Loading...
Item 3.7 Grant Agreement Perfluoroalkyl Substances PFAS Identification Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Utilities Utility Manager Neidermeier June 23,2025 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 3.7 – Grant 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 the City Council accept a grant award and approve a grant agreement. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: Utilities Department staff applied for and are being awarded grant funding through the Minnesota Pollution Control Agency’s Source Identification and Reduction Grant Program to assess Perfluoroalkyl Substances (PFAS) quantities within Otsego’s Municipal Wastewater. Funding from this grant will be used to sample and determine PFAS Levels in both the East and West Wastewater Treatment Facilities influent and biosolids materials. Support of $13,850 is available to complete up to 21 samples for a base assessment to accordingly to meet regulatory standards. SUPPORTING DOCUMENTS ATTACHED: • Grant Agreement POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve a Grant Agreement for Perfluoroalkyl Substances (PFAS) Identification in the amount of $13,850 between the State of Minnesota and City of Otsego and to authorize City staff to execute the document. BUDGET INFORMATION FUNDING: BUDGETED: Fund 602 – Sanitary Sewer Utility No. Cost impacts to be covered by the grant funding. Grant Agreement State of Minnesota SWIFT Number: 269652 Agency Interest ID: 106748 Activity ID: PRO20250001 This Grant Agreement is between the state of Minnesota, acting through its Commissioner of the Minnesota Pollution Control Agency, 520 Lafayette Road North, St. Paul, MN 55155-4194 (“MPCA” or “State”), and City of Otsego, 13400 90th Street NE, Otsego, MN 55374 ("Grantee" or “City”). Recitals 1. Under Minn. Stat. § 116.03, subd. 2, the State is empowered to enter into this grant. 2. The City is authorized to enter into this grant under Minn. Stat. § 412.211. 3. The State and City are in need of the Perfluoroalkyl Substances (PFAS) Identification 2025 (project). 4. Grantee will comply with required grants management policies and procedures set forth through Minn. Stat. § 16B.97, subd. 4(a)(1). 5. The Grantee represents that it is duly qualified and agrees to perform all services described in this grant agreement to the satisfaction of the State. Pursuant to Minn. Stat. § 16B.98, subd. 1, the Grantee agrees to minimize administrative costs as a condition of this grant. Grant Agreement 1. Term of Grant Agreement 1.1 Effective date: June 2, 2025, Per Minn. Stat.§16B.98, Subd. 5, the Grantee must not begin work until this grant contract is fully executed and the State's Authorized Representative has notified the Grantee that work may commence. Per Minn.Stat.§16B.98 Subd. 7, no payments will be made to the Grantee until this grant contract is fully executed. 1.2 Expiration date: December 18, 2026, or until all obligations have been satisfactorily fulfilled, whichever occurs first. 1.3 Survival of terms. The following clauses survive the expiration or cancellation of this grant agreement: Indemnification; State Audits; Government Data Practices and Intellectual Property; Publicity and Endorsement; Governing Law, Jurisdiction, and Venue; and Data Disclosure. 2. Grantee’s Duties The City will test and identify PFAS levels specific to each Wastewater Treatment facility including raw influent wastewater, thickened activated material and the final processed Biosolids. The resulting information will provide understanding of current PFAS levels and considerations of soil’s impact for agricultural reuse. The City will meet the reporting requirements as outlined in Clause 4.5 below. 3. Time The Grantee must comply with all the time requirements described in this grant agreement. In the performance of this grant agreement, time is of the essence. 4. Consideration and Payment 4.1 Consideration. The State will pay for all services performed by the Grantee under this grant agreement as follows: Docusign Envelope ID: F58D2E64-4A58-4EBA-BA17-E611B3A5B859 (a) Compensation. The MPCA will reimburse the Grantee according to approved invoices relating to the duties listed in Clause 2. The MPCA will review the expense documentation submitted by the Grantee for the costs and will reimburse the Grantee for reasonable and necessary expenditures, as determined by the MPCA. Grantee certifies they will provide no less than 10% (ten percent) of the total grant amount as cash match or in-kind services (b) Travel expenses. Reimbursement for travel and subsistence expenses actually and necessarily incurred by the Grantee as a result of this grant agreement will be provided to meet the duties listed in Clause 2; provided that the Grantee will