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HomeMy WebLinkAbout#21 - Municipal Support for CSAH 13 Phase 2STAFF REPORT DATE: October 6, 2020 REGULAR TO: Mayor and City Council FROM: Kristina Handt, City Administrator AGENDA ITEM: CSAH 13/Ideal Ave Road Project BACKGROUND: The Council heard a presentation from Washington County on the CSAH 13 project at the June work session. Concerns were expressed at that meeting about the cost of the project to Lake Elmo given that the road layout was being changed to accommodate development in Oakdale. Staff was to continue conversations with the county and look for ways to reduce costs. At the August work session council provided further direction that they were ok with the turn lane option and did not support contributing to the trail along 50th St. ISSUE BEFORE COUNCIL: Should the city council approve the resolution for municipal consent? PROPOSAL DETAILS/ANALYSIS: Staff continued conversations not only with Washington County to bring the costs down but also with the City of Oakdale. The City of Oakdale has offered to split the city portion of the costs 56/44 (Oakdale/Lake Elmo). With an estimated city cost share of $825,000 total that would make Lake Elmo’s share $363,000. These details have been written into the resolution for municipal consent that is included in your packet. The county is opposed to the last paragraph that limits Lake Elmo’s contribution to $363,000. The reasons they give include: 1. The estimate is based on a preliminary design at a 30% level, and the estimate will continue to change as we: a. Work on further details during final design b. Receive the low bid c. Inspect final quantities installed during construction 2. It is not the intent of preliminary design to set a maximum contribution limit, but to provide an estimate based on the preliminary layouts 3. This goes against the county’s cost participation policy For the reasons above the county is asking that the last paragraph be removed if the city intends to consent to the project. One reason to consider keeping the cap is the county's poor track record in estimating and staying within budget on right-of-way acquisition, and in particular keeping cities informed when the costs are being exceeded. In the past we have been very surprised by R/W cost overruns. Of the $825K, almost $200K is R/W with $161K being on the Lake Elmo side. Another is, we also don't have any resolution with the county on the price for the City land for storm water ponding. Much more was paid for the pond in phase 1 than is being offered for the city’s land in phase 2. As you may remember, when Lake Elmo asked Oakdale about sewer service to the 180 acres they conditioned it upon municipal consent for CSAH 13, amongst other items. We continued the sewer conversation with Oakdale as well and gained more information for the council to consider. The rate study is estimated to cost $7,500; the sewer (capital infrastructure upgrades) study is estimated to cost $17,500 (see attached); the two cities would agree to a cost share based upon acres served in each community from the lift station at Stillwater Blvd and Ideal Ave. While the study on the infrastructure has not been completed there are concerns about downstream capacity and the capacity of the lift station at Ideal Ave/Stillwater Blvd to provide service to Lake Elmo. These items will be further reviewed in the study to come up with a cost estimate. High level cost estimates at this time are that the lift station may cost $600,000 and there could be a million or more needed to address downstream capacity of a pipe that goes under UPRR. Lake Elmo would contribute a proportionate share to those costs. Lastly, Oakdale would request that Lake Elmo withhold any residential development on the 180 acres for 4 years so as not to have an adverse impact on the Willowbrook development. FISCAL IMPACT: Costs for the road are estimated at $363,000 contribution to Washington County from Lake Elmo. The city has spent almost $10,000 in engineering costs on the project to date. Costs for the studies related to sewer are estimated at $25,000. The capital costs may be around $1.6 million (very rough estimates) but more will be known once the study is completed. Lake Elmo would contribute a proportionate share to those costs. In addition, ongoing costs to Oakdale for sewer service are unknown at this time but could be estimated once the rate study is complete based upon estimated flows. Lastly, additional sewer costs to develop the 180 acres were presented to the council at the June work session. The city contribution for public sewer lines and oversizing as described in the report (completed by Focus and HKGI) is estimated at $772,000. OPTIONS: 1) Approve Resolution No 2020-086 Approving Municipal