#06 - Cardinal Ridge Watermain Alternatives

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STAFF REPORT DATE: April 18, 2023 REGULAR AGENDA ITEM: Cardinal Ridge Watermain Extension Alternatives SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Sarah Sonsalla, City Attorney Marty Powers, Public Works Director Mark Scholle, Project Engineer ISSUE BEFORE COUNCIL: City staff is seeking council direction regarding the watermain extension design alternatives for the Cardinal Ridge neighborhood should the HOA choose not to provide a drainage and utility easement over HOA Outlot C for the installation of 3 watermain services. BACKGROUND: The City of Lake Elmo received grant funding from the Minnesota Pollution Control Agency (MPCA) under the 2018 3M Settlement Agreement as an expedited project to extend municipal water and connect each of the 62 properties, including 17 properties located in the Cardinal Ridge subdivision. The grant is in the amended amount of $5,645,000 after approving a change order to install the watermain along Ivy Avenue in the Cardinal Ridge subdivision through open cut trench installation. T.A. Schifsky & Sons, Inc. was awarded a construction contract on April 6, 2022, to complete the Parkview- Cardinal Street and Utility Improvements. The amended construction contract completion dates are Substantial Completion date of July 31, 2023, and Final Completion date of August 15, 2023. PROPOSAL DETAILS/ANALYSIS: The original project design includes the extension of 3 private water services across HOA owned Outlot C to serve the properties located at 1545, 1571, and 1589 Ivy Avenue (see attached Outlot C Exhibit). The installation of the services requires the acquisition of a drainage and utility easement over Outlot C. Following the start of construction, in August 2022, the city submitted a request to the HOA to grant the Outlot C easement. In September, 2022 the HOA formally declined to grant the easement citing various concerns. After working through the open cut change order issues with the contractor and obtaining additional grant funding to cover the added project costs, the design team explored alternatives for constructing the improvements and addressing the 3 private water services across Outlot C. Two (2) implementation options were developed as outlined below (see OPTIONS below). A neighborhood meeting was conducted on March 8, 2023 to review the options with the 17 HOA properties and to answer questions. Following the neighborhood meeting the Cardinal Ridge Homeowners’ Association submitted the attached letter dated March 14, 2023, once again declining to grant the requested easement. The City Administrator and City Engineer subsequently met with HOA representatives on April 5, 2023 to continue discussions and answer questions. At the meeting, the city advised the HOA representatives that staff would be requesting council direction at the April 18 council meeting. At the HOA request the City submitted the attached letter dated April 6, 2023 to address the HOA concerns regarding the Open Space Easement.