and, the and .' respectively. of Spring Lake Township, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by the Township. Notary Public STATE OF MINNESOTA) (ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1998, by., the , of the Metropolitan Council. on behalf of the Metropolitan Council pursuant to the authority granted by the Council. Notary Public STATE OF MINNESOTA ) (55. COUNTY OF SCOTI ) The foregoing instrUment was acknowledged before me this day of , 1998. by Wesley M. Mader and Frank Boyles, respectively the Mayor and City Manager of the City of Prior Lake, a Minnesota munieipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public THIS INSTRUMENT WAS DRAL" lr..U By: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center CUrve Eagan. MN 55121 SLP:kgm 58806.07 11 03/31/98 TUE 14:47 FAX 612 452 5550 CAMPBELL ~ 0.1.5 9-4-14: 9-4-15: 9-4-17: 9-5-14; saB06" 07 (A) EMuDIT "D" To CONSTRUCTION AND MAINTENANCE AGREEMENT FOR SANITARY SEWER AND WATER Prior Lake Citv Code Provisions IncorDorated Herein (See Section 17.1 of this Agreement) DEFICIENCY OF WATER AND SHlJ.lllliG V"'"J.l" WATER: The City shall not be liable for any deficiency or failure in the supply of water to consumers, whether occasiom:d by shutting the water off for the purpose of making repairs or connections or by any other cause whatever. In case of frre, or alann of fire, water may be shut off to insure a supply for fire fighting, or in making repairs or construction of new works, water may be shut off at any time and kept shut off so long as may be necessary. RESTRICTED HOURS FOR SPRINKLING: Lawn or garden sprinkling, irrigation, car washing and other non-essential outdoor use of the Municipal Water System shall be restricted to an odd/even system in conjunction with an 11:00 a.m. to 5:00 p.rn.. ban effective May 1 through September 1. Residents with an odd house number may water lawns or use an outside house, when necessary; before 11:00 a.m. and after 5:00 p.m. only on odd numbered calendar days. Residents with an even house number may water lawns or use an outside house, when necessary, before 11:00 a.m. and after 5:00 p.m. only on even numbered calendar days. This applies to all municipal water users. Exceptions shall be made for landscaping; including newly seeded or sodded lawns, within the firs! thirty (30) days of placement. Private wells used for irrigation shall be exempt from these restrictions. Municipal water customers who have been notified of a violation of these restrictions, and who violate them a second time, shall be fined $25.00 for each day of violation. The fine shall be added to the offenders next water bill. A third violation shall be cause for discontinuance of water service. After payment of all outstanding bills, fines and connection fees (as stated in the City Fee Schedule), the water service shall be restored. PRIVATE WATER SL.l'.l'....IES: No water pipe of the City water supply system shall be connected with any pump; well or tank that is connected with any source of water supply and when such are found, the Inspector shall notify the owner to disconnect the same, and if not done immediately, the public water supply shall be turned off. Before any new connection to the City system is permitted, the Inspector shall ascertain that no cross connections will exist when the new connection is made. It is to be specifically understood that water from private sources, when a public supply is available, cannot be used for any purpose within the City limits, except for outside uses and one faucet per residential dwelling unit. TYPES OF WASTE PROHIBll.~D: Except as hereinafter provided, it shall be unlawful to discharge any of the following described waters or wastes into the Municipal sanitary sewer system: 12 03/31/98 TllE 14:47 FAX 612 452 5550 CAMPBELL I4J 016 1. Any liquid or vapor having a temperature higher than 150 degrees Fahrenheit; 2. Any water waste containing more than 100 parts per million by weight of fat, oil or grease; 3. Any gasoline, benzine, naphtha, fuel oil or other inflammable or explosive liquid, solid or gas; 4. Any garbage that has not been shredded so that the garbage particles are smaller than one-half inch in their largest dimension; 5. Any ashes, cinders, sand, mud, straw, shavings, metal lass, rags, feathers, plastic, wood, paunch manure or any other solid or viscous substance capable of causing obstruction to the flow in sewers or other inteIference with the proper operation of the sewage system; 6. Any waters or wastes containing a toxic or poisonous substance in sufficient quantity to injure or interfere