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98-594ORIGINAL Presented by: Referred to: Committee c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 WHEREAS, the Metropolitan Council Environmental Services has offered Saint Paul a grant of $10,000 to fund a study to identify sources of inflow and infiltration (I&� of clean water into the Metropolitan Disposal System; and WHEI2EAS, Saint Paul is required under its NPDES pernut to conduct such studies to identify sources of I &I; and WHEREAS, the Metropolitan Council Environmental Services has offered Saint Paul a loan of $40,000 to fund a project that reduces this I&I; and WHEREAS, in 1998, as part of the Ohio / Plato Relining Project, Public Works will be repairing an old sanitary sewer that has excessive I&I; and WIIEREAS, if a funded project eliminates I&I in that sanitary sewer for a period of five years, the loan is forgiven. Therefore, be it RESOLVED, by the City of Saint Paul that Stacy Becker, Public Works Director, or her designee be authorized to execute the grant and loan agreements. Requested by Department of: Public Works By: ! / � Form Approved by City Attorney Adoption Certified by Council Secretary By: a- , r�7 � � Approved by M o: D Byc Council File ��0 =� � Green Sheet TM 62530 RESOLUTION CITY OF SAINT PAUL MINNESOTA 20 B ✓�Q��''^ �� — by Mayor ion to Council Adopted by Council: Date � � � s}V a i _ G.a u DEPARTMENTlOFfICE/COUNCIL DATEINITIATED GREEN SHEET NO. U22�O , � Public Works June 8, 1998 CONTACTPERSON&PHONE INITI L/ ATE INIT7AVDATE Mlke K'd$53I1 266-6249 EPARTMENTDIRECTOR �CITVCOUNQL ASSIGN �y CITY ATTORNEY 'Al+� G. 7• ❑ qTY CIERK NUMBERFOR MUSTBEONCOUNCILAGENDABV(DAiE) ROVfING OgUDGETDIRECTOR �FlN.&MGT.SERVICESDIR. OFiDER � MAYDR (OR ASSIST� � IY TOTAL S OF SIGNANRE PAGES � (CL1P ALL LOCAiIONS FOR SIGNANF� � ASSOCIATE Co D � DEPT. ACCOUM1TANT ACTION REQUESTED Approve the attached resolution authorizuig the Director of Public Works to execute agreements accepting a $1Q000 grant (see E�ibit A) and a$40,000 loan (see E�ibit B) from the Metropolitan Council to fund inflow and infiltration projects. RECAMMENDATIONS: Approve (A) or Rejec[ (R) PERSONAL SERVICE COMRACTS MUST ANSWER THE FOLLOWIN6 QUESl70NS: PLANNING COMMISSION CML $EiiVICE COMMISSION �- Has Mis personfiiim ever worketl under a coMmci for this department? — — YES NO ae CoMMI77Ee 2. Has this persoNfirtn ever been a city employee? — — YES NO � STAFF 3. Does this perso�rm possess a sltill not normally possessetl by any curtent city — employee? DISTRICTCOUNCIL _ YES NO SUPPORTS WHICH COUNCILO&)ECTIVE? Expiain all yes answers on separate sheet and attach to green sheet INITIATING PROBLEM, ISSUE, OPPORTUNITY (WHO. WHAT, WHEN, WHERE, NhiV): The Metropolitan Council has offered Saint Paul a grant of $10,000 to identify sources of inflow and inf'�ltration (I&I) of clean water into our sanitary sewer system. They have also offered Saint Paul a loan of $40,000 for a project that will eliminate I&I. This loan will be forgiven if the project successfully eliminates I&I for five yeazs. ADVANTAGESIFAPPROVED These projects aze already budgeted for this year. If we receive a grant or loan, it will reduce the cost to Saint Paul rate payers. �� DISADVANTAGES IF APPROVED: none � p � (n �MPV�S VC�IL� ��CzB�� V �y ° ! �� a� .`'c. �,�F, u, `�=�, y, l �� '��-::�" 6 DISADVANTAGES IF NOT APPROVED: Public Works will not be able to take advantage of essentially "free" money to finance projects already progratmned. �9UfiC!{ �@S@8fC�1 �',2(1$6� ,l�Pd 1 � i998 TOTALAMOUNTOFTRANSACTION§ Sb�OD0,00 COST/REVENUEBUDGETED(CIRCLEONE) YES No FUNDING SOURCE ACRVITY NUMBER FlNANCIAL INFORMAiION: (EXPLAIN) � qsr-sq`t E,ch � b �-� �� _1_ Contract No. C-3356 INFI,pW/INFILTRATION CONTROL PROGRAM GRANT AGREEMENT BETWEEN'I`HE METROPOLTTAN COUNCII� AND CITY OF SAINT PAUL THIS AGREEMENT is entered into by and between the Metropolitan Council (the "Council") and the City of Saint Paui (the "Grantee"), 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 ("UP') 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 grants to communities serviced by the Metropolitan Disposal System in order to fund studies aimed at identifying, locating, quantifying and developing action plans for the elimination of excessive community inflow and infiltration into the local sewer systems; and WHEREAS, it is in the best interests of the Grantee to reduce inflow and infikration into its local sewer system in order to increase capacity, reduce costs, and delay the necessity to undertake capital improvements; and WHEREAS, the Grantee is eligible to receive an InflowlInfiltration Control Program Grant and has submitted an application for a such a grant; and WHEREAS, the Council has reviewed the application and desues to assist the Grantee by the award of an Inflow/Infiltration Control Program Grant• NOW, THEREFORE, the Council and the Crrantee agree as follows: L GRAN'I'EE PERFORMANCE OF GRANT STUDY 1.01 Grant Study Activities. The Grantee agrees to perform and complete in a satisfactory and proper manner the study as described in the Grantee's application for gant assistance ("Grant Stud}�'), incorporated in this agreement by reference, and in accordance with the terms and conditions of this agreement. Specifically, the Grantee agrees to perform the study activities described in E�chibit A, which is attached to and incorporated in this agreement. After the Work Plan described in paragraph 5.01 has been approved by the Council, the Grantee agrees to conduct the Grant Study activities in compliance with the approved Work Plan. The Grantee may engage contrac�ors to perform the Grant Study with prior approval of the Council. However, the Grantee retains primary responsibility to the Council for performance of the Crrant Study. -2- 1.02 Material Representations. The Grantee agrees that all representations contained in its application for grant assistance aze material representations offact upon which the Council relied in awarding this grant and are incorporated in tlus agreement by reference. 1.03 Grantee Certification. Grantee certifies that the grant funds to be distributed pursuant to this agreement will be appiied to the purposes stated in this agreement. 1.04 Governing Body Resolution. Grantee will provide the Council with a copy of a resolution by its governing body which authorizes The GranYee to enter into this agreement. II. AUTHORIZED USE OF GRANT PROCEEDS AND MATCHIIVG P'UNDS 2.01 Authorized Uses. The Grantee is authorized to use the grant funds only in payment of the line item costs specified in Exhibit B, which is attached to and incorporated in this agreement. No other use of grant funds is permitted. Grant and matching funds may be used only for costs directly associated with Grant Study activities. Grant and matching funds may be used to prepare the Work Plan required by pazagraph 5.01 of this grant agreement. 2.02 Unauthorized Uses of Grant Proceeds. Grant funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or pemut, license, or other authorization fees, unless specifically approved in advance by the Council's authorized agent. 2.03 Reversion of Uneapended Funds. All funds granted by the Councit under this agreement that have not been expended for grant activities taking place during the Grant Study Activiry Period shalI revert to the Council. 2.04 Grant Study Equipment and Supplies. Grant and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property directly necessary to conduct the Grant Study. The Grantee will comply with the personal property management requirements described in paragraph 7.10 of this agreement. III. GRANT AMOUNT AND DISTRIBUTION 3.01 Totai Grant Amount The Council shall pay fo the Grantee a total grant amount of $10,000. Provided, however, that in no event will the Council's obligation under this agreement exceed the lesser of: a. the Total Grant Amount of $10,000; or, b. fifty percent (50°/a) of total Grant Study eacpenditures. The Council shall bear no responsibility for cost overruns which may be incuned by the Grantee in performance of the Grant Study. �$-sq� -2- 1.02 Material Representations. The Grantee agrees that all representations contained in its application for gant assistance are material representations of fact upon which the Council relied in awarding tkus grant and aze incorporated in this ageement by reference. 1.03 Grantee Certification. Grantee certifies that the grant funds to be distributed pursuant to this agreement will be applied to the purposes stated in this agreement. 1.04 Governing Body Resolution. Grantee will provide the Council with a copy of a resolution by its governing body which authorizes the Grantee to enter into this agreement. IL AUTHORIZED USE OF GRANT PROCEEDS AND MATCHING FUNDS 2.01 Authorized Uses. The Grantee is authorized to use the grant funds only in payment of the line item costs specified in E�ibit B, which is attached to and incorporated in this ageement. No other use of grant funds is permitted. Grant and matching funds may be used only for costs directly associated with Grant Study activities. Grant and matching funds may be used to prepare the Work Plan requ'ued by paragraph 5.01 of this grant agreement. 2.02 Unauthorized Uses of Grant Proceeds. Grant funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or pemvt, license, or other authorization fees, unless specifically approved in advance by the Council's suthorized agent. 2.03 Reversiop of Unezpended Funds. All funds granted by the Council under this agreement that have not been expended for grant activities taldng place during the Grant Study Activity Period shall revert to the Council. 2.04 Grant Study Equipment and Suppties. Grant and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property d'uectly necessary to conduct the Grant Study. The Grantee will comply with the personal property management requirements described in paragraph 7.10 of this agreement. IIL GRANT AMOUNT AND DISTRIBUTION 3.01 Tota! Grant Amoun� The Council shall pay to the Crrantee a total grant amount of $10,000. Provided, however, that in no event will the Council's obligation under ttus agreement exceed the lesser of: a. the Total Grant Amount of $10,000; or, b. fifty percent (50%) of total Grant Study expenditures. The Council shall bear no responsibility for cost overruns which may be incurred by the Grantee in performance of the Grant Study. �� -59`� -3- 3.02 Grantee's Match. The Grantee has an obligation under this grant agreement to share in the costs of the Grant Study by providing at least a fifty percent (50%) cash or in-kind match. Accordingly, the Grantee agrees to provide $10,000 in matching funds during the Grant Study Activity Period, in accordance with the Council's Guidelines and Application Materials dated December 1997 and incorporated in this agreement by reference. The Grantee 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 Totat Grant Amount. 3.03 Distribution of Grant Funds. Grant funds will be distributed by the Council according to the following schedule: a. � Upon commencement of the study funded by this grant, the Council will distribute to the Grantee fifty percent (50%) of the Total Crrant Amount. Upon approval of the final reports required by paragraphs 5.04 and 5.05, the Council will distribute to the Grantee the final payment of the remainder of the Total Grant Amount. No payment will be made which would cause the Total Grant Amount to exceed fifty (50%) of projected total Grant Study costs. No payment will be made if the Grantee 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 Grantee noncompliance with this agreement. IV. ACCOUNTING AND RECORD REQUIItEMENTS 4.01 Documentation of Grant Study Costs and Income. All costs charged to the Grant Study, whether paid with grant proceeds or charged as the Grantee's match, must be supported by proper documentation, including properly executed payrolls, time records, invoices, contracts, or vouchers, evidencing in detail the nature and propriety of the charges. 4.02 Accounts and Records. The Grantee agrees to establish and maintain accurate, detailed, and complete separate accounts and records relating to the receipt and expenditure of all grant funds and the Grantee's Match required by this agreement, including all Grant Study documents, financial records, supporting documentation, and the property records required by paragraph 7.10. These Grant Study accounts and records shall be retained intact by the Grantee for at least three (3) years following the end of the Grant Period set forth in section 6.02. These requirements shall survive closeout of the grant agreement. 4.03 Audit The Grantee 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 Grant Period; 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. -a- During the time of such maintenance, authorized representatives of the Council will have access to all such books, records, documents and evidence for the purpose of inspection, audit, and copying during normal business hours. The Grantee will provide proper facilities for such access and inspection. These requirements shall survive closeout ofthe grant agreement. V. REPORTING AND MONTTORING REQUIIZEMENTS 5.01 Work Plan. The Grantee shall prepare and submit a detailed work plan for Council approval within forty-five (45) days of execution of this grant agreement. The Work Plan shall be in the format specified by the Council and shall contain the level and types of information required by the Council. The Work Plan shall include the tasks to be undertaken together with schedules and costs, the sources and amount of the match to the grant, a detailed budget, and the individuals responsible for the tasks. 5.02 Summarp and Comparison Status ReporG Upon expenditure o£&fty percent (50%) of the projected totat eligible Grant Study costs, the Grantee must submit to the Council for review and approval a detailed summary of Grant Study expenditures and completed work activities, including a comparison of actual activities and expenditures against planned activities and projected expenditures. 5.03 Semi-annual Status Reports. For Grant Studies with an activity period over one (1) year, the Grantee must submit to the Council semi-annual reports on Grant Study activities and eacpenditures. The semi-annual reports must be in a format prescribed by the Council and aze due within thirty (30) days after the end of each siY-month period of the Grant Study activity period. Por studies with an activity period not exceeding one (1) year, the report required by paragraph 5.02 shall be deemed the semi-annual report. 5.04 Final Activity and Eapenditure Report. Upon completion of the Grant Study and not later than two (2) months after the end of the Crrant Activity Period, the Grantee must submit a final report for Council review and approval describing the activities and expenditures for the Grant Study and containing a final accounting of grant and matching eapenditures. The final report must include a list of Grant Study personal properry as required by pazagraph 7.10. 5.05 FiQa1 Findiugs Report. Upon complerion of the Grant Study and not later than two (2) months after the end of the Grant Activity Period, the Grantee must submit three (3) complete copies of a"Final Findings Report" for Council review and approval. The Findings Report shall contain at a nunimum the following information obtained during and as a result of the Grant Study: a. An overall summary of the investigative Grant Study swpe and activities. b. An overall summary of the investigation including an estimate of UI discovered within the study area, location(s) of UI sources within the study area and suspected areas outside the study area(s), a list of potential follow-up project(s) to reduce or eliminate UI sources, the cost of potential project(s), and a cost-benefit analysis of doing the potential project(s) listed. �1$'S9� ` �_ During the time of such maintenance, authorized representatives of the Council will have access to all such books, records, documents and evidence for the purpose of inspection, audit, and copying during normal business hours. The Grantee will provide proper facilities for such access and inspection. T'hese requirements shall survive closeout of the grant agreement. V. REPORTING AND MONTTORING REQUIREMENTS 5.01 Work Plan. The Grantee shall prepare and submit a detailed work plan for CouncIl approval within forty-five (45) days of execution of this grant agreement. The Work Plan shall be in the format specified by the Council and shall contain the level and types of information required by the Council. The Work Plan shall include the tasks to be undertaken together with schedules and costs, the sources and amount of the match to the grant, a detailed budget, and the individuals responsible for the tasks. 5.02 Summary and Comparison Status Report. Upon expenditure of fifty percent (50%) ofthe projected total eligi'ble Grant Study costs, the Grantee must submit to the Council for review and approval a detailed summary of Grant Study expenditures and completed work activities, including a comparison of actual activities and expenditures against planned activities and projected expenditures. 5.03 Semi-annuai Status Reports. For Grant Studies with an activity period over one (I) year, the Grantee must submit to the Council semi-annual reports on Grant Study activities and expenditures. The semi-annual reports must be in a format prescribed by the Council and aze due within thirty (30) days after the end of each six-month period of the Grant Study activity period. For studies with an activity period not exceeding one (1) yeaz, the report required by paragraph 5.02 shall be deemed the semi-annual report. 5.04 Final Activity and Eapenditure Report. Upon completion ofthe Grant Study and not later than two (2) months after the end of the Crrant Activity period, the Crrantee must submit a final report for Council review and approval describing the activities and expenditures for the Grant Study and containing a final accounting of grant and matching expenditures. The final report must include a list of Grant Study personal property as required by paragraph 7.10. 5.05 Final Findings Report. Upon completion of the Grant Study and not later than two (2) months after the end of the Grant Activity Period, the Grantee must submit three (3) complete copies of a"Final Findings Report" for Council review and approval. The Findings Report shall contain at a minimum the following information obtained during and as a result of the Grant Study: a. An overall summary of the investigative Grant Study scope and activities. b. An overall summary of the investigation inciuding an estimate of UI discovered within the study area, location(s) oFUI sources within the study area and suspected areas outside the study area(s), a_list ofpotential follow-up project(s) to reduce or eliminate UI sources, the cost of potential project(s), and a cost-benefit analysis of doing the potentiai project(s) listed. ° t � `1 -s- c. A schedule for doing follow-up project(s) within the study area aimed at reducing or eliminating sources of I/I and an indication of whether outside funding sources would be required by the Grantee in order to finance the project(s). 5.06 Content of Reports. The Grantee agrees to report completely and to provide the Council with any additional or follow-up information as may be requested by Council staff. 5.07 Other Monitoring Activities. To assist the Council in monitoring compliance with the grant agreement, the Grantee agrees to attend Grantee meetings as requested by Council staff and to pemut site visits by Council staff, during business hours, upon reasonable notice. The Grantee agrees to submit to the Council a copy of any promotional information regarding the Grant Study disseminated by the Grantee during the Grant Period. 5.08 Changed Conditions. The Grantee agrees to notify the Council immediately of any change in conditions, local law, or any other event that may affect the Grantee's ability to perform the Crrant Study in accordance with the terms of this agreement. VI. TINIII`IG REQUIItEMENTS 6.01 Grant Study Activity Period. The Grant Study Activity Period shall consist of the time period from March 1, 1998 or from the date this grant was awarded by the Council) until August 31, 1999 that date which is eighteen months after the date when this agreement is executed by both parties. The Crrantee agrees to complete the Grant Study activities descrihed in E�ibit A during the Study Activity Period. The Council will not provide grant funds to the Grantee for any Grant Study activities taking place before or after the end of the Study Activity Period. 6.02 Grant Period. The Grant Period shall extend from the date of final execution of this agreement to a date three (3) months following the end of the Study Activity Period, to pernut closeout of the grant agreement. VII, GENERAL CONDTTIONS 7.01 Amendments. The tenns of this agreement may be changed by mutual agreement of the parties. Such changes shall be effective only upon the execution of written amendments signed by authorized representatives of the Council and the Grantee. 7.02 Noncompiiance by Grantee. If the Council finds that there has been a failure to comply with the provisions of this agreement, the Council may terminate the agreement at any time following seven (7) days' written notice to the Grantee and upon failure of the Grantee to cure the default wit`hin the seven-day period. If the Council finds that the Crrantee's noncompliance is willful acid unreasonable, the Council may terminate or rescind this agreement and require the Grantee to repay the grant funds in full or in a portion detemuned by the Council. Nothing herein shall be construed so as to limit the Council's legal remedies to recover grant funds. � 7.03 Unauthorized Use of Grant Proceeds. Upon a finding by Council staffthat the Grantee has made an unauthorized or undocumented use ofgrant proceeds, and upon a demand for repayment issued by the Council, the Grantee agrees to promptly repay such amounts to the Council, 7.04 Indemnification. The Grantee assumes liability for, and agrees to indemnify, protect and hold harmless the Council, its members, officers, employees, and agents, &om any liabilities, obligations, losses, damages, claims, injuries, penalties, costs and e�cpenses, including reasonable attomey's fees, arising out of the performance of the Grant Study by Grantee or Grantee's empioyees, agents, or subcontractors. 7.05 Public Data. The Grantee agrees that the results of the Grant Study, the reports submitted, and any new information or technology that is developed with the assistance of tlus grant is in the public domain and may not be copyrighted or patented. 7.06 Equal Employment Opportunity; Affirmative Action. The Grantee agrees to comply with all applicable laws relating to nondiscrimination and affirmative action. In particular, the Grantee agrees not to discriminate against any employee, applicant for employment, or participant in this Grant Study because of race, color, creed, religioq sex, sexual orientation, marital status, status with regazd to public assistance, membership or activiry in a local civil rights coaunissioq disability, age, or national origin, and further agrees to take af�irmafive action so that applicants and employees are treated equally with respect to all aspects of employment and compensation. 7.07 Acknowledgment The Grantee shall appropriaiely acknowledge the grant assistance made by the Council in any promotional materials, reports, and publications relating to the Grant Study. 