Support for CSAH 13 from CSAH 14 to 44th St N. 2) Amend and then Approve Resolution No 2020-086 Approving Municipal Support for CSAH 13 from CSAH 14 to 44th St N. 3) Do not provide municipal support for CSAH 13 from CSAH 14 to 44th St N. RECOMMENDATION: Motion to Approve Resolution No 2020-086 Approving Municipal Support for CSAH 13 from CSAH 14 to 44th St N. ATTACHMENTS: • Resolution No 2020-086 • Sewer Study Quote • Rate Study Quote RESOLUTION NO. 2020-086 CITY OF LAKE ELMO, MINNESOTA A RESOLUTION APPROVING MUNICIPAL SUPPORT FOR COUNTY HIGHWAY 13 (IDEAL AVENUE) PHASE 2 IMPROVEMENT PROJECT, FROM CSAH 14 TO 44TH STREET NORTH, BY WASHINGTON COUNTY WHEREAS, Washington County has, through its Capital Improvement Plan (CIP) recommended a project on County State Aid Highway (CSAH) No. 13, also known as Ideal Avenue, to improve pedestrian access and accommodations, the ride of CSAH 13, drainage, as well as safety; and WHEREAS, Washington County, in consultation with the City of Lake Elmo and Oakdale, engaged in a corridor study process for the Phase 2 Improvements, beginning in April 2019 to identify potential and prioritized improvements for the CSAH 13 corridor; and WHEREAS, Washington County, together with the Cities of Lake Elmo and Oakdale have engaged in community engagement as part of the study and preliminary design effort intended to gather and consider public feedback for the proposed improvements; and WHEREAS, a preferred concept project layout, also known as the turn lane alternative, showing the proposed improvements on and along CSAH 13, dated May 6, 2020, has been prepared and provided to both the City of Lake Elmo and Oakdale; and WHEREAS, a preliminary project cost estimate for the Project has been prepared and presented to the City; and WHEREAS, prior to advertising for contractor bids on the Project, Washington County will present the City with a Cooperative Agreement for the cost sharing of the improvements; and WHEREAS, the cities of Oakdale and Lake Elmo have agreed to split the city cost share 44% (Lake Elmo) and 56% (Oakdale); and WHEREAS, the city cost share is estimated at $825,000; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo supports the preferred concept project layout for CSAH 13, from CSAH 14 to 44th Street North, also known as the turn lane alternative, dated May 6, 2020; and NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of Lake Elmo that the City of Lake Elmo supports the County continuing with the development of final plans and right-of-way acquisition necessary for the construction of the Project; and BE IT FURTHER RESOLVED, that the City Council of the City of Lake Elmo commits to contribute no more than $363,000 as its share towards the CSAH 13 Phase 2 Improvement Project. Adopted by the City Council this 6th day of October 2020. ___________________________________ Mike Pearson, Mayor Attest: _______________________________ Julie Johnson, City Clerk Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 1701 West Knapp Street, Suite B, Rice Lake, WI 54868-1350 SEH is 100% employee-owned | sehinc.com | 715.236.4000 | 800.903.6970 | 888.908.8166 fax September 21, 2020 RE: Oakdale, MN Lake Elmo Sanitary Sewer Service Study Brian Bachmeier, PE Director of Public Works/City Engineer City of Oakdale 1584 Hadley Avenue North Oakdale, MN 55128 Dear Brian: As requested, we are submitting this proposal to review the impacts to the Lift Station 6 and the City’s downstream sanitary sewer system if additional flows were added to the system. The City of Lake Elmo has requested by mutual agreement to add future flows from 180-acres of undeveloped land near Ideal Avenue and County Road 14. The land is proposed to be developed with industrial, commercial and residential uses, and would generate approximately 200-300 gallons per minute (gpm) of additional sanitary sewer flow. The sewage from this property would flow to the City’s existing lift station number 6 located at Ideal Avenue and Stillwater Boulevard, which then flows to Sewer Districts 9, 11, 7, 12, 15 and 17 where it then flows into the west Met Council interceptor sewer line. It appears there may be capacity challenges at lift station 6 and in downstream districts 11, 15 and 17 if this flow was added. The proposed engineering services consist of conducting a lift station 6 and downstream system impact study and preparing a memo summarizing the findings. Capacity issues will be identified with and without the proposed additional flow range of 200-300 gpm from Lake Elmo. A preliminary cost estimate will be prepared for required downstream improvements, including an approximate portion due to the Lake Elmo flow. The proposed services, along with estimated labor hours, are shown in detail on the enclosed spreadsheet. We propose to