be reimbursed for travel and subsistence expenses in the same manner and in no greater amount than provided in the current "Commissioner’s Plan” promulgated by the Commissioner of Minnesota Management and Budget (MMB). The Grantee will not be reimbursed for travel and subsistence expenses incurred outside Minnesota unless it has received the State’s prior written approval for out of state travel. Minnesota will be considered the home state for determining whether travel is out of state. (c) Total obligation. The total obligation of the State for all compensation and reimbursements to the Grantee under this grant agreement will not exceed $13,850.00 (Thirteen Thousand Eight Hundred Fifty Dollars and Zero Cents). 4.2 Payment (a) Invoices. The State will promptly pay the Grantee after the Grantee presents an itemized invoice for the services actually performed and the State’s Authorized Representative accepts the invoiced services. Invoices must be submitted timely and according to the following schedule: Invoices for expenses incurred to date may be submitted as frequently as monthly. The first invoice is required no later than 6 (six) months or midway through the project, whichever comes first. Email updates about the status of the project are required to be provided to the State’s Authorized Representative whenever an invoice is submitted to MPCA Accounts Payable. The State’s Authorized Representative will not approve an invoice through the state system without this project update. A final invoice for payment of remaining grant funds expended by the project is required to be submitted at the completion of the project after a final report has been submitted to the State’s Authorized Representative. Payment of the final 10% (ten percent) of grant funds will be held back until the project is completed satisfactorily and all deliverables have been submitted and approved. Invoices must be emailed to mpca.ap@state.mn.us, and contain the following information: • Name of Grantee • Grantee project manager • Invoice number • Invoice date • Paid in full receipts • MPCA project manager • SWIFT Number • Invoicing period (actual working period) • Prevailing Wage documentation If there is a problem with submitting an invoice electronically, please contact the Accounts Payable Unit at 651-757-2491. The Grantee shall submit an invoice for the final payment upon submittal of the final progress and financial report within 15 (fifteen) days of the original or amended end date of this grant agreement. The State reserves the right to review submitted invoices after 15 (fifteen) days and make a determination as to payment. (b) Unexpended Funds. The Grantee must promptly return to the State any unexpended funds that have not been accounted for annually in a financial report to the State due at grant closeout. Docusign Envelope ID: F58D2E64-4A58-4EBA-BA17-E611B3A5B859 4.3 Contracting and Bidding Requirements Per Minn. Stat. §471.345, grantees that are municipalities as defined in Subd. 1 must follow the law. (a) For projects that include construction work and have a total project cost of $25,000 or more, prevailing wage rules apply per Minn. Stat. §§177.41 through 177.44. These rules require that the wages of laborers and workers should be comparable to wages paid for similar work in the community as a whole. (b) The grantee must not contract with vendors who are suspended or debarred in MN: https://mn.gov/admin/osp/government/suspended-debarred/index2.jsp. 4.4 Reporting Requirements If the project is not completed within one year from effective date, annual progress reports are due to the MPCA each year based on the effective date of this agreement. Grantee is required to submit a final report that includes, but is not limited to, a detailed summary of activities completed, estimated and actual concentrations of PFAS identified and/or removed, and overall results of the project once completed. The final report is due 90 days after completion of the activities, or by the expiration date of this agreement, whichever occurs first. Final 10% (ten percent) reimbursement of the grant funding will be held until the report is received by the MPCA. 5. Conditions of Payment All services provided by the Grantee under this grant agreement must be performed to the State’s satisfaction, as determined at the sole discretion of the State’s Authorized Representative/MPCA’s Project Manager and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Grantee will not receive payment for work found by the State to be unsatisfactory or performed in violation of federal, state, or local law. 6. Authorized Representative The State's Authorized Representative/Project Manager is Austin Dehn, 525 Lake Avenue South, Suite 400, Duluth, MN 55802, 218-302-6683, austin.dehn@state.mn.us, or their successor, and has the authority to monitor the Grantee’s performance and to accept the services provided under this agreement. If the services are satisfactory, the MPCA’s Project Manager will certify acceptance of each invoice submitted for payment. The Grantee’s Authorized Representative is Seth Wilkes, 13400 90th Street NE, Otsego, MN 55374, 763-913-4066, SWilkes@otsegomn.gov, or their successor. If the Grantee’s Authorized Representative changes at any time during this grant agreement, the Grantee must immediately notify the State. 