7.08 Compliance with Law. The Grantee agrees to conduct the Grant Study in compliance with all applicable provisions of Federal, state, and local laws. 7.09 Permits and ApprovaLs. The Grantee is responsible for obtaining all local and state permits, licenses, and authorizations necessary for the Crrant Study. 7.10 Personal Property Managemen� Title to all personal property acquired with grant or matching funds sha11 remain with the Grantee during the Grant Period. Accordingly, the Grantee shall take reasonable measures to protect and defend its tifle interest and shall keep the personal properry free and clear of any liens, encumbrances, or other claims. The Grantee must maintain property records that include, at a minimum, a description of the property, a serial or other identification number, tfie acquisirion date and cost, and the location, use, and condition of the property. In ttte finat report required by paragraph 5.04, the Grantee shall include a list of all personal property acquired with grant and matching funds which was not expended in performance of the`Crrant Study. At the end of the Grant Period, the Grantee agrees to transfer title to all personal property acquired in whole or in part with grant funds to the Council, at the Council's option, at no charge. The Council reserves the right to direct appropriate disposition of all personal properLy, acquired in whole or in part with grant funds, wluch has not been expended in performance of the Grant Study. 1$-�9� .�_ 7.03 Unauthorized Use of Grant Proceeds. Upon a Snding by Council staffthat the Grantee has made an unauthorized or undocumented use of grant proceeds, and upon a demand for repayment issued by the Council, the Grantee agrees to promptly repay such amounts to the Council. 7.04 Indemnification. The Grantee assumes liability for, and agrees to indemnify, protect and hold harmless the Council, its members, officers, employees, and agents, &om any liabilities, obligations, losses, damages, claims, injuries, penalties, costs and expenses, including reasonable attomey's fees, arising out of the perFonnance of the Grant Study by Cnantee or Crrantee's employees, agents, or subcontractors. 7.05 Public Data. The Grantee agrees that the results of the Crrant Study, the reports submitted, and any new information or technology that is developed with the assistance of this grant is in the public domain and may not be copyrighted or patented. 7.06 Equal Employment Opportunity; Aftirmative Action. The Grantee agrees to comply with all applicable laws relating to nondiscrimination and aflirmative action. In particular, the Grantee agrees not to discriminate against any employee, applicant for employment, or participant in this Grant Study because of race, color, creed, religioq se�c, sexual orientation, marital status, status with regard to public assistance, membership or activiry in a local civil rights commission, disability, age, or national origin, and further agees to take affirmative action so that applicants and employees are treated equally with respect to all aspects of employment and compensation. 7.07 Acknowledgmen� The Grantee shall appropriately acknowledge the grant assistance made by the Council in any promotional materials, reports, and publications relating to the Grant Study. 7.08 Compliance with Law. The Grantee agrees to conduct the Grant Study in compliance with all applicable provisions of Federal, state, and local laws. 7.09 Permits and Approvals. The Grantee is responsible for obtaining all local and state pemuts, licenses, and authorizations necessary for the Crrant Study. 7.10 Personat Property Management Title to all personal property acquired with grant or matching funds shall remain with the Grantee during the Grant Period. Accordingly, the Grantee shall take reasonable measures to protect and defend its title interest and shall keep the personal property free and clear of any liens, encumbrances, or other claims. The Grantee 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 5.04, the Grantee shall include a list of all personal properry acquired with gant and matching funds wtuch was not expended in performance of the Grant Study. At the end of the Grant Period, the Grantee agrees to uansfer title to ail personal property acquired in whole or in part with grant funds to the Council, at the Council's option, at no chazge. The Council reserves the right to direct appropriate disposition of all personal property, acquired in whole or in part with grant funds, which has not been expended in performance of the Grant Study. °l�-s�, y -�- During the Grant Period, the Grantee bears the risk of loss o� damage to, or destruction of any personal proQerty acquired with grant or matching funds. No such loss, damage, or destruction shall relieve the Grantee of its obligations under this agreement. The Grantee agrees to maintain personal properiy acquired with grant or matching funds in good operating order. If, during the Grant Study Activity Period, any Gc'ant Study personal property is not used in performing the Grant Study, whether by planned withdrawal, misuse, or casualty loss, the Grantee shall immediately notify the Council's authorized agent. Unless otherwise approved by the Council's authorized agent, the Grantee shall remit to the Council a proportional amount of the fair mazket value of the item(s), if any, determined on the basis of the proportion of Council grant funds used to acquire the item(s). 7.11 Effect of Grant Study Closeout. The Crrantee agrees that Grant Study closeout does not invalidate continuing obligations imposed on the Grantee by this agreement. Grant Study 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 Crrantee's obligation to return any funds due to the Council as a result of later refunds, corrections, or other transactions. - g- IN WITNESS WHF,$EOF, the parties have caused this agreement to be executed by their duly authorized represe��on the dates set forih below. GRANTEE• CITY OF SAINT PAUL Name: Its METROPOLTTAN COUNCII, Date: James 7. Solem, Regional Administrator Approved as to farm: Office of General Counsel AN 1_GRNI:WPp °t � -s� y EXHIBIT A- STUDY PROGRAM ACTIVITIES CTTY OF ST. PAUL The study program activities proposed by the city of St. Paul includes the installation of four temporary flow meters within portions of the City's sanitary sewer system which are tributary to sanitary sewer regulators. The City currently has 35 active regulators that have not been eliminated through the CSO program. The Study will utilize the temporary flow meters to identify and help locate sources of rain derived inflow. Once these sources can be identified, follow-up projects can be developed. Activities within the study area include: 1. Installation of up to four temporary flow meters within various sanitary sewer regulator service azeas within the City. 2. Collection of flow data at various sites for varying duration's. The intent of the temporary meters is to capture flow information during storm events and isolate sources of inflow. 3. �sual inspections of the sanitary sewer system to help identi£y the location of inflow into the system. The systematic flow monitoring of the regulator service azeas should provide focus areas in which City staff personnel can conduct in-field inspections to identify the specific source of the inflow. 4. Ugon completion of all data gathering and review of the information, a summary report will be prepared. Summary report is to include recommendations for prioritized UI sewer rehabilitation work. Study activities will be conducted using City Staff Personnel. q�-S�`1 EXHIBIT B - STUDY BUDGET CITY OF ST. PAUL Total study as outlined in the City's study program activities has been estimated to be $20,131. Of this amount the City proposes to finance 503% or $10,131 using City funds, and finance the remaining 49.7% using the $10,000 grant. An itemized breakdown of the study costs have been summarized in a table from the City, received with a letter dated Apri122, 1998 and is attached an hereby part of E�ibit B. (See attached summarized study cost table) "•� °l�"Sgy �,�h; 6 ��- .��,. ��-sq`t Contract No. C-3369 INgI,OW/�ILTRATION CONTROL PROGRAM LOAN AGREEMENT BETWEEN THE METROPOLTTAN COUNCII. AND CITY OF SAINT PAUL TffiS AGREEMENT is made and entered into by and between the Metropolitan Council (the "Council") and the city of Saint Paul (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 WHEREA5, the Lendee is eligible to receive an Intlow/Infiltration Control Program Loan and has submitted an application for a such a loan; and WHEREA5, 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 conuactors to perform the Loan Project. However, the Lendee retains primary responsibility to the Council for performance of the Loan Project. 1.02 Material Representations. The Lendee agrees that alI representations contained in its application for loan assistance aze material representations of fact upon which the Council relied in awarding this loan and are incorporated in this agreement by reference. 1.03 Leadee Certification. Lendee certifies that the loan funds to be distributed pursuant to this agreement will be applied to the purposes stated in this agreement and that the Loan Project is cost effective. 1.04 Governing Body Resolutiou. Lendee will provide the Council with a copy of a resolution by its goveming body which authorizes the Lendee to enter into this agreement. IL AUTHORiZED USE OF LOAN PROCEEDS AND MATCHING F[JNDS 2.01 Authorized Uses. The Lendee is authorized to use the loan funds only in payment ofthe line item costs specified in Eachibit B, which is attached to and incorporated in this agreement. No other use of loan funds is pemutted. Loan and matching funds may be used only for costs directly associated with Loan Project activities. 2.02 Unauthorized Uses of Loan Proceeds. Loan funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or permit, license, or other authorization fees, unless specifieally approved in advance by the Councii. 2.03 Reversion of Uneapended Funds. All funds loaned by the Council under ttus ageement that have not been expended for the Loan Project during We Project Acfivity Period (as defined in section 6.01) will be repaid to the Council. 2.04 Project Equipment and Supplies. Loan and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property directly necessary to conduct the Loan Project. The Lendee will comply with the personal property management requirements described in paragraph 7.10 of this agreement. IIL LOAN AMOUNT, DISTRIBUTION, AND REPAYMENT 3.01 Total Loan Amount The Council will pay to the Lendee a Total Loan Amount of $40,000. Provided, however, that in no event will the Council's obligation under this agreement exceed the lesser of: a. the Totai I.oan Amount of $40,000; or, b. fifty percent (50%) of total Loan Project expenditures. The Council will bear no responsibility for cost overruns which may be incurred by the Lendee in performance of the Loan Project. 18- S�� z 1.02 Material Representations. The Lendee agrees that all representations contained in its application for loan assistance are material representations of fact upon which the Council relied in awarding this loan and are incorporated in this agreement by reference. 1.03 Lendee Certification. Lendee certifies that the loan funds to be distributed pursuant to this agreement will be applied to the purposes stated in this agreement and that the Loan Project is cost effective. 1.04 Governing Body Resolution. Lendee will provide the Council with a copy of a resolution by its goveming body which authorizes the Lendee to enter into this agreement. II. AUTHORIZED USE OF LOAN PROCEEDS ANp MATCHING FUNDS 2.01 Authorized Uses. The Lendee is authorized to use the loan funds only in payment of the line item costs specified in Exhibit B, which is attached to and incorporated in this agreement. No other use of loan funds is pemutted. Loan and matching funds may be used only for costs direcdy associated with Loan Project activities. 2.02 Unauthorized Uses of Loan Proceeds. Loan funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or pernvt, license, or other authorization fees, unless specifically approved in advance by the Council. 2.03 Reversion of Uneapended Funds. All funds loaned by the Council under this agreement that have not been expended for the Loan Pro}ect during the Pro,}ect Activity Period (as defined in section 6.01) will be repaid to the CouncIl. 2.04 Project Equipment and Supplies. Loan and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property directly necessary to conduct the Loan Project. The Lendee will comply with the personal property management requirements described in paragaph 7.10 ofthis ageement. II[. LOAN AMOUNT, DISTRIBUTION, AND REpAYMENT 3.01 Total Loan Amoun� The Council will pay to the Lendee a Total Loan Amount of $40,000. Provided, however, that in no event will the Council's obligation under this agreement exceed the lesser of• a. the Total Loan Amount of $40,000; or, b. fifty percent (50%) of totai Loan Project e�cpenditures. The Council will bear no responsibility for cost ovecruns which may be incurred by the Lendee in performance ofthe Loan Project. q�-sqY 3.02 T.endee'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 I.endee agrees to provide $40,000 in matching funds ("Lendee's Match") during the Project Activity Period. The I.endee 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 I.oan 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 pazagraphs 5.01 and 5.02, the Council will distribute to the Lendee the final payment of the remainder of the Total Loan Amount, refened to in this agreement as the "I,ater Principal." No payment will be made which would cause the Total I.oan 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 I.oan 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 five eu 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 I.oan Amount. b. Loan Repayment Schedule. Attached as E�ibit 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) wiii be made two months after the end of the Project Activity Period. 4 If any of the assumptions in the previous paragraph vary from the actual amounts or dates, the Council may make, or the Lendee may request, an adjustment of the Preliminary Loan Repayment Schedule to reflect the changed amounts or dates. In such case, the annual installment dates will be deterntined using the methodology set forth in section 3.04(c). Such an adjustment must be made or requested within six months of the actual Project Completion Date. In such event, the Council will provide Lendee with a revised schedule of loan repayment which will be considered the Permanent I.oan Repayment Schedule. If no adjustment in the schedule is made or requested within six months of the actual Project Completion Date, the Preliminary Loan Repayment Schedule will be the Permanent I.oan RepaymenY Schedule. The date on which each annual installment is due under the Loan Repayment Schedule is referred to in this agreement as an"Annual Installment Date." Lendee may repay the entire loan balance, with accrued interest to the date of payment, at any time. c. Schedule Adjustment For the purposes of ttris section the term °Anniversary Date" will be defined as follows: The last day of that month which is 12, 24, 36, 48, and 60 months after the Project Comple6on Date (as defined in Section 6.01) of the Loan Project. However, in the event the Loan Project is not completed before the end of the Project Activity Period, the end of the Project Activity Period will be considered the Project Completion Date for the purposes of this definition. If the Pretiminary Loan Repayment Schedule is adjusted pursuant to section 3.04(b), the first annual installment will be due on the first Anniversary Date and the remaining installments on each consecutive Acmiversazy Date thereafter until paid in full. d. Repaymeut Forgiveness. Repayment offhe amounts Ioaned is subject to the loan forgiveness provisions of Section 6.03. IV. ACCOUNI'ING AND RECORD REQUIItEME1VTS 4.01 Documentation of Project Costs and Income. All costs charged to the Loan Project, whether paid with loan proceeds or charged as the Lendee's match, must be supported by proper documentatioq including properly executed payrolls, time records, invoices, contracts, or vouchers, evidencing in detail the nahue and propriery of the charges. 4.02 Accounts and Records. The Lendee agrees to establish and maintain accurate, detailed, and complete separate accounts and records relating to the receipt and expenditure of all �$" 5 q� If any of the assumptions in the previous paragraph vary from the actual amounts or dates, the Council may make, or the Lendee may request, an adjustment of the Preliminary Loan Repayment Schedule to reflect the changed amounts or dates. In such case, the annual instatlment dates will be determined using the methodology set forth in section 3.04(c). Such an adjustment must be made or requested within six months of the actual Project Completion Date. In such event, the Council will provide Lendee with a revised schedule of loan repayment which will be considered the Permanent Loan Repayment Schedule. If no adjustment in the scheduie is made or requested within six months of the actual Project Completion Date, the Preliminary Loan Repayment Schedule will be the Permanent Loan Repayment Schedule. The date on which each annual installment is due under the Loan Repayment Schedule is referred to in this agreement as an"Annual Installment Date." Lendee may repay the entire loan balance, with accrued interest to the date of payment, at any time. c. Schedule Adjustment For the purposes ofthis section the term "Anniversary Date" will be defined as foilows: The last day of that month which is 12, 24, 36, 48, and 60 months after the Project Completion Date (as defined in Section 6.01) of the Loan Project. However, in the event the Loan Project is not completed before the end of the Project Activity Period, the end of the Project Activity Period will be considered the Project Compietion Date for the purposes of this definition. If the Preliminary Loan Repayment Schedule is adjusted pursuant to section 3.04(b), the first annual installment will be due on the first Anniversary Date and the remaining installments on each consecutive Anniversary Date thereafter until paid in full. d. Repayment Forgiveness. Repayment ofthe amounts loaned is subject to the loan forgiveness provisions of Section 6.03. IV. ACCOUNTING AND RECORD REQUIItEMENTS 4.01 Documentation of Project Costs and Income. All costs charged to the Loan Project, whether paid with loan proceeds or charged as the Lendee's match, must be supported by proper documentation, inctuding properly executed payrolls, time records, invoices, contracts, or vouchers, evidencing in detail the nature and propriety of the charges. 4.02 Accounts and Records. The Lendee agrees to establish and maintain accurate, detailed, and complete separate accounts and records relating to the receipt and expenditure of all ��-Sqy loan funds and the I.endee'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 fuil 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 lvfinn. 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 MONTTORING REQUII2EMENTS 5.01 Final Activity and Eapenditures 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 finat accounting of loan and matching expenditures. The final repoR must include a list of project personal property as required by paragraph 7.10. 5.02 Final Project Summary Repoct. 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 I.oan 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 I/I 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 1/I 6 sources, and a cost-benefit analysis of the Loan Project based on the estimated UI removed from the system. c. An acknowledgment of the requirement for Lendee certification under section 6.02 and the methods, including a schedule with dates and locations of inspections, to be used by the Lendee in maldng the certifications. d. Copies of reports, studies, inspections, ztc. made prior to the Loan Project, documenting the conditions of the system which lead to the project. 5.03 Content of Reports. The Lendee agrees to report completely and to provide the Council with any additional or follow-up information as may be requested by Council staff. 5.04 Other Monitoring Activities. To assist the Council in monitoring compliance wiYh the loan agreement, the Lendee agrees to attend Lendee meetings as requested by Council staff and to pemut site visits by Council sta� during business hours, upon reasonable notice. The Lendee agrees to submit to the Council a copy of any promotional information regarding the Loan Project dissenunated by the Lendee during the loan Period. 5.05 C6anged Conditions. The Lendee agrees to notify the Council immediately of any change in condirions, local law, or any other event that may affect the Lendee's ability to perform the Loan Project in accordance with the terms of this agreement. VL PROJECT ACTIVTI'Y pERIOD/LOAN FORGIVENESS PROVISIONS 6.01 Project Activity Period. The Project Activity Period will consist of the time period from March 26, I998 (the date this loan was awarded by the Council) until September 30, 1999. The Lendee agrees to substantially complete the Loan Project activities described in E�ibit A during the Project Activity Period. The Councii will not provide loan funds to the Lendee for any Loan Project activities taking place before, or after the end o� the Project Activity Period. The Loan Project will be considered substantially complete when it can be utilized for the purposes for which it is intended and such date is referred to in this agreement as the 'Project Completion Date." 6.02 Inflow/Infdtration Reduction Certifications. Lendee will provide the Council with a Certification of Project Performance 30 days before the first Annual Insta.11ment Date (as deSned in section 3.04(b)) and 30 days before each Annual Installment Date thereafter (through the fifth Annual Instailment Date). The Certificate of Performance will be signed by an engineer registered in the state ofMinnesota and wi2t certify that the inIIow and infiltration removed pursuant to the Loan Project have not retumed to the system during the twelve month period prior to said Certification. On the third and fifth Annual Installment Dates, along with the said Certification, Lendee will also provide the Council with physicai documentation supporting the Certification. Exlu'bit D contains additional specific certification requirements which Lendee agrees to implement. �S- 5�� sources, and a cost-benefit analysis of the I.oan Project based on the estimated UI removed from the system. c. An acknowledgment of the requirement for Lendee certification under section 6.02 and the methods, inciuding a schedule with dates and locations of inspections, to be used by the Lendee in making the certifications. d. Copies of reports, studies, inspections, etc. made prior to the Loan Project, documenting the conditions of the system which lead to the project. 5.03 Content of Reports. The Lendee agrees to report completely and to provide the Council with any additional or follow-up information as may be requested by Council staff, 5.04 Other Monitoring Activities. To assist the Council in monitoring compliance with the loan agreement, the Lendee agrees to attend Lendee meetings as requested by Council staff and to permit site visits by Council staff, during business hours, upon reasonable notice. The Lendee agrees to submit to the Council a copy of any promotional information regarding the Loan Project disseminated by the Lendee during the loan Period. 