ITEM 2 Water and Wastewater Operations contractot
TY 0 C1 e F 0
MINN8SOTA g
Ili EMOISA NDUM
TO: Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: April 4, 2013
SUBJECT: Utility Operations Contract
As you know, the current contract with PeopleService, Inc. for operation of the water and
wastewater utilities expires on July 1, 2013, and to preserve the City's options PeopleService
was given notice of termination by the City. A new contract proposal was requested and
received from PeopleService.
The Council appointed committee of Council ember Vern Heidner, Finance Director Gary
Groen, and I reviewed the proposal which is attached for your reference. PeopleService"s
proposed contract is essentially consistent with the current contract: It has a five year term,
includes pass through payment for chemicals and maintenance with a true up at year end, the
contract amount increases annually by the consumer price index (CPI), and the base amount
from 2013 increases by the CPI for the new contract period beginning July 1, 2013. The only
adjustment is a language change reducing the requirement that the City spend 700 hours of
City staff time on utility system maintenance. Our interpretation of this change is that it is
insignificant to the actual outcome because the contract still requires assistance for certain
functions and the 700 hours was an arbitrary number that was not reflective of the actual hours
needed, which were less than 700, to perform the work functions originally intended for the
City to provide under that clause.
Upon review of the contract the committee recommends that the City propose a counter offer
to PeopleService while simultaneously advertising for staff to operate the utility systems.
Under either option, the committee's recommendation is that up to three of the operators (the
lead operator and one class D, C, or B operator) are City employees. Those employees may
start prior to expiration of the contract to allow for training and a smooth transition.
Below is the recommended counter proposal to PeopleService:
I. Section 1,4: Changed toeliminate payment of$S2L65GtoPeopleServicefor
maintenance and repair expenses. All maintenance and repair expenses will bepaid
directly hmthe City.
2. Section 1.7: Eliminate reference to PoopleService "will supervise all financial
transactions" pertaining tothe dav'o'dayoperation ofthe Facilities.
3. Section 4.1: Reduced ioaccount for reduction oftwo operators (less than class A\and
one class /\operator. The City will hire uptotwo operators (less than class f\)and one
class A operator to assist PeopleService with operation and maintenance per the
4. Section 4.3: Delete. All chemicals will be paid directly by the City.
5. Section 5.1: The tertn of the agreement shall be one (1) year.
In conclusion, consistent with the City's strategic goal of evaluating all operations for
effectiveness and efficiency, this contract )sunder review. The renewal contract offered hm
peop|eService|sconsistent with the previous contract and does not improve efficiency or
effectiveness either through staffing O[cost adjustments. The City 18prepared and capable of
staffing the utility operations to increase efficiency for the benefit of the rate payers if the
Council so chooses.
1A
-rofessionals
3/13/2013 Water & Wastewater I
1,01-i J011118011
City Administrator
City of Otsego
13400 90"' Street NE
Otsego, MN 55330
Lori,
We have put togetlicr a draft red line version of a new contract for your review and consideration.
We anticipate that this draft will serve as a good starting point to begin discussion with you on how
we c'-:111 Continue to assist the City of Otseao With Operating its water and wastcwater utilities as cost
effectively as possible.
The infrastructureand scope of services for which we are responsible for have continually evolved
since the implementatimi of the current contract in 2008. With this red line contract we have
attempts to 'dentify and incorporate those cliCIII(jes into a draft document that will allow you to
c 1 0
compare the existing mitract to a proposed new contract. "Hic text in red in is langtiage from the
0XiStm(T(,-igi4cemcnt (hat will be, r(.',%moved. The underlined text is language that is being added.
C�)
Some of the key changes we have incorporated into the draft agreement are the following:
2.1 (k) Owner agrees to provide Lip to '100 110LIN of labor from its 111111licipal employees to
CISSist 11copleService with routhic Fire hy(II-c-111t ffilShillg (-111(1 11111111101C hISI)CCtions. By
Completing the III-C111110le inspections ill Conjunction Nvitli the Sewer Cleaning, and With the
time saved from the cadditional Lift Station SDA and the Lift Station 113 impeller
upgrades, we have gained some operational should therefore be able to complete the hydrant
flUSIIIIIg with no additional assistance from the municipal employees. We would anticipate
that this should result in some labor savings for the city.
