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HomeMy WebLinkAbout9F - Inflow/Infiltration Control Program ~ CITY COUNCIL AGENDA REPORT SUBJECT: JUNE 15, 1998 9F GREG ILKKA, DIRECTOR OF PUBLIC WORKSICITY ENGINEER CONSIDER APPROVAL OF RESOLUTION 98-XX APPROVING AN INFLOWIINFIL TRA TION CONTROL PROGRAM LOAN AGREEMENT BETWEEN METROPOLITAN COUNCIL AND THE CITY OF PRIOR LAKE AND AUTHORIZING HOWARD R. GREEN COMPANY TO IMPLEMENT THE PROGRAM. DATE: AGENDA ITEM: PREPARED BY: DISCUSSION: HISTORY At the February 2, 1998 Council meeting the Council authorized submittal of an application for a matching loan for an infiltrationlinflow control project to establish a sump pump inspection program. Through certification and follow-up inspections over a five year period, the loan may be forgiven as long as it is determined that significant quantities of inflow and infiltration have not been returned to the system. The application was submitted and on April 6, 1998, the Metropolitan Council notified the City that the application had been approved. CURRENT CIRCUMSTANCES The attached agreement outlines the terms of the matching loan. Exhibit A of the agreement outlines the project activities and scope. Reduction of III is important as it postpones costly facility upgrades that are needed to expand capacity. By freeing up the existing capacity that III is using, MCES rate increases can be postponed until the upgrades and expansions are truly needed. The City's system benefits by reducing the number of hours the pumps in our 29 lift stations run, thereby extending the life of the pumps and reducing our daily electrical expenses. 162~~~reek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER , ,;;,r The communities of Savage, Farmington, and Plymouth . have recently undertaken successful and cost effective Sump Pump Inspection programs. Final results of the Savage and Plymouth programs are not in yet, but Farmington has avoided over $700,000 in wastewater treatment costs since 1993 on an investment of $90,000. During the MCES solicitation phase Howard R. Green Company was asked to prepare a proposal for the City of Prior Lake and to determine the potential benefits to the City. A complete copy of the proposal is available in the City engineering department. The proposed sump pump inspection program would include three components: ordinance review and recommended revisions if needed, communication / education, and the actual physical inspections with documentation. A copy of the "Recommended Project Approach" section from Howard R. Green's proposal is attached to this report. First, Howard R. Green Company will review Title 9 of the City Code and recommend any revisions they feel are needed. Title 9 (9-5-15) currently prohibits the discharge of "any roof, storm, surface, or ground water of any type or kind" into the municipal sewer system. Title 9 (9-5-18) further provides for entry upon private property "for the purpose of inspection, observation, measurement, sampling and testing" in connection with the operation of the sewer system. The communication and education will combine public information meetings, local access cable, printed brochures and newsletters, press releases, and paid advertising to communicate with residents and business owners the benefits of the program to the community. During this phase methods of correcting cross connected systems will also be illustrated and communicated to residents. The physical inspections will begin sometime after the communication/education phase. The inspections entail entering each home, determining if there is a sump pump or pumps and inspecting the pump(s) for a proper discharge connection. Initially inspectors will go door to door in an effort to inspect as many homes as possible without making SUMPAG.DOC appointments. After that they will leave door hangers requesting the homeowner call a special sump Rump inspection number to schedule an appointment. Each inspection is documented and provided to the City in a database. The inspector will discuss with those homeowners who are discharging into the sanitary sewer methods of correcting cross connected systems including where to appropriately discharge the sump pumps in both summer and winter. The inspector will then encourage the homeowner to call for re-inspection once their system is in compliance. After 30 days Howard R. Green staff will follow- up to schedule a re-inspection if the homeowner does not call first. Howard R. Green Company has experienced inspectors who understand the importance of courtesy and respect to the homeowner. Included in the proposal is a section which outlines "Benefit. and Potential Savings". The recommended program consists of two phases with the first phase budgeted for $80,050 (50% MCES Loan to Grant). This fee includes the following services: Communication/Education Components 1,950 Residential Inspections 55 Non-Residential Inspections 255 Re-inspections Documentation This first phase will concentrate on the low lying areas and particularly the development surrounding the lakes. The avoided costs in wastewater treatment are conservatively estimated at $31,200/year from Phase 1. This figure is derived from the estimate of 24 MG(million gallons) per year of clear water from the sump pumps addressed in Phase 1, times the City's treatment cost of approximately $1300/MG. At this rate phase 1 project payback would be just over 2-1/2 years. If a phase 2 were pursued at roughly the same cost, and sump pump discharges were eliminated throughout the entire City it is estimated that we could avoid treatment costs up to $54,163 per year by the elimination of an additional 17 MG per year. The potential exists for even greater cost avoidance based on our 1993 and 1997 experiences. When wastewater flows from those wet years are compared to an adjusted (for SUMPAG.DOC SUMPAG.DOC ~:Ji*c J& . !iiOil:>~ .c, . population growth) drought year (1988), it is estimated that in 1993 clear water contributed up to $94,250 in wastewater treatment costs, and in 1997, up to $83,460. This cost avoidance to the City would be real. Sewer and water billings to residents are based on water usage measured at the water meter. We have no way of knowing how much is going out the sanitary sewer, it is not metered at the home. However, the total flow out of the City is metered by the MCES. The City is billed by the MCES for the flow that exits the City based on their meter. Everyone on City services is paying for the treatment of clear water pumped into the sanitary sewer system by cross connected sump pumps. ISSUES Some residents may perceive a sump pump inspection program as an invasion of privacy. Although there will be those who will consider this another "Big Brother is Watching" government program, it has been Howard R. Green's experience in Cities where they have implemented the program that these homeowners have been such a minor percentage it is not an issue. In Savage they had difficulty with 5 homeowners out of 5000 inspections and in Plymouth they had less than 20 out of 18,000. This is most likely due to the public education and communication efforts which is the first and most essential step of the program. One option that might avoid making homeowners angry would be in lieu of having the City inspect their property, they may furnish a certificate from a licensed plumber certifying that their system is in compliance. The vast majority of people are willing to take steps needed to reduce City, and therefore their own costs. Enclosed with this report is the Howard R. Green Company's outline of a sump pump inspectors typical duties and directions. This document outlines the guidelines under which their inspectors will conduct themselves during inspections. CONCLUSION Based on recorded wastewater flows during "wet" periods the Metropolitan Council is of the opinion that the City has . .;j, :. .iiII Ui:~;J~...;",,~ ~c'~'..