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STAFF REPORT <br />DATE:April 7, 2026 <br />REGULAR <br />TO:City Council <br />FROM:Chad Isakson, Assistant City Engineer <br />AGENDA ITEM: Authorize Design Services for the Section 16 – Phase 2 Sanitary Sewer <br />Extension <br />REVIEWED BY: Nicole Miller, City Administrator <br />Clarissa Hadler, Finance Director <br />Jason Stopa, Community Development Director <br />Pete Tholen, Public Works Director <br />Nate Stanley, City Engineer <br />CORE STRATEGIES: <br />☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services <br />☐ Responsive, transparent, adaptive governance ☐ Balanced Finances now and future <br />☒ Managed Growth ☒ Resilient Infrastructure <br />BACKGROUND: The City of Lake Elmo has been working with the Urban Land Institute Technical <br />Assistance Panel (ULI TAP) on the development of the city owned property at Ideal Avenue and <br />Stillwater Boulevard. The City Council received a presentation at the March 10, 2026 meeting where it <br />was generally supportive to scope and design the extension of sanitary sewer north of the railroad tracks <br />for construction in 2027. <br />ISSUE BEFORE COUNCIL: Should the City Council authorize preparation of plans and specifications <br />for the Section 16 – Phase 2 Sanitary Sewer Extension? <br />PROPOSAL DETAILS/ANALYSIS: The proposed improvements include extending the sanitary sewer <br />gravity main from an existing manhole to the north side of the railroad tracks. The alignment proposes to <br />run north/south outside of the county right-of-way on city owned property and auger/bore a casing pipe <br />under the Union Pacific Railroad Tracks. A project location map is provided for reference. <br />Design authorization will allow time to determine the routing of the sanitary sewer pipe, coordinate with <br />the county on their proposed improvements to Ideal Avenue (CSAH 13) scheduled for construction in 2029, <br />and allow time for the permitting process, and better estimate the cost impacts to include in the 2027 Capital <br />Improvement Plan. <br />FISCAL IMPACT: If authorized, Bolton and Menk will complete final design and bidding services in a <br />not to exceed amount of $46,100. Staff will also be recommending geotechnical investigations (soil <br />borings) be completed during this phase. Future authorization will be requested following the city’s