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HomeMy WebLinkAboutA038 - 219/233 Sondrol Avenue - Sanitary SewerITEM #:41 DEPT:PW October 13, 2026 Staff Report 219/223 SONDROL AVENUE - SANITARY SEWER BACKGROUND: The owner of 219 and 223 Sondrol Avenue, BEKKP LLC, is pursuing a building expansion project. The owner is represented by Renaud Engineering. City staff has been working with the owner over the past several months regarding this project. A key issue in the project is the existence of an active sanitary sewer main running between 219 and 223 Sondrol. The sanitary sewer was installed in 1978 in an established sanitary sewer easement and serves 20 individual properties along Sondrol Avenue. The sanitary sewer is approximately 8 feet deep in the area near the subject properties. The property owner desires to expand the buildings between the existing parcels, which would include constructing over the sanitary sewer easement and active sanitary sewer main. City staff has indicated to BEKKP LLC and Renaud Engineering that construction over the sanitary sewer easement is not desired. Staff has stated that the sanitary sewer and its easement will need to be relocated around the proposed building expansion. There is room on site to allow for the relocation and the elevations for the gravity flow of the sewer are adequate to meet required flow. Staff has recommended the relocation approach for several reasons: The easement was granted to the City to provide access to the sanitary sewer to perform timely maintenance when necessary. Allowing building construction over the sanitary sewer would limit the ability to excavate and repair the sanitary sewer when necessary. The sanitary sewer main serves properties other than where the building expansion is proposed. Those properties could be at risk if the City cannot perform maintenance or improvement activities due to the presence of the building. Past experience with properties where construction was allowed over an active sanitary sewer has resulted in significant costs to the City, including the eventual purchase of affected property. BEKKP LLC does not want to relocate the sanitary sewer due to the soil conditions in the area and the associated cost and time impacts. Sondrol Drive and the adjacent parcels were 1 constructed in an area containing significant fly-ash fill that was placed prior to development in the late 1970s. Soil borings have been performed on the site and found that there is a layer of fly-ash that varies between 5.5 to 8 feet deep. The fly-ash will present challenges in the relocation of the sanitary sewer main. Fly-ash tends to be a very inconsistent material with little to no cohesion, meaning it tends to fall apart easily. Additional precautions and steps will be necessary to ensure stability of any excavations during relocation. In response, BEKKP LLC and Renaud Engineering have developed a detailed proposal to mitigate the risks associated with allowing building expansion over the active sanitary sewer main. The proposal includes potential language included in a draft development agreement. A letter and a copy of the draft development agreement was sent via email to the City Council on September 25, 2026. A brief summary pertaining to the sanitary sewer main is included below: The City would line the existing sanitary sewer with cured-in-place pipe (CIPP) to improve the strength and durability of the pipe. The cost of the lining would be paid by BEKKP LLC. BEKKP LLC would install an 8-inch emergency bypass pumping line through the proposed building. BEKKP LLC would install a high-water sensor and alarm in the downstream manhole to provide notification of a potential sewer backup. The City would perform annual cleaning and televising of the sanitary sewer, the cost of which would be paid by BEKKP LLC. The City would be allowed to remove portions of the building, if necessary, to access the sanitary sewer for maintenance, repair, or replacement, with BEKKP LLC responsible for removal and reconstruction costs. BEKKP LLC would be required to pay additional costs incurred by the City as a result of the building being located over the sanitary sewer in the case that relocation of the sanitary sewer is necessary in the future. BEKKP would sign a waiver of assessment rights. The agreement would run with the land so that future owners are required to follow the mitigation measures noted above. City staff has reviewed the proposal and believes that the City Council should consider whether the mitigation measures and language being suggested is sufficient to address the risks associated with allowing the building expansion over the active sanitary sewer. 