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HomeMy WebLinkAbout#09 - Hamlet Sanitary Sewer STAFF REPORT DATE: April 21, 2020 REGULAR AGENDA ITEM: Approve Resolution Receiving Feasibility Report and Calling Hearing on Improvement for the Hamlet on Sunfish Lake Sanitary Sewer Extension SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Sarah Sonsalla, City Attorney Marty Powers, Public Works Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council accept the Feasibility Report and call a public hearing for the Hamlet on Sunfish Lake Sanitary Sewer Extension to be held at the May 19, 2020 Council meeting? BACKGROUND: On October 16, 2018, the City Council authorized the preparation of a feasibility report for the Hamlet on Sunfish Lake Sanitary Sewer Extension. A petition requesting municipal sanitary sewer service was received from the Hamlet on Sunfish Lake property owners in August 2018. The petition was signed by 27 of the 41 properties benefitting from the requested improvements. Hamlet on Sunfish Lake is located along the northwest side of the Old Village MUSA at the intersection of Kindred Way North and 43rd Street North, just west of the Legacy at North Star subdivision. The subdivision was constructed in 1998 as a cluster open space development consisting of 41 residential properties. Each property is served by a private water supply well and a shared sanitary sewer conveyance system and shared community wastewater treatment system. The privately owned and operated community wastewater treatment system was determined to be non-compliant in 2006 due to several system deficiencies. The Hamlet on Sunfish Lake HOA is currently operating the system in accordance with a Schedule of Compliance dated March 13, 2014 and Amended January 18, 2017 through the Minnesota Pollution Control Agency (MPCA), and per the Stipulation Agreement dated May 1, 2007 with the City of Lake Elmo. The Schedule of Compliance requires the subdivision to connect to the city sanitary sewer system and decommission the private wastewater system by December 31, 2020, or to abandon and replace the private wastewater treatment system altogether. The Stipulation Agreement, dated May 1, 2007 between the City of Lake Elmo and Hamlet on Sunfish Lake HOA contains provisions requiring the Hamlet on Sunfish Lake HOA to connect the HOA System to the city sanitary sewer system when the city sewer becomes available for connection. Prior to connection of the HOA System the city shall inspect the HOA system to determine if it is in good working order. The inspection may include televising of the sanitary sewer pipes. The Stipulation Agreement also requires the HOA to pay all costs, including construction, engineering, legal and administrative, and all city connection charges from the city fee schedule that is current at the time of connection, to connect the HOA System to the city sanitary sewer, to decommission the HOA wastewater treatment system, to inspect the HOA sewer collection system for deficiencies, and to make system repairs of the HOA sewer system. The agreement indicates that all costs are to be paid by the HOA prior to the city awarding a construction contract for the work. Hamlet on Sunfish Lake and the City of Lake Elmo have been planning for the neighborhood’s connection to the city sanitary sewer since 2007 as outlined in the Stipulation Agreement. As part of this planning process the city has completed its Comprehensive Plan Amendment to bring the subdivision into the Old Village Area MUSA. PROPOSAL DETAILS/ANALYSIS: The Hamlet on Sunfish Lake Sanitary Sewer Extension Feasibility Report identifies the scope of improvements necessary to extend the city sanitary sewer to the Hamlet on Sunfish Lake subdivision to replace the ongoing use of the non-compliant wastewater treatment system. The report also identifies the improvements necessary to decommission the private wastewater treatment system and to make repairs and correct deficiencies in the HOA private sanitary sewer system to ready the private sewer system to be transferred to city ownership and maintenance. In order to connect the HOA system to the city sanitary sewer, the city sewer system must be extended from its current location in the Legacy at North Star development, extending the 10-inch sewer main approximately 550 feet to the property line, then another 410 feet to the west side of the HOA wastewater treatment system. At this location the HOA sewer conveyance system can be directly connected to the city sanitary sewer to remove the HOA wastewater treatment system from operation. Minimum requirements have been identified to decommission the HOA wastewater treatment system, including pumping out and disposing of the remaining wastewater from two septic tanks and 1 lift station, bulkheading and abandoning in place all tanks and structures, and disconnecting and salvaging control panels and equipment. In the wetland treatment cell, the PVC stand pipes must be exposed and removed and the liner must be perforated. The decommission work to be completed by the city project does not include any grading or fill of the wetland cell or infiltration basin. Additional site work will likely be required to be completed by the HOA before the site can be repurposed for alternative use. The recommended HOA sanitary sewer conveyance system repair and replacement work is more extensive and involved than originally anticipated. The detailed televising and inspections of the HOA sanitary sewers revealed extensive