CR 06-118 Approve Sanitary Sewer Dump Station Construction & Operating Agreement
C\TY OF
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HOPKINS
October 12,2006
Council Report 2006-118
Approve Sanitary Sewer Dump Station Construction and Operating Agreement
Proposed Action.
Staff recommends adoption of the following motion: Move that City Council authorize
the Mayor and City Manaqer to sian an aqreement between the cities of Hopkins. St.
Louis Park. Edina and the Metropolitan Council for the construction and operation of a
sanitary sewer dump station in the city of St. Louis Park.
Overview.
The cities of St Louis Park, Edina, and Hopkins and the Metropolitan Council
(Environmental Services Div.) have been planning together on an initiative to construct
a facility to dump sanitary sewer and storm sewer grit material so that it can be properly
disposed of. This material is the solids that are removed from sanitary sewer pipes, lift
stations, storm sewer catch basins, or grit chambers when they are cleaned. The
facility would be owned and operated by the city of St Louis Park. The attached
agreement calls for each of the four participants to contribute equally toward the
design/construction costs. The Hopkins cost would be $62,000. The per city annual
cost for the disposal service is estimated at less than $1,000.
With access to this nearby dump station the city can continue to efficiently dispose of its
waste material while doing it in a more responsible manner. Additionally, the city could
clean and dispose of material from the PW grit chamber and periodically from several of
our sanitary sewer lift stations. This cleaning is currently contracted at an average
annual cost of $2,000.
Primary Issues to Consider.
. Agreement Terms and Conditions
Supportinq information.
. ~~ Operating Agreement
Steven J. Stadler, Public Works Director
Financiaf Impact: $ 62.000 Budgeted: Y/N Y - 2007 Source: San Sewer fund
Related Documents (CIP, ERP, etc.):
Notes:
Council Report 2006-118
Page 2
Analysis of Issues.
. Agreement Terms and Conditions
The agreement covers the design, construction and operational costs and
responsibilities for this new facility to be constructed in St. Louis Park in 2007. The four
parties to the agreement share equally in these costs unless a party can show that its
use of the facility is substantially less than the other parties at which time the
contribution for facility operations will be equitably adjusted. The term is twenty years
ending December 31,2026. Per direction from City Council at the October 10 work
session, Staff will attempt to get all parties to agree to language that allows for up to two
5-year extensions. If successful, an amended agreement will be brought back to City
Council for approval.
St. Louis Park will insure the facility and perform routine maintenance. The parties will
share equally in the cost of any necessary major repairs to the facility.
SANITARY SEWER DUMP STATION
CONSTRUCTION AND OPERATING AGREEMENT
THIS AGREEMENT WITH RESPECT TO SANITARY SEWER DUMP STATION IN
ST. LODS PARK ("Agreement") is entered into this day of , 2006,
by and among the METROPOLITAN COUNCIL, a public corporation and political
subdivision of the State of Minnesota ("Met Council") and the CITY OF ST. LOUIS PARK, a
municipal corporation ("St. Louis Park"), the CITY OF HOPKINS, a municipal corporation
("Hopkins"), and the CITY OF EDINA, a municipal corporation ("Edina"), a municipal
corporation, cumulatively referred to as the "Parties".
BACKGROUND RECITALS
1. The Parties have determined that it is mutually beneficial to enter into an
agreement to construct, operate and maintain a sanitary sewer dump station building in St. Louis
Park that will provide for the separation of liquids and solids of sanitary grit collected during the
cleaning of sanitary sewer systems and a temporary holding of solids before landfill disposal.
2. Met Council is authorized by Minnesota Statutes ~473.504 to construct sewage
treatment works determined to be necessary or convenient for the collection of and disposal of
sewage in the metropolitan area and to contract with any local government for the performance
on Met Council's behalf of any service.
3. The Parties agree that each is authorized to enter into this Agreement pursuant to
Minnesota Statutes 9471-.59 and the actions listed below and that said work provisions will be
carried out by the Parties hereto as provided in this Agreement under the provisions of
Minnesota Statutes ~4 71.59.
