HomeMy WebLinkAbout#03 - MPCA Grant Agreement for Well 2 PFAS STAFF REPORT
DATE: October 1, 2024
CONSENT
AGENDA ITEM: Approve MPCA Grant Agreement for Well#2 PFAS Water Treatment Plant
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 the MPCA Grant Agreement for the
design and construction of the Well 2 PFAS Water Treatment Plant project?
BACKGROUND: On February 20, 2024 the City Council approved the preliminary findings and
recommendations to proceed with design phase engineering for an Anion Exchange (IX) Treatment facility
for Well 2 using paired 8‐ft diameter and 15‐ft tall steel pressure vessels.
PROPOSAL DETAILS/ANALYSIS: On September 16, 2024, staff received the MPCA Grant Agreement
for the design and construction of the Well 2 PFAS Water Treatment Plant project. The Agreement is
generally consistent with the application and request submitted by the City on July 11, 2024. The Grant
Agreement scope of work includes planning, design, and construction phases and will provide equipment,
media, and well pump/well building modifications to achieve removal of PFAS present in Well 2. The work
includes implementation of treatment on Well 2 as an expedited Project. The Grant is set to expire on
December 31, 2026.
FISCAL IMPACT: The grant provides for a reimbursement to the City in the not to exceed amount of
$2,283,000.
The Estimated Total Project Costs are $2,341,000. The Well 2 PFAS Water Treatment Plant is estimated
to be $2,283,000 to be paid from the MPCA Grant Agreement. The remaining $58,000 for the Well 2
Rehabilitation work is not grant eligible and will be paid from the Water Enterprise Fund.
RECOMMENDATION: Staff is recommending that the City Council approve, as part of the consent
agenda, the Grant Agreement with the MPCA in the not to exceed amount of $2,283,000 for the design and
construction of the Well 2 PFAS Water Treatment Plant Project. If removed from the consent agenda, the
recommended motion is as follows:
“Move to approve the MPCA Grant Agreement in the not to exceed amount of $2,283,000 for the
design and construction of the Well 2 PFAS Water Treatment Plant Project.”
ATTACHMENTS:
1. MPCA Grant Agreement PRO20240001 for the Well 2 PFAS Water Treatment Plant.
Grant Agreement
State of Minnesota
Doc Type: Contract/Grant
SWIFT Contract Number:
Agency Interest ID: 90810
Activity ID: PRO20240001
This Grant Agreement is 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”), City of Lake Elmo, a
Minnesota municipal corporation, 3880 Laverne Avenue North, Lake Elmo, MN 55042 ("Grantee" or “City”).
Recitals
1. Under Minn. Stat. § 116.03, subd. 2, the State is empowered to enter into this grant.
2. The City is authorized to enter into this grant under Minn. Stat. § 412.211.
3. The State and City are in need of the City of Lake Elmo Well 2 Design and Construction project, as part of the
Conceptual Drinking Water Supply Plan (Conceptual Plan), to address Perfluoroalkyl Substances (PFAS) impacts to
drinking water supplies in the East Metro area.
4. Grantee will comply with required grants management policies and procedures set forth through Minn. Stat. §
16B.97, subd. 4(a)(1).
5. The Grantee represents that it is duly qualified and agrees to perform all services described in this grant agreement
to the satisfaction of the State. Pursuant to Minn. Stat. § 16B.98, subd. 1, the Grantee agrees to minimize
administrative costs as a condition of this grant.
Grant Agreement
1. Term of Grant Agreement
1.1 Effective date: September 20, 2024, Per Minn. Stat.§16B.98, Subd. 5, the Grantee must not begin work until
this grant contract is fully executed and the State's Authorized Representative has notified the Grantee that
work may commence. Per Minn.Stat.§16B.98 Subd. 7, no payments will be made to the Grantee until this
grant contract is fully executed.
1.2 Expiration date: December 31, 2026, 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 agreement:
Indemnification; State Audits; Government Data Practices and Intellectual Property; Publicity and
Endorsement; Governing Law, Jurisdiction, and Venue; and Data Disclosure.
2. Grantee’s Duties
The City will implement expedited treatment on Well 2. Work will include planning, design, and construction phases
and will provide equipment, media, and well pump/well building modifications to achieve removal of PFAS present
in Well 2.
3. Time
The Grantee must comply with all the time requirements described in this grant agreement. In the performance of
this grant agreement, time is of the essence.
4. Consideration and Payment
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 $2,283,000.00 (Two Million Two Hundred Eighty‐
Three Thousand Dollars and Zero Cents).