perform these services for an estimated maximum fee of $17,500. Fees will be billed based on actual hours spent at current billing rates plus the actual cost of Brian Bachmeier, PE September 21, 2020 Page 2 reimbursable expenses. Additional services requested by the City will be invoiced on the basis of actual hours spent at current billing rates plus the actual cost of reimbursable expenses. All services will be invoiced for monthly. We anticipate completing this study and summary memo within approximately eight weeks of being notified to proceed. If this proposal is acceptable, please sign a copy and return it to us for our records. We are also available to review this proposal in detail with you at your convenience. Thank you for the continued opportunity to serve the City of Oakdale, we appreciate it! Sincerely, Todd M. Blank, P.E. Principal Accepted this ______ day of ________________, 2020 CITY OF OAKDALE By: ______________________________ Brian J. Bachmeier Director of Public Works/City Engineer s:\ko\o\oakda\common\proposals\lake elmo san sew service study prop 9-21-20.docx PROPOSAL FEE ESTIMATE 9/21/2020 OAKDALE, MINNESOTA Lake Elmo Sanitary Sewer Service Study CITY PROJECT HOURS PROJ.SR. WW SR. ELECT.STAFF LEAD WORD NO.TASK MGR.ENG.ENG.ENG.TECH TECH PROC. Blank Friel Carlson Weber/Miller Thene/Brummel Story/Bona Hanson STUDY 1 Review project with City staff 1 2 2 2 Review LS 6 project area on site 1 2 2 3 Gather and review existing lift station 6 data and information 1 2 1 4 4 Gather and review existing Districts 15 & 17 flow information, record plans and other related information 1 2 6 5 Identify new LS6 general sizing and reconstruction needed 1 4 8 6 Identify duty and backup electrical power and control panel design assumptions for new LS6 1 1 1 7 Prepare cost estimate of LS6 reconstruction and downstream pipe improvements 1 3 1 8 8 Review capacity of Districts 8, 11, 15 & 17 for added flows from Lake Elmo addition 3 6 9 Identify and summarize impacts for added flows from Lake Elmo addition 4 8 4 10 Prepare draft memo for capacity impacts & imps-with and without Lake Elmo flows 1 6 8 1 11 Figure showing sewer impacts and improvements needed 1 4 2 8 12 Review meeting to discuss draft memo and gather feedback and respond to questions 1 2 2 13 Finalize memo for Council approval 1 4 1 4 1 Subtotal 9 36 4 63 6 8 2 Total Estimated Fee $17,500 SCOPE APPENDIX to Agreement for Municipal Advisor Services dated: June 3, 2016 Between the City of Oakdale, MN and Baker Tilly MA, LLP Page SA 1 | 7 RE: Sewer Cost Allocation with Lake Elmo Study DATE: September 29, 2020 This Scope Appendix is attached by reference to the above named agreement (the “Agreement’) between the City of Oakdale, MN (the “Client”) and Baker Tilly MA, LLP and relates to services to be provided by Baker Tilly MA, LLP. Scope of Work Baker Tilly MA, LLP (“BTMA”) will perform the following services: The purpose of this study is to assist the City of Oakdale in preparing a cost allocation for providing the City of Lake Elmo with access to discharge of wastewater for approximate ly 180 acres into the City of Oakdale’s interceptor going to the Metropolitan Council for treatment. Our cost allocation will reflect recent operating costs, including Sewer Administration, Lift Station Maintenance, and Collection System Maintenance as well as anticipated capital costs from the Utility System Replacement Fund. Task 1 Review Background Information • Review historical financial information • Review operating information including wastewater volumes by lowest level of detail • Review the proposed connection point and routing of Lake Elmo flow volumes through the City of Oakdale to the MCES interceptor • Review the assets (lift stations, collection system, etc.) that will be used to pump and convey wastewater received from Lake Elmo • Review the overall collection system by pipe size and lengths • Review the City's capital improvement plan for the Water and Sewer Utility • Review the Lake Elmo customer base and projections for anticipated growth Task 2 Conduct Study • Develop a formula for the allocation of costs to the City of Lake Elmo by the City of Oakdale to provide wastewater collection services for a portion of the City of Lake Elmo. The cost allocation formula will be equitable to each City and will be based on recent costs incurred by the City of Oakdale in operating their Sewer Utility. It will also provide a basis for allocating future costs. • Review the proposed cost allocation formula with the City of Oakdale. Based on this review, we will modify or change the cost allocat ion as appropriate. • Review the proposed cost allocation formula with the Cities of Oakdale and Lake Elmo in a workshop session. Task 3 Prepare Draft Memorandum of Findings Baker Tilly