AGREEMENT
NOW THEREFORE, the parties agree as follows:
1. Purpose of Agreement. The purpose of this Agreement is to set forth the terms
and conditions and responsibilities of each of the Parties with respect to the construction,
ownership, operation and maintenance of a sanitary sewer dump station building that will
provide for the separation of liquids and solids of sanitary grit collected during the cleaning of
sanitary sewer systems and a temporary holding of solids before landfill disposal.
2. Facility Construction and Ownership. St. Louis Park will construct a sanitary
sewer dump building at the City Municipal Service Building property located at 7305 Oxford
Street ("Facility"). St. Louis Park will own the Facility and all fixtures and equipment located at
the Facility during the term of this Agreement, unless otherwise agreed to in writing by the
parties.
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3. Plans and Specifications. The building will be constructed in accordance with
plans and specifications -prepared by the cities' consultant, Bonestroo, Rosene, Anderlik &
Associates, dated ("Project"). As of the date of this Agreement, St. Louis Park has
provided the plans and specifications to each party for its review and comment. St. Louis Park
will submit any revisions to the plans and specifications to each of the other parties for its review
and comment.
4. Construction Administration.
a. St. Louis Park will advertise for bids for the work and construction of the Facility,
receive and open bids pursuant to said advertisement and enter into a contract
with a successful bidder at the unit prices specified in the bid of such bidder, and
construct the Facility in accordance with the plans and specifications approved
and found acceptable by all of the Parties as provided above in Paragraph 3 of this
Agreement and in accordance with St. Louis Park's policies and procedures and
federal, state and local law applicable to the construction of the Facility.
b. Prior to award of any construction contract, St. Louis Park will tabulate the bids
and submit to each of the other Parties a copy of the tabulation and the
recommendation of St. Louis Park for selection of a bidder and award of the
contract. If the bid recommended for acceptance by St. Louis Park exceeds one
hundred twenty percent (120%) of the estimated cost of the construction of the
Facility, i.e. . , the following procedure shall
become effective:
Each Party shall have seven (7) days to review the bids and either accept the bids
and St. Louis Park's recommendation for selection of a bidder and award of
contract or to reject any or all bids and St. Louis Park's recommendation for a
bidder and award of contract. Each Party shall inform St. Louis Park in writing of
its acceptance or rejection as provided in the previous sentence. If Each Party
rejects any or all bids and/or St. Louis Park's recommended selection of a bidder,
Each Party will provide to St. Louis Park, in writing, the reasons for such
rejection. Subsequent to rejection of the bids and/or award by any Party and if all
the Parties and St. Louis Park mutually agree, St. Louis Park may readvertise for
bids. Prior to such readvertisement for bids, Each Party may submit to St. Louis
Park for inclusion in the plans and specification, changes in the Facility which in
the Party's opinion may result in reasonable bids. St. Louis Park agrees to
incorporate such changes. into the plans and specifications prior to
readvertisement for bids for the Facility, provided that all Parties have reviewed
and accepted the changes in accordance with Paragraph 3 of this Agreement.
Immediately upon opening the second set of bids, St. Louis Park and the other
Parties shall follow the procedure set forth in Paragraph 4b with respect to
tabulation of bids, recommendation for selection of a bidder and acceptance or
rejection of bidder by each Party. If any Party again rejects any or all bids and/or
the award recommended by St. Louis Park, this contract shall become null and
void. In the event this Agreement becomes null and void in accordance with the
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terms of this paragraph, each Party shall pay to 8t. Louis Park the design and
administrative fees actually expended by 8t. Louis Park for the Facility in
accordance with the terms of this Agreement.
c.
Change Orders. During the construction of the Facility, St. Louis Park shall have
the right to enter into any reasonable change orders with the contractor and incur
any costs reasonably necessary to complete the construction of the Faculty
provided, however, that each individual change order does not exceed twenty (20)
percent of the construction cost of the Facility. St. Louis Park will submit any
change order which exceeds the above amount to each Party for its review and
approval.
5.
Cost Sharing.
a.
Each of the four Parties will pay twenty-five percent (25%) of the actual project
cost of the Facility in the amount of the actual bid item for the Facility adjusted by
any change orders authorized pursuant to Section 4.c. of this Agreement.