5.05 Changed Conditions. The Lendee agrees to notify the Council immediately of any change in conditions, local law, or any other event that may affect the Lendee's ability to perform the Loan Project in accordance with the terms of this agreement. VL PROJECT ACTIVITY PERIOD/LOAN FORGIVENESS PROVISIONS 6.01 Project Activity Period. The Project Activity Period will consist of the time period from March 26, 1998 (the date this loan was awarded by the Council) until September 30, 1999. The I,endee agrees to substantially complete the Loan Project activities described in Exhibit A during the Project Activity Period. The Council will not provide loan funds to the Lendee for any Loan Project activities taking place before, or after the end of, the Project Activity Period. The Loan Project will be considered substantially complete when it can be utilized for the purposes for which it is intended and such date is referred to in this agreement as the "Project Completion Date." 6.02 Inflow/Infiltration Reduction Certifications. Lendee will provide the Council with a Certification ofProject Performance 30 days before the first tlnnuai Installment Date (as defined in section 3.04(b)) and 30 days before each Annual Installment Date thereafter (through the fiRh Annual Installment Date). The Certificate of Performance will be signed by an engineer registered in the state of Nfinnesota and will certify that the inflow and infiliration removed pursuant to the Loan Project have not retumed to the system during the twelve month period prior to said Certification. On the third and fiRh Annual Installment Dates, along with the said Certificatioq Lendee will also provide the Council with physical documentation supporting the Certification. Exhibit D contains additional specific certification requirements which Lendee agrees to implement. �t� � 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 detemune its adequacy. The Council may request, and the Lendee will provide, additional informarion or documentation in order to carry out such review. a. Positive Determination. I� in the Council's sole discretion, it detemunes 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 Certificatioq 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 deternunes 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 eactension 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 detemunes 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. Altematively, Lendee may determine that it does not desire to pursue additionai 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 I,oan 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. 8 VII, GENERAL CONDTTIONS 7.01 Amendments. The terms of this agreement may be changed only by mutual agreement of the parties. Such changes wiII be effective only upon the execution of written amendments signed by authorized officers of the parties to this agreement. 7.02 Noncompliance by I.endee. If the Council finds that there has been a failure to comply with the provisions of this agreement, the Council may terminate the agreement at any time foltowing seven (7) days' written notice to the I.endee and upon failure of the I.endee to cure the default within the seven-day period. If the Council finds that the I.endee's noncompliance is willful and unreasonable, the Council may terminate or rescind this agreement and require the Lendee to immediately repay the loan funds in full or in a portion detemrined by the Council. Nothing herein will be construed so as to limit the Council's legal remedies to recover loan funds. 7.03 Unauthorized Use of Loan Proceeds. Upon a finding by Council staffthat the Lendee has made an unauthorized or undocumented use of loan proceeds, and upon a demand for repayment issued by the Council, the Lendee agrees to promptly repay such amounts to the Council. 7.04 Indemnification. The Lendee assumes liability for and agrees to defend, indemnify and hold harmless the Council, its members, officers, employees and agents, from and against all losses, damages, etcpenses, liability, claims, suits, or demands, including without limitation attorney's fees, arising out o� resulting from, or relating to the performance of this agreement by Lendee or I.endee's empioyees, agents, or subcontractors. 7.05 Public Data. The Lendee agrees that the results of the Loan Project, the reports submitted, and any new information or technology that is developed with the assistance of this loan is in the public domain and may not be copyrighted or patented. 7.06 Equal Employment Opportunity; Aftirmative Action. The Lendee agrees to comply with all applicable laws relating to nondiscrimination and affirmative action. In particular, the Lendee agrees not to discriminate against any employee, applicant for employment, or participant in this project because of race, color, creed, religioq national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation, or age; and further agrees to take action to enswe that applicants and empioyees are treated equally with respect to all aspects of employment, including rates of pay, selection for training, and other forms of compensation. 7.07 Acknowledgment. The Lendee will appropriately acknowledge the loan assistance made by the Council in any promotional materials, reports, and publications relating to the I,oan Project. > �� : VII. GENERAL CONDITIONS 7.01 Amendments. The terms of this agreement may be changed oniy by mutual agreement of the parties. Such changes will be effective only upon the execution of written amendments signed by authorized officers of the parties to this agreement. 7.02 Noncompliance by Lendee. If the Council finds that there has been a failure to comply with the provisions of this agreement, the Council may temunate the agreement at any time following seven (7) days' written notice to the Lendee and upon failure of the Lendee to cure the default within the seven-day period. If the Council finds that the Lendee's noncompliance is willful and unreasonable, the Council may terminate or rescind this agreement and require the I,endee to immediately repay the loan funds in full or in a portion detemuned by the Council. Nothing herein will be construed so as to limit the Council's legal remedies to recover loan funds. 7.03 Unauthorized Use of Loan Proceeds. Upon a finding by Council staff that the Lendee has made an unauthorized or undocumented use of loan proceeds, and upon a demand for repayment issued by the Council, the Lendee agrees to promptly repay such amounts to the Council. 7.04 Indemnificafion. The Lendee assumes liability for and agrees to defend, indemnify and hold harniless the Council, its members, officers, employees and agents, from and against all losses, damages, expenses, liability, claims, suits, or demands, including without limitation attomey's fees, azising out of, resulting &om, or relating to the performance of this agreement by Lendee or Lendee's employees, agents, or subcontractors. 7.05 Public Data. The Lendee agrees that the results of the Loan Project, the reports submitted, and any new information or technology that is developed with the assistance of this loan is in the public domain and may not be copyrighted or patented. 7.06 Equai Employment Opportunity; Affirmative Action. The Lendee agrees to comply with all applicable laws relating to nondiscrimination and affirmative action. In particulaz, the Lendee agrees not to discriminate against any employee, applicant for employment, or participant in this project because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation, or age; and further agrees to take action to ensure that applicants and employees are treated equally with respect to all aspects of employment, including rates of pay, selection for training, and other forms of compensatioa 7.07 Acknowledgmen� The Lendee will appropriately acknowledge the loan assistance made by the Council in any promotional materials, reports, and publications relating to the Loan Project. � �--59 `� 7.08 Compliance with Law. The Lendee agrees to conduct the Loan Project in compliance with all applicable provisions of federai, state, and local laws. 7.09 Permits and Approvals. The Lendee is responsible for obtaining all local and state pernnts, licenses, and authorizations necessary for the I.oan Pro}ect. 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 properiy 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 beazs 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 perfornung the project, whether by planned withdrawal, misuse, or casualty loss, the Lendee will immediately notify the CounciPs Loan Manager. Unless otherwise approved by the Council's Loan Manager, the Lendee will remit to the Councii a proportional amount of the fair market value of the item(s), if any, deternuned on the basis of the proportion of Council loan funds used to acquire the item(s). 7.11 Effect of Project Closeout The I,endee 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 retum any funds due to the Council as a result of later refunds, corrections, or other transactions. io IN k'ITNESS WHEREOF, the parties have caused this agreement to be executed by their duly authorized offic n tfie dates set forth below. This agreement is effective upon final execution by, and delive�p� Dafe Date LENDEE: CTTY OF SAINT PAUL � Name TiYle METROPOLTTAN COUNCII. � 7ames J. Solem Regional Administrator Approved as to form: Metropo&taa Council Office of General Counsel FIleNamr: _i_loan#Z Revision: 12/96 a�-s9y EXHIBIT A- PROJECT ACTIVITIES & SCOPE CTI'Y OF SAINT PAUL The project activities and scope proposed by the City of Saint Paul includes the relining of 2,187 feet of sanitary sewer pipe using cured-in-place pipe (CIPP). The sewer line relining will be done to 10 inch and 12 inch sewers located within Robie Sueet between Orleans Street and Winslow Avenue, and within Manomin Avenue between King Street and Cherokee Avenue. These pipes were observed to be leaking at various joints throughout the pipe segments. Activities within the project scope include: 1. Rehabilitation of approximately 2,187 linear feet of 10 and 12 inch VCP sewer pipe using a cured-in-place pipe (CIPP) liner. The repairs are located in sections of gipe beneath Robie Street and Winslow Avenue in the Southem area of the City near Cherokee Park. 2. Upon completion of all inspections, and review of inspection reports, a summary report will be prepazed. 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 Project activities will be conducted using a combination of City Staff personnel, and conuacted service vendors. �►�-sqy EXHIBIT B - PROJECT BUDGET CITY OF SAINT PAUL Total project as outlined in the City's project program activities has been estimated at $149,000. Of this amount the City proposes to finance 73% or $109,000 using City funds, and finance the remaining 27% using the $40,000 loan. Total project cost estimate is based on the lining of sanitary sewer segments using cured-in-place pipe liners. An itemized breakdown of the pro}ect costs have been summarized in a letter from the City, dated May 12, 1998 and is attached an hereby part of Exhibit B. (See attached summarized study cost letter) CITY OF SAINT PAUL Norm Co[eman. Mayor May 12, 1998 Mr. Kyle Colvin Senior Engineer Wastewater Services Department I:�etropelit2.n Council Environmental Services 230 Fifth Street Bast Saint Paul, Minnesota 55101-1633 DEPARTMENT OF PUBLIC WORKS � � — � q � Stacy M. Becker, Director Thomas J. Eggum. City Engineer Roger Puchreiter, Sewer Utiliry Manager 7000 Ciry Hal! Annes 25West Fowth Street (612) 2666234 Saint Pau[. MN 55102 FAX (612) 298-5621 12E: City of Saint Paul Loan for Inflow and Infiltration Control (Robie - Orleans to Winslow and Manomin - King to Cherokee) Deaz Mr. Colvin: Tt is my understanding that you are looking for additional information on the above mentioned project. The project will include instailing a Cured In Place Pipe (CIPP) liner in the existing piping system at approximately 45 locations on Saint Paul's West Side. Incidental to the actual project cost will be cleaning and taping the existing pipe including removina any mineial deposits at joints or service connections that s[ick into the pipe and video taping after the liner has been placed. The [otal estimated cost for the overali project, which is known as Ohio / Plate Relining Project, is: Construction Cost Engineering and Inspection (18.5%) TOTAL $1,079,000 200.000 � 1,279,000 The estimated cost for lining Robie, Orleans to Winslow and Manomin, King to Cherokee is: Construction Cos[ Engineering and Inspection (18.5%) TOTAL $126,000 23.000 $149 Please review this information and if you have any questions, contact me at 266-6149. Sincerely, . os h eller, . E. Sewer Utili[y JM:tl Respertsive Services • Qua(iry Facilirres • Employee Pride � � � � d r� � � � d � � a C as � a � � C .r � .� � L a t U ...i � W d � �O �a L' � � � O � O � � •V O � A U '� � � � O 0 3 � ° �� r-� � N �--� � � Q �i 0 .� f]. O U � � . � a i�7 V O� O V1 N C U C�� O o�o W o�o � , ❑ LQ ) � O m V) �/1 M � � N l0 � W V � � � O M O o0 0� O O O V O� y N N y ornrno�o� y ti O oo � V N ti �--� a� O l� O N� a v� V �n O vi O� O O O Q� .� O O� O� O� �O 00 O� .r M M M f�1 V V C N a � � � � � Vl V1 V1 h 7 O� O� O� O� Oi .-+ .-. .-.� .--i �--i. � � � b b 'V V V V 7 N G � a � � � � A � � Q� �Y.' W YI A 0 0 0 0 0 N 69 � � '. � N .-. 0o O .-+ N M � � � Q Q � � � � � � � � '. '. '. " '. .. � M M M M M � � � � � � N N N N N. '. '. '. '. .r Y � � � � d � � � � F � � � � � ,��,,S�a''S� a a�i � � � � � .n¢�¢�� Q .. N tn ' `�'V � � � .� N La � � ¢� W � Q � O � d u � z �L a d a O c`l I� O� �D O [� N N r� O h h 00 .+ � O V [� .-� �O O N V �n m O �O N o0 7 N .-. �--� �A M 00 O� O � C cV tn vi o0 tn •--� N N �--� 00 00 �O 7 N 00 V1 00 M \O N V Q� Q� M (V O o0 �D .-� h n h N � [ � I� Qi .r M M M M V � V V' 'cY V M W 00 00 W � (V N N N O� W W W W l� � h h N h V � R �t V 0 0 0 0 0 0 N 69 O 0 N M oo'-N�nv � Q � Q Q � � � � � � � c� " '. r, .. '. � M M M M M M � � � � � N N N N N '. .-. .-. .. .-. r-� d �! �+ �+ �„� � V �+ �+ � G G G � ' y •y ay � c ,r-,�S�S�S as m � � a � � p ¢ ¢ ¢ ¢ ¢ � A ai C b w'.�3 .r N tn '7 vl �� sqY V M O N � .� � C � m O M O � C �a m � � ° z 0 $ 0 � � U � O � � a � N � � H � � � � � a�-sqy EXHIBIT D - CERTIFICATION PROCESS PIPELINE REPAII2S PIPELINES The first and fifth year certification shall be based on findings resulting from an inspection of 100% of the sanitary sewer pipeline footage rehabilitated under the Loan Project. The second, third and forth year certification shall be based on findings resulting from an inspection of 33% of all sanitary sewer pipeline segments rehabilitated under the L,oan Project. If the Loan Project involves the rehabilitation of a single pipeline segment, then 100% of said segment shall be inspected in the second, third and fourth year certification. On the third and fi8h anniversary dates, along with said certification, Lendee shall also provide the Council with physical documentation supporting the certification in the form of visual inspection records of 100% of all pipeline segments requiring rehabilitation during the initial project. Prior to the community performing the certification inspections, the Council will be notified so that a representative from the Council has the opporiunity to be present during the inspections. All facilities to be inspected for certification shall be identified prior to the inspections and a list of said facilities along with a map showing their locations shall be sent to the Council for review and comment. Certification inspections shall be performed during periods when UI sources would typically be discharged into the system. In the event that any pipeline segment is found to be allowing excessive amounts of I/I into the sanitary system during the certification inspec[ions, and if that pipeline segment undergoes further rehabilitation to correct the situation, that segment shall be added to, and considered in addition to the list of pipeline segments for inspection for the following year's certification. ORIGINAL Presented by: Referred to: Committee c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 WHEREAS, the Metropolitan Council Environmental Services has offered Saint Paul a grant of $10,000 to fund a study to identify sources of inflow and infiltration (I&� of clean water into the Metropolitan Disposal System; and WHEI2EAS, Saint Paul is required under its NPDES pernut to conduct such studies to identify sources of I &I; and WHEREAS, the Metropolitan Council Environmental Services has offered Saint Paul a loan of $40,000 to fund a project that reduces this I&I; and WHEREAS, in 1998, as part of the Ohio / Plato Relining Project, Public Works will be repairing an old sanitary sewer that has excessive I&I; and WIIEREAS, if a funded project eliminates I&I in that sanitary sewer for a period of five years, the loan is forgiven. Therefore, be it RESOLVED, by the City of Saint Paul that Stacy Becker, Public Works Director, or her designee be authorized to execute the grant and loan agreements. Requested by Department of: Public Works By: ! / � Form Approved by City Attorney Adoption Certified by Council Secretary By: a- , r�7 � � Approved by M o: D Byc Council File ��0 =� � Green Sheet TM 62530 RESOLUTION CITY OF SAINT PAUL MINNESOTA 20 B ✓�Q��''^ �� — by Mayor ion to Council Adopted by Council: Date � � � s}V Works ..., ASSIGN ' NUMBERFOR ROVfING OFiDER S OF SIGNANRE PAGES � (CL1P ALL LOCAiIONS FOR SIGNANF� GREEN SHEET iNin v ATE PARTMENTDIRECTOR Y ATTORNEY 'Al G. 7• 9� -sy`t No. 624�0 INIT7AVDATE _ CIERK _ & MGT. SERVICES ACCOUM1TANT rove the attached resolution authorizuig the Director of Public Works to execute agreements accepting a 000 grant (see E�ibit A) and a$40,000 loan (see E�ibit B) from the Metropolitan Council to fund inflow infiltration projects. PLANNING COMMISSION CML $EiiVICE COMMISSION CIB COMMITTEE � STAFF _ _DISTRICTCOUNCIL _ SUPPORTS WHICH COUNCILO&)ECTIVE? PERSONAL SERVICE COMRACTS MUST ANSWERTHE FOLLOWIN6 DUESTIONS: �. Has Mis personfiiim ever worketl under a coMmcl for this department? YES NO 2. Has this persoNflrtn ever been a city employee? YES NO 3. Does this perso�rm possess a sltill not normally possessetl by any curtent city employee? YES NO Expiain all yes answers on separate sheet and attach to green sheet NITIATING PROBLEM, ISSUE, OPPORTUNITY (WHO. WHAT, WHEN, WHERE, NhiV): The Metropolitan Council has offered Saint Paul a grant of $10,000 to identify sources of inflow and inf'�ltration (I&I) of clean water into our sanitary sewer system. They have also offered Saint Paul a loan of $40,000 for a project that will eliminate I&I. This loan will be forgiven if the project successfully eliminates I&I for five yeazs. These projects aze already budgeted for this year. If we receive a grant or loan, it will reduce the cost to Saint Paul rate payers. �� none ��vo�3� €�c��c� ��'�� JU� � 7 ��g � � �, �,,�, ��,o �� -��-.:�s 6 DISADVANTAGES IF NOT APPROVED: Public Works will not be able to take advantage of essentially "free" money to finance projects already progratmned. TOTALAMOUNTOFTRANSACTION§ FUNDING SOURCE FlNANCIAL INFORMAiION: (EXPLAIN) sa,oDO, o0 �9UfiC!{ �@S@8fC�1 �',2(1$6� ,l�Pd 1 � i998 WST/REVENUE BUDGETED (CIRCLE ONE) YES ACRVITY NUMBER NO � qsr-sq`t E,ch � b �-� �� _1_ Contract No. C-3356 INFI,pW/INFILTRATION CONTROL PROGRAM GRANT AGREEMENT BETWEEN'I`HE METROPOLTTAN COUNCII� AND CITY OF SAINT PAUL THIS AGREEMENT is entered into by and between the Metropolitan Council (the "Council") and the City of Saint Paui (the "Grantee"), 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 ("UP') 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 grants to communities serviced by the Metropolitan Disposal System in order to fund studies aimed at identifying, locating, quantifying and developing action plans for the elimination of excessive community inflow and infiltration into the local sewer systems; and WHEREAS, it is in the best interests of the Grantee to reduce inflow and infikration into its local sewer system in order to increase capacity, reduce costs, and delay the necessity to undertake capital improvements; and WHEREAS, the Grantee is eligible to receive an InflowlInfiltration Control Program Grant and has submitted an application for a such a grant; and WHEREAS, the Council has reviewed the application and desues to assist the Grantee by the award of an Inflow/Infiltration Control Program Grant• NOW, THEREFORE, the Council and the Crrantee agree as follows: L GRAN'I'EE PERFORMANCE OF GRANT STUDY 1.01 Grant Study Activities. The Grantee agrees to perform and complete in a satisfactory and proper manner the study as described in the Grantee's application for gant assistance ("Grant Stud}�'), incorporated in this agreement by reference, and in accordance with the terms and conditions of this agreement. Specifically, the Grantee agrees to perform the study activities described in E�chibit A, which is attached to and incorporated in this agreement. After the Work Plan described in paragraph 5.01 has been approved by the Council, the Grantee agrees to conduct the Grant Study activities in compliance with the approved Work Plan. The Grantee may engage contrac�ors to perform the Grant Study with prior approval of the Council. However, the Grantee retains primary responsibility to the Council for performance of the Crrant Study. -2- 1.02 Material Representations. The Grantee agrees that all representations contained in its application for grant assistance aze material representations offact upon which the Council relied in awarding this grant and are incorporated in tlus agreement by reference. 1.03 Grantee Certification. Grantee certifies that the grant funds to be distributed pursuant to this agreement will be appiied to the purposes stated in this agreement. 1.04 Governing Body Resolution. Grantee will provide the Council with a copy of a resolution by its governing body which authorizes The GranYee to enter into this agreement. II. AUTHORIZED USE OF GRANT PROCEEDS AND MATCHIIVG P'UNDS 2.01 Authorized Uses. The Grantee is authorized to use the grant funds only in payment of the line item costs specified in Exhibit B, which is attached to and incorporated in this agreement. No other use of grant funds is permitted. Grant and matching funds may be used only for costs directly associated with Grant Study activities. Grant and matching funds may be used to prepare the Work Plan required by pazagraph 5.01 of this grant agreement. 2.02 Unauthorized Uses of Grant Proceeds. Grant funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or pemut, license, or other authorization fees, unless specifically approved in advance by the Council's authorized agent. 2.03 Reversion of Uneapended Funds. All funds granted by the Councit under this agreement that have not been expended for grant activities taking place during the Grant Study Activiry Period shalI revert to the Council. 2.04 Grant Study Equipment and Supplies. Grant and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property directly necessary to conduct the Grant Study. The Grantee will comply with the personal property management requirements described in paragraph 7.10 of this agreement. III. GRANT AMOUNT AND DISTRIBUTION 3.01 Totai Grant Amount The Council shall pay fo the Grantee a total grant amount of $10,000. Provided, however, that in no event will the Council's obligation under this agreement exceed the lesser of: a. the Total Grant Amount of $10,000; or, b. fifty percent (50°/a) of total Grant Study eacpenditures. The Council shall bear no responsibility for cost overruns which may be incuned by the Grantee in performance of the Grant Study. �$-sq� -2- 1.02 Material Representations. The Grantee agrees that all representations contained in its application for gant assistance are material representations of fact upon which the Council relied in awarding tkus grant and aze incorporated in this ageement by reference. 