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Approve Agreement for Water Reuse at Lk Susan Pk Ball FieldCITY COUNCIL STAFF REPORT Monday, April 23, 2018 Subject Approve Agreement with Riley Purgatory Bluff Creek Watershed District for Water Reuse at Lake Susan Park Ball Field Section CONSENT AGENDA Item No: E.6. Prepared By Paul Oehme, Director of Public Works/City Engineer File No: SWMP­33C PROPOSED MOTION “The City Council approves a Cooperative Agreement with the Riley Purgatory Bluff Creek Watershed District (RPBCWD) for Lake Susan Park Pond Watershed Treatment and Stormwater Reuse Project." Council approval requires a Simple Majority Vote of members present. BACKGROUND As part of the city's stormwater management plan, the city has been working with the RPBCWD to improve the water quality of Lake Susan. Excessive nutrient loading has been identified as an ongoing problem. In 2010, the Minnesota Pollution Control Agency designated Lake Susan as impaired for aquatic recreation because of excessive nutrients in the lake.  The RPBCWD prepared a feasibility report in March 2017 to assess options to further reduce phosphorus loading to and improve water quality in Lake Susan. This report determined the construction of an iron­enhanced sand filter bench at the pond at the corner of Powers Boulevard and Lake Drive, and a reuse system from the same pond to irrigate the Lake Susan ball field would reduce loading of total phosphorus to Lake Susan by 32 pounds per year. This reduction will go a long way to meeting the city's Minnesota Pollution Control Agency MS4 permit requirements. The Lake Susan ball field can use 500,000 gallons of water annually for irrigation. The pond is very large and is estimated to function adequately for a reuse system. The system will be equipped with an ultra violet (UV) system for disinfection. The system will still have the option to convert back to city water if necessary.  The project will increase public awareness of stormwater reuse and groundwater conservation and will decrease the draw on the underlying aquifer for irrigation.  The city would be responsible for the operations and maintenance of the water reuse system for the Lake Susan ball field. The iron filter bench is estimated to have a life expectancy of 15 years. The Watershed District would be responsible for the purchase of the filter media. City forces would be responsible for labor to replace the material.  The RPBCWD solicited bids for the project. Three bids were received: 1. G.F. Jedlicki, Inc.             $652,667 CITY COUNCIL STAFF REPORTMonday, April 23, 2018SubjectApprove Agreement with Riley Purgatory Bluff Creek Watershed District for Water Reuse atLake Susan Park Ball FieldSectionCONSENT AGENDA Item No: E.6.Prepared By Paul Oehme, Director of PublicWorks/City Engineer File No: SWMP­33CPROPOSED MOTION“The City Council approves a Cooperative Agreement with the Riley Purgatory Bluff Creek Watershed District(RPBCWD) for Lake Susan Park Pond Watershed Treatment and Stormwater Reuse Project."Council approval requires a Simple Majority Vote of members present.BACKGROUNDAs part of the city's stormwater management plan, the city has been working with the RPBCWD to improve the waterquality of Lake Susan. Excessive nutrient loading has been identified as an ongoing problem. In 2010, the MinnesotaPollution Control Agency designated Lake Susan as impaired for aquatic recreation because of excessive nutrients inthe lake. The RPBCWD prepared a feasibility report in March 2017 to assess options to further reduce phosphorus loading toand improve water quality in Lake Susan. This report determined the construction of an iron­enhanced sand filterbench at the pond at the corner of Powers Boulevard and Lake Drive, and a reuse system from the same pond toirrigate the Lake Susan ball field would reduce loading of total phosphorus to Lake Susan by 32 pounds per year. Thisreduction will go a long way to meeting the city's Minnesota Pollution Control Agency MS4 permit requirements. TheLake Susan ball field can use 500,000 gallons of water annually for irrigation. The pond is very large and is estimatedto function adequately for a reuse system. The system will be equipped with an ultra violet (UV) system fordisinfection. The system will still have the option to convert back to city water if necessary. The project will increase public awareness of stormwater reuse and groundwater conservation and will decrease thedraw on the underlying aquifer for irrigation. The city would be responsible for the operations and maintenance of the water reuse system for the Lake Susan ballfield. The iron filter bench is estimated to have a life expectancy of 15 years. The Watershed District would beresponsible for the purchase of the filter media. City forces would be responsible for labor to replace the material. The RPBCWD solicited bids for the project. Three bids were received: 1. G.F. Jedlicki, Inc.             $652,667 2. Urban Companies            $579,355 3. Peterson Companies        $467,491 The bids did come in over the Engineer' Estimate. Peterson Companies has installed many water reuse systems in the metro area. Their work has been acceptable. They are currently working on the Chanhassen High School water reuse project. The RPBCWD has secured a $233,400 Clean Water, Land and Legacy grant from the State of Minnesota. Financing for the project is proposed as follows: State Grant Funds        $233,400 RPBCWD Funds          $135,000 City Funds                    $  99,091 City funding was budgeted in the 2018 CIP, SWMP­052 and split Surface Water and Water Utility funds. The Surface Water Utility fund is proposed to fund $30,000 and the Water Utility Fund is proposed to fund $64,091. RPBCWD is paying for the engineering and indirect cost of the project.  Grant funds are only available in 2018. The city attorney has reviewed the cooperative agreement. ATTACHMENTS: Cooperative Agreement CIP Sheet COOPERATIVE AGREEMENT Between the Riley-Purgatory-Bluff Creek Watershed District and the City of Chanhassen Lake Susan Park Pond Watershed Treatment and Stormwater Reuse Project This cooperative agreement is made by and between the Riley-Purgatory-Bluff Creek Watershed District, a watershed district created pursuant to Minnesota Statutes chapters 103B and 103D (RPBCWD), and the City of Chanhassen, a governmental subdivision and body corporate and politic of the State of Minnesota (Chanhassen) for the construction, operation and maintenance of the Lake Susan Park Pond water-quality improvement and stormwater-reuse project. Recitals WHEREAS RPBCWD’s approved watershed management plan (the Plan) identifies excessive nutrient loading as an ongoing harm to water quality in Lake Susan; WHEREAS in 2010 the Minnesota Pollution Control Agency designated Lake Susan as impaired for aquatic recreation because of excessive nutrients in the lake, and the lake does not meet its designated-use classification; WHEREAS the capital improvement program in the Plan includes the Lake Susan Water Quality Improvement Project, which includes measures to manage external phosphorus loading to Lake Susan, including increasing storage in basins that discharge to Lake Susan, installing bench or perimeter filters in such basins for soluble phosphorus removal and installing water reuse systems to use basin water for irrigation; WHEREAS Chanhassen operates its stormwater management system under the state Municipal Separate Storm Sewer System general permit, and construction and maintenance of the Project will accrue to the benefit of Chanhassen’s fulfillment of its MS4 permit obligations; WHEREAS in 2013 RPBCWD and Chanhassen completed an update of the Use Attainability Analysis for Lake Susan that RPBCWD had prepared in 1999 and the update focused on: (1) assessing the water quality in Lake Susan based on updated physical, chemical and biological data; (2) improving understanding of current water quality concerns in the lake; and (3) identifying best management practices to improve and protect the lake’s water quality and increase the likelihood of Lake Susan being removed from the state impaired waters list; WHEREAS in 2016 RPBCWD completed construction of a spent-lime treatment system that is expected to reduce phosphorus levels in runoff to Lake Susan by 45 pounds per year, contributing substantially to achieving RPBCWD’s water-quality goals for the lake but not on its own achieving the necessary reductions; WHEREAS the RPBCWD engineer prepared a feasibility report in March 2017 to assess options to further reduce phosphorus loading to and improve water quality in Lake Susan, and the engineer determined that construction and operation of a pump, iron-enhanced sand filter Riley-Purgatory-Bluff Creek Watershed District & City of Chanhassen Cooperative Agreement – Lake Susan Park Pond Watershed Treatment and Stormwater Reuse Project 2 and reuse system would reduce loading of total phosphorus to Lake Susan by 32 pounds per year at an estimated annual cost of between $530 and $830 per pound of phosphorus removed and would conserve 1.9 acre-feet of groundwater per year at a total cost of $480,000; WHEREAS based on these findings and an assessment of potential site impacts, the RPBCWD engineer recommended construction and operation of a pump, filter and reuse system as the most appropriate and cost-effective conceptual design to address RPBCWD’s goals for Lake Susan and established interest in reducing use of groundwater for irrigation; WHEREAS