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Home My WebLink About6.d. Lebanon Hills Subwatershed Stormwater Rate ChangeI:\City Clerk\Agenda Items\Approved Items\6.d. Lebanon Hills Subwatershed Stormwater Rate Change.docx EXECUTIVE SUMMARY City Council Regular Meeting: March 4, 2020 AGENDA ITEM: Lebanon Hills Subwatershed Stormwater Rate Change AGENDA SECTION: Consent PREPARED BY: Stephanie Smith, Assistant City Engineer AGENDA NO. 6.d. ATTACHMENTS: Joint Powers Agreement with VRWJPO, Lebanon Subwatershed Map APPROVED BY: LJM RECOMMENDED ACTION: Motion to approve trunk stormwater rate change for Lebanon Hills Subwatershed. BACKGROUND Stormwater rates in the Lebanon Hills subwatershed area are adjusted to reflect the density and drainage conditions in the area. Previously, the City has determined it is appropriate to consider the costs for this subwatershed separately from the rest of the City because the stormwater flows north and requires comparatively less infrastructure. The Lebanon Hills subwatershed rate includes future ponding and trunk improvements within the subwatershed. The rate also includes a portion of costs obligated to the Vermillion River Watershed Joint Powers Organization (VRWJPO) based on an agreement (attached) for downstream improvements. Per the agreement, this rate must be adjusted for annual inflation based on the consumer price index (CPI). The table below shows the calculation rate proposed with the adjusted City costs. Watershed Agreement Obligations $ 649,120 Future Ponding and Trunk Improvements $1,190,640 Total City Costs $1,839,760 City Costs $1,839,760 Developable Acres in the Subwatershed 441.8 acres Proposed per-acre storm trunk rate $4165/ acre Currently, the fee is $3772/acre, but has not been increased since 2014. If approved, this new rate of $4,165/acre would be applied to all future development within the subwatershed area. RECOMMENDATION Staff recommends City Council approve the trunk stormwater rate change for Lebanon Hills Subwatershed. r JOINT POWERS AGREEM NT BETWEEN THE VERMILLION RIVER WATERSHED JOINT POWERS BOARD AND TNE CiTY OF RQSEMOt1NT FOR C05T SNARE RELA7ED TO EAGAN PROJECT 905R. A STORM DRAINAGE IMPROVEMEN7 PROJECT WHEREAS, Minn. Stat §471 59 authorizes iocal governmental uni#s to jointly or coaperatively exercise any power Common to ihe contracting parties; and WHEREAS,the Vermillion River Watershed Joint Powers Organization is a watershed management body consisting of aakota and Scott Counties(VRWJPQ)governed by the Ve million River Watershed Joini P wers Soard VRWJPBj and is charyed wi[h carrying out the duties set forth in Minn Stat. §§1G36 211 to 1038.255 and as othenroise provided by la:v; and WHEREAS,the C ty of Rosemounf (CITY)is a govemmental and pol tical subdivision of the State of Minnesota; and WHEREAS, the CITY s loca.ed vithin ihe Vermillion Rive Watershed and is part of the Qakota Counlylllermilfion River Watershed Management Tax District estabiished by akota County Ordinance 127; and WNEREAS, on December 20,2005,the Dakota County Board of C mmissioners adopted the Lebanon Hills Regional Park Storm Water Management Plan (Plan), which recommends twenty-hvo(22) improvement projects to resoive stormwater drainage issues: and WHEREAS,the City of Eagan is undertaking Public Improvement Project 905R(the Project)tivh ch is a storm drainage in provement project that would imp ement seven of the Plan's improvements; and WHEREAS, the ClTY, the City of Eagan, the Gity of Apple Valley,and the County of Dakota are contributing various amounts toward the cost of the Project;and WHEREAS, the CiTY has requested that the VRWJPO financially participate in the CITY'S costs associated with Lhe Project; and WHEREAS, assuming that che CITY receives gr8nt manies from the Minnesota Department of Natural Resources through Fluod Nazard Mitiga ian Grant A4B983 funds, the eshmated cost of the CITY's por6on of the Praject is 55.829.Q0;and WNEREAS, portions of ihe Vermillion