will prepare a Draft Memorandum of Findings that will contain our findings and recommendations. We will submit one electronic copy to each City for their review and comment. SCOPE APPENDIX to Agreement for Municipal Advisor Services dated: June 3, 2016 Between the City of Oakdale, MN and Baker Tilly MA, LLP Page SA 2 | 7 We will review and discuss the Draft Memorandum with the City and representatives of the City of Lake Elmo. Based on our discussion and review of the Draft, Baker Tilly will make modifications or changes, incorporating each City's comments into the final report, as appropriate. Deliverables Final Memorandum of Findings summarizing our analysis and cost allocation formula will be provided to the City. Project Team Your engagement team consists of dedicated professionals who are utility and public sector specialists as well as experienced business advisors, who understand your needs, are proactive in identifying issues and creative and flexible in providing solutions. Each member of this team is deeply committed to providing you with Exceptional Client Service. The following tables describe the roles and qualifications of your engagement team members. Project Manager Nicholas Dragisich, P.E., Firm Director Qualifications: Nick is team leader for BTMA’s financial management practice. He has more than 30 years of management experience, including service as a city administrator, assistant city manager and city engineer. As the Assistant City Manager – Operations for Spokane, Washington, his departments included Capital Programs Planning/G.I.S., Engineering Services, Real Estate, Building Codes, Environmental Programs, General Services, Planning, Solid Waste Collection and Recycling, Transportation, Wastewater and Stormwater Management, and Water and Hydroelectricity. He joined Baker Tilly in 2000 and became the management consulting services practice group leader in 2003. Nick has been directly responsible for or involved in numerous utility rate studies and cost analyses, long-range financial planning models, organizational management studies, staffing analyses, fiscal impact studies, as well as developing many Excel®-based computer models for clients in California, Iowa, Illinois, Indiana, Kansas, Maryland, Minnesota, Montana, Missouri, Nebraska, New York, North Carolina, North Dakota, Texas, Utah, Virginia, Washington and Wisconsin. He holds a Master of Business Administration, a bachelor’s degree in civil engineering and is a licensed professional engineer in Minnesota and Washington. Nick is also MSRB Municipal Advisor Series 50 Qualified. Project Support Patty Kettles, Director Qualifications: Patty has more than 24 years of experience working with BTMA clients on various projects, including performing utility rate analyses and financial feasibilities, financing options, capital improvement programming and debt management. Patty holds a Master of Business Administration from the University of St. Thomas and a Bachelor of Science degree in Finance from the University of Minnesota. She is also MSRB Municipal Advisor Series 50 Qualified. SCOPE APPENDIX to Agreement for Municipal Advisor Services dated: June 3, 2016 Between the City of Oakdale, MN and Baker Tilly MA, LLP Page SA 3 | 7 Client Responsibilities In order to conduct this study, the City will need to designate a staff member to serve as a project manager. This person will be responsible for assisting Baker Tilly with gathering accurate and timely data needed to complete the project and to assist in arranging for required meetings. At a minimum the following information will be needed to complete the study: • Wastewater flow data • Proposed wastewater flow volumes from the City of Lake Elmo • Proposed connection point and routing of Lake Elmo flow volumes through the City of Oakdale to the MCES interceptor • Wastewater asset information including mains, lift stations and other capital items • 2021 detailed operating budget (if available) • Updates to any information provided for the wastewater rate study completed in September 2020. Anticipated Schedule We will complete the Study within 6-8 weeks of receiving the requested information. The timeline provided assumes that all necessary information is made available to Baker Tilly in a timely manner and that City staff is available for required meetings. This draft schedule does not anticipate any unforeseen delays or other circumstances that would result in a later completion date. Compensation and Invoicing Baker Tilly proposes to complete this study as described for the lump sum fee of $7,500 exclusive of any out-of-pocket expenses such as travel and copying. If additional work is requested and authorized by the Client that is outside of the scope of services or required due to situations