defects and deficiencies that must be corrected before the city can assume ownership and operation and before the street pavements get reconstructed in 2021. Deficiencies include extensive major sags in the main line sewer piping, often exceeding 20% of pipe depth and including several pipe runs at negative grade. With backfall occurring throughout the pipe system the sewer mains hold standing water on a permanent basis, and the system becomes susceptible to frequent blockage, backups, and reduced capacity. To address these deficiencies this report provides two options. The first option addresses the minimum repairs and replacements intended to address only the most severe deficiencies in the system. This option includes complete replacement of approximately 3,000 feet of sewer pipe and 7 manhole structures. The second option provides for the complete replacement of approximately 4,000 feet of sewer main and 13 manhole structures to assure a more comprehensive repair and more reliable functioning sewer system. For the second option it also provides the opportunity to upsize the sewer main to provide a route with sufficient capacity to address future municipal sewer beyond the Tapestry neighborhood. To account for this additional capacity the city sewer fund could be used to pay for the pipe oversizing. A project schedule for the Hamlet on Sunfish Lake Sanitary Sewer Extension Improvements is outlined within this report. The improvements to extend and connect the HOA system to city sanitary sewer and decommission the existing HOA wastewater treatment system is recommended to be completed as one project during the 2020 construction season to meet the MPCA Schedule of Compliance date of December 31, 2020. However, it is recommended that the HOA sewer collection system repairs and replacement be completed together with the Hamlet on Sunfish Lake Street and Watermain Improvements scheduled for construction in 2021. The total estimated project cost is $1,319,500. This includes $544,500 for the improvements to be completed in 2020, including $160,630 to extend the public sanitary sewer and connect to the HOA system, $72,000 to decommission the HOA wastewater treatment system, $265,885 for payment by the HOA for City and Met Council sewer availability and connection charges, and $45,923 for city trunk sewer oversize recovery costs. The 2021 improvement costs total $775,000 including $620,000 for the HOA Sanitary Sewer Repair and Replacement work, and $155,000 to oversize the sanitary sewer through the Hamlet subdivision with 10-inch sanitary sewer pipe. FISCAL IMPACT: The total estimated project cost is $544,500 for the improvements to be completed in 2020 and $775,000 for the improvements to be completed in 2021. All costs are required to be paid upfront in accordance with the 2007 Stipulation Agreement between the city and Hamlet on Sunfish Lake HOA. Payment must be made from the HOA in the estimated amount of $489,500 for the 2020 improvements and $620,000 for the 2021 improvements. Payment must be made from GWSA Land Development LLC (Legacy at North Star developer) in the estimated amount of $55,000 for completing a portion of the developer’s required improvements. The city sewer fund would cover the optional oversizing cost in the estimated amount of $155,000 if the 10-inch sewer is installed as part of the 2021 improvements. Contractor bids should be received and the estimated project costs amended following bid receipt and prior to awarding any respective contracts. As an alternative to upfront payment, this report has also prepared preliminary assessment rolls in the event that the HOA requests and the council is agreeable to allow all or a portion of the project costs to be assessed against the individual benefiting properties. Special assessments would be levied in accordance with MN Statutes Chapter 429 and consistent with the city’s Special Assessment Policy. If assessed, the assessable amount of the of the improvements would be assessed 100% to the benefitting properties using a residential equivalent unit method. Each benefitting residential property would be assessed 1 Residential Equivalent Connection (REC), or 1 SAC unit. There are 41 residential properties within the Hamlet on Sunfish Plat and 1 property owned by GWSA Land Development LLC. A preliminary assessment roll has been prepared for the sanitary sewer extension and connection improvements, and for the HOA sanitary sewer repair and replacement improvements. Both assessment rolls can be found in the Appendix of this report and are based on 100% of the improvements being assessed 100% to the benefitting properties. The sanitary sewer assessments are typically payable over 20 years. RECOMMENDATION: Staff is recommending that the City Council approve a Resolution, receiving the Feasibility Report and calling a public hearing for the Hamlet on Sunfish Lake Sanitary Sewer Extension. The recommended motion for this action is as follows: “Move to approve Resolution No. 2020-040, receiving the Feasibility Report and Calling a Public Hearing for the Hamlet on Sunfish Lake Sanitary Sewer Extension.” ATTACHMENTS: 1. Resolution Receiving Report and Calling for Hearing on Improvements. 2. Notice of Hearing on Improvement. 