4.2 Payment
(a) Invoices. 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 must be submitted timely and according to the following schedule: monthly or at least quarterly.
Invoices must be emailed to mpca.ap@state.mn.us, and contain the following information:
Name of Grantee
Grantee project manager
Invoice number
Invoice date
MPCA project manager
SWIFT Contract No.
Copies of paid in full receipts
Invoicing period (actual working period)
Prevailing Wage documentation (if applicable)
If there is a problem with submitting an invoice electronically, please contact the Accounts Payable Unit at
651‐757‐2491.
The Grantee shall submit an invoice for the final payment upon submittal of the final progress and
financial report within 15 (fifteen) days of the original or amended end date of this grant agreement. The
State reserves the right to review submitted invoices after 15 (fifteen) days and make a determination as
to payment.
(b) Unexpended Funds. The Grantee must promptly return to the State any unexpended funds that have not
been accounted for annually in a financial report to the State due at grant closeout.
4.3 Contracting and Bidding Requirements
Per Minn. Stat. §471.345, grantees that are municipalities as defined in Subd. 1 must follow the law.
(a) For projects that include construction work and have a total project cost of $25,000 or more, prevailing
wage rules apply per Minn. Stat. §§177.41 through 177.44. These rules require that the wages of laborers
and workers should be comparable to wages paid for similar work in the community as a whole.
(b) The grantee must not contract with vendors who are suspended or debarred in MN:
https://mn.gov/admin/osp/government/suspended‐debarred/
4.4 Prevailing Wage (if applicable)
Pursuant to Minnesota Statutes 177.41 to 177.44 and corresponding Minnesota Rules 5200.1000 to
5200.1120, this contract is subject to the prevailing wages as established by the Minnesota Department of
Labor and Industry. Specifically, all contractors and subcontractors must pay all laborers and mechanics the
established prevailing wages for work performed under the contract. Failure to comply with the
aforementioned may result in civil or criminal penalties. Rates are listed in Attachment A.
In compliance with Minn. Stat. § 177.43, subd. 3 and §177.44, subd. 5, the wages of laborers, workers, and the
mechanics on projects financed in whole or part by State Funds should be comparable to wages paid for
similar work in the community as a whole. Project includes erection, construction, remodeling, or repairing of
a public building or other public work financed in whole or part by State funds.
Any work on real property which uses the skill sets of any trades covered by Labor Code and Class under
prevailing wages is construction and requires prevailing wages. See
http://www.dli.mn.gov/business/employment‐practices/prevailing‐wage‐information for a list of affected
trades.
The Contractor shall pay prevailing wages to its employees when conducting construction activities under this
agreement.
Applicability. In accordance with Minn. Stat. § 177.43, subd. 7. This does not apply to an agreement or work
under an agreement, under which:
A. the estimated total cost of completing the project is less than $2,500 and only one trade or occupation
is required to complete the work; or
B. the estimated total cost of completing the project is less than $25,000 and more than one trade or
occupation is required to complete it.
Choose from Commercial, Highway/Heavy, or Residential Wage Rates:
The prevailing wage rate requirements are attached as Attachment A.
Prevailing Wage Payroll Information:
In accordance with Minn. Stat. § 177.30, subd. 4, and § 177.43, subd. 3, the Contractor and Subcontractor
shall furnish to the Contracting Authority and the Project Owner:
• All payrolls, of all workers on the project, a certified payroll report via e‐mail as attachments, a State of
Minnesota Prevailing Wage Payroll Report as a Microsoft Excel file and Statement of Compliance Form
as a PDF file to the appropriate e‐mail addresses: prevailingwage.pca@state.mn.us and MPCA Project
Manager.
• The Subject line on the Contractor’s or Subcontractor’s e‐mail must give their firm’s name and the
Contract or Purchase Order Number.
• These completed forms must be furnished not more than 14 days after the end of each pay period.
• The State of Minnesota Prevailing Wage Payroll Report and Statement of Compliance Form are available
at http://www.dli.mn.gov/sites/default/files/pdf/pw_certified_payroll_form.pdf. Submit the completed
and signed State of Minnesota Prevailing Wage Payroll Report as a Microsoft Excel file and the
Statement of Compliance Form as a PDF file, no other payroll forms will be accepted to meet this
requirement.
The prevailing wage payroll information forms that are submitted shall be maintained by the contracting
agency for a minimum of three years after final payment has been made on the project. All of the data
provided on the Prevailing Wage Payroll Information Form will be public data, which is available to anyone
upon request.