1.03 Grantee Certification. Grantee certifies that the grant funds to be distributed pursuant to this agreement will be applied to the purposes stated in this agreement. 1.04 Governing Body Resolution. Grantee will provide the Council with a copy of a resolution by its governing body which authorizes the Grantee to enter into this agreement. IL AUTHORIZED USE OF GRANT PROCEEDS AND MATCHING FUNDS 2.01 Authorized Uses. The Grantee is authorized to use the grant funds only in payment of the line item costs specified in E�ibit B, which is attached to and incorporated in this ageement. No other use of grant funds is permitted. Grant and matching funds may be used only for costs directly associated with Grant Study activities. Grant and matching funds may be used to prepare the Work Plan requ'ued by paragraph 5.01 of this grant agreement. 2.02 Unauthorized Uses of Grant Proceeds. Grant funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or pemvt, license, or other authorization fees, unless specifically approved in advance by the Council's suthorized agent. 2.03 Reversiop of Unezpended Funds. All funds granted by the Council under this agreement that have not been expended for grant activities taldng place during the Grant Study Activity Period shall revert to the Council. 2.04 Grant Study Equipment and Suppties. Grant and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property d'uectly necessary to conduct the Grant Study. The Grantee will comply with the personal property management requirements described in paragraph 7.10 of this agreement. IIL GRANT AMOUNT AND DISTRIBUTION 3.01 Tota! Grant Amoun� The Council shall pay to the Crrantee a total grant amount of $10,000. Provided, however, that in no event will the Council's obligation under ttus agreement exceed the lesser of: a. the Total Grant Amount of $10,000; or, b. fifty percent (50%) of total Grant Study expenditures. The Council shall bear no responsibility for cost overruns which may be incurred by the Grantee in performance of the Grant Study. �� -59`� -3- 3.02 Grantee's Match. The Grantee has an obligation under this grant agreement to share in the costs of the Grant Study by providing at least a fifty percent (50%) cash or in-kind match. Accordingly, the Grantee agrees to provide $10,000 in matching funds during the Grant Study Activity Period, in accordance with the Council's Guidelines and Application Materials dated December 1997 and incorporated in this agreement by reference. The Grantee 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 Totat Grant Amount. 3.03 Distribution of Grant Funds. Grant funds will be distributed by the Council according to the following schedule: a. � Upon commencement of the study funded by this grant, the Council will distribute to the Grantee fifty percent (50%) of the Total Crrant Amount. Upon approval of the final reports required by paragraphs 5.04 and 5.05, the Council will distribute to the Grantee the final payment of the remainder of the Total Grant Amount. No payment will be made which would cause the Total Grant Amount to exceed fifty (50%) of projected total Grant Study costs. No payment will be made if the Grantee 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 Grantee noncompliance with this agreement. IV. ACCOUNTING AND RECORD REQUIItEMENTS 4.01 Documentation of Grant Study Costs and Income. All costs charged to the Grant Study, whether paid with grant proceeds or charged as the Grantee's match, must be supported by proper documentation, including properly executed payrolls, time records, invoices, contracts, or vouchers, evidencing in detail the nature and propriety of the charges. 4.02 Accounts and Records. The Grantee agrees to establish and maintain accurate, detailed, and complete separate accounts and records relating to the receipt and expenditure of all grant funds and the Grantee's Match required by this agreement, including all Grant Study documents, financial records, supporting documentation, and the property records required by paragraph 7.10. These Grant Study accounts and records shall be retained intact by the Grantee for at least three (3) years following the end of the Grant Period set forth in section 6.02. These requirements shall survive closeout of the grant agreement. 4.03 Audit The Grantee 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 Grant Period; 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. -a- During the time of such maintenance, authorized representatives of the Council will have access to all such books, records, documents and evidence for the purpose of inspection, audit, and copying during normal business hours. The Grantee will provide proper facilities for such access and inspection. These requirements shall survive closeout ofthe grant agreement. V. REPORTING AND MONTTORING REQUIIZEMENTS 5.01 Work Plan. The Grantee shall prepare and submit a detailed work plan for Council approval within forty-five (45) days of execution of this grant agreement. The Work Plan shall be in the format specified by the Council and shall contain the level and types of information required by the Council. The Work Plan shall include the tasks to be undertaken together with schedules and costs, the sources and amount of the match to the grant, a detailed budget, and the individuals responsible for the tasks. 5.02 Summarp and Comparison Status ReporG Upon expenditure o£&fty percent (50%) of the projected totat eligible Grant Study costs, the Grantee must submit to the Council for review and approval a detailed summary of Grant Study expenditures and completed work activities, including a comparison of actual activities and expenditures against planned activities and projected expenditures. 5.03 Semi-annual Status Reports. For Grant Studies with an activity period over one (1) year, the Grantee must submit to the Council semi-annual reports on Grant Study activities and eacpenditures. The semi-annual reports must be in a format prescribed by the Council and aze due within thirty (30) days after the end of each siY-month period of the Grant Study activity period. Por studies with an activity period not exceeding one (1) year, the report required by paragraph 5.02 shall be deemed the semi-annual report. 5.04 Final Activity and Eapenditure Report. Upon completion of the Grant Study and not later than two (2) months after the end of the Crrant Activity Period, the Grantee must submit a final report for Council review and approval describing the activities and expenditures for the Grant Study and containing a final accounting of grant and matching eapenditures. The final report must include a list of Grant Study personal properry as required by pazagraph 7.10. 5.05 FiQa1 Findiugs Report. Upon complerion of the Grant Study and not later than two (2) months after the end of the Grant Activity Period, the Grantee must submit three (3) complete copies of a"Final Findings Report" for Council review and approval. The Findings Report shall contain at a nunimum the following information obtained during and as a result of the Grant Study: a. An overall summary of the investigative Grant Study swpe and activities. b. An overall summary of the investigation including an estimate of UI discovered within the study area, location(s) of UI sources within the study area and suspected areas outside the study area(s), a list of potential follow-up project(s) to reduce or eliminate UI sources, the cost of potential project(s), and a cost-benefit analysis of doing the potential project(s) listed. �1$'S9� ` �_ During the time of such maintenance, authorized representatives of the Council will have access to all such books, records, documents and evidence for the purpose of inspection, audit, and copying during normal business hours. The Grantee will provide proper facilities for such access and inspection. T'hese requirements shall survive closeout of the grant agreement. V. REPORTING AND MONTTORING REQUIREMENTS 5.01 Work Plan. The Grantee shall prepare and submit a detailed work plan for CouncIl approval within forty-five (45) days of execution of this grant agreement. The Work Plan shall be in the format specified by the Council and shall contain the level and types of information required by the Council. The Work Plan shall include the tasks to be undertaken together with schedules and costs, the sources and amount of the match to the grant, a detailed budget, and the individuals responsible for the tasks. 5.02 Summary and Comparison Status Report. Upon expenditure of fifty percent (50%) ofthe projected total eligi'ble Grant Study costs, the Grantee must submit to the Council for review and approval a detailed summary of Grant Study expenditures and completed work activities, including a comparison of actual activities and expenditures against planned activities and projected expenditures. 5.03 Semi-annuai Status Reports. For Grant Studies with an activity period over one (I) year, the Grantee must submit to the Council semi-annual reports on Grant Study activities and expenditures. The semi-annual reports must be in a format prescribed by the Council and aze due within thirty (30) days after the end of each six-month period of the Grant Study activity period. For studies with an activity period not exceeding one (1) yeaz, the report required by paragraph 5.02 shall be deemed the semi-annual report. 5.04 Final Activity and Eapenditure Report. Upon completion ofthe Grant Study and not later than two (2) months after the end of the Crrant Activity period, the Crrantee must submit a final report for Council review and approval describing the activities and expenditures for the Grant Study and containing a final accounting of grant and matching expenditures. The final report must include a list of Grant Study personal property as required by paragraph 7.10. 5.05 Final Findings Report. Upon completion of the Grant Study and not later than two (2) months after the end of the Grant Activity Period, the Grantee must submit three (3) complete copies of a"Final Findings Report" for Council review and approval. The Findings Report shall contain at a minimum the following information obtained during and as a result of the Grant Study: a. An overall summary of the investigative Grant Study scope and activities. b. An overall summary of the investigation inciuding an estimate of UI discovered within the study area, location(s) oFUI sources within the study area and suspected areas outside the study area(s), a_list ofpotential follow-up project(s) to reduce or eliminate UI sources, the cost of potential project(s), and a cost-benefit analysis of doing the potentiai project(s) listed. ° t � `1 -s- c. A schedule for doing follow-up project(s) within the study area aimed at reducing or eliminating sources of I/I and an indication of whether outside funding sources would be required by the Grantee in order to finance the project(s). 5.06 Content of Reports. The Grantee agrees to report completely and to provide the Council with any additional or follow-up information as may be requested by Council staff. 5.07 Other Monitoring Activities. To assist the Council in monitoring compliance with the grant agreement, the Grantee agrees to attend Grantee meetings as requested by Council staff and to pemut site visits by Council staff, during business hours, upon reasonable notice. The Grantee agrees to submit to the Council a copy of any promotional information regarding the Grant Study disseminated by the Grantee during the Grant Period. 5.08 Changed Conditions. The Grantee agrees to notify the Council immediately of any change in conditions, local law, or any other event that may affect the Grantee's ability to perform the Crrant Study in accordance with the terms of this agreement. VI. TINIII`IG REQUIItEMENTS 6.01 Grant Study Activity Period. The Grant Study Activity Period shall consist of the time period from March 1, 1998 or from the date this grant was awarded by the Council) until August 31, 1999 that date which is eighteen months after the date when this agreement is executed by both parties. The Crrantee agrees to complete the Grant Study activities descrihed in E�ibit A during the Study Activity Period. The Council will not provide grant funds to the Grantee for any Grant Study activities taking place before or after the end of the Study Activity Period. 6.02 Grant Period. The Grant Period shall extend from the date of final execution of this agreement to a date three (3) months following the end of the Study Activity Period, to pernut closeout of the grant agreement. VII, GENERAL CONDTTIONS 7.01 Amendments. The tenns of this agreement may be changed by mutual agreement of the parties. Such changes shall be effective only upon the execution of written amendments signed by authorized representatives of the Council and the Grantee. 7.02 Noncompiiance by Grantee. If the Council finds that there has been a failure to comply with the provisions of this agreement, the Council may terminate the agreement at any time following seven (7) days' written notice to the Grantee and upon failure of the Grantee to cure the default wit`hin the seven-day period. If the Council finds that the Crrantee's noncompliance is willful acid unreasonable, the Council may terminate or rescind this agreement and require the Grantee to repay the grant funds in full or in a portion detemuned by the Council. Nothing herein shall be construed so as to limit the Council's legal remedies to recover grant funds. � 7.03 Unauthorized Use of Grant Proceeds. Upon a finding by Council staffthat the Grantee has made an unauthorized or undocumented use ofgrant proceeds, and upon a demand for repayment issued by the Council, the Grantee agrees to promptly repay such amounts to the Council, 7.04 Indemnification. The Grantee assumes liability for, and agrees to indemnify, protect and hold harmless the Council, its members, officers, employees, and agents, &om any liabilities, obligations, losses, damages, claims, injuries, penalties, costs and e�cpenses, including reasonable attomey's fees, arising out of the performance of the Grant Study by Grantee or Grantee's empioyees, agents, or subcontractors. 7.05 Public Data. The Grantee agrees that the results of the Grant Study, the reports submitted, and any new information or technology that is developed with the assistance of tlus grant is in the public domain and may not be copyrighted or patented. 7.06 Equal Employment Opportunity; Affirmative Action. The Grantee agrees to comply with all applicable laws relating to nondiscrimination and affirmative action. In particular, the Grantee agrees not to discriminate against any employee, applicant for employment, or participant in this Grant Study because of race, color, creed, religioq sex, sexual orientation, marital status, status with regazd to public assistance, membership or activiry in a local civil rights coaunissioq disability, age, or national origin, and further agrees to take af�irmafive action so that applicants and employees are treated equally with respect to all aspects of employment and compensation. 7.07 Acknowledgment The Grantee shall appropriaiely acknowledge the grant assistance made by the Council in any promotional materials, reports, and publications relating to the Grant Study. 7.08 Compliance with Law. The Grantee agrees to conduct the Grant Study in compliance with all applicable provisions of Federal, state, and local laws. 7.09 Permits and ApprovaLs. The Grantee is responsible for obtaining all local and state permits, licenses, and authorizations necessary for the Crrant Study. 7.10 Personal Property Managemen� Title to all personal property acquired with grant or matching funds sha11 remain with the Grantee during the Grant Period. Accordingly, the Grantee shall take reasonable measures to protect and defend its tifle interest and shall keep the personal properry free and clear of any liens, encumbrances, or other claims. The Grantee must maintain property records that include, at a minimum, a description of the property, a serial or other identification number, tfie acquisirion date and cost, and the location, use, and condition of the property. In ttte finat report required by paragraph 5.04, the Grantee shall include a list of all personal property acquired with grant and matching funds which was not expended in performance of the`Crrant Study. At the end of the Grant Period, the Grantee agrees to transfer title to all personal property acquired in whole or in part with grant funds to the Council, at the Council's option, at no charge. The Council reserves the right to direct appropriate disposition of all personal properLy, acquired in whole or in part with grant funds, wluch has not been expended in performance of the Grant Study. 1$-�9� .�_ 7.03 Unauthorized Use of Grant Proceeds. Upon a Snding by Council staffthat the Grantee has made an unauthorized or undocumented use of grant proceeds, and upon a demand for repayment issued by the Council, the Grantee agrees to promptly repay such amounts to the Council. 7.04 Indemnification. The Grantee assumes liability for, and agrees to indemnify, protect and hold harmless the Council, its members, officers, employees, and agents, &om any liabilities, obligations, losses, damages, claims, injuries, penalties, costs and expenses, including reasonable attomey's fees, arising out of the perFonnance of the Grant Study by Cnantee or Crrantee's employees, agents, or subcontractors. 7.05 Public Data. The Grantee agrees that the results of the Crrant Study, the reports submitted, and any new information or technology that is developed with the assistance of this grant is in the public domain and may not be copyrighted or patented. 7.06 Equal Employment Opportunity; Aftirmative Action. The Grantee agrees to comply with all applicable laws relating to nondiscrimination and aflirmative action. In particular, the Grantee agrees not to discriminate against any employee, applicant for employment, or participant in this Grant Study because of race, color, creed, religioq se�c, sexual orientation, marital status, status with regard to public assistance, membership or activiry in a local civil rights commission, disability, age, or national origin, and further agees to take affirmative action so that applicants and employees are treated equally with respect to all aspects of employment and compensation. 7.07 Acknowledgmen� The Grantee shall appropriately acknowledge the grant assistance made by the Council in any promotional materials, reports, and publications relating to the Grant Study. 7.08 Compliance with Law. The Grantee agrees to conduct the Grant Study in compliance with all applicable provisions of Federal, state, and local laws. 7.09 Permits and Approvals. The Grantee is responsible for obtaining all local and state pemuts, licenses, and authorizations necessary for the Crrant Study. 7.10 Personat Property Management Title to all personal property acquired with grant or matching funds shall remain with the Grantee during the Grant Period. Accordingly, the Grantee shall take reasonable measures to protect and defend its title interest and shall keep the personal property free and clear of any liens, encumbrances, or other claims. The Grantee 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 5.04, the Grantee shall include a list of all personal properry acquired with gant and matching funds wtuch was not expended in performance of the Grant Study. At the end of the Grant Period, the Grantee agrees to uansfer title to ail personal property acquired in whole or in part with grant funds to the Council, at the Council's option, at no chazge. The Council reserves the right to direct appropriate disposition of all personal property, acquired in whole or in part with grant funds, which has not been expended in performance of the Grant Study. °l�-s�, y -�- During the Grant Period, the Grantee bears the risk of loss o� damage to, or destruction of any personal proQerty acquired with grant or matching funds. No such loss, damage, or destruction shall relieve the Grantee of its obligations under this agreement. The Grantee agrees to maintain personal properiy acquired with grant or matching funds in good operating order. If, during the Grant Study Activity Period, any Gc'ant Study personal property is not used in performing the Grant Study, whether by planned withdrawal, misuse, or casualty loss, the Grantee shall immediately notify the Council's authorized agent. Unless otherwise approved by the Council's authorized agent, the Grantee shall remit to the Council a proportional amount of the fair mazket value of the item(s), if any, determined on the basis of the proportion of Council grant funds used to acquire the item(s). 7.11 Effect of Grant Study Closeout. The Crrantee agrees that Grant Study closeout does not invalidate continuing obligations imposed on the Grantee by this agreement. Grant Study 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 Crrantee's obligation to return any funds due to the Council as a result of later refunds, corrections, or other transactions. - g- IN WITNESS WHF,$EOF, the parties have caused this agreement to be executed by their duly authorized represe��on the dates set forih below. GRANTEE• CITY OF SAINT PAUL Name: Its METROPOLTTAN COUNCII, Date: James 7. Solem, Regional Administrator Approved as to farm: Office of General Counsel AN 1_GRNI:WPp °t � -s� y EXHIBIT A- STUDY PROGRAM ACTIVITIES CTTY OF ST. PAUL The study program activities proposed by the city of St. Paul includes the installation of four temporary flow meters within portions of the City's sanitary sewer system which are tributary to sanitary sewer regulators. The City currently has 35 active regulators that have not been eliminated through the CSO program. The Study will utilize the temporary flow meters to identify and help locate sources of rain derived inflow. Once these sources can be identified, follow-up projects can be developed. Activities within the study area include: 1. Installation of up to four temporary flow meters within various sanitary sewer regulator service azeas within the City. 2. Collection of flow data at various sites for varying duration's. The intent of the temporary meters is to capture flow information during storm events and isolate sources of inflow. 3. �sual inspections of the sanitary sewer system to help identi£y the location of inflow into the system. The systematic flow monitoring of the regulator service azeas should provide focus areas in which City staff personnel can conduct in-field inspections to identify the specific source of the inflow. 4. Ugon completion of all data gathering and review of the information, a summary report will be prepared. Summary report is to include recommendations for prioritized UI sewer rehabilitation work. Study activities will be conducted using City Staff Personnel. q�-S�`1 EXHIBIT B - STUDY BUDGET CITY OF ST. PAUL Total study as outlined in the City's study program activities has been estimated to be $20,131. Of this amount the City proposes to finance 503% or $10,131 using City funds, and finance the remaining 49.7% using the $10,000 grant. An itemized breakdown of the study costs have been summarized in a table from the City, received with a letter dated Apri122, 1998 and is attached an hereby part of E�ibit B. (See attached summarized study cost table) "•� °l�"Sgy �,�h; 6 ��- .