with any sewage treatment process or which constitutes a hazard to humans or animals or creates any hazard in the receiving waters of the sewage treatment plant; 7. Any waters or wastes containing suspended solids of such character and quantity that unusual attention or expense is required to handle such materials at the sewage treatment plant: 8. Any noxious or malodorous gas or substance capable of creating a public nuisance; 9. Grease, oil and sand interceptors shall be provided when, in the opinion of the Plumbing Inspector, they are necessary for the proper handling of liquid wastes containing grease in excessive amounts or any inflammable wastes, sand or other lUlOnful ingredients; except that such interceptors shall not be required for private dwelling units which discharge only normal wastes therefl"om. Such grease and oil interceptors shall be of substantial construction, watertight and equipped with easily removable covers which when bolted in place, shall be gaslight and watertight. All grease, oil and sand interceptors shall be maintained by the owner, at his expense, in continuously efficient operation at all times. (B) The admission into the public sewers of any water or wastes: 1. Having a five-day Biochemical Oxygen Demand greater than 300 parts per million by weightj or 2. Containing more than 350 parts per million by weight of suspended solids; or 3. Containing any quantity of substances having any characteristics described in subsection (A)l through (A)9 hereof; or 4. Having an average daily flow greater than 2 % of the average daily sewage flow of the Municipal sewer system shall be subject to the review and approval of the City Engineer. The owner shall provide, at his expense, such preliminary treatment as may be necessary to: a. Reduce the Biochemical Oxygen Demand to 300 parts per million and the suspended solids to 350 parts per million by weight; or Reduce objectionable characteristics or constituents to within the maximum limits provided for in subsections (A)l through (A)9 hereof, or b. 58806.07 13 03/31/98 Tim 14:47 FAX 612 452 5550 CAMPBELL !41 0 J-7 (C) (D) (E) (F) (G) 9-5-15: 58806.07 c. Conuol the quantities and rates of discharge of such waters or wastes. Plans, specifications and any other pertinent information relating to proposed preliminary treatment facilities shall be submitted for the approval of the City Council and of the Water Pollution Control Commission of the State of Minnesota, and no constrUction of such facilities shall be conunenced until said approvals are obtained in writing. Where preliminary treatment facilities are provided for any waters or wastes, they shall be maintained continuously in satisfactory and effective operation by the owner, at his expense. The owner of any property served by a building sewer carrying industrial wastes shall install a suitable control manhole in the building sewer line to facilitate observation, sampling and measurement of the wastes. Such manhole, when required, shall be accessible and safely located, and shall be constructed in accordance with plans approved by the City Engineer. The manhole shall be installed by the owner at his expense, and shall be maintained by him so as to be safe and accessible at all times. All measurements, tests and analyses of the characteristics of waters and wastes. to which reference is made in subsections (A) and (B) above shall be determined in accordance with the methods employed by the Minnesota Department of Health, and shall be determined at the control manhole provided for in subsection (D) above. or upon suitable samples taken at said control manhole. In the event that no special manhole has been required, the control manhole shall be considered to be the nearest downstream manhole in the public sewer to the point at which the building sewer is connected. No statement contained in this Section shall be construed as preventing any special agreement or arrangement between the City and any industrial concern whereby an Industrial waste of unusual strength or character may be accepted by the City for treatment, subject to payment therefore by the Industrial concern. It shall be unlawful to discharge into the Municipal sanitary sewer system any industrial wastes unless the prior approval of the Plumbing Inspector is obtained. The Plumbing Inspector shall approve the discharge of industrial wastes when, in his opinion, the proposed wastes will not be of an unusual amount or character. DISCHARGE OF SURFACE WATERS PROnl.DlTED: It shall be unlawful to discharge or cause to be discharged into the Municipal sewer system, either