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ITEM 7.2 Emergency water Service agreement w/ DaytonP OtCI�egoF MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Administration Lori Johnson, City Administrator October 10, 2016 PRESENTER(s): REVIEWED BY: ITEM #: Lori Johnson, City Administrator Andy MacArthur, City Attorney 7.2 AGENDA ITEM DETAILS RECOMMENDATION: Recommend adoption of the revised 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 (Agreement) as requested by the City of Dayton. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: Earlier this year, the City of Dayton requested that Otsego allow Dayton to connect to Otsego's water system for emergency water use. After discussion and consideration, on June 13, 2016, the Otsego City Council approved the original form of the Agreement stated above to study and evaluate the possibility of providing emergency only water use to Dayton. Upon approval and execution by Otsego, the Agreement was sent to the City of Dayton for approval. Prior to adoption, the Dayton City Attorney requested additional changes to the Agreement. The attached version, approved and executed by Dayton, includes the changes agreed upon by City Attorneys and City staff from Otsego and Dayton. In summary, the changes are as follows: • Paragraph 2: The Agreement now references an August 12, 2016, letter that Dayton requested from the City Engineering regarding the parameters of the study and the estimated cost. • Paragraph 3: The language stating Dayton will not contest the billings has been removed. • Paragraph 5: Language was added to clearly state that this agreement relates only to the analysis of the feasibility of providing water and that a separate agreement regarding construction and provision of water service would be drafted if Otsego agrees to provide water service. • Paragraph 6: A termination clause was added. SUPPORTING DOCUMENTS: X ❑ ATTACHED ❑ NONE • Revised 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 • Original 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 • August 12, 2016, letter from Hakanson Anderson POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Motion to approve the revised 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 that was approved by the Dayton City Council on September 26, 2016. BUDGET INFORMATION FUNDING BUDGETED: ❑ YES Fully reimbursed by the City of Dayton ❑ 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 -Sj-, 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: 1. 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. The specific engineering study to be undertaken is described in the attached August 12, 2016 letter from Hakanson Anderson to Lori Johnson, OTSEGO City Administrator. OTSEGO shall provide an itemized billing statement to DAYTON monthly for the costs as set forth above. DAYTON agrees to pay within thirty (30) days of receipt of the bill for said costs. 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. This Agreement is an agreement that relates only to the analysis of the feasibility of providing emergency water service to the Proposed Service Area. By entering into this Agreement OTSEGO makes no representations that it will provide the requested service, and any provision of service or construction of emergency water service shall be the subject of a separate agreement. 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. 6. This Agreement may be terminated by DAYTON by written notice to OTSEGO. In the event written notice is given OTSEGO shall cease all work under this Agreement and shall provide to DAYTON a final invoice for costs incurred through the date of termination. Dated: CITY OF OTSEGO Jessica Stockamp, Mayor Tami Loff, City Clerk Dated: I e / '-\ CITY OF DAYTON Tim McN ' ; or Amy Stanius, Deputy City Clerk 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: 1. 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 as set 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. 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: lD —12r ito CITY OF OTSEGO Dated: CITY OF DAYTON aMt(A+V_tVW4y U I Jessica Stockamp, Mayor Tim McNeil, Mayor Tami Loff, City Clerk City Clerk Main Office: Hakanson 3601 Thurston Avenue, Anoka, MN 55303 35 Anderson Phone:763/427w.ha Fax:763/427-0520 www.haa-inc.com I A August 12, 2016 Ms. Lori Johnson, City Administrator City of Otsego 13400 90, St Otsego MN 55303 RE: Municipal Emergency Water Connection between the City of Otsego and the City of Dayton Dear Ms. Johnson: We are pleased to present the following scope of services and estimated of cost for the above referenced project. PROPOSED PROJECT DEFINITION The City of Dayton has approached the City of Otsego requesting a water connection for emergency purposes only. Currently, the City of Dayton lacks the ability to provide standard fire protection to an urban portion of their city known as "the old village". The City of Otsego want assurances that they can support the City of Dayton's emergency needs without compromising their ability to provide all municipal water services to the citizens of Otsego. Therefore, the City of Otsego is requiring a study be completed to analyze a "worst case scenario" at the City of Dayton's cost. SCOPE OF SERVICES 1. Hakanson Anderson, Inc. (HAI) will prepare an analysis of Otsego's East Water Systems capabilities to handle fire demand of the City of Dayton under the following parameters: a) Fire demand constitutes 3 hours of continuous flow at 2500 gallons per minute b) Evaluated with pumping capacity compromised with Otsego's best suppling well out of service c) Evaluated during a peak day demand d) Requiring 20% reserve in ,water tower volume for continuation of domestic pressure needs 2. Hakanson Anderson, Inc. (HAI) will amend the existing City of Otsego's Water Cad model to include the connection to the City of Dayton, to determine the appropriate water main size for the connection and estimate the potential gallons per minute and pressure capabilities the connection can provide. Information required to be provided by the City of Dayton or Dayton's Consultants are: a) Location of hydrant to be analyzed Ms. Lori Johnson August 12, 2016 Page 2 b) Size, length, and type of water mains between the connection and the hydrant to be analyzed. c) Elevation of the hydrant to be analyzed 3 Hakanson Anderson, Inc. (HAI) will estimate the cost of the construction of the connection to the City of Dayton. 4 Hakanson Anderson, Inc. (HAI) will determine the easement needs for the connection to the City of Dayton (location and amount only), no estimated costs for acquisition of easement will be determined and no easement descriptions or exhibits will be provided beyond a general map of the needed location of size of the easements. 5 Hakanson Anderson, Inc. (HAI) will research any potential issues or regulations regarding the cross jurisdictional delivery of emergency water services with the MN Dept. of Health or any other agencies that may apply. COMPENSATION We propose an estimated cost for all services described above be $7,500. 1. Attendance to any meetings is not included. Any time associated with meeting attendance will be billed as an additional cost at our hourly rates. We thank you for the opportunity to provide this proposal. If you have any questions, feel free to call us at 763-427-5860. Sincerely, Hakanson Anderson Ronald J. Wer, P Otsego Ci nginee IIIHakanson Anderson