4.d) Discussion of Maintenance Contract Meeting Date: 11/08/2011
� Agenda Item: L�! ,/ �
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City Council Agenda Report
City of Scandia
14727 209`h St. North
Scandia, MN 55073 (651) 433-2274
Action Requested: Discuss the status of the contract with Washington County for operation
and maintenance of the 201 collector system.
Deadline/ Timeline: Current 2-year contract expires at the end of December, 2011.
Background: • The county has offered the city a new, 2-year contract for operation of
the sewer system. It is similar to previous such agreements with a
couple of exceptions.
• The new agreement includes changes to the indemnity language
(Section IV, on page 4) that is of great concern. Essentially, it relieves
the county of all liability for its own acts regarding the contract. Staff
has been discussing this with the city attorney, our insurance agent,
county staff and representatives of the League of Minnesota Cities
Insurance Trust (LMCIT.) So far no resolution to this issue has been
reached.
• The agreement also includes a 30-day termination clause for the
operation of the Anderson/Erickson portion of the system. The city
will eventually need to find a contractor to operate this portion of the
system. The county will soon be regulating the system through its own
permit and, their continued operation of the system would be a conflict
of interest.
• The draft includes a 180-day termination clause for the remaining
(Bliss) portion of the system, as in previous contracts.
Recommendation: The Council should discuss the changes to the contract and whether or not
it will be acceptable in the event the county refuses to make changes to the
indemnity clause. You should also discuss the termination clauses and
whether or not a shorter notice for termination of the entire contract might
be appropriate.
Attachments/ • Proposed Maintenance Contract for 201 Collector System, 2012-2013
Materials provided: • Letter dated October 25, 2011 from C&B Excavating
Contact(s):
Prepared by: Anne Hurlburt, Administrator
(201 contract)
Page 1 of 1
11/03/11
W���t�n Department of Public
Health and Environment
��0�� Lowell Johnson
Director
Sue Hedlund
October 6, 2011 Deputy Director
Anne Hurlburt, City Administrator � �����=�����-�v�
City of Scandia
14727 209�' Street North � ! ' . ,
Scandia, MN 55073 j
� CITY UF SCr11\�DiA _�
RE: Maintenance Contract for the 201 Collector System
Enclosed is the proposed 2012-2413 Agreement between the City and the County for the operation
and maintenance of the 201 Collector Systems—Bliss Addition and Anderson/Erickson.
Please note the following changes:
1. Section III. Payment for Services (1): Adjustment to hourly rate. The rate for 2012 and
2013 will decrease from $103 to $100 an hour.
2. Section IV. Indemnity: Changes to indemnity language.
3. Section IX. Term of the Agreement: Termination language for the operation and
maintenance of the Anderson/Erickson 201 System given the need for the City to identify and
contract with a new service provider for that system. This is based on the new requirement
for the County to issue an operating permit for that system. The Bliss 201 System is under a
state permit and is not subject to regulation by the County.
Please review and, if everything is satisfactory, sign the enclosed contract and return it to the County,
directed to my attention, for processing. A fully executed contract will be mailed to you after all
signatures are secured.
The County looks forward to our continued service to the CiTy of Scandia. Please contact Assistant
Cou.nty Attorney Richard Hodsdon at 651-430-6119 if you have any questions about the
indemnification language or myself at 651-430-6744 with general contract questions.
Sincerely,
}�.�. ����
Amanda Strommer, REHS
Program Manager
Cc: Richard Hodsdon, County Attomey's Office
Maura Shuttleworth, County Attorney's Office
Pete Ganzel, Sr. Environmental Specialist
Government Center • 14949 62nd Street North—P.O. Box 6, Stitlwater, Minnesota 55082-0006
Phone: 651-430-6655 • Fax: 651-430-6730 • TTY: 651-430-6246
Service Centers also located in Cottage Grove and Forest Lake
www.co.washinqton.mn.us
Equal Employment Opportunity/Affirmative Action
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Div. �T C-
Term �I�{l� - I�13F ��
Community Wastewater Treatment System
Operation and Maintenance Agreement
This Agreement is made and entered into by and between Washington County, hereinafter
refened to as the "CounTy" and the City of Scandia, hereinafter referred to as the "City".
Whereas, under the Washington Couniy "201" Sewer Use Ordinance, the incorporated
community (the City) in which the treatment system is situated is responsible for operation,
maintenance and replacement of all publicly owned components of the community sewage
treatment system; and
Whereas, the City desires to contract with the County for the performance of routine operation
and maintenance of the community wastewater treatment system (hereinafter referred to as the
"201 system") owned by and under the jurisdiction of the City; and
Whereas, the County agrees to render such operation and maintenance services on the terms and
conditions hereinafter set forth; and
Whereas, such Agreements are authorized and provided by Minnesota Statute 471.59;
Now Therefore, in consideration of the mutual promises contained herein, it is mutually agreed
between the County and the City as follows:
Section I. Counly's Responsibilities
1. The County agrees to provide,through its Department of Public Health and Environment,
201 system operation and maintenance for Bliss and Anderson/Erickson systems within
the corporate limits of the City to the extent and in the manner set forth in this section.
