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Horace reviews Veterans Boulevard MOU with Fargo and an amended sewer agreement outlining a second Fargo connection
Summary
Council reviewed a draft MOU with Fargo on paving Veterans Boulevard and discussed an amended sewer agreement that adds a second connection point to Fargo, cost-sharing, ownership of meter stations and a $3.71/1,000-gallon treatment rate; staff stressed funding options and timing.
Council members reviewed two interrelated proposals May 27: a draft Memorandum of Understanding (MOU) with the City of Fargo for phased paving of Veterans Boulevard (57th Street) and a proposed amended wastewater-treatment agreement that identifies a second HoraceF0Fargo connection point and lays out cost responsibility.
On the Veterans Boulevard MOU, staff said Fargo would lead paving for some segments (notably 64th to 76th) and Horace would lead others (roughly 76th to 83rd); final paving triggers depend on plat approvals in each city. The draft also covers maintenance, limited-access classification, street lighting coordination and rural-section pavement-reconstruction terms; council members asked staff to refine the draft and return for formal action.
On wastewater, Jim and other staff described a plan to add a second connection point near 45th Street (Connection 0.2) to relieve capacity constraints at the existing Deer Creek (Connection 0.1), which is capped at 800 gallons per minute. The draft agreement would make Horace responsible for design and construction of lift stations, force mains and odor-control equipment to the meter pit, while Fargo would own and maintain meter stations and certain downstream infrastructure. Staff said Horace has already paid $422,825.69 for initial Fargo upgrades and that a proposed upgrade to Lift Station 62 (downstream) was approximately $449,547.50 and not yet invoiced.
The draft sets a treatment charge of $3.71 per 1,000 gallons for flows conveyed to Fargo (fixed through 12/31/2026, with adjustments thereafter), and includes a surcharge mechanism for exceedances of instantaneous peak flow. Staff said Horace currently uses roughly 23.7% of the Deer Creek capacity on a recent month and that building a second tie-in could cost multiple millions of dollars (staff estimated above $5,000,000 for some infrastructure). Council members raised timing, fairness and funding concerns; staff noted diversion-settlement dollars and sewer-CIP funds have been set aside to avoid special assessments where possible.
Staff will prepare exhibits and maps and bring refined draft agreements and funding impacts back to council for later consideration.
