Private development projects include the installation of public water infrastructure owned and operated by the Shakopee Public Utilities Commission (SPU) within City right-of-way. Currently, both the City and SPU provide construction observation for its public infrastructure installed in the right-of-way, often simultaneously. This redundancy can lead to confusion as to who is responsible for decision making, but also increases cost and resources for both agencies due to inefficiencies in the construction inspection. 

City and SPU staff propose to modify the current approach by utilizing a single agreed upon consultant to provide complete construction inspection services for both City and SPU public infrastructure within the right-of-way. The Construction Cooperation Agreement establishes the roles, processes, and fees to be collected for the shared construction services. 

The Agreement specifies that if the City provides construction inspection services of SPU infrastructure, the City will increase its Private Development Watermain Fee by 3.5% of the water infrastructure costs to cover the City's increased effort for inspection. In return, SPU will decrease its fees collected by the same percentage resulting in a no-net change of fees for services. The Private Development Watermain Fee is included in the City's adopted fee schedule. If approved, Ordinance O2024-005 will amend the City's Fee Schedule allowing the City to collect the additional fees consistent with the Agreement.