2 OPTIONS: OPTION 1: Require the relocation of the sanitary sewer Under Option 1, the City Council would determine that relocation of the sanitary sewer is preferred in comparison with allowing the building expansion over the sanitary sewer. BEKKP LLC would be required to submit engineering plans indicating the location of the new sanitary sewer alignment and submit a plat of survey indicating the new sanitary sewer easement over the relocated sanitary sewer main. Additionally, the new plat of survey would indicate that the existing sanitary sewer easement is to be vacated to allow for expansion of the building. OPTION 2: Direct staff to negotiate a Developer's Agreement with the property owner (BEKKP LLC) Under Option 2, the City Council would determine that the mitigation measures proposed by BEKKP LLC provide a sufficient basis for staff to proceed with development of an agreement that would allow the building expansion over the active sanitary sewer. City staff would work with BEKKP LLC to finalize language for a Developer's Agreement that would be brought back to the City Council for consideration at a future meeting. OPTION 3: Direct staff to negotiate a Developer's Agreement with the property owner (BEKKP LLC) with conditions added by the City Council Option 3 would be similar to Option 2 in that BEKKP LLC would be allowed to expand its building over the top of the active sanitary sewer. The City Council would direct staff to negotiate a Developer's Agreement with the BEKKP LLC, with specific additional requests or responsibilities outlined by the City Council. The Council may desire to have additional risk mitigation efforts added to the agreement. The Council would provide specific direction to staff for incorporation into the Developer's Agreement. STAFF COMMENTS: BEKKP LLC desires to further develop the property at 219/223 Sondrol Avenue and is looking for alternatives to the relocation of the active sanitary sewer that runs between the two properties. A draft development agreement has been presented to the City that is intended to mitigate risk and allow the sanitary sewer to remain in place. Easements are granted to the City so that certain activities benefitting the public can be performed (e.g., installation and operation of a sanitary sewer and ingress/egress to maintain it). In the case of 219/223 Sondrol, the sanitary sewer easement is in place to ensure that there is adequate space for the sanitary sewer main to flow and provide service to adjacent properties. In contemporary practice, the City does not allow permanent structures to be constructed over top of easements or utilities. This prohibition is intentional, as it preserves access for future maintenance and capital improvement activities. 3 One modern exception where construction was allowed in an easement occurred in 2024 at 302 Sondrol, across the street from 219/223 Sondrol. In the 302 Sondrol case, a building expansion was requested over a storm sewer, not a sanitary sewer. Easement language was prepared that included a number of unique provisions including: The building slab be reinforced over top of the storm sewer. The City maintains the right within the easement area to construct, reconstruct, cover over, clean up, operate, use, maintain, and repair the sewer. At the City's sole discretion, it may be determined that the existing storm sewer needs to be relocated from under the building. The property owner is solely responsible for all costs for relocation and abandoning the existing sewer. The City is protected from liability from any damage to the building due to the storm sewer. This easement agreement is binding upon all successors and assigns. Staff permitted the construction over the storm sewer at 302 Sondrol because the consequence of failure in the case of the storm sewer was much less impactful to the adjacent properties. In the event of a failure, water may pond on the road for a short time, but would eventually seek adjacent storm sewer intakes and in a worst case scenario could temporarily be pumped to the adjacent detention area within 300 feet. The majority of the risk is borne by the property owner at 302 Sondrol. In the case of 219/223 Sondrol, the utility in question is a sanitary sewer. The consequence of failure could impact up to 20 properties. The most common mode of failure in a sanitary sewer main is pipe collapse or obstruction. These failures may require that the pipe be readily accessible and excavated in order to be repaired. Additionally, because sanitary sewer is more stringently regulated by the Iowa Department of Natural Resources (DNR) compared to storm water, backups and illicit discharges are required to be reported which impacts the City's collection and treatment permit with the Iowa D N R . The risk with the requested 219/223 Sondrol encroachment extends beyond the subject property to additional properties served by the sanitary sewer and could reflect negatively on the City's compliance with DNR requirements. Many of the conditions proposed by the owner are intended to mitigate these risks by structurally strengthening the existing sanitary sewer main and providing additional bypass piping, monitoring, and cleaning. These measures are proposed to be paid by BEKKP LLC. The draft development agreement also includes provisions that allow the City to remove the building, if necessary, to perform maintenance or capital improvements. While this provision may provide some relief as to the ability to access the sanitary sewer main, staff remains concerned about the practicality and expediency of removing the building if 4 access is necessary for maintenance or emergency repairs. Additionally, if a failure occurs in the future, the property owners, City staff, and City Council members are likely to be different than those involved today. Staff is concerned that the provisions proposed today could prove burdensome in the future, or that a future owner may claim ignorance of the duties imposed in the