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5/17/2021 - City Council - Work Session - Agendas��tnS���J L�QU�SW On Lake Minnetonka CITY OF SPRING PARK WORK SESSION AGENDA MAY 17, 2021 — 6:00 PM SPRING PARK CITY HALL (Work Session discussion times are approximate) 6:00 — Black Lake Road Preliminau Feasibilily Report 2. 6:15 — Interim Use Permit Inspections Discussion 3. 6:2 — Public Works Discussion 4. 6:4 — Miscellaneous 5. 6.50 — AdJourn PRELIMINARY FEASIBILITY AND COST ESTIMATE FOR IMPROVEMENT PROJECT NO. 21963 BLACK LAKE ROAD STREET AND UTILITY IMPROVEMENTS CITY OF SPRING PARK, MINNESOTA May 14, 2021 Street reconstruction, concrete curb and gutter, storm sewer, sanitary sewer rehabilitation, water main, fitting, valves, hydrants, services, and appurtenant construction. I hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. Corey Bergman, PE City Engineer Minn. Reg. No. 45853 SPRING PARK On U4'11fnneto"f* CITY OF Spring Park 4349 Warren Ave Spring Park, Minnesota 55384 (952) 471-9051 BPROJECTSU1963WESIGMCOVER SHEET.00C jSambatek EXECUTIVE SUMMARY The proposed project will include: • Reconstruction of Black Lake Road from Shoreline Drive (CSAH-15) to 2494 Black Lake road. • Utility improvements in drainage. • Sanitary and Watermain Utility improvements in Black Lake Road Right -of -Way Proposed improvements include new concrete curb and gutter, new storm sewer and sanitary castings and rings, storm sewer and structure improvements, sanitary sewer rehabilitation, street reconstruction, water main, fittings, valves, hydrants, services and appurtenant construction. The estimated cost of improvements is $2,125,000. A portion of the project is eligible to be assessed over a ten-year period. Rehabilitation of the existing sanitary sewer, water main, and related appurtenances including replacement of castings, rings, valves, and hydrants, and fittings and water main reconstruction and appurtenances may be paid for in part by City Sewer and Water Funds. The City may be eligible for reimbursement for I&I improvements through the MCES I&I Grant. What is not covered by the aforementioned payment options will be covered by the City's General Obligation Funds and Bonding. 1. PROJECT AREA CHARACTERISTICS Black Lake Road Rig ht of Way The current road width varies through this corridor but is generally 16 feet wide. State fire code guidance on minimum roadway width for two-way traffic is 20 ft. There are areas of right of way encroachment by driveways and landscaping of the residence along Black Lake Road see Figure 1. The existing right of way appears to be 16 feet wide. As -built documents indicate an additional 10-feet of permanent easement to the east side of the roadway. Easements and right of way areas would need to be confirmed during the feasibility of the project. Right of way acquisitions may need to be conducted to achieve a width of 20 ft over the entirety of Black Lake Road. City of Spring Park - Feasibility Report FRA 2. PROPOSED IMPROVEMENTS Sanitary Sewer and Water Main The 8-inch Vitrified Clay Pipe (VCP) sanitary sewer and 6-inch Cast Iron Pipe (CIP) water main exist along the approximate centerline of Black Lake Road. Based on project records and sanitary sewer televising reports, there have been minimal improvements made to the sanitary sewer, water main and storm sewer systems since their installation in the mid-1960s. Due to the proximity of the lake and the limited space along Black Lake Road, cured in place pipe (CIPP) is proposed for sanitary sewer improvements. As it is a minimally invasive process that will limit the disturbance to the property of the homeowners and traveling public. The project will include cured in place manhole (Cl PM) to further limit I&I. In order to maintain a minimal impact on property owners while improving the water main, we recommended that the 6-inch CIP water main be replaced using Pipe Bursting. Other trenchless technologies were considered such as CIPP lining and Spray in Place Lining (SIPP) but were deemed not adequate solutions for the following reasons. CIPP would lower the flow capacity of the water main below the required levels for proper fire protection. SIPP does not increase the structural integrity of the existing pipe and therefore would not address the recent failures in the water main along Black Lake Road. Other trenchless technologies for watermain replacement will continue to be explored. The water main on Black Lake Road is fed from three locations. The Pipe Bursting operation will replace the CIP water main from Shoreline Drive (TH15) to House number 2494 and approximately 1 Oft of the lines feeding the Black Lake Road water main from Interlachen Road via Channel Road and Rose Hill Drive. The project will include the replacement of gate valves and hydrants in addition to corporation stops, services from main to property line, and curb stop box and valves. Minnesota Department of Health will conduct a plan review of the project as it pertains to water main improvements. City of Spring Pads - Feasibility Report FR-2 Street Construction Black Lake Road The existing roadway width varies throughout the corridor but is generally 16 feet wide. State fire code guidance on minimum roadway width for two- way traffic is 20 ft. Therefore, road widening will be necessary. As indicated in the ROW paragraph above, there are existing encroachments along the corridor which will be considered in the final design of the project. A typical road width of 20-feet from curb face to face will be the goal but will be adjusted to 18-feet wide as necessary to avoid existing obstacles. The existing street section will be reconstructed with a new typical section for 7-ton design. The new street section will include a ribbon concrete curb and gutter. *.0 mown MAN*.� 4-. t/Y R ll�Oli QRE9 ! Giff 11 r■m,uann� • t y ■ 01101�, "'° yr irww n•.f T r 1r l r IINLLlr MIR�It s�—�a City of Spring Park - Feasibilrty Report FR-3 Storm Drainage Black Lake Road The project will include installation of new storm sewer pipe and catch basins at project low points. The new system will direct and capture flow and address spread issues in high intensity rain events. Stormwater treatment devices are proposed to aid in the removal of pollutants prior to discharging to the lake. Revised MS4 requirements that go into effect for the 2022 construction season require treatment of existing impervious areas. Due to site constraints which include limited ROW areas, these devices are intended to provide this required treatment. The storm sewer will be designed to current. City standards for a five-year storm event. No changes to the existing drainage patterns are proposed. 