3.10.A. SR 05-02-2011'--+/~
city or
Elk ---~
River
REQUEST FOR ACTION
TO ITEM NUMBER
Ma or and Ci Council 3.lQ.A.
AGENDA SECTION MEETING DATE PREPARED BY
Consent Ma 2, 2011 ustin Femrite, P.E.
ITEM DESCRIPTION REVIEWED B)/
Approval of Grant Contract with the MPCA for the Beneficial Lori ohnson, Ci Administrator
Reuse of Wastewater Effluent project. REVIEWED BY
ACTION REQUESTED
Approval of the attached contract with the Minnesota Pollution Control Agency (MPCA) for the grant
associated with the Beneficial Reuse of Wastewater Effluent project and authorization fox the City
Engineer to execute attached agreement on behalf of the City of Elk River.
BACKGROUND/DISCUSSION
Attached is the formal agreement that must be entered into to allow for the City of Elk River to receive
the grant funds from the MPCA for the Beneficial Reuse of Wastewater Effluent project.
FINANCIAL IMPACT
No expenditures above what have been previously approved are required with this approval.
ATTACHMENTS
MPCA Contract
Action Motion by Second by Vote
Follow Up
N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\05-02-2011\MPCA Grant.docx
STATE OF MINNESOTA
GRANT CONTRACT
This Grant Contract is between the State of Minnesota, acting through its Commissioner of the MINNESOTA
POLLUTION CONTROL AGENCY, 520 Lafayette Road North, St. Paul, MN 55155 ("State") and the CITY OF ELK
RIVER, 13065 Orono Parkway, Elk River, Minnesota 55330 ("Grantee").
Recitals
1. Under Minnesota Statutes § 116.195, the State is empowered to enter into this Grant Contract.
2. The State is providing Grant assistance for public improvements for the beneficial use of wastewater effluent (the
"Project"), defined by Minnesota Statutes § 116.195 as the use of wastewater effluent from a publicly owned
wastewater treatment plant to replace the use of groundwater.
3. "Pre-design" as referenced in § 116.195 is substantially the same as "Facilities Planning" as defined in Minnesota
Rules 7077.0272 and "Facilities Planning" is the common and accepted usage. "Design" as referenced in
Minnesota Statutes § 116.195 is substantially the same as "Plans and Specifications" as defined in Minnesota
Rules 7077.0274 and "Plans and Specifications" is the common and accepted usage. In this Grant Contract and in
Attachments to this Grant Contract where Minnesota Statutes § 116.195 calls for "Pre-Design," the term
"Facilities Planning" will be used and where Minnesota Statutes § 116.195 calls for "Design," the term "Plans and
Specifications" will be used.
4. The Grantee represents that it is duly qualified and agrees to perform all services described in this Grant Contract
to the satisfaction of the State.
Grant Contract
1. Term of Grant Contract
1.1 Effective date: May 6, 2011, or the date the State obtains all required signatures under Minnesota Statutes §
16C.05, Subdivision 2, whichever is later.
The Grantee must not begin work under this grant contract until this contract is fully executed and the
Grantee has been notified by the State's Authorized Representative to begin the work.
Work completed on the Project prior to execution of this Grant Contract by the State shall not be eligible for
Grant assistance nor shall expenditures incurred by the Grantee prior to execution of this Grant Contract be
eligible as match according to the Terms and Conditions provided herein. The State's Authorized
Representative shall notify the Grantee when this Contract has been executed by the State.
1.2 Expiration date: June 30, 2013, or until all obligations have been satisfactorily fulfilled, whichever occurs
first.
1.3 Survival of Terms. The following clauses survive the expiration or cancellation of this Grant Contract:
Liability; State Audits; Government Data Practices and Intellectual Property; Publicity and Endorsement;
Governing Law, Jurisdiction, and Venue; and Data Disclosure.
1.4 Compliance. The Grantee shall maintain full compliance with all applicable laws, statutes, rules, ordinances,
and regulations issued by any Federal, State, or local political subdivisions having jurisdictions over any aspect
of the duties performed under this Grant Contract, including construction of public improvements, and shall
operate its wastewater system as modified and improved in compliance with State permitting requirements.
2. Grantee's Duties
2.1 The Grantee, who is not a State employee, will perform the specified duties set out in this Grant Contract and
the Project Work Plan (ATTACHMENT A), which is attached and incorporated into this Grant Contract.
2.1.1 Facilities Plan. The Grantee will prepare a Facilities Plan that evaluates all feasible treatment and
conveyance alternatives and identify a selected alternative for utilizing wastewater effluent
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discharged by the Grantee's wastewater treatment facilities to replace. the use of in the following
industrial production activities of the Elk River Station as located in Elk River, Minnesota and as
owned and operated by Great River Energy: Elk River Station, U.S. Deparhnent of Commerce
North American Industry Classification System (NAICS) Code 562213; Elk River Peaking Station
NAICS Code 221112, and transmission operations NAICS Code 221121. The discount rate for
cost-effectiveness analysis of alternatives over the period October 1, 2010 through September 30,
2011, shall be: 4.625%, as set by the Municipal Support Division of the United States
Environmental Protection Agency. In evaluating all feasible treatment and conveyance alternatives
the Grantee shall consider alternatives for the acquisition or betterment of public land, buildings,
and other public improvements of a capital nature for the treatment of wastewater resulting in its
beneficial use.
Alternatives that in addition to public improvements include private improvements to the Elk River
Station of Great River Energy that are integral to the beneficial use of wastewater as defined herein
and to the Project, may also be addressed in Facilities Planning except that the cost of preparing
that part of the Facilities Plan that addresses private improvements will not be eligible to receive
grant assistance nor eligible as local match to this grant according to the conditions of this Grant
Contract and such costs shall be identified in budget reports and payment requests submitted by the
Grantee as specified herein.
