HomeMy WebLinkAbout10.C.1. Ordering Preliminary Engineering Report for the East Shakopee Industrial Area Sanitary Sewer Extension Project-Res. No. 7242 Io.c. 1,
CITY OF SHAKOPEE
Memorandum
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
SUBJECT: Ordering Preliminary Engineering Report for the East Shakopee Industrial Area
Sanitary Sewer Extension Project
DATE: October 16, 2012
ACTION SOUGHT:
Council's approval of Resolution No. 7242 which orders a Preliminary Engineering Report for
the East Shakopee Industrial Area Sanitary Sewer Extension project.
INTRODUCTION:
Attached is a map showing properties interested in a Preliminary Engineering Report for
extending sewer to the East Shakopee Industrial Area.
BACKGROUND:
In 2003, a feasibility report for the East Shakopee Industrial Sewer Extension was proposed but
did not move forward to a project due to cost and number of properties not interested in the
proj ect.
Since that time, the City's EDAC has identified this area for economic development if sanitary
sewer was extended. Also, the City has adopted a Sewer Availability Charge (SAC) credit policy
for commercial and industrial properties.
Attached to this memo is a letter, SAC credit policy and petition sent to property owners that
could be affected by the project. From this letter, staff received petitions from property owners as
shown on the attached maps that are interested in a study to determine the cost.
From 2003 to now, there is more interest from properties due to the conditions of their Individual
Sewage Treatment Systems (ISTS) and the possibility of SAC credits available.
In this Preliminary Engineering report, staff will be analyzing a gravity and lift station/force
main system to a grinder pump /pressurized pumping system back to the existing sewer on 70
Street. The gravity sewer with City lift station/forcemain will have higher assessments but lower
maintenance cost to the property owners. The grinder pump /pressurized pumping system will
have lower assessments but higher maintenance costs to property owners. Property owners have
asked staff to analyze both alternatives.
ALTERNATIVES:
1. Adopt Resolution No. 7242
2. Deny Resolution No. 7242
3. Authorize staff to obtain the necessary professional services on the preparation of
preliminary engineering report.
4. Table for additional information.
BUDGET IMPACT:
The preparation of the Preliminary Engineering Report would affect the Sanitary Sewer
Enterprise Fund, if a project is not ordered. If a project is ordered the cost would be included as a
project cost and assessed.
RECOMMENDATION:
Staff would recommend Alternative No. 1 and No. 3. Staff would recommend that Council
initiate this project and after the preparation of the Preliminary Engineering report, staff would
send another petition for property owners to support.
RELATIONSHIP TO VISIONING:
This supports Goal E: "Deliver effective and efficient public services by a staff of well- trained,
caring, and professional employees ".
ACTION REQUESTED:
1) Adopt Resolution No. 7242.
2) Authorize the appropriate City officials to obtain the necessary professional services for
the preparation of the preliminary engineering report.
:ruce Lone ,'.E.
Public Works Director
ENGRi 20I2PROJ ECTS/ COUNCILIPRELIMINARYENGI NEERINGREPORTEASTSHAKOPEEINDUSTRIALAREA
RESOLUTION NO. 7242
A Resolution Ordering The Preparation Of A
Preliminary Engineering For
The East Shakopee Industrial Sewer Extension
WHEREAS, it is proposed to improve properties from 70 Street to Stagecoach Road and
from Stagecoach Road to 13 Avenue by construction of sanitary sewer and all appurtenant work
and to assess the benefitted property for all or a portion of the cost of the improvement, pursuant to
Minnesota Statutes, Chapter 429.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SHAKOPEE, MINNESOTA, that the proposed improvement be referred to Bruce Loney,
Public Works Director, for study and that he is instructed to report to the Council with all
convenient speed advising the Council in a preliminary way as to whether the proposed
improvement is feasible and as to whether it should best be made as proposed or in connection with
some other improvement, and the estimated cost of the improvement as recommended.
Adopted in session of the City Council of the City of Shakopee,
Minnesota, held this day of , 2012.
Mayor of the City of Shakopee
ATTEST:
City Clerk
ENGR/ 2012 - PROJECTS /COUNCIL- ROAD - RES-ORDER- REPORT- EASTSHAKOPEEINDUSTRIAIS E W EREXTENS ION
Pl°11111 May 29, 2012
SHAKOPEE
Liberty Properties, LLC
7800 County Road 101 E.
Shakopee, MN 55379
RE: East Shakopee Industrial Sewer Extension and Petition
Parcel #279010060
Parcel #279010070
Dear Property Owner:
Please consider the attached Petition for a Sanitary Sewer Feasibility Report for your execution.
