Loading...
HomeMy WebLinkAboutCC RES 98-048 RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A LOAN AGREEMENT WITH THE METROPOLITAN COUNCIL Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 103170 Box: 26 Folder: RES 1998 Document: CC RES 98-048 RESOLUTION AUTHORIZING THE MAYOR AND CIN MANAGER TO ENTER INTO A LOAN AGREEMENT WITH THE METROPOLITAN COUNCIL CITY OF ST. ANTHONY RESOLUTION 98-048 A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A LOAN AGREEMENT WITH THE METROPOLITAN COUNCIL WHEREAS, the City of St. Anthony desires to reduce inflow and infiltration into its local sewer system; and WHEREAS, the Metropolitan Council desires to reduce excess inflow and infiltration into local sewer systems which discharge into the Metropolitan Disposal system; and WHEREAS, the Metropolitan Council has allocated funds for the elimination of excessive community inflow and infiltration into the local sewer systems. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of St. Anthony hereby authorizes the Mayor and City Manager to sign the Inflow/Infiltration Control Program Loan Agreement with the Metropolitan Council on behalf of the City of St. Anthony. • Adopted this day of -J'u n e- , 1998. -LMayor ATTEST: City Clerk Reviewed for administration: /' 0, City Nfanager Contract No. C-3368 MFLOW/INFILTRATION CONTROL PROGRAM LOAN AGREEMENT BETWEEN THE METROPOLITAN COUNCIL AND CITY OF SAINT ANTHONY THIS AGREEMENT is made and entered into by and between the Metropolitan Council (the "Council") and the city of Saint Anthony(the"Lendee"), each acting by and through its duly authorized officers. WHEREAS, it is in the best interests of the Metropolitan Council and a benefit to the metropolitan area to reduce excess inflow and infiltration("UI") into local sewer systems which discharge into the Metropolitan Disposal System, in order to reduce costs, increase system capacity, and delay the necessity to undertake capital improvements; and WHEREAS,the Metropolitan Council has allocated funds to be used for loans to communities serviced by the Metropolitan Disposal System in order to fund projects for the elimination of excessive community inflow and infiltration into the local sewer systems; and WHEREAS, it is in the best interests of the Lendee to reduce inflow and infiltration into its local • sewer system in order to increase capacity, reduce costs, and delay the necessity to undertake capital improvements; and WHEREAS,the Lendee is eligible to receive an InflowAnfiltration Control Program Loan and has submitted an application for a such a loan; and WHEREAS,the Council has reviewed the application and desires to assist the Lendee by the award of an Inflow/Infiltration Control Program Loan. NOW,THEREFORE, the Council and Lendee agree as follows: L LENDEE PERFORMANCE OF LOAN PROJECT 1.01 Loan Project Activities. The Lendee agrees to perform and complete in a satisfactory and proper manner the project as described in the Lendee's application for loan assistance("Loan Project"), incorporated in this agreement by reference, and in accordance with the terms and conditions of this agreement. Specifically,the Lendee agrees to perform the Loan Project described in Exhibit A, which is attached to and incorporated in this agreement. The Lendee may engage contractors to perform the Loan Project. However, the Lendee retains primary responsibility to the Council for performance of the Loan Project. • 3 3.02 Lendee's Match. The Lendee has an obligation under this loan agreement to share in the costs of the Loan Project by providing at least a fifty percent(50%) cash or in-kind match. Accordingly, the Lendee agrees to provide$40,000 in matching funds("Lendee's Match") during the Project Activity Period. The Lendee agrees that there will be no reduction in the monetary amount of match unless there is at the same time a proportionate reduction in the Total Loan Amount. 3.03 Distribution of Loan Funds. Loan funds will be distributed by the Council according to the following schedule: a. Upon commencement of the Loan Project funded by this loan, the Council will distribute to the Lendee fifty percent(50%) of the Total Loan Amount, referred to in this agreement as the "Initial Principal." b. Upon Council approval of the final reports required by paragraphs 5.01 and 5.02, the Council will distribute to the Lendee the final payment of the remainder of the Total Loan Amount, referred to in this agreement as the"Later Principal." No payment will be made which would cause the Total Loan Amount to exceed fifty(50%) of • projected total project costs. No payment will be made if the Lendee is not current in its reporting requirements under article V. Distribution of any funds or approval of any report is not to be construed as a Council waiver of any Lendee noncompliance with this agreement. 