discussed herein, Client will be notified and it will be invoiced at either an agreed upon fee or at our hourly rates as referenced in Appendix A of the agreement and shown below: Title 2020 Hourly Rate Principal, Senior Officer $260 Manager and Senior Staff $215 Staff $160 Associates $75 SCOPE APPENDIX to Agreement for Municipal Advisor Services dated: June 3, 2016 Between the City of Oakdale, MN and Baker Tilly MA, LLP Page SA 4 | 7 Conflicts of Interest Attachment A contains important disclosure information that is applicable to this Scope Appendix. We are unaware of any additional conflicts of interest related to this Scope Appendix that exist at this time. Termination This Scope Appendix will terminate according to the terms of the Agreement. SCOPE APPENDIX to Agreement for Municipal Advisor Services dated: June 3, 2016 Between the City of Oakdale, MN and Baker Tilly MA, LLP Page SA 5 | 7 If this Scope Appendix is acceptable, please sign below and return one copy to us for our files. We look forward to working with you on this important project. Sincerely, Signature Section: The services and terms as set forth in this Scope Appendix are agreed to on behalf of the Client by: Name: _______________________________ Title: _______________________________ Date: _______________________________ SCOPE APPENDIX to Agreement for Municipal Advisor Services dated: June 3, 2016 Between the City of Oakdale, MN and Baker Tilly MA, LLP Page SA 6 | 7 Attachment A Important Disclosures Non-Exclusive Services Client acknowledges and agrees that Baker Tilly, including but not limited to Baker Tilly US, LLP, Baker Tilly Municipal Advisors, LLC, Baker Tilly Capital, LLC, and Baker Tilly Investment Services, LLC, is free to render municipal advisory and other services to the Client or others and that Baker Tilly does not make its services available exclusively to the Client. Affiliated Entities Baker Tilly US, LLP is an independent member of Baker Tilly International. Baker Tilly International Limited is an English company. Baker Tilly International provides no professional services to clie nts. Each member firm is a separate and independent legal entity, and each describes itself as such. Baker Tilly US, LLP is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International or act on Baker Tilly International’s behalf. None of Baker Tilly International, Baker Tilly US, LLP, nor any of the other member firms of Baker Tilly International has any liability for each other’s acts or omissions. The name Baker Tilly and its associated logo is used under licens e from Baker Tilly International Limited. Baker Tilly Investment Services, LLC (“BTIS”), a U.S. Securities and Exchange Commission (“SEC”) registered investment adviser, may provide services to the Client in connection with the investment of proceeds from an issuance of securities. In such instances, services will be provided under a separate engagement, for an additional fee. Notwithstanding the foregoing, Baker Tilly may act as solicitor for and recommend the use of BTIS, but the Client shall be under no obligation to retain BTIS or to otherwise utilize BTIS relative to Client’s investments. The fees paid with respect to investment services are typically based in part on the size of the issuance proceeds and Baker Tilly may have incentive to recommend larger financings than would be in the Client’s best interest. Baker Tilly will manage and mitigate this potential conflict of interest by this disclosure of the affiliated entity’s relationship, a Solicitation Disclosure Statement when Client retains BTIS’s services and adherence to Baker Tilly’s fiduciary duty and/or fair dealing obligations to the Client. Baker Tilly Capital, LLC (“BTC”) Baker Tilly Capital, LLC (“BTC”) is a limited service broker -dealer specializing in merger and acquisition, capital sourcing, project finance and corporate finance advisory services. BTC does not participate in any municipal offerings advised on by its affiliate Baker Tilly Municipal Advisors. Any services provided to Client by BTC would be done s o under a separate engagement for an additional fee. Baker Tilly Municipal Advisors (“BTMA”) is registered as a “municipal advisor” pursuant to Section 15B of the Securities Exchange Act and rules and regulations adopted by the SEC) and the Municipal Secu rities Rulemaking Board (“MSRB”). As such, BTMA may provide certain specific municipal advisory services to the Client. BTMA is neither a placement agent to the Client nor a broker/dealer. The offer and sale of any Bonds is made by the Client, in the sole discretion of the Client, and under its control and supervision. The Client acknowledges that BTMA does not undertake to sell or attempt to sell bonds or other debt obligations and will not take part in the