HomeMy WebLinkAbout#17 - Cooperative Agreement with Oakdale for Lift Station STAFF REPORT
DATE: August 17, 2021
CONSENT
AGENDA ITEM: Approve Cooperative Agreement between City of Oakdale and City of
Lake Elmo for the Construction Costs of Sanitary Sewer Lift Station
Improvements
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Kristina Handt, City Administrator Marty Powers, Public Works Director Chad Isakson, Assistance City Engineer
ISSUE BEFORE COUNCIL: Should the City Council approve the Cooperative Agreement between City of Oakdale and City of Lake Elmo for Construction Costs of Sanitary Sewer Lift Station Improvements? BACKGROUND: The City of Lake Elmo has been working with Oakdale to establish a sanitary sewer connection to Oakdale to serve the 180 acres located along Ideal Avenue and County State Aid Highway 14 (CSAH 14). Amongst these efforts the City has approved a Comprehensive Plan Amendment to allow for sewered development, is in the process of negotiating and establishing an ongoing sanitary sewer use
agreement with the City of Oakdale, and has entered into a purchase agreement with NorthPoint Development, LLC to develop the approximately 75 acres located at Ideal Avenue, South of CSAH 14. PROPOSAL DETAILS/ANALYSIS: In order to secure a sanitary sewer connection with the City of Oakdale by the fall of 2022, to support the proposed NorthPoint development schedule, the Oakdale lift station located at the intersection of Ideal Avenue and Stillwater Blvd/Helmo Avenue will need to be
reconstructed to increase capacity and relocated further outside of the road right-of-way. Staff has prepared a Cooperative Agreement with Oakdale for the reconstruction of the sanitary sewer lift station (Lift Station 6) so that the reconstruction includes additional capacity to support the sewered development for the 180 acres in Lake Elmo. Key elements of the agreements are as follows:
• Oakdale will be responsible for the construction of the Project and the preparation of all plans and
specifications for the Project.
• The Improvements include the relocation and reconstruction of Lift Station 6, including related
pumps, wet wells, force mains, and site work. The improvements do not include the extension of gravity sewer from the lift station to the NorthPoint development property. This sanitary sewer extension work will be completed under separate contracts.
• Oakdale shall award a construction contract to the lowest responsible bidder, upon concurrence by the City of Lake Elmo.
• Lake Elmo will be responsible for 30% of the total estimated project costs, or $267,900 based on the preliminary project cost estimates.
• If Lake Elmo does not enter into a Sanitary Sewer Use Agreement, Lake Elmo shall reimburse Oakdale for 100% of the costs associated with redesigning the Project to serve only Oakdale.
• Any modifications or additions to the construction contract shall be made part of the construction contract through a written amendment, but only after concurrence by Lake Elmo’s designated project manager. Costs for such changes shall be appropriated using the 30% cost share by Lake
Elmo and 70% costs share for Oakdale
• Payment terms by Lake Elmo o Oakdale are detailed in the Agreement. FISCAL IMPACT: The total estimated Project cost is $893,000 as set forth in Exhibit B of the Agreement. Lake Elmo’s share of the Project construction costs shall be 30%, or $267,900. The total estimated Project cost and share attributable to Lake Elmo and payable to Oakdale are merely estimated and a final reconciliation of construction costs as set forth in Agreement shall be completed at the end of the Project.
In lieu of the above costs, if Lake Elmo does not enter into a Sanitary Sewer Use Agreement, Lake Elmo shall reimburse Oakdale for 100% of the costs associated with redesigning the Project to serve only Oakdale.
RECOMMENDATION: Staff is recommending that the City Council approve, as part of the consent agenda, a Resolution approving the Cooperative Agreement between the City of Oakdale and City of Lake
Elmo for Construction Costs of Sanitary Sewer Lift Station Improvements. If removed from the consent agenda, the recommended motion for the action is as follows:
“Move to approve Resolution No. 2021-089 Approving the Cooperative Agreement between City of
Oakdale and City of Lake Elmo for Construction Costs of Sanitary Sewer Lift Station Improvements.” ATTACHMENTS: 1. Resolution Approving Cooperative Agreement between City of Oakdale and City of Lake Elmo for Construction Costs of Sanitary Sewer Lift Station Improvements. 2. Cooperative Agreement between City of Oakdale and City of Lake Elmo.