agreement or the City's rights to enforce it. Similar situations where construction occurred decades ago above sanitary sewer infrastructure have resulted in substantial costs to the City in recent times, including the need to purchase property following failures of sanitary sewer mains and private services. Staff's concern is therefore not limited to the immediate construction proposal, but also the City's ability to access, maintain, repair, and ultimately replace this public infrastructure over the long term, in addition to the expectations that may be placed on the City by a future owner to address any impacts to the private property constructed over the sanitary sewer. If the City Council concurs with staff's concerns regarding long-term access to and maintenance of the sanitary sewer main, it should select Option 1, which would require relocation of the sanitary sewer. If the City Council determines that the mitigation measures proposed by BEKKP LLC sufficiently address these concerns and that the remaining risks associated with allowing the building expansion over the active sanitary sewer are acceptable, Option 2 or Option 3 would be appropriate. Under Option 3, the City Council would identify any additional mitigation measures or conditions it would like staff to incorporate into the proposed developer's agreement. ATTACHMENT(S): 219-223 Sondrol Sanitary Map.pdf Development Agreement - Ames - BEKKP Rev. 09232026(93017786.1).docx Letter to City Council 2026 09 25.pdf 5 Active Sanitary Sewer Main Relocated Sanitary Sewer Route 223 212 M© City of Ames, Iowa makes no warranties, expressed or implied, including without limitation, any warranties of merchantability or fitness for a particular purpose. In no event shall the City of Ames be liable for lost profits or any consequential or incidental damages caused by the use of this map. 1:1,017 219/223 Sondrol Avenue Sanitary Sewer 6 -1- DEVELOPMENT AGREEMENT This Development Agreement (this “Agreement”) is entered into as of the ___ day of ___________________, 2026 (the “Effective Date”), by and between the City of Ames, Iowa, a municipal corporation (the “City”), and BEKKP, LLC, an Iowa limited liability company (the “Company”). WHEREAS, the Company owns certain real property located within the City, as more specifically described on Exhibit A attached hereto (the “Property”); and WHEREAS, the Company desires to connect two existing buildings located on the Property by constructing an approximately 9,000 square foot warehouse building (the “New Building”), as generally depicted on the preliminary site plan attached hereto as Exhibit B (the “Preliminary Site Plan”); and WHEREAS, a sanitary sewer line runs beneath to the proposed location of the New Building, and the City requires continued access to and maintenance of such sanitary sewer infrastructure; and WHEREAS, the City and the Company desire to set forth the terms and conditions under which the Company may construct the New Building, including provisions for a sanitary sewer easement and related maintenance obligations. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Lot Combination. The Company shall, at its sole cost and expense, complete a lot combination, which shall include any required plat of survey necessary to effectuate the same, prior to the commencement of construction of the New Building. 2. New Building Construction. a. The Company shall be permitted to construct the New Building, an approximately 9,000 square foot building connecting the existing buildings on the Property, as generally shown on the Preliminary Site Plan. b. The New Building shall be constructed in compliance with all applicable building codes, zoning ordinances, and other governmental regulations. 3. Floodproofing. The New Building shall be floodproofed in accordance with all applicable federal, state, and local floodplain regulations. The floor elevation of the New Building shall match the existing floor elevations of the adjacent buildings. The New Building shall be floodproofed in lieu of filling the site. 4. Fire Walls. The New Building shall be constructed with fire walls in conformance with applicable building and fire codes such that neither the existing buildings nor the New Building shall be required to be equipped with fire sprinkler systems. 5. Sanitary Sewer Easement. The Company shall grant to the City a sanitary sewer easement (the “Easement”) over, under, and through the portions of the Property necessary for the City’s continued access to and maintenance of the sanitary sewer line, subject to the following terms and conditions: 7 -2- a. CIPP Lining. The City shall arrange for the sanitary sewer line within the Easement area to be lined using cured-in-place pipe (“CIPP”) technology to improve pipe flow, strength, and durability. The City may add this work to its existing CIPP contract. The Company shall reimburse the City for the full cost of the CIPP work within thirty (30) days of receipt of an itemized invoice from the City. b. Emergency Bypass Pump Line. An eight-inch (8”) emergency bypass pump line shall be constructed through the New Building to facilitate bypass pumping in the event maintenance of the sanitary sewer line requires such measures. c. High Water Sensor. A high water sensor shall be installed in the manhole serving the sanitary sewer line within