3.04 Loan Repayment. a. Repayment Terms. The Total Loan Amount (or such lesser amount as is actually loaned)will be repaid by Lendee in five equal annual installments, together with accrued interest at the rate of fiveen rcent per annum, in accordance with the schedule described in section 3.04(b). For loan amounts distributed prior to the Project Completion Date(as defined in section 6.01), interest will accrue from and after the Project Completion Date. For loan amounts distributed after the Project Completion Date, interest will accrue from and after the actual date the loan amount is distributed to Lendee. The principal portion of each installment payment will be considered a repayment of Initial Principal and Later Principal(as defined in section 3.03) in the proportion each amount bears to the Total Loan Amount. b. Loan Repayment Schedule. Attached as Exhibit C is Lendee's Preliminary Loan Repayment Schedule setting forth the schedule of loan repayments, along with accrued interest. This schedule assumes: 1)that the Initial Principal and Later Principal under section 3.03 will be equal;2)that the Project Completion Date will be the same as the end of the Project Activity Period; and 3)that the second loan payment under section 3.03(b)will be made two months after • the end of the Project Activity Period. • 5 loan funds and the Lendee's Match required by this agreement, including all project documents, financial records, supporting documentation, and the property records required by paragraph 7.10. These project accounts and records will be retained intact by the Lendee for at least three (3)years following the full repayment of the loan. These requirements will survive closeout of the loan agreement. 4.03 Audit. The Lendee agrees to keep and maintain books, records, documents, and other evidence pertinent to its performance under this agreement in accordance with generally accepted accounting principles and practices, consistently applied. Such books, records, documents and other evidence will be maintained until the latest of: 1. Complete performance of this agreement; or 2. Three(3)years following the full repayment of the loan; or 3. If any litigation, claim, or audit is commenced during said three(3)year period, when all such litigation, claims or audits have been resolved. During the time of such maintenance, authorized representatives of the Council(and the Legislative Auditor and/or State Auditor in accordance with Minn. Stat. §16B.06, subd. 4)will have access to all such books, records, documents, accounting practices and procedures, and other evidence for the purpose of inspection, audit, and copying during normal business hours. • The Lendee will provide proper facilities for such access and inspection. These requirements will survive closeout of the loan agreement. V. REPORTING AND MONITORING REQUIREMENTS 5.01 Final Activity and Expenditures Report. Not later than two (2)months after the Project Completion Date or the end of the Project Activity Period (whichever is earlier),the Lendee must submit a final report for Council review and approval describing the activities and expenditures for the Loan Project and containing a final accounting of loan and matching expenditures. The final report must include a list of project personal property as required by paragraph 7.10. 5.02 Final Project Summary Report. Upon completion of the Loan Project and not later than two (2)months after the end of the Project Activity Period, the Lendee must submit three(3)complete copies of a"Final Project Summary Report"for Council review and approval. The Summary Report will contain at a minimum the following information obtained during and as a result of the Loan Project: a. An overall summary of the completed Loan Project work scope and activities. b. An overall summary of the location of the Loan Project, a description of the sources of • UI removed from the system, an estimate of UI reduced or removed as a result of the project, a list of potential follow-up project(s) in other areas to reduce or eliminate UI 6.03 Loan Forgiveness Provisions. The Council will review the Certification(and other documentation as required by Section 6.02), submitted by Lendee prior to each Annual Installment Date, to determine its adequacy. The Council may request, and the Lendee will provide, additional