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1b.1. Residential Sumpm Pump Inspections Load/Grant.G I MEMORANDUM 1 F-1 CITY OF 1 � =' CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 o CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 TO: Don Ashworth, City Manager Action by City Administrator Endorse Modified Rejecte — Dat /f 4 IT Date Submitted to Commission FROM: Charles Folch, Director of Public Works ( ��e - to Date Submitted to Council DATE: November 20, 1996 ,/ R 3 S SUBJ: Approve Loan Agreement with MCES for Residential Sump Pump Inspection Program Loan/Grant - Project No. 96 -21 Attached is the Loan/Grant Agreement between the Metropolitan Council Environmental Services (MCES) and the City of Chanhassen for carrying out the proposed residential sump pump inspection program. The MCES has approved a matching fund of $40,000 for the City of Chanhassen towards this project. This is a 50150 matching amount; however, due to the size of the project, the City's share will no doubt exceed the $40,000 match required. This contract describes and provides terms for repayment of this loan once the project has been completed. ' The installment loan repayment schedule is included in Exhibit C. Each year that the City provides the necessary documentation and follow -up inspection, the loan repayment for that year will be forgiven. In essence, after five years of following the program, the loan would be completely forgiven. The ' requirements for this loan transfer to grant provision consists of the City providing appropriate records and documentation to verify that the initial project was completed in accordance with the proposal, and that annual random re- inspections of 20% of the properties found to be in non - compliance be conducted. The ' majority of the follow -up inspections are intended to be conducted from the outside of the structure, therefore minimizing inconvenience to property owners. If the City chooses not to or fails to carry out the record keeping and follow -up re- inspection, repayment of the loan would then be required for the remainder ' of the five -year period. The primary basis for MCES establishing these moneys as a loan/grant type of fund with random follow -up inspection and reporting is to try to insure that this program will be of benefit to the system for at least five years after the initial program has been completed. ' It is therefore recommended that the City Council approve Loan Agreement No. C -3208 between the Metropolitan Council and the City of Chanhassen for the Residential Sump Pump Inspection Program, ' Project No. 96 -21. Attachment: Agreement No. C -3208 ' c: Anita Benson, Project Engineer Kyle Colvin, MCES Craig Anderson, Buchen Environmental Services, Inc. g:�en&har1es pump loan- grant.doc Loan No. INFLOW/INFILTRATION CONTROL PROGRAM , LOAN AGREEMENT BETWEEN THE METROPOLITAN COUNCIL AND CITY OF CHANHASSEN THIS AGREEMENT is made and entered into by and between the Metropolitan Council ' (the 'Council") and City of Chanhassen (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 ( 6 15") 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 WHEREAS, 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 WHEREAS, 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 WHEREAS the Lendee is eligible- receive an Inflow/Infiltration Control Pro g r am Loan , gl t� and has submitted an application for a such a loan; and VfMEREAS, the Council has reviewed the application and desires to assist the Lendee by the award of an Inflow/Infiltration Control Program Loan. NOW, THEREFORE, 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. IL AUTHORIZED USE OF LOAN PROCEEDS AND MATCHING 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 of loan funds is permitted. 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. IIL 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. 3 � The Council will bear no responsibility for cost overruns which may be incurred by the Lendee in performance of the Loan Project. 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 rive percent 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 of loan repayments, along with accrued interest. This schedule assumes: 1) that the Initial Principal and Later Principal Ll 1 n 1 11 4 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. If an of the assumptions in the previous paragraph va from the actual amounts Y P P vary 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 of loan 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. e. 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. ACCOUNTING 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, n L F i 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 loan funds and the Lendee's Match required by this agreement, including all project documents, 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 will have access to all such books, records, documents and 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 of loan 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 1 1 1 information obtained during and as a result of the Loan Project: 2 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 1/1 removed from the system, an estimate of I/I reduced or removed as a result of the project, a list of potential follow -up project(s) in other areas to reduce or eliminate In sources, and a cost - benefit analysis of the Loan Project based on the estimated I/I 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 Copies. [Deleted] 5.05 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. 