The Facilities Plan shall be undertaken in accordance with the provisions of ATTACHMENT B,
section "Facilities Planning Conditions and Requirements," which is attached and incorporated into
this Grant Contract. Preparation of the Facilities Plan by the Grantee shall be considered complete
upon State final approval of the Facilities Plan, including the completed enviromnental review of,
and State approval of, National Pollution Discharge Elimination System (NPDES) permit
modifications or the issuance of new permits as proposed in the Facilities Plan.
For the purposes of the Project, environmental review of and approval of NPDES permit
modifications and the issuance of new permits shall apply to the Grantee's municipal wastewater
NPDES permit; and shall also apply to NPDES permit(s) currently utilized by the Elk River Station
of Great River Energy insofar as the provisions of the Facilities Plan necessitate changes in
discharges on the part the Elk River Station of Great River Energy.
In conjunction with submittal of the Facilities Plan to the State the Grantee shall forward to the
State a letter acquired from Great River Energy signed by the Official Contact Person as identified
in the Grantee's Grant Application or another authorized representative of the Corporation,
indicating that:
(1) Great River Energy has reviewed and is in substantial agreement with the Facilities Plan
and the selected alternative and agrees to receive and utilize the volume of treated
wastewater indicated in the Facilities Plan for the industrial uses identified in this part;
(2) Will submit as necessitated by the project, a National Pollutant Discharge Elimination
System (NPDES) permit application or permit applications as such applications address
changes in wastewater discharges by the Elk River Station of Great River Energy that will
result from the Project. Permit application(s) must include addressing any sludge or bio-
solids related issues for the proposed plans and specifications consistent with Minnesota
Rules 7041.0700.
If the overall volume of wastewater that will be used beneficially as identified in the selected
alternative is less than the volume of 28.2 million gallons annually as identified in the Grantee's
Grant Application the Grantee shall establish in writing to the satisfaction of the State the reason for
such a reduction prior to State approval of the Facilities Plan.
2.1.2 Plans and Specifications. The Grantee shall prepare Plans and Specifications for the selected
alternative of the Facilities Plan that has received approval from the State and in accordance with
the provisions of ATTACHMENT B, section "Plans and Specifications Conditions and
Requirements." If in addition to public improvements the approved Facilities Plan includes private
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improvements to the Elk River Station of Great River Energy that are integral to the beneficial use
of wastewater as defined herein and to the Project, such private improvements may be addressed in
the preparation of Plans and Specifications, except that the cost of preparing that part of the Plans
and Specifications that addresses private improvements will not be eligible to receive Grant
assistance nor eligible as local match to this Grant according to the conditions of this Grant
Contract and such costs shall be identified in budget reports and payment requests submitted by the
Grantee as specified herein. Preparation of Plans and Specifications by the Grantee shall be
considered complete upon State review and approval of the Plans and Specifications.
In conjunction with submittal of Plans and Specification to the State, the Grantee shall forward to
the State a letter acquired from Great River Energy signed by the Official Contact Person as
identified in the Grantee's Application or another authorized representative of the Corporation,
indicating that Great River Energy:
(1) Has reviewed and is in substantial agreement with the Plan and Specifications and agrees to
receive and utilize the volume of treated wastewater indicated in the Plans and
Specifications for the industrial uses identified in part 2.1.1, and;
(2) Will proceed in keeping with the design requirements of the Project to acquire National
Pollutant Discharge Elimination System (NPDES) permits or permit modifications as such
permits or permit modifications address changes in wastewater discharges by the Elk River
Station of Great River Energy.
If the overall volume of wastewater that will be used beneficially as identified in the Plans and
Specifications is less than the volume of 28.2 million gallons annually as identified in the Grantee's
Grant Application the Grantee shall establish in writing to the satisfaction of the State the reason for
such a reduction prior to State approval of the Plans and Specifications.
2.1.3 Project Certification. Prior to the construction of wastewater facilities and appurtenances
improvements according to the approved Plans and Specifications the Grantee shall obtain
certification of the Project by the State. Upon demonstration and provision of the following to the
satisfaction of the State, the State shall provide written certification of the Project:
(1) The municipality has obtained a NPDES permit from the agency for the Project, as
applicable, and has satisfactorily completed the environmental review requirements of
Minnesota Rules chapter 4410 and Minnesota Statutes, chapter § 116D; and
(2) Insofar as the Project necessitates changes in NPDES permit(s) of the Elk River Station of
Great River Energy, that Great River Energy has obtained a NPDES permit from the State
and has satisfactorily completed the environmental review requirements of Minnesota
Rules chapter 4410 and Minnesota Statutes, chapter § 116D;
(3) The documents required under part 7077.0280, subpart 4, have been reviewed and
approved; and
(4) The Project meets the conditions of Minnesota Statutes § 116.195 and Minnesota Statutes
Chapter § 114D; and
(5) A .letter acquired from Great River Energy signed by the Official Contact Person as
identified in the Grantee's Application or another authorized representative of the
Corporation, indicating that:
a. Upon construction of the Project, the Great River Energy agrees to receive and
utilize the volume and quality of treated wastewater indicated in the Plans and
Specifications for the industrial uses identified in Section 2.1.1 of this Grant
Contract; and
b. Great River Energy recognizes, acknowledges and agrees to undertake
modifications and improvements to its facilities and appurtenances (private
improvements) as may be necessary to receive and utilize the treated wastewater
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provided by the Grantee according to the Plans and. Specifications as approved by
the State, and that Great River Energy and the Grantee understand and
acknowledges that such modifications and improvements are private improvements
and as such are not eligible for Grant assistance nor eligible as local match to this
Grant according to the conditions of this Grant Contract
2.1.4 Advertising for Bids to Construct Wastewater Facilities and Appurtenances Improvements.
Upon certification of the Project by the State, the Grantee shall proceed to advertise for bids to
construct the wastewater facilities and appurtenances improvements as described and detailed in the
approved Plans and Specifications and as certified by the State and in accordance with the
provisions of ATTACHMENT B, section "Construction Conditions and Requirements."