-"I jji _ .t ia1 ,~i;i;i-"-lilIIUl"'."'-iIL.i.'.1i. ~ ;J~ FISCAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: SUMPAG.DOC considerable inflow and infiltration. One source of this can be attributed to sump pump cross connections in homes and. businesses throughout the City. The MCES has offered the City a $40,000 matching loan to conduct a sump pump inspection program. Through certification and follow-up inspections over a five year period, the loan may be forgiven as long as it is determined that significant quantities of inflow and infiltration have not been returned to the system. Staff recommends approval of the agreement. The 1997 cost for wastewater treatment was $753,192. The 1998 budget is $792,515 based on projected flows of 570 million gallons. Howard R. Green Company proposes to perform Phase I. of this program for a fee of $80,050, contingent upon MCES approval of our loan application. The MCES loan would pay 50% of the proposed fee. The matching funds would come from the Sewer and Water fund which has $20,000 budeted in 1998 to address issues related to infiltration and inflow. The 1999 budget will provide the remaining matching funds and address inflow and infiltration issues related to low manholes around the lake. The alternatives for the Council to Consider are: 1. Approve Resolution 98-XX approving an inflowlinfiltration control program loan agreement between Metropolitan Council and the City of Prior Lake and authorizing Howard R. Green Company to implement the program. 3. Table this Agenda item for a specific reason. 4. Deny this Agenda item for a specific reason. Motion and second to approve Resolution 98-XX approving an Inflowllnfiltration Control Program Loan Agreement between Mitro olitan Council and the City of Prior Lake, authorizing th . City Manager to execute the agreement on behalf of t City, and authorizing Howard R. Green r J. ~ any t mplement the program, {; .> RESOLUTION 98-XX A RESOLUTION APPROVING AN INFLOW/INFIL TRA TION CONTROL PROGRAM LOAN AGREEMENT BETWEEN METROPOLITAN COUNCIL AND THE CITY OF PRIOR LAKE AND AUTHORIZING I-fOWARD R. GREEN COMPANY TO IMPLEMENT THE PROGRAM. MOTION BY: SECOND BY: WHEREAS, infiltration and inflow of clear water into the Prior lake sanitary sewer system by way of cross connected sump pumps costs the City thousands of dollars of unnecessary treatment costs each year, and WHEREAS, the Metropolitan Council Environmental Services Division has offered a matching loan to implement a sump pump inspection program that will reduce infiltration and inflow into the metropolitan disposal system, and WHEREAS, the City of Prior lake can significantly reduce wastewater treatment costs by reducing infiltration and inflow into the sanitary sewer system by establishing a sump pump inspection program. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, the City Manager is hereby authorized to execute the Inflow/Infiltration Control Program Loan Agreement between the Metropolitan Council and the City of Prior lake. BE IT FURTHER RESOLVED, the Howard R. Green Company is hereby authorized to implement a sump pump inspection program for the City for a fee not to exceed $80,050, to be funded from the Sewer and Water operating budget. ' Passed and adopted this 15th day of June, 1998. YES NO I Mader Kedrowski Petersen Schenck Wuellner Mader Kedrowski Petersen Schenck Wuellner {Seal} City Manager City of Prior lake SUMPAG.DOC ~f;" ._ _J.'i!\1l~"""~' . ,," "'''''~11! '.'.1FMI'~"""'~'nw,_ 'f;.' ,;if ~IW<lI!!lIIII._._... 'II '. ....~ ' Contract No. C-3367 INFLOWlThlflLTRATION C0l\41KOL PROGRAM LOAN AGREEMENT BETWEEN TlUJ METROPOLITAN COUNCIL AND ~u i OF PRIOR LAKE TttlS AGREEMENT is made and entered into by and between the Metropolitan Council (the "Council") and the city of Prior Lake (the "Lendee"), each acting by and through its duly authorized officers. WHEREAS, it is in the best interests of the Metropolitan Council and a benefit to the metropolitan area to reduce excess inflow and infiltration ("1/1") into local sewer systems which discharge into the Metropolitan Disposal System, in order to reduce costs, increase system capacity, and delay the necessity to undertake capital improvements; and . '" lUJREAS, the Metropolitan Council has allocated funds to be used for loans to communities serviced by the Metropolitan Disposal System in order to fund projects for the elimination of excessive community inflow and infiltration into the local sewer systems; and '" lUJREAS, it is in the best interests of the Lendee to reduce inflow and infiltration into its local sewer system in order to increase capacity, reduce costs, and delay the necessity to undertake capital improvements; and '" tlEREAS, the Lendee is eligible to receive an Inflow/Infiltration Control Program Loan and has submitted an application for a such a loan; and '" lUJREAS, the Council has reviewed the application and desires to assist the Lendee by the award of an InflowlInfiltration Control Program Loan. NOW, l.bLREFORE, the Council and Lendee agree as follows: L LENDEE PERFORMANCE OF LOAN PROJECT 1.01 Loan Project Activities. The Lendee agrees to perform and complete in a satisfactory and proper manner the project as described in the Lendee's application for loan assistance ("Loan Project"), incorporated in this agreement by reference, and in accordance with the terms and conditions of this agreement. Specifically, the Lendee agrees to perform the Loan Project described in Exhibit A, which is attached to and incorporated in this agreement. The Lendee may engage contractors to perform the Loan Project. However, the Lendee retains primary responsibility to the Council for performance of the Loan Project. .\ 2 1.02 Material Representations. The Lendee agrees that all representations contained in its application for loan assistance are material representations of fact upon which the Council relied in awarding this loan and are incorporated in this agreement by reference. 1.03 Lendee Certification. Lendee certifies that the loan funds to be distributed pursuant to this agreement will be applied to the purposes stated in this agreement and that the Loan Project is cost effective. 1.04 Governing Body Resolution. Lendee will provide the Council with a copy of a resolution by its governing body which authorizes the Lendee to enter into this agreement. IT. All J..tlORIZED USE OF LOAN PROCEEDS AND MAT\....l1.lJ.iG FUNDS 2.01 Authorized Uses. The Lendee is authorized to use the loan funds only in payment of the line item costs specified in Exhibit B, which is attached to and incorporated in this agreement. No other use ofloan funds is pennitted. Loan and matching funds may be used only for costs directly associated with Loan Project activities. 2.02 Unauthorized Uses of Loan Proceeds. Loan funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or permit, license, or other authorization fees, unless specifically approved in advance by the Council. 