��,. ��-sq`t Contract No. C-3369 INgI,OW/�ILTRATION CONTROL PROGRAM LOAN AGREEMENT BETWEEN THE METROPOLTTAN COUNCII. AND CITY OF SAINT PAUL TffiS AGREEMENT is made and entered into by and between the Metropolitan Council (the "Council") and the city of Saint Paul (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 WHEREA5, the Lendee is eligible to receive an Intlow/Infiltration Control Program Loan and has submitted an application for a such a loan; and WHEREA5, 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 conuactors to perform the Loan Project. However, the Lendee retains primary responsibility to the Council for performance of the Loan Project. 1.02 Material Representations. The Lendee agrees that alI representations contained in its application for loan assistance aze material representations of fact upon which the Council relied in awarding this loan and are incorporated in this agreement by reference. 1.03 Leadee Certification. Lendee certifies that the loan funds to be distributed pursuant to this agreement will be applied to the purposes stated in this agreement and that the Loan Project is cost effective. 1.04 Governing Body Resolutiou. Lendee will provide the Council with a copy of a resolution by its goveming body which authorizes the Lendee to enter into this agreement. IL AUTHORiZED USE OF LOAN PROCEEDS AND MATCHING F[JNDS 2.01 Authorized Uses. The Lendee is authorized to use the loan funds only in payment ofthe line item costs specified in Eachibit B, which is attached to and incorporated in this agreement. No other use of loan funds is pemutted. Loan and matching funds may be used only for costs directly associated with Loan Project activities. 2.02 Unauthorized Uses of Loan Proceeds. Loan funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or permit, license, or other authorization fees, unless specifieally approved in advance by the Councii. 2.03 Reversion of Uneapended Funds. All funds loaned by the Council under ttus ageement that have not been expended for the Loan Project during We Project Acfivity Period (as defined in section 6.01) will be repaid to the Council. 2.04 Project Equipment and Supplies. Loan and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property directly necessary to conduct the Loan Project. The Lendee will comply with the personal property management requirements described in paragraph 7.10 of this agreement. IIL LOAN AMOUNT, DISTRIBUTION, AND REPAYMENT 3.01 Total Loan Amount The Council will pay to the Lendee a Total Loan Amount of $40,000. Provided, however, that in no event will the Council's obligation under this agreement exceed the lesser of: a. the Totai I.oan Amount of $40,000; or, b. fifty percent (50%) of total Loan Project expenditures. The Council will bear no responsibility for cost overruns which may be incurred by the Lendee in performance of the Loan Project. 18- S�� z 1.02 Material Representations. The Lendee agrees that all representations contained in its application for loan assistance are material representations of fact upon which the Council relied in awarding this loan and are incorporated in this agreement by reference. 1.03 Lendee Certification. Lendee certifies that the loan funds to be distributed pursuant to this agreement will be applied to the purposes stated in this agreement and that the Loan Project is cost effective. 1.04 Governing Body Resolution. Lendee will provide the Council with a copy of a resolution by its goveming body which authorizes the Lendee to enter into this agreement. II. AUTHORIZED USE OF LOAN PROCEEDS ANp MATCHING FUNDS 2.01 Authorized Uses. The Lendee is authorized to use the loan funds only in payment of the line item costs specified in Exhibit B, which is attached to and incorporated in this agreement. No other use of loan funds is pemutted. Loan and matching funds may be used only for costs direcdy associated with Loan Project activities. 2.02 Unauthorized Uses of Loan Proceeds. Loan funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or pernvt, license, or other authorization fees, unless specifically approved in advance by the Council. 2.03 Reversion of Uneapended Funds. All funds loaned by the Council under this agreement that have not been expended for the Loan Pro}ect during the Pro,}ect Activity Period (as defined in section 6.01) will be repaid to the CouncIl. 2.04 Project Equipment and Supplies. Loan and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property directly necessary to conduct the Loan Project. The Lendee will comply with the personal property management requirements described in paragaph 7.10 ofthis ageement. II[. LOAN AMOUNT, DISTRIBUTION, AND REpAYMENT 3.01 Total Loan Amoun� The Council will pay to the Lendee a Total Loan Amount of $40,000. Provided, however, that in no event will the Council's obligation under this agreement exceed the lesser of• a. the Total Loan Amount of $40,000; or, b. fifty percent (50%) of totai Loan Project e�cpenditures. The Council will bear no responsibility for cost ovecruns which may be incurred by the Lendee in performance ofthe Loan Project. q�-sqY 3.02 T.endee'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 I.endee agrees to provide $40,000 in matching funds ("Lendee's Match") during the Project Activity Period. The I.endee 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 I.oan 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 pazagraphs 5.01 and 5.02, the Council will distribute to the Lendee the final payment of the remainder of the Total Loan Amount, refened to in this agreement as the "I,ater Principal." No payment will be made which would cause the Total I.oan 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 I.oan 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 five eu 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 I.oan Amount. b. Loan Repayment Schedule. Attached as E�ibit 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) wiii be made two months after the end of the Project Activity Period. 4 If any of the assumptions in the previous paragraph vary from the actual amounts or dates, the Council may make, or the Lendee may request, an adjustment of the Preliminary Loan Repayment Schedule to reflect the changed amounts or dates. In such case, the annual installment dates will be deterntined using the methodology set forth in section 3.04(c). Such an adjustment must be made or requested within six months of the actual Project Completion Date. In such event, the Council will provide Lendee with a revised schedule of loan repayment which will be considered the Permanent I.oan Repayment Schedule. If no adjustment in the schedule is made or requested within six months of the actual Project Completion Date, the Preliminary Loan Repayment Schedule will be the Permanent I.oan RepaymenY Schedule. The date on which each annual installment is due under the Loan Repayment Schedule is referred to in this agreement as an"Annual Installment Date." Lendee may repay the entire loan balance, with accrued interest to the date of payment, at any time. c. Schedule Adjustment For the purposes of ttris section the term °Anniversary Date" will be defined as follows: The last day of that month which is 12, 24, 36, 48, and 60 months after the Project Comple6on Date (as defined in Section 6.01) of the Loan Project. However, in the event the Loan Project is not completed before the end of the Project Activity Period, the end of the Project Activity Period will be considered the Project Completion Date for the purposes of this definition. If the Pretiminary Loan Repayment Schedule is adjusted pursuant to section 3.04(b), the first annual installment will be due on the first Anniversary Date and the remaining installments on each consecutive Acmiversazy Date thereafter until paid in full. d. Repaymeut Forgiveness. Repayment offhe amounts Ioaned is subject to the loan forgiveness provisions of Section 6.03. IV. ACCOUNI'ING AND RECORD REQUIItEME1VTS 4.01 Documentation of Project Costs and Income. All costs charged to the Loan Project, whether paid with loan proceeds or charged as the Lendee's match, must be supported by proper documentatioq including properly executed payrolls, time records, invoices, contracts, or vouchers, evidencing in detail the nahue and propriery of the charges. 4.02 Accounts and Records. The Lendee agrees to establish and maintain accurate, detailed, and complete separate accounts and records relating to the receipt and expenditure of all �$" 5 q� If any of the assumptions in the previous paragraph vary from the actual amounts or dates, the Council may make, or the Lendee may request, an adjustment of the Preliminary Loan Repayment Schedule to reflect the changed amounts or dates. In such case, the annual instatlment dates will be determined using the methodology set forth in section 3.04(c). Such an adjustment must be made or requested within six months of the actual Project Completion Date. In such event, the Council will provide Lendee with a revised schedule of loan repayment which will be considered the Permanent Loan Repayment Schedule. If no adjustment in the scheduie is made or requested within six months of the actual Project Completion Date, the Preliminary Loan Repayment Schedule will be the Permanent Loan Repayment Schedule. The date on which each annual installment is due under the Loan Repayment Schedule is referred to in this agreement as an"Annual Installment Date." Lendee may repay the entire loan balance, with accrued interest to the date of payment, at any time. c. Schedule Adjustment For the purposes ofthis section the term "Anniversary Date" will be defined as foilows: The last day of that month which is 12, 24, 36, 48, and 60 months after the Project Completion Date (as defined in Section 6.01) of the Loan Project. However, in the event the Loan Project is not completed before the end of the Project Activity Period, the end of the Project Activity Period will be considered the Project Compietion Date for the purposes of this definition. If the Preliminary Loan Repayment Schedule is adjusted pursuant to section 3.04(b), the first annual installment will be due on the first Anniversary Date and the remaining installments on each consecutive Anniversary Date thereafter until paid in full. d. Repayment Forgiveness. Repayment ofthe amounts loaned is subject to the loan forgiveness provisions of Section 6.03. IV. ACCOUNTING AND RECORD REQUIItEMENTS 4.01 Documentation of Project Costs and Income. All costs charged to the Loan Project, whether paid with loan proceeds or charged as the Lendee's match, must be supported by proper documentation, inctuding properly executed payrolls, time records, invoices, contracts, or vouchers, evidencing in detail the nature and propriety of the charges. 4.02 Accounts and Records. The Lendee agrees to establish and maintain accurate, detailed, and complete separate accounts and records relating to the receipt and expenditure of all ��-Sqy loan funds and the I.endee'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 fuil 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 lvfinn. 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 MONTTORING REQUII2EMENTS 5.01 Final Activity and Eapenditures 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 finat accounting of loan and matching expenditures. The final repoR must include a list of project personal property as required by paragraph 7.10. 5.02 Final Project Summary Repoct. 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 I.oan 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 I/I 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 1/I 6 sources, and a cost-benefit analysis of the Loan Project based on the estimated UI removed from the system. c. An acknowledgment of the requirement for Lendee certification under section 6.02 and the methods, including a schedule with dates and locations of inspections, to be used by the Lendee in maldng the certifications. d. Copies of reports, studies, inspections, ztc. made prior to the Loan Project, documenting the conditions of the system which lead to the project. 5.03 Content of Reports. The Lendee agrees to report completely and to provide the Council with any additional or follow-up information as may be requested by Council staff. 5.04 Other Monitoring Activities. To assist the Council in monitoring compliance wiYh the loan agreement, the Lendee agrees to attend Lendee meetings as requested by Council staff and to pemut site visits by Council sta� during business hours, upon reasonable notice. The Lendee agrees to submit to the Council a copy of any promotional information regarding the Loan Project dissenunated by the Lendee during the loan Period. 5.05 C6anged Conditions. The Lendee agrees to notify the Council immediately of any change in condirions, local law, or any other event that may affect the Lendee's ability to perform the Loan Project in accordance with the terms of this agreement. VL PROJECT ACTIVTI'Y pERIOD/LOAN FORGIVENESS PROVISIONS 6.01 Project Activity Period. The Project Activity Period will consist of the time period from March 26, I998 (the date this loan was awarded by the Council) until September 30, 1999. The Lendee agrees to substantially complete the Loan Project activities described in E�ibit A during the Project Activity Period. The Councii will not provide loan funds to the Lendee for any Loan Project activities taking place before, or after the end o� the Project Activity Period. The Loan Project will be considered substantially complete when it can be utilized for the purposes for which it is intended and such date is referred to in this agreement as the 'Project Completion Date." 6.02 Inflow/Infdtration Reduction Certifications. Lendee will provide the Council with a Certification of Project Performance 30 days before the first Annual Insta.11ment Date (as deSned in section 3.04(b)) and 30 days before each Annual Installment Date thereafter (through the fifth Annual Instailment Date). The Certificate of Performance will be signed by an engineer registered in the state ofMinnesota and wi2t certify that the inIIow and infiltration removed pursuant to the Loan Project have not retumed to the system during the twelve month period prior to said Certification. On the third and fifth Annual Installment Dates, along with the said Certification, Lendee will also provide the Council with physicai documentation supporting the Certification. Exlu'bit D contains additional specific certification requirements which Lendee agrees to implement. �S- 5�� sources, and a cost-benefit analysis of the I.oan Project based on the estimated UI removed from the system. c. An acknowledgment of the requirement for Lendee certification under section 6.02 and the methods, inciuding a schedule with dates and locations of inspections, to be used by the Lendee in making the certifications. d. Copies of reports, studies, inspections, etc. made prior to the Loan Project, documenting the conditions of the system which lead to the project. 5.03 Content of Reports. The Lendee agrees to report completely and to provide the Council with any additional or follow-up information as may be requested by Council staff, 5.04 Other Monitoring Activities. To assist the Council in monitoring compliance with the loan agreement, the Lendee agrees to attend Lendee meetings as requested by Council staff and to permit site visits by Council staff, during business hours, upon reasonable notice. The Lendee agrees to submit to the Council a copy of any promotional information regarding the Loan Project disseminated by the Lendee during the loan Period. 5.05 Changed Conditions. The Lendee agrees to notify the Council immediately of any change in conditions, local law, or any other event that may affect the Lendee's ability to perform the Loan Project in accordance with the terms of this agreement. VL PROJECT ACTIVITY PERIOD/LOAN FORGIVENESS PROVISIONS 6.01 Project Activity Period. The Project Activity Period will consist of the time period from March 26, 1998 (the date this loan was awarded by the Council) until September 30, 1999. The I,endee agrees to substantially complete the Loan Project activities described in Exhibit A during the Project Activity Period. The Council will not provide loan funds to the Lendee for any Loan Project activities taking place before, or after the end of, the Project Activity Period. The Loan Project will be considered substantially complete when it can be utilized for the purposes for which it is intended and such date is referred to in this agreement as the "Project Completion Date." 6.02 Inflow/Infiltration Reduction Certifications. Lendee will provide the Council with a Certification ofProject Performance 30 days before the first tlnnuai Installment Date (as defined in section 3.04(b)) and 30 days before each Annual Installment Date thereafter (through the fiRh Annual Installment Date). The Certificate of Performance will be signed by an engineer registered in the state of Nfinnesota and will certify that the inflow and infiliration removed pursuant to the Loan Project have not retumed to the system during the twelve month period prior to said Certification. On the third and fiRh Annual Installment Dates, along with the said Certificatioq Lendee will also provide the Council with physical documentation supporting the Certification. Exhibit D contains additional specific certification requirements which Lendee agrees to implement. �t� � 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 detemune its adequacy. The Council may request, and the Lendee will provide, additional informarion or documentation in order to carry out such review. a. Positive Determination. I� in the Council's sole discretion, it detemunes 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 Certificatioq 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 deternunes 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 eactension 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 detemunes 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. Altematively, Lendee may determine that it does not desire to pursue additionai 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 I,oan 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. 8 VII, GENERAL CONDTTIONS 7.01 Amendments. The terms of this agreement may be changed only by mutual agreement of the parties. Such changes wiII be effective only upon the execution of written amendments signed by authorized officers of the parties to this agreement. 7.02 Noncompliance by I.endee. If the Council finds that there has been a failure to comply with the provisions of this agreement, the Council may terminate the agreement at any time foltowing seven (7) days' written notice to the I.endee and upon failure of the I.endee to cure the default within the seven-day period. If the Council finds that the I.endee's noncompliance is willful and unreasonable, the Council may terminate or rescind this agreement and require the Lendee to immediately repay the loan funds in full or in a portion detemrined by the Council. Nothing herein will be construed so as to limit the Council's legal remedies to recover loan funds. 7.03 Unauthorized Use of Loan Proceeds. Upon a finding by Council staffthat the Lendee has made an unauthorized or undocumented use of loan proceeds, and upon a demand for repayment issued by the Council, the Lendee agrees to promptly repay such amounts to the Council. 7.04 Indemnification. The Lendee assumes liability for and agrees to defend, indemnify and hold harmless the Council, its members, officers, employees and agents, from and against all losses, damages, etcpenses, liability, claims, suits, or demands, including without limitation attorney's fees, arising out o� resulting from, or relating to the performance of this agreement by Lendee or I.endee's empioyees, agents, or subcontractors. 7.05 Public Data. The Lendee agrees that the results of the Loan Project, the reports submitted, and any new information or technology that is developed with the assistance of this loan is in the public domain and may not be copyrighted or patented. 7.06 Equal Employment Opportunity; Aftirmative Action. The Lendee agrees to comply with all applicable laws relating to nondiscrimination and affirmative action. In particular, the Lendee agrees not to discriminate against any employee, applicant for employment, or participant in this project because of race, color, creed, religioq national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation, or age; and further agrees to take action to enswe that applicants and empioyees are treated equally with respect to all aspects of employment, including rates of pay, selection for training, and other forms of compensation. 7.07 Acknowledgment. The Lendee will appropriately acknowledge the loan assistance made by the Council in any promotional materials, reports, and publications relating to the I,oan Project. > �� : VII. GENERAL CONDITIONS 7.01 Amendments. The terms of this agreement may be changed oniy by mutual agreement of the parties. Such changes will be effective only upon the execution of written amendments signed by authorized officers of the parties to this agreement. 7.02 Noncompliance by Lendee. If the Council finds that there has been a failure to comply with the provisions of this agreement, the Council may temunate the agreement at any time following seven (7) days' written notice to the Lendee and upon failure of the Lendee to cure the default within the seven-day period. If the Council finds that the Lendee's noncompliance is willful and unreasonable, the Council may terminate or rescind this agreement and require the I,endee to immediately repay the loan funds in full or in a portion detemuned by the Council. Nothing herein will be construed so as to limit the Council's legal remedies to recover loan funds. 7.03 Unauthorized Use of Loan Proceeds. Upon a finding by Council staff that the Lendee has made an unauthorized or undocumented use of loan proceeds, and upon a demand for repayment issued by the Council, the Lendee agrees to promptly repay such amounts to the Council. 7.04 Indemnificafion. The Lendee assumes liability for and agrees to defend, indemnify and hold harniless the Council, its members, officers, employees and agents, from and against all losses, damages, expenses, liability, claims, suits, or demands, including without limitation attomey's fees, azising out of, resulting &om, or relating to the performance of this agreement by Lendee or Lendee's employees, agents, or subcontractors. 7.05 Public Data. The Lendee agrees that the results of the Loan Project, the reports submitted, and any new information or technology that is developed with the assistance of this loan is in the public domain and may not be copyrighted or patented. 7.06 Equai Employment Opportunity; Affirmative Action. The Lendee agrees to comply with all applicable laws relating to nondiscrimination and affirmative action. In particulaz, the Lendee agrees not to discriminate against any employee, applicant for employment, or participant in this project because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation, or age; and further agrees to take action to ensure that applicants and employees are treated equally with respect to all aspects of employment, including rates of pay, selection for training, and other forms of compensatioa 7.07 Acknowledgmen� The Lendee will appropriately acknowledge the loan assistance made by the Council in any promotional materials, reports, and publications relating to the Loan Project. � �--59 `� 7.08 Compliance with Law. The Lendee agrees to conduct the Loan Project in compliance with all applicable provisions of federai, state, and local laws. 7.09 Permits and Approvals. The Lendee is responsible for obtaining all local and state pernnts, licenses, and authorizations necessary for the I.oan Pro}ect. 