CITY OF LAKE ELMO
WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2021-089
A RESOLUTION APPROVING COOPERATIVE AGREEMENT BETWEEN THE CITY OF OAKDALE AND THE CITY OF LAKE ELMO FOR THE CONSTRUCTION COSTS OF SANITARY SEWER LIFT STATION IMPROVEMENTS WHEREAS, Lake Elmo has requested, by mutual agreement with Oakdale, to add future sanitary sewer flows from 180-acres of undeveloped land (“Property”) in Lake Elmo near Ideal Avenue and County Road 14, which is proposed to be developed with industrial, commercial, and residential uses; and
WHEREAS, the sewage from the Property would flow to Oakdale’s existing Lift Station 6 located at Ideal Avenue and Stillwater Boulevard in Oakdale’s Sewer District 8, which then flows by gravity to Oakdale’s Sewer Districts 9, 11, 7, 12, 15, and 17; and
WHEREAS, Oakdale intends to make improvements to its sanitary sewer system on Stillwater Boulevard, including relocation of Lift Station 6 and improvements to related pumps, wet wells, force mains, and other sanitary sewer infrastructure (“Project”); and
WHEREAS, Oakdale and Lake Elmo desire to share in the costs of the Project; and
WHEREAS, this Agreement is the result of a cooperative effort between Oakdale and Lake Elmo to
determine the appropriate method to facilitate Oakdale’s construction of the Project and Oakdale and Lake Elmo’s share in the costs of the Project; and
WHEREAS, Lake Elmo and Oakdale intend to enter into a future cooperative agreement (“Sanitary
Sewer Service Agreement”) addressing ongoing obligations, including establishing certain responsibilities and charges for Lake Elmo to pay to Oakdale for such future sanitary sewer flows; and
WHEREAS, if Lake Elmo does not enter into the Sanitary Sewer Agreement, Lake Elmo is willing to reimburse Oakdale for 100% of the costs associated with redesigning the Project to serve only Oakdale.
NOW, THEREFORE, BE IT RESOLVED, 1. That Cooperative Agreement between the City of Oakdale and the City of Lake Elmo for the construction costs of sanitary sewer lift station improvements, is hereby approved and the Mayor and City Administrator are hereby authorized to execute the agreement on behalf of the City of Lake Elmo. ADOPTED BY THE LAKE ELMO CITY COUNCIL ON THE SEVENTEENTH DAY OF AUGUST, 2021. CITY OF LAKE ELMO
By: __________________________ (Seal) Charles Cadenhead ATTEST: Mayor
________________________________ Julie Johnson, City Clerk
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COOPERATIVE AGREEMENT BETWEEN
THE CITY OF OAKDALE AND THE CITY OF LAKE ELMO FOR THE
CONSTRUCTION COSTS OF SANITARY SEWER LIFT STATION IMPROVEMENTS
This COOPERATIVE AGREEMENT (“the Agreement”), is made and entered into this
___ day of ________________, 2021 (the “Effective Date”), by and between the City of Oakdale
(“Oakdale”), a Minnesota municipal corporation, and the City of Lake Elmo (“Lake Elmo”), a
Minnesota municipal corporation.
