RES 89-007 RESOLUTION AUTHORIZING THE MAYOR AND ACTING CITY MANAGER TO EXECUTE THE AGREEMENT BETWEEN THE CITY OF ST. ANTHONY AND THE MINNESOTA POLLUTION CONTROL AGENCY (MPCA)

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-15- 6.2 The City shall be paid by the State and/or EPA as a contractor for portions of the Remedial Action ,as described in Part 4.6 of this • contract. Tasks 1 and 2 are 100 percent reimbursable. Task 3 is 90 percent reimbursable. 6.3 The City is assuring payment for its share of operation and maintenance of the remedial action as the following paragraph from the NBCA describes: The ROD [Record of Decision] declares that the operation and maintenance activities to assure continued effectiveness of the remedy will be considered part of the approved action and eligible for CERCIA monies for a period not to exceed 10 years. The "Recommended Alternative" section states: "Operation and maintenance shall be considered to be any activities required to maintain the effectiveness of the treatment or measure following the initial 10 year period [of extended RA). . .only the construction or installation and operation of the GAC treatment system and the pipeline will be considered the remedial action. Therefore, operation of wells 3, 4, and 5 are not considered part of the remedial action. " The State assures funding of 10% of the capital costs of the remedial action. Through an agreement with the City of St. Anthony, the State assures funding of 10% of the annual operation costs of the remedial action for up to ten years and all Operation and Maintenance costs for the life of the project. The City will also assure funding of all costs associated with the operation of wells 3, 4, and 5. Pursuant to • CERCQA Section .104 (c) (6) the State assures payment of 100% of the Operation and Maintenance costs, in accordance with the final extended RA plan, from nonfederal sources after the extended RA. The following table provides a summary. Costs Activity Responsibility Duration RA Construction 90% EPA Construction Period 10% State O & M - GAC facility 90% EPA 10 years, Extended RA and pipeline 10% City 100% City after Extended RA for life of the remedy Normal Well 100% City Entire RA, Extended Operation Costs of RA, and thereafter Wells 3, 4, and 5 for life of the remedy 6.4 The City recognizes that reimbursement is dependent upon funding through the EPA, and that the State is not responsible for changes or delays caused by EPA . Expenses for activities undertaken • by the City related to this agreement prior to the Cooperative Agreement Award and the effective date of this contract are not reimbursable.