5.06 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. VL PROJECT ACTIVITY PERIOD/LOAN FORGIVENESS PROVISIONS 6.01 Project Activity ivity Period. The Project Activity Period will consist of the time ' period from August 16, 1996 (the date this loan was awarded by the Council) until July 31, 1998. 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 o� 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." �J 6.02 Inflow/Infiltration 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 in his/her professional judgment and based on inspections carried out under the supervision of the Engineer 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. 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 and after review of the Lendee certification, 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 forgiven 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 and after review of the Lendee certification, 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 r. n �J D O 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. VIL GENERAL CONDITIONS ■ 7.01 Amendments. The terms of this agreement may be changed by mutual agreement of the parties. Such changes will be effective only upon the execution of written amendments signed by authorized representatives of the Council and the Lendee. 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 indemnify, ' protect and hold harmless the Council, its members, officers, employees, and agents, from any liabilities, obligations, losses, damages, claims, injuries, penalties, costs and expenses, including reasonable attorney's fees, arising out of the performance of the Loan Project by Lendee or Lendee's employees, agents, or subcontractors. 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. VIL GENERAL CONDITIONS ■ 7.01 Amendments. The terms of this agreement may be changed by mutual agreement of the parties. Such changes will be effective only upon the execution of written amendments signed by authorized representatives of the Council and the Lendee. 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 indemnify, ' protect and hold harmless the Council, its members, officers, employees, and agents, from any liabilities, obligations, losses, damages, claims, injuries, penalties, costs and expenses, including reasonable attorney's fees, arising out of the performance of the Loan Project by Lendee or Lendee's employees, agents, or subcontractors. f 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 the Loan Project because of race, color, creed, religion, sex, sexual orientation, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, age, or national origin, and further agrees to take affirmative action so that applicants and employees are treated equally with respect to all aspects of employment and 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 Loan Project. 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 of all 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 of loss 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 1* 1 7 Ll Id 1 C I I 111 � iJ I u 10 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 authorized agent. Unless otherwise approved by the Council's authorized agent, the Lendee will remit to the Council a proportional amount of the fair market value of the item(s), if any, 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. 1 11 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their authorized representatives on the dates set forth below. Date: By: Title: Date: By: Title: METROPOLITAN COUNCIL Date: By: Regional Administrator Approved as to form: Metropolitan Council Office of General Counsel EXHIBIT A - PROJECT ACTIVITIES & SCOPE CITY OF CHANHASSEN The project activities and scope proposed by the city of Chanhassen includes the inspection for, and the ordinance enforcement of, illegal sump pump connections within the City. The sump pump inspection project is to encompass the entire City and entail the inspection of every residential home connected to the sanitary sewer system. Activities within the project scope include: 1. Select sump pump inspection contractor. 2. Implement public information and education campaigns notifying residents of sump pump inspections and the need to enforce existing sump pump disconnection ordinance. Campaign to include mailings, news articles, and public information meetings. 3. Conduct visual inspections in every residential home connected to City's sewer system. There are an estimated 5000 homes connected to the sanitary system each requiring an inspection. Where sump pumps are found to be connected to the sanitary sewer, require that they are disconnected. 4. Conduct visual re- inspections in those residential homes initially found to have a sump pump illegally connected to the sanitary sewer. 