As of the date of this Agreement, the estimated project costs total $248,000 and
include the following components:
Preliminary Engineering
Construction
10% Contingency
Construction Engineering
Total
$ 34,500
$185,000
$ 18,500
$ 10.000
$248,000
b. All direct payment to the contractor(s) for work performe.d on the Facility will be
made by St. Louis Park.
Each of the other Parties will pay to St. Louis Park its respective twenty-five
percent (25%) share of the project costs as follows: design, bid preparation and
construction costs, within thirty (30) days of bid award; all remaining project
costs within thirty (30) days of Facility completion and receipt of a final invoice
from St. Louis Park showing each Party's final share in the costs for the Facility
and evidence of payment by 8t. Louis Park to its contractors for the design and
construction of the Facility.
c.
Each Party shall have thirty (30) days from the receipt of said invoice to review
and contest the amount due. The amount due shall be final, binding and
conclusive upon expiration of the aforesaid thirty (30) day period unless a Party
has contested the amount pursuant to this paragraph.
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6. Operation. The Facility will be operated as follows:
a. St. Louis Park will own and operate the Facility.
b. St. Louis Park will provide all insurance coverage relating to the ownership and
operation of the Facility. .
c. St. Louis Park at its expense will perform the routine maintenance relating to the
Facility, except that any damage to the Facility caused directly by any other
parties' use of the Facility shall be paid for by that party.
d. The parties shall share equally the cost of any necessary major repairs to the
building and site (e.g. roof, fld'br,'walls; dri~ewa:y) or any unanticipated major
expenses.
e. The parties shall share equally the cost of the disposal contract relating to the
Facility.
f. After the first twelve (12) months of operation and every third year thereafter, the
parties shall review the level of usage of the Facility by each party and equitably
adjust the respective contributions of each party if usage is not substantially equal
amongst the parties.
7. Term. This Agreement will be for a term of twenty (20) years ending December
, ;J' wo:,.( ,~",1~' '~< ' , ...'< "-. ", .... I,' ""'~ ",_, '". ,',<,: ", ....'?~';,,~~? ),I"......~;-.~~,I..~,,.......)"'l0'?'/',~,.,J~...:;:..lw',~ ~~;.",V".';:'l:::J'~;;:f'n",...,.;.-..:",,'l"^, I, , ..: ,'.~ ' ".';'I':,~" -', ,,.;,'(1).)""~"
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Facility will be under the sole ownership and control of the City of St. Louis Park, unless prior to
that time the parties have extended the Agreement under the same or modified terms and
conditions.
8. Additional Parties or Users. The parties will work cooperatively to allow other
public or private entities to use the Facility either by an amendment to this Agreement or other
separate agreements.
9. General Terms and Conditions.
,J
a. All records kept by the Parties with respect to the Facility shall be subject to
examination by the representative of each Party hereto. Upon completion of the
construction of the Facility by St. Louis Park, St. Louis Park shall provide each
Party a complete set of reproducible record drawings.
All data collected, created, received, maintained or disseminated for any purpose
by the activities of St. Louis Park pursuant to this Agreement shall be governed
by Minnesota Statutes Chapter 13, as amended, and the Minnesota Rules
implementing such Act now in force or hereinafter adopted.
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b. All employees of St. Louis Park and all other persons engaged by St. Louis Park
in the performance of any work or services required or provided for herein to be
performed by St. Louis Park shall not be considered employees of the other
Parties, and that any and all claims that mayor might arise under the Worker's
Compensation Act or the Unemployment Compensation Act of the State of
Minnesota on behalf of said employees while so engaged, and any and all claims
made by any third parties as a consequence of any act or omission on the part of
said employees while so engaged, on any of the work or services provided to be
rendered herein, shall in no way be the obligation or responsibility of the Parties
other than St. Louis Park.
c. Each party agrees that it will be responsible for its own acts and the results thereof
to the extent authorized by the law and shall not be responsible for the acts of the
other party and the results thereof. St. Louis Park's and the Council's liability is
governed by the provisions of Minnesota Statutes Chapter 466.
