HomeMy WebLinkAbout7D, Motion to Approve Lift Station Agreement with Prys Homes
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~HILLS
Request for Council Action
Prepared By:
Ron Moorse, City Administrator
Council Meeting Date: June 8th , 2009
Motion to approve the attached lift station agreement with Presbyterian Homes regarding
the purchase, installation, and maintenance of lift station pumps and an in-line grinder
related to lift station #7, and authorizing the Mayor to sign the agreement.
Budgeted Amount: Actual Anlount: Funding Source:
Recommendation:
1. Motion to approve the attached lift station agreement with Presbyterian Homes
regarding the purchase, installation, and maintenance of lift station pumps and an in-
line grinder related to lift station #7, and authorizing the Mayor to sign the agreement.
SUDDortin!! Documents:
1. See the attached memo from Ron Moorse dated June 8th, 2009
2. Letter to Presbyterian Homes and Services dated May 6th, 2009
3. Presbyterian Homes and Services/City of Arden Hills Agreement
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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.
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COUNCIL DIRECTION REQUESTED
Motion to approve the attached lift station agreement with Presbyterian Homes regarding the
purchase, installation, and maintenance of lift station pumps and an in-line grinder related to lift
station #7, and authorizing the Mayor to sign the agreement.
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EN HILLS
May 6, 2009
Wayne Hardison
Director of Environmental Services
Presbyterian Homes and Services
2845 Hamline Avenue
Roseville, MN 55:1.:1.3
Dear Mr. Hardison;
In July, 2008, the City of Arden Hills and Presbyterian Homes signed an Agreement
relating to the maintenance and repair of the chopper pumps installed in 2005 at Lift
Statjon #7. Generally, the Agreement required the City to pay for normal maintenance
and repairs of the chopper pumps. Presbyterian Homes was to pay for abnofmal
maintenance and repairs; and was to pay for replacements of the chopper pumps if the
repair and maintenance cost exceeded 50% of the maintenance cost.
Since July, 2008, the City has continued to experience abnormal costs associated with
the chopper pumps at Lift Station #7. The Hft station and the chopper pumps have
continued to require more maintenance than the City's other lift stations. Both of the
chopper pumps are in need of seal replacement for the motors, and both need new
cutting units.
The repair cost is estimated to be $1:1.,900 for each pump, or a total of $23,800 for both.
The cost of a new chopper pump is estimated to be $18,6001 or a total of $37,200 for
two. The City has determined that, because the repair cost exceeds 50% of the
replacement cost, and because these repairs are being required after only three years of
service, the pumps need to be replaced.
The City's Consulting Engineer has indicated that it would be more cost-effective to
replace the existing chopper pumps with two 10 horsepower submersible pumps, in
conjunction with the installation of an inline grinder. The inline grinder would process
the objectionable material discharged from Presbyterian Homes prior to the material
reaching the pumps. The estimated cost for each 10 horse power submersible pump is
$9/300, or a total of $18/600 for both. The estimated cost of the in-line grinder is
$27,000.
City of Arden Hills . 1245 West Highway 96 . Arden Hills, MN . 55112-5743
Phone 651.792.7800 . Fax 651..634.5137 . www.ci.arden-hills.mn.us
May 6, 2009
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The July, 2008 agreement requires that Presbyterian homes purchase the replacement
pumps. The Arden Hills Code Section J.01.0.08, subd. 4 requires that the in-line grinder
be purchased by Presbyterian Homes.
On April 27, 2009, the Arden Hills City Council directed the City staff to purchase tWO:l.O
horsepower submersible pumpsj and to notify Presbyterian Homes that it needs to pay
the cost of the pumps, as well as install and maintain an in line grinder in the private
section of the sanitary sewer pipe that leads from the Presbyterian Homes facility to
the City's sanitary sewer main. As an alternative related to the in-line grinder, since
Presbyterian Homes is planning a construction project in the near future, the in-line
grinder could be installed in the City's lift station on a temporary basis, and relocated to
the private section of the sanitary sewer line at the time of the planned Presbyterian
Homes construction project. Under either of these optionsl Presbyterian Homes would
be responsible for the cost of purchasing and installing the in-line grinder, the cost of all
maintenance of the in-line grinder, and the cost of relocating the in-line grinder at the
time of the construction project.