after a duly noticed public hearing on April 5, 2017, the RPBCWD Board of Managers considered the comments received then ordered the Lake Susan Park Pond project on July 12, 2017; WHEREAS at the direction of the managers, the RPBCWD engineer has completed designs, plans and specifications for construction of an iron-enhanced sand filter adjacent to Lake Susan Park Pond, along with a pump to remove stormwater collected in the pond and route it to the filter for phosphorus removal prior to discharge back to the pond outlet and Lake Susan (the Project). The Project also includes a retrofit of the existing irrigation system at Lake Susan Park to capture, store and use stormwater for irrigation of the park’s baseball field; WHEREAS the Project will be constructed on multiple parcels owned by the City of Chanhassen that altogether constitute Lake Susan Park, which is operated by Chanhassen, in the area depicted and labeled “Project Area” in Exhibit A; WHEREAS RPBCWD has secured a $233,400 Clean Water, Land and Legacy grant from the State of Minnesota for the Project, which grant carries with it certain obligations and requirements; WHEREAS the Project will increase public awareness of stormwater reuse and groundwater conservation and will decrease the draw on the underlying aquifer for irrigation; WHEREAS Chanhassen and RPBCWD acknowledge that their ability to achieve Project objectives depends on each party satisfactorily and promptly performing individual obligations and working cooperatively with the other party; and WHEREAS Minnesota Statutes section 471.59 authorizes Chanhassen and RPBCWD to enter this cooperative agreement. AGREEMENT NOW, THEREFORE Chanhassen and RPBCWD enter into this agreement to document their understanding as to the scope of the Project, affirm their commitments as to the responsibilities of and tasks to be undertaken by each party, establish procedures for performing these tasks and carrying out these responsibilities, and facilitate communication and cooperation to successfully complete and subsequently operate and maintain the Project. Riley-Purgatory-Bluff Creek Watershed District & City of Chanhassen Cooperative Agreement – Lake Susan Park Pond Watershed Treatment and Stormwater Reuse Project 3 1 Organization and Relationship of the Parties 1.1 The RPBCWD administrator and the Chanhassen water resources coordinator will serve as project leads and principal contacts for their respective organizations for the Project, charged to conduct the day-to-day activities necessary to ensure that the Project is completed in accordance with the terms of this agreement. 1.2 The project leads will coordinate and communicate informally and formally to timely address any issues of concern to ensure the successful completion of the Project. 2 Project Design, Construction and Maintenance 2.1 The Project is further defined for purposes of this cooperative agreement as the work specified in the designs, plans and specifications attached to and incorporated into this agreement as Exhibit B. The Project will also include, after completion of construction, assessment of the effectiveness of the Project by the parties and development by the RPBCWD engineer of specific written schedules, procedures and protocols for routine and major operation and maintenance of the Project. This agreement also provides terms and conditions for post-construction operation and maintenance of the Project. 2.2 For purposes of the Project as specified in paragraph 2.1 and Exhibit B: i. Chanhassen’s execution of this agreement constitutes approval of the designs, plans and specifications in Exhibit B; ii. By execution of this agreement, Chanhassen grants to RPBCWD, its contractors, agents and assigns a license to access and use the Project Area for purposes of RPBCWD’s successful exercise of rights and completion of its obligations under this agreement. Chanhassen’s authorization of property-use rights hereunder is nonexclusive, except that RPBCWD, on 24 hours’ notice to Chanhassen, may temporarily restrict or preclude public access to the Project Area to ensure safety while construction activities are under way. Access to the Project Area will be restricted as briefly and infrequently as reasonably possible, and will be imposed only as necessary for Project access, construction and safety purposes. RPBCWD will respond within one business day to any communication from Chanhassen regarding closure of the Project Area. iii. On completion of construction of the Project, Chanhassen will retain ownership of Lake Susan Park and all installed and constructed elements of the Project as described in paragraph 2.1 and otherwise herein. iv. Chanhassen will forbear from any activity that interferes with the