Also attached is the City's newly adopted Sewer Availability Charge (SAC) credit policy.
The City of Shakopee is proposing this sanitary sewer extension project forward again due to the
following reasons:
1. New Sanitary Sewer design utilizing a pressurized system and individual grinder pumps
for lower sewer assessments.
2. Some properties are experiencing failures in their systems and have indicated interest for
project.
3. Economic Development Advisory Committee (EDAC) has identified this area as a top
priority for sewer and potential increased development.
4. Newly SAC credit policy is now available for business's that qualify, thus lowering the
cost of sewer installation to properties.
Previously a meeting was held with property owners on October 25 2011 to discuss the
potential project. This letter is a follow up to this meeting and is being done after the SAC credit
policy was approved.
Please review this letter, the SAC credit policy and the petition for a feasibility study for sanitary
sewer extension. We ask for the petition to be returned to us by June 6 2012 and indicate as to
whether you are interested in a feasibility study or not. If you have any questions in regards to
this letter or the attachments, contact me at 952- 233 -9361.
Sincerely,
/$
Bruce Loney
Public Works Director
COMMUNITY PRIDE SINCE 1857
129 Holmes Street South • Shakopee. Minnesota • 55379 -1331 • 952- 233 -9300 • FAX 932 -233 -3801 • saws ishakopee.mn us
LIBERTY PROPERTIES, LLC ZIEGLER INC SUPERIOR SUPPLY COMPANY
Parcel #279010060 Parcel #270950020 Parcel #271100010
7800 COUNTY RD 101 E 901 94 ST W PO BOX 975
SHAKOPEE, MN 55379 MPLS, MN 55420 MPLS, MN 55440
LOFTSGAARDEN JEFF & COLLEEN DAHLEN REAL ESTATE LLC CFP ENTERPRISES LLC
Parcel #273510030 Parcel #273510010 Parcel #273510020
1304 FOREST PARK LN 901 STAGECOACH RD 8853 LOCH LOMOND CT
BURNSVILLE, MN 55337 SHAKOPEE, MN 55379 BROOKLYN PARK, MN 55443
TASSI PROPERTIES LLC PEARSON ROBERT G LIBERTY PROPERTIES, LLC
Parcel #279120010 Parcel #279110150 Parcel #279010070
7804 HWY 101 E 5206 FROST POINT CIR SE 7800 COUNTY RD 101 E
SHAKOPEE, MN 55379 PRIOR LAKE, MN 55372 SHAKOPEE, MN 55379
CRETEX CONCRETE PRODUCTS NORTH WALSH TIMOTHY M & KATHLEEN A WALSH TIMOTHY M & KATHLEEN A
Parcel #270730040 Parcel #270730030 Parcel #270730020
6550 WEDGWOOD RD N # 140 4215 OVERLOOK DR 4215 OVERLOOK DR
OSSEO, MN 55311 MINNEAPOLIS, MN 55437 MINNEAPOLIS, MN 55437
TIETJEN FAMILY INC PEARSON ROBERT G ZIEGLER INC
Parcel #270730060 Parcel #279020100 Parcel #270950010
7480 HWY 101 E 5206 FROST POINT CIR SE 901 94 ST W
SHAKOPEE, MN 55379 PRIOR LAKE, MN 55372 MPLS, MN 55420
PEARSON ROBERT G WALSH TIMOTHY M & KATHLEEN A CARGO VAN -GO LAND LLC
Parcel #279010080 Parcel #270730010 Parcel #279020092
5206 FROST POINT CIR SE 4215 OVERLOOK DR 7380 HWY 101 E
PRIOR LAKE, MN 55372 MINNEAPOLIS, MN 55437 SHAKOPEE, MN 55379
CARGO VAN -GO LAND LLC CRETEX CONCRETE PRODUCTS NORTH CROPMATE COMPANY & C/0 CONAGRA
Parcel #279020091 Parcel #270730050 Parcel #271050010
7380 HWY 101 E 6550 WEDGWOOD RD N # 140 ONE CONAGRA DR
SHAKOPEE, MN 55379 OSSEO, MN 55311 OMAHA, NE 68102
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SEWER AVAILABILITY CHARGE (SAC) CREDIT POLICY
I. General Purpose and Objective for Creating this Policy.
To help sustain the local economy and to maintain and strengthen the tax base, the City often
considers ways to stimulate economic development. The City is committed to promoting quality
development, redevelopment and reuse of properties.
