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ITEM 3.4 Biosolids Land Application Agreement40 O&Y" o MINNESOTA Z DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Utilities Utility Manager, Neidermeier April 13, 2020 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty City Attorney Kendall 3.4 STRATEGIC VISION MEETS: THE CITY OF OTSEGO: Is a strong organization that is committed to leading the community through innovative communication. X Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City Staff recommends the City Council approve the Biosolids Land Application Agreement. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?- No No BACKGROUND/JUSTIFICATION: The City of St. Michael has requested the ability to dispose of biosolids from their Wastewater Treatment Facility within Otsego on an emergency basis. They were unable to land apply in recent years due to saturated clay soils resulting in an excess quantity for the fall 2020 application. St. Michael is requesting through agreement to identify and assist in permitting additional sites within Otsego, allowing the facility to catch up with their solids inventory. Staff feels this is a good cooperative effort and provides an equipment sharing opportunity in the future. Ordinance, Section 5-3 currently prohibits municipal land application of biosolids with exception of the City of Otsego's material. An amendment to this ordinance is being noticed for an April 27, Council approval to allow the biosolids application through Otsego permitted sites. The amendment provides a control method for the Utility Operations Staff with Type IV licensure to review Otsego's permitted land availability, proposed application rates for nutrient and metals concentration and assists with long term monitoring of the site. Nutrients and organics provided by municipal biosolids is a benefit to agricultural properties. SUPPORTING DOCUMENTS ATTACHED: 0 Biosolids Land Application Agreement POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve the Biosolids Land Application Agreement between the City of Otsego and the City of St. Michael. BUDGET INFORMATION FUNDING: ` BUDGETED: Per the Agreement, the City of St. Michael would be responsible for all costs of the permitting process. No BIOSOLIDS LAND APPLICATION AGREEMENT This Agreement is made this day of April, 2020 between the City of St. Michael, a Minnesota municipal corporation ("St. Michael") and the City of Otsego, a Minnesota municipal corporation ("Otsego"). RECITALS R1. St. Michael owns and operates a municipal wastewater treatment facility (the "Wastewater Treatment Facility"). R2. A by-product of the operation of the Wastewater Treatment Facility is a sewage sludge material that is acceptable and beneficial for recycling on agricultural land as a soil conditioner and nutrient source (the "Biosolids"). R3. A permit is required from the Minnesota Pollution Control Agency (the "MPCA") for the lawful land application of Biosolids. R4. St. Michael has received a permit from the MPCA for land application of Biosolids on certain land in St. Michael which generally has met all the needs of St. Michael except during periods of extreme rainfall seasons, which prevents St. Michael from applying Biosolids to agricultural fields that are saturated due to the nature of the clay soils present on St. Michael agricultural land. R5. St. Michael and Otsego will review new land site opportunities within Otsego that may be suitable for St. Michael when it needs to apply Biosolids on other agricultural fields because the permitted fields in St. Michael have become too saturated. R6. St. Michael has requested, and Otsego has agreed, that Otsego will apply for a permit from the MPCA to allow for the land application of St. Michael's Biosolids over and upon that certain property located in Otsego ("Permitted Land"), R7. St. Michael shall transfer to and apply upon the Permitted Land only Biosolids that originated and were generated from the operation of the St. Michael Wastewater Treatment Facility. NOW, THEREFORE, the parties agree as follows: Incorporation of Recitals. The Recitals set forth above are true and correct and are incorporated herein. 2. Application for MPCA Permit, Otsego shall apply to the MPCA for the permit necessary (the "Land Application Permit") to allow St. Michael's Biosolids to be spread over and upon the Permitted Land. St. Michael shall cooperate with and assist Otsego in the permit application process to ensure the Land Application Permit allows the application of the Biosolids over and upon the Permitted Land. 3. Payment of Permit Fees. St. Michael will pay the MPCA fees associated with Otsego's application for the Land Application Permit. 