RECITALS
WHEREAS, Lake Elmo has requested, by mutual agreement with Oakdale, to add future
sanitary sewer flows from 180-acres of undeveloped land (“Property”) in Lake Elmo near Ideal
Avenue and County Road 14, which is proposed to be developed with industrial, commercial, and
residential uses; and
WHEREAS, the sewage from the Property would flow to Oakdale’s existing Lift Station
6 located at Ideal Avenue and Stillwater Boulevard in Oakdale’s Sewer District 8, which then
flows by gravity to Oakdale’s Sewer Districts 9, 11, 7, 12, 15, and 17; and
WHEREAS, Oakdale intends to make improvements to its sanitary sewer system on
Stillwater Boulevard, including relocation of Lift Station 6 and improvements to related pumps,
wet wells, force mains, and other sanitary sewer infrastructure (“Project”); and
WHEREAS, Oakdale and Lake Elmo desire to share in the costs of the Project; and
WHEREAS, this Agreement is the result of a cooperative effort between Oakdale and Lake
Elmo to determine the appropriate method to facilitate Oakdale’s construction of the Project and
Oakdale and Lake Elmo’s share in the costs of the Project; and
WHEREAS, Lake Elmo and Oakdale intend to enter into a future cooperative agreement
(“Sanitary Sewer Service Agreement”) addressing ongoing obligations, including establishing
certain responsibilities and charges for Lake Elmo to pay to Oakdale for such future sanitary sewer
flows; and
WHEREAS, if Lake Elmo does not enter into the Sanitary Sewer Agreement, Lake Elmo
is willing to reimburse Oakdale for 100% of the costs associated with redesigning the Project to
serve only Oakdale.
NOW THEREFORE, Oakdale and Lake Elmo agree as follows:
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AGREEMENT
1. PURPOSE
The purpose of this Agreement is set forth in the above recitals, which are incorporated by
reference as if fully set forth herein, and shall consist of this Agreement, Exhibit A (the “Lift
Station 6 Site Plan”) and Exhibit B (“Lift Station 6 Improvements and Cost Estimates”).
2. PLANS AND SPECIFICATION PREPARATION
Oakdale shall be responsible for the construction of the Project and the preparation of all
plans and specifications for the Project, including but not limited to, compliance with all applicable
laws, standards, and policies and obtaining all approvals required in formulating the bid
specifications for all components of this Project.
3. ADVERTISEMENT AND AWARD OF CONTRACT
After plans and specifications have been approved and all permits and approvals have been
obtained by Oakdale, Oakdale shall advertise for construction bids and, upon concurrence by the
City of Lake Elmo, shall award the contract to the lowest responsible bidder.
4. CONSTRUCTION ADMINISTRATION, INSPECTION, OBSERVATION, AND
TESTING
Oakdale shall be responsible for the construction administration, inspection, and for the
observation and testing for all construction items.
5. COST PARTICIPATION AND ESTIMATED COSTS
The total estimated Project cost is $893,000 as set forth in Exhibit B of this Agreement.
Lake Elmo’s share of the Project construction costs shall be 30% and Oakdale’s share shall be
70%. The total estimated Project cost and share attributable to Lake Elmo and payable to Oakdale
are merely estimated and a final reconciliation of construction costs as set forth in Section 6 below
shall be completed at the end of the Project.
In lieu of the above costs, if Lake Elmo does not enter into the Sanitary Sewer Agreement,
Lake Elmo shall reimburse Oakdale for 100% of the costs associated with redesigning the Project
to serve only Oakdale.
6. PAYMENT
A. Construction
I. After Oakdale has awarded the construction contract, Oakdale shall update
Exhibit B to conform the Exhibit to the amounts in the awarded bid and shall
invoice Lake Elmo ten percent (10%) of Lake Elmo’s estimated construction
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costs based on the updated Exhibit B.
II. During construction, Oakdale shall submit to Lake Elmo partial estimates of
work performed under the construction contract and Lake Elmo shall pay to
Oakdale its share of the partial estimates.
III. Upon substantial completion of the work, Oakdale shall submit to Lake Elmo a
final invoice and final reconciliation of costs. The reconciliation will add or
subtract adjustments for liquidated damages pursuant to Section 8 of this
Agreement and previous Project cost payments made by Lake Elmo to Oakdale.
Lake Elmo shall pay its remaining share of the final invoice and final
reconciliation of costs.
B. In the event that Lake Elmo pays more in-advance than the actual cost of Lake Elmo’s
portion of the Project, Oakdale shall refund without interest the amount to Lake Elmo.