In certain situations, up front utility costs may prevent business start -ups, renovations or
expansions. In any of these situations, they City may consider assessing, granting or borrowing
the funds necessary for sewer and water availability charges. This will be determined on a case by
case basis for each fee andlor a combination of all of these fees. At any time, the City may
discontinue the option to provide any assistance for these fees.
II. Background.
A. Metropolitan Council Sewer Availability Charge
When there is new construction or a change in use of a property that requires additional sanitary
sewer capacity, a fee is charged by the Metropolitan Council - Environmental Services. The fee is
based on a determination of the number of sewer availability charge (SAC) units. One SAC unit
equals 274 gallons of daily wastewater flow (based on the Metropolitan Council's calculation of
what a single family dwelling produces in one day). The fee for each Metropolitan Council SAC
unit is as charged by the Metropolitan Council. If the property has a change in use, the SAC fee is
reduced by any previous SAC payments.
In September, 2008, the City received 1,494 SAC credits from Rahr Malting coming from the
regional system. As a result, the City has a limited `bank' of Metropolitan Council SAC credits
that can be applied city-wide. A credit is equivalent to the fee for one SAC unit. The total number
of City credits is automatically reduced when new SAC units are required for new construction or
additional SAC units are required for a change in use of a property.
B. City Sewer Availability Charges
In 1994, the City adopted access fees for the sanitary sewer system (SAC). Those fees are used
for construction of other MCES interceptors and long -term maintenance of the City sanitary
sewer system. For any construction project or change in use, the City SAC is the same as the
number of units determined by the Metropolitan Council. However, city fees will be imposed
only for the units resulting from an expansion or a change of use that requires additional charges.
The total number of units for a project may be reduced in instances where the use was established
prior to adoption of the City fees.
III. Potential Situations for City Assistance
The following list provides examples of potential projects that may benefit from City assistance:
CR69 Sewer Extension of sewer to existing businesses
East Shakopee Industrial Reuse or expansion of existing spaces that result in increased
jobs
H /SAC Policy /sewer availability charge /4 -17 -2012
SEWER AVAILABILITY CHARGE (SAC) CREDIT POLICY
Page 2
III. Potential Situations for City Assistance
Industrial Development Development of industrial properties, job creation
Commercial Development Development of underutilized commercial properties, job
creation
In making a decision or considering a request under this assistance policy, the Council may wish to
consider the number of available City-owned Metropolitan Council SAC Credits, the City's future need
for credits, and the benefits to the economic base of the community. Request specific to construction of
single family homes are not eligible under this program.
IV. Basic Requirements
In addition to the requirements of the application /approval process described below, the following basic
tenets shall apply:
Assessment or Loan Agreements:
• Agreements may be developed to bear interest as determined
• Period of agreements shall not exceed five (5) years or as approved by Council
• The owner of record must execute an agreement and waiver wherein the amount of the
assessment or loan (per agreement) shall be recorded and assessable to the property in the event
of default according to the terms of the agreement
Any applicant who has not been in good standing with the City, in regards to licenses, fees or other
specific charges will not be considered for this program.
V. Financing
Upon application, the City may consider an interest bearing loan or assessment that allows financing of
sewer access charges. The loan or assessment must be approved by City Council. In general, payments
shall be placed in a pre - determined fund. Use of funds will be subject to Council approval.
Nothing herein shall imply or suggest that the City is under any obligation to provide incentives to any
applicant.
VI. Criteria for Evaluating Requests
The following may be utilized in evaluating request for use of SAC Credits:
• Does the request provide for a redevelopment project?
• Does the request provide the community with
o Increased employment of job retainage?
o Additional spin -off development?
o Potential for increased property tax capacity?
o Has the project met the requirements of the comprehensive plan, building code, zoning?
o Are there any other identified sources of other public assistance?
H /SAC Policy /sewer availability charge /4 -17 -2012
SEWER AVAILABILITY CHARGE (SAC) CREDIT POLICY
Page 3
VII. Application/Approval Process
The City may charge a fee for requests under this policy, and these fees will be adopted annually during
the fee schedule review.
The City reserves the right to determine and limit the amount of SAC credits that are applied for by any
one applicant. This is to allow for the maximum utilization and benefit of the credits.
The following information must be submitted for application for request of SAC Credits:
• Business Name
• Address
• Legal Description
• Name of Authorized Representative or Contact
• Name of Property Owner (if different from Business Owner)
• Description of Business
• Description of Improvements and Any Anticipated "Change of Use" that the project will result in
• Narrative Explaining the Request
When the complete packet of information is received, staff will review the application and contact the
applicant for any additional information needed to process the application. Upon review, the appropriate
documents and information will be presented to the City Council for their consideration.