2. The County will provide routine operation and maintenance of the existing 201
wastewater treatment system in accordance with the approved Operating and
Maintenance Manual for the system and as anticipated and planned for in the annual
operating budget as adopted by the City Council. Routine operation and maintenance as
provided in this contract specifically excludes decisions or actions regarding 201 system
upgrade, expansion of use andlor replacement of the system.
The most recent agreed upon version of the Operating and Maintenance Manual for the
system is incorporated herein by reference. Further,the parties by mutual agreement may
modify or update said manual with the new version then being automatically incorporated
herein without the need to otherwise amend this agreement.
3. In providing such routine operation and maintenance, the County will provide staff,
equipment and other supplies and materials as may be needed to conduct such routine
operation and maintenance. The standards of performance, method of providing services
and other matters incident to the performance of operation and maintenance services
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under this Agreement, including personnel to be employed, shall be determined by the
County except to the extent that specific operating policies and procedures have been
adopted for the 201 system.
4. The County can expressly subcontract pumping services and/or routine maintenance and
repair to the 241 system (such as excavating services, pump or tank repair, repair to lift
stations and collection lines) as necessary to fulfill its obligations under this Agreement.
As part of an agreement with any subcontractor under this paragraph, the County will
require vendors, at a minimum, to provid e insurance coverage in an amount equal to the
county's liability limits set forth in Minn. Stat. Chapter 466 and the worker's
compensation requirements in Minn. Stat. Chapter 176. Vendors are to agree, as a
condition subsequent, to increase the required insurance coverage as the liability limits in
Minn. Stat. 466.04 increase. The county may set higher limits than those set forth in
Minn. Stat. Chapter 466 for contracts in which the exposures/risks generated are
significantly higher.
In instances where a vendor can only provid e lesser limits of coverage, the County may
accept these limits, realizing there is additional exposure to risk. There are also occasions
where the services provided by vendors expose the county to very little risk, and the
insurance requirement may be waived in part or entirely. However, in cases where lower
insurance limits are sought or a waiver of insurance requirements is requested, all such
requests shall be made in writing to the county's Risk Manager in Human Resources for
approval. Such a request shall be made prior to having the County Attorney's Office
sign the contract as to form. If liability insurance requirements are waived, a workers
compensation insurance requirement must still be in the contract.
5. The County will prepare an annual proposed budget for the 201 system operation and
maintenance and present such proposed budget to the City each year, by November 30,
for the following year of operation.
6. Following the policies and procedures established by the City, the County will prepare
annual charges to be assessed to the residents on the 201 system. These charges, along
witli the documentation by which the charges were determined, will be submitted to the
City Clerk on a time schedule determined by the City.
7. In the event that the 201 system requires maintenance and/or repair which will result in
expenditures beyond that which has been approved by the City in its annual budget, the
County will contact the City in advance of authorizing and/or proceeding with such
repairs. Emergency repairs will be managed in accordance with the operating policy
mutually developed between the County and the City.
8. The County will submit, on behalf of the City, all reports required by the MPCA under
the SDS permit for the 201 system. The County will provide timely reports to the City on
individual maintenance, repair or emergency incidents. The County will also provide an
annual operating, maintenance and repair report to the City together with an assessment
of the overall status of the 201 wastewater treatment system. Such annual report sha11 be
made by February 1 of each year for the prior operating year.
9. The County will cooperate with the City's officials and/or employees (including
engineering staffl in fulfilling its obligations under this Agreement.
Section II. City's Responsibilities
l. The City, its officers, agents and employees, will cooperate and assist the County in the
performance of this Agreement.
2. The City will provide policy and procedural direction for the operation and maintenance
of the 201 wastewater treatment system and will communicate such policies and
procedures to the County through written notice to the County along with copies of said
policies and procedures as adopted and/or revised.
3. The City specifically authorizes the County to subcontract, on its behalf, for services to
be provided by the County under the provisions of this Agreement.
4. The City will be responsible for approving the budget for 201 system operation and
maintenance and for advising the County of its budget decision. The City, at its sole
discretion, will be responsible for determining the type of and/or amount of any
replacement fund for its 201 system.
5. The City will approve any maintenance andlor repairs to the 201 system which, in the
County's estimation, will exceed the budget established by the City. Such approval shall
be in advance of the County's proceeding with repair and/or maintenance except that
emergency repairs will be made in accordance with the operating policy mutually agreed
to between the County and the City.