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 properiy 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 beazs 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 perfornung the project, whether by planned withdrawal, misuse, or casualty loss, the Lendee will immediately notify the CounciPs Loan Manager. Unless otherwise approved by the Council's Loan Manager, the Lendee will remit to the Councii a proportional amount of the fair market value of the item(s), if any, deternuned on the basis of the proportion of Council loan funds used to acquire the item(s). 7.11 Effect of Project Closeout The I,endee 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 retum any funds due to the Council as a result of later refunds, corrections, or other transactions. io IN k'ITNESS WHEREOF, the parties have caused this agreement to be executed by their duly authorized offic n tfie dates set forth below. This agreement is effective upon final execution by, and delive�p� Dafe Date LENDEE: CTTY OF SAINT PAUL � Name TiYle METROPOLTTAN COUNCII. � 7ames J. Solem Regional Administrator Approved as to form: Metropo&taa Council Office of General Counsel FIleNamr: _i_loan#Z Revision: 12/96 a�-s9y EXHIBIT A- PROJECT ACTIVITIES & SCOPE CTI'Y OF SAINT PAUL The project activities and scope proposed by the City of Saint Paul includes the relining of 2,187 feet of sanitary sewer pipe using cured-in-place pipe (CIPP). The sewer line relining will be done to 10 inch and 12 inch sewers located within Robie Sueet between Orleans Street and Winslow Avenue, and within Manomin Avenue between King Street and Cherokee Avenue. These pipes were observed to be leaking at various joints throughout the pipe segments. Activities within the project scope include: 1. Rehabilitation of approximately 2,187 linear feet of 10 and 12 inch VCP sewer pipe using a cured-in-place pipe (CIPP) liner. The repairs are located in sections of gipe beneath Robie Street and Winslow Avenue in the Southem area of the City near Cherokee Park. 2. Upon completion of all inspections, and review of inspection reports, a summary report will be prepazed. 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 Project activities will be conducted using a combination of City Staff personnel, and conuacted service vendors. �►�-sqy EXHIBIT B - PROJECT BUDGET CITY OF SAINT PAUL Total project as outlined in the City's project program activities has been estimated at $149,000. Of this amount the City proposes to finance 73% or $109,000 using City funds, and finance the remaining 27% using the $40,000 loan. Total project cost estimate is based on the lining of sanitary sewer segments using cured-in-place pipe liners. An itemized breakdown of the pro}ect costs have been summarized in a letter from the City, dated May 12, 1998 and is attached an hereby part of Exhibit B. (See attached summarized study cost letter) CITY OF SAINT PAUL Norm Co[eman. Mayor May 12, 1998 Mr. Kyle Colvin Senior Engineer Wastewater Services Department I:�etropelit2.n Council Environmental Services 230 Fifth Street Bast Saint Paul, Minnesota 55101-1633 DEPARTMENT OF PUBLIC WORKS � � — � q � Stacy M. Becker, Director Thomas J. Eggum. City Engineer Roger Puchreiter, Sewer Utiliry Manager 7000 Ciry Hal! Annes 25West Fowth Street (612) 2666234 Saint Pau[. MN 55102 FAX (612) 298-5621 12E: City of Saint Paul Loan for Inflow and Infiltration Control (Robie - Orleans to Winslow and Manomin - King to Cherokee) Deaz Mr. Colvin: Tt is my understanding that you are looking for additional information on the above mentioned project. The project will include instailing a Cured In Place Pipe (CIPP) liner in the existing piping system at approximately 45 locations on Saint Paul's West Side. Incidental to the actual project cost will be cleaning and taping the existing pipe including removina any mineial deposits at joints or service connections that s[ick into the pipe and video taping after the liner has been placed. The [otal estimated cost for the overali project, which is known as Ohio / Plate Relining Project, is: Construction Cost Engineering and Inspection (18.5%) TOTAL $1,079,000 200.000 � 1,279,000 The estimated cost for lining Robie, Orleans to Winslow and Manomin, King to Cherokee is: Construction Cos[ Engineering and Inspection (18.5%) TOTAL $126,000 23.000 $149 Please review this information and if you have any questions, contact me at 266-6149. Sincerely, . os h eller, . E. Sewer Utili[y JM:tl Respertsive Services • Qua(iry Facilirres • Employee Pride � � � � d r� � � � d � � a C as � a � � C .r � .� � L a t U ...i � W d � �O �a L' � � � O � O � � •V O � A U '� � � � O 0 3 � ° �� r-� � N �--� � � Q �i 0 .� f]. O U � � . � a i�7 V O� O V1 N C U C�� O o�o W o�o � , ❑ LQ ) � O m V) �/1 M � � N l0 � W V � � � O M O o0 0� O O O V O� y N N y ornrno�o� y ti O oo � V N ti �--� a� O l� O N� a v� V �n O vi O� O O O Q� .� O O� O� O� �O 00 O� .r M M M f�1 V V C N a � � � � � Vl V1 V1 h 7 O� O� O� O� Oi .-+ .-. .-.� .--i �--i. � � � b b 'V V V V 7 N G � a � � � � A � � Q� �Y.' W YI A 0 0 0 0 0 N 69 � � '. � N .-. 0o O .-+ N M � � � Q Q � � � � � � � � '. '. '. " '. .. � M M M M M � � � � � � N N N N N. '. '. '. '. .r Y � � � � d � � � � F � � � � � ,��,,S�a''S� a a�i � � � � � .n¢�¢�� Q .. N tn ' `�'V � � � .� N La � � ¢� W � Q � O � d u � z �L a d a O c`l I� O� �D O [� N N r� O h h 00 .+ � O V [� .-� �O O N V �n m O �O N o0 7 N .-. �--� �A M 00 O� O � C cV tn vi o0 tn •--� N N �--� 00 00 �O 7 N 00 V1 00 M \O N V Q� Q� M (V O o0 �D .-� h n h N � [ � I� Qi .r M M M M V � V V' 'cY V M W 00 00 W � (V N N N O� W W W W l� � h h N h V � R �t V 0 0 0 0 0 0 N 69 O 0 N M oo'-N�nv � Q � Q Q � � � � � � � c� " '. r, .. '. � M M M M M M � � � � � N N N N N '. .-. .-. .. .-. r-� d �! �+ �+ �„� � V �+ �+ � G G G � ' y •y ay � c ,r-,�S�S�S as m � � a � � p ¢ ¢ ¢ ¢ ¢ � A ai C b w'.�3 .r N tn '7 vl �� sqY V M O N � .� � C � m O M O � C �a m � � ° z 0 $ 0 � � U � O � � a � N � � H � � � � � a�-sqy EXHIBIT D - CERTIFICATION PROCESS PIPELINE REPAII2S PIPELINES The first and fifth year certification shall be based on findings resulting from an inspection of 100% of the sanitary sewer pipeline footage rehabilitated under the Loan Project. The second, third and forth year certification shall be based on findings resulting from an inspection of 33% of all sanitary sewer pipeline segments rehabilitated under the L,oan Project. If the Loan Project involves the rehabilitation of a single pipeline segment, then 100% of said segment shall be inspected in the second, third and fourth year certification. On the third and fi8h anniversary dates, along with said certification, Lendee shall also provide the Council with physical documentation supporting the certification in the form of visual inspection records of 100% of all pipeline segments requiring rehabilitation during the initial project. Prior to the community performing the certification inspections, the Council will be notified so that a representative from the Council has the opporiunity to be present during the inspections. All facilities to be inspected for certification shall be identified prior to the inspections and a list of said facilities along with a map showing their locations shall be sent to the Council for review and comment. Certification inspections shall be performed during periods when UI sources would typically be discharged into the system. In the event that any pipeline segment is found to be allowing excessive amounts of I/I into the sanitary system during the certification inspec[ions, and if that pipeline segment undergoes further rehabilitation to correct the situation, that segment shall be added to, and considered in addition to the list of pipeline segments for inspection for the following year's certification. ORIGINAL Presented by: Referred to: Committee c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 WHEREAS, the Metropolitan Council Environmental Services has offered Saint Paul a grant of $10,000 to fund a study to identify sources of inflow and infiltration (I&� of clean water into the Metropolitan Disposal System; and WHEI2EAS, Saint Paul is required under its NPDES pernut to conduct such studies to identify sources of I &I; and WHEREAS, the Metropolitan Council Environmental Services has offered Saint Paul a loan of $40,000 to fund a project that reduces this I&I; and WHEREAS, in 1998, as part of the Ohio / Plato Relining Project, Public Works will be repairing an old sanitary sewer that has excessive I&I; and WIIEREAS, if a funded project eliminates I&I in that sanitary sewer for a period of five years, the loan is forgiven. Therefore, be it RESOLVED, by the City of Saint Paul that Stacy Becker, Public Works Director, or her designee be authorized to execute the grant and loan agreements. Requested by Department of: Public Works By: ! / � Form Approved by City Attorney Adoption Certified by Council Secretary By: a- , r�7 � � Approved by M o: D Byc Council File ��0 =� � Green Sheet TM 62530 RESOLUTION CITY OF SAINT PAUL MINNESOTA 20 B ✓�Q��''^ �� — by Mayor ion to Council Adopted by Council: Date � � � s}V Works ..., ASSIGN ' NUMBERFOR ROVfING OFiDER S OF SIGNANRE PAGES � (CL1P ALL LOCAiIONS FOR SIGNANF� GREEN SHEET iNin v ATE PARTMENTDIRECTOR Y ATTORNEY 'Al G. 7• 9� -sy`t No. 624�0 INIT7AVDATE _ CIERK _ & MGT. SERVICES ACCOUM1TANT rove the attached resolution authorizuig the Director of Public Works to execute agreements accepting a 000 grant (see E�ibit A) and a$40,000 loan (see E�ibit B) from the Metropolitan Council to fund inflow infiltration projects. PLANNING COMMISSION CML $EiiVICE COMMISSION CIB COMMITTEE � STAFF _ _DISTRICTCOUNCIL _ SUPPORTS WHICH COUNCILO&)ECTIVE? PERSONAL SERVICE COMRACTS MUST ANSWERTHE FOLLOWIN6 DUESTIONS: �. Has Mis personfiiim ever worketl under a coMmcl for this department? YES NO 2. Has this persoNflrtn ever been a city employee? YES NO 3. Does this perso�rm possess a sltill not normally possessetl by any curtent city employee? YES NO Expiain all yes answers on separate sheet and attach to green sheet NITIATING PROBLEM, ISSUE, OPPORTUNITY (WHO. WHAT, WHEN, WHERE, NhiV): The Metropolitan Council has offered Saint Paul a grant of $10,000 to identify sources of inflow and inf'�ltration (I&I) of clean water into our sanitary sewer system. They have also offered Saint Paul a loan of $40,000 for a project that will eliminate I&I. This loan will be forgiven if the project successfully eliminates I&I for five yeazs. These projects aze already budgeted for this year. If we receive a grant or loan, it will reduce the cost to Saint Paul rate payers. �� none ��vo�3� €�c��c� ��'�� JU� � 7 ��g � � �, �,,�, ��,o �� -��-.:�s 6 DISADVANTAGES IF NOT APPROVED: Public Works will not be able to take advantage of essentially "free" money to finance projects already progratmned. TOTALAMOUNTOFTRANSACTION§ FUNDING SOURCE FlNANCIAL INFORMAiION: (EXPLAIN) sa,oDO, o0 �9UfiC!{ �@S@8fC�1 �',2(1$6� ,l�Pd 1 � i998 WST/REVENUE BUDGETED (CIRCLE ONE) YES ACRVITY NUMBER NO � qsr-sq`t E,ch � b �-� �� _1_ Contract No. C-3356 INFI,pW/INFILTRATION CONTROL PROGRAM GRANT AGREEMENT BETWEEN'I`HE METROPOLTTAN COUNCII� AND CITY OF SAINT PAUL THIS AGREEMENT is entered into by and between the Metropolitan Council (the "Council") and the City of Saint Paui (the "Grantee"), 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 ("UP') 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 grants to communities serviced by the Metropolitan Disposal System in order to fund studies aimed at identifying, locating, quantifying and developing action plans for the elimination of excessive community inflow and infiltration into the local sewer systems; and WHEREAS, it is in the best interests of the Grantee to reduce inflow and infikration into its local sewer system in order to increase capacity, reduce costs, and delay the necessity to undertake capital improvements; and WHEREAS, the Grantee is eligible to receive an InflowlInfiltration Control Program Grant and has submitted an application for a such a grant; and WHEREAS, the Council has reviewed the application and desues to assist the Grantee by the award of an Inflow/Infiltration Control Program Grant• NOW, THEREFORE, the Council and the Crrantee agree as follows: L GRAN'I'EE PERFORMANCE OF GRANT STUDY 1.01 Grant Study Activities. The Grantee agrees to perform and complete in a satisfactory and proper manner the study as described in the Grantee's application for gant assistance ("Grant Stud}�'), incorporated in this agreement by reference, and in accordance with the terms and conditions of this agreement. Specifically, the Grantee agrees to perform the study activities described in E�chibit A, which is attached to and incorporated in this agreement. After the Work Plan described in paragraph 5.01 has been approved by the Council, the Grantee agrees to conduct the Grant Study activities in compliance with the approved Work Plan. The Grantee may engage contrac�ors to perform the Grant Study with prior approval of the Council. However, the Grantee retains primary responsibility to the Council for performance of the Crrant Study. -2- 1.02 Material Representations. The Grantee agrees that all representations contained in its application for grant assistance aze material representations offact upon which the Council relied in awarding this grant and are incorporated in tlus agreement by reference. 1.03 Grantee Certification. Grantee certifies that the grant funds to be distributed pursuant to this agreement will be appiied to the purposes stated in this agreement. 1.04 Governing Body Resolution. Grantee will provide the Council with a copy of a resolution by its governing body which authorizes The GranYee to enter into this agreement. II. AUTHORIZED USE OF GRANT PROCEEDS AND MATCHIIVG P'UNDS 2.01 Authorized Uses. The Grantee is authorized to use the grant funds only in payment of the line item costs specified in Exhibit B, which is attached to and incorporated in this agreement. No other use of grant funds is permitted. Grant and matching funds may be used only for costs directly associated with Grant Study activities. Grant and matching funds may be used to prepare the Work Plan required by pazagraph 5.01 of this grant agreement. 2.02 Unauthorized Uses of Grant Proceeds. Grant funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or pemut, license, or other authorization fees, unless specifically approved in advance by the Council's authorized agent. 2.03 Reversion of Uneapended Funds. All funds granted by the Councit under this agreement that have not been expended for grant activities taking place during the Grant Study Activiry Period shalI revert to the Council. 2.04 Grant Study Equipment and Supplies. Grant and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property directly necessary to conduct the Grant Study. The Grantee will comply with the personal property management requirements described in paragraph 7.10 of this agreement. III. GRANT AMOUNT AND DISTRIBUTION 3.01 Totai Grant Amount The Council shall pay fo the Grantee a total grant amount of $10,000. Provided, however, that in no event will the Council's obligation under this agreement exceed the lesser of: a. the Total Grant Amount of $10,000; or, b. fifty percent (50°/a) of total Grant Study eacpenditures. The Council shall bear no responsibility for cost overruns which may be incuned by the Grantee in performance of the Grant Study. �$-sq� -2- 1.02 Material Representations. The Grantee agrees that all representations contained in its application for gant assistance are material representations of fact upon which the Council relied in awarding tkus grant and aze incorporated in this ageement by reference. 1.03 Grantee Certification. Grantee certifies that the grant funds to be distributed pursuant to this agreement will be applied to the purposes stated in this agreement. 1.04 Governing Body Resolution. Grantee will provide the Council with a copy of a resolution by its governing body which authorizes the Grantee to enter into this agreement. IL AUTHORIZED USE OF GRANT PROCEEDS AND MATCHING FUNDS 2.01 Authorized Uses. The Grantee is authorized to use the grant funds only in payment of the line item costs specified in E�ibit B, which is attached to and incorporated in this ageement. No other use of grant funds is permitted. Grant and matching funds may be used only for costs directly associated with Grant Study activities. Grant and matching funds may be used to prepare the Work Plan requ'ued by paragraph 5.01 of this grant agreement. 2.02 Unauthorized Uses of Grant Proceeds. Grant funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or pemvt, license, or other authorization fees, unless specifically approved in advance by the Council's suthorized agent. 2.03 Reversiop of Unezpended Funds. All funds granted by the Council under this agreement that have not been expended for grant activities taldng place during the Grant Study Activity Period shall revert to the Council. 2.04 Grant Study Equipment and Suppties. Grant and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property d'uectly necessary to conduct the Grant Study. The Grantee will comply with the personal property management requirements described in paragraph 7.10 of this agreement. IIL GRANT AMOUNT AND DISTRIBUTION 3.01 Tota! Grant Amoun� The Council shall pay to the Crrantee a total grant amount of $10,000. Provided, however, that in no event will the Council's obligation under ttus agreement exceed the lesser of: a. the Total Grant Amount of $10,000; or, b. fifty percent (50%) of total Grant Study expenditures. The Council shall bear no responsibility for cost overruns which may be incurred by the Grantee in performance of the Grant Study. �� -59`� -3- 3.02 Grantee's Match. The Grantee has an obligation under this grant agreement to share in the costs of the Grant Study by providing at least a fifty percent (50%) cash or in-kind match. Accordingly, the Grantee agrees to provide $10,000 in matching funds during the Grant Study Activity Period, in accordance with the Council's Guidelines and Application Materials dated December 1997 and incorporated in this agreement by reference. The Grantee 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 Totat Grant Amount. 3.03 Distribution of Grant Funds. Grant funds will be distributed by the Council according to the following schedule: a. � Upon commencement of the study funded by this grant, the Council will distribute to the Grantee fifty percent (50%) of the Total Crrant Amount. Upon approval of the final reports required by paragraphs 5.04 and 5.05, the Council will distribute to the Grantee the final payment of the remainder of the Total Grant Amount. No payment will be made which would cause the Total Grant Amount to exceed fifty (50%) of projected total Grant Study costs. No payment will be made if the Grantee 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 Grantee noncompliance with this agreement. IV. ACCOUNTING AND RECORD REQUIItEMENTS 4.01 Documentation of Grant Study Costs and Income. All costs charged to the Grant Study, whether paid with grant proceeds or charged as the Grantee's match, must be supported by proper documentation, including properly executed payrolls, time records, invoices, contracts, or vouchers, evidencing in detail the nature and propriety of the charges. 4.02 Accounts and Records. The Grantee agrees to establish and maintain accurate, detailed, and complete separate accounts and records relating to the receipt and expenditure of all grant funds and the Grantee's Match required by this agreement, including all Grant Study documents, financial records, supporting documentation, and the property records required by paragraph 7.10. These Grant Study accounts and records shall be retained intact by the Grantee for at least three (3) years following the end of the Grant Period set forth in section 6.02. These requirements shall survive closeout of the grant agreement. 4.03 Audit The Grantee 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 Grant Period; 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. -a- During the time of such maintenance, authorized representatives of the Council will have access to all such books, records, documents and evidence for the purpose of inspection, audit, and copying during normal business hours. The Grantee will provide proper facilities for such access and inspection. These requirements shall survive closeout ofthe grant agreement. V. REPORTING AND MONTTORING REQUIIZEMENTS 5.01 Work Plan. The Grantee shall prepare and submit a detailed work plan for Council approval within forty-five (45) days of execution of this grant agreement. The Work Plan shall be in the format specified by the Council and shall contain the level and types of information required by the Council. The Work Plan shall include the tasks to be undertaken together with schedules and costs, the sources and amount of the match to the grant, a detailed budget, and the individuals responsible for the tasks. 5.02 Summarp and Comparison Status ReporG Upon expenditure o£&fty percent (50%) of the projected totat eligible Grant Study costs, the Grantee must submit to the Council for review and approval a detailed summary of Grant Study expenditures and completed work activities, including a comparison of actual activities and expenditures against planned activities and projected expenditures. 5.03 Semi-annual Status Reports. For Grant Studies with an activity period over one (1) year, the Grantee must submit to the Council semi-annual reports on Grant Study activities and eacpenditures. The semi-annual reports must be in a format prescribed by the Council and aze due within thirty (30) days after the end of each siY-month period of the Grant Study activity period. Por studies with an activity period not exceeding one (1) year, the report required by paragraph 5.02 shall be deemed the semi-annual report. 5.04 Final Activity and Eapenditure Report. Upon completion of the Grant Study and not later than two (2) months after the end of the Crrant Activity Period, the Grantee must submit a final report for Council review and approval describing the activities and expenditures for the Grant Study and containing a final accounting of grant and matching eapenditures. The final report must include a list of Grant Study personal properry as required by pazagraph 7.10. 