directly or indirectly, any roof, storm, surface or ground water of any type or kind. No warer shall be discharged from any air conditioning unit or system either directly or indirectly into the Municipal sanitary sewer system without prior written approval of the City Engineer. Separate charges shall be made in case that air conditioning waters shall be discharged into the sewer system and said charges shall be based upon the amount of water discharged into said sewer system and the amount so discharged shall be measured by a metering device installed for that purpose and approved by the City Engineer. Said charge shall be in addition to those provided in Section 9-6-5 of the Prior Lake City Code. 14 u ~4/01/98 WED 12:56 FAX 612 452 5550 CAMPBELL 141002 WillUun S. RtMlz:tVill And1eW J- Mfu.AnhuT Michtul C. Couri MarcuS W. Miller RADZWILL & COURl AJlo~11D l4w 70s Ct1IItntl Awn... E.ut 1'0 BOi& 3$ St. Midwel. MN 55376 (612) 497~1930 (612) 497-2599 (FAX) March 31. 1998 VIA FACSIMILE AND U.S. MAlL City Council City of prior Lake C/o Suesan Pace, City Attorney Campbell Knutson Suite 317 Eagandale Office Center 13&0 Corporate Center Curve Eagan. MN 55121 RE:, I-roposed Contract For Delivery of Sewer and Water Servicg- City of Prior L~ke and Spring Lake Township Dear Council Members; The Spring Lake Town Board received your invitation to prescnt the results of its report on the Orderly AJU'Lexation Agreement to the Prior Lake City Council. The Town Board has decided that) prior to presenting the }'epoIt to the Prior Lake City CounciL it would like to fwiher revievv and discuss the report at a workshop meeting. The Town Board will t:ontaet the City to make further arrangements to present the report. The Town Board waS also provided with a copy of the latest draft agreem~t to provide sewer and water service to the Township. It is our understanding that consjderation of the proposed agreement is to be an agenda item at your City Council meeting on Monday, Apri16. The Town Board feels that it is important that the City Council have the Town Boa.rd's concerns ~eg81'ding the proposed ags'eement jn front of them prior to consideration of that agreement. 04/01/98 WED 12:56 FAX 612 452 5550 CAMPBELL !4J 00:\ Letter to Prior Lake City Council Aprill.1998 Page 2 The proposed contract was rc:viewed based upon input from :myself and the ,project engineer retained by the Town.ship. Additional comments md concerns were raised by the Town. Board Supervisors. Following are the issues of major concern 8I1.d suggested changes. As the City staff is well aware. this is a complex project with a very narrow margin for error financially. That is one of the reaSons that the City' has indicated that they prefer that it remain in the Township. Any costs that can be saved will only help eliminate the overall problem for both govelmnental bodies. The first major conceln affects the overall agreement. Essentially. as drafted, the agreement only sets forth obligations tha.t the township must undertake or adhere to. The agreement must be mutual in nature. The City is delivering a service and is being paid for that service. The township agrees that those facilities within the Township should and will be maintained. The City :must, however. warrant uninte1l'upted service and proper maintenance of its facilities so as not to lllterfere wi.th servicing of the area. Secondly, the Township objects to being considered the Sanle as a developer. The township is a political subdivision. It will not be leaving the area, and it has bank accounts and assets wbich aJ'e readily identifiable. as does the City. Therefore. there should be no termination of services set forth in the agreement. If there is nonpayment the City can simply obtain a judgment against the township md rc:.co\1er its costs. If the township otherwise violates the Agreement a restraining order or injunc;tion can be readily obtained along with recovelY of costs and fees. Likewise, the to'Wtlship should have the same remedy against the City for a willful failure to provide service. These arc the custOt11ary and fair remedies in such an agreement. Indenu.\ityand hold harmless c::lauses should also be reciprocal. The Town Board has some disagreement with the wording ofa few of the whereas clau.ses. They also would like to see a few additional whereas cla.uses added. 