6. The City will be responsible for determining, through its engineering firm or its own
consultants,the amount of available capacity for expanded use of the system.
7. The City will be responsible for making decisions regarding upgrade, expansion of use
andlor replacement of the 201 system. Such decisions include the issuance of building
permits and review of variances for new construction which would be connected to the
201 system and/or expansion of existing homes which are currently on the 201 system.
8. The City will approve annual billings to residents on the 201 system and will send such
bills to the residents on City letterhead. The City will be responsible for collection of all
annual billings to residents.
9. The City shall maintain and be responsible for its 201 system monetary fund.
10. The Parties agree that this agreement is strictly for the benefit of the City and no benefits
from this Agreement, third-party or otherwise, will inure to the individual residents of the
City.
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Section III. Payment for Services
1. The City agrees to reimburse the County for its expenses related to the services provided
under this Agreement. Reimbursement for staff personnel time shall be $100.00 per
hour for the calendar year 2012; and $100.00 per hour for the calendar year 2013.
Mileage will be reimbursed at the current County reimbursement rate to its employees as
determined annually by the Washington County Board of Commissioners.
2. The City agrees that it shall bear the sole responsibility for the cost of any necessary
replacement motors, parts and related labor, subcontractor costs, and utilzties necessary
for operation and maintenance of the 201 system and all expenses in excess of staff costs
and mileage expense.
3. Quarterly,the County shall submit its actual expenses to the City for reimbursement. The
. request for payment shall be accompanied by an explanation of the charges. Charges
shall be submitted in April (for the period from January 1 to March 31), in July (for the
period from April 1 through June 30), in October (for the period from July 1 to
September 30) and in January (for the period from October 1 to December 31 of the
previous year).
4. The City shall pay the County's invoices within forty-five (45) days of receipt, except for
those individual invoice items where a legitimate question exists. In such cases, the City
will pay all unquestioned amounts in the time specified above, while the parties agree to
work in good faith to resolve any billings in question.
5. At the end or termination of this Agreement, the City will pay all reimbursable expenses
incurred by the County in performance of this Agreement up to and including the final
date of the effective date of the Agreement.
Section IV. Indemnity
The County, its oificers, agents, and employees shall not be liable for any intentional or
negligent acf of the City or any officer, agent or employee of the City and the City agrees to hold
the County, its officers, agents, and employees harmless from any intentional or negligent act of
the City or County or any officer, agent or employee of such City or County and the City agrees
to defend the County, its officers, agents or employees from any claim for damages resulting
from the negligent or intentional act of the City or County, or any officer, agent or employee of
the City or County.
Section V. Nondiscrimination
During the performance of this Agreement, the County agrees to the following:
No person shall, on the grounds of race, color, religion, age, sex, disability, marital status, public
assistance status, criminal record, creed or national origin be excluded from full employment
rights, participation in, be denied the benefits of or be otherwise subjected to discrimination
under any and all applicable Federal and State laws against discrimination.
Section VI. Records—Availability and Retention
Pursuant to Minnesota Statute 16C.05, Subd 5., the County agrees that the City, County, the
State Auditor, or any of their duly authorized representatives at any time during normal business
hours and as often as they may reasonably deem necessary, shall have access to and the right to
examine, audit, excerpt, and transcribe any books, documents, papers, records, etc. which are
pertinent to the accounting practices and procedures of the County and involve transactions
relating to this agreement. The County agrees to maintain these records for a period of six years
from the date of termination of this Agreement
Section VII. Data Privacy
All data collected, created, received, maintained or disseminated for any purposes by the
activities of the County because of this Agreement is governed by the Minnesota Government
Data Practices Act, Minnesota Chapter 13, as amended, the Minnesota Rules implementing such
Act now in force or as adopted, as well as Federal Regulations on data privacy, including but not
limited to, the Health Insurance Portability and Accountability Act (HIPAA) where it applies.
The County agrees to abide by these statutes, rules and regulations and as they may be amended.
Section VIII. Firearms Prohibited
Unless specifically required by the terms of this Agreement,no provider of services pursuant to
this Agreement, including but not limited to employees, agents or subcontractors of the County
shall carry or possess a firearm on county premises or while acting on behalf of Washington
County or the City pursuant to the terms of this Agreement. Violation of this provision shall be
considered a substantial breach of the Agreement; and, addition to any other remedy available
under law or equity. Violation of this provision is grounds for immediate suspension or
termination of this Agreement.
Section IX. Term of the Agreement
1. This Agreement shall be effective on January 1, 2012. Unless sooner terminated as
provided herein, this Agreement shall terminate on December 31, 2013. This Agreement
shall not be self-renewing; however, the Parties may renew this agreement beyond the
December 2013 expiration date, subject to agreement to extension of the agreement, in
writing, by each of the Parties.