If, in addition to public improvements the approved Plans and Specifications include private
improvements that are integral to the beneficial use of wastewater as defined herein, and to the
Project, such private improvements may, at the discretion of the Grantee, be constructed as a part of
the same construction Project as the approved public improvements, except that the costs for that
part of the construction Project that addresses private improvements will not be eligible to receive
Grant assistance nor as match to Grant assistance according to the conditions of this Grant Contract;
shared costs, such as construction inspections, must be prorated and clearly identified on Invoices.
2.1.5 Review of Selected Bid. Upon selection of a bid for constructing the Project, the Grantee shall
provide a copy of the bid to the State, and the State will review the bid to ensure that the Project as
bid corresponds to the approved Plans and Specifications; upon completing the as-bid review, the
State will notify the Grantee to proceed with construction of the Project.
2.1.6 Construction of Project. The Project shallbe constructed in accordance with the provisions of
ATTACHMENT B, section "Construction Conditions and Requirements." In completing
construction of the Project and in preparation for initiating operation of the Project, the Grantee
shall proceed according to the provisions of ATTACHMENT B, section "Completion of
Construction of the Project."
2.2 Reporting Requirements. All Projects must submit monthly reports for the duration of the Grant Contract
period. Reports are due within twenty business days of the conclusion of each month. Reports shall include a
summary of work completed and work remaining on the Project, and indicate expenditures and Grant
reimbursements received. The Grantee's expenditure information and measurable outcomes from
implementation of this Grant will be posted on State's website.
3. Time
The Grantee must comply with all the time requirements described in ATTACHMENT A, worksheet "Gantt," of this
Grant Contract. In the performance of this Grant Contract, time is of the essence.
4. Consideration and Payment
4.1 Consideration. The State will reimburse the Grantee at a Reimbursement Rate of 50% (Fifty Percent) for
work performed by the Grantee for the Project under this Grant Contract as follows:
4.1.1 Compensation. The Grantee will be reimbursed according to the amounts listed in
ATTACHMENT A, worksheet "Budget."
4.1.2 Travel Expenses. Reimbursement for travel and subsistence expenses actually and necessarily
incurred by the Grantee as a result of this Grant Contract will not exceed $1,275.00 (One
Thousand, Two Hundred Seventy-five Dollars); provided that the Grantee will be reimbursed for
travel and subsistence expenses in the same manner and in no greater amount than provided in the
current "Commissioner's Plan" promulgated by the commissioner of Employee Relations. The
Grantee will not be reimbursed for travel and subsistence expenses incurred outside Minnesota
unless it has received the State's prior written approval for out-of--state travel. Minnesota will be
considered the home state for determining whether travel is out of state.
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4.1.3 Total Obligation. The total obligation of the State for all compensation and reimbursements to the
Grantee under this Grant Contract will not exceed: $285,740.00 (Two Hundred Eight-five
Thousand, Seven Hundred Forty Dollars).
4.2 Payment
4.2.1 Invoices. The Grantee shall submit invoices monthly to the State requesting reimbursement at the
stated Reimbursement Rate for work performed and completed according to the conditions of the
Grant Contract. Invoices shall identify and describe the work performed and completed, assign
expenditures according to the itemized Project budget (ATTACHMENT A) and be signed by the
Grantee's Authorized Representative. Upon acceptance of invoices by the State's Authorized
Representative, the State shall promptly provide payment to the Grantee.
Invoices shall include:
• Name of Grantee
• Name of Grantee's Authorized Representative
• Grant Contract Amount
• Grant Contract Amount available to date
• Invoice Number
• Invoice Date
• MPCA Authorized Representative
• Contract Number (CFMS)
• Invoicing Period (actual working period)
• An Itemized list of all time and materials
• Subcontractor invoices, if applicable
• Itemized labor (hourly breakdown)
The State will promptly pay the Grantee after the Grantee presents an itemized invoice for the
services actually performed and the State's Authorized Representative accepts the invoiced services.
Invoices should reference the Grant Contract number and the name of the State's Authorized
Representative and be submitted to:
Minnesota Pollution Control Agency
Accounts Payable
520 Lafayette Road North
St. Paul, MN 55155-4194
Or by email to: mpca.ap@state.mn.us (Subject line: Grant Contract Number and Name of
the State's Authorized Representative)
Invoices for work done through June 30 each year must be submitted by July 31 or the
invoice may not be paid. Invoices must be submitted timely and according to the following
schedule: Monthly.
4.2.2 Funds Retained Until Completion of Construction. Starting with the first invoice for work
performed under Phase 3, Construction (ATTACHMENT A), the State shall retain 10% (Ten
Percent) of its Total Obligation for Grant assistance provided by this Grant Contract until the
Grantee has fulfilled all of the requirements of ATTACHMENT B, section "Completion of
Construction of the Project."
4.2.3 Federal funds. Not applicable.
5. Conditions of Payment
All services provided by the Grantee under this Grant Contract must be performed to the State's satisfaction, as
determined at the sole discretion of the State's Authorized Representative and in accordance with all applicable
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federal, state, and local laws, ordinances, rules, and regulations. The Grantee will not receive payment for work
found by the State to be unsatisfactory or performed in violation of federal, state, or local law.