2.03 Reversion of Unexpended Funds. All funds loaned by the Council under this agreement that have not been expended for the Loan Project during the Project Activity Period (as defined in section 6.01) will be repaid to the Council. 2.04 Project Equipment and Supplies. Loan and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property directly necessary to conduct the Loan Project. The Lendee will comply with the personal property management requirements described in paragraph 7.10 of this agreement. m LOAN AMOUNT, DISTRIBUTION, AND REPAYMENT 3.01 Total Loan Amount. The Council will pay to the Lendee a Total Loan Amount of $40,000. Provided, however, that in no event will the Council's obligation under this agreement exceed the lesser of: a. the Total Loan Amount of$40,000; or, b. fifty percent (50%) of total Loan Project expenditures. The Council will bear no responsibility for cost overruns which may be incurred by the Lendee in performance of the Loan Project. 4;.l.", """- -...,&. lI'I.~ _"s, .:<_...... .J.L"':'..~jIi.L"~.l&~,a.;:""filUI!.'- .... lio. . ':,~i ",,,~.['Tw:"r-. --..' ;&'~ :;, ..,,:! ,1. 3 3.02 Lendee's Match. The Lendee has an obligation under this loan agreement to share in the costs of the Loan Project by providing at least a fifty percent (50%) cash or in-kind match. Accordingly, the Lendee agrees to provide $40,000 in matching funds ("Lendee's Match") during the Project Activity Period. The Lendee agrees that there will be no reduction in the monetary amount of match unless there is at the same time a proportionate reduction in the Total Loan Amount. 3.03 Distribution of Loan Funds. Loan funds will be distributed by the Council according to the following schedule: a. Upon commencement of the Loan Project funded by this loan, the Council will distribute to the Lendee fifty percent (50%) of the Total Loan Amount, referred to in this agreement as the "Initial Principal. " b. Upon Council approval of the final reports required by paragraphs 5.01 and 5.02, the Council will distribute to the Lendee the final payment of the remainder of the Total Loan Amount, referred to in this agreement as the "Later Principal." No payment will be made which would cause the Total Loan Amount to exceed fifty (50%) of projected total project costs. No payment will be made if the Lendee is not current in its reporting requirements under article V. Distribution of any funds or approval of any report is not to be construed as a Council waiver of any Lendee noncompliance with this agreement. 3.04 Loan Repayment. a. Repayment Terms. The Total Loan Amount (or such lesser amount as is actually loaned) will be repaid by Lendee in five equal annual installments, together with accrued interest at the rate of five nercent per annum, in accordance with the schedule described in section 3.04(b). For loan amounts distributed prior to the Project Completion Date (as defined in section 6.01), interest will accrue from and after the Project Completion Date. For loan amounts distributed after the Project Completion Date, interest will accrue from and after the actual date the loan amount is distributed to Lendee. The principal portion of each installment payment will be considered a repayment of Initial Principal and Later Principal (as defined in section 3.03) in the proportion each amount bears to the Total Loan Amount. b. Loan Repayment Schedule. Attached as Exhibit C is Lendee's Preliminary Loan Repayment Schedule setting forth the schedule ofloan repayments, along with accrued interest. This schedule assumes: 1) that the Initial Principal and Later Principal under section 3.03 will be equal; 2) that the Project Completion Date will be the same as the end of the Project Activity Period; and 3) that the second loan payment under section 3.03(b) will be made two months after the end of the Project Activity Period. 4 If any of the assumptions in the previous paragraph vary from the actual amounts or dates, the Council may make, or the Lendee may request, an adjustment of the Preliminary Loan Repayment Schedule to reflect the changed amounts or dates. In such case, the annual installment dates will be determined using the methodology set forth in section 3.04(c). Such an adjustment must be made or requested within six months of the actual Project Completion Date. In such event, the Council will provide Lendee with a revised schedule ofloan repayment which will be considered the Permanent Loan Repayment Schedule. If no adjustment in the schedule is made or requested within six months of the actual Project Completion Date, the Preliminary Loan Repayment Schedule will be the Permanent Loan Repayment Schedule. The date on which each annual installment is due under the Loan Repayment Schedule is referred to in this agreement as an · Annual Installment Date. " Lendee may repay the entire loan balance, with accrued interest to the date of payment, at any time. c. Schedule Adjustment. For the purposes of this section the term · Anniversary Date" will be defined as follows: The last day of that month which is 12,24,36,48, and 60 months after the Project Completion Date (as defined in Section 6.01) of the Loan Project. However, in the event the Loan Project is not completed before the end of the Project Activity Period, the end of the Project Activity Period will be considered the Project Completion Date for the purposes of this definition. If the Preliminary Loan Repayment Schedule is adjusted pursuant to section 3.04(b), the first annual installment will be due on the first Anniversary Date and the remaining installments on . . each consecutive Anniversary Date thereafter until paid in full. d. Repayment Forgiveness. Repayment of the amounts loaned is subject to the loan forgiveness provisions of Section 6.03. IV. ACCO~ lU'iG AND RECORD REQUIREMENTS 4.01 Documentation of Project Costs and Income. All costs charged to the Loan Project, whether paid with loan proceeds or charged as the Lendee's match, must be supported by proper documentation, including properly executed payrolls, time records, invoices, contracts, or vouchers, evidencing In detail the nature and propriety of the charges. 4.02 Accounts and Records. The Lendee agrees to establish and maintain accurate, detailed, and complete separate accounts and records relating to the receipt and expenditure of all . , ' r. ::i~.1:"- ~--" '~,~; ';<' ::;::\& ;milllll::-::;::'::::,';';~:~ ~ - ',.. ,i:",' ,. ....,;~;'-.L ... .... U 'L ,"', _ ..' 5 loan funds and the Lendee's Match required by this agreement, including all project documerits, financial records, supporting documentation, and the property records required by paragraph 7.10. These project accounts and records will be retained intact by the Lendee for at least three (3) years following the full repayment of the loan. These requirements will survive closeout of the loan agreement. 