2. Due to the changes to MN Rules 7080-7083 and County Ordinance #179,the County will
be issuing an operating permit for the Anderson/Erickson 201 System. The County will
phase out operation and maintenance of the Anderson/Erickson 201 System. The City
will seek professional services necessary for operation and maintenance of the
Anderson/Erickson 201 System. Both parties agree that after a suitable vendor is
acquired the agreement to operate and maintain the Anderson/Erickson 201 System will
5
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be terrninated within 30 days of written notice by the City to the County that the City has
acquired a contractor for the Anderson/Erickson 201 System. This agreement will still
apply to the operation and maintenance of the Bliss 201 System unless the City
determines to terminate the entire agreement per item 4 below.
3. It is understood that this Agreement contains the entire Agreement between the County
and the City and that any statement, promises or inducements made by any Party hereto,
or officer, agent, or employee of either Party hereto, which is not contained in this written
Agreement shall not be valid and binding; and this Agreement may not be enlarged,
modified or altered except in writing signed by each of the parties hereto. �t is expressly
understood between the Parties, and this understanding shall be considered in interpreting
the provisions of this Agreement, that upon notice given by any Party hereto, later
negotiations may be undertaken for the purpose of revising, adding to or striking any
provision of this Agreement which appear unworkable or insufficient to perfect, maintain
and insure the purpose of this Agreement. Any change of the original provisions of this
Agreement shall be written, signed by both parties and attached to this Agreement as
provided above and this later revision, addition or deletion shall only apply to the
provision revised, added or deleted and the remainder of this Agreement shall remain in
full force and effect.
4. This Agreement may be terminated at any time and with or without cause by either Party
by providing one hundred eighty (180) days written notice to the other Party of intent to
terminate.
Section X. Severability
Every section,provision or part of this Agreement is declared severable from every other section,
provision or part thereof to the extent that if any sections, provision or part of this Agreement
sha11 be held invalid by a court of competent jurisdiction, it shall not invalidate any other section,
provision or part thereof.
In Witness Whereof, the City has caused this Agreement to be signed by its Mayor and attested
to by its Clerk, and the County has caused this Agreement to be signed by the Chair of its Board
of County Commissioners and attested to by its County Administrator. For purposes of
administering this Agreement, the County contact shall be Amanda Strommer, Program Manager
or her designee; and the City contact shall be Anne Hurlburt, Administrator or her designee.
For the City of Scandia For the County of Washington
Mayor County Board Chair
Date Date
City Clerk County Administrator
Date Date
Approved as to Form
�
Assistant Washington County Attorney
7
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16115 Quality Trail North Scandia, MN 55073
(651) 433-3986 FAX (651) 433-4481
COMPLETE SEPTIC SYSTEM SERVICES
�nstallation�Tank Pumping•Line Cleaning•Pump Repairs•Compliance Inspections
Frozen Seweriines Thawed•Ground Thawing �Basement/Driveway Excavation•Hauling
MPCA CERTIFIED LICENSE #484 BONDED•INSURED
�����K �E�
�GE � � ��1 I
OCTOBER 25, 2011
CITY OF SCANDfP,
CITY OF SCANDIA COUNCIL NIEN�ERS:
WE CURRENILY HOLD hiE 201 MAINTENANCE CONTRACT WITH WASFiINGTON COUMY. UNDER
THE NEW LAW STARTING FEBRUARY 2012, A SERVICE PROVIDER LICENSE WOULD BE
REQUIRED TO PERFORM T}� DUTIES UNDER A MAINTENANCE CONTRACT.
WE HAVE HE�LD THE FOLLOWING LICENSE FOR APPROXIMATELY 20 YEARS:
INSPECTOR, Pl�1PER, INSTALLER, DESIGNER, AND PLU�BER
WE ARE SCHEDULED TO ATTFJVD THE SERVICE PROVIDER CLASSES 1}iE FIRST WEEK IN
MAY 2012 WITH MINNESOTA POLLUTION CONTROL AGENCY.
AT THE CURRENT TINE, WE ARE WORKING UVDER PETE GANZEL'S (WASHINGTON COUNTY
INSPECTOR) SERVICE PROVIDER LICENSE. WE DID SPEAK WITH MR. GANZEL ABOUf
COfVfINUING TO V+�RK UNDER HIS LICEhSE FOR A COUPLE OF MOMNS IAVTIL SCHOOL.ING
WAS CONPLETED IN MAY. THAT WAS FINE WITH HIM.
IF YOU ARE IM-ERESTED IN CONSIDERING OUR SERVICES FOR THE MAINTENANCE
CONTRACT, PLEASE FEEL FREE TO CONTACT US.
ERELY(�/��
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. Y CHRISTIAIVSEN
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P�PCA Certified�Licensed�Bonded•Insured