6. Authorized Representative
The State's Authorized Representative is: James R. Anderson, Beneficial Reuse Program Project Manager,
Minnesota Pollution Control Agency, 520 Lafayette Road North, St. Paul, Minnesota 55155, 651-757-2193,
james.anderson@state.mn.us, or his successor, who has the responsibility to monitor the Grantee's performance and
the authority to accept the services provided under this Grant Contract. If the services are satisfactory, the State's
Authorized Representative will certify acceptance on each invoice submitted for payment.
The Grantee's Authorized Representative for purposes of this Grant Contract is: Justin Femrite, P.E., City Engineer,
13065 Orono Parkway, Elk River, Minnesota 55330, 763-635-1051, jfemrite@ci.elk-river.mn.us, or his successor. If
the Grantee's Authorized Representative changes at any time during this Grant Contract, the Grantee must
immediately notify the State.
7. Assignment, Amendments, Waiver, and Grant Contract Complete
7.1 Assignment. The Grantee may neither assign nor transfer any rights or obligations under this Grant Contract
without the prior consent of the State and a fully executed Assignment Agreement, executed and approved by
the same parties who executed and approved this Grant Contract, or their successors in office.
7.2 Amendments. Any amendment to this Grant Contract must be in writing and will not be effective until it has
been executed and approved by the same parties who executed and approved the original Grant Contract, or
their successors in office.
7.3 Waiver. If the State fails to enforce any provision of this Grant Contract, that failure does not waive the
provision or its right to enforce it.
7.4 Grant Contract Complete. This Grant Contract contains all negotiations and agreements between the State
and the Grantee. No other understanding regarding this Grant Contract, whether written or oral, may be used to
bind either party.
8. Liability
The Grantee must indemnify, save, and hold the State, its agents, and employees harmless from any claims or causes
of action, including attorney's fees incurred by the State, arising from the performance of this Grant Contract by the
Grantee or the Grantee's agents or employees. This clause will not be construed to bar any legal remedies the
Grantee may have for the State's failure to fulfill its obligations under this Grant Contract.
9. State Audits
Under Minnesota Statutes § 16C.05, Subdivision 5, the Grantee's books, records, documents, and accounting
procedures and practices relevant to this Grant Contract are subject to examination by the State and/or the State
Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end of this Grant Contract.
10. Government Data Practices and Intellectual Property
10.1 Government Data Practices. The Grantee and State must comply with the Minnesota Government Data
Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by the State under this Grant
Contract, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by
the Grantee under this Grant Contract. The civil remedies of Minnesota Statutes § 13.08 apply to the release of
the data referred to in this clause by either the Grantee or the State.
If the Grantee receives a request to release the data referred to in this Clause, the Grantee must immediately
notify the State. The State will give the Grantee instructions concerning the release of the data to the requesting
party before the data is released.
10.2 Intellectual Property Rights.
10.2.1 Intellectual Property Rights. All rights, title, and interest to all intellectual property rights,
including all copyrights, patents, trade secrets, trademarks, and service marks in the Works and
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Documents, shall be jointly owned by the Grantee and the State. Works shall mean all inventions,
improvements, or discoveries (whether or not patentable), databases, computer programs, reports,
notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes or disks,
conceived, reduced to practice, created, or originated by the Grantee, its employees and
Subcontractors, either individually or jointly with others, in the performance of this .Contract.
"Documents" shall mean the originals of any databases, computer programs, reports, notes, studies,
photographs, negatives, designs, drawings, specifications, materials, tapes, disks, or other materials,
whether intangible or electronic forms, prepared by the Grantee, its employees, or Subcontractors,
in the performance of this Contract. The ownership interests of the State and the Grantee in the
Works and Documents shall be equal. The party's ownership interest in the Works and Documents
shall not be reduced by any royalties or revenues received from the sale of the products or the
licensing or other activities arising from the use of the Works and Documents. Each party hereto
shall, at the request of the other, execute all papers and perform all other acts necessary to transfer
or record the appropriate ownership interests in the Works and Documents.
10.2.2 Obligations.
(1) Notification. Whenever any invention, improvement, or discovery (whether or not
patentable) is made or conceived for the first time, or actually or constructively reduced to
practice by the Grantee, including its employees and Subcontractors, in the performance of
this Contract, the Grantee shall immediately give the State's Authorized Representative
written notice thereof, and shall promptly furnish the Authorized Representative with
complete information and/or disclosure thereon. All decisions regarding the filing of patent,
copyright, trademark or service mark applications .and/or registrations shall be the joint
decision of the Grantee and the State, and costs for such applications shall be divided as
agreed by the parties at the time of the filing decisions. In the event the parties cannot agree
on said filing decisions, the filing decision will be made by the State.
(2) Representation. The Grantee shall perform all acts, and take all steps, necessary to ensure
that all intellectual property rights in the Works and. Documents are the sole property of the
Grantee and the State as agreed herein, and that no Grantee employee, agent, or Contractor
retains any interest in and to the Works and Documents. The Grantee represents and
warrants that the Works and Documents do not and shall not infringe upon any intellectual
property rights of others. The Grantee shall indemnify, defend, and hold harmless the State,
at the Grantee's expense, from any action or claim brought against the State to the extent
that it is based on a claim that all or part of the Works or Documents infringe upon the
intellectual property rights of others. The Grantee shall be responsible for payment of any
and all such claims, demands, obligations, liabilities, costs, and damages including, but not
limited to, attorney fees. If such a claim or action arises, or in the Grantee's or the State's
opinion is likely to arise, the Grantee shall, at the State's discretion, either procure for the
State the right or license to use the intellectual property rights at issue or replace or modify
the allegedly infringing Works or Documents necessary and appropriate to obviate the
claim. This remedy shall be in addition to, .and not exclusive of, other remedies provided by
law.
