Loading...
ITEM 7.2 Agreement with City of Dayton0tsg e o MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Administration Lori Johnson, City Administrator June 13, 2016 PRESENTER(s): REVIEWED BY: ITEM #: Lori Johnson, City Administrator Andy MacArthur, City Attorney 7.2 AGENDA ITEM DETAILS RECOMMENDATION: Recommend adoption of the Agreement Between the City of Otsego and the City of Dayton Regarding Costs Related to the Study and Evaluation of Construction and Delivery of Emergency Water Service ARE YOU SEEKING APPROVAL OF A CONTRACT? Yes IS A PUBLIC HEARING REQUIRED? No BACKGROUND/JUSTIFICATION: At the May 23 City Council meeting, the Council directed the City Attorney to draft an agreement for approval by Otsego and Dayton before beginning a study, at Dayton's request, to evaluate the feasibility of providing emergency water service to Dayton. The attached Agreement was drafted by the City Attorney. It requires payment from Dayton for staff, consultant, and all other study related costs. It states that Otsego is not obligated to provide water service to Dayton and that the Otsego City Council, in its sole discretion, will determine if emergency water service will be provided and under what terms and conditions. If the Council agrees with and approves the attached Agreement, it will be forwarded to the Dayton City Council for their consideration. If the Dayton City Council adopts the agreement, the study may begin. SUPPORTING DOCUMENTS: X ATTACHED NONE Agreement Between the City of Otsego and the City of Dayton Regarding Costs Related to the Study and Evaluation of Construction and Delivery of Emergency Water Service POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Motion to approve the Agreement Between the City of Otsego and the City of Dayton Regarding Costs Related to the Study and Evaluation of Construction and Delivery of Emergency Water Service. BUDGET INFORMATION FUNDING: BUDGETED: ❑ YES All costs reimbursed by City of Dayton X ❑ NO CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA AGREEMENT BETWEEN THE CITY OF OTSEGO AND CITY OF DAYTON REGARDING COSTS RELATED TO THE STUDY AND EVALUATION OF CONSTRUCTION AND DELIVERY OF EMERGENCY WATER SERVICE THIS AGREEMENT made this _ day of July, 2016 by and between the City of Otsego (OTSEGO), a Minnesota Municipal Corporation and the City of Dayton (DAYTON), a Minnesota Municipal Corporation. WHEREAS, OTSEGO is located within Wright County and has constructed City water service extending near to its border with DAYTON; and WHEREAS, DAYTON is located primarily within Hennepin County and a small portion within Wright County and has limited public water service; and WHEREAS, DAYTON has limited available emergency water service within the proposed Service Area as set forth on Exhibit A, attached; and WHEREAS, DAYTON has requested that OTSEGO consider the delivery of emergency water service to the Service Area; and WHEREAS, OTSEGO has indicated that they will consider the request after receiving preliminary information from City staff and consultants regarding the feasibility, advisability and cost of providing DAYTON with emergency water service. NOW, THEREFORE IT IS AGREED BETWEEN THE PARTIES AS FOLLOWS: OTSEGO will undertake the necessary preliminary studies, research and collection of data to provide the OTSEGO City Council with an adequate basis of making a decision as to whether or not it would be advisable to proceed with providing the requested emergency services water connection. All costs incurred by OTSEGO in the drafting of this Agreement, and in undertaking the studies and research mentioned above will be paid by DAYTON. Costs include, but are not limited to, City staff time, consultant's fees, engineering fees, legal fees cost of printing and cost of any necessary meetings to review the material. It is contemplated that OTSEGO will need to evaluate the effect of the requested services on its water system, evaluate where pipes can be extended, determine the need for easements and the related costs, evaluate the cost of ongoing service, evaluate additional maintenance and repair required by the extension of lines, evaluate charges for the service to DAYTON, evaluate what Agreement and in what form needs to be in place between the Parties, and evaluate the criteria for providing the service as well as the mechanism for service provision. 3. OTSEGO shall provide an itemized billing statement to DAYTON monthly for the costs asset forth above. DAYTON agrees to pay the bill in full without contest within thirty (30) days of receipt of the bill. 4. OTSEGO may enforce this Agreement in the Wright County District Court, and in the event that the Agreement requires enforcement due to non-payment or any other reason DAYTON agrees to pay any and all costs, including attorney's fees incurred by OTSEGO in enforcement of the Agreement. 5. By entering into this Agreement OTSEGO has made no representations that it will provide the requested service. The decision as to whether or not to provide the service and under what conditions is left solely to the discretion of the OTSEGO City Council. DAYTON understands that prior to making any decision, OTSEGO must fully evaluate the ramifications of the request and determine whether or not it is in the best interests of the citizens of Otsego. Dated: CITY OF OTSEGO Dated: CITY OF DAYTON Jessica Stockamp, Mayor Tim McNeil, Mayor Tami Loff, City Clerk City Clerk