5. Upon completion of all 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 acknowledgement 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 contracted service vendors and consultant services. EXHIBIT B - PROJECT BUDGET CITY OF CHANHASSEN ' Total project as outlined in the City's project program activities has been estimated at $125,000. ' Of this amount the City proposes to finance approximately 68% or $85,000 using City funds, and finance the remaining 32% using the $40,000 loan. Total project cost estimate based on 5000 , home inspections at a cost of $25 per inspection. Project cost estimate of $125,000 excludes costs for re inspection, public educationrnformation campaign, and other project administration costs. I A project cost estimation has been summarized in a letter from the City, dated July 31, 1996 and is attached an hereby part of Exhibit B. I (See attached summarized study cost letter) I I � u CITY OF CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 July 31, 1996 Mr. William G. Moore ' General Manager - Waste Water Services Dept. Metropolitan Council Environmental Services 230 E. 5 Street ' St- Paul, MN 55101 W � � V CZ � ��! Re: MCES Loan Application for Infiltration/Inflow Reduction Funding for Chanhassen ' Residential Sump Pump Inspection Program - PW342 1 Dear Mr. Moore: On behalf of the City of Chanhassen I am pleased to receive your recent letter indicating that the Metropolitan Council has authorized the City a matching loan amount of $40,000 for the infiltration/inflow removal program consisting of the city -wide sump pump inspection. Your letter indicated that you would like two additional items of information. The first being an itemized breakdown of the costs associated with the proposed program and second, a proposal for the method of certifying the project on the third and fifth anniversary dates. In terms of an itemized breakdown of the costs associated with the proposed project, that information is not available at this time. Before the application submittal, it was estimated that appm xim4tely 5,000 homes would need to be inspected at an estimated cost. of $25 per home. This equates to a contract cost of approximately $125,000. There will also be some costs for printing and publishing of educational materials. Since the dollar value in this contract is over $100,000, the City is required to solicit formal proposals and advertise for bids. The bid proposals are scheduled to be received by the end of the day on Tuesday, August 27, 1996 with a subsequent recommended contract award to the City Council at their regular meeting on Monday, September 9, 1996. Formal costs associated with this project will not be known until a firm is selected. The second request is for a proposal for the method of certifying the project on the third and fifth anniversary date. The City would propose that a random inspection be conducted of 5% of the homes that were originally found to be in compliance and 10% of the homes listed as originally found to be not in compliance with City Ordinance Section 19 -44 regarding sump pump r-, IJ Mr. William G. Moore July 31, 1996 Page 2 discharges. This inspection can be conducted by viewing the external discharge point from the home structure to see that it is indeed still functioning. Any follow up inspections found not to be in conformance will be addressed with the property owners to rectify the situation. For your information, I have also attached a copy of the "draft" Request for Proposal for the program. If there are any other questions or comments that you have in the meantime, please feel free to contact me at 937 -1900, ext. 114. Sincerely, E OF C14ANHAS EN Charles D. Folch, P.E. Director of Public Works CDF. jms c: Jerry Boucher, Utility Superintendent Anita Benson, Project Engineer Kyle Covin, MCES g:' eug\chazles Vetters\sumppump.ltr.doc 1 1 1 1 n 1 J ' CITY OF CHANHASSEN REQUEST.FOR PROPOSAL FOR ' PRIVATE PROPERTY SUMP PUMP INSPECTION PROGRAM Section I. Information on Proposals The City of Chanhassen is requesting proposals from experienced firms to provide expertise to ' assist in the development of a program and conduct the inspection of all private property sump pump connections to the City's sanitary sewer system. Three copies of the proposal should be submitted to: Charles D. Folch, P.E. Director of Public Works ' City of Chanhassen 690 Coulter Drive Chanhassen, MN 55317 ' Proposals must be received no later than: Tuesday, August 27, 1996, 4:30 p.m. The Public Works Director is scheduled to make a recommendation on the preferred proposal to the City Council on Monday, September 9, 1996. Section II. Minimum Requirements for Submitting a Proposal To be eligible to qualify as a consulting and inspecting firm, the following minimum requirements must be met: A. The firm must have expertise necessary to conduct and complete a highly visible and successful education and public relations campaign regarding the sump pump inspection program. B. The firm must demonstrate that it has the necessary trained personnel to effectively conduct the house -to -house sump pump inspection program. C. The firm must have prior experience conducting sump pump programs in cities within the state of Minnesota. F F� Section 1H. Scope A. Information/Education I. Conduct two informational meetings with the general public to discuss the program and answer questions. 2. Attend City Council meetings as necessary. 3. Conduct meeting with local plumbers and hardware store owners to describe the program and educate on compliance requirements. 