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City approves Elm Creek Watershed subgrant agreement to study and fund stormwater projects
Summary
Dayton approved a cooperative subgrant agreement to accept watershed-based implementation funding for studies and construction related to Diamond Lake, Grass Lake and a mobile-home-park drainage study; council vote was 5-0.
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Dayton City Council voted unanimously to accept watershed-based implementation funding through a cooperative subgrant agreement to support several stormwater projects identified in the Elm Creek subwatershed assessment.
Staff said the grant funding, secured through the Board of Water and Soil Resources (BWSR) and administered via the Elm Creek Watershed District, will pay for a set of studies and at least one construction project that staff and the watershed selected from a prior subwatershed assessment.
“The only action tonight is to approve the cooperative and subgrant agreement,” a staff member said while presenting the item, adding that accepting the grant does not by itself commit the city to construction costs beyond what the grant covers. Council then voted to approve the agreement 5 to 0.
Staff listed three projects tied to the funding: a feasibility study addressing stormwater from a mobile-home neighborhood that drains to French Lake; a construction project in a neighborhood north of Diamond Lake that would add structural treatment (staff cited SAFL baffles, a Saint Anthony Falls Laboratory–developed settling device) to capture sediment and salts before discharge to the lake; and a study of Grass Lake to better understand internal loading and pollutant sources. Staff said the watershed’s grant program funds studies at 100 percent and construction portions at a substantial percentage of cost; staff noted the city may be responsible for some local match or monitoring expenses.
On Grass Lake, staff said existing monitoring data are limited and that the city may need two to three years of monitoring to guide management; staff estimated the city’s additional monitoring cost could be roughly $10,000 unless cost-sharing with partners (for example, Three Rivers Park District) can be arranged. On the Diamond Lake neighborhood project, staff described the planned device as a SAFL baffle that “helps settle out the sands and salts” before water reaches the lake.
Staff also briefed council in the same meeting on contracting and change-order practices for capital projects, explaining public-bid thresholds (statutorily required public bids for construction projects above $175,000), common contract types (lump sum, time-and-materials, unit-price), and why change orders sometimes arise from unforeseen conditions, owner-directed changes or plan errors and omissions.
Council approved the cooperative/subgrant agreement by voice vote, 5 to 0. Staff said grant funds are available through 2027; projects and any city match or monitoring costs will return to council for separate approvals as project scopes and costs are refined.

