3.10 Montgomery Farms Biosolids Agreement0
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DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Utilities
Utility Manager Neidermeier
October 24, 2022
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
Assistant City Administrator Hille
Cambell Knutson PA
3.10 — Class A EQ Distribution
Agreement
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 City Council approve Class A EQ Biosolids Distribution Agreement.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROUND/JUSTIFICATION:
Over 40 tons of Class A EQ Biosolids are produced each week through the Biosolids Building at the East
WWTF. The processed product is an excellent fertilizer for ag land, benefiting soil pH, crop nutrients and
organics. Montgomery Farms has been accepting this material since inception and requesting an
agreement be established to quantify a volume to support an equipment purchase that best applies the
material. The Agreement outlines a minimum distribution of 1,200 tons annually.
The agreement is supported by staff as Montgomery Farms has been a supporter of the product and
accommodating for year-round receipt and access within a reasonable distance for delivery. This is
beneficial to the City in maintaining low disposal costs and an alternate to landfilling.
Legal has established the agreement recommending consent approval. City Staff recommends the approval
of the agreement.
SUPPORTING DOCUMENTS ATTACHED:
• Agreement for Class A EQ Distribution
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to enter Class A EQ Distribution Agreement with Montgomery Farms.
BUDGET INFORMATION
FUNDING: BUDGETED:
NA NA
Agreement for Class A EQ Distribution.
AGREEMENT made and entered into this _13_day of October , 2022 by and
between the City of Otsego, a Minnesota municipal corporation located at 13400 90th St. NE,
Otsego, MN 55330 (the "City') and Montgomery Farms, LLC, a Minnesota limited liability
company located at (address). The City and Montgomery Farms, LLC may be referred to herein
individually as a "Party" or collectively as the "Parties"
The City of Otsego agrees to deliver a minimum of 1,200 tons of Class A EQ Biosolids to
Montgomery Farms, LLC (address) each calendar year beginning 2023 through 2027.
Montgomery Farms agrees to accept a minimum of 1,200 tons of Class A EQ Biosolids from the
City.
Quantities will be documented and communicated by Otsego Operations provided to
Montgomery Farms, LLC quarterly with corresponding material analysis.
Montgomery Farms, LLC agrees to provide safe and stable access for material deliveries by the
City or City contracted services to the addressed location or site within closer proximity to
product origination.
Independent Contractor Relationship. It is expressly understood that Montgomery Farms, LLC
is an "independent contractor" and not an employee of the City. Montgomery Farms, LLC shall
have control over the manner in which the Services are performed under this Agreement.
Montgomery Farms, LLC shall supply at its own expense, all materials, supplies, equipment, and
tools required to accomplish the Services contemplated by this Agreement. Montgomery Farms,
LLC shall not be entitled to any benefits from the City, including, without limitation, insurance
benefits, sick and vacation leave, workers' compensation benefits, unemployment compensation,
disability, severance pay, or retirement benefits. Nothing in this Agreement shall be deemed to
constitute a partnership, joint venture or agency relationship between the Parties.
Indemnification. To the fullest extent permitted by law, Montgomery Farms, LLC agrees to
defend, indemnify, and hold- harmless the City and its employees, officials, and agents from and
against all claims, actions, damages, losses, and expenses, including reasonable attorney fees,
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arising out of Montgomery Farms, LLC's negligence or Montgomery Farms, LLC's performance
or failure to perform its obligations under this Agreement. Montgomery Farms, LLC's
indemnification obligation shall apply to Montgomery Farms, LLC's subcontractor(s), or anyone
directly or indirectly employed or hired by Montgomery Farms, LLC, or anyone for whose acts
Montgomery Farms, LLC may be liable. Montgomery Farms, LLC agrees this indemnity
obligation shall survive the completion or termination of this Agreement.
Insurance. Montgomery Farms, LLC agrees to maintain commercial general liability insurance in
a minimum amount of $1,000,000 per occurrence; $2,000,000 annual aggregate. The policy shall
cover liability arising from premises, operations, products completed operations, personal injury,
advertising injury, and contractually assumed liability. The City shall be endorsed as additional
insured.
If unforeseen equipment failures, chemical shortages or site access prohibits Class A EQ
production or distribution neither parties shall be held responsible.
If this agreement is not successful as determined by either party termination can be effective
with 30-day notification.
Entire Agreement. This Agreement supersedes any prior or contemporaneous representations or
agreements, whether written or oral, between the Parties and contains the entire agreement.
Assignment. Montgomery Farms, LLC may not assign this Agreement to any other person
unless written consent is obtained from the City.
Amendments. Any modification or amendment of to this Agreement shall require a written
agreement signed by both Parties.
Governing Law. This Agreement shall be governed by and interpreted in accordance with the
laws of the State of Minnesota. All proceedings related to this Agreement shall be venued in
Wright County, Minnesota.
City of Otsego Representative Date Montgomery Farms Representative DateG//0
City of Otsego 113400 90TH Street NE I Otsego, MN 55330
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