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