3. IMPACT OF PROPOSED IMPROVEMENTS The proposed street improvements will not create new maintenance issues for the Public Works staff. The City will work with affected property owners and the Contractor to resolve any situations that may arise during construction. Short term traffic delays, construction dust and noise, and erosion may occur. Efforts to minimize these impacts include the restriction of work hours and dust and erosion control measures included in the project. Any disruptions that occur to existing yards, sprinkler systems, and driveways will be restored. City of Spring Park - Feasibility Report FR-4 SUMMARY OF ESTIMATED PROJECT COSTS AND FUNDING Project: 21963 Description: Black Lake Road Street and Utility Improvements Cost Item Parcent Amount Construction Costs Street and Drainage improvements $650,000.00 Water and Sanitary Sewer Improvements $900,000.00 Right of Way/Easement $150,000.00 Total Construction Costs $1,700,000.00 Administrative Costs Engineering 20% $340,000.00 Assessment 1 % $17,000.00 Legal 1 % $17,000.00 Administration 1 % $17,000.00 Capitalized Interest 1% $17,000.00 Bonding 1 % $17,000.00 Total Administrative Costs $425,000.00 TOTAL ESTIMATED PROJECT COSTS $2,126,000.00 City of Spring Park - Feasibility Report FR-5 Street and Storm Sam6atek Improvements o s iW BONNf�N This map me M.*d using Sarnballeles YMMS JGM). t Is.ompaamabwr SyaMma �OISJ, i Is a compllatlan of Dale: 05/1212021 IOMrm"- end dots from vatloue sources. The map b not a aerreyed Spring Park Minnesota p Fl �e Project NumW. 21 m or legally recorded map and a Mended ba Mad as s reference. Bamba table t for NOW: reaponelble any haeeureclea contained herein. k L1 �� a� i .fir _ '�� • - Y' ram•. r 3' Leaend O Hydrants Sanitary Line Size A Gate Valve 10" _ —Proposed Watermain Pipebursting-4" CIP --Proposed Sanitary CIPP lining 8" Water System Main Line Sanitary Manhole Y ■ Sanitary Lift Station Parcels Service Lines Water and Sewer Utility Improvements Spring Park Minnesota R re 2 a ° eu tro �s Sambatek YhY msptaae AxeaNd ueinp Seenbatales System(0Geaynph�nphOon°r $Yelerm (GIS), 1 u a °°mpMagan d bknuff m and data torn various aeun ss. Tramp Is note surveyed mp and to °f��°„°a eta berused as, a ogn nce. �mbstakis nattained ribhn. any Inscwracha Contained heroin. Date: 05/12/2021 Project Number. 2ed 1963 NOieS: STAFF MEMO PUBLIC WORKS DISCUSSION & OPTIONS On Lake Minnetonka 1. BACKGROUND: At the May 3rd City Council meeting a motion to approve the Orono public works proposal failed on a 3-2 vote. The Council discussed next steps and asked staff to provide a list of options for the Council to move forward with. 2. DISCUSSION: Option 1—Renew PeopleService Contract: Approve the proposed contract as presented with a 5-year term that would expire 8/31/2026. If the City chooses not to renew, the terms of the current contract specify that the City must notify PeopleService of our intent to terminate the contract before Thursday, June 3' 2021. Option 2—Automatic PeopleService Rollover: If no action is taken by the Council the terms of the current agreement state that the contract will automatically renew for a 1- year increment, which would cover services until 8131 /2022. It should be noted that PeopleService have suggested that they would move to terminate the contract if the City pursued this option. Option 3—Alternate Public Works: In discussions with the City of Mound following the most recent Council meeting, their City Manager noted that it would be highly unlikely that they would be able to provide a contract with a similar scope of coverage at a price point equal to or lower than the Orono proposal. Based on rough estimates and personnel assumptions Eric believed that a more realistic proposal from Mound would be approximately $20,000 higher than Orono's proposal. Option 4—Reconsider Orono Public Works: Finally, the Council could reconsider the Orono public works proposal. Due to generally established parliamentarian rules of order, this could only be accomplished if one of the dissenting voters on the May 3`d motion (Chase, Hoffman, or Horton) were to make a motion for reconsideration of the proposal. PeopleService City of Orono Estimated Annual Base service Costs Base Proposal Cost $89,460 $191,000 Banners/Fla s/Decorations $11,932 Included Sewer Jettin elevisin $20883 Included Minor Street Maintenance $2 424 included Sreet Sweeping $4 432 included Engineering (Limited in $10,000 Orono performs limited engineering in-house and would Scope) perform the same scope of services for Spring Park. Significant capital projects (i.e. road reconstruction, replacement of utilities, etc.) would still require the use of the City's primary engineering farm. (Estimated Annual Savings +/- $10,000) Estimated Annual Emergency Service Costs Emergency Watermain PeopleService notifies a contractor of the break The Process is similar, although Orono helps with hauling Break (2 per year on Contractor performs excavation, pipe repair, debris haul away of debris, which would result in savings of +/- average) away, and restoration Aver -age cost is roughly $13,500 $2,500 per incident (Estimated Annual Savings per break $5 0Q0) $27,000 Annually $22,000 Annually Emergency Curb Stop Dig (1 PeopleService relies exclusively on contractors to Orono would perform these as part of the covered 2 per year on average) perform these services Costs average roughly $3,000 per services (Estimated Annual Savings +/- $4,500) dig, but can vary significantly depending on the difficulty of the job $4,500 Annually Included Storm Debris & Park .lean storm clean-up is tvprcally a joint effort performed by Orono would perform storm clean-up as part of the up (1 per vear on average) Shawn and contractors as needed It is not a significant covered services IEstimated Annual Savings +/- $1=) cost for the Crty overall. $2,500Annually Included Annual rstlroz+ed "u?.,e" c­ is �172,131.00 52i3,uuuelw Miscellaneous "Value" Related Considerations Employee Turnover PeopleSeiice provides one dedicated operator The City of Orono public works department consists of (currently Shawn Wilson) who is responsible for the daily nine care employees with two employees at less than public works operations and maintenance. Other area one year of service, five employees with four to six years operators receive limited training on Spring Park's system of service, and two employees with thirty+ years of during times when Shawn requests assistance and when service to the City The average length of service for the it is Shawn's weekend off for being on -call. Shawn is the entire department is currently around nine years third operator the City has had through PeopleService over the 4.5 years the contract has been in place. Turnover Cost $20,000 Each Time (*Note, Calculation is based on Work Institute 2020 Retention Report) Average of .6 turnovers/year = $12,000 Annualized Cost Average of 1 turnover/year among 10 employees = $2,000 Annualized Cost institutional Knowledge Shawn has 3 years of service in Spring Park, and has The City of Orono has provided after hours coverage foi learned a great deal about our systems in that time. If several years before the City moved to PeopleService in Shawn were to leave and a new operator started it would 2016 Additionally, DJ has 30+ years of work experience take approximately 1-2 years to get them to a point working foi the City in either a part-time or full-time