Refer vendor questions regarding the Prevailing Wage Laws to the Department of Labor and Industry at 651‐
284‐5091 or visit the website for Labor Standards Section, Prevailing Wage
http://www.dli.mn.gov/business/employment‐practices/prevailing‐wage‐information
All construction work needs an IC‐134 form submitted by the Contractor before payment can be made. The
Contractor can find a copy of the IC‐134 online at the Minnesota Department of Revenue website at
https://www.revenue.state.mn.us/sites/default/files/2019‐01/ic134.pdf.
4.5 Reporting Requirements
The Grantee shall submit to the State quarterly status reports, based on the effective date of this agreement.
5. Conditions of Payment
All services provided by the Grantee under this grant agreement must be performed to the State’s satisfaction, as
determined at the sole discretion of the State’s Authorized Representative/MPCA’s Project Manager and in
accordance with all applicable 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/Project Manager is 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 for this agreement is Megan Holthaus, 520 Lafayette Road, St. Paul, MN 55155, 651‐
757‐2843, megan.holthaus@state.mn.us, or their successor.
The Grantee’s Authorized Representative is Nicole Miller, 3880 Laverne Avenue North, Lake Elmo, MN 55042, 651‐
747‐3905, 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.
7. Assignment, Amendments, Change Orders, Waiver, and Grant Agreement Complete
7.1 Assignment. The Grantee shall neither assign nor transfer any rights or obligations under this grant agreement
without the prior written consent of the State, approved by the same parties who executed and approved this
grant agreement, or their successors in office.
7.2 Amendments. Any amendments to this grant agreement 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
agreement, or their successors in office.
7.3 Change orders. If the State's Project Manager or the Grantee’s Authorized Representative identifies a change
needed in the workplan and/or budget, either party may initiate a Change Order using the Change Order Form
provided by the MPCA. 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 Contract/Agreement, or cause an
extension of the term of this Agreement. Major changes require an Amendment rather than a Change Order.
The Change Order Form must be approved and signed by the State's Project Manager and the Grantee’s
Authorized Representative in advance of doing the work. Documented changes will then become an integral
and enforceable part of the Agreement. The MPCA has the sole discretion on the determination of whether a
requested change is a Change Order or an Amendment. The state reserves the right to refuse any Change
Order requests.
7.4 Waiver. If the State fails to enforce any provision of this grant agreement, that failure does not waive the
provision or the State’s right to enforce it.
7.5 Grant agreement complete. This grant agreement contains all negotiations and agreements between the
State and the Grantee. No other understanding regarding this grant agreement, whether written or oral, may
be used to bind either party.
8. Indemnification
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
agreement 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 agreement.
9. State Audits
Under Minn. Stat. § 16B.98, subd.8, the Grantee’s books, records, documents, and accounting procedures and
practices of the Grantee or other party relevant to this grant agreement or transaction 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 agreement, receipt and approval of all final reports, or the required period of time to satisfy all state and
program retention requirements, whichever is later.
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, Minn. Stat. Ch. 13, as it applies to all data provided by the State under this grant agreement, and
as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Grantee
under this grant agreement. The civil remedies of Minn. Stat. § 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. The
Grantee’s response to the request shall comply with applicable law.
10.2 Intellectual property rights
(a) Intellectual property rights. The State owns all rights, title and interest in all of the intellectual property
rights, including copyrights, patents, trade secrets, trademarks, and service marks in the Works and
Documents created and paid for under this grant agreement. Works means all inventions, improvements,
discoveries (whether or not patentable), databases, computer programs, reports, notes, studies,
photographs, negatives, designs, drawings specifications, materials, tapes, and disks conceived, reduced to
practice, created or originated by the Grantee, its employees, agents, and subcontractors, either
individually or jointly with others in the performance of this grant agreement. Works includes
“Documents.” Documents are the originals of any databases, computer programs, reports, notes studies,
photographs, negatives, designs, drawings, specifications, materials, tapes, disks, or other materials,
whether in tangible or electronic forms, prepared by the Grantee, its employees, agents, or
subcontractors, in the performance of this grant agreement. The Documents shall be the exclusive
property of the State and all such Documents must be immediately returned to the State by the Grantee,
at the Grantee’s expense, upon the written request of the State, or upon completion, termination, or
cancellation of this grant agreement. To the extent possible, those Works eligible for copyright protection
under the United States’ Copyright Act will be deemed to be “works made for hire.” The Grantee assigns
all right, title, and interest it may have in the Works and the Documents to the State. The Grantee must, at
the request of the State, execute all papers and perform all other acts necessary to transfer or record the
State’s ownership interest in the Works and Documents.