C. Lake Elmo shall pay one hundred percent (100%) of an invoice amount within thirty
(30) days of receipt.
7. CONSTRUCTION CONTRACT CHANGES
Any modifications or additions to the final approved plans or specifications shall be made
part of the construction contract through a written amendment to the construction contract, but
only after concurrence by Lake Elmo’s designated project manager and the cost for such changes
shall be appropriated as set forth in Section 5 of this Agreement. Lake Elmo’s concurrence shall
be received upon request and may not be unreasonably conditioned, withheld, or delayed.
8. LIQUIDATED DAMAGES
Any liquidated damages assessed to the contractor in connection with the work performed
on the Project shall be shared by Oakdale and Lake Elmo in the following proportion: The
respective total share of construction work to the total construction cost without any deduction for
liquidated damages.
9. CIVIL RIGHTS AND NON-DISCRIMINATION
The provisions of Minnesota Statutes, Section 181.59 and of any applicable ordinance
relating to civil rights and discrimination shall be considered part of this Agreement as if fully set
further herein and shall be part of any Agreement entered into by the parties with any contractor
subcontractor, or material suppliers.
10. WORKERS COMPENSATION
It is understood and agreed that any and all employees of Lake Elmo and all other persons
employed by Lake Elmo in the performance of this Agreement shall not be considered employees
of Oakdale. Any and all claims that may or might arise under the Worker’s Compensation Act of
the State of Minnesota on behalf of said employees while so engaged and any and all claims made
by any third parties as a consequence of any act or omission on the part of said Lake Elmo
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employees while so engaged on any of the construction or construction engineering work or
services to be rendered herein shall in no way be the obligation or responsibility of Oakdale.
11. INDEMNIFICATION
A. Oakdale agrees that it will defend, indemnify, and hold harmless Lake Elmo against
any and all liability, loss, damages, costs, and expenses which Lake Elmo may hereafter
sustain, incur, or be required to pay by reason of any negligent act by the Oakdale, its
agents, officials, officers, or employees during the performance of this Agreement.
B. Lake Elmo agrees that it will defend, indemnify, and hold harmless the Oakdale against
any and all liability, loss, damages, costs, and expenses which Oakdale may hereafter
sustain, incur, or be required to pay by reason of any negligent act by Lake Elmo, its
agents, officials, officers, or employees during the performance of this agreement.
C. To the fullest extent permitted by law, actions by the parties to this Agreement are
intended to be and shall be construed as a “cooperative activity.” It is the intent of the
parties that they shall be deemed a “single governmental unit” for the purposes of
liability, as set forth in Minnesota Statutes, Section 471.59, subdivision 1a (b). The
parties to this Agreement are not liable for the acts or omissions of another party to this
Agreement except to the extent they have agreed in writing to be responsible for the
acts or omissions of the other parties as provided for in Minnesota Statutes, Section
471.59, subdivision 1a.
D. Each party’s liability shall be governed by the provisions of Minnesota Statutes,
Chapter 466 and other applicable law. The parties agree that liability under this
Agreement is controlled by Minnesota Statutes, Section 471.59, subdivision 1a and that
the total liability for the parties shall not exceed the limits on governmental liability for
a single unit of government as specified in Minnesota Statutes, Section 466.04,
subdivision 1(a).
12. DATA PRACTICES
All data collected, created, received, maintained, disseminated, or used for any purposes in
the course of this Agreement is governed by the Minnesota Government Data Practices Act,
Minnesota Statutes Section 13.01, et seq. or any other applicable state statutes and state rules
adopted to implement the Act, as well as state statutes and federal regulations on data privacy.
13. TERM AND TERMINATION
This Agreement is effective as of the Effective Date indicated above and shall terminate
upon completion of reimbursement of costs by Lake Elmo or upon mutual agreement of the parties.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as
of the Effective Date.
OAKDALE CITY OF LAKE ELMO
Paul Reinke, Mayor Charles Cadenhead, Mayor
Date Date
Christina Volkers, City Administrator Kristina Handt, City Administrator
Date Date
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B-1
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