RPBCWD's ability to exercise its rights or meet its obligations under this agreement, including but not limited to transfer of ownership of Lake Susan Park. Chanhassen will facilitate RPBCWD’s reasonable exercise of its rights under this agreement with regard to access to and use of the Project Area. Chanhassen will not take any action on, in or adjacent Riley-Purgatory-Bluff Creek Watershed District & City of Chanhassen Cooperative Agreement – Lake Susan Park Pond Watershed Treatment and Stormwater Reuse Project 4 to the Project Area that could reasonably be expected to diminish the effectiveness or function of the Project for the purposes intended, and after notice of completion of construction of the Project from RPBCWD, Chanhassen will continue to operate and maintenance maintain Lake Susan Park in a manner that avoids inhibiting the operation and effectiveness of the Project. 2.3 As between the parties, RPBCWD will obtain all necessary permits, licenses and approvals for the Project on behalf of itself and Chanhassen, and will ensure that the Project is completed in accordance with applicable law and regulatory requirements. Chanhassen, as owner of Lake Susan Park, will cooperate with RPBCWD’s and its contractor’s efforts to obtain permits and approvals needed for the Project. Chanhassen, in its regulatory capacity, will facilitate the proper and efficient processing of any permits or approvals needed for the Project. 2.4 RPBCWD will implement the Project as follows: i. RPBCWD will contract for the construction of the Project as specified in the construction documents in Exhibit B in accordance with state procurement law. RPBCWD will require that the contractor for the Project name Chanhassen as an additional insured with primary and noncontributory coverage for general liability and provide a certificate showing same prior to construction; ii. RPBCWD or the RPBCWD engineer on RPBCWD’s behalf will oversee the construction of the Project. RPBCWD may adjust the designs, plans and specifications for the Project during construction, as long as the revisions do not require RPBCWD to exceed the scope of the rights granted under this agreement; iii. RPBCWD will submit material changes to Project plans and specifications to Chanhassen for review and approval, such approval not to be unreasonably withheld. Chanhassen’s failure to timely act will constitute approval; iv. On completion of construction of the Project, RPBCWD will restore the Project Area to a safe and functional condition, consistent with its ongoing use for public recreational purposes, except to the extent Lake Susan Park is improved by the Project. 2.5 Until completion of construction of the Project, if RPBCWD, in its judgment, should decide that the Project is infeasible, RPBCWD, at its option, may declare the agreement rescinded and annulled. If RPBCWD so declares, all obligations herein, performed or not, will be voided, except that RPBCWD will return the Project Area materially to its prior condition or to a condition agreed to by Chanhassen and RPBCWD. 2.6 Maintenance. i. RPBCWD will contract with the RPBCWD engineer for and direct the development, in collaboration with Chanhassen, of a draft plan for the post-construction maintenance of the Project (the Maintenance Plan). The Maintenance Plan will delineate and distinguish routine and major maintenance and repair of the Project. Riley-Purgatory-Bluff Creek Watershed District & City of Chanhassen Cooperative Agreement – Lake Susan Park Pond Watershed Treatment and Stormwater Reuse Project 5 ii. Chanhassen will approve the Maintenance Plan within 45 days of receipt from RPBCWD, such approval not to be unreasonably withheld. Failure by Chanhassen to timely act on its rights and obligations under this paragraph will constitute approval of the Maintenance Plan. If Chanhassen disapproves the Maintenance Plan, all maintenance necessary to assure that the Project will continue to effectively function as designed will become the sole responsibility of Chanhassen. After approval of the Maintenance Plan, Chanhassen will perform all routine maintenance and monitoring of the Project, along with reporting as may be required by the Maintenance Plan, for 20 years from the date the Project is substantially complete for its intended purposes. iii. After approval of the Maintenance Plan, Chanhassen will complete or contract for the completion, in its sole discretion, of major maintenance and repairs of the Project, as necessary, for 20 years from the date the Project is substantially complete for the intended purposes. For purposes of this agreement, major maintenance and repair of the Project is defined as work necessary to ensure the continued effective operation of the Project for its intended purposes beyond the routine maintenance and repairs defined and specified in the Maintenance Plan. iv. RPBCWD may from time to time conduct monitoring of the performance of the Project. 