where they can perform the fundamental tasks of the capacity and knows every facet of the Co's system. It position without significant input from other City staff, should be noted that D3 will not be solely dedicated to and fully 3+ years before they know they City at a level of Spring Park, although his experience and knowledge will detail needed to be "self-sufficient" in the position. obviously be relied upon by the other Orono employees Longevity Value Credit $1,000 for each year of service (Capped at 20 years) Equipment & Capabilities PeopleService does not perform, nor do they have the The City of Orono has a substantial inventory of heavy equipment to perform, "heavy" work as they essentially equipment and machinery as they are generally provide contractor oversight for any projects that require considered a "full -service" city that performs a majority large machinery and heavy equipment. of their own work, while still relying on contractors to assist with projects as necessary, or when conditions provide an economic benefit by contracting. Equipment Value Credit General Value to Residents and Businesses (*Note* Lord Fletcher's Restaurant Sewer Incident) F 1 ($1 i Estimated Total "-lard" + " aloe" Cost to the City CITY OF ORONO Street Address: ' Mailing Address: j Telephone (95.2) 249-4600 2750 Kelley Parkway P.O. Box 66 I Fax (9S2) 249-4616 Orono, MN $5356 Crystal Bay, MN 55323 www.d.oronn.mn.us January 20, 2021 Dan Tolsma City Administrator City of Spring Park 4349 Warren Avenue Spring Park, MN 55384 RE: Provision of Public Works Support by the City of Orono for the City of Spring park Dear Mr. Tolsma, 1. Purpose. The purpose of this memorandum is to outline the framework, provide a revised preliminary estimate and to get feedback from the City of Spring Park on the same. 2. Background. In December of 2019 Spring Park staff reached out to Orono staff to explore the possibility of the City of Orono providing public works support to Spring Park. The City of Spring Park currently contracts out their public works support. Their primary contract is with People Service which expires in September of 2021. Orono provided an initial estimate in July 2020. Spring Park reached out in December of 2020 requesting a revised estimate without snow and ice treatment included. 3. Framework To move the idea forward to a possible agreement we propose the following pleased approach. Phase 1 December 2019 - Orono public works analyze the requirements, expectations and June 2020 estimate the resources necessary to provide the supporL Phase 2 July 2020 — City Administrators work with city councils to determine the February 2020 political will to enter into a Service agreement and negotiates broad terms of an agreement Phase 3 February 2021- Staff develop an agreement and bring to Councils for approval March 2021 Phase 4 April 2021- Orono PW hires and trains necessary staff Se tember 2021 Phase S 1 September 2021- Orono Provides PW Support to S ' Park 4. SnrfIIa Park Nfrastroctore Rnmmsirw Water System Sewer System 1 Water Plant 6 Lift Stations 1 Water Tower 6 Miles Of Sewer Main 3 Wells 132 Manholes 6 Miles Of Water Main Servicing 364 Properties Servicing 364 Properties Streets Stormwater 2.4 Miles of Paved Streets 12500 Feet of Sidewalk 79 Street Lights (Decorative) 46 Street Lights (Utility) 300 feet of Retaining Wall 8700 Feet of Storm Sewer 43 Catch basins 56 Outlets 26 Manholes Parks Facilities 3 Parks Facilities- 1 City Hall 5. Service Levels and Types. To estimate the work effort required to provide service, we assessed the types of service that would be required. Throughout the analysis we made the assumption that the level of service provided to Spring Park would be the same as provided for the City of Orono. The types of service include: routine day to day maintenance and operations service; emergency response service; and special project/ capital improvement service. For the routine service we would provide an annual fined rate. For special project services we will provide an hourly rate based on the employee and equipment necessary to provide those services. a. Routine Maintenance and Operations. Routine services would include those currently being provided by the Spring Park People Service contract as well as street sweeping, pothole repair, and sewer cleaning. A list of these services and estimated workload are attached. The labor and equipment costs would be at an annual fixed cost as part of the agreement. Any supplies and materials would be passed through or billed directly to Spring Park at cost. b. Emergency/ Call Out Services. Orono would provide On -Call coverage to Spring Park. The standby costs and up tol00 hours of overtime per year associated with this service would be included in the base contract fee. Any call outs beyond the 100 hours per year will be billed on a case by case basis at the Orono overtime rates. Any materials or contracted services would be passed through or billed directly to Spring Park at cost. c. Contracted Services. To optimize the service provided it would make most sense for the two cities to use the same vendors for contracted services. Examples include: Park Mowing, Lift station Annual Services, and Generator service. Orono staff proposes that as any of the Orono service contracts reach its end/ renegotiation period we would coordinate with Spring Park to see if they would like to be included in an amendment to the contract. d. Special Project/ Capital Improvement Service will include providing support to Spring Park's staff, engineers and contractors during the planning and execution of capital improvement projects and major maintenance projects. Service will include providing access to sites, and providing adjustments and operation of systems to facilitate construction. e. Other Services. Other services that could be included would be facilities/custodial services for the city hall, and utility billing support. 6. Work Flow Management and Tracldng. The City of Orono uses the Cartegraph software system to perform asset management and public works workflow management. Spring Park will be required as part of the agreement to use the system. It will facilitate communication and allow Orono to provide Spring Park with more detailed reports of work effort and activities. 