4.03 Audit. The Lendee agrees to keep and maintain books, records, documents, and other eVidence pertinent to its performance under this agreement in accordance with generally accepted accounting principles and practices, consistently applied. Such books, records, documents and other evidence will be maintained until the latest of: 1. Complete performance of this agreement; or 2. Three (3) years following the full repayment of the loan; or 3. If any litigation, claim, or audit is commenced during said three (3) year period, when all such litigation, claims or audits have been resolved. During the time of such maintenance, authorized representatives of the Council (and the Legislative Auditor and/or State Auditor in accordance with Minn. Stat. ~16B.06, subd. 4) will have access to all such books, records, documents, accounting practices and procedures, and other evidence for the purpose of inspection, audit, and copying during normal business hours. The Lendee will provide proper facilities for such access and inspection. These requirements will survive closeout of the loan agreement. V. REPORTING AND MONITORING REQUIREMENTS 5.01 Final Activity and Expenditures Report. Not later than two (2) months after the Project Completion Date or the end of the Project Activity Period (whichever is earlier), the Lendee must submit a final report for Council review and approval describing the activities and expenditures for the'Loan Project and containing a final accounting ofloan and matching . expenditures. The final report must include a list of project personal property as required by paragraph 7.10. 5.02 Final Project Summary Report. Upon completion of the Loan Project and not later than two (2) months after the end of the Project Activity Period, the Lendee must submit three (3) complete copies of a "Final Project Summary Report" for Council review and approval. The Summary Report will contain at a minimum the following information obtained during and as a result of the Loan Project: a. An overall summary of the completed Loan Project work scope and activities. b. An overall summary of the location of the Loan Project, a description of the sources of III removed from the system, an estimate of III reduced or removed as a result of the project, a list of potential follow-up project(s) in other areas to reduce or eliminate III 6 - sources, and a cost-benefit analysis of the Loan Project based on the estimated III removed from the system. c. An acknowledgment of the requirement for Lendee certification under section 6.02 and the methods, including a schedule with dates and locations of inspections, to be used by the Lendee in making the certifications. ' d. Copies of reports, studies, inspections, etc. made prior to the Loan Project, documenting the conditions of the system which lead to the project. 5.03 Content of Reports. The Lendee agrees to report completely and to provide the Council with any additional or follow-up information as may be requested by Council staff. 5.04 Other Monitoring Activities. To assist the Council in monitoring compliance with the loan agreement, the Lendee agrees to attend Lendee meetings as requested by Council staff and to permit site visits by Council staff, during business hours, upon reasonable notice. The Lendee agrees to submit to the Council a copy of any promotional information regarding the Loan Project disseminated by the Lendee during the loan Period. . 5.05 Changed Conditions. The Lendee agrees to notify the Council immediately of any change in conditions, local law, or any other event that may affect the Lendee's ability to perform the Loan Project in accordance with the terms of this agreement. VI. PROJECT ACT1\' 11 i PERIODILOAN FORGIVENESS PROVISIONS 6.01 Project Activity Period. The Project Activity Period will consist of the time period from March 26, 1998 (the date this loan was awarded by the Council) until September 30, 1999. The Lendee agrees to substantially complete the Loan Project activities described in Exhibit A during the Project Activity Period. The Council will not provide loan funds to the Lendee for any Loan Project activities taking place before, or after the end of, the Project Activity Period. The Loan Project will be considered substantially complete when it can be utilized for the purposes for which it is intended and such date is referred to in this agreement as the "Project Completion . Date." . 6.02 InflowlInfiltration Reduction Certifications. Lendee will provide the Council with a Certification of Project Performance 30 days before the first Annual Installment Date (as defined in section 3.04(b)) and 30 days before each Annual Installment Date thereafter (through the fifth Annual Installment Date). The Certificate of Performance will be signed by an engineer registered in the state of Minnesota and will certify that the inflow and infiltration removed pursuant to the Loan Project have not returned to the system during the twelve month period prior to said Certification. On the third and fifth Annual Installment Dates, along with the said Certification, Lendee will also provide the Council with physical documentation supporting the Certification. Exhibit D contains additional specific certification requirements which Lendee agrees to implement. , ." .ok:"""" l.i~"'-_l;;;1ij'~.::.~Lf[;;;_~"'":;':'l'l )-'," q" '~ .. :...".'..L..'_,....}.~'......'~... ""'''''',?,,~"~~\'''IIIJ'' 7 6.03 Loan Forgiveness Provisions. The Council will review the Certification (and Other documentation as required by Section 6.02), submitted by Lendee prior to each Annual Installment Date, to determine its adequacy. The Council may request, and the Lendee will provide, additional information or documentation in order to carry out such review. a. Positive Determination. If, in the Council's sole discretion, it determines that the Loan Project continues to be successful, that is, that the inflow and infiltration removed pursuant to the Loan Project have not returned to the system in significant quantities during the twelve month period prior to the said Certification, then the Council may forgive the Lendee's loan installment principal payment, along with accrued interest on the fo'rgiven principal, for that Annual Installment Date. The Council will promptly notify Lendee if it qualifies for such loan forgiveness. b. Negative Determination. If, in the Council's sole discretion, it determines that the Loan Project does not continue to be successful, that is, that the inflow and infiltration removed pursuant to the Loan Project have returned to the system in significant quantities during the twelve month period prior to the said Certification, then the Council will notify the Lendee that the installment payment, along with accrued interest, for that Annual Installment Date will not be forgiven and is due and owing in accordance with the schedule set forth in section 3.04. In such case, Lendee will have the following options: 1. Lendee may make a request, in writing, to the Council for an extension period of up to three months from the Annual Installment Date, for payment of the installment payment, for the purpose of carrying out additional work at its own expense in order to satisfy the Council's requirements. If at the end of such extension period the Council determines that such work does satisfy its requirements, it will notify the Lendee of that fact and that the installment principal payment, along with any accrued interest on the forgiven principal, for said Annual Installment Date is forgiven. If at the end of such extension period the Council determines that such work does not satisfy its requirements, it will notify the . Lendee of that fact and the installment principal payment, along with accrued interest (including interest for the extension period), for the said Annual Installment Date will become due and owing upon receipt of said notice. 