3 Cost- and Credit-Sharing 3.1 Construction costs. RPBCWD will be responsible for all costs of design and construction of the Project, except that Chanhassen will reimburse RPBCWD for $50,000 of documented Project costs. RPBCWD will be responsible for the costs and fees associated with complying with regulatory requirements applicable to the Project, except that Chanhassen will assess no fee to RPBCWD for Chanhassen permits required for the Project, if any. 3.2 Maintenance costs. Chanhassen will be responsible for costs of operation and routine and major maintenance of the Project in accordance with the Maintenance Plan for a minimum of 20 years from the date of substantial completion, except that RPBCWD will duly consider levying and dedicating maintenance funds for maintenance of the Project. 3.3 Administrative costs. Each party will bear its administrative and incidental costs of fulfilling its responsibilities and obligations under this agreement. 3.4 Compliance credit. All stormwater-management or nutrient-reduction capacity created by the Project, if any, may be utilized by Chanhassen in accounting for compliance with its MS4 permit or other regulatory obligations. Chanhassen will determine, at its cost, available credit from the Project. RPBCWD makes no representation or warranty as to credit that will be available from or results that will be achieved by the Project. 4 Specific additional duties – RPBCWD 4.1 RPBCWD will provide as-built construction drawings of the Project to Chanhassen within 90 days of certification of the Project as substantially complete for the intended purposes. Riley-Purgatory-Bluff Creek Watershed District & City of Chanhassen Cooperative Agreement – Lake Susan Park Pond Watershed Treatment and Stormwater Reuse Project 6 4.2 RPBCWD will contract with the RPBCWD engineer for the development of the Maintenance Plan. The contract for the Maintenance Plan will require the RPBCWD engineer to provide the Maintenance Plan for approval by Chanhassen and RPBCWD within one year of certification by a qualified engineer of the as-built construction drawings of the Project, such approval not to be unreasonably withheld. 4.3 RPBCWD makes no warranty to Chanhassen regarding the RPBCWD engineer’s or another third party’s performance in design, construction or construction management for the Project or completion of the Maintenance Plan. 5 General Terms 5.1 INDEPENDENT RELATIONSHIP; LIABILITY. i. This agreement does not create a joint powers board or organization within the meaning of Minnesota Statutes section 471.59, and neither party agrees to be responsible for the acts or omissions of the other pursuant to subdivision 1(a) of the statute. Only contractual remedies are available for the failure of a party to fulfill the terms of this agreement. ii. Chanhassen and RPBCWD enter this agreement solely for the purposes of improving water quality in Lake Susan. Accordingly, each party is responsible for its own acts, omissions and the results thereof to the extent authorized by law and will not be responsible for the acts and omissions of others or the results thereof. Minn. Stat. chapter 466 and other applicable law govern liability of each of the parties. The limits of liability for the parties may not be added together to determine the maximum amount of liability for either party. Notwithstanding the foregoing or any other provision of this agreement, Chanhassen’s and RPBCWD’s obligations under this paragraph will survive the termination of the agreement. iii. This agreement creates no right in and waives no immunity, defense or liability limitation with respect to any third party. iv. Notwithstanding the foregoing, RPBCWD will not be deemed to have acquired by entry into or performance under this agreement, any form of interest or ownership in the Project Area. RPBCWD will not by entry into or performance under this agreement be deemed to have exercised any form of control over the use, operation or management of any portion of the Project Area or adjacent property so as to render RPBCWD a potentially responsible party for any contamination under state and/or federal law. 5.2 PUBLICITY AND ENDORSEMENT. Any publicity regarding the Project must identify Chanhassen and RPBCWD as the sponsoring entities, and must acknowledge the dedication of Clean Water Land and Legacy funds to the Project. For purposes of this provision, publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar Riley-Purgatory-Bluff Creek Watershed District & City of Chanhassen Cooperative Agreement – Lake Susan Park Pond Watershed Treatment and Stormwater Reuse Project 7 public notices prepared by or for Chanhassen or RPBCWD individually or jointly with others, or any subcontractors, with respect to the Project. RPBCWD and Chanhassen will collaborate on the development of educational and informational signage pertinent to the Project, and each party, at its cost, may develop, produce and, after approval of the other party, distribute educational, outreach and publicity materials related to the Project. 