10.2.3 Use of Works and Document. The State and Grantee shall jointly have the right to make, have
made, reproduce, modify, distribute, perform, and otherwise use the Works, including Documents
produced under this Contract, for noncommercial research, scholarly work, government purposes,
and other noncommercial purposes without payment or accounting to the other party. No
commercial development, manufacture, marketing, reproduction, distribution, sales or licensing of
the Works, including Documents, shall be authorized without a future written Contractual
agreement between the parties.
10.2.4 Possession of Documents. The Documents may remain in the possession of the Grantee. The State
may inspect any of the Documents at any reasonable time. The Grantee shall provide a copy of the
Documents to the State without cost upon the request of the State.
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11. Publicity and Endorsement
11.1 Publicity. Any publicity regarding the subject matter of this Grant Contract must identify the State as the
sponsoring agency and must not be released without prior written approval from the State's Authorized
Representative. For purposes of this provision, publicity includes notices, informational pamphlets, press
releases, research, reports, signs, and similar public notices prepared by or for the Grantee individually or
jointly with others, or any Subcontractors, with respect to the program, publications, or services provided
resulting from this Grant Contract.
11.2 Endorsement. The Grantee must not claim that the State endorses its products or services.
12. Governing Law, Jurisdiction, and Venue
Minnesota law, without regard to its choice-of--law provisions, governs this Grant Contract. Venue for all legal
proceedings out of this Grant Contract, or its breach, must be in the appropriate state or federal court with competent
jurisdiction in Ramsey County, Minnesota.
13. Termination
The State may cancel this Grant Contract at any time, with or without cause, upon 30 days' written notice to the
Grantee. Upon termination, the Grantee will be entitled to payment, determined on a pro rata basis, for services
satisfactorily performed. The State will only seek reimbursement of funds given under this Grant Contract for Work
was not performed satisfactorily or in good faith.
14. Data Disclosure
Under Minnesota Statutes § 270C.65, Subdivision 3, and other applicable law, the Grantee consents to disclosure of
its Social Security number, federal employer tax identification number, and/or Minnesota tax identification number,
already provided to the State, to federal and state tax agencies and state personnel involved in the payment of state
obligations. These identification numbers maybe used in the enforcement of federal and .state tax laws which could
result in action requiring the Grantee to file state tax returns and pay delinquent state tax liabilities, if any.
15. Insurance Requirements
15.1 Grantee shall not commence work under the Agreement until it has obtained all the insurance described below
and the State of Minnesota has approved such insurance. Grantee shall maintain such insurance in force and
effect throughout the term of the Grant Contract.
15.2 The Grantee is required to submit acceptable evidence of insurance coverage requirements prior to
commencing work under the Grant Contract and in accordance with the Tort Claims Act as stated in Minnesota
Statutes §466.04.
15.3 Grantee or its Subcontractor is required to maintain and furnish satisfactory evidence of the following
insurance policies:
15.3.1 Workers' Compensation Insurance: Except as provided below, Grantee must provide Workers'
Compensation insurance for all its employees and, in case any work is subcontracted, Grantee will
require the Subcontractor to provide Workers' Compensation insurance in accordance with the
statutory requirements of the State of Minnesota, including Coverage B, Employer's Liability.
Insurance minimum amounts are as follows:
$100,000 -Bodily Injury by Disease per employee
$500,000 -Bodily Injury by Disease aggregate
$100,000 -Bodily Injury by Accident
If Minnesota Statute 176.041 exempts Grantee from Workers' Compensation insurance or if the
Grantee has no employees in the State of Minnesota., Grantee must provide a written statement,
signed by an Authorized Representative, indicating the qualifying exemption that excludes Grantee
from the Minnesota Workers' Compensation requirements.
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If during the course of the Agreement the Grantee becomes eligible for Worker's Compensation,
the Grantee must comply with the Workers' Compensation Insurance requirements herein and
provide the State of Minnesota with a certificate of insurance.
15.3.2 General Liability: Grantee is required to maintain insurance protecting it from claims for damages
for bodily injury, including sickness or disease, death, and for care and loss of services as well as
from claims for property damage, including loss of use which may .arise from operations under the
Agreement whether the operations are by the Grantee or by a Subcontractor or by anyone directly
or indirectly employed by the Grantee under the Agreement. Insurance minimum amounts are as
follows:
$2,000,000 -per occurrence
$2,000,000 -annual aggregate
$2,000,000 -annual aggregate -Products/Completed Operations
The following coverages shall be included:
Premises and Operations Bodily Injury and Property Damage
Personal and Advertising Injury
Blanket Contractual Liability
Products and Completed Operations Liability
State of Minnesota named as an Additional Insured
15.3.3 Automobile Liability: Grantee is required to maintain insurance protecting the Grantee from
claims for damages for bodily injury as well as from claims for property damage resulting from the
ownership, operation, maintenance or use of all owned, hired, and non-owned autos which may
arise from operations under this Agreement, and in case any work is subcontracted the Grantee will
require the Subcontractor to provide Commercial Automobile Liability. Insurance minimum
amounts are as follows:
$2,000,000 -per occurrence Combined Single limit for Bodily Injury and Property Damage
In addition, the following coverages should be included:
Owned, Hired, and Non-owned Automobile
15.3.4 Professional Liability Insurance: This policy will provide coverage for all claims the Grantee, or
its Subcontractors, may become legally obligated to pay, resulting from any actual or alleged
negligent act, error, or omission related to Grantee's or its Subcontractors' professional services
required under the Grant Contract.