2. Alternatively, Lendee may determine that it does not desire to pursue additional work because such work would not be productive or otherwise not in Lendee's interest. In such case, Lendee will make the installment payment, along with accrued interest, on the said Annual Installment Date, and will thereafter repay the Loan in accordance with the schedule set forth in Section 3.04. If a Loan Project fails to obtain loan forgiveness for any period in accordance with this section, all future installment payments will be made in accordance with Section 3.04 and Lendee will not be eligible for any future loan forgiveness. 8 VII. GENERAL CONDmONS 7.01 Amendments. The tenns of this agreement may be changed only by mutual agreement of the parties. Such changes will be effective only upon the execution of written amendments signed by authorized officers of the parties to this agreement. 7.02 Noncompliance by Lendee. If the Council finds that there has been a failure to comply with the provisions of this agreement, the Council may terminate the agreement at any time following seven (7) days' written notice to the Lendee and upon failure of the Lendee to cure the default within the seven-day period. If the Council finds that the Lendee's noncompliance is willful and unreasonable, the Council may terminate or rescind this agreement and require the Lendee to immediately repay the loan funds in full or in a portion determined by the Council. Nothing herein will be construed so as to limit the Council's legal remedies to recover loan funds. 7.03 Unauthorized Use of Loan Proceeds. Upon a finding by Council staff that the Lendee has made an unauthorized or undocumented use of loan proceeds, and upon a demand for: repayment issued by the Council, the Lendee agrees to promptly repay such amounts to the Council. 7.04 Indemnification. The Lendee assumes liability for and agrees to defend, indemnify and hold harmless the Council, its members, officers, employees and agents, :from and against all losses, damages, expenses, liability, claims, suits, or demands, including without limitation attorney's fees, arising out of, resulting from, or relating to the performance of this agreement by Lendee or Lendee's employees, agents, or subcontractors. 7.05 Public Data. The Lendee agrees that the results of the Loan Project, the reports submitted, and any new information or technology that is developed with the assistance of this loan is in the public domain and may not be copyrighted or patented. 7.06 Equal Employment Opportunity; Affirmative Action. The Lendee agrees to comply with all applicable laws relating to nondiscrimination and affirmative action. In particular, the Lendee agrees not to discriminate against any employee, applicant for employment, or participant in this project because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation, or age; and further agrees to take action to ensure that applicants and employees are treated equally with respect to all aspects of ...mployment, including rates of pay, selection for training, and other forms of compensation. 7.07 Acknowledgment. The Lendee will appropriately acknowledge the loan assistance made by the Council in any promotional materials, reports, and publications relating to the LoanrProject. . ..~ :!!: ,'II' 111 ____..,':I",,:.~ ..' "l!' ',. !lfl!F*~'~r.~=_ ~.. ..... .....;:l~~~".." ,..I.~'il', , l't 9 - 7.08 Compliance with Law. The Lendee agrees to conduct the Loan Project in compliance with all applicable provisions of federal, state, and local laws. 7.09 Permits and Approvals. The Lendee is responsible for obtaining all local and state permits, licenses, and authorizations necessary for the Loan Project. 7.10 Personal Property Management. Title to all personal property acquired with loan or matching funds will remain with the Lendee during the Project Activity Period. Accordingly, the Lendee will take reasonable measures to protect and defend its title interest and will keep the personal property free and clear of any liens, encumbrances, or other claims. The Lendee must maintain property records that include, at a minimum, a description of the property, a serial or other identification number, the acquisition date and cost, and the location, use, and condition of the property. In the final report required by paragraph 5.01, the Lendee will include a list ofall personal property acquired with loan and matching funds which was not expended in performance of the Loan Project. At the end of the Project Activity Period, the Lendee agrees to transfer title to all personal property acquired in whole or in part with loan funds and not expended in the course of the Loan Project to the Council, at the Council's option and at no charge. The Council reserves the right to direct appropriate disposition of all personal property, acquired in whole or in part with loan funds, which has not been expended in performance of the Loan Project. During the Project Activity Period, the Lendee bears the risk ofloss of, damage to. or destruction of any personal property acquired with loan or matching funds. No such loss. damage, or destruction will relieve the Lendee of its obligations under this agreement. The Lendee agrees to maintain personal property acquired with loan or matching funds in good operating order. If, during the Project Activity Period, any project personal property is not used in performing the project, whether by planned withdrawal, misuse, or casualty loss. the Lendee will immediately notify the Council's Loan Manager. Unless otherwise approved by the Council's Loan Manager, the Lendee will remit to the Council a proportional amount of the fair market value of the item(s), ifany, determined on the basis of the proportion of Council loan funds used to acquire the item(s). . 7.11 Effect of Project Closeout. The Lendee agrees that project closeout does not invalidate continuing obligations imposed on the Lendee by this agreement. Project closeout does not alter the Council's authority to disallow costs and recover funds on the basis of a later audit or other review, and does not alter the Lendee's obligation to return any funds due to the Council as a result of later refunds, corrections, or other transactions. 10 IN WITNESS WHEREOF, the parties have caused this agreement to be executed by their duly authorized officers on the dates set forth below. This agreement is effective upon final execution by, and delivery to, both parties. LENDEE: Ltt r OF PRIOR LAKE Date By Name Title METROPOLITAN COUNCIL Date By James J. Solem ~egional Administrator Approved as to form: Metropolitan Council Office of General Counsel File Name: i i loan.l#2 Revision: IV96 .r . :;[. ,,...........,"..'...1lIIIl!'iIIII!I~.. . '!h'" -:m ~-:':~.~'~'!!"21! ~.~ . . ""E ~!I!Il"ltll1Jl~ .. ~ u't .Il? EXHIBIT A - PROJECT ACTIVITIES & SCOPE \...11 i OF PRIOR LAKE The project activities and scope proposed by the city of Prior Lake includes the inspection for, and the ordinance enforcement of, illegal sump pump connections within the City. The sump pump inspection project is to focus on only a specific area of the City and entail the inspection of every residential home connected to the sanitary sewer system within the specific project area. Activities within the project scope include: 1. Implement public infonnation and education campaigns notifying residents of sump pump inspections and the need to enforce existing sump pump disconnection ordinance. Campaign to include direct mailings, and local news articles. 