H /SAC Policy /sewer availability charge /4 -17 -2012
CITY OF SHAKOPEE
PETITION FOR PUBLIC IMPROVEMENTS
Date
We, the undersigned, owners of the following described real property, abutting on the proposed
improvement and benefitted thereby, hereby petition the City Council of the City of Shakopee, for the
following public improvements:
Sanitary Sewer
on Stagecoach Road , between CR 101 and 13 Avenue , and on
property formerly known as Cretex Avenue, between 70 Street and Stagecoach Road, and request that
the same be made during the year 2012 or 2013
In making this petition the undersigned understands that the City of Shakopee, its agents or
employee cannot guarantee the amount of an assessment until a feasibility study of the improvements has
been prepared and accepted by City Council in accordance with MSA Chapter 429.
Petitioner Legal Description or
Address of Affected Property
I hereby, verify that I circulated the above petition and that the above signatures of the property
owners and petitioners were affixed in my presence.
Circulator
H:\ENG\2011 ENGINEERING PROJECTS \EAST SHAKOPEE INDUSTRIAL AREA \WORD \Sanitary Sewer- Stagecoach Rd
.docx
SEWER AVAILABILITY CHARGE (SAC) CREDIT
APPLICATION FORM
BUSINESS NAME:
BUSINESS ADDRESS:
LEGAL DESCRIPTION:
NAME OF AND CONTACT INFORMATION FOR AUTHORIZED REPRESENTATIVE OR
CONTACT:
Name:
Address:
Phone No.:
E -mail Address:
NAME OF AND CONTACT INFORMATION FOR PROPERTY OWNER:
Name:
Address:
Phone No.:
E -mail Address:
DESCRIPTION OF BUSINESS: (Please include type of business, description of product or services
provided, information regarding estimated monthly or annual water and sanitary sewer required of the
business operation)
Page 1
DESCRIPTION OF IMPROVEMENTS AND ANY ANTICIPATED "CHANGE OF USE" THAT THE
PROPOSED PROJECT WILL RESULT IN:
NARRATIVE EXPLAINING NATURE AND AMOUNT OF THE REQUEST:
SIGNATURE OF THE AUTHORIZED CONTACT FOR THE BUSINESS:
SIGNATURE OF PROPERTY OWNER: (If different from the business)
PRINT NAME:
DATE:
FOR CITY OF SHAKOPEE USE ONLY
REVIEWED BY:
APPROVED BY:
DATE:
# of SAC UNITS:
MAY 2012
Page 2
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■ Ziegler, Inc . petitioned and paid for a
feasi bi I ity report for extend i ng sewer to East
Shakopee Industrial Area
■ D i d n ot m ove fo rwa rd d u e to cost a n d m a j o r i ty
af p ro p e rt i es we re n ot i n te reste d i n t h e
project .
, �
■ identified this area for Economic Development
by extending sanitary sewer. Area is already
served with city water.
■ EDAC recommended adoption of SAC Credit
Policy and Council approved such policy and
included this area for possible credits
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Cu rrently Served By On -Site Systems
Holding Tanks
Septic Tank/ Drainfields
Injection Wells
�� Eva I u ated G ravity Syste m
� Construction Cost Estimate of $ 633 , 000
2003 Project Cost Estimate of $ 791 , 000
$ 7 , 750/Acre Assessment
� ' � i • � i
Low P ress u re Sewe r Syste m - Less Expensive
Than Gravity System ( Estimated $ 200 , 000 . 00 less)
U t i I i zes :
Grinder Pumps
11�4�� Service Laterals
4" Forcemain
� Ownership
Property Owners Install and Maintains Grinder
City Installs and Maintains 4" Forcemain
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■ To determine interest in doing anather Preliminary
Report
■ Notified Property Owners of New SAC Credit Policy
■ N �tified Property Owners of City' s interest in
extending sewer for economic development
■ The City received interest in more than 50% of
property owners
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■ Report proposed to be done by staff with outside professional
assistance as needed
■ CITY LIFT STATION/ FORCEMAIN
Higher Assessments with lower maintenance costs to property
owners
■ INDIVIDUAL GRINDER PUMPjPRESSURIZED SYSTEM
Lawer Assessments with higher maintenance costs to property
owners
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■ Approval of Resolution No. 7242
A Resolution Ordering The Preparation Of A Preliminary Engineering
Report For The East Shakopee Industrial Sewer Extension
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