5.05 FiQa1 Findiugs Report. Upon complerion of the Grant Study and not later than two (2) months after the end of the Grant Activity Period, the Grantee must submit three (3) complete copies of a"Final Findings Report" for Council review and approval. The Findings Report shall contain at a nunimum the following information obtained during and as a result of the Grant Study: a. An overall summary of the investigative Grant Study swpe and activities. b. An overall summary of the investigation including an estimate of UI discovered within the study area, location(s) of UI sources within the study area and suspected areas outside the study area(s), a list of potential follow-up project(s) to reduce or eliminate UI sources, the cost of potential project(s), and a cost-benefit analysis of doing the potential project(s) listed. �1$'S9� ` �_ During the time of such maintenance, authorized representatives of the Council will have access to all such books, records, documents and evidence for the purpose of inspection, audit, and copying during normal business hours. The Grantee will provide proper facilities for such access and inspection. T'hese requirements shall survive closeout of the grant agreement. V. REPORTING AND MONTTORING REQUIREMENTS 5.01 Work Plan. The Grantee shall prepare and submit a detailed work plan for CouncIl approval within forty-five (45) days of execution of this grant agreement. The Work Plan shall be in the format specified by the Council and shall contain the level and types of information required by the Council. The Work Plan shall include the tasks to be undertaken together with schedules and costs, the sources and amount of the match to the grant, a detailed budget, and the individuals responsible for the tasks. 5.02 Summary and Comparison Status Report. Upon expenditure of fifty percent (50%) ofthe projected total eligi'ble Grant Study costs, the Grantee must submit to the Council for review and approval a detailed summary of Grant Study expenditures and completed work activities, including a comparison of actual activities and expenditures against planned activities and projected expenditures. 5.03 Semi-annuai Status Reports. For Grant Studies with an activity period over one (I) year, the Grantee must submit to the Council semi-annual reports on Grant Study activities and expenditures. The semi-annual reports must be in a format prescribed by the Council and aze due within thirty (30) days after the end of each six-month period of the Grant Study activity period. For studies with an activity period not exceeding one (1) yeaz, the report required by paragraph 5.02 shall be deemed the semi-annual report. 5.04 Final Activity and Eapenditure Report. Upon completion ofthe Grant Study and not later than two (2) months after the end of the Crrant Activity period, the Crrantee must submit a final report for Council review and approval describing the activities and expenditures for the Grant Study and containing a final accounting of grant and matching expenditures. The final report must include a list of Grant Study personal property as required by paragraph 7.10. 5.05 Final Findings Report. Upon completion of the Grant Study and not later than two (2) months after the end of the Grant Activity Period, the Grantee must submit three (3) complete copies of a"Final Findings Report" for Council review and approval. The Findings Report shall contain at a minimum the following information obtained during and as a result of the Grant Study: a. An overall summary of the investigative Grant Study scope and activities. b. An overall summary of the investigation inciuding an estimate of UI discovered within the study area, location(s) oFUI sources within the study area and suspected areas outside the study area(s), a_list ofpotential follow-up project(s) to reduce or eliminate UI sources, the cost of potential project(s), and a cost-benefit analysis of doing the potentiai project(s) listed. ° t � `1 -s- c. A schedule for doing follow-up project(s) within the study area aimed at reducing or eliminating sources of I/I and an indication of whether outside funding sources would be required by the Grantee in order to finance the project(s). 5.06 Content of Reports. The Grantee agrees to report completely and to provide the Council with any additional or follow-up information as may be requested by Council staff. 5.07 Other Monitoring Activities. To assist the Council in monitoring compliance with the grant agreement, the Grantee agrees to attend Grantee meetings as requested by Council staff and to pemut site visits by Council staff, during business hours, upon reasonable notice. The Grantee agrees to submit to the Council a copy of any promotional information regarding the Grant Study disseminated by the Grantee during the Grant Period. 5.08 Changed Conditions. The Grantee agrees to notify the Council immediately of any change in conditions, local law, or any other event that may affect the Grantee's ability to perform the Crrant Study in accordance with the terms of this agreement. VI. TINIII`IG REQUIItEMENTS 6.01 Grant Study Activity Period. The Grant Study Activity Period shall consist of the time period from March 1, 1998 or from the date this grant was awarded by the Council) until August 31, 1999 that date which is eighteen months after the date when this agreement is executed by both parties. The Crrantee agrees to complete the Grant Study activities descrihed in E�ibit A during the Study Activity Period. The Council will not provide grant funds to the Grantee for any Grant Study activities taking place before or after the end of the Study Activity Period. 6.02 Grant Period. The Grant Period shall extend from the date of final execution of this agreement to a date three (3) months following the end of the Study Activity Period, to pernut closeout of the grant agreement. VII, GENERAL CONDTTIONS 7.01 Amendments. The tenns of this agreement may be changed by mutual agreement of the parties. Such changes shall be effective only upon the execution of written amendments signed by authorized representatives of the Council and the Grantee. 7.02 Noncompiiance by Grantee. If the Council finds that there has been a failure to comply with the provisions of this agreement, the Council may terminate the agreement at any time following seven (7) days' written notice to the Grantee and upon failure of the Grantee to cure the default wit`hin the seven-day period. If the Council finds that the Crrantee's noncompliance is willful acid unreasonable, the Council may terminate or rescind this agreement and require the Grantee to repay the grant funds in full or in a portion detemuned by the Council. Nothing herein shall be construed so as to limit the Council's legal remedies to recover grant funds. � 7.03 Unauthorized Use of Grant Proceeds. Upon a finding by Council staffthat the Grantee has made an unauthorized or undocumented use ofgrant proceeds, and upon a demand for repayment issued by the Council, the Grantee agrees to promptly repay such amounts to the Council, 7.04 Indemnification. The Grantee assumes liability for, and agrees to indemnify, protect and hold harmless the Council, its members, officers, employees, and agents, &om any liabilities, obligations, losses, damages, claims, injuries, penalties, costs and e�cpenses, including reasonable attomey's fees, arising out of the performance of the Grant Study by Grantee or Grantee's empioyees, agents, or subcontractors. 7.05 Public Data. The Grantee agrees that the results of the Grant Study, the reports submitted, and any new information or technology that is developed with the assistance of tlus grant is in the public domain and may not be copyrighted or patented. 7.06 Equal Employment Opportunity; Affirmative Action. The Grantee agrees to comply with all applicable laws relating to nondiscrimination and affirmative action. In particular, the Grantee agrees not to discriminate against any employee, applicant for employment, or participant in this Grant Study because of race, color, creed, religioq sex, sexual orientation, marital status, status with regazd to public assistance, membership or activiry in a local civil rights coaunissioq disability, age, or national origin, and further agrees to take af�irmafive action so that applicants and employees are treated equally with respect to all aspects of employment and compensation. 7.07 Acknowledgment The Grantee shall appropriaiely acknowledge the grant assistance made by the Council in any promotional materials, reports, and publications relating to the Grant Study. 7.08 Compliance with Law. The Grantee agrees to conduct the Grant Study in compliance with all applicable provisions of Federal, state, and local laws. 7.09 Permits and ApprovaLs. The Grantee is responsible for obtaining all local and state permits, licenses, and authorizations necessary for the Crrant Study. 7.10 Personal Property Managemen� Title to all personal property acquired with grant or matching funds sha11 remain with the Grantee during the Grant Period. Accordingly, the Grantee shall take reasonable measures to protect and defend its tifle interest and shall keep the personal properry free and clear of any liens, encumbrances, or other claims. The Grantee must maintain property records that include, at a minimum, a description of the property, a serial or other identification number, tfie acquisirion date and cost, and the location, use, and condition of the property. In ttte finat report required by paragraph 5.04, the Grantee shall include a list of all personal property acquired with grant and matching funds which was not expended in performance of the`Crrant Study. At the end of the Grant Period, the Grantee agrees to transfer title to all personal property acquired in whole or in part with grant funds to the Council, at the Council's option, at no charge. The Council reserves the right to direct appropriate disposition of all personal properLy, acquired in whole or in part with grant funds, wluch has not been expended in performance of the Grant Study. 1$-�9� .�_ 7.03 Unauthorized Use of Grant Proceeds. Upon a Snding by Council staffthat the Grantee has made an unauthorized or undocumented use of grant proceeds, and upon a demand for repayment issued by the Council, the Grantee agrees to promptly repay such amounts to the Council. 7.04 Indemnification. The Grantee assumes liability for, and agrees to indemnify, protect and hold harmless the Council, its members, officers, employees, and agents, &om any liabilities, obligations, losses, damages, claims, injuries, penalties, costs and expenses, including reasonable attomey's fees, arising out of the perFonnance of the Grant Study by Cnantee or Crrantee's employees, agents, or subcontractors. 7.05 Public Data. The Grantee agrees that the results of the Crrant Study, the reports submitted, and any new information or technology that is developed with the assistance of this grant is in the public domain and may not be copyrighted or patented. 7.06 Equal Employment Opportunity; Aftirmative Action. The Grantee agrees to comply with all applicable laws relating to nondiscrimination and aflirmative action. In particular, the Grantee agrees not to discriminate against any employee, applicant for employment, or participant in this Grant Study because of race, color, creed, religioq se�c, sexual orientation, marital status, status with regard to public assistance, membership or activiry in a local civil rights commission, disability, age, or national origin, and further agees to take affirmative action so that applicants and employees are treated equally with respect to all aspects of employment and compensation. 7.07 Acknowledgmen� The Grantee shall appropriately acknowledge the grant assistance made by the Council in any promotional materials, reports, and publications relating to the Grant Study. 7.08 Compliance with Law. The Grantee agrees to conduct the Grant Study in compliance with all applicable provisions of Federal, state, and local laws. 7.09 Permits and Approvals. The Grantee is responsible for obtaining all local and state pemuts, licenses, and authorizations necessary for the Crrant Study. 7.10 Personat Property Management Title to all personal property acquired with grant or matching funds shall remain with the Grantee during the Grant Period. Accordingly, the Grantee shall take reasonable measures to protect and defend its title interest and shall keep the personal property free and clear of any liens, encumbrances, or other claims. The Grantee 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 5.04, the Grantee shall include a list of all personal properry acquired with gant and matching funds wtuch was not expended in performance of the Grant Study. At the end of the Grant Period, the Grantee agrees to uansfer title to ail personal property acquired in whole or in part with grant funds to the Council, at the Council's option, at no chazge. The Council reserves the right to direct appropriate disposition of all personal property, acquired in whole or in part with grant funds, which has not been expended in performance of the Grant Study. °l�-s�, y -�- During the Grant Period, the Grantee bears the risk of loss o� damage to, or destruction of any personal proQerty acquired with grant or matching funds. No such loss, damage, or destruction shall relieve the Grantee of its obligations under this agreement. The Grantee agrees to maintain personal properiy acquired with grant or matching funds in good operating order. If, during the Grant Study Activity Period, any Gc'ant Study personal property is not used in performing the Grant Study, whether by planned withdrawal, misuse, or casualty loss, the Grantee shall immediately notify the Council's authorized agent. Unless otherwise approved by the Council's authorized agent, the Grantee shall remit to the Council a proportional amount of the fair mazket value of the item(s), if any, determined on the basis of the proportion of Council grant funds used to acquire the item(s). 7.11 Effect of Grant Study Closeout. The Crrantee agrees that Grant Study closeout does not invalidate continuing obligations imposed on the Grantee by this agreement. Grant Study 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 Crrantee's obligation to return any funds due to the Council as a result of later refunds, corrections, or other transactions. - g- IN WITNESS WHF,$EOF, the parties have caused this agreement to be executed by their duly authorized represe��on the dates set forih below. GRANTEE• CITY OF SAINT PAUL Name: Its METROPOLTTAN COUNCII, Date: James 7. Solem, Regional Administrator Approved as to farm: Office of General Counsel AN 1_GRNI:WPp °t � -s� y EXHIBIT A- STUDY PROGRAM ACTIVITIES CTTY OF ST. PAUL The study program activities proposed by the city of St. Paul includes the installation of four temporary flow meters within portions of the City's sanitary sewer system which are tributary to sanitary sewer regulators. The City currently has 35 active regulators that have not been eliminated through the CSO program. The Study will utilize the temporary flow meters to identify and help locate sources of rain derived inflow. Once these sources can be identified, follow-up projects can be developed. Activities within the study area include: 1. Installation of up to four temporary flow meters within various sanitary sewer regulator service azeas within the City. 2. Collection of flow data at various sites for varying duration's. The intent of the temporary meters is to capture flow information during storm events and isolate sources of inflow. 3. �sual inspections of the sanitary sewer system to help identi£y the location of inflow into the system. The systematic flow monitoring of the regulator service azeas should provide focus areas in which City staff personnel can conduct in-field inspections to identify the specific source of the inflow. 4. Ugon completion of all data gathering and review of the information, a summary report will be prepared. Summary report is to include recommendations for prioritized UI sewer rehabilitation work. Study activities will be conducted using City Staff Personnel. q�-S�`1 EXHIBIT B - STUDY BUDGET CITY OF ST. PAUL Total study as outlined in the City's study program activities has been estimated to be $20,131. Of this amount the City proposes to finance 503% or $10,131 using City funds, and finance the remaining 49.7% using the $10,000 grant. An itemized breakdown of the study costs have been summarized in a table from the City, received with a letter dated Apri122, 1998 and is attached an hereby part of E�ibit B. (See attached summarized study cost table) "•� °l�"Sgy �,�h; 6 ��- .��,. ��-sq`t Contract No. C-3369 INgI,OW/�ILTRATION CONTROL PROGRAM LOAN AGREEMENT BETWEEN THE METROPOLTTAN COUNCII. AND CITY OF SAINT PAUL TffiS AGREEMENT is made and entered into by and between the Metropolitan Council (the "Council") and the city of Saint Paul (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 WHEREA5, the Lendee is eligible to receive an Intlow/Infiltration Control Program Loan and has submitted an application for a such a loan; and WHEREA5, 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 conuactors to perform the Loan Project. However, the Lendee retains primary responsibility to the Council for performance of the Loan Project. 1.02 Material Representations. The Lendee agrees that alI representations contained in its application for loan assistance aze material representations of fact upon which the Council relied in awarding this loan and are incorporated in this agreement by reference. 1.03 Leadee Certification. Lendee certifies that the loan funds to be distributed pursuant to this agreement will be applied to the purposes stated in this agreement and that the Loan Project is cost effective. 1.04 Governing Body Resolutiou. Lendee will provide the Council with a copy of a resolution by its goveming body which authorizes the Lendee to enter into this agreement. IL AUTHORiZED USE OF LOAN PROCEEDS AND MATCHING F[JNDS 2.01 Authorized Uses. The Lendee is authorized to use the loan funds only in payment ofthe line item costs specified in Eachibit B, which is attached to and incorporated in this agreement. No other use of loan funds is pemutted. Loan and matching funds may be used only for costs directly associated with Loan Project activities. 2.02 Unauthorized Uses of Loan Proceeds. Loan funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or permit, license, or other authorization fees, unless specifieally approved in advance by the Councii. 2.03 Reversion of Uneapended Funds. All funds loaned by the Council under ttus ageement that have not been expended for the Loan Project during We Project Acfivity Period (as defined in section 6.01) will be repaid to the Council. 2.04 Project Equipment and Supplies. Loan and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property directly necessary to conduct the Loan Project. The Lendee will comply with the personal property management requirements described in paragraph 7.10 of this agreement. IIL LOAN AMOUNT, DISTRIBUTION, AND REPAYMENT 3.01 Total Loan Amount The Council will pay to the Lendee a Total Loan Amount of $40,000. Provided, however, that in no event will the Council's obligation under this agreement exceed the lesser of: a. the Totai I.oan Amount of $40,000; or, b. fifty percent (50%) of total Loan Project expenditures. The Council will bear no responsibility for cost overruns which may be incurred by the Lendee in performance of the Loan Project. 18- S�� z 1.02 Material Representations. The Lendee agrees that all representations contained in its application for loan assistance are material representations of fact upon which the Council relied in awarding this loan and are incorporated in this agreement by reference. 1.03 Lendee Certification. Lendee certifies that the loan funds to be distributed pursuant to this agreement will be applied to the purposes stated in this agreement and that the Loan Project is cost effective. 1.04 Governing Body Resolution. Lendee will provide the Council with a copy of a resolution by its goveming body which authorizes the Lendee to enter into this agreement. II. AUTHORIZED USE OF LOAN PROCEEDS ANp MATCHING FUNDS 2.01 Authorized Uses. The Lendee is authorized to use the loan funds only in payment of the line item costs specified in Exhibit B, which is attached to and incorporated in this agreement. No other use of loan funds is pemutted. Loan and matching funds may be used only for costs direcdy associated with Loan Project activities. 2.02 Unauthorized Uses of Loan Proceeds. Loan funds cannot be used to purchase land, buildings, or other interests in real property, or to pay overhead or indirect costs, legal fees, or pernvt, license, or other authorization fees, unless specifically approved in advance by the Council. 2.03 Reversion of Uneapended Funds. All funds loaned by the Council under this agreement that have not been expended for the Loan Pro}ect during the Pro,}ect Activity Period (as defined in section 6.01) will be repaid to the CouncIl. 2.04 Project Equipment and Supplies. Loan and matching funds may be used to purchase or lease equipment, machinery, supplies, or other personal property directly necessary to conduct the Loan Project. The Lendee will comply with the personal property management requirements described in paragaph 7.10 ofthis ageement. II[. LOAN AMOUNT, DISTRIBUTION, AND REpAYMENT 3.01 Total Loan Amoun� The Council will pay to the Lendee a Total Loan Amount of $40,000. Provided, however, that in no event will the Council's obligation under this agreement exceed the lesser of• a. the Total Loan Amount of $40,000; or, b. fifty percent (50%) of totai Loan Project e�cpenditures. The Council will bear no responsibility for cost ovecruns which may be incurred by the Lendee in performance ofthe Loan Project. q�-sqY 3.02 T.endee'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 I.endee agrees to provide $40,000 in matching funds ("Lendee's Match") during the Project Activity Period. The I.endee 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 I.oan 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 pazagraphs 5.01 and 5.02, the Council will distribute to the Lendee the final payment of the remainder of the Total Loan Amount, refened to in this agreement as the "I,ater Principal." No payment will be made which would cause the Total I.oan 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 I.oan 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 five eu 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 I.oan Amount. b. Loan Repayment Schedule. Attached as E�ibit 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) wiii be made two months after the end of the Project Activity Period. 4 If any of the assumptions in the previous paragraph vary from the actual amounts or dates, the Council may make, or the Lendee may request, an adjustment of the Preliminary Loan Repayment Schedule to reflect the changed amounts or dates. In such case, the annual installment dates will be deterntined using the methodology set forth in section 3.04(c). Such an adjustment must be made or requested within six months of the actual Project Completion Date. In such event, the Council will provide Lendee with a revised schedule of loan repayment which will be considered the Permanent I.oan Repayment Schedule. If no adjustment in the schedule is made or requested within six months of the actual Project Completion Date, the Preliminary Loan Repayment Schedule will be the Permanent I.oan RepaymenY Schedule. The date on which each annual installment is due under the Loan Repayment Schedule is referred to in this agreement as an"Annual Installment Date." Lendee may repay the entire loan balance, with accrued interest to the date of payment, at any time. c. Schedule Adjustment For the purposes of ttris section the term °Anniversary Date" will be defined as follows: The last day of that month which is 12, 24, 36, 48, and 60 months after the Project Comple6on Date (as defined in Section 6.01) of the Loan Project. However, in the event the Loan Project is not completed before the end of the Project Activity Period, the end of the Project Activity Period will be considered the Project Completion Date for the purposes of this definition. If the Pretiminary Loan Repayment Schedule is adjusted pursuant to section 3.04(b), the first annual installment will be due on the first Anniversary Date and the remaining installments on each consecutive Acmiversazy Date thereafter until paid in full. d. Repaymeut Forgiveness. Repayment offhe amounts Ioaned is subject to the loan forgiveness provisions of Section 6.03. IV. ACCOUNI'ING AND RECORD REQUIItEME1VTS 4.01 Documentation of Project Costs and Income. All costs charged to the Loan Project, whether paid with loan proceeds or charged as the Lendee's match, must be supported by proper documentatioq including properly executed payrolls, time records, invoices, contracts, or vouchers, evidencing in detail the nahue and propriery of the charges. 