$2,000,000 -per claim or event
$2,000,000 -annual aggregate
Any deductible will be the sole responsibility of the Grantee or its Subcontractor and may not
exceed $50,000 without the written approval of the State. If the Grantee desires authority from the
State to have a deductible in a higher amount, the Grantee shall so request in writing, specifying the
amount of the desired deductible and providing financial documentation by submitting the most
current audited financial statements or other approved documentation so that the State can ascertain
the ability of the Grantee or Subcontractor to cover the deductible from its own resources.
The retroactive or prior acts date of such coverage shall not be after the effective date of this
Agreement and Grantee or Subcontractor shall maintain such insurance for a period of at least 3
(three) years, following completion of the work. If such insurance is discontinued, extended
reporting period coverage must be obtained by Grantee or Subcontractor to fulfill this requirement.
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15.4 Additional Insurance Conditions:
(1) Grantee's policy(ies) or Subcontractor's shall be primary insurance to any other valid and collectible
insurance available to the State of Minnesota with respect to any claim arising out of Grantee's
performance under this Agreement;
(2) Grantee's or Subcontractor's policy(ies) and Certificate(s) of Insurance shall contain a provision that
coverage afforded under the policy(ies) shall not be cancelled without at least thirty (30) days
advanced written notice to the State of Minnesota;
(3) Grantee or Subcontractor is responsible for payment of Grant Contract-related insurance premiums
and deductibles;
(4) If Grantee or Subcontractor is self-insured, a Certificate of Self-Insurance must be attached;
(5) Include legal defense fees in addition to its liability policy limits, with the exception of Professional
Liability Insurance requirements, above; and
(6) Obtain insurance policies from an insurance company having an "AM BEST" rating of A- (minus);
Financial Size Category (FSC) VII or better and must be authorized to do business in the State of
Minnesota or obtain comparable coverage under a program of self-insurance.
(7) An Umbrella or Excess Liability insurance policy may be used to supplement the Contractor's policy
limits to satisfy the full policy limits required by the Contract.
15.5 The State reserves the right to immediately terminate the Grant Contract if the Grantee or Subcontractor is not
in compliance with the insurance requirements and retains all rights to pursue any legal remedies against the
Grantee. All insurance policies must be open to inspection by the State, and copies of policies must be
submitted to the State's Authorized Representative upon written request.
16. Change Orders
If the State's Authorized Representative or the Grantee's Authorized Representative identifies a minor change
needed in the Work Plan and budget, either party may initiate a Change Order using the Change Order Form
provided by the MPCA. Minor changes are defined as reallocating less than 10% or $50,000, whichever is less, of
the overall contract, cumulatively, whether between or within Tasks or Objectives. Change Orders may not delay or
jeopardize the success of the Project, alter the overall scope of the Project, increase or decrease the overall amount of
the Grant Contract, or cause an extension of the term of this Grant Contract. Major changes or reallocations (over
10% or $50,000) require an Amendment rather than a Change Order.
The State's Authorized Representative and the Grantee's Authorized Representative shall sign the Change Order
Form in advance of doing the work, which will then become an integraLand enforceable part of the Contract.
17. Use of Subcontractors and Prevailing Wage
If the Project includes erection, construction, remodeling, or repairing of a public building or other public work
financed in whole or part by State funds, it is subject to Prevailing Wage laws in accordance with Minnesota Statutes
177.30-.32, 177.41-.44, 16.B, and 16C. The Grantee and/or Subcontractor is/are solely responsible for payment of
any and all required Prevailing Wage rates. Prevailing Wages requirements are contained in ATTACHMENT C,
which is attached and incorporated into this Grant Contract. The Prevailing Wages for Sherburne County, listed in
the original RFP, apply to this Grant and are included in ATTAC>=IMENT C.
18. Web Posting Requirement
The Grantee's expenditure information and measurable outcomes from implementation of this Grant will be posted
on State's website. The information required from the Grantee to satisfy this requirement will not exceed the
reporting necessary to document progress and successful completion of this Grant. In addition, the Grantee must
provide, at a minimum, copies of those parts of the Facilities Planning and the Plans and Specifications documents
that are funded by the Grant and approved by the State; so that in keeping with Minnesota Statutes § 116.195 subpart
2, the State may make these documents available on its website.
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1. STATE ENCUMBRANCE VERIFICATION 3. MINNESOTA POLLUTION CONTROL
Individual certifies that funds have been encumbered as required by AGENCY
Minnesota Statutes § 16.A.15 and § 16C.05.
By:
Signed:
Date:
Date:
CFMS Grant Contract No. B
2. CITY OF ELK RIVER
The Grantee certifies that the appropriate person(s) have executed the
Grant Contract on behalf of the Grantee as required by applicable articles,
bylaws, resolutions, or ordinances.
By:
Title:
Date:
Assistant Chief Financial Officer
Distribution:
Agency
Grantee
State's Authorized Representative -Copy
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ATTACHMENT B: SPECIAL TERMS AND CONDITIONS
1. Facilities Plan
Completed Facilities Plan. A completed Facilities Plan means a Facilities Plan /Preliminary Engineering Report
completed according to the provisions set forth in Minnesota Rules 7077.0272 FACILITIES PLAN FOR
WASTEWATER TREATMENT SYSTEMS, excluding parts D and G of Subpart 2a and excluding Subpart 5.
Preparation of the Facilities Plan shall also include the following supplemental information that shall be submitted to
MPCA in accordance with the Grant Contract:
(1) A summary of the proposed project that includes, at a minimum:
a. An indication of the daily and annual volumes of reused wastewater that will supplant water
currently acquired from a groundwater aquifer;
b. The source(s) of water used by the proposed beneficial user(s), and, as applicable, a copy of the
Minnesota Department of Natural Resources (MDNR) Water Allocation Permit or Permits according
to which the water is acquired;
c. Identification of the aquifer; and
d. A brief narrative description of the proposed project and its primary components and of the
disposition of the reused wastewater and the residual waters and solids deriving from the wastewater
after its treatment and beneficial use.