2. Conduct visual inspections in every residential home connected to sanitary sewer system within the project focus area. There are an estimated 2,000 homes connected to the sanitary system within the project area, each requiring an inspection. Where sump pumps are found to be connected to the sanitary sewer, the City will require that they are disconnected. 3. Conduct visual re-inspections in those residential homes initially found to have a sump pump illegally connected to the sanitary sewer. 4. Upon completion ofall inspections, and review of inspection reports, a summary report will be prepared. Summary report to include overall summary of completed project, description and location of III sources removed, and acknowledgment of certification requirement including method, schedule with dates and locations. Report shall also include complete list of addresses where sump pumps were found to be connected to the system during the initial inspection. Project activities will be conducted using a combination of City staff personnel, contracted service vendors and consultant services. EXHIBIT B - PROJECT BUDGET LII r OF PRIOR LAKE Total project as outlined in the City's project program activities has been estimated at $80,050. Of this amount the City proposes to finance approximately 500!cl or $40,050 using City funds, and finance the remaining 50% using the $40,000 loan. Total project cost estimate is based on 2,000 home inspections. An itemized breakdown of the project costs have been summarized in a letter from the City, dated April 29, 1998 and is attached an hereby part of Exhibit B. (See attached summarized project cost letter) ,.' ~ ..,....,. '[1!.~="i:!f!I!I!!!UP',,'~ )- .~:,;, i\~p~ .. ;""\ltl';,;;"...l!il<:J:i,,',....,'~ .. -:t ....;.~~~II~I...,. '",''''''' ~ April 29, 1998 Mr. Kyle Colvin Wastewater Services Department Metropolitan Council Environmental Services 230 East Fifth Street . St. Paul, MN 55101-1633 Subj: III REDUCTION LOAN APPLICATION Dear Mr. Colvin: This letter is the follow-up to the April 6, 1998, MCES letter informing the City of its successful loan solicitation. As requested in that letter the following detailed itemized breakdown of costs associated with the proposed project is provided. 1. Public Education Efforts: 2. Initial Residential Inspections: 3. Initial Non-Residential Inspections: 4. Re-inspections TOTAL $ 6,600 (Video, Info packets, publishing) $60,000 (2000 @ $30 ea) $ 2,200 (55 @ $40 ea) $11.250 (225 @ $50 ea) $80,050 Any additional miscellaneous costs will be funded locally, including City staff time. If you have further questions or need additional information please call. Sincerely, ~.~ Greg I~, P.E. Public~~rks Director/City Engineer CITY OF PRIOR LAKE 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNIlY EMPLOYER Exhibit C - Preliminary Loan Repayment Schedule Metropolitan Council Environmental Services InflowlInfiltration Control LOAN PROGRAM ~Total Loan Amount $ 40,000 Project Completion Date 12/31/99 Int...~,;,,)~ Rate ~ 5% i' Accrual Outstanding "Initial Princioal" Schedule: Dat~ Effective ,Disburse ravrnents Princioal Interes~ Balance Disbursement 7/1/98 12/31/99 $ 20,000.00 20,000.00 1 st Annual Installment 12/31/00 4,619.50 3,619.50 1,000.00 16,380.50 2nd Annual Installment 12/31/01 4,619.50 3,800.47 819.03 12,580.03 3rd Annual Installment 12/31/02 4,619.50 3,990.50 629.00 8,589.53 4th Annual Installment 12/31/03 4,619.50 4,190.02 429.48 4,399.51 5th Annual Installment 12/31/04 4,619.49 4,399.51 219.98 Accrual Outstanding "Later Princioal" Schedule Date Effective ,Disburse Pavrnents ,Princioal Interest Balance Disbursement 3/2/00 3/2/00 $ 20,000.00 20,000.00 1 st Annual Installment 12/31/00 4,582.84 3,752.28 830.56 16,247.72 2nd Annual Installment 12/31/01 4,582.84 3,770.45 812.39 12,477.27 .. 3rd Annual Installment 12/31/02 4,582.84 3,958.98 623.86 8,518.29 "" 4th Annual Installment 12/31/03 4,582.84 4,156.93 425.91 4,361.36 5th Annual Installment 12/31/04 4,579.43 4,361.36 218.07 . Total Exoected Annual Pavment > 9,202.341 . . NOTE: Calculations based on 30-day month convention. lL~ ....JbyMCEs ~122198 12:'3 PM EXHIBIT _ c.xLS "$40,000" EXHIBIT D - CERTIFICATION REQUIREMENTS CLEAR WATERDISCONNELIION'S The first, second and fourth year certification shall be based on findings resulting from an inspection of at least 20% of all non-compliance connections identified during the initial inspections. On the third anniversary date, along with said certification, Lendee shall also provide the Council with physical documentation in the form of visual inspection records supporting the certification of20% of all non-compliance connections identified during the initial inspections, and those connections that were found during the first and second year certifications to be reconnected to the system after the original disconnection. On the fifth anniversary date along with said certification, Lendee shall also provide the Council with physical documentation in the form of visual inspection records supporting the certification of20% of all non-compliance connections identified during the initial inspections, those connections that were found during the third and fourth year certifications to be reconnected to the system after the original disconnection, and an additional number of re-inspections to be chosen by the Council. The additional properties that the Council selects to be re-inspected will be from those identified in the "Final Project Summary Report," according to paragraph 5.02, as being non-compliant prior to the project. The total number of additional inspections as chosen by -the Council shall not exceed 10% of the total number of non-compliance connections as discovered during the original inspection. Each years certification inspections shall represent different connections from those inspected during other years so that at the end of the five year certification period every non-compliance connection shall be inspected at least once. Thirty days prior to the community performing the certification inspections during the third and fifth year, the Lendee will notify the Council in writing so that a representative from the Council has the opportunity to be present during the inspections. All properties to be inspected for certification shall be identified prior to the inspections and a list of said properties along with a map showing their locations shall be sent to the General Manager of Wastewater Services Department for review and comment. Certification inspections shall be performed during periods when III sources would typically be discharged into the system. The inspections shall consist of visual observations of the sump pump discharge points located outside the building limits. In the absence of evidence that shows sump discharges outside the building, a visual inspection of the sump pump plumbing inside the building will be required. In the event that any property is found to be reconnected to the sanitary system during the certification inspections, that property shall be disconnected from the system. All(5) Howard R, Green Company ,CONSULTING ENGINEERS Recommended Project Approach , I ! It has been our experience that projects of this type consist of two phases: first, communication/education, and second, the actual physical inspection. The first phase includes contacts with residents, City Council and staff, and local contractors and plumbers. COMMUNICATION/EDUCATION Your Howard R. Green Company (HRG) team will work closely with the City of Prior