The installation of the in-line grinder needs to be done in coordination with the City's
purchase and installation of the two 10 horsepower submersible pumps. The City
anticipates that the installation of the two pumps will be completed by May 29, 2009.
Cc: Mark Meyer, (FO, Presbyterian homes
AGR.EE.MENT
1.0. PARTIES. THIS AGREEM.EN'I' is nlade and entered into to be effective the ~ day
of , 2009 by and between the City of Arden H.ills, a Minnesota statutory city
(the "City") and Presbyterian Homes of Arden Hills, Inc., a Millnesota no.n-profit
corporation ("Presbyterian Homes").
2.0 RECITALS.
A. The City OWllS and operates a sanitary sewer system consisting of sanitary sewer
mains~ lift stations and appurtenances.
B. Lift Station No.7 is a part of the City's sanitary sewer system.
c. The City's sanitary sewer regulations prohibit property owners froIn dischargin.g
cloth, rags and similar m.aterials ("Objectionable Materials") into the City's
sanitary sewer systen1~ or in the alternative, permit the City, at the sole cost of the
property owner, to install and mail1tain traps, grin.ders, and/or interceptors within
the private sanitary sewer system of th.e offending property owner.
D. Presbyterian Homes owns and operates a facility whose occupants discharge
Objection.able Materials into the City's sanitary sewer system.
E. The Objectionable Materials and other sewage flow from the Presbyterian Homes
facility to Lift Station No. 7 where the Objectionable Materials and sewage are
pumped to a higher elevation an.d eventually flow by gravity to the Metropolitan
sanitary sewer interceptor.
F. The Objectionable Materials have clogged the .pumps in Lift Station No.7; have
required th.e City to incur abnormal Inaintenance expenses; and have reduced the
useful life of th.e pumps. All of the above factors have resulted in the recent
replace.ment of two 10-horse power chopper pUlnps with two 10 horse power
submersible pumps which., according to the City Engineer, need to be utilized in
conjunction with an inline grinder in order to adequ.ately handle the Objectionable
Materials.
G. The City has determined t.hat the installation of an inline grinder located either
within Lift Station No.7 or within a portion of the private sanitary sewer system
on the property of Presbyterian .Homes, is necessary to resolve th.e problems
created by t]le discharge of Objectionable Materials froIn the Presbyterian Homes
facilities.
IJ. Presbyterial1 Hom.es intends to constnlct an improvenlent project ("Improvem.ent
Project"), at a future date, and has indicated that it would prefer not to install an
inlille grinder on its own property until such Improvement Project is COllstructed.
The City has agreed to the installation of an inline grinder withill Lift Station No.
7 pursuant to the term.s of this agreement.
3.0 TERMS AN'D CO'NDITIONS. NOW T'}IEREFORE, in consideration of th.e 111utual
undertakings herein expressed, the part.ies agree as follows:
A. Reim.bursement for Newly Installed 10 Horse Power PUlnps.
1. Presbyterian Homes will reimbllrse the City for all cost incurred by the
City to purchase and install the two new 10 horse power pumps in .Lift
Station No.7.
2. The City shall be responsible for routine maintenance and repair expenses
for the 1 0 horse power pumps, and Presbyterian. Homes shall be
responsible for extraordinary maintellaIlCe and repair expenses for the 10
horse power pumps which are attributable to the discharge of
objectionable materials from the Presbyterian HOlnes facility.
B. Reinlbursement for Inlin.e Grinder.
1. Presbyterian Homes will purchase and install, within a reasonable amount
oftirne to be determined by the City, an inline grinder in Lift Station No_ 7
pursuant to plans and specifications approved by the City.
2. After th.e in.itial installation of the inline grinder in Lift Station No.7,
Presbyterian Homes will reimburse the City for all cost incuITed by the
City to maiIltain, repair and/or replace such inline grinder as long as the
inlil1e grinder or a replacement remain within Lift Station No.7.