River Watershed, including portions located in tfie CiTY as depicted in Exhibit f, attached hereto and incorporated herein by this eference,drain north into the lebanon Hills Regional Park,the Gun Club lake Watershed, and the City of Eagan; and WHEREAS, the area of!he CITY depicted in Exh bit 1 is primarily rural residential and is nat currently guided for de elopment;and WHEREAS, because the area of the CITY depicted In Exhibil 1 is not guided for development, the CIIY is unabie to fund its portion of the Project through the colSection of trunk area fees from lhis properiy unlil(urther de elopment occurs, and WHEREAS, the VR4VJP0 adopted its Walershed P an on fUovember 3, 2045,and said 4Vatershed Plan contains a Cost Sharir=g Policy rhat pro+:ides guidance to the VRWJJPB regarciing the cost sharing between the VRWJPO and p ten;ial pa lnars fc r varo ls wa;ershed managen ent elf rts affechng the Verrn lllon R ver Watershed;and WHEREAS, the Cost Sharing Policy sets forth pnarities for improvements affecUng the Vermillion R+ver 4Vatershed and one of the priorities is the reductian of floodrng m areas vith known flooding problems;and VvNEREAS, the COSt Sha icig PofiCy of the Wate shed Plan provides, ihat by agreement of a majority o(its members, it e'JRWJP6 i7ay checse to participate in the cost o! ro ecis or activities not cornprehended in the Cost Sharing Policy: and WHEREAS, at the time of the adopiion of the Wa:ershed Pian, the Project was not cc>mprehended; and WHEREAS,the Lebanon HRis Region2f Park and public roads have a history of flooding problems and the Lebanon Hills Reg onal Park has sutfered shoreline and erosion damage due to h gh water and hat said issues v iil be s gn;ficantly miligaied by the consiruction of the Projecl;and WHEREAS,the construction af the ProJecl wiH be of benefil to 1he Vermillion River Watershed as wel! as laca{ commur ities,and NCtW,THEREFORE, in considerat on of the mutual promises and benefits that the VRL'VJPO and Ihe CITY shail derive from lhis yree lient,the VRVVJPO, through the VRWJPB, and the CITY hereby enter into tf-,s Agreement for the purposes stated t erein. ARTICLE 1 PURPOSE The purpose of ihis Agreement s#o der"ir e the respons b lities and obligations of the VRWJPO and the CITY tor cost sharing the GITY's por#ion cf Eagan Pubfic Improvement Project 905R (the Project), vhich consists of siorm dfainage improvemer.is th2i will mplernent seven of the improvertients recommended in the Lebanon N IIs P.egianal Park Storm Waler Management Plan. ARTiCIE 2 PARTIES The parties to this Agreement are the Vermitlion Rivar Wafershed Joint Pnwers Organization{VRUVJPO)acting through its loint Powers Baard (VR'VJPB}and the Cify of Rosemount, hR nnesota(CITY). ARTICLE 3 TERM 3.1 EFFECTiVE DATES. This Agreement shall be etfFCt;ve the daie o#the signatures of the parties to ihis Agreein nt and shall remain in eifect until c mpletion by the part,es of their respeci ve obligatinns under this Agreemsnt,unless earlier terminated by law or according to the provisions of lhis A reement. 3.2 COND1TiONS. 3.2.1 The parties to tfiis Agreement understand that if a separate joint powers agreement is not entered inta and exer_Lded by the ClTY, Dakota Cc unt, 9 nnesota,Appte Val}ey, Minr esota, and Eagan, A4innesota, relatec: !o the construction of the Proje t,th s Ayreemeni has no force and effcct and the pariies are not baund by the ter ns of this Agreement_ 3.2.2 The Minnesola Department of Natural Resources (DNR)has confrmed that the Project costs are eligible for Flood Hazard Mitigalion Grant A48983 funds m the amount of$50,000.00. 3.2.3 The part es to th s Agreement understand that if the Project is not consiructed,for whatever reason, ihis Agreement has no force and efiect and the parties are not bound by the lerms of this Agreement. ARTIC.E 4 COOPERATlQN The VRWJPO and the CITY ayree to cooperate and use lheir reasonab e efforts to ensure prompt mplernentation oi the v2riuus provisions o(tf is Agreement and to, in good #aith, underlake resolu#ion of any dispute in an eywtabte and limely inanner. 