4.02 Accounts and Records. The Lendee agrees to establish and maintain accurate, detailed, and complete separate accounts and records relating to the receipt and expenditure of all �$" 5 q� If any of the assumptions in the previous paragraph vary from the actual amounts or dates, the Council may make, or the Lendee may request, an adjustment of the Preliminary Loan Repayment Schedule to reflect the changed amounts or dates. In such case, the annual instatlment dates will be determined using the methodology set forth in section 3.04(c). Such an adjustment must be made or requested within six months of the actual Project Completion Date. In such event, the Council will provide Lendee with a revised schedule of loan repayment which will be considered the Permanent Loan Repayment Schedule. If no adjustment in the scheduie is made or requested within six months of the actual Project Completion Date, the Preliminary Loan Repayment Schedule will be the Permanent Loan Repayment Schedule. The date on which each annual installment is due under the Loan Repayment Schedule is referred to in this agreement as an"Annual Installment Date." Lendee may repay the entire loan balance, with accrued interest to the date of payment, at any time. c. Schedule Adjustment For the purposes ofthis section the term "Anniversary Date" will be defined as foilows: The last day of that month which is 12, 24, 36, 48, and 60 months after the Project Completion Date (as defined in Section 6.01) of the Loan Project. However, in the event the Loan Project is not completed before the end of the Project Activity Period, the end of the Project Activity Period will be considered the Project Compietion Date for the purposes of this definition. If the Preliminary Loan Repayment Schedule is adjusted pursuant to section 3.04(b), the first annual installment will be due on the first Anniversary Date and the remaining installments on each consecutive Anniversary Date thereafter until paid in full. d. Repayment Forgiveness. Repayment ofthe amounts loaned is subject to the loan forgiveness provisions of Section 6.03. IV. ACCOUNTING AND RECORD REQUIItEMENTS 4.01 Documentation of Project Costs and Income. All costs charged to the Loan Project, whether paid with loan proceeds or charged as the Lendee's match, must be supported by proper documentation, inctuding properly executed payrolls, time records, invoices, contracts, or vouchers, evidencing in detail the nature and propriety of the charges. 4.02 Accounts and Records. The Lendee agrees to establish and maintain accurate, detailed, and complete separate accounts and records relating to the receipt and expenditure of all ��-Sqy loan funds and the I.endee'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 fuil 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 lvfinn. 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 MONTTORING REQUII2EMENTS 5.01 Final Activity and Eapenditures 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 finat accounting of loan and matching expenditures. The final repoR must include a list of project personal property as required by paragraph 7.10. 5.02 Final Project Summary Repoct. 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 I.oan 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 I/I 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 1/I 6 sources, and a cost-benefit analysis of the Loan Project based on the estimated UI removed from the system. c. An acknowledgment of the requirement for Lendee certification under section 6.02 and the methods, including a schedule with dates and locations of inspections, to be used by the Lendee in maldng the certifications. d. Copies of reports, studies, inspections, ztc. made prior to the Loan Project, documenting the conditions of the system which lead to the project. 5.03 Content of Reports. The Lendee agrees to report completely and to provide the Council with any additional or follow-up information as may be requested by Council staff. 5.04 Other Monitoring Activities. To assist the Council in monitoring compliance wiYh the loan agreement, the Lendee agrees to attend Lendee meetings as requested by Council staff and to pemut site visits by Council sta� during business hours, upon reasonable notice. The Lendee agrees to submit to the Council a copy of any promotional information regarding the Loan Project dissenunated by the Lendee during the loan Period. 5.05 C6anged Conditions. The Lendee agrees to notify the Council immediately of any change in condirions, local law, or any other event that may affect the Lendee's ability to perform the Loan Project in accordance with the terms of this agreement. VL PROJECT ACTIVTI'Y pERIOD/LOAN FORGIVENESS PROVISIONS 6.01 Project Activity Period. The Project Activity Period will consist of the time period from March 26, I998 (the date this loan was awarded by the Council) until September 30, 1999. The Lendee agrees to substantially complete the Loan Project activities described in E�ibit A during the Project Activity Period. The Councii will not provide loan funds to the Lendee for any Loan Project activities taking place before, or after the end o� the Project Activity Period. The Loan Project will be considered substantially complete when it can be utilized for the purposes for which it is intended and such date is referred to in this agreement as the 'Project Completion Date." 6.02 Inflow/Infdtration Reduction Certifications. Lendee will provide the Council with a Certification of Project Performance 30 days before the first Annual Insta.11ment Date (as deSned in section 3.04(b)) and 30 days before each Annual Installment Date thereafter (through the fifth Annual Instailment Date). The Certificate of Performance will be signed by an engineer registered in the state ofMinnesota and wi2t certify that the inIIow and infiltration removed pursuant to the Loan Project have not retumed to the system during the twelve month period prior to said Certification. On the third and fifth Annual Installment Dates, along with the said Certification, Lendee will also provide the Council with physicai documentation supporting the Certification. Exlu'bit D contains additional specific certification requirements which Lendee agrees to implement. �S- 5�� sources, and a cost-benefit analysis of the I.oan Project based on the estimated UI removed from the system. c. An acknowledgment of the requirement for Lendee certification under section 6.02 and the methods, inciuding a schedule with dates and locations of inspections, to be used by the Lendee in making the certifications. d. Copies of reports, studies, inspections, etc. made prior to the Loan Project, documenting the conditions of the system which lead to the project. 5.03 Content of Reports. The Lendee agrees to report completely and to provide the Council with any additional or follow-up information as may be requested by Council staff, 5.04 Other Monitoring Activities. To assist the Council in monitoring compliance with the loan agreement, the Lendee agrees to attend Lendee meetings as requested by Council staff and to permit site visits by Council staff, during business hours, upon reasonable notice. The Lendee agrees to submit to the Council a copy of any promotional information regarding the Loan Project disseminated by the Lendee during the loan Period. 5.05 Changed Conditions. The Lendee agrees to notify the Council immediately of any change in conditions, local law, or any other event that may affect the Lendee's ability to perform the Loan Project in accordance with the terms of this agreement. VL PROJECT ACTIVITY PERIOD/LOAN FORGIVENESS PROVISIONS 6.01 Project Activity Period. The Project Activity Period will consist of the time period from March 26, 1998 (the date this loan was awarded by the Council) until September 30, 1999. The I,endee agrees to substantially complete the Loan Project activities described in Exhibit A during the Project Activity Period. The Council will not provide loan funds to the Lendee for any Loan Project activities taking place before, or after the end of, the Project Activity Period. The Loan Project will be considered substantially complete when it can be utilized for the purposes for which it is intended and such date is referred to in this agreement as the "Project Completion Date." 6.02 Inflow/Infiltration Reduction Certifications. Lendee will provide the Council with a Certification ofProject Performance 30 days before the first tlnnuai Installment Date (as defined in section 3.04(b)) and 30 days before each Annual Installment Date thereafter (through the fiRh Annual Installment Date). The Certificate of Performance will be signed by an engineer registered in the state of Nfinnesota and will certify that the inflow and infiliration removed pursuant to the Loan Project have not retumed to the system during the twelve month period prior to said Certification. On the third and fiRh Annual Installment Dates, along with the said Certificatioq Lendee will also provide the Council with physical documentation supporting the Certification. Exhibit D contains additional specific certification requirements which Lendee agrees to implement. �t� � 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 detemune its adequacy. The Council may request, and the Lendee will provide, additional informarion or documentation in order to carry out such review. a. Positive Determination. I� in the Council's sole discretion, it detemunes 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 Certificatioq 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 deternunes 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 eactension 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 detemunes 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. Altematively, Lendee may determine that it does not desire to pursue additionai 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 I,oan 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. 8 VII, GENERAL CONDTTIONS 7.01 Amendments. The terms of this agreement may be changed only by mutual agreement of the parties. Such changes wiII be effective only upon the execution of written amendments signed by authorized officers of the parties to this agreement. 7.02 Noncompliance by I.endee. If the Council finds that there has been a failure to comply with the provisions of this agreement, the Council may terminate the agreement at any time foltowing seven (7) days' written notice to the I.endee and upon failure of the I.endee to cure the default within the seven-day period. If the Council finds that the I.endee's noncompliance is willful and unreasonable, the Council may terminate or rescind this agreement and require the Lendee to immediately repay the loan funds in full or in a portion detemrined by the Council. Nothing herein will be construed so as to limit the Council's legal remedies to recover loan funds. 7.03 Unauthorized Use of Loan Proceeds. Upon a finding by Council staffthat the Lendee has made an unauthorized or undocumented use of loan proceeds, and upon a demand for repayment issued by the Council, the Lendee agrees to promptly repay such amounts to the Council. 7.04 Indemnification. The Lendee assumes liability for and agrees to defend, indemnify and hold harmless the Council, its members, officers, employees and agents, from and against all losses, damages, etcpenses, liability, claims, suits, or demands, including without limitation attorney's fees, arising out o� resulting from, or relating to the performance of this agreement by Lendee or I.endee's empioyees, agents, or subcontractors. 7.05 Public Data. The Lendee agrees that the results of the Loan Project, the reports submitted, and any new information or technology that is developed with the assistance of this loan is in the public domain and may not be copyrighted or patented. 7.06 Equal Employment Opportunity; Aftirmative Action. The Lendee agrees to comply with all applicable laws relating to nondiscrimination and affirmative action. In particular, the Lendee agrees not to discriminate against any employee, applicant for employment, or participant in this project because of race, color, creed, religioq national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation, or age; and further agrees to take action to enswe that applicants and empioyees are treated equally with respect to all aspects of employment, including rates of pay, selection for training, and other forms of compensation. 7.07 Acknowledgment. The Lendee will appropriately acknowledge the loan assistance made by the Council in any promotional materials, reports, and publications relating to the I,oan Project. > �� : VII. GENERAL CONDITIONS 7.01 Amendments. The terms of this agreement may be changed oniy by mutual agreement of the parties. Such changes will be effective only upon the execution of written amendments signed by authorized officers of the parties to this agreement. 7.02 Noncompliance by Lendee. If the Council finds that there has been a failure to comply with the provisions of this agreement, the Council may temunate the agreement at any time following seven (7) days' written notice to the Lendee and upon failure of the Lendee to cure the default within the seven-day period. If the Council finds that the Lendee's noncompliance is willful and unreasonable, the Council may terminate or rescind this agreement and require the I,endee to immediately repay the loan funds in full or in a portion detemuned by the Council. Nothing herein will be construed so as to limit the Council's legal remedies to recover loan funds. 7.03 Unauthorized Use of Loan Proceeds. Upon a finding by Council staff that the Lendee has made an unauthorized or undocumented use of loan proceeds, and upon a demand for repayment issued by the Council, the Lendee agrees to promptly repay such amounts to the Council. 7.04 Indemnificafion. The Lendee assumes liability for and agrees to defend, indemnify and hold harniless the Council, its members, officers, employees and agents, from and against all losses, damages, expenses, liability, claims, suits, or demands, including without limitation attomey's fees, azising out of, resulting &om, or relating to the performance of this agreement by Lendee or Lendee's employees, agents, or subcontractors. 7.05 Public Data. The Lendee agrees that the results of the Loan Project, the reports submitted, and any new information or technology that is developed with the assistance of this loan is in the public domain and may not be copyrighted or patented. 7.06 Equai Employment Opportunity; Affirmative Action. The Lendee agrees to comply with all applicable laws relating to nondiscrimination and affirmative action. In particulaz, the Lendee agrees not to discriminate against any employee, applicant for employment, or participant in this project because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation, or age; and further agrees to take action to ensure that applicants and employees are treated equally with respect to all aspects of employment, including rates of pay, selection for training, and other forms of compensatioa 7.07 Acknowledgmen� The Lendee will appropriately acknowledge the loan assistance made by the Council in any promotional materials, reports, and publications relating to the Loan Project. � �--59 `� 7.08 Compliance with Law. The Lendee agrees to conduct the Loan Project in compliance with all applicable provisions of federai, state, and local laws. 7.09 Permits and Approvals. The Lendee is responsible for obtaining all local and state pernnts, licenses, and authorizations necessary for the I.oan Pro}ect. 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 properiy 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 beazs 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 perfornung the project, whether by planned withdrawal, misuse, or casualty loss, the Lendee will immediately notify the CounciPs Loan Manager. Unless otherwise approved by the Council's Loan Manager, the Lendee will remit to the Councii a proportional amount of the fair market value of the item(s), if any, deternuned on the basis of the proportion of Council loan funds used to acquire the item(s). 7.11 Effect of Project Closeout The I,endee 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 retum any funds due to the Council as a result of later refunds, corrections, or other transactions. io IN k'ITNESS WHEREOF, the parties have caused this agreement to be executed by their duly authorized offic n tfie dates set forth below. This agreement is effective upon final execution by, and delive�p� Dafe Date LENDEE: CTTY OF SAINT PAUL � Name TiYle METROPOLTTAN COUNCII. � 7ames J. Solem Regional Administrator Approved as to form: Metropo&taa Council Office of General Counsel FIleNamr: _i_loan#Z Revision: 12/96 a�-s9y EXHIBIT A- PROJECT ACTIVITIES & SCOPE CTI'Y OF SAINT PAUL The project activities and scope proposed by the City of Saint Paul includes the relining of 2,187 feet of sanitary sewer pipe using cured-in-place pipe (CIPP). The sewer line relining will be done to 10 inch and 12 inch sewers located within Robie Sueet between Orleans Street and Winslow Avenue, and within Manomin Avenue between King Street and Cherokee Avenue. These pipes were observed to be leaking at various joints throughout the pipe segments. Activities within the project scope include: 1. Rehabilitation of approximately 2,187 linear feet of 10 and 12 inch VCP sewer pipe using a cured-in-place pipe (CIPP) liner. The repairs are located in sections of gipe beneath Robie Street and Winslow Avenue in the Southem area of the City near Cherokee Park. 2. Upon completion of all inspections, and review of inspection reports, a summary report will be prepazed. 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 Project activities will be conducted using a combination of City Staff personnel, and conuacted service vendors. �►�-sqy EXHIBIT B - PROJECT BUDGET CITY OF SAINT PAUL Total project as outlined in the City's project program activities has been estimated at $149,000. Of this amount the City proposes to finance 73% or $109,000 using City funds, and finance the remaining 27% using the $40,000 loan. Total project cost estimate is based on the lining of sanitary sewer segments using cured-in-place pipe liners. An itemized breakdown of the pro}ect costs have been summarized in a letter from the City, dated May 12, 1998 and is attached an hereby part of Exhibit B. (See attached summarized study cost letter) CITY OF SAINT PAUL Norm Co[eman. Mayor May 12, 1998 Mr. Kyle Colvin Senior Engineer Wastewater Services Department I:�etropelit2.n Council Environmental Services 230 Fifth Street Bast Saint Paul, Minnesota 55101-1633 DEPARTMENT OF PUBLIC WORKS � � — � q � Stacy M. Becker, Director Thomas J. Eggum. City Engineer Roger Puchreiter, Sewer Utiliry Manager 7000 Ciry Hal! Annes 25West Fowth Street (612) 2666234 Saint Pau[. MN 55102 FAX (612) 298-5621 12E: City of Saint Paul Loan for Inflow and Infiltration Control (Robie - Orleans to Winslow and Manomin - King to Cherokee) Deaz Mr. Colvin: Tt is my understanding that you are looking for additional information on the above mentioned project. The project will include instailing a Cured In Place Pipe (CIPP) liner in the existing piping system at approximately 45 locations on Saint Paul's West Side. Incidental to the actual project cost will be cleaning and taping the existing pipe including removina any mineial deposits at joints or service connections that s[ick into the pipe and video taping after the liner has been placed. The [otal estimated cost for the overali project, which is known as Ohio / Plate Relining Project, is: Construction Cost Engineering and Inspection (18.5%) TOTAL $1,079,000 200.000 � 1,279,000 The estimated cost for lining Robie, Orleans to Winslow and Manomin, King to Cherokee is: Construction Cos[ Engineering and Inspection (18.5%) TOTAL $126,000 23.000 $149 Please review this information and if you have any questions, contact me at 266-6149. Sincerely, . os h eller, . E. Sewer Utili[y JM:tl Respertsive Services • Qua(iry Facilirres • Employee Pride � � � � d r� � � � d � � a C as � a � � C .r � .� � L a t U ...i � W d � �O �a L' � � � O � O � � •V O � A U '� � � � O 0 3 � ° �� r-� � N �--� � � Q �i 0 .� f]. 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N tn ' `�'V � � � .� N La � � ¢� W � Q � O � d u � z �L a d a O c`l I� O� �D O [� N N r� O h h 00 .+ � O V [� .-� �O O N V �n m O �O N o0 7 N .-. �--� �A M 00 O� O � C cV tn vi o0 tn •--� N N �--� 00 00 �O 7 N 00 V1 00 M \O N V Q� Q� M (V O o0 �D .-� h n h N � [ � I� Qi .r M M M M V � V V' 'cY V M W 00 00 W � (V N N N O� W W W W l� � h h N h V � R �t V 0 0 0 0 0 0 N 69 O 0 N M oo'-N�nv � Q � Q Q � � � � � � � c� " '. r, .. '. � M M M M M M � � � � � N N N N N '. .-. .-. .. .-. r-� d �! �+ �+ �„� � V �+ �+ � G G G � ' y •y ay � c ,r-,�S�S�S as m � � a � � p ¢ ¢ ¢ ¢ ¢ � A ai C b w'.�3 .r N tn '7 vl �� sqY V M O N � .� � C � m O M O � C �a m � � ° z 0 $ 0 � � U � O � � a � N � � H � � � � � a�-sqy EXHIBIT D - CERTIFICATION PROCESS PIPELINE REPAII2S PIPELINES The first and fifth year certification shall be based on findings resulting from an inspection of 100% of the sanitary sewer pipeline footage rehabilitated under the Loan Project. The second, third and forth year certification shall be based on findings resulting from an inspection of 33% of all sanitary sewer pipeline segments rehabilitated under the L,oan Project. If the Loan Project involves the rehabilitation of a single pipeline segment, then 100% of said segment shall be inspected in the second, third and fourth year certification. On the third and fi8h anniversary dates, along with said certification, Lendee shall also provide the Council with physical documentation supporting the certification in the form of visual inspection records of 100% of all pipeline segments requiring rehabilitation during the initial project. Prior to the community performing the certification inspections, the Council will be notified so that a representative from the Council has the opporiunity to be present during the inspections. All facilities to be inspected for certification shall be identified prior to the inspections and a list of said facilities along with a map showing their locations shall be sent to the Council for review and comment. Certification inspections shall be performed during periods when UI sources would typically be discharged into the system. In the event that any pipeline segment is found to be allowing excessive amounts of I/I into the sanitary system during the certification inspec[ions, and if that pipeline segment undergoes further rehabilitation to correct the situation, that segment shall be added to, and considered in addition to the list of pipeline segments for inspection for the following year's certification.