7. Cost Analysis. Our estimate for providing support to Spring Park is $ 191,000 per year. This would cover the Routine maintenance and operations listed in Paragraph Sa, the On Call portion of Paragraph5b and any asset management license and IT maintenance fees. This cost will be adjusted annually based on the cost of living percentage increases in Orono's Public works employees Labor Agreement. a. Pass Though Costs. As described in S above any call outs beyond the 100 .hours included in the base rate would be billed at the applicable Orono standard or overtime labor and equipment rates. Any supplies and materials would be passed through or billed directly to Spring Park at cost. Any City Engineer Work beyond administering the contract and basic capital programing advice would be billed at the applicable labor rate. Any contracted work would be passed through. Any agreement would need to identify the contracting threshold Orono public works would be authorized to make on Spring Park's behalf in emergency situations (example afterhours Watermain break repairs). b. Other Costs. To manage workflow and account for effort expended supporting Spring Park, the city's assets will need to be added to Orono's GIS and asset management systems. Currently Orono uses ESRI for GIS and Cartegraph for asset management with Bolton and Menk providing GIS tech consultant services. Any implementation costs to get the GIS data transferred and formatted to work properly would be passed through at cost. If Spring Park wishes to have access or other GIS capabilities then a separate contract between Spring Park and Orono's GIS provider would be necessary with Spring Park guaranteeing Access to the data to Orono for the asset and work management function to operate properly. 8. Impact to Orono. Based on our initial assessment to provide the necessary support to Spring Park the City of Orono would need to add one full time maintenance worker to the department as well as truck. The Public Works Department would need additional administrative support to administer the agreement. 9. Transition. If the two cities agree to proceed, a period of preparation and transition will be required. The City of Orono would need to complete hiring action for additional personnel, procurement of equipment and familiarization training for all employees on Spring Paris's infrastructure. Sincerely, &2 V0—,� Ron Olson City Administrator City of Orono OPERATION AND MAINTENANCE AGREEMENT This Operation and Maintenance Agreement (the "Agreement") dated as of 2021, is between the City of Spring Park, Minnesota, a municipal corporation (the "Owner"), whose address is 4349 Warren Avenue, Spring Park, Minnesota 55384, and PEOPLESERVICE, INC., and its successors and assigns ("People Service"), whose address is 209 South 19th Street, Suite 555, Omaha, Nebraska 68102-1758. RECITALS: WHEREAS, Owner is the owner of a municipal water and wastewater treatment plant as described in Exhibit A to this Agreement (the "Facilities"); and WHEREAS, Owner desires to engage PeopleService to operate and maintain the Facilities on behalf of Owner and PeopleService desires to accept such engagement, all upon the terms and conditions hereafter set forth; and WHEREAS, Owner is authorized by law to enter into this Agreement. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties agree as follows: ARTICLE I - SCOPE OF SERVICES 1.1 Commencing on September 1, 2021, or such other date mutually acceptable in writing to PeopleService and Owner (the "Effective Date"), PeopleService will provide all routine operation and maintenance of Owners Facilities on a 7 day per week basis within the design capacity of the Facilities as described in Exhibit A to this Agreement ("Description of Facilities"). The routine operation and maintenance services to be provided by PeopleService are further described in Exhibit B of this Agreement. 1.2 Commencing with the Effective Date of this Agreement, PeopleService shall continue the use of its standard operating procedures and preventive maintenance and process control programs, including documentation of operation and maintenance procedures conducted for the water and wastewater utility system and a written analysis of the condition of all equipment in the Facilities together with a prioritized list of needed repairs. Such documentation and records shall be available for inspection and copying by Owner at all reasonable times. 1.3 PeopleService will be responsible for expenses incurred in the routine operation and maintenance of the Facilities, including personnel services, communication services (cell phones for its operators), materials, supplies, contracted services, insurance, and equipment maintenance and repair (subject to the limitations contained in Sections 1.4 and 2.1.b of this Agreement). 1.4 PeopleService shall provide all labor to complete the required preventative maintenance to preserve the existing life of all assigned equipment and vehicles of the Facilities. The Owner will bear the expense of parts, supplies and outside contractors required to complete any corrective maintenance and repair of all equipment, physical facilities, and vehicles assigned for PeopleService's use. In performing maintenance and repairs, PeopleService will perform in an economical manner and make all reasonable efforts to minimize the amount spent while remaining in compliance with all applicable regulations. 1.5 PeopleService will provide properly certified employees for the staffing of Facilities. Backup services will be provided by PeopleService corporate personnel. In addition, PeopleService will be on call 24 hours per day, 7 days per week, for emergency situations. 1.6 PeopleService shall advise Owner and serve as Owner's liaison to regulatory agencies and industrial users in matters related to the operation of the Facilities. However, PeopleService will not act as, or provide, legal counsel in this capacity. 2 1.7 PeopleService will supervise all regulatory compliance and financial transactions pertaining to the day-to-day operation of the Facilities. Subject to the limitations of this Section 1.7, PeopleService shall operate the Facilities in compliance with state and federal regulatory requirements. PeopleService will pay all fines imposed for process upsets and violation of discharge limits unless the process upsets or violations are attributable to: (a) Flows or pollutants which are not within the Design Capabilities of the Facilities; pollutants include, but are not limited to soluble oil, heavy metals, excessive suspended solids and excessive organic loadings; (b) The malfunction or failure of equipment which is not solely due to the negligent acts, errors, or omissions of PeopleService; (c) Construction activities which are undertaken to improve the wastewater treatment process but which are beyond the operating scope of services of PeopleService as delineated in this Article I; or (d) Discharges from industrial facilities in violation of any pretreatment standards applicable to those discharges. In no event shall PeopleService be responsible for the payment of state or federal fines imposed or damages, attorney fees, and court costs awarded as a result of actions, inactions, process upsets or violations which occurred prior to or existed on the Effective Date of this Agreement, and which are not due solely to the negligence of PeopleService, nor shall PeopleService be responsible for payment of any fines, penalties, damages or attorney's fees resulting from requirements not expressly assumed by PeopleService herein, including any reporting requirements. With regard to potable water supplies, PeopleService will not be responsible for inherent water quality that fails to meet specifications of the Safe Drinking Water Act and amendments thereto concerning inorganic chemicals, pesticides, volatile organic chemicals, synthetic organic 3 compounds, lead and copper standards. However, PeopleService will use its best efforts to treat Owner's potable water supplies to meet drinking water standards. 