C. Construction of Presbyterian Homes Improvement Pro1ect. When Presbyterian
Homes constructs its Improvemellt Project, the City will detennil1e if the inline
grinder will remain within Lift Statioll No.7 or be moved to the private sanitary
sewer system on the Presbyterian Homes property.
1. If the il11ine grinder reln.ain's in Lift Station No~ 7, Presbyterian Homes
shall continue to be responsible for the cost of its nlaintenance, repair
and/or replacelnent.
2. If the inline grinder is moved to the private sanitary sewer system on the
Presbyterian Homes property, Presbyterian Homes shall be responsible for
all cost associated with the removal of the inline grillder from Lift Station
No.7 to th.e Presbyterian Hom.es Property and for all cost incurred by the
City to repair Lift Statiol1 No. 7 as a result of the removal of the inline
grinder.
D. Reimbursem.ent of City Cost. Presbyterian Homes shall reimbllrse th.e City for all
cost incurred by the City pursuant to Section 3.0A, B, and C above, withitl 45
days of receipt of an invoice from the City, or in the alternative, if such pa)'lnent
is not received in 45 days, the parties agree th.at the City may assess such cost
against the Presbyterian Homes property. Which assessment shall bear interest at
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the rate of 6.5% per annum and be payable it1 the year following the year in which
the cost was il1.curred by the City.
E. No Waiver. .Nothing herein shall be interpreted as a waiver by the City of the
obligation of Presbyterian Hom.es to cOlnply with all of the City's regulations wi.th
respect to the use of or discharge into the City's sallitary sewer system.
F. Billding Effect. This Agreement shall bind and inure to the benefit of the parties
hereto and their respective successors and pen11itted assigns.
G. Entire Agreement. This Agreement represents the entire agreement and
understanding between the parties concerning the subject matter hereof and
supersedes all prior agreenlents, whetl1er written or oral, relating thereto.
H. Modification and Waiver. N.o purported amendment, modification or waiver of
any provisions 11ereof shall be bi11ding unless set forth in a written document
signed by all parties (in the case of amendments or modifications) or by the party
to be charged thereby (in case of waivers). . Any waiver sh.all be limited to the
circumstance or event specifically referenced in the written waiver document and
shall n.ot be deemed a waiver of any other term thereof or of the same
circumstance or event upon any recurrence thereof.
I. No Third-Party Benefit. Nothing in this Agreement, expressed or implied, is
intended to confer on any person other that the parties to this Agreement or their
permitted successors or assigns, any rights, remedies, obligations, or liabilities
under or by reason of this Agreenlent.
IN WITNESS THEREO.F, tIle parties have exectlted this Agreement as of the day and
year first above written.
CITY OF ARDEN HIL.LS
By:
Stanley Harpstead., its Mayor
ST A T:E OF MINNESOTA )
).SS
COUNTY OF RAMSEY )
On this _ day of , 2009) before me, a notary public
within al1d for said county, personally appeared Stanley Harpstead, to me known to be the Mayor
of the City of Arden Hills, an.d he executed the foregoing instrument and acknowledged that he
executed the same by authority of and on behalf of the City of Ardell Hills.
Notary Public
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PRESBYTERIAN HOMES OF ARDEN HllwJLS,
INC.
By:
~t~.
I' ~ (?
l,..... i'--"
Its:
STATE OF MINNESOTA )
).88
COUNTY OF RAMSEY )
On this 4'"" day of -Jl..lL-U- , 2009, before me, a notary public
within and for said county, personally appeared li~ H..t.t.tLr" , to me
known to be the e.ki4f -A~d> o-Ki[.t...4. of the Presbyterian Homes of Arden Hills, Inc., and
he/she executed the foregoing instrument and acknowledged that he/she executed the same by
authority of and on behalf of the compan.y.
". JANNA R. SEVERANCE
.a . . . Notary. Pu b.ite ..
, Minnesota
. My Commission Expires January 31, 2.010
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