7 ARTICLE 5 PARTIES' RESPONSlBI ITIES 5.1 INITIAL FEJNDING OF PROJECT. The CITY shall initially fund Ihe costs associated with the Project 5.2 COST SNARE 8Y THE VRWJPO TO THE CITY. The VR'NJPO shall cost share the C17Y's portion of the Project costs n an amouni not ro exceed 544_829.OQ. Thz cost share amo nt shail be repaic3 over ten {10) years n isn (10)equal annual insta lments of arincipal. In erest shall be paid with each prircipal pa;i ent at the rate uf`our ercent{4%)per year on the unpasd principal balance. The firsl nsta(ln enl of principal and inierest shall be paid on the anniversary date of the pa rment by ihe CITY of its share of Project osis, and the foitow+ng insta8mer ts shall P paid on the anniversary date of the first payment. There 5halt be no penalty assessed for any prepayment bp the VRVJJPO of the cflst share oblic ation. 5.3 PAYBACK OF COS7 SHARE BY THE CITY TO THE VRWJPO. The CITY vril!repay the pnncipal amaunt of the CITY's share of Pro ect costs, adjusted as fofiows, n accordance w th the limitations n this section. The CITY will collect slorm seti,•er charyes `rom landowners upon development ai ihe [ime of subdi,sion of properties within the tivatershed depicied in Exhibit 1. Upon rece pt of such st rm sewer char es by the ClTY from Developers, the CITY will repay the VRUVJPO at an amount per acre at subd,vided land deierrnined by dividirg ihe amount of the CITY'S purit n of Prolect cests y#he total number of acres n the watershed depicted in Exhibit 1 f.4727 acres)_ This amount will be adjusied over time by lh?cha ge in ihe Bureau oi La or Stafistics Consumer Price Index, al! urban consumers, all tlnited States, mdexed from two months pnor to the month of the CITY's initiai payment of Project costs io Ihe inor th occurring tvro months belore !he payment to the VR'JJJPO. The C17Y's obliga:ion to pay shall cease after t fty(50)years from the date of this Agreement as to any lands ihat have not received final subd vis on approval by that!ate. 5.4 WATERSHEQ BOl1NDARY/WITHDRAWAL RESTRICTIONS. 5.4.1 During the term ef this Agreement, ihe CITY shail not undertake any official actions lo petition, ask for, or support a petition or request io change the boundary of or fa withdrativ from the Vermillion River l/ti'atershed andror the Dakota County,'Verm llian R+.er Walershed Pv1anagement Ta.r District If dunng the term ot this Agreement, tne CITY undertakes any of the afarement oned actions, this greement shall terminate and the CITY shall immediately reimburse to the VR:NJPO any and aU cost share amounts, including mterest, paid by the VRVJJPO to the CITY under lhe ierms of this Agreemenl. 5.4.2 If during the term of this Agreement another party or parties not affiliated witti the CITY peticions to change lhe boundary of the Vermillion River 4^latErshed so as b ramo•e the property I}ng w thin the C17Y from the rrr illion River Watershed or aetitions to w tndraw the properiy I}ing wit!-hin the CtTY from the Vermillion River 4`Vatershed and a petition is ranted. this A reement stiall terminate and the Cf7Y shatt irnrnediaiely reimburse to the VRWJPO any and all cost share amoursts, includ ng interest,pa d by the VF2V`JJPO to the CITY unde the terms of this Agreement. ARTICLE 6 GENERAL PROVISIONS 6.9 INDEMNIFiCATION. Each party to Ihis Agreernent shall be liable for the acts of its o cers,employees or agents and the results theraof tq the ex(ent authorized by!aw and shall not be responsible for the acts of the other arty, its officers, employees or agents. The provisio s of the h.9un cipal Tort Claims Act, Minn. Slat. Ch. 466 and other applicahle laws gavern I ab lity of the VRV'JJPO and the GITY. 6.Z AUDITS. Pursuant to Minn 5tat §16C.Q5, subd. 5 any books, records, doctiments and atcouniing procedures and raciices of any party t4 this A.grFcment are sub ec;to eKaminalion by the other pany,the legislative auditor or the state auditar as appropriate. Eacl, p rty agrees to mainta n their records for a period of s x years from the date of performance of a11 servic:es under tl is Agreement, 6.3 RESPONSIBILITY FOR C STS. The parties shall be responsible for their own attomeys' tees and other costs associata i w th I e {;eparation and nec oUation in draft FZg this Agreement as well s any subsequent dispule arising out of or re4atiny tp ih s Ayreement. 