4. Transfer Authorization. Otsego shall be the holder of the Land Application Permit. St. Michael shall transfer and apply the Biosolids over and upon the Permitted Land only in compliance with all applicable Minnesota Pollution Control Agency ("MPCA") regulations and requirements. If any Biosolids from St. Michael fail to comply with any applicable MPCA regulations or requirements, St. Michael shall not transfer or apply any noncompliant Biosolids to the Permitted Land and Otsego may deny permission for St. Michael to transfer or apply any noncompliant Biosolids. Further, St. Michael shall (i) be responsible for all relevant Biosolids testing; (ii) complete all applicable MPCA reporting requirements, including without limitation specifying on St. Michael's Biosolids Annual Report the quantity of Biosolids transferred and applied to the Permitted Land and (iii) pay all transfer — related costs. 5. Emergency Application. Pursuant to the authority of the Land Application Permit St. Michael shall have the right to apply its Biosolids upon the Permitted Land in 2020 and thereafter on an emergency basis with the consent of Otsego. For purposes of this Agreement, an "emergency" is defined as consecutive years of above average rainfall as measured by the National Weather Service for the area of St. Michael which prevents St. Michael from being able to apply its Biosolids on the St. Michael permitted lands. 2 7. Otsego's Use of the Permitted Land. Otsego anticipates that starting in 2022 Otsego will utilize the Permitted Land for the application of its own Biosolids. Otsego may begin using the Permitted land prior to 2022 and at any time after the Land Application Permit is granted by the MPCA. St. Michael owns Biosolid spreading equipment, including two tractors and four spreaders (the "Biosolids Spreading Equipment"). St. Michael agrees that when it is not using its Biosolids Spreading Equipment for Biosolids land application, Otsego shall be allowed to use the St. Michael Biosolids Spreading Equipment for Otsego's own Biosolids land application, without cost to Otsego or compensation to St. Michael. However, notwithstanding the foregoing, Otsego shall reimburse St. Michael for the cost of repair or replacement of the Biosolids Spreading Equipment due to damage of said equipment caused by or during the use of said equipment by Otsego. 8. Mutual Indemnification. Subject to the terms of Paragraph 7 above, Otsego and St. Michael each agree to defend, indemnify, and hold harmless each other, their agents and employees, from and against legal liability for all claims, losses,damages, and expenses to the extent such claims, losses, damages, or expenses are caused by their negligent acts, errors, or omissions. In the event claims, losses, damages, or expenses are caused by the joint or concurrent negligence of Otsego and St. Michael, they shall be borne by each party in proportion to its own negligence. Otsego shall indemnify St. Michael against legal liability for damages arising out of claims by Otsego's employees. St. Michael shall indemnify Otsego against legal liability for damages arising out of claims by St. Michael's employees. Upon completion of all services, obligations, and duties provided for in this Agreement, or if this Agreement is terminated for any reason, the terms and conditions of this Mutual Indemnification clause shall survive. 3 9. Coordination of Biosolids Land Application Process. St. Michael and Otsego agree they shall confer and coordinate prior to the application of Biosolids upon the Permitted Land by either party, to assure that all MPCA Type IV requirements are met, including without limitation the review of quality and quantities of Biosolids materials. St. Michael shall notify Otsego at least three days prior to St. Michael's initiation of its Biosolids land application upon the Permitted Land. During this notice period, If Otsego determines that any MPCA Type IV requirements are not met, Otsego may deny the application of Biosolids upon the Permitted Land until all MPCA Type IV requirements are met. 10. Record Keeping St. Michael shall provide to Otsego daily load sheet copies, quantities and analytical information regarding all Biosolids applied to the Permitted Land. Otsego shall be responsible for its own records related to its own Biosolids application upon the Permitted Land. 11. Responsibility for Costs. Each of St. Michael and Otsego shall be responsible for all costs related to the transportation and application of its own Biosolids and all record keeping related therewith. 12. Term. The term of this Agreement shall remain effective for five (5) years from and after the date of the Land Application Permit. Thereafter, this Agreement shall automatically renew on an annual basis but may be terminated by either party upon 120 days prior written notice of termination given to the other party. above. IN WITNESS WHEREOF, the parties have signed this Agreement effective as set forth 4 (Signature Page to Biosolids Land Application Agreement) CITY OF ST. MICHAEL ME ATTEST: Steve Bot, City Administrator Kevin Kasel, Mayor CITY OF OTSEGO LN ATTEST: Adam Flaherty, City Administrator Jessica Stockamp, Mayor