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BVM-PHS Senior Housing, Inc. Development Sanitary Sewer Construction_MOA w/Mount Carmel Copyrighted August 5, 2019 City of Dubuque Consent Items # 14. ITEM TITLE: BVM-PHS Senior Housing, Inc. DevelopmentSanitary Sewer Construction Memorandum of Agreement at Mt. Carmel Campus SUMMARY: City Manager recommending approval of the Sanitary Sewer Construction Memorandum of Agreement with BVM-PHS Senior Housing, Inc. that is required to begin construction on a proposed sanitary sewer extension to serve the existing Mother House building and the new skilled nursing, assisted living and memory care facilities at the Mt. Carmel Campus. RESOLUTION Approving a Sanitary Sewer Construction Memorandum of Agreement between the City of Dubuque, lowaand BVM/PHS Senior Housing, Inc. SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt Resolution(s) ATTACHMENTS: Description Type BVM-PHS Senior Housing Sanitary Sewer City Manager Memo Construction MOA-MVM Memo Staff Memo Staff Memo Resolution Resolutions MOU BVM-PHS CITY Supporting Documentation Dubuque THE CITY OF � uI�AaMca cih DuB E � � I � � I Maste iece on the Mississi i Zoo�•zoiz•zois YP pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Sanitary Sewer Construction Memorandum of Agreement — BVM-PHS Senior Housing, Inc. Development at Mt. Carmel Campus DATE: July 25, 2019 City Engineer Gus Psihoyos recommends City Council approval of the Sanitary Sewer Construction Memorandum of Agreement with BVM-PHS Senior Housing, Inc. that is required to begin construction on a proposed sanitary sewer extension to serve the existing mother house building and the new skilled nursing, assisted living and memory care facilities at the Mt. Carmel Campus. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Gus Psihoyos, City Engineer Dubuque THE CITY OF � All•A��City DUB E ` . � � � � � � 1� Mllste ieCE On tl2P. MiSsiSsi i zoo�•zoiz•zois � �� 2017*2019 TO: Michael C. Van Milligen, City Manager. ���� FROM: Gus Psihoyos, City Engineer � _,.� , DATE: July 25, 2019 SUBJECT: Sanitary Sewer Construction Memorandum of Agreement— BVM- PHS Senior Housing, Inc. Development at Mt. Carmel Campus INTRODUCTION The purpose of this memorandum is to provide information on a Sanitary Sewer Construction MOA required to begin construction on a proposed sanitary sewer extension to serve the existing mother house building and the new skilled nursing, assisted living, and memory care facilities at the Mt. Carmel Campus. BACKGROUND BVM-PHS Senior Housing, Inc. is proposing to improve the Mt. Carmel Campus by adding new skilled nursing, assisted living, memory care facilities (Phase 1 improvements), and independent senior living units (Phase 2 improvements) over the next several years. DISCUSSION In 1974, the Sisters of Charity of the Blessed Virgin Mary (SC-BVM) were the owners and developers of a six-lot residential subdivision along Carmel Drive called Carmel Heights. The area has been developed and re-platted and currently includes only three residential lots, with one of the three lots being vacant. As part of the original subdivision development SC-BVM extended sanitary sewer main to the six lots. The sanitary sewer for these lots was connected to the existing sanitary sewer main that served the SC-BVM campus. This sanitary sewer main extends down the steep bluff or� the river side of the property and connects to the City's sanitary force main along the railroad tracks next to the Mississippi River. Per City Resolution 260-74, the City approved the subdivision plat for Carmel Heights and accepted ownership and maintenance of the existing sewer down the steep bluff which connects to the City sanitary force main. This existing public sanitary sewer main running from the BVM facility area east to the City's sanitary force main along the railroad and Mississippi River (East Sewer) is a concern because of its condition, location, and the fact that it is connected directly to the City public force main. Because of these reasons, the City's long-term plan is to abandon the East Sewer to eliminate the liability associated with its ownership and maintenance. This is the only location in the City that a gravity sanitary sewer line is tied directly into a sanifary sewer ic�rce main systerr�. BecauS� c�f thi�, ti ie City is requiring all new sanitary sewer service lines installed at the BVM site to discharge into a gravity public sanitary sewer main. This is the reason why the City is currently involved in the project. BVM-PHS have agreed to discharge the future Phase 2 improvements to the existing public gravity sewer main in the northwest corner of their property. Regarding sanitary sewer service for the Phase 1 improvements, the City and BVM-PHS considered several alternatives, including a lift station, and have agreed that a gravity sanitary sewer extension to Julien Dubuque Drive is the best option. The attached MOU states that BVM-PHS will construct a private sewer from the BVM Phase 1 facilities to Julien Dubuque Drive. The City will construct a public sewer from the existing sewer serving Shady Oaks to the private BVM-PHS sewer along Julien Dubuque Drive (Julien Sewer). The previously described three residential lots (one vacant) along the east side of Carmel Drive opposite of the Mt. Carmel Campus are served by the East Sewer. Prior to the East Sewer being abandoned, these lots will need be served by a newly constructed E1 pumps (or a small lift station) that will discharge in the public gravity sewer main in the northwest corner of the Mt. Carmel Campus property. This sewer project will be budgeted for and constructed in a future capital improvements program. The estimate cost for this project could be as high as $175,000. This would be all City cost since the properties are all currently being served by City