1.8 PeopleService shall exercise the due care in performing its obligations and duties under this Agreement which is normally and reasonably provided in the industry with respect to similar contract services. 1.9 PeopleService will provide and maintain at all times during the term of this Agreement the following minimum insurance coverage: (a) Statutory Workers' Compensation Insurance in compliance with the laws of the state of Minnesota which has jurisdiction of PeopleService employees engaged in the performance of services hereunder; together with Employers Liability coverage in the amount of $500,000 for each incident; (b) General liability coverage of at least $1,000,000 combined single limit, each occurrence, for bodily injury and property damage with Owner named as additional insured; (c) Comprehensive auto liability insurance which shall include $500,000 combined single limit coverage for bodily injury and property damage; and (d) Umbrella liability coverage of at least $4,000,000 is provided in addition to the statutory workman's compensation requirement, basic general liability or auto liability coverage noted above. PeopleService will furnish Owner with Certificates of Insurance as evidence that policies providing the required coverage and limits are in full force and effect. Such policies shall provide that no less than thirty (30) days' advance notice of cancellation, termination or alteration shall be sent directly to PeopleService and Owner. 4 ARTICLE II - RESPONSIBILITIES OF OWNER 2.1 As part of this Agreement Owner agrees to assume the following responsibilities: (a) Owner shall maintain in full force and effect, in accordance with their respective terms, all guarantees, warranties, easements, permits, licenses and other similar approvals and consents received or granted to Owner as owner of all Facilities and component parts thereof; (b) Owner shall be responsible for all capital replacement and maintenance/repair expenditures that Owner determines necessary and required. PeopleService shall be available to discuss these requirements, justification and need; (c) Owner shall be responsible for filing, obtaining, and maintaining current water supply operations permit and NPDES permit for discharge of wastewater; and for filing all required reports under the Emergency Planning and Community Right -To - Know Act or any other statute or authority; provided, however, PeopleService shall assist Owner with preparing these filings and shall provide ongoing assistance regarding the maintenance of these permits; (d) Owner shall at all times provide access to the Facilities for PeopleService, its agents and employees; (e) Owner shall provide PeopleService the use of all existing equipment owned by Owner, necessary for the operation and maintenance of the Facilities and warrants that such operating equipment is in good condition; (f) Owner shall be responsible for all damage to the Facilities, components thereof, PeopleService equipment on site, and all resulting liability to any and all third parties, when such damage and/or liability are caused by flood, fire, acts of God or other force majeure events, civil disturbance, extreme cold temperatures, excessive 5 subsoil moisture, or misuse of property to the extent Owner was negligent regarding the misuse of such property; (g) Owner shall be responsible for all fines imposed for process upsets and violations of discharge limits attributable to the operation and maintenance of the Facilities to the extent set forth in Section 1.7 as well as fines imposed for failure to report as required by Section 2.1(c), unless such failure is due to the intentional or negligent act, error, or omission of PeopleService. (h) Owner shall designate an individual to act as liaison with PeopleService in connection with the performance of services by PeopleService under this Agreement; (i) Owner shall be responsible for all property, excise and other taxes assessed on the Facilities; and 0) Owner shall bear all costs incurred as a result of regulatory requirements not in effect on the Effective Date of this Agreement. 2.2 Owner shall maintain in full force and effect all existing policies of property and general liability insurance pertaining to the Facilities. Owner shall furnish PeopleService with Certificates of Insurance as evidence that such policies are in full force and effect under such policies. Such policies shall provide that no less than thirty (30) days' advance notice of cancellation, termination or alteration shall be sent directly to PeopleService and Owner. 2.3 Owner shall indemnify and hold PeopleService, its officers, employees and agents, harmless under this Agreement for any and all claims, damages, costs or expenses caused by malfunction or failure of the Facilities or any components thereof or other liability or loss including injury, death, or damages to any person or property related in any way to the performance of this Agreement to the extent such claims, damages, costs, expenses, liability or loss are caused by the negligent acts, errors or omissions of Owner. Additionally, Owner shall indemnify PeopleService, its officers, employees, and agents harmless for any and all fines, penalties, attorney's fees, and damages resulting from Owner's failure to comply with permitting, reporting, or other statutory or regulatory requirements which are the responsibility of the Owner. This provision shall survive the termination of this Agreement. ARTICLE III - RESPONSIBILITIES OF PEOPLESERVICE 3.1 PeopleService shall indemnify and hold Owner, its employees and agents, harmless under this Agreement for all claims, damages, costs or expenses caused by malfunction or failure of the Facilities or any components thereof or other liability or loss including injury, death, or damages to any person or property related in any way to the performance of this Agreement to the extent such claims, damages, costs, expenses, liability or loss are caused by the intentional or negligent acts, errors or omissions of PeopleService. This provision shall survive the termination of this Agreement. ARTICLE IV - COMPENSATION 4.1 As compensation for services rendered by PeopleService pursuant to this Agreement, Owner shall pay to PeopleService the sum of $7,455 per month during the first twelve (12) months of this Agreement, commencing with the Effective Date. The monthly payment shall be due and payable on the first day of the month in which services are to be rendered. All other compensation to PeopleService is due upon receipt of PeopleService's invoice and payable within thirty (30) days of the date of the invoice. 