(b) 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 grant agreement, the Grantee
shall immediately give the State’s Authorized Representative written notice thereof, and must
promptly furnish the Authorized Representative with complete information and/or disclosure therein.
(2) Representation. The Grantee must 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 State, and that
neither Grantee nor its employees, agents, or subcontractors retain any interest in and to the Works
and Documents. The Grantee represents and warrants that the Works and Documents do not and will
not infringe upon any intellectual property rights of other persons or entities. Notwithstanding Clause
Liability, the Grantee shall indemnify, defend, to the extent permitted by the Attorney General, 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 will 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 Grantee’s or the State’s opinion is likely to arise, the Grantee
must, 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 as necessary
and appropriate to obviate the infringement claim. This remedy of the State will be in addition to and
not exclusive of other remedies provided by law.
(3) License. The State hereby grants a limited, no‐fee, noncommercial license to the Grantee to enable
the Grantee’s employees engaged in research and scholarly pursuits to make, have made, reproduce,
modify, distribute, perform, and otherwise use the Works, including Documents, for research activities
or to publish in scholarly or professional journals, provided that any existing or future intellectual
property rights in the Works or Documents (including patents, licenses, trade or service marks, trade
secrets, or copyrights) are not prejudiced or infringed upon, that the Minnesota Data Practices Act is
complied with, and that individual rights to privacy are not violated. The Grantee shall indemnify and
hold harmless the State for any claim or action based on the Grantee’s use of the Works or Documents
under the provisions of Clause 10.2(b)(2). Said license is subject to the State’s publicity and
acknowledgement requirements set forth in this grant agreement. The Grantee may reproduce and
retain a copy of the Documents for research and academic use. The Grantee is responsible for security
of the Grantee’s copy of the Documents. A copy of any articles, materials or documents produced by
the Grantee’s employees, in any form, using or derived from the subject matter of this license, shall be
promptly delivered without cost to the State.
11. Workers’ Compensation
The Grantee certifies that it is in compliance with Minn. Stat. § 176.181, subd. 2, pertaining to workers’
compensation insurance coverage. The Grantee’s employees and agents will not be considered State employees.
Any claims that may arise under the Minnesota Workers’ Compensation Act on behalf of these employees and any
claims made by any third party as a consequence of any act or omission on the part of these employees are in no
way the State’s obligation or responsibility.
12. Governing Law, Jurisdiction, and Venue
Minnesota law, without regard to its choice‐of‐law provisions, governs this grant agreement. Venue for all legal
proceedings out of this grant agreement, or its breach, must be in the appropriate state or federal court with
competent jurisdiction in Ramsey County, Minnesota.
13. Termination
13.1 Termination by the State. The State or Grantee may immediately terminate this grant agreement without
cause, upon 30‐days’ written notice to the other party. Upon termination, the Grantee will be entitled to
payment, determined on a pro rata basis, for services satisfactorily performed.
13.2 Termination for cause. The State may immediately terminate this grant agreement if the State finds that there
has been a failure to comply with the provisions of this grant agreement, that reasonable progress has not
been made or that the purposes for which the funds were granted have not been or will not be fulfilled. The
State may take action to protect the interests of the state of Minnesota, including the refusal to disburse
additional funds and requiring the return of all or part of the funds already disbursed.
13.3 Termination for insufficient funding. The State may immediately terminate this grant agreement if:
(a) It does not obtain funding from the Minnesota Legislature.
(b) Or, if funding cannot be continued at a level sufficient to allow for the payment of the services covered
here. Termination must be by written or fax notice to the Grantee. The State is not obligated to pay for
any services that are provided after notice and effective date of termination. However, the Grantee will be
entitled to payment, determined on a pro rata basis, for services satisfactorily performed to the extent
that funds are available. The State will not be assessed any penalty if the agreement is terminated because
of the decision of the Minnesota Legislature, or other funding source, not to appropriate funds. The State
must provide the Grantee notice of the lack of funding within a reasonable time of the State’s receiving
that notice.
14. Data Disclosure
Under Minn. Stat. § 270C.65, subd. 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 may be 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. Payment to subcontractors (if applicable)
As required by Minn. Stat. § 16A.1245, the prime contractor must pay all subcontractors, less any retainage, within
10 calendar days of the prime contractor's receipt of payment from the State for undisputed services provided by
the subcontractor(s) and must pay interest at the rate of one and one‐half percent per month or any part of a month
to the subcontractor(s) on any undisputed amount not paid on time to the subcontractor(s).
Signatures
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