3 S.4 TERMINATION. Urless earlier tetminated by written, mutual agreement o(the parlies or by operatian of sections 5.4.1 or 5.4.2 of Ihis r",greement, this Agrevment shall ierminate upon the completion of ap responsibilit es of the pari+es as set forth in Ar[icle 5 of ttiis Agreernent. In the event any enablmg statu e, ruie,or ordinance is repealed or changed so as o make lhe tenns o(this P.yreement r any of its Exh bi s unreasonab[e, t is the intent of the parties to hring such matter(s)back to their respective governin Boards For consideration. ARTICLE 7 AUTHORIZED REPRESENTA7IVES ANQ LIAISONS 7.1 AUTHORIZED REPRESENTATiVES. The fallowing named persons are desigriated the Authorized Representat es of ths parties for purposes of this Agreement. Shese persons have author ty to bind the party they represent and lo consent to mc dificat ons and subcontracts, excepE ihat ti e authonzed represen ative shall have only tha authonty spec f caliy or generalty granted by their respective yoveming b4ards. Notice required to be provided a rsuant to h4s Agreement shall be providen to the{o!lowing named persans and addresses unless othenvise stated "+n this A reement,or in a rnodificaGon f this Agreement TG TFiE VRWJPB: Joseph A. Harris or successor, Chair Vermll on R ver Watershed Joint Powers Organization 14955 Galaxie P,ve. App(e Valley, •iN 55t24 Telephonc: {952j 89t-703 TO THE GITY: VVilliam Droste or successor, Mayor Rosemount City i-iall 2875 145 St.V`J. Rosernount, MN 55Q68 Telephone: {65}»23-4411 In addition, notificztion to the 'JR+/JPB regarding lecmination of this Agreement by the other party shall be p vvided to the Ofiice of 1t e Dakoia Caunty Attorney. 1560 Highway 55, Hastings, 1vlinnesoia 55033. 7.2 IAIS NS. To assist the parties in the day-tv-day pertormance of this Agreement and to ensure compfiance and prov+e ongoing consullatir n. a liaison shall be designated by the VRVVJPB and Ihe GITY TI•e VRWJBP and the CITY sh;U keep each:l•hrr cont nually informeci,u v,riting,of any change n the des nated liaison_ At the time of execution of this Ag:eement, the fcllowing persans are the designated liaisons: VRVJJPB Liaison:Lynn Thompson, Deputy Oirector Physical Developmerlt Division Te ephone: (952) B9t-7UU7 CITY Liaison: Jamie Verbrugge, City Administralor Tele hone (fi51)322-2006 ARTIC E 8 MODIFICATIONS Any alter2ti s, variat+ons, modificatiqns, or waivers of ihe provisions of this Agreement shafl oniy be val d when they have been reduced to 4vriting, approved by the parties respective Boards, and signed by the Autharized Representatives of the VF;'JPB and tl r CITY ARTICLE 9 SEVERABiL1T1( The prov sions of this AgreemenT shall be deemed sc:t-erable If any part of this Agreement s ren ered void, invaiid, nr unenforceabie, such rentfering shall not afiect the alidily and enioiceabifily of the remamder of this Agreement unless the part nr parts thal are void. malid or otnercvise unenforceable shall substanUally impazr ttie value of the entire Ag eement w:th respe t t eiih r parry. 4 i 1N WIT IESS NIWEREOF, the parties hereto have executed this Agreement on the date(s)inditated below. CiTY OF ROS IOUNT J APPROVED AS TO FORh9: 1 g)I Y "' 1 t 4Villiam Dre;te, PY ayor Rosernount Gity Attorney Dale Dale of Sign ture q By t'"j -_ jr- __r Amy Donzeisr, Clsrk t Date of Signature' i ^[ __ VERMILI.ION R1VER WATER5HED JOiN7 POWERS BOARD APPROVED AS TCl F RM: B 0 ff .00 1 Jo ph A. Harris,Chair A sistant Gounh Atto ney at date of Signature: /o.z S o 7_ _ VRW Res. No 07-67 G ntr r.t i R025 K: K-O7-137 5