5.3 DATA MANAGEMENT. All designs, written materials, technical data, research or any other work-in-progress will be shared between the parties to this agreement on request, except as prohibited by law. As soon as is practicable, the party preparing plans, specifications, contractual documents, materials for public communication or education will provide them to the other party for recordkeeping and other necessary purposes. 5.4 DATA PRACTICES. All data created, collected, received, maintained or disseminated for any purpose in the course of this agreement is governed by the Minnesota Government Data Practices Act, Minnesota Statutes chapter 13, and any state rules adopted to implement the act, as well as federal regulations on data privacy 5.5 ENTIRE AGREEMENT. This agreement, as it may be amended in writing, contains the complete and entire agreement between the parties relating to the subject matter hereof, and supersedes all prior negotiations, agreements, representations and understandings, if any, between the parties respecting such matters. The recitals stated at the outset are incorporated into and made a part of the agreement. 5.6 WAIVERS. The waiver by Chanhassen or RPBCWD of any breach or failure to comply with any provision of this agreement by the other party will not be construed as nor will it constitute a continuing waiver of such provision or a waiver of any other breach of or failure to comply with any other provision of this agreement. 5.7 NOTICES. Any notice, demand or communication under this agreement by either party to the other will be deemed to be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid to: Chanhassen RPBCWD Paul Oehme Claire Bleser, PhD, administrator 7700 Market Blvd 18681 Lake Drive East Chanhassen, MN 55317 Chanhassen MN 55317 952-227-1168 952-607-6512 6.8 TERM; TERMINATION. This agreement is effective on execution by both parties and will terminate three years from the date of execution of this agreement or on the written agreement of both parties. Riley-Purgatory-Bluff Creek Watershed District & City of Chanhassen Cooperative Agreement – Lake Susan Park Pond Watershed Treatment and Stormwater Reuse Project 8 IN WITNESS WHEREOF, the parties have executed this agreement. RILEY-PURGATORY-BLUFF CREEK WATERSHED DISTRICT a watershed district and political subdivision of the State of Minnesota By _____________________ Date:______________________ Leslie Yetka President APPROVED AS TO FORM AND EXECUTION By _____________________________ RPBCWD counsel CITY OF CHANHASSEN, a statutory city and political subdivision of the State of Minnesota By ______________________ Date: ________________________ Denny Laufenburger Mayor By ______________________ Date: ________________________ Todd Gerhardt City Manager Exhibit A Project Area Exhibit B Project Designs, Plans and Specifications Capital Improvement Program 2018 thru 2A22 CiE of Chanhassen, MN Projeet# SWMP-052 Project Name Lake Susan Park Water Re-Use Project Deplrtment Surface Water Management Contrct Paul Oehme Typc Improvement Useful Life Cetegory SWMP Priority n/a Total Account#1 700-70254xxx Account #2 720-70254xxx Expenditures 201E 2019 I I I I 2021 a pump and treatment device to draw water from Lake Susan Pond to irrigate Lake Susan Park, The majority of the expense will be paid by fuley Purgatory BluffCreek Watershed District and the Clcan Water Land and Legacy Act Grant. The project also includes constructing an filings bench in the Lake Susan storm waterpond. City irrigates nine parks resulting in the consumption of8,000,000 to 10,000,000 gallons ofpotable water every year. Lake Susan Park uses average of 575,000 gallons every year. By using the more than 7,000,000 gallons of storage in the existing pond, the City can reduce the by nearly l0olo. In addition, this will reduce nutrient loading to Lake Susan which is impaircd for excessive nutrients. Construction Funding Sources 333,000 :l:13,000 2018 2019 2021 Total Other Agency Contribution Surfaca Water Utilig Fund Water Utility Fund 283,000 15,000 35,000 283,000 15,000 35,000 Total Ihis will utilize the existing inigation system. The parks department will need to maintain the pump and the treatrnent system. I I I I I I I I 100 Budset Imoact/Other