the Easement area, equipped with an alarm system to provide notice to the City of a potential backup condition. The specific type, configuration, and specifications of the sensor and alarm system shall be mutually agreed upon by the parties. d. Annual Cleaning and Televising. The City shall perform annual cleaning and televising of the sanitary sewer line within the Easement area. The Company shall reimburse the City for the reasonable and documented cost of such annual cleaning and televising within thirty (30) days of receipt of an itemized invoice from the City. e. City’s Maintenance Rights. In the event that maintenance, repair, or replacement of the sanitary sewer line requires access that is obstructed by the New Building, the City shall provide the Company with not less than ten (10) business days’ prior written notice (except in the case of an emergency, in which case notice shall be given as soon as reasonably practicable). The City shall use commercially reasonable efforts to minimize disruption to the Company’s operations and shall promptly restore any damage to the Property or the Company’s personal property caused by the City’s exercise of its rights under this subsection, ordinary wear and tear excepted. The City shall have the right, at its election, to exercise any one or more of the following remedies: (i) Remove all or any portion of the New Building as reasonably necessary to access the sanitary sewer line for maintenance, repair, or replacement purposes. The Company shall be solely responsible for all costs and expenses associated with the removal of, and subsequent reconstruction of or repairs to, the New Building, including any related structural, mechanical, or finishing work. The City shall be responsible only for the costs of the maintenance, repair, or replacement of the sanitary sewer line itself; or (ii) Charge the Company for any reasonable and documented additional costs incurred by the City for boring under the New Building or other additional expenses arising from the placement of the New Building over or adjacent to the sanitary sewer line. The City shall provide the Company with an itemized invoice describing such costs within sixty (60) days of completing the applicable work, and the Company shall have thirty (30) days from receipt of such invoice to review the charges and request reasonable supporting documentation before payment is due; or (iii) Charge the Company for any reasonable and documented extra cost of maintenance of the sanitary sewer line attributable to the placement of the New Building. The City shall provide the Company with an itemized invoice describing such costs within sixty (60) days of completing the applicable work, and the Company shall have thirty (30) days from receipt of such invoice to review the charges and request reasonable supporting documentation before payment is due. f. Waiver of Iowa Code Assessment Rights. The Company hereby waives any and all rights it may have under the Iowa Code with respect to the assessment of maintenance charges in the event the Company fails to pay any maintenance costs as outlined in this Section 5. 8 -3- g. Notice and Cure. In the event either party believes the other party has failed to perform any obligation under this Section 5, such party shall deliver written notice to the defaulting party specifying the nature of the default in reasonable detail (a “Default Notice”). The defaulting party shall have thirty (30) days after receipt of the Default Notice to cure the default or, if such default cannot reasonably be cured within thirty (30) days, to commence curing and diligently pursue the same to completion. If the defaulting party fails to cure the default within the applicable cure period, the non-defaulting party may pursue any remedies available at law or in equity, including but not limited to placing a lien on the Property for the amount of any unpaid charges. 6. Insurance and Indemnification. a. Company’s Insurance. The Company shall obtain and maintain, at its sole cost and expense, throughout the term of this Agreement: (i) commercial general liability insurance with limits of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; and (ii) property insurance covering the New Building in an amount not less than the full replacement cost thereof. The City shall be named as an additional insured on the Company’s commercial general liability policy. The Company shall provide the City with certificates of insurance evidencing such coverage upon request. b. City’s Insurance. The City shall maintain such insurance as is customary for Iowa municipalities performing utility maintenance activities, including coverage for damage to private property arising from the City’s maintenance of the sanitary sewer line. c. Indemnification. Each party (the “Indemnifying Party”) shall indemnify, defend, and hold harmless the other party and its officers, employees, and agents from and against any and all claims, damages, losses, costs, and expenses (including reasonable attorneys’ fees) arising out of the Indemnifying Party’s negligence or willful misconduct in connection with its performance under this Agreement. This indemnification obligation shall survive the termination or expiration of this Agreement. 