7. Assignment, Amendments, Change Orders, Waiver, and Grant Agreement Complete 7.1 Assignment. The Grantee shall neither assign nor transfer any rights or obligations under this grant agreement without the prior written consent of the State, approved by the same parties who executed and approved this grant agreement, or their successors in office. 7.2 Amendments. Any amendments to this grant agreement must be in writing and will not be effective until it has been executed and approved by the same parties who executed and approved the original grant agreement, or their successors in office. 7.3 Change orders. If the State's Project Manager or the Grantee’s Authorized Representative identifies a change needed in the workplan and/or budget, either party may initiate a Change Order using the Change Order Form provided by the MPCA. Change Orders may not delay or jeopardize the success of the Project, alter the overall scope of the Project, increase or decrease the overall amount of the Contract/Agreement, or cause an extension of the term of this Agreement. Major changes require an Amendment rather than a Change Order. The Change Order Form must be approved and signed by the State's Project Manager and the Grantee’s Authorized Representative in advance of doing the work. Documented changes will then become an integral and enforceable part of the Agreement. The MPCA has the sole discretion on the determination of whether a requested change is a Change Order or an Amendment. The state reserves the right to refuse any Change Order requests. Docusign Envelope ID: F58D2E64-4A58-4EBA-BA17-E611B3A5B859 7.4 Waiver. If the State fails to enforce any provision of this grant agreement, that failure does not waive the provision or the State’s right to enforce it. 7.5 Grant agreement complete. This grant agreement contains all negotiations and agreements between the State and the Grantee. No other understanding regarding this grant agreement, whether written or oral, may be used to bind either party. 8. Indemnification The Grantee must indemnify, save, and hold the State, its agents, and employees harmless from any claims or causes of action, including attorney’s fees incurred by the State, arising from the performance of this grant agreement by the Grantee or the Grantee’s agents or employees. This clause will not be construed to bar any legal remedies the Grantee may have for the State's failure to fulfill its obligations under this grant agreement. 9. State Audits Under Minn. Stat. § 16B.98, subd.8, the Grantee’s books, records, documents, and accounting procedures and practices of the Grantee or other party relevant to this grant agreement or transaction are subject to examination by the State and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end of this grant agreement, receipt and approval of all final reports, or the required period of time to satisfy all state and program retention requirements, whichever is later. 10. Government Data Practices and Intellectual Property 10.1 Government data practices. The Grantee and State must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by the State under this grant agreement, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Grantee under this grant agreement. The civil remedies of Minn. Stat. § 13.08 apply to the release of the data referred to in this clause by either the Grantee or the State. If the Grantee receives a request to release the data referred to in this Clause, the Grantee must immediately notify the State. The State will give the Grantee instructions concerning the release of the data to the requesting party before the data is released. The Grantee’s response to the request shall comply with applicable law. 10.2 Intellectual property rights (a) Intellectual property rights. The State owns all rights, title and interest in all of the intellectual property rights, including copyrights, patents, trade secrets, trademarks, and service marks in the Works and Documents created and paid for under this grant agreement. Works means all inventions, improvements, discoveries (whether or not patentable), databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings specifications, materials, tapes, and disks conceived, reduced to practice, created or originated by the Grantee, its employees, agents, and subcontractors, either individually or jointly with others in the performance of this grant agreement. Works includes “Documents.” Documents are the originals of any databases, computer programs, reports, notes studies, photographs, negatives, designs, drawings, specifications, materials, tapes, disks, or other materials, whether in tangible or electronic forms, prepared by the Grantee, its employees, agents, or subcontractors, in the performance of this grant agreement. The Documents shall be the exclusive property of the State and all such Documents must be immediately returned to the State by the Grantee, at the Grantee’s expense, upon the written request of the State, or upon completion, termination, or cancellation of this grant agreement. To the extent possible, those Works eligible for copyright protection under the United States’ Copyright Act will be deemed to be “works made for hire.” The Grantee assigns all right, title, and interest it may have in the Works and the Documents to the State. The Grantee must, at the request of the State, execute all papers and perform all other acts necessary to transfer or record the State’s ownership interest in the Works and Documents. (b) Obligations. (1) Notification. Whenever any invention, improvement, or discovery (whether or not patentable) is made or conceived for the first time or actually or constructively reduced to practice by the Grantee, including its employees and subcontractors, in the performance of this grant agreement, the Grantee Docusign Envelope ID: F58D2E64-4A58-4EBA-BA17-E611B3A5B859 shall immediately give the State’s Authorized Representative written notice thereof, and must promptly furnish the Authorized Representative with complete information and/or disclosure therein. (2) Representation. The Grantee must perform all acts, and take all steps necessary to ensure that all intellectual property rights in the Works and Documents are the sole property of the State, and that neither Grantee nor its employees, agents, or subcontractors retain any interest in and to the Works and Documents. The Grantee represents and warrants that the Works and Documents do not and will not infringe upon any intellectual property rights of other persons or entities. Notwithstanding Clause Liability, the Grantee shall indemnify, defend, to the extent permitted by the Attorney General, and hold harmless the State, at the Grantee’s expense, from any action or claim brought against the State to the extent that it is based on a claim that all or part of the Works or Documents infringe upon the intellectual property rights of others. The Grantee will be responsible for payment of any and all such claims, demands, obligations, liabilities, costs, and damages, including, but not limited to, attorney fees. If such a claim or action arises or in Grantee’s or the State’s opinion is likely to arise, the Grantee must, at the State’s discretion, either procure for the State the right or license to use the intellectual property rights at issue or replace or modify the allegedly infringing Works or Documents as necessary and appropriate to obviate the infringement claim. This remedy of the State will be in addition to and not exclusive of other remedies provided by law. (3) License. The State hereby grants a limited, no-fee, noncommercial license to the Grantee to enable the Grantee’s employees engaged in research and scholarly pursuits to make, have made, reproduce, modify, distribute, perform, and otherwise use the Works, including Documents, for research activities or to publish in scholarly or professional journals, provided that any existing or future intellectual property rights in the Works or Documents (including patents, licenses, trade or service marks, trade secrets, or copyrights) are not prejudiced or infringed upon, that the Minnesota Data Practices Act is complied with, and that individual rights to privacy are not violated. The Grantee shall indemnify and hold harmless the State for any claim or action based on the Grantee’s use of the Works or Documents under the provisions of Clause 10.2(b)(2). Said license is subject to the State’s publicity and acknowledgement requirements set forth in this grant agreement. The Grantee may reproduce and retain a copy of the Documents for research and academic use. The Grantee is responsible for security of the Grantee’s copy of the Documents. A copy of any articles, materials or documents produced by the Grantee’s employees, in any form, using or derived from the subject matter of this license, shall be promptly delivered without cost to the State. 