HomeMy WebLinkAbout#07 - DA Amendment for Hammes Estates 3rd Addn STAFF REPORT
DATE: April 2, 2019
CONSENT
AGENDA ITEM: Approve Development Agreement Amendment for the Hammes Estates 3rd
Addition Watermain Oversize Reimbursement Costs
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Kristina Handt, City Administrator
Ken Roberts, Planning Director
Chad Isakson, Assistant City Engineer
ISSUE BEFORE COUNCIL: Should the City Council approve an amendment to the Development
Agreement for the Hammes Estates 3rd Addition to adjust the watermain oversize reimbursement by the
City to account for the required 12-inch Trunk Pressure Reducing Valve (PRV)?
BACKGROUND AND PROPOSAL DETAILS/ANALYSIS: The Hammes Estates 3rd Addition
development agreement was approved on March 21, 2018 and the developer began construction in July,
2018. The project includes the extension of 12-inch trunk watermain as required by the City to complete a
critical 12-inch watermain loop connection from Keats Avenue to Inwood Avenue. Along this 12-inch
extension a pressure reducing valve is required at the interconnect point between the City high pressure
zone and south intermediate pressure zone. The 12-inch trunk watermain and 12-inch pressure reducing
valve (PRV) were included in the project plans approved for construction on October 3, 2018 (see attached
watermain exhibit).
When the developer and staff prepared the original development agreement for council approval the
agreement accounted for a trunk watermain oversize reimbursement per Section 28 in the amount of
$40,055. This amount accounts for the pipe oversizing costs for the 12-inch trunk watermain but did not
account of the oversize costs between an 8-inch PRV and a 12-inch PRV.
The developer is preparing to initiate construction work on Phase B of the Hammes Estates 3rd Addition
which includes the construction of the 12-inch PRV and recently has contacted City staff regarding added
costs that were not included in the original development agreement. The developer is requesting the City
to amend the development agreement by increasing the watermain oversize reimbursement amount to
address the additional oversize costs for the 12-inch PRV.
FISCAL IMPACT: The 12-inch pressure reducing valve (by-pass) to be located within the Hammes
Estates 3rd Addition is programmed in the City 2019-2023 Capital Improvement Program to be completed
in 2019 in the amount of $120,000 (Hammes Estates 12” bypass). Since the developer is required to install
an 8-inch PRV at the developer’s cost, the actual City costs for this improvement are reduced by incurring
only the incremental oversize costs to a 12-inch PRV.
RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent
Agenda, an amendment to the Development Agreement for the Hammes Estates 3rd Addition, Section 28,
to address the additional trunk watermain oversize reimbursement for the required 12-inch PRV in the
amount of $90,180. If removed from the consent agenda, the recommended motion for the action is as
follows:
“Move to approve an amendment to the Development Agreement for the Hammes Estates 3rd Addition,
Section 28, to address the additional trunk watermain oversize reimbursement for the required 12-inch
PRV in the amount of $90,180.”
ATTACHMENTS:
1. Trunk Watermain Exhibit and PRV Plan.
2. 2019-2023 Water Fund Capital Improvement Plan.
3. Oversize Cost Estimates.
4. Hammes Estates 3rd Addition – Section 28 Amended Development Agreement.
TotalSourceProject #Priority 2019 2020 2021 2022 2023
2,230,000365,000 460,000 170,000 985,000 250,000Vehicle Replacement Fund Total
Water Fund
PW-043 50,00050,000Service Truck 1
PW-044 15,00015,000Trac Hoe 2
W-004 120,000120,000Pressure Reduction Valve 3
W-007 120,000120,000Hammes Estates 12" bypass 4
W-008 132,000132,000Village East Trunk Watermain 2
W-010 800,000800,000Paint Water Tank at PW 4
W-013 188,000188,000Watermain Oversizing 3
W-017 50,00050,0002020 Street & Utility Improvements-Water 3
W-018 50,00050,0002021 Street & Utility Improvements-Water 3
W-019 50,00050,000SCADA Upgrade 2
W-022 35,00035,000Utility Truck 3
W-023 200,00050,000 50,000 50,000 50,000Water Meter Change Out 1
W-024 300,000300,000Automated Radio Read System 3
W-026 253,000253,000OV sewer extension Phase 7; water component 3
W-027 132,000132,000Pressure Reduction Station-Connection to WT #3 3
W-030 100,000100,0002023 Street Projects-water component 3
2,595,000408,000 367,000 135,000 400,000 1,285,000Water Fund Total
52,497,9166,488,500 10,232,000 17,112,066 13,265,350 5,400,000GRAND TOTAL
Thursday, November 29, 2018Produced Using the Plan-It Capital Planning Software
To:Date:3/22/2019
Total Cost
2,737.00$
1,147.00$
23,924.00$
1,438.00$
29,246.00$
Total Cost
12,939.00$
6,395.00$
96,421.00$
3,671.00$
119,426.00$
90,180.00$
Equipment
Materials
City of Lake Elmo
Attn: Jack Griffin
3880 Laverne Ave N
TOTAL UPSIZING COST =
TOTAL COST 12" PRV STRUCTURE =
Lake Elmo, MN 55042
Coating Subcontractor
TOTAL COST 8" PRV STRUCTURE =
Materials
Furnish & Install 8" PRV Structure
Labor
Coating Subcontractor
Labor
Furnish & Install 12" PRV Structure
Equipment
28. CITY PAYMENTS. The City shall reimburse the Developer in the amount of $40,055 for oversizing
costs associated with the installation of 12 inch water main and reimburse the Developer in the amount
of $90,180 for oversizing costs associated with the installation of 12 inch pressure reducing valve (PRV) as
identified on the Plans. City payments shall be made within 30 days of the City’s final acceptance of the
Improvements, but only if the Developer is not in default with respect to any terms of this Agreement.
This payment by the City shall be the City’s only responsibility with regard to construction of the
Improvements and in no case shall act as a waiver of any other right of the City under this Agreement or
under applicable laws, ordinances or rules.