Lake staff to develop an understanding of the local ordinance provisions. With this background, we will be prepared to hold discussions with selected local contractors to determine their current practices regarding sump pump installation, and develop alternate procedures where necessary to meet . City requirements. This will be followed by a general meeting open to all interested plumbers and contractors where information on the City's ordinance will be disseminated, and correct methods of compliance will be discussed. For the general public, Howard R. Green Company believes that a professional communication and advertising program is essential to the successful completion of the City of Prior Lake's Sump Pump Inspection Program. Inspectors will be able to do their jobs most efficiently with the cooperation and assistance of informed and educated homeowners. Our suggested approach would be to combine public meetings, local access video, printed brochures and newsletters, press releases for print and broadcast mediums, and paid advertising to communicate to residents and business owners. In Anne-Marie Flannery, Howard R. Green Company's Communication Specialist, we have an experienced professional ready to work with the City in all aspects of the communications program. With her background in advertising, marketing, and public relations, she is ready to assist with any and all areas of the plan. In recent III projects for the Cities of Plymouth and Savage, we provided both the writing and design for mailings on inflow and infiltration that the Cities distributed to homeowners. We worked with City staff and an independent video freelancer to write and produce a video on III and sump pump inspection for use in public education meetings. In Plymouth, we worked with the local public access cable station to produce a video customized for that City's situation. This tape was shown both at public meetings, and on the local cable station. Copies of these videos have been provided to the City of Prior Lake during our pre-proposal interview. With Prior Lake's local access cable station, and its production facilities, the City has good video resources ready to put to work. On the print side, your local newspaper will be one of the best vehicles for both placement of news and ,~. lIi. ~~_ -...,...... ' ""il&,.. ~<(i'h;IIo;""-~~l.J;jllllilldi.:..f.,"';'."~ JiL.... .,' "u,.;ili...iI\llW':~i~;;"" 'Ii .i.o.1 .,~ .L I- Howard R. Green Company CONSULTING ENGINEERS I j I Recommended Project Approach I feature stories, as well as advertising. We recommend also contacting the Star Tribune's suburban reporters. It would also be a good idea to see if a local talk or interview show would be interested in interviewing both a member of the City staff and one of Howard R. Green Company's III experts on the subject of the private property inspections. We could also provide Public Service announcements (PSAs) to stations serving your area. I i Howard R. Green Company's project team will attend the public meetings to be held in each of the project areas to assist in eXplaining the need for the inspection program, and illustrate what methods might be employed to correct cross-connected systems. Howard R. Green Company Engineer Tom Kaldunski has exceptional experience in inflow and infiltration problems and; more importantly for this project, can communicate that experience in terms the layman can understand. Susan Fussell, who manages the project and scheduling of appointments, will explain the inspection process in detail. Both are experienced professionals who can answer any homeowner questions. j ~ I For your public meetings, HRG will make available to the City our IO'xIO' trade show display, which can be broken down into two 8-foot wide table-top displays, if desired. This is an ideal vehicle for presenting graphic illustrations of the "why?" reasons to complete the sump inspection program. Anne-Marie Flannery will be available to assist in the production of display items, presentation materials, and informational handouts to be used at the meetings. I I Howard R. Green Company will assign one specific office staff person to handle all calls from Prior Lake residents. This staff member will schedule inspection appointments, route messages to the appropriate project personnel, and check back with residents to be sure questions have been answered to their satisfaction. We will arrange for a separate phone number for sump pump inspection calls with a voice mailbox for those hours when the phone is not manned. Messages left will be returned the following day or evening, and the voice mailbox will be checked and calls returned on weekends while the project is ongoing. This kind of attention to detail is especially necessary in these days of two-career families, where weekends and evenings are often the only time some City residents are able to take care of household chores. By accommodating their schedules, we hope to increase the amount of cooperation we receive in return. Ii jj jl -j PHYSICAL INSPECTION Ji HRG has several experienced sump pump inspectors, and will assign them to this project. Tom Kaldunski and Susan Fussell will provide eight hours of training to any inspection team members (including City staff) new to this type of project; four hours of in-house training and four hours of training in actual inspection of residences. The in-house training concentrates on identification of il li I I I Howard R. Green Company 1 CONSULTING ENGINEERS Recommended Project Approach I I I I I II I I I I .. . -' 1- - II I both legal and illegal type installations. Particular care is taken to educate the team members to recognize the type of installations they may encounter. Susan will also provide random checking of team personnel throughout the inspection period. Initially, inspectors will attempt to check sump connections by walking through the neighborhoods, going door.to door, and requesting access to homeowners' basements. They will work both daytime and early evening hours, including Saturdays, in an effort to inspect as many homes as possible without making appointments. This has proven to be the quickest and most efficient means of contacting the majority of homeowners. All Howard R. Green Company inspectors will wear identification badges during inspections. In those cases where inspectors are unable to gain access to a home after repeated visits, a door hanger will be left, requesting the homeowner to call the sump inspection line to make an appointment for inspection. We also try to reach residents to schedule an appointment by calling or sending letters to their homes. Our last resort in reaching residents is to send a certified letter from the City. Once in the home, the Inspector will complete a multi-part fonn, clearly marking the home's sump system with a PASS or FAIL grade. In addition, a summary of the Inspector's findings about the home's system will be filled out, such as whether or not there is a sump basket, whether it contains water, and whether there is evidence of a hastily disconnected cross-connected system. One part of the fonn goes to the homeowner for his or her records, one part will go the City, and the third to HRG. Homes that fail the initial inspection will be reinspected after 30 days. Residents will be encouraged to can once their systems are in compliance for a second inspection. HRG staff win call homeowners after 30 days to set an appointment if the resident does not call first. As a last resort, the City will send a certified letter requesting the system be brought into compliance. Documentation The City win provide HRG with computerized maps of the areas to be inspected, and a computerized list of homeowners' names and addresses. Howard R. Green Company will use copies of the inspection fonns to update the computer database of homeowners on a daily basis. We will provide the City with computer updates as often as requested, either through modem connection, or by delivery of an updated disk. .........1~~'!i,.lllh.."i" ". ,q' '..