4. Develop informational packets and newsletters for distribution to all property owners served by city sanitary sewer (printing and distribution to be paid by the City). 5. Assist the City in newspaper advertising and also cable television information programming if implemented (advertising paid by the City). B. Inspection I. Inspect and reinspect (if necessary) all properties in the city of Chanhassen that have municipal sanitary sewer service (approximately 5,000 homes). 2. Fill out inspection forms on each property, place notices in each basement, and seal all baskets without a sump pump (cost of forms, mailings, and notices to be paid by City). 3. Overall administration of the program including but not limited to scheduling appointments, responding to all phone calls, and providing technical advice as needed. 4. Homeowners found to be in violation of the City's Sump Pump Ordinance Section 19- 44 or otherwise out of compliance shall be scheduled for reinspection at a later date by the firm. C Recordkeeping 1. The firm shall maintain a database compatible to City software of all homes inspected, the dates of inspection, and follow -up inspections if necessary. 2. The firm shall supply the City with a. list of addresses and a map showing which properties have a sump pump, basket only or no basket, and indications of water in the basket. When the inspection in completed, a Certificate of Compliance shall be signed and issued to all properties with a copy sent to the City. Section IV. Proposal Submittals A. The cost of each item within the work scope as listed above shall be included in the proposal. The cost can be submitted either on a cost per home basis or on an hourly rate with an estimated number of hours to complete the program. If the hourly rate method is chosen, the firm shall also provide a maximum (not to exceed) dollar amount to complete the program. B. The proposals shall also include detailed narrative information as to the firm's experience on similar projects with client references, the names and qualifications of staff who will be assigned to the project, a brief discussion on how the program will be approached, program timetable and estimated completion date. C. Proposals will be received by the City until 4:30 p.m. on Tuesday, August 27, 1996. Section V. Evaluation of Proposals ' A. The proposals received will be evaluated to determine which one best meets the objectives of the program and the needs of the City. If necessary, the City may also choose to conduct oral interviews to assist in making the final selection. Key Criteria: ' I. Past record of experience and performance 2. Qualifications of staff assigned to the program ' 3. Approach to the program 4. Cost 5. Time schedule to complete the project ' 6. References Based upon _review and evaluation, the Public Works Director will recommend to the City Council the appointment of the firm judged to be the most responsive and responsible proposal for the services requested. The final decision with respect to the appointment will be made by the City Council. It is anticipated that the reconunendation will be submitted to the City Council for consideration on September 9, 1996. ' The City reserves the right to reject any and all proposals, request additional information from any and all proposers, and phase and /or adjust the size of the project so as to stay within budgetary limitations. XWs1\voM- 9N1 -10&N n—p.rfp doc 1 Exhibit C - Preliminary Loan Repayment Schedule Metropolitan Council Environmental Services Inflow/Infiltration Control LOAN PROGRAM Total Loan Amount $40 ' 000 Interest Rate 5 "Initial Principal" Schedule: Disbursement 1 st Annual Installment 2nd Annual Installment 3rd Annual Installment 4th Annual Installment 5th Annual Installment "Later Principal" Schedule Disbursement 1 st Annual Installment 2nd Annual Installment 3rd Annual Installment 4th Annual Installment 5th Annual Installment Accrual Date Effective Disburse 11/18/96 7/31/98 $ 20,000.00 7/31/99 7/31/00 7/31/01 7/31/02 7/31/03 Accrual Date Effective Disburse 10/1/98 10/1/98 $ 20,000.00 7/31/99 7/31/00 7/31/01 7/31/02 7/31/03 Project Completion Date 7/31/98 Outstanding Payments Principal Interest Balance Payments Principal 4,582.84 3,749.51 4,582.84 3,770.32 4,582.84 3,958.83 4,582.84 4,156.77 4,582.80 4,364.57 9,202.34 Total Expected Annual Payment --- ______________ ______> NOTE: Calculations based on 30 -day month convention. Prepared By MCES 11/14/96 2:09 PM Outstanding Interest Balance - 20,000.00 833.33 20,000.00 4,619.50 3,619.50 1,000.00 16,380.50 4,619.50 3,800.47 819.03 12,580.03 4,619.50 3,990.50 629.00 8,589.53 4,619.50 4,190.02 429.48 4,399.51 4,619.49 4,399.51 219.98 - Payments Principal 4,582.84 3,749.51 4,582.84 3,770.32 4,582.84 3,958.83 4,582.84 4,156.77 4,582.80 4,364.57 9,202.34 Total Expected Annual Payment --- ______________ ______> NOTE: Calculations based on 30 -day month convention. Prepared By MCES 11/14/96 2:09 PM Outstanding Interest Balance - 20,000.00 833.33 16,250.49 812.52 12,480.17 624.01 8,521.34 426.07 4,364.57 218.23 - EX11BIT_CY S lid = M M = = M = M = Illlli = M M M M = M L n I I EXHIBIT D -- CERTIFICATION REQUIREMENTS CLEAR WATER DISCONNECTION'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 of 20% 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 of 20% 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. Anc-S)