4.2 The monthly compensation provided in Section 4.1 shall be adjusted on September l' of each year, beginning on September 1, 2022. The basis for the annual adjustment for September 1, 2022 shall be the change in the Consumer Price Index for All Urban Consumers (CPI-U) as regularly reported by the U.S. Bureau of Labor Statistics, between May 2021 and May 2022, plus one percent (1 %). For each year thereafter, the adjustment shall be the change in the CPI-U as reported between May of the year preceding the year of adjustment and May of the year of adjustment, plus one percent (1%). This annual adjustment shall be 7 done by letter acknowledging the change and will not require official action or contract amendment. 4.3 If for any one hundred & eighty (180) day consecutive day period during the term of this Agreement the average quality and/or quantity of wastewater influent or water production should significantly change (i.e. 40 percent increase or decrease in flow or loadings) compared to the average experienced during the twelve months immediately preceding the Effective Date of this Agreement, resulting in significantly increased, or decreased, operating costs, both parties will mutually agree to negotiate an adjustment to reflect the incremental change in costs. If the parties cannot agree on an adjustment within ninety (90) days following PeopleService's request for an adjustment, either party may terminate this Agreement by giving thirty (30) days written notice to the other party. This section shall not apply to temporary quantity increases or decreases related to the provision or receipt of water through the interconnect system. ARTICLE V - TERM OF AGREEMENT 5.1 This Agreement shall remain in full force and effect for five (5) years from the Effective Date. The Agreement shall be automatically renewed for successive terms of one (1) year each unless written notice of cancellation is given by either party to the other no less than ninety (90) days prior to the date of expiration. ARTICLE VI - TERMINATION 6.1 This Agreement may be terminated by either party in the event of the other party's breach of a material term of the Agreement, by the first party's giving written notice of such breach and the second party's failure to correct within thirty (30) days of receipt of such notice; provided, however, that the breach must be corrected immediately if it is of the kind or nature effecting public health, safety or welfare or environmental protection. 91 6.2 PeopleService shall not be in breach under this Agreement for its failure to perform its obligations under this Agreement, to the extent that the performance of such obligations is prevented or delayed by any event which is beyond the reasonable control of PeopleService, including but not limited to Acts of God, strikes, labor disputes, and unavailability of parts. In the event PeopleService claims that its performance is prevented or delayed by any such event, PeopleService will promptly notify Owner of that fact and the circumstances preventing or delaying its performance. ARTICLE VII - MISCELLANEOUS 7.1 Any temporary or portable equipment which is provided by PeopleService during the term of this Agreement, and which is not deemed part of the Facilities shall remain the property of PeopleService upon termination of this Agreement. PeopleService shall not make any expenditure for capital replacements of the Facilities or any component thereof without the prior approval of Owner unless there is an emergency. An emergency exists when such expenditures are necessary to continue operation of Owner's Facilities or to provide for public health, safety, or environmental protection. If there is an emergency, PeopleService shall provide Owner with verbal notice of the need for the capital replacement expenditure as soon as possible. Owner shall reimburse PeopleService for such emergency capital replacement expenditures in accordance with Section 4.1 of this Agreement. 7.2 This Agreement represents the entire agreement of the parties and may only be modified or amended in a writing signed by both parties. 7.3 Any notice required or permitted to be given hereunder shall be in writing, and shall be either (i) personally delivered, (ii) sent by U.S. certified or registered mail, return receipt requested, postage prepaid, or (iii) sent by Federal Express or other reputable common carrier guaranteeing next business day delivery, to the respective addresses of the parties set forth in the first paragraph of this Agreement. Any such notice shall be deemed given and effective upon receipt or refusal of receipt thereof by the primary party to whom it is to be sent. Notices may be given by email or facsimile transmission provided that such notice is followed by written notice �'] delivered as provided in (i), (ii) or (iii) above. Any party may change its address for the service of notice by giving notice of such change to the other party 10 days prior to the effective date of such change. 7.4 This Agreement shall be governed by, and construed in accordance with, the laws of the state of Minnesota. 7.5 Neither party shall assign, in whole or in part, any of the rights, obligations or benefits of this Agreement except to a parent, affiliate, or wholly owned subsidiary, without the prior written consent of the other party, which consent shalt not be unreasonably withheld. For purposes of this Section 7.5, an affiliate is defined as a company, the controlling interest in which is owned by the parent of the party. 7.6 PeopleService shall register with and utilize an electronic verification system or program for all of its new hire employees. This electronic verification system or program now known as the °E-Verify Program", but also may include an equivalent federal program designated by the Department of Homeland Security or another federal agency authorized to verify the work eligibility status of employees. PeopleService shall contractually require all subcontractors performing work under this contract to also register and utilize such electronic verification system for employees hired on or after the Effective Date of this Agreement. PeopleService and all of its subcontractors shall use such electronic verification system to determine the work eligibility status of each new employee physically performing any services under this contract. Any person whom the electronic verification system determines is ineligible or not authorized to work in the United States shall not be permitted by PeopleService or a subcontractor to perform services under this contract. 7.7 As a government contractor, PeopleService must comply with the provisions of Executive Order 11246, as amended, and other existing laws related to Equal Employment Opportunity (EEO). Part of our commitment to EEO is to take affirmative action to ensure that job seekers are recruited; job applicants are considered for employment opportunities; and employees are treated without regard to their race, gender, color, religion, national origin, age, 10 sexual orientation, gender identity or expression, genetic information, disability or veteran status or any other status protected by law. In addition, the Equal Pay Act of 1963, as amended, prohibits sex discrimination in the payment of wages to women and men performing substantially equal work, in jobs that require equal skill, effort and responsibility, under similar working conditions, in the same establishment. 