(2) Facility water balances for the proposed beneficial provider and beneficial user(s) as presently
NPDES/SDS-authorized. The water balance is represented by a line drawing of the water flows for the
facilities as presently authorized by their existing NPDES/SDS permits, showing operations contributing
water to the effluent and treatment units, and describing the treatment the water receives, including the
ultimate disposal of any solid or fluid wastes, including any direct and indirect discharges associated with
the wastewaters. Discharges include process and utility wastewaters, including those residuals generated by
water treatment. The water balances must illustrate how and where all wastewaters are managed. The water
balances must show approximate average and maximum design flows at intake and discharge points and
between units, including treatment units, for the proposed beneficial provider and beneficial user(s), and
describe the flow frequencies...
(3) Complete information on the proposed changes in NPDES/SDS-authorized chemical additions. This
information shall clearly identify, in relation to the proposed project:
a. The process for which the chemical additive will be used;
b. The Material Safety Data Sheet (MSDS) that include aquatic toxicity, human health, and
environmental fate information for the proposed chemical additive;
c. A complete product use and instruction label;
d. The commercial and chemical names and Chemical Abstract Survey (CAS) number for all
ingredients in the additive (if the MSDS does not include information on chemical composition,
including percentages for each ingredient totaling to 100%, contact the supplier to have this
information provided); and
e. The proposed method of chemical application, application frequency, concentration, and daily
average and maximum rates of use.
(4) A facility water balance that corresponds to the proposed project for the proposed beneficial provider
and beneficial user(s). The water balance is represented by a line drawing of the water flows for the
proposed project, showing operations contributing water to the effluent and treatment units, and describing
the treatment the water receives, including the ultimate disposal of any solid or fluid wastes, including any
direct and indirect discharges associated with the wastewaters. Discharges include process and utility
wastewaters, including those residuals generated by water treatment (including the treatment of reused
wastewater). The water balance must illustrate how and where all wastewaters are proposed to be managed.
The water balance shall address alternate sources and methods according to which the Elk River Station of
Great River Energy will make up the shortfall if -for whatever reason -the stipulated volume of wastewater
treated as prescribed herein and supplied by the City of Elk River to Elk River Station of Great River Energy
is unavailable. The water balance must show approximate average and maximum flows at intake and
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discharge points and between units, including treatment units, for the proposed beneficial provider and
beneficial user(s), and describe the flow frequencies. The water balance shall provide a contingency plan that
ensures that no untreated or inadequately treated wastewater will be delivered to the Elk River Station of
Great River Energy. It shall also address methods, procedures and improvements as necessary to ensure that
there shall be no bypassing of untreated or partially treated wastewater from the Elk River Municipal
Treatment Facilities or any intermediate unit process to the point of use by the Elk River Station of Great
River Energy.
(5) A complete projection of the water qualities associated with each of the flows illustrated in the water
balance described in the previous item. This water qualities projection shall include at least the following
potential pollutants: biochemical oxygen demand, fecal coliform, temperature (heat), residual chlorine,
ammonia, nitrate-nitrite, phosphorus, sulfate, calcium, magnesium, potassium, sodium, boron, chloride,
fluoride, bicarbonates, total dissolved solids, specific conductance and pH; the organic priority pollutants
identified under the volatile, acid, base/neutral, and pesticide fractions using EPA methods 624, 625 and
608 (40 CFR Pt. 136, October 25, 1984) as listed in Table II of 40 CFR Pt. 122, Appendix D; the following
total metals using either EPA method 200.7 or 200.8 or their corresponding graphite furnace method found
in Table IB of 40 CFR Pt. 136.3--antimony, arsenic, beryllium, cadmium, chromium, copper, lead, nickel,
selenium, silver, thallium, and zinc; total cyanide (EPA method 335), total phenolic compounds (EPA
method 420), hardness (total as CaCO3, EPA method 130); and total mercury (EPA method 1631). This
water qualities projection shall ensure that the cation:anion charge balances are properly accounted for. This
water qualities projection shall ensure that the proposed maximum rates of chemical additions to the water
system are fully accounted for.
(6) An explanation of how, for each specific type of reuse(s) of wastewater effluent for the proposed project,
the level of treatment meets the minimum criteria as specified in the State of California Department of
Public Health, Regulations Related to Recycled Water, January 2009, TITLE 17 and TITLE 22; CODE OF
REGULATIONS which is incorporated herein by reference, and available at:
http://www.cdph.ca.gov/certlic/drinkingwater/documents/lawbook/rwregulations-O1-2009.pdf. One method
of explaining how the specific treatment unit meets the minimum State of California criteria would be to
use an accepted technology as identified in the State of California Division of Drinking Water and
Environmental Management Treatment Technology Report for Recycled Water December 20091ocated at:
www.cdph.ca.gov/certlic/drinkingwater/Documents/DWdocuments/RecycledWaterTechnolo ,g Luting 12_
2009.pdf
(7) The distance over which the water flows identified in item (4) above are proposed to be conveyed between
one NPDES/SDS-authorized facility and another, the means of conveyance, and the public or private entity
that would own and operate the conveyance structures.
(8) MPCA preliminary effluent and, if applicable, land disposal, limits for the proposed project. This should
include any information for those potential pollutants identified in item (5) that may have the potential to
violate water quality standards.
(9) An analysis of the feasible treatment and disposal alternatives according to unit processes and combinations
thereof (including the modification and enhancement of existing unit processes) capable of providing the
treatment necessary to achieve the limit(s) specified in item (8), and for each alternative an identification
and description of applicable local, State and federal requirements and requisite permits (including the
applicable air quality, solid and hazardous waste management rules).