information or documentation in order to carry out such review. a. Positive Determination. If, in the Council's sole discretion, it determines that the Loan Project continues to be successful,that is, that the inflow and infiltration removed pursuant to the Loan Project have not returned to the system in significant quantities during the twelve month period prior to the said Certification, then the Council may forgive the Lendee's loan installment principal payment, along with accrued interest on the forgiven principal, for that Annual Installment Date. The Council will promptly notify Lendee if it qualifies for such loan forgiveness. b. Negative Determination. If, in the Council's sole discretion, it determines that the Loan Project does not continue to be successful, that is, that the inflow and infiltration removed pursuant to the Loan Project have returned to the system in significant quantities during the twelve month period prior to the said Certification, then the Council will notify the Lendee that the installment payment, along with accrued interest, for that Annual Installment Date will not be forgiven and is due and owing in accordance with the schedule set forth in section 3.04. In such • case,Lendee will have the following options: 1. Lendee may make a request, in writing,to the Council for an extension period of up to three months from the Annual Installment Date, for payment of the installment payment, for the purpose of carrying out additional work at its own expense in order to satisfy the Council's requirements. If at the end of such extension period the Council determines that such work does satisfy its requirements, it will notify the Lendee of that fact and that the installment principal payment, along with any accrued interest on the forgiven principal, for said Annual Installment Date is forgiven. If at the end of such extension period the Council determines that such work does not satisfy its requirements, it will notify the Lendee of that fact and the installment principal payment, along with accrued interest (including interest for the extension period), for the said Annual Installment Date will become due and owing upon receipt of said notice. 2. Alternatively,Lendee may determine that it does not desire to pursue additional work because such work would not be productive or otherwise not in Lendee's interest. In such case, Lendee will make the installment payment, along with accrued interest, on the said Annual Installment Date, and will thereafter repay the Loan in accordance with the schedule set forth in Section 3.04. If a Loan Project fails to obtain loan forgiveness for any period in accordance with this section, all • future installment payments will be made in accordance with Section 3.04 and Lendee will not be eligible for any future loan forgiveness. 1 ! • 9 7.08 Compliance with Law. The Lendee agrees to conduct the Loan Project in compliance with all applicable provisions of federal, state, and local laws. 7.09 Permits and Approvals. The Lendee is responsible for obtaining all local and state permits, licenses, and authorizations necessary for the Loan Project. 7.10 Personal Property Management. Title to all personal property acquired with loan or matching funds will remain with the Lendee during the Project Activity Period. Accordingly, the Lendee will take reasonable measures to protect and defend its title interest and will keep the personal property free and clear of any liens, encumbrances, or other claims. The Lendee must maintain property records that include, at a minimum, a description of the property, a serial or other identification number, the acquisition date and cost, and the location, use, and condition of the property. In the final report required by paragraph 5.01, the Lendee will include a list of all personal property acquired with loan and matching funds which was not expended in performance of the Loan Project. At the end of the Project Activity Period, the Lendee agrees to transfer title to all personal property acquired in whole or in part with loan funds and not expended in the course of the Loan Project to the Council, at the Council's option and at no charge. The Council reserves the right to direct appropriate disposition of all personal property, acquired in whole or in part with loan funds, which has not been expended in performance of the Loan Project. • During the Project Activity Period, the Lendee bears the risk of loss of damage to, or destruction of any personal property acquired with loan or matching funds. No such loss, damage, or destruction will relieve the Lendee of its obligations under this agreement. The Lendee agrees to maintain personal property acquired with loan or matching funds in good operating order. If, during the Project Activity Period, any project personal property is not used in performing the project, whether by planned withdrawal, misuse, or casualty loss, the Lendee will immediately notify the Council's Loan Manager. Unless otherwise approved by the Council's Loan Manager, the Lendee will remit to the Council a proportional amount of the fair market value of the item(s), if any, determined on the basis of the proportion of Council loan funds used to acquire the item(s). 