Each Party warrants that it is able to comply with the aforementioned indemnity
requirements through insurance of self insurance program and have minimum
coverage consistent with the liability limits contained in Minnesota Statutes
Chapter 466.
St. Louis Park further agrees that any contract let by St. Louis Park for the design
and construction of the Facility as provided herein shall include clauses that will:
1) require the contractor to defend, indemnify, and save harmless the other
Parties, their officers, agents and employees from claims, suits, demands;
damages, judgments, costs, interest, expenses, including, without limitation,
reasonable attorney fees, witness fees, and disbursements incurred in defense
thereof arising out of or by reason of the negligence of said contractor, its officers,
employees, agents or subcontractors; 2) require the contractor to provide and
maintain insurance as required in the contract documents between St. Louis Park
and the contractor and to provide the Parties, also as required in the contract
documents between St. Louis Park and the contractor, with Certificates of
Insurance naming the other Parties as additional insured; and 3) require the
contractor to be an independent contractor for the purposes of completing the
work provided for in this Agreement.
d.
It is understood and agreed that the entire Agreement between parties is contained
herein and that this Agreement supersedes all oral agreements and negotiations
between the parties relating to the subject matter hereof. All items referred to in
this Agreement, including the Recitals, are incorporated or attached and are
deemed to be part of this Agreement.
e.
Any alterations, variations, modifications, or waivers of provisions of this
Agreement shall only be valid when they have been reduced to writing as an
amendment to this Agreement signed by the parties hereto.
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f. Applicable provisions of Minnesota State law, federal law and of any applicable
local ordinances shall be considered a part of this Agreement as though fully set
forth herein. Specifically, St. Louis Park agrees to comply with all federal, state
and local applicable laws and ordinances relating to nondiscrimination,
affirmative action, public. purchases, contracting employment, including worker's
compensation and surety deposits required for construction contracts.
g. The provisions of this Agreement shall be deemed severable. If any part of this
Agreement is rendered void, invalid or unenforceable, such rendering shall not
affect the validity and enforceability of the remainder of this Agreement unless
the part or parts which are void, invalid or otherwise unenforceable shall
substantially impair the value of the entire Agreement with respect to the parties.
One or more waivers by said party of any provision term, condition or covenant
shall not be construed by the other parties as a waiver of a subsequent breach of
the same by other parties.
h. The covenants of this Agreement shall be binding upon and inure to the benefit of
the Parties hereto, their successors and assigns.
1. This Agreement is entered into in and under the laws of the State of Minnesota
and shall be interpreted in accordance therewith.
J. Any notice of demand, which mayor must be given or made by a party hereto,
under the terms of this Agreement or any statute or ordinance, shall be in writing
and shall be sent certified mail or delivered in person to the other pmiy addressed
as follows:
METROPOLITAN COUNCIL
Attn: Thomas H. Weaver, Regional Administrator
390 North Robert Street
St. Paul, MN 55101
With a copy to:
METROPOLITAN COUNCIL ENVIRONMENT SERVICES
Attn: William Moore, General Manager
390 North Robert Street
St. Paul, MN 55101
CITY OF ST. LOUIS PARK
5005 Minnetonka Boulevard
St. Louis Park, MN 55416
CITY OF HOPKINS
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1010 First Street South
Hopkins, MN 55343
CITY OF EDINA
4801 West 50th street
Edina, Minnesota 55424
IN TESTIMONY WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective duly authorized officers as of the day and year first above written.
Dated:
, 2006
Dated:
, 2006
Dated:
, 2006
Dated:
, 2006
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CITY OF ST. LOUIS PARK
By:
Jeffrey W. Jacobs, Mayor
By:
Thomas K. Harmening, City Manager
CITY OF HOPKINS
By:
Eugene Maxwell, Mayor
By:
Richard Getschow, City Manager
CITY OF EDINA
By:
J ames Hovland, Mayor
By:
Gordon Hughes, City Manager
METROPOLITAN COUNCIL
ENVIRONMENTAL SERVICES DIVISION
By:
Its:
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