(10) Where conveyance between NPDES/SDS facilities is part of the proposed project (per item (7)), an analysis
of the feasible alternatives capable of providing such conveyance.
(11) An evaluation of the impact of the feasible alternatives on the existing WWTF and its collection system,
including sewers and lift stations.
(12} Selection of a Comprehensive Alternative. Based on the range of feasible alternatives whereby the
purposes identified and described in items (10) through (11) can be integrated and accomplished as a
comprehensive project alternative, a suitable number of such comprehensive alternatives shall be identified
and described. For each such comprehensive alternative a present worth calculation shall be undertaken,
where the present worth shall be based on costs of constructing, and operating and maintaining all of the
facilities and appurtenances (public and private) for a period of 20 (twenty) years. The index factor for the
present worth calculation shall be as provided by the MPCA. The cost-effectiveness of the proposed project
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shall be the present value of constructing, and operating those facilities and appurtenances that make up the
project for twenty years.
2. Plans and Specifications
Completed Plans and Specifications. Acompleted set of Plans and Specifications prepared according to the
provisions of Minnesota Rules 7077.0274 PLANS AND SPECIFICATIONS FOR WASTEWATER TREATMENT
SYSTEMS, excluding Subpart 2.A (2); Subpart 2.G and Subpart 3.C and including the following supplemental
information shall be submitted to MPCA in accordance with the Grant Agreement:
(1) The Plans and Specifications shall generally be consistent with the approved Facilities Plan. A written
summary of any changes to the approved Facilities Plan or to Part 1.,(1) through (12) of the supplemental
information for the Facilities Plan shall be submitted as supporting information with the Plans and
Specifications.
(2) As appropriate for the proposed project, a National Pollutant Discharge Elimination System (NPDES)/State
Disposal System (SDS) permit application shall be submitted according to Minnesota Rules 7001.0050 for
discharges of the Elk River municipal wastewater treatment facilities. This application must include
addressing any sludge or bio_solids related issues for the proposed Plans and Specifications consistent with
Minnesota Rules 7041.0700.
3. Construction Conditions and Requirements
In constructing the Project, the Grantee shall be subject to the following:
(1) Construction of the wastewater facilities and appurtenances improvements shall be as described and detailed
in Plans and Specifications approved in writing by the MPCA. Construction shall be undertaken and
completed according to the provisions of the State of Minnesota Uniform Municipal Contracting Law
(Minnesota Statutes §471.345) and other applicable State laws and requirements applicable to capital
improvements;
(2) All construction funding must be obtained and verified with the State prior to initiating the construction
phase of the Project (Minnesota Statutes § 16B.31)
(3) The provisions of State Prevailing Wage requirements given in Minnesota Statutes, Sections 177.41 to
177.44, and as outlined in ATTACI-EVVIENT D;
(4) The Grantee will comply with Minnesota Statutes § 290.9705, as amended or supplemented from time to
time by withholding 8% (Eight Percent) of payments made to all out-of--State contractors once cumulative
payments made to the contractor for work done in Minnesota exceed $50,000 in a calendar year, unless an
exemption is granted by the Department of Revenue. Withheld amounts are required to be deposited with
the Minnesota Department of Revenue.
(5) The Grantee acknowledges its responsibility to complete the Project regardless of the availability of
additional funding from the State.
(6) The Grantee shall not enter into a sale, lease or transfer of any part of the Project, or change the use of the
Project, without the prior written approval of the State if such sale, lease, transfer, or change in use would
violate any terms or conditions of the Grant Contract.
(7) The Grantee shall maintain adequate property insurance coverage for the Project in such amounts with such
limits as it determines in good faith to be reasonable or in such amounts and with such limits as may be
required by the State from time to time.
(8) The Grantee agrees to exert all reasonable efforts to investigate claims which the Grantee may have against
third parties with respect to the construction of the Project and, in appropriate circumstances, take whatever
action, including legal action, the Grantee reasonably determines to be appropriate.
(9) In keeping with Minnesota Laws 2010, Chapter 361, Article 3, Section 5, upon initiation of Construction
and throughout the Construction process the Grantee must post a permanent sign with the specified logo
that identifies the project as funded by the Minnesota Clean Water Fund.
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4. Completion of Construction of the Project
Near the close of construction and after construction completion of the Project the Grantee shall be subject to the
following:
(1) At least 60 (Sixty) days before the initiation of operation of all of the new treatment units, and all of the
associated delivery and return (if applicable) conveyance systems, the Grantee shall notify MPCA of the
anticipated start-up date to schedule an inspection of the Project. Initiation of Operation is defined in
Minnesota Rules 7077.0105, Subpart 18a.
(2) The Grantee will submit a Performance Certification letter 90 (Ninety) days after the initiation of operation
date. The Performance Certification letter shall be signed by the Grantee and a professional engineer
registered in the State of Minnesota, and shall include Statements that address the following performance
standards:
a. The project has been completed according to the approved construction Plans and Specifications and
change orders;
b. The Grantee (municipality) has sufficient number of trained and capable personnel with the ability to
provide adequate operation and maintenance of all the new project components;
c. The project accepts the hydraulic and organic loadings to the extent described in the approved design
Specifications and the NPDES/SDS permit conditions;
d. The project new facilities meet the effluent. limitations as assigned in the NPDES/SDS permit.
(3) The Grantee shall submit one copy of "as-built" Plans and Specifications in the electronic format as
identified the MPCA website at: http://www.pca.State.mn.us/index.php/view-document.html?gid=15492
Also, observe the Website-Posting Requirement in the Grant Contract).
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