7.11 Effect of Project Closeout. The Lendee agrees that project closeout does not invalidate continuing obligations imposed on the Lendee by this agreement. Project closeout does not alter the Council's authority to disallow costs and recover funds on the basis of a later audit or other review, and does not alter the Lendee's obligation to return any funds due to the Council as a result of later refunds, corrections, or other transactions. • • EXHIBIT A - PROJECT ACTIVITIES & SCOPE CITY OF ST.ANTHONY The project activities and scope proposed by the city of St. Anthony includes the inspection for, and the ordinance enforcement of, illegal sump pump connections within the City. The sump pump inspection project is to encompass the entire City and entail the inspection of every residential home connected to the sanitary sewer system. Activities within the project scope include: 1. Design and preparation of public information documents, including a short video presentation. 2. Implement public information and education campaigns notifying residents of sump pump inspections and the need to enforce existing sump pump disconnection ordinance. Campaign to include direct mailings, and local news articles. 3. Conduct visual inspections in every residential home connected to sanitary sewer system. There are an estimated 2,300 homes connected to the sanitary system each requiring an inspection. Where sump pumps are found to be connected to the sanitary sewer, require that they are disconnected. • 4. Conduct visual re-inspections in those buildings initially found to have a sump pump illegally connected to the sanitary sewer. 5. Upon completion of all inspections, and review of inspection reports, a summary report will be prepared. Summary report to include overall summary of completed project, description and location of I/I sources removed, and acknowledgment of certification requirement including method, schedule with dates and locations. Report shall also include complete list of addresses where sump pumps were found to be connected to the system during the initial inspection. Project activities will be conducted using a combination of City staff personnel, contracted service vendors and consultant services. • • EXHIBIT B - PROJECT BUDGET CITY OF ST.ANTHONY Total project as outlined in the City's project program activities has been estimated at $104,950. Of this amount the City proposes to finance approximately 62% or$64,950 using City funds, and finance the remaining 38%using the$40,000 loan. Total project cost estimate is based on 2,300 home inspections. An itemized breakdown of the project costs have been summarized in a letter from the City's Consultant, WSB & Associates, Inc., dated April 15, 1998 and is attached an hereby part of Exhibit B. (See attached summarized study cost letter) • • ® BA Mittelstcadt,P.E. 350 Westwood Lake Office Bret a Weiss,P.E. ��� Peter R.Wi .Stern P.E.8441 Wayzata Boulevard g• Minneapolis, MN 55426 Donald W.sterna,P.E. • Ronald B.Bray,P.E. 612-541-4500 &Associates,Inc. FAX 541-1700 April 15, 1998 Mr. Kyle Colvin P.E. MCES 230 East Fifth Street St. Paul,MN 55101-1633 RE: MCES Matching Loan for I/I Control Studies City of St. Anthony WSB Proj.No. 1065.13 Dear Mr. Colvin: We are submitting this letter on behalf of the City of St. Anthony to provide the itemized breakdown of costs requested in your"Notification of Loan Offer" dated April 6,1998. • The budget for the proposed project is as follows: Task '' Description Est.Consultant Cost Est.City Staff Cost • is i i' 1 -Project Coordination and Management $1,200 $1,000 2 Design&Preparation of Public information Documents $2,500 $6,500 3 Public Information Meetings $1,200 $ 500 4 Physical Inspection of basem.