7. Compliance with City Ordinance. The Company shall comply with all applicable City ordinances, including but not limited to building code requirements, site plan approvals, flood certifications, and all other applicable permits and approvals required in connection with the construction and use of the New Building. 8. General Provisions. a. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Iowa. b. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, warranties, commitments, offers, and contracts, whether written or oral. c. Amendment. This Agreement may not be amended or modified except by a written instrument signed by both parties. d. Notices. All notices required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, or three (3) business days after being sent by certified mail, return receipt requested, postage prepaid, to the addresses set forth below or to such other address as a party may designate by written notice to the other party: 9 -4- If to the City: City of Ames, [Address], Ames, Iowa [ZIP], Attention: [___________] If to the Company: BEKKP, LLC, [Address], [City], Iowa [ZIP], Attention: [___________] e. Binding Effect; Covenants Running with the Land. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. The obligations of the Company under this Agreement, including but not limited to the Easement and the payment obligations set forth in Section 5, shall constitute covenants running with the land and shall be binding upon all subsequent owners, successors, assigns, lessees, and transferees of any interest in the Property. f. Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. g. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. The City and the Company have caused this Agreement to be signed, in their names and on their behalf by their duly authorized officers, all as of the day and date written above. CITY OF AMES, IOWA By: Mayor Attest: City Clerk BEKKP, LLC By: Its: 10 -5- EXHIBIT A DESCRIPTION OF THE PROPERTY [Legal description of the Property to be inserted.] EXHIBIT B PRELIMINARY SITE PLAN 11 -6- 12 -7- 13 September 25, 2026 Honorable Mayor & City Council City of Ames 515 Clark Avenue Ames, Iowa 50010 RE: Proposed Developers Agreement between the City of Ames and Quick Performance 219 and 223 Sondrol Avenue, Ames, Iowa Mayor & Council: On behalf of Quick Performance, we are requesting Council consideration of the attached Developers Agreement. The City Staff have been unwilling to allow Quick Performance to connect 219 and 223 Sondrol without approval of the City Council. The principal issue is building over the City’s sanitary sewer easement between the two properties. Public Works has been reluctant to allow a building over the public sanitary sewer. Quick Performance, as outlined in the Developers Agreement, is adding provisions to a new sanitary sewer easement to eliminate Public Work’s concerns. A little background on Quick Performance: Quick Performance is one of the leading manufactures of drivetrain rearends, parts and components, not only in the country but worldwide. They produce complete rear axle assemblies for all sorts of applications, from 4000HP drag cars, hot rods, off-road and daily driven applications. Quick Performance started in Gilbert, Iowa in 1984 by Doug DeMoss. The current owner, Brydon Papenberg, started working at Quick Performance in 2001 during his four years of attending Iowa State University. In 2007 Quick Performance moved into their first location on 303 Sondrol. Mr. Papenberg took over ownership in 2014 with approximately 14 employees. At the present time Quick Performance now has 90 employees, 8 buildings on Sondrol, a shop & warehouse in Gilbert, two properties with five buildings on East Lincoln Way, and a machine shop in Hiawatha, IA. Quick Performance continues to grow and with this growth comes the need for more space and accommodations. Quick Performance wants to keep their operations centered on Sondrol Avenue in Ames. The Developers Agreement outlines the work that needs to be done to allow for building over the City’s sewer. It has Quick Performance paying for preventative maintenance of the sewer line. The sewer line only serves Sondrol Avenue and will never be extended to buildings outside of Sondrol Avenue. Most significant excavation, if required, would be at manholes that are in the public right of way and do not need an easement. The developer’s agreement outlines considerable improvements to the existing sewer easement. All maintenance costs are Quick Performance’s and not the City. The mechanism for Quick Performance’s payment of those costs is included in the agreement and will be in the final sanitary sewer easement. Quick Performance has reviewed all the alternatives available to reroute the sewer but finds this enhanced easement to be the most attractive of all the options. Having more integrated warehouse 14 space on Sondrol is the best solution for Quick Performance’s ability to expand quickly and maintain its operations in Ames. Thank you for your time and consideration. We look forward to completing this work quickly as Quick Performance would like to build as soon as possible. Sincerely, Scott Renaud Scott Renaud, P.E. Renaud Engineering LLC Cc: City of Ames – Managers Office, Public Works Department, Planning Department Brydon Papenberg, Quick Performance Ryan Haaland, Attorney for Quick Performance Dylan Kline, Ames Regional Economic Alliance 15