11. Workers’ Compensation The Grantee certifies that it is in compliance with Minn. Stat. § 176.181, subd. 2, pertaining to workers’ compensation insurance coverage. The Grantee’s employees and agents will not be considered State employees. Any claims that may arise under the Minnesota Workers’ Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the State’s obligation or responsibility. 12. Governing Law, Jurisdiction, and Venue Minnesota law, without regard to its choice-of-law provisions, governs this grant agreement. Venue for all legal proceedings out of this grant agreement, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 13. Termination 13.1 Termination by the State. (a) Without Cause. The State may immediately terminate this grant agreement without cause, upon 30-days’ written notice to the Grantee. Upon termination, the Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed. (b) With Cause. The State may immediately terminate this grant agreement if the State finds that there has been a failure to comply with the provisions of this grant agreement, that reasonable progress has not been made or that the purposes for which the funds were granted have not been or will not be fulfilled. Docusign Envelope ID: F58D2E64-4A58-4EBA-BA17-E611B3A5B859 The State may take action to protect the interests of the state of Minnesota, including the refusal to disburse additional funds and requiring the return of all or part of the funds already disbursed. 13.2 Termination by The Commissioner of Administration. The Commissioner of Administration may immediately and unilaterally cancel this grant contract agreement if further performance under the agreement would not serve agency purposes or is not in the best interest of the State. 13.3 Termination for insufficient funding. The State may immediately terminate this grant agreement if: (a) It does not obtain funding from the Minnesota Legislature. (b) Or, if funding cannot be continued at a level sufficient to allow for the payment of the services covered here. Termination must be by written or fax notice to the Grantee. The State is not obligated to pay for any services that are provided after notice and effective date of termination. However, the Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed to the extent that funds are available. The State will not be assessed any penalty if the agreement is terminated because of the decision of the Minnesota Legislature, or other funding source, not to appropriate funds. The State must provide the Grantee notice of the lack of funding within a reasonable time of the State’s receiving that notice. 14. Data Disclosure Under Minn. Stat. § 270C.65, subd. 3, and other applicable law, the Grantee consents to disclosure of its social security number, federal employer tax identification number, and/or Minnesota tax identification number, already provided to the State, to federal and state tax agencies and state personnel involved in the payment of state obligations. These identification numbers may be used in the enforcement of federal and state tax laws which could result in action requiring the Grantee to file state tax returns and pay delinquent state tax liabilities, if any. 15. Payment to subcontractors (if applicable) As required by Minn. Stat. § 16A.1245, the prime contractor must pay all subcontractors, less any retainage, within 10 calendar days of the prime contractor's receipt of payment from the State for undisputed services provided by the subcontractor(s) and must pay interest at the rate of one and one-half percent per month or any part of a month to the subcontractor(s) on any undisputed amount not paid on time to the subcontractor(s). 16. Publicity and Endorsement 16.1 Publicity. Any publicity regarding the subject matter of this grant contract must identify the State as the sponsoring agency and must not be released without prior written approval from the State’s Authorized Representative. For purposes of this provision, publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Grantee individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this grant contract. All projects primarily funded by state grant appropriations must publicly credit the State of Minnesota, including on the grantee’s website when practicable. 16.2 Endorsement. The Grantee must not claim that the State endorses its products or services. Docusign Envelope ID: F58D2E64-4A58-4EBA-BA17-E611B3A5B859 FY21 Grant Contract Agreement Template for Individual: Updated June 2020 7 Signatures Title Name Signature Date \t1\ \n1\ \s1\ \d1\ \t2\ \n2\ \s2\ \d2\ \t3\ \n3\ \s3\ \d3\ \t4\ \n4\ \s4\ \d4\ \t5\ \n5\ \s5\ \d5\ \t6\ \n6\ \s6\ \d6\ Admin ID \a1\ Docusign Envelope ID: F58D2E64-4A58-4EBA-BA17-E611B3A5B859 June 2, 2025Encumbrance Verification Dominic Littleton Seth Wilkes