-nts-approximately 2,300 $78,450 $10,000 buildings 5 Preparation of Interim and Final Reports $1,600 - - 6- Follow-up inspection of"difficult"buildings - - Hourly $2,000 Sub-Total $84,950 $20,000 Grund Total $104,950 If you have any questions or need additional information,please let me know. Sincerely, ' WSB&Associates,Inc. Charles R ki,P.E. Project Engineer • c: -• Mi,Mike Mornson,City of St Anthony Mr.Pete Willenbring, WSB&Associates,Inc. lv -- Infrastructure Engineers -Planners = EQUAL OPPORTUNr Y EMPLOYER F:%WPW0A106s.131041S".kc doc • Exhibit C -Preliminary L•Rea ent Schedule P Ym Metropolitan Council Environmental Services Inflow/Infiltration Control LOAN PROGRAM Total Loan Amount $40,000 Project Completion Date 12/31/99 Interest Rate 5% Accrual Outstanding "Initial Principal" Schedule: Date Effective Disburse Payments Principal Interest Balance Disbursement 7/1/98 12/31/99 $ 20,000.00 20,000.00 1st Annual Installment 12/31/00 4,619.50 3,619.50 1,000.00 16,380.50 2nd Annual Installment 12/31/01 4,619.50 3,800.47 819.03 12,580.03 3rd Annual Installment 12/31/02 4,619.50 3,990.50 629.00 8,589.53 4th Annual Installment 12/31/03 4,619.50 4,190.02 429.48 4,399.51 5th Annual Installment 12/31/04 4,619.49 4,399.51 219.98 - Accrual Outstanding "Later Principal" Schedule Date Effective Disburse Payments Principal Interest Balance Disbursement 3/2/00 3/2/00 $ 20,000.00 - 20,000.00 1st Annual Installment 12/31/00 4,582.84 3,752.28 830.56 16,247.72 2nd Annual Installment 12/31/01 4,582.84 3,770.45 812.39 12,477.27 3rd Annual Installment 12/31/02 4,582.84 3,958.98 623.86 8,518.29 4th Annual Installment 12/31/03 4,582.84 4,156.93 425.91 4,361.36 5th Annual Installment 12/31/04 4,579.43 4,361.36 218.07 - Total Expected Annual Payment > 9,202.34 NOTE:Calculations based on 30-day month convention. Prepared by MCES 3/22/98 12:53 PM EXffiBIT C-W 140,000" • EXHIBIT D -- CERTIFICATION REQUIREMENTS CLEAR WATER DISCONNECTION'S The first, second and fourth year certification shall be based on findings resulting from an inspection of at least 20% of all non-compliance connections identified during the initial inspections. On the third anniversary date, along with said certification, Lendee shall also provide the Council with physical documentation in the form of visual inspection records supporting the certification of 20% of all non-compliance connections identified during the initial inspections, and those connections that were found during the first and second year certifications to be reconnected to the system after the original disconnection. On the fifth anniversary date along with said certification, Lendee shall also provide the Council with physical documentation in the form of visual inspection records supporting the certification of 20%of all non-compliance connections identified during the initial inspections, those connections that were found during the third and fourth year certifications to be reconnected to the system after the original disconnection, and an additional number of re-inspections to be chosen by the Council. The additional properties that the Council selects to be re-inspected will be • from those identified in the "Final Project Summary Report," according to paragraph 5.02, as being non-compliant prior to the project. The total number of additional inspections as chosen by the Council shall not exceed 10%of the total number of non-compliance connections as discovered during the original inspection. Each years certification inspections shall represent different connections from those inspected during other years so that at the end of the five year certification period every non-compliance connection shall be inspected at least once. Thirty days prior to the community performing the certification inspections during the third and fifth year,the Lendee will notify the Council in writing so that a representative from the Council has the opportunity to be present during the inspections. All properties to be inspected for certification shall be identified prior to the inspections and a list of said properties along with a map showing their locations shall be sent to the General Manager of Wastewater Services Department for review and comment. Certification inspections shall be performed during periods when UI sources would typically be discharged into the system. The inspections shall consist of visual observations of the sump pump discharge points located outside the building limits. In the absence of evidence that shows sump discharges outside the building, a visual inspection of the sump pump plumbing inside the building will be required. In the event that any property is found to be reconnected to the sanitary system during the certification inspections, that property shall be disconnected from the system.