3. Hamlet on Sunfish Lake Sanitary Sewer Extension – Location Map. 4. Hamlet on Sunfish Lake Sanitary Sewer Extension – Project Schedule. Feasibility Report (available for review at City Hall). CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2020-040 A RESOLUTION RECEIVING A FEASIBILITY REPORT FOR THE HAMLET ON SUNFISH LAKE SANITARY SEWER EXTENSION AND CALLING HEARING ON IMPROVEMENT WHEREAS, pursuant to City Council authorization, adopted on October 16, 2019, a feasibility report has been prepared by FOCUS Engineering, Inc. for the Hamlet on Sunfish Sanitary Sewer Extension; and WHEREAS, the feasibility report recommends that benefitting properties be assessed all or a portion of the cost of the improvements pursuant to the City’s Special Assessment Policy and Minnesota Statutes, Chapter 429; and WHEREAS, the feasibility report provides information regarding whether the proposed improvement is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvements as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. NOW, THEREFORE, BE IT RESOLVED, 1. That the City Council will consider the improvements in accordance with the report and the assessments of the abutting properties for all or a portion of the cost of the improvements pursuant to Minnesota Statues, Chapter 429 at an estimated total project cost of $1,319,500. 2. A public hearing shall be held on such proposed improvements on the 19th day of May, 2020 and conducted by electronic means pursuant to Minnesota Statutes Section 13D.021 because of the COVID-19 pandemic during a regularly scheduled City Council meeting, at or approximately after 7:00 P.M. and the clerk shall give mailed and published notice of such hearing and improvement as required by law. ADOPTED BY THE LAKE ELMO CITY COUNCIL ON THE TWENTY-FIRST DAY OF APRIL, 2020. CITY OF LAKE ELMO By: __________________________ (Seal) Mike Pearson ATTEST: Mayor ________________________________ Julie Johnson City Clerk CITY OF LAKE ELMO NOTICE OF HEARING ON IMPROVEMENT HAMLET ON SUNFISH LAKE SANITARY SEWER EXTENSION Notice is hereby given that the City Council of Lake Elmo will conduct a public hearing on Tuesday, May 19, 2020, at or approximately after 7:00 P.M. to consider the making of the following improvements, pursuant to Minnesota Statutes, Sections 429.011 to 429.111; The improvements to connect the Hamlet on Sunfish Lake subdivision to city sanitary sewer services, including the extension of city sanitary sewer to neighborhood and connection to the privately owned sanitary sewer, improvements to decommission the privately owned homeowner’s association (HOA) wastewater treatment system; and repair and replacement improvements to the HOA owned sanitary sewer conveyance system with turnover of operation to the city. The hearing will be conducted by electronic means pursuant to Minnesota Statutes Section 13D.021 because of the COVID-19 pandemic. The meeting can be viewed online by going to the City’s website (http://www.lakeelmo.org/). Instructions for participating in the meeting via computer will be posted on the City’s website prior to the meeting. During the meeting the city will also be accepting call‐ins at 213.929.4212, access code 569‐187‐751. Comments can also be provided prior to the meeting which will be presented to the council. Written comments prior to the meeting must be sent to Julie Johnson, City Clerk (jjohnson@lakeelmo.org) or voicemails left at (651.747.3914) prior to the meeting. The area proposed to be assessed for the sanitary sewer extension and connection improvements include each of the 41 properties located in the Hamlet on Sunfish subdivision that will be receiving access to connect to city sewer. The estimated total cost for the project is $1,319,500. A reasonable estimate of the impact of the assessments will be available at the hearing. Such persons as desiring to be heard with reference to the proposed improvements will be heard at this meeting. . DATED: April 21, 2020 BY ORDER OF THE LAKE ELMO CITY COUNCIL Mike Pearson, Mayor (Published in the Oakdale-Lake Elmo Review on April 24, 2020 and May 1, 2020) LOCATION MAP FIGURE NO. 1 HAMLET ON SUNFISH NEIGHBORHOOD CITY OF LAKE ELMO HAMLET ON SUNFISH LAKE LEGEND PROJECT NO. 2018.128 HAMLET ON SUNFISH LAKE SANITARY SEWER EXTENSION PROJECT STREETS KINDRED WAY, FROM KIMBRO AVE N TO KINDRED COURT; KINDRED COURT, FROM KINDRED WAY TO THE SOUTH CUL-DE-SAC PROJECT SCHEDULE  CITY OF LAKE ELMO       HAMLET ON SUNFISH LAKE SANITARY SEWER IMPROVEMENTS  PROJECT NO. 2018.128  FOCUS ENGINEERING, inc.  Cara Geheren, P.E.   651.300.4261  Jack Griffin, P.E.                651.300.4264  Ryan Stempski, P.E.  651.300.4267  Chad Isakson, P.E.  651.300.4283                OCTOBER 16, 2018  Council  accepts  Petition;  authorizes  preparation  of  Feasibility  Report  and  Preliminary Design.      APRIL 21, 2020  Presentation of Feasibility Report. Council accepts Report and calls  Hearing on  Improvement.       MAY 19, 2020  Public  Improvement  Hearing.  Council  Orders  the  Improvement  (4/5th  Vote);  approves  the  Plans  and  Specifications;  and  orders  the  advertisement for bids.  Declare Costs to be Assessed and Calls for Hearing on Assessment.      JUNE 11, 2020   Project Bid Date: Receive contractor bids.      JUNE 16, 2020  Final  Assessment  Hearing.  Council  adopts  the  Final  Assessment  Roll.  Council  accepts Bids and awards Contract.      JULY 14, 2020  Conduct Pre‐Construction Meeting and issue Notice to Proceed.      OCTOBER 9, 2020  Substantial completion date for Construction.       NOVEMBER 20, 2020  Final completion date for Construction.         **2021 Construction Season: HOA sanitary sewer conveyance system repair and replacement to be completed with  the Hamlet on Sunfish Lake Street and Utility Improvements.