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Home My WebLink About#09 - MPCA Grant Amendment STAFF REPORT DATE: August 7, 2024 CONSENT AGENDA ITEM: Approve Grant Agreement Amendment for the South Area Production Wells and Treatment Plant Project SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Nicole Miller, City Administrator Clarissa Hadler, Finance Director Marty Powers, Public Works Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve Grant Agreement Amendment #1 with the MPCA for the South Area Production Wells and Treatment Plant Project? BACKGROUND: On October 17, 2023 the City Council approved a Grant Agreement with the MPCA (SWIFT Contract No. 237685) to evaluate a revised Water Supply Plan to construct new production wells (Well 6, and Well 3 or 7) to be located in the south growth area and high‐pressure zone. The new Wells are to be used in conjunction with the City’s existing Production Wells 2, 4 and 5. The scope of the planning and design work includes the improvements necessary for permanent PFAS treatment for the south area production Wells. On February 20, 2024 the City Council approved the preliminary findings and recommendations to proceed with design phase engineering for Well 6 and a PFAS Water Treatment Plant to be located in the south part of the City in the high-pressure zone, indicating a Council preference to locate the treatment plant north of 10th Street (CSAH 10). PROPOSAL DETAILS/ANALYSIS: Following approval of the preliminary findings and recommendations for the work, City staff applied for a Grant Amendment, to increase the Grant amount from $40,000 to $110,000, to increase the available funding to allow work to continue on the Project while the full Project Grant Application is being prepared by City staff, and reviewed and approved by the MPCA. The Grant Amendment request was submitted by staff on April 18, 2024. FISCAL IMPACT: The grant provides for a reimbursement to the City in the not to exceed amount of $110,000; an increase of $70,000. The Grant is set to expire on December 31, 2025. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, the Grant Agreement Amendment #1 with the MPCA for the South Area Production Wells and Treatment Plant Project. “Move to approve the Grant Agreement Amendment #1 with the MPCA for the South Area Production Wells and Treatment Plant Project in the amended not to exceed amount of $110,000.” ATTACHMENTS: 1. MPCA Grant Agreement Amendment #1; SWIFT Contract No. 237685. Grant Agreement Amendment State of Minnesota Doc Type: Contract SWIFT Contract Number: 237685 Agency Interest ID: 90810 Activity ID: PRO20230003 Contract Start Date: October 13, 2023 Total Contract Amount: $110,000.00 Original Contract Expiration Date: December 31, 2025 Original Contract: $40,000.00 Current Contract Expiration Date: December 31, 2025 Previous Amendment(s) Total: $0 Requested Contract Expiration Date: N/A This Amendment: $70,000.00 This amendment is by and between the State of Minnesota, acting through its Commissioner of the Minnesota Pollution Control Agency, 520 Lafayette Road North, St. Paul, MN 55155‐4194 (“MPCA” or “State”) and City of Lake Elmo, 3880 Laverne Avenue North, Lake Elmo, MN 55042 ("Grantee" or "Contractor"). Recitals 1. The State has a grant contract with the Grantee identified as SWIFT Contract Number 237685 ("Original Grant Agreement") to provide the City of Lake Elmo South Area Production Wells and Treatment Plant Planning project. 2. The Original Agreement is being amended to increase funding to meet project completion and update authorized representatives. 3. The State and the Grantee are willing to amend the Original Grant Agreement as stated below. Grant Agreement Amendment In this Amendment, changes to pre‐existing Agreement language will use strike through for deletions and underlining for insertions. REVISION 1. Clause 2. "Grantee’s Duties" is amended as follows: 2. Grantee’s Duties In this planning and design phase, the City of Lake Elmo will review and identify potential sites for a South Water Treatment Plant (WTP) for two new production wells (wells 6 and well 3 or 7). due to changing PFAS levels changing the City’s plans. The City will continue planning and design work necessary to secure property for the water treatment plant on the sites identified. The City will also work with MPCA staff on the development and scope of a project grant application. Because wells 6 and well 3 or 7 are for growth, the design and construction phase for these wells or a test well will not be reimbursable, except for the additional costs related to the disposal of PFAS groundwater during well development. The City will also evaluate the potential use of existing well 3 and identify and define the proposed scope of improvements for permanent PFAS treatment for the south area production wells. REVISION 2. Clause 4.1. "Consideration" is amended as follows: 4.1 Consideration. The State will pay for all services performed by the Grantee under this grant agreement as follows: (a) Compensation. The MPCA will reimburse the Grantee according to approved invoices relating to the duties listed in Clause 2. The MPCA will review the expense documentation submitted by the Grantee for the costs and will reimburse the Grantee for reasonable and necessary expenditures, as determined by the MPCA. Any project components and costs inconsistent with the Conceptual Plan will be required to have supporting documentation for consideration of eligibility. Items that are determined ineligible will not be reimbursed. The Grantee must submit a request in writing to the MPCA for approval prior to using the contingency funds. (b) Travel expenses. Reimbursement for travel and subsistence expenses actually and necessarily incurred by the Grantee as a result of this grant agreement will be provided to meet the duties listed in Clause 2; 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 Minnesota Management and Budget (MMB). 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. (c) Total obligation. The total obligation of the State for all compensation and reimbursements to the Grantee under this grant agreement will not exceed $40,000.00 (Forty Thousand Dollars and Zero Cents) $110,000.00 (One Hundred Ten Thousand Dollars and Zero Cents). REVISION 3. Clause 6 "Authorized Representative" is amended as follows: 6. Authorized Representative The State's Authorized Representative is Elizabeth Kaufenberg, 520 Lafayette Road, St. Paul, MN 55155, 651‐757‐ 2481, elizabeth.kaufenberg@state.mn.us, Andri Dahlmeier, 520 Lafayette Road, St. Paul, MN 55155, 651‐757‐2718, andri.dahlmeier@state.mn.us, or their successor, and has the authority to monitor the Grantee’s performance and to accept the services provided under this agreement. If the services are satisfactory, the MPCA’s Project Manager will certify acceptance of each invoice submitted for payment. The State’s Project Manager is Megan Holthaus, 520 Lafayette Road North, St. Paul, MN 55155, 651‐757‐2843, megan.holthaus@state.mn.us, or their successor, and has the authority to monitor the Grantee’s performance and receive invoices from the Grantee. The Grantee’s Authorized Representative is Kristina Handt Nicole Miller, 3880 Laverne Avenue North, Lake Elmo, MN 55042, 651‐747‐3905, khandt@lakeelmo.org NMiller@lakeelmo.gov, or their successor. If the Grantee’s Authorized Representative changes at any time during this grant agreement, the Grantee must immediately notify the State. Except as amended herein, the terms and conditions of the Original Grant Agreement and all previous amendments and change orders remain in full force and effect. The Original Grant Agreement and any previous amendments and change orders are incorporated into this amendment by reference. Signatures Title Name Signature Date \t1\ \n1\ \s1\ \d1\