sale thereof. Baker Tilly, may provide services to the Client in connection with human resources consulting, including, but not limited to, executive recruitment, talent management and community survey services. In such instances, services will be provided under a separate scope of work for an additional fee. Certain executives of the Client may have been hired after the services of Baker Tilly were utilized and may make decisions about whether to engage other services of Baker Tilly or its subsidiaries. Notwithstanding the foregoing, Baker Tilly may recommend the use of Baker Tilly or a subsidiary, but the Client shall be under no obligation to retain Baker Tilly or a subsidiary or to otherwise utilize either relative to the Client’s activities. SCOPE APPENDIX to Agreement for Municipal Advisor Services dated: June 3, 2016 Between the City of Oakdale, MN and Baker Tilly MA, LLP Page SA 7 | 7 Conflict Disclosure Applicable to Municipal Advisory Services Provided by BTMA. Legal or Disciplinary Disclosure. BTMA is required to disclose to the SEC information regarding criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, cust omer complaints, arbitrations and civil litigation involving BTMA. Pursuant to MSRB Rule G -42, BTMA is required to disclose any legal or disciplinary event that is material to the Client’s evaluation of BTMA or the integrity of its management or advisory p ersonnel. There are no criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations or civil litigation involving BTMA. Copies of BTMA filings with the SEC can currently be found by accessing the SEC’s EDGAR system Company Search Page which is currently available at https://www.sec.gov/edgar/searchedgar/companysearch.html and searching for either Baker Tilly Municipal Advisors, LLC or for our CIK number which is 0001616995. The MSRB has made available on its website (www.msrb.org) a municipal advisory client brochure that describes the protections that may be provided by MSRB rules and how to file a complaint with the appropriate regulatory authority. Contingent Fee. The fees to be paid by the Client to BTMA are or may be based on the size of the transaction and partially contingent on the successful closing of the transaction. Although this form of compensation may be customary in the municipal securities market, it presents a conflict because BTMA may have an incentive to recommend unnecessary financings, larger financings or financings that are disadvantageous to the Client. For example, when facts or circumstances arise that could cause a financing or other transaction to be delayed or fail to close, BTMA may have an incentive to discourage a full consideration of such facts and circumstances, or to discourage consideration of alternatives that may result in the cancellation of the financing or other transaction. Hourly Fee Arrangements. Under an hourly fee form of compensation, BTMA will be paid an amount equal to the number of hours worked multiplied by an agreed upon billing rate. This form of compensation presents a potential conflict of interest if BTMA and the Client do not agree on a maximum fee under the applicable Appendix to this Engagement Letter because BTMA will not have a financial incentive to recommend alternatives that would result in fewer hours worked. In addition, hourly fees are typically payable by the Client whether or not the financing transaction closes. Fixed Fee Arrangements. The fees to be paid by the Client to BTMA may be in a fixed amount established at the outset of the service. The amount is usually based upon an analysis by Client and BTMA of, among other things, the expected duration and complexity of the trans action and the work documented in the Scope Appendix to be performed by Baker Tilly. This form of compensation presents a potential conflict of interest because, if the transaction requires more work than originally contemplated, Baker Tilly may suffer a loss. Thus, Baker Tilly may recommend less time -consuming alternatives, or fail to do a thorough analysis of alternatives. BTMA manages and mitigates conflicts related to fees and/or other services provided primarily through clarity in the fee to be charged and scope of work to be undertaken and by adherence to MSRB Rules including, but not limited to, the fiduciary duty which it owes to the Client requiring BMTA to put the interests of the Client ahead of its own and BTMA’s duty to deal fairly with all persons in its municipal advisory activities. To the extent any additional material conflicts of interest have been identified specific to a scope of work the conflict will be identified in the respective Scope Appendix. Material conflicts of interest that arise after the date of a Scope Appendix will be provide to the Client in writing at that time.