ITEM 7.4 Request from City of DaytonOtSeTO
y
CF o
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Lori Johnson, City Administrator
May 23, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
Lori Johnson, City Administrator
7.4
AGENDA ITEM DETAILS
RECOMMENDATION:
Recommend discussion of a request from the City of Dayton to connect to the Otsego water system.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BAC KG RO U N DM U STI F I CATI O N:
As you are aware, the Dayton City Administrator and staff met with Otsego staff on March 22, 2106, at
Dayton's request to discuss the possibility of Dayton connecting to Otsego's water system to provide an
emergency use only water supply to the Dayton's historic downtown area. After the staff discussion,
the Dayton City Council discussed this matter, and on May 13, 2016, 1 received a letter from Bob Derus,
Interim City Administrator, making a formal request for consideration of Dayton's request for
emergency connection to Otsego's water system.
Dayton's request is for a connection to provide emergency only use of the water system to
approximately 120 homes and a few small businesses. No daily use of water by residents or businesses
would be allowed; this connection request is for emergency use only. Dayton would pay all costs for this
project including all preliminary analysis by staff and consultants. If a connection were ultimately made,
Dayton would be responsible for paying for all infrastructure costs to connect to the system, a
connection charge, and consumption charges upon use.
Of course, Otsego's first obligation is to ensure an adequate water supply for current and future users in
Otsego. An engineering analysis would determine how the emergency connection to Dayton would
affect Otsego. If the analysis determines there is a negative impact on current or future users, it would
not be in the City's best interest to allow the connection. However, if the connection can be made with
no negative affect on current and future customers and future development opportunities, helping a
neighboring community mitigate a potential public safety issue is logical. Obviously, an emergency
water connection is less of an impact on the system because it would rarely be used, but it still requires
thorough analysis to protect the long-term future of Otsego's water system.
If the Council agrees to explore a potential connection and conduct the preliminary analysis to
determine the financial and engineering feasibility of the project, direction to do so is requested. This
action should include direction to have the City Attorney draft an agreement specifying Dayton's
obligation for payment of all related staff, consultant, and direct costs, defining the scope of the
analysis, and stating that Otsego has no obligation to provide a connection upon completion of such
analysis.
SUPPORTING DOCUMENTS: X ❑ ATTACHED ❑ NONE
• Letter from the City of Dayton Regarding Request for Emergency Connection to Otsego Water
System
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
No motion is required; however, direction on the Council's willingness to proceed with Dayton's request
to analyze an emergency water connection at Dayton's expense is requested. Further, direction to draft
an agreement for approval by both parties is requested.
BUDGET INFORMATION
FUNDING BUDGETED: ❑ YES
The City of Dayton will pay all costs associated o NO
with this project.
CITY O F 12260 S. Diamond Lake Rd.
DN
Dayton, Minnesota 55327
TO (763) 427-4589
_ Fax (763) 427-3708
Tivo Rivers — One Community — -- — -�
May S, 2016 MN( � ; l ?,1116
Ms. Lori Johnson, City Administrator
City of Otsego
13400 90th Street NE
Otsego, MN 55330
Re: Request for Emergency Connection to Otsego Water System
Dear Ms, -Johnson,
I have written this to make a formal request to the City of Otsego to consider allowing the City of Dayton a
connection to the Otsego water system for emergency purposes only. This connection would be in the area of
the historic downtown Dayton. It has recently come to our attention that the water system in this area is
somewhat deficient, so we are pursuing this as a way to help protect residents and structures.
The current Dayton water system in this area serves a very limited area of approximately 420 homes, and a
few small business. Also, nine Otsego homes are served by this Dayton water system. This system consists of
one well (with no back-up) and there is only one 2,000 gallon at -grade storage tank, which is very limited for
fire suppression. Moreover, if the well were to fail, it might take a number of weeks to work through the
requirements of the different state agencies, before a new well could be up and running. Needless to say, this
is not ideal.
Because Dayton's new development is coming fi•om the south and east, it will likely be 15 or more years
before an economical connection can be made to another area of Dayton currently served by a water system.
At that point, this emergency connection could then serve a similar benefit for emergency back-up to the City
of Otsego.
We are willing to reimburse Otsego for costs incurred in analyzing this request. We are also willing to work
with Lennar, with their development near this area, in a way which could make this connection more
economical for all parties.
Thank you in advance for considering this request. Please call me if there is any additional information you
require.
Sincerely,
L� l
Robert T. Derus
Interim City Administrator
Copy: Dayton Mayor and City Council; City Engineer