~ ., pli4IlI ..~J<w'''",,'';Ii'",j,.~~~~ 4~ .. 'III. ',,,',""""~l, 'It .. ~ ' I I -1oward R. Green Company CONSULTING ENGINEERS j Recommended Project Approach j l t I t t I ~ t ~ - 'I J :- "I HRG proposes to inspect approximately 2,000 homes and businesses in the target area identified by the City, based on a budget of $80,000. We will develop all forms and handle administration of the program. When the inspections are completed, a certificate of compliance or non-compliance will be issued to all properties. A copy of the certificate will be sent to the City. All properties that have been identified as having an illegal installation will be reinspected by an HRG employee. At the project's completion, HRG will prepare a report summarizing its findings, which will include a computerized listing of properties that have a sump pump, sump basket only, or no basket. The software we will be using to collect and tabulate the sump pump data will be the Microsoft Access program. A copy of this computerized database will be transmitted to the City at the end of the program. We would be available to present the report and our findings to the City Council, if requested. This data base could easily be used to prepare a map ofthe results using the County's GIS system. . ' TYPICAL DlJ llJ!.S AND DIRE~ J.J.ONS SUMP ..:'.....J.dP INSPECI'ORS Fl,T,NLJ.J.ON Responsible for inspecting individual properties (business and residential) for potential sump pump cross connection into the sanitary sewer system. Sump pumps shall be inspected per the City's codes to determine if the sump pump discharge is in compliance. RESPONSmllXfY 1. Inspect all sump pump installation as assigned by the project coordinator, and determine if the installation is in compliance with City Code. The inspector shall rate the installation as passing or failing. 2. Inspector shall be friendly and courteous to the public, must have a neat and professional looking appearance at all times. If a resident is upset or angry with the program, please direct them to call the main office (Susan Fussell, 655-5489). ' 3. Inspector shall wear his/her badge at all times while working on the sump pump program, and any safety equipment as needed (i.e., reflective vests at night). 4. Inspectors shall be familiar with the City Codes to provide adequate explanation to the residents regarding the City=s Sump Pump Inspection Program and it=s Inflow and Infiltration Reduction Goals. Impress upon resident that the program will save them money. Be positive (attitude). 5. All inspectors shall identify themselves when approaching City residents. 6. !fa minor child (2 to 18 years old) answers the door and no adult is at the house at the time, the inspector shall explain the purpose of the visit and inform them that the inspector shall return at a later time when the parents are home. Leave a door hanger, if necessary, for the scheduling of an appointment. 7. All inspectors shall remove his/her shoes before walking through the house. 8. Politely ask to be escorted downstairs to look for a possible sump pump or basket in the basement. (Typical locations near washer and dryer, near the furnace or water heater, or under a stair well.) 9. Determine if any wastewater is discharged to the sump. The proper disposal of wastewater is via the sanitary sewer system. Clearwater discharges must be separate from wastewater and directed outside. 0:\PROJ\80 1570]1570-040 l.fcb.duties and directions.doc '"?1m~~""'ir; ~: ~'tt ~,...,..~ <r~I~~,S:;!!, ~"", .". . ..~,!:m:;:,~! '! , ~f . 10. Determine if the sump pump connection meets City Code. The following examples indicate which situations would pass (comply with City Code) or fails (due to non compliance) This list is not all encompassing. Pass Fail No sump basket or foundation drain Pump discharges to sanitary sewer via floor drain or wash tubs Non-compliance per inspection (provide resident with directions to secure compliance and schedule reinspection when repairs are complete.) Sump basket only - no pump installed (Determine the history - was there ever a pump installed to resident's knowledge? If so when? ) Pump has pennanent discharge piped to the Flexible hose used inside and must be outside per Code (rigid pipe) replaced with rigid plastic pipe No basement On private septic system - no City connection Foundation drains to sanitary sewer Water flowing over the basement floor to sanitary sewer. Sump Basket with seal in place Situation which should be brought to the City=s attention through HRG are: · Residents who deny access into their house for the sump pump inspection. Discuss these situations with Susan Fussell before notifying the City. (Owners may have a licensed plumber inspect their sump pump with the proper forms filled out.) · Property is vacant - three attempts made and certified letter sent. · Roof gutters are connected to the sanitary sewer system. Inform the residents that the gutters will need to be reconstructed so that they flow away from the house or directly into a storm sewer system. V-Pass can only be granted by the City. Ifa resident has received a V-Pass by the City and can show the inspector the approved form, the house does not need to be inspected but record the variance number for our records. 11. The use of flexible pipe outside the structure is acceptable. Only rigid plastic pipe can be used inside the structure. 12. The inspector shall properly complete the sump pump cross-connection form. 13. Once the inspection fonn is complete and signed by both parties, give the white copy of the fonn to the resident and tell them they should keep it with their house records. 0:\PROJ\80 lS70j\S70-040 l.feb.dutics and directiom.doc ", " ~ 14. If the resident's sump pump system failed, distribute: a. the list of.plumber's which work in the City b. instructions on how to properly hook up the sump pump using the booldets on plastic pipe. 15. If the resident is not home after trying their door at three different times, the inspector shall leave a door hanger infv~uJng the resident to call to make an appointment. Do nm leave door hanger on door when you know the resident is on vacation. 16. Remember you are a guest in resident's home - don't get into politics - be humble. 17. There is a phone call follow-up program in place. R~}"~~ntatives from HRG and the City will talk to the resident about their recent in~}',;..,tlon. It is intended to get the general "feel" of the public to the program. 18. Feel free to write resident comments on form - these will be read by City Engineering Department. 19. If resident fails in~}',;.....aon, try to get a reinspection at the same time - generally 30 to 40 days out. O:\PROJ\80 1.570j\S70-040 l.feb.duties and diredioos.doc ".+1,' ,6i,,' -'. - ..".* , .'" "" ,ij .. ,tlII~I..,......,.,.,,_,,~ .. '.. ,,; , ;,.,"",,'w~i;~.t.Jj',;. iA. ....',