1 will attempt to have a. revised copy of the proposed agreement before the Council on Monday evemng. The Township objeets to the proposed administrative fee as Set forth in the agreement. The township has no objection to paying to the City proper reimbursement for review of Plans atld Specifications and other tasks required by this Agreement. Such a figure will not even begin to approach the proposed 3% of construction costS. The township is D,ot a. developer, and is only requesting sanitary sewer sexvil;e to correct an environmental and 0.. '101/98 WED 12:56 FAX 612 452 5550 CAMPBELL f4J004 Letter to Prior Lake City Council April 1. 1998 Page 3 hc;alth threat. The township is not seeking profit from delive:ry of serviceS 8.S a developer would. Additionally, this adds more lUU'Leed~d costs to an already marginal project. This section of the proposed agreement should be changed to read that the Township will pay for only those charges referenced above. The agreement needs to clarify wha.t payment is expected upfront from the Township at the tiIne of connection. As presently drafted it is undeat whether payment is to be made for all allowable connection units. aU that arc actually commel'lcing service at the time:: of hook up, or whether each connection unit fees are to be paid as they are acwally hooked up. The Township would prefer that fees be paid as connections are actually being made to the system. j A concern was raised by the project engineer regarding the contract provision that requires payment of all fces etc. prior to any hookup to the system. The engineer h.s pointed out that becausc of th.e nature of me projcl;t some drainfields and wells may be out of service: prior to completion of the entire project. Some provision needs to be made for early hookup of some of these residenc;es- Due to the limitations on density within the area, i.mposition of acreage fees would be inequitable to some of the larger lots within the servicc area, eVen though these individuals will have no ability to further subdivide and will only receive the same benefit from the system as a typical city lot. The township would therefore propose that acreage cha.rges be limited to a per 11l1it basis based upon a typical city lot. Allocation of the full trunk ac1'eage charges to the City also is problematic since some of the sanitary sewer systcm could be considered functioning as a trunk line for wbic;h said acreage charges are typically used to pay for these types of trUnk facilities. tn that case. some credit should be given ba.ck. on these fees based upon what percenta.ge of costs would nonnally be alloca.ted to the trunk facilities within the proposed system. That section of the proposed agreement regarding annexation should include language tha.t the City would not initiate or support annexation within the area fOl' a period of twenty years. The proposed agreement establishes the nwnber of llva.ilable connection units within the area at 80. The Town Board would like to have this nuntber raised to 90 as the maximum in Qrder to possibly furthcr assist in the financial feasibl\ity of the project. The: proposed agreement establishes that the township residents within the service area 04/01/98 WED 12:57 FAX 612 452 5550 CAMPBELL raJ 005 Letter to Prior Lake City Council April 1. 1998 Page 4 would be paying the same service rates as those within the City, but would also be responsible for maintenance of the facility within the township, Assuming the service fees include maintenance and administrative costs already, the Township resiclc:nts would be: paying twice for costs. which only adds to the projects financial burden.. Either some: adjustment should be made to these eharges or the City could perfonn maintenance and sen-'ice on the township system as ~art of this agtce:rnent. The project engineer has made various changes in language regarding inspection of the project. He has also raised the issue of whether or not It flow meter will accurately read the :flow into and out of the township system. Inaccurate reads by any meter would most likely complicate the billing responsibility and create undo admlnistrative costs to both parries_ In addition, these meters would only add undo costs to a project that is already financially burdensome to the Township .residents. This letter is to let the City Council know of the township's major concerns with this aueement. At this point we ha.ve not yet received aU of the: attached exhibits~ so we are not completely aware of the extent of the proposed seMee area. The town board will be present at next Monday.s City Council meeting to respond to any questions that the City Coundllnay have at that time. It may be productive to consider a joint workshop meeting involving the Town Board and thc City Council. Cc: Don Sterna. WSB Jim Lerschen, Town Clerk Town Board Supervisors TOTAL F.0S