sewer. The attached Sanitary Sewer Construction MOA sets out the conditions and requirements for the construction timing and easements for said improvements. The MOA also allows a construction permit for the Phase 1 improvements to begin and agrees that sewage discharge from the BVM facility must switch from the East Sewer to the Julien Sewer once the Julien Sewer is completed. BUDGETIMPACT The estimate of probable cost for the Julien Dubuque Drive Sanitary Sewer Improvements, including approximately 1,654 lineal feet of sanitary sewer and 7 manholes, is as follows: Description Cost Estimate Construction Contract $168,649.00 Contingency 16,865.00 Construction Engineering and Inspection 27,827.00 Total Construction Cost Estimate $ 213,340.00 The improvements will be funded using $100,000 in from savings from the $267,569.00 FY19 appropriation for 7101637 [Sanitary Sewer Lining Program] and $140,000.00 in savings from the $263,247.00 FY19 appropriation for 7102720 [30t" & Jackson Sanitary Sewer Project]. RECOMMENDATION I r�comm�nd that the City approve the Sanit�ry S�wer Construction Memorandurn of Agre�mPnt allowing for construction �ctivities to bec�ir� in Phase 1 and est�blishing the conditions ancl rec�uirem�nts of fihe sanitary sewPr extpnsion projects k�y BVM-PHS �nd the City. ACTION TO BE TAKEN I rPsp�ctfully request adoptic>n �f fihe attach�d r�sc�lution appr�ving the Sanitary Sewer Consfirucfiion Memorandum of Ayreement allowing for construction �ctivities to begin in Phase 1 and establishing the cc�nditions and requirements of the sanitary sewer ext�nsic�n pr�j�cts by BVM-PHS and ths City. Pr�pareci by Nate Kieffer, PLS cc: Jenny Larson, Director of Fin�nce & Budget Chris Kiolbasa, Budget M�nager John Klostcrm�nn, Public Works Direc;tor Deron Muehring, Civil Engineer II St�vc Sampson �rown, Project Manager N�te Kieff�r, Lai�d Surv�yor Prepared by Gus Psihoyos, City Engineer, 50 W. 13th St., Dubuque, IA 52001, 563-589-4276 Return to Kevin Firnstahl, City Clerk, 50 W. 13th St., Dubuque, IA 52001, 563-589-4100 RESOLUTION NO. 274-19 APPROVING A SANITARY SEWER CONSTRUCTION MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND BVM-PHS SENIOR HOUSING, INC. WHEREAS, the City of Dubuque is party to a Sanitary Sewer Construction Memorandum of Agreement with BVM-PHS Senior Housing, Inc.; and WHEREAS, per the Memorandum of Agreement, BVM-PHS Senior Housing Inc. would construct a private sanitary sewer extension from the BVM Phase 1 facilities to Julien Dubuque Drive; and WHEREAS, per the Memorandum of Agreement, the City will construct a public sewer from the existing sewer serving Shady Oaks to the private BVM-PHS sewer along Julien Dubuque Drive; and WHEREAS, BVM-PHS Senior Housing, Inc., has executed the Sanitary Sewer Construction Memorandum of Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: The Sanitary Sewer Construction Memorandum of Agreement attached hereto is hereby approved. Passed, approved, and adopted this 5th day of August 2019. 41/ Roy D. Buol, Mayor Attest: eL. Kevin/S. Firnstahl, CMC, City Clerk MEMORANDUM OF AGREEMENT Date: July��t , 2019 This Memorandum of Agreement (this "Memorandum") confirms the mutual intent of BVM-PHS Senior Housing, Inc. ("BVM") and City of Dubuque, Iowa (the "City") with regard to sewer connections and related matters pertaining to the development and construction of Phase I and Phase II of the Mt. Carmel Campus (the "Project") located on property owned by BVM. This Memorandum outlines the terms and conditions of any needed formal written documents that will be formulated and entered into by the parties to this Memorandum. It is anticipated that the parties will prepare and finalize formal documents within 60 days of the date of this Memorandum. 1. Proiect. The Project c;onsists of two phases. Phase I consists of skilled nursing, assisted living and memory care units. Phase II will involve demolishing some of the existing buildings currently located on the Land and constructing independent senior living units in place of the existing buildings. Construction of Phase I will begin immediately upon issuance of a building � permit(the "Permit"). 2. Sanitar Sewer Schedule.Although BVM is confident and has been advised by its engineers that the current sanitary sewer system can accommodate the present and future Project demands and that improvements to the existing sewer system are not needed,BVM will agree to complete and pay the costs associated with design and construction of the improvements outlined in blue from station 1000 + 31.22 to 1022 + 63.81 on the attached E�ibit A by August 1, 2020. The City agrees to complete and pay the costs associated with design and construction of the improvements outlined in green from station 1022+63.81 to 1039+ 17.70 on the attached E�ibit A by August 1, 2020. Each party will own and maintain the improvements they construct. The BVM improvements are not to be used as a public sewer. 3. Easement. BVM will convey to the City an easement for construction, placement and access to the improvements to be completed by the City for new residential property sanitary sewers terminated at the existing public sewer at the northwest corner near the Circle Housing. City will convey to BVM an easeme�nt, or grant title to City owned land, f�r maintenance access from Julien Dubuque Drive. 4. Phase I. In reliance on this Memorandum, the City will issue the Permit for Phase I, and BVM will be allowed if BVM deems necessary to connect the Phase I improvements to the existing sanitary sewer lines that currently service the existing buildings located on the Land. At such time as the new improvements have been constructed, BVM will use the new improvements. City will not use the BVM portion in blue on Exhibit A for discharge of the residential property sewer. 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