7.8 Owner agrees not to offer employment to or to hire any current or former employee of PeopleService until twelve (12) months has lapsed since the employee's termination from PeopleService. This restriction shall not apply to employees who worked for the Owner prior to their employment with PeopleService. This provision shall survive the termination of this Agreement. 7.9 Attached hereto and forming an integral part of this Agreement are Exhibits A (Description of Facilities) and B (Services to be provided by PeopleService), both of which documents are incorporated into this Agreement as fully as if the contents thereof were set out in full herein. 7.10 The relationship of Owner and PeopleService shall be that of independent contractors, and not that of principal and agent, employer and employee, partners, associates, or joint venturers. Nothing in this Agreement shall be construed, implied, or deemed to create any relationship between the parties other than one of independent contractors. No promises, statements, representations, or other acts of either party shall be binding upon the other party, nor shall such other party be liable to any third person for any such promises, statements, representations, or other acts, unless expressly approved or ratified in writing by such other party. Without limiting the generality of the foregoing, neither party shall have any authority whatsoever to incur any liability or obligation or to transact any business on behalf of the other party, except as expressly provided in this Agreement or approved or ratified by such other party in writing. PeopleService understands and agrees that Owner will not withhold or make deductions for payments of any kind from the compensation Owner pays to PeopleService, including, but not limited to, local, state or federal income taxes, FICA, FUTA, payroll taxes, employment taxes, other taxes, social security payments or similar items; and PeopleService shall be solely responsible for paying, and shall pay, any and 11 all local, state and federal income taxes, FICA, FUTA, payroll or employment taxes, other taxes, social security payments and similar items owing on account of any services provided to Owner by PeopleService, and shall indemnify, save and hold Owner harmless from and against any and all loss, cost or expense incurred by Owner on account of any breach of the foregoing. In addition, Owner will neither offer nor provide to PeopleService employees any employee benefits, including, without limitation, workers' compensation, reemployment benefits, malpractice, health, life or disability insurance, vacation, sick leave, or retirement plan benefits and PeopleService agrees that neither it nor its employees shall have any right to or claim against Owner for overtime pay, vacation pay, sick leave, retirement benefits, social security, worker's compensation, health or disability insurance or benefits, unemployment insurance benefits, or any other employee benefits of any kind and nature. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first above written. PEOPLESERVICE, INC. Attest: President Assistant Secretary `Fa CITY OF SPRING PARK, MINNESOTA Attest: Mayor City Clerk OPERATION AND MAINTENANCE AGREEMENT EXHIBIT A Description of Facilities For purposes of this Agreement, the following water/wastewater utility components are included: ■ WATER SYSTEM: A gravity, sand filter plant designed to removal iron and manganese; a water distribution system comprised of various sizes of mains, fire hydrants, valves, etc. ■ WASTEWATER SYSTEM: A wastewater collection system consisting of various sized main and including six (6) lift stations. This system discharges into the "metro" system for treatment. 13 OPERATION AND MAINTENANCE AGREEMENT EXHIBIT B Services to be Provided by PeopleService Except as otherwise provided in the Operation and Maintenance Agreement, and subject to the limitations set forth therein, PeopleService shall provide the following services to Owner in connection with the Facilities: Provide the personnel necessary to manage, operate, and maintain the Owner's water production, treatment, storage and distribution and wastewater collection facilities to achieve optimum performance and to maintain equipment for system integrity, within the Owner's budgeted resources. 2. Provide technical training to the water/wastewater operators on treatment process, preventive maintenance techniques, and safety awareness, including the continuing education units (CEU's) necessary for the operating personnel to maintain their licenses. 3. Procure and pay for all consumable supplies, communication services (cell phone for operator), vehicle fuels, materials, and services necessary for the safe and efficient day to day operations of the Facilities and the provision of. 4. Monitor, sample, analyze, and report as required by the Minnesota Department of Health (MDOH) in matters related to municipal water supply. Process control testing include those tests necessary to maintain the daily operation of the water treatment system (pH, iron and manganese, chlorine residual, etc.). Any additional testing required by regulatory agencies such as but not limited to bacteria, inorganic chemicals, synthetic organic chemicals, and volatile organic chemicals 14 will be sent to a commercial laboratory for completion. The cost of shipping and the laboratory analysis of the samples shall be the responsibility of the Owner. 5. Monitor, sample, analyze, and report as required by the agreement between the Owner and the Met Council with respect to the wastewater pumped to the Met Council for treatment. For any testing required by the Met Council, PeopleService shall collect the samples and send them to a commercial laboratory for analysis. The cost of shipping and the laboratory analysis of the samples shall be the responsibility of the Owner. 6. Act as liaison between the Owner and the MDOH, DNR, and Met Council in matters relating to compliance with water quality and discharge requirements, and other liaison activities, as required. 7. implement the use of a comprehensive, preventative maintenance program in an attempt to ensure the projected life expectancy of plant equipment, and will enforce existing equipment warranties and guarantees, and maintain all warranties on any new equipment purchased after the effective date of this Agreement. B. During normal business hours, complete all requests for customer "turn-ons" and "turn-offs". 9. Replace malfunctioning water meters. The Owner shall provide the meters and supplies necessary for these activities. PeopleService shall read the water meters quarterly, providing the readings to the Owner's staff, and will complete any requested "re -reads" and "final reads". During the term of this Agreement, PeopleService shall locate and identify curb stops that need to be raised and raise them to the appropriate height. PeopleService shall coordinate with the Owner a meter replacement program with the Owner being responsible for providing the replacement meters. 