7D, Motion to Approve Lift Station Agreement with Prys Homes

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~ MEMORANDUM DATE: June 8, 2009 TO: Mayor and City Council FROM: Ron Moorse, City Administrator Greg Hoag, Public Works Director SUBJECT: Lift Station Agreement with Presbyterian Homes BACKGROUND On May 6, 2009, a letter was sent to Presbyterian Homes regarding. maintenance and repair issues and costs related to the lift station that serves Presbyterian Homes (please see attached). The letter was followed up by a meeting with Wayne Hardison, Director of Environmental Services for Presbyterian Homes, to discuss the responsibilities of Presbyterian Homes related to the replacement of the lift station pumps and the installation of an in-line grinder to pre-treat objectionable materials discharged by Presbyterian Homes into the sanitary sewer system. At that meeting, Mr. Hardison agreed with the City's plan to replace the lift station pumps, and agreed with the need for the installation of an in-line grinder. He also agreed that Presbyterian Homes should be responsible for the cost of purchasing, installing, and maintaining the in-line grinder. While Mr. Hardison agreed that Presbyterian Homes should be responsible for a portion of the costs of the new lift station pumps, he suggested the pumps also serve the other properties in the lift station area, so that Presbyterian Homes should not pay the full cost of the pumps. A review of utility billing records shows that Presbyterian Homes contributes over 75% of the sewer flows to the lift station. The amount of resources the City has had to put into maintaining the lift station, due to the materials discharged by Presbyterian Homes, offsets any cost-reduction to Presbyterian Homes based on relative sewer flows. An agreement reflecting the elements of the May 6, 2009 letter (see attached) has been provided to Presbyterian Homes for execution prior to the June 8 Council meeting. RECOMMENDATION It is recommended that the attached agreement with Presbyterian Homes related to the purchase, installation, and maintenance of lift station pumps and an in-line grinder related to lift station #7 be approved.