15 10. Flush fire hydrants a minimum of twice each year, performing hydrant maintenance and lubrication, as necessary. 11. PeopleService will be responsible for coordinating any repairs to the water distribution or wastewater collection systems, using the Owner's chosen contractor. The Owner's contractor will be responsible for providing the personnel, supplies, and equipment necessary to complete the repairs. The Owner or its contractor shall also be responsible for the removal, replacement and resurfacing of all streets or private property, with the Owner being responsible for its own expenses and the cost of any third -party contractor. 12. Monitor the operation of the wastewater collection system lift stations and conduct a visual inspection of each at least weekly. Coordinate the annual cleaning of and any required repairs of the six wastewater collection system lift stations. 13. Using the Owner's equipment, complete all water/sewer line, storm sewer, and municipal streetlight locates of the portions of the system owned by the Owner and requested by the Gopher State One Call System. Any fees for participating in this program shall remain the responsibility of the Owner. In addition, PeopleService will inspect all new water/sewer taps of the Owner's distribution and interceptor lines. 14. Maintain cleanliness of process equipment and building, and general appearance of all buildings and grounds, and will conduct operations such that nuisances of sight, sound, and odor are eliminated or minimized to the extent reasonably possible. The Owner shall be responsible for all snow removal, grass mowing and the maintenance of access to the Facilities. 15. Act in the capacity of the "public works department" for the Owner by completing the following tasks: A. Maintain the Owner's streets and storm sewer system by: 1. Coordinating and schedule snow removal from streets and sidewalks by other contractors. 2. Coordinating and scheduling street sweeping by other contractors. 3. Completing repairs and maintenance as needed 4. Cleaning culverts and drains 5. Picking up debris in ditches and retention basins 6. Coordinating and scheduling painting of cross walks by other contractors. 7. Installing and repairing signs. 8. Posting road restrictions 9. Cutting weeds at intersections as needed 10. Maintaining streetlights 11. Coordinating installation and removal of banners, flags, and decorations. 12. Periodically inspect sidewalks and coordinating repairs and maintenance as needed. 13. Periodically inspecting and coordinating for maintenance and repairs to the City's storm water system. B. Maintain the Owner's parks, City hall, trees, and tennis court by: 1. Supervising part-time seasonal maintenance worker 2. Mowing as necessary in the absence of seasonal maintenance worker. 3. Trimming public trees, as necessary. 4. Coordinating and scheduling substantial tree removal and trimming work. 5. Inspecting, installing and repair all park and tennis court equipment, as necessary. 6. Cleaning up debris. 7. Managing weeds as necessary. B. Maintaining park parking lots. 9. Maintaining and repairing City Hall and adjoining green space. 10. Maintaining various public right-of-way areas throughout the City. 11. Coordinating as necessary with landscaping and beautification contractor. 12. Maintain and repair water fountains and irrigation systems as needed. C. Completing miscellaneous tasks, such as but not limited to the following: 1. Directing and supervising sub -contractors and vendors. 2. Maintaining working knowledge of equipment and machinery used throughout the City. 3. Prepare and maintain logs of all activities for accurate assessment of costs. 4. Maintain all City owned property, buildings, and equipment in a clean and orderly manner. 5. Work with engineers and building inspector on all required projects. 6. Maintain the Owner's truck and keep a log of its uses and maintenance. 7. Maintain an inventory of tools and equipment. 8. Assist in the preparation of yearly departmental budgets. 9. Attend City Council meetings as necessary. 17 10. Be on call on a 24 hour per day 7 days per week basis to respond and resolve any emergency by coordinating or completing the activity necessary to resolve the emergency. 16. Properly secure and protect the utility facilities within the limits of available security devices. 17. Provide a monthly, written report to designated officials of the Owner, summarizing plant performance, production, flows, major projects or accomplishments, and preventive and corrective maintenance activities for the month. 18. Comply with all applicable city, state, and federal laws, regulation, and administrative rules. 19. Use a professional manner in dealing with community groups concerned with any facet of the operation, including tours and other public relations programs. 20. Coordinate and cooperate with the Owner's engineer and contractors to facilitate the completion of any expansion or improvement to the facilities. 21. Serve as a liaison between the Owner and any new or existing major contributing industries and provide technical assistance to the Owner in consultation to existing industries and to any new industries, in matters relating to their pretreatment process, or agreements with, the Owner and Met Council. 22. Provide assistance to the Owner for following Value -Added Services: "SDWA Amendments (1986) Assessment and Consultation Water Rates Study Five -Year WaterNVastewater Capital Improvements Assessment and O&M Budgeting Assistance Inflow/Infiltration (ill) Analysis of Wastewater Collection System 18 Wastewater Rates Study Industrial Pre -Treatment Investigation Laboratory Quality Assurance and Quality Control (QA/QC) Program Miscellaneous A - PeopleService will provide the necessary information to complete all forms required through the administration of the water and wastewater treatment systems. PeopleService will not be required to pay any fees associated with the licenses or permits required by the state agencies. PeopleService will pay all expenses associated with the individual operator certification. B - PeopleService will not be responsible for any additional costs associated with any construction project or upgrades involving the water and/or wastewater systems. C - For services requested by the Owner and provided by PeopleService that are beyond the Scope of Services contained in this Exhibit B, PeopleService shall charge the Owner at the rate of $70 per hour between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday (except for holidays). At all other times and during holidays, the billing rate shall be $105 per hour. Hours billed shall include any required travel time. Owner agrees to pay invoices for said charges in compliance with the terms contained in the paragraph 4.1 of this Agreement.