The annual maintenance budget, the annual chemical budget, and the mwithly compensation
have all beers adjuste d to reflect the changes from 2008 to 2013. Please bear in mind that
durine that time frame there have been a number of amendments and CPI adjustments.
o July 1, 2008 Contract initiatcd at a monthly cImisation of $44,602
o July 1, 2009 the compensation was reduced to $44,435 due to a -0.7% CPI
0 All Y 1, 2009 t 11 e comp ens ati o n was i iieren s e d by c o tit ract anic ad m c n t. to $44,435 dire
to the sampling changes at the East WWTF from the new NPDES Permit.
o
April 1, 20 10 the compensation was increased by contract amendment to $44,820
due to increased Bac-T sampling from the M -N Department of I-Icalth and the
additional labor assoul"ated with the initiation of in house sewer cleaning.
o July 1, 2010 the compciisation was increased to $45,806 due to a 2.2% CPI
o July 1, 2011 the compensation was increased to $47,278 due to a 3.2% CPI
o July 1, 2012 the compensation was increased to $48,365 due to a 2.3% CPI
DiscoverThe 1101verof People www.peoples ervice.corn
I * .
o July 1, 2013 Nve, propos the mon thly-compens a6oi r U 17-1 LIVI-C d-Se&1M=-W;8S9--&1=to - - _���_ =��s
an anticipated 1.6% CP1 and $9,000 of additional sampling costs (fue to NIMES
Permit rcquirements at the East and West Wastewater Treatment Facilities.
Exhibit A - DeseriPtion of Facilities, has bcen updated to account fior all of the additional
infrastructure that has been added to the systcm since 2008.
Exhibit B — Scope of Services, has beeii. updated to account for; the changes that Came about
due to previous contract amendments, as well as the additional responsibilities we have
acquired due die Well Head Protection and Backflow Prevention programs in addition to
other items.
We took forward to the opportLinity to review this draft contract and to seek out and explore any
other potential cost efficiencies. We do see some potential cost savings. in regard to the telephone
ami internet service at the two wastewater facilities in the event the city was to eliminate the need
for some of the serin
vice lines. We are also willing to discuss elimating some of the collection ( a nd
distribution or fron'i our current scope of service, but we need some additional guidance fi-om
you in order to identify what responsibilities the city employees would be able to assume.
With Best Regards,
Paul Christensen
Northern IN Regional Manager
PeopleService INC
P.O. Box 995
Arlington, MN 55307
320-420-5367
DiscmICIRT110 Pmmer of Peolfl(_ www.pooploservice.001.11
OPERATION AND MAINTENANCE AGREEMENT
This Operation and Maintenance Agreement (the "Agreement") dated as of
20082013, is between the City of Otsego, Minnesota, a municipal corporation (the "Ownerl' ),
whose address is 8899 Nashua Avenue HE 13400 90t" Street, Otsego, Minnesota 55330, and
PEOPLESERVICE, INC., and its successors and assigns ("PeopleService"), whose address is
209S. 19th Street, Suite 555, Omaha, Nebraska 68102.
RFCITALSO
WHEREAS, Owner is the owner of a municipal water and wastewater treatment facility as
described in Exhibit A to this Agreement (the'Facilities"} and
WHEREAS, Owner desires to engage PeopleService to operate and maintain the
Facilities on behalf of Owner and PeopleService desires to accept such engagement, all upon
the terms and conditions hereafter set forth; and
WHEREAS, Owner is authorized by law to enter into this Agreement,
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein
contained, the parties agree as follows:
ARTICLE I - SCOPE OF SERVICES
1.1 Commencing on July 1, 20082013, or such other date mutually acceptable in writing
to PeopleService and Owner (the "Effective Date"), PeopleService will provide all routine
operation and maintenance of Owner's Facilities on a 7 day per week basis within the design
capacity of the Facilities as described in Exhibit A to this Agreement ("Description of Facilities").
The routine operation and maintenance services to be provided by PeopleService are further
described in Exhibit B of this Agreement.
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1.2 Commencing with the Effective Date of this Agreement, PeopleService shall continue
the use of its standard operating procedures and preventive maintenance and process control
programs, including documentation of operation and maintenance procedures conducted for the
water and wastewater utility system. Such records shall be available for inspection by Owner at
all reasonable times.
1.3 PeopleService will be responsible for expenses incurred in the routine operation and
maintenance of the Facilities, including personnel services, communication services consisting
of three (3) phone lines and the high speed internet service (electricity, natural gas and diesel
fuel used for the backup generator shall remain the responsibility of the Owner), chemicals
(subject to the provisions contained in Section 4.3 of this Agreement), materials, supplies,
contracted services, insurance, and equipment repair (subject to the provisions contained in
Sections 1. 4 and 2. 1. b of th is Ag reeme nt).
1.4 PeopleService shall provide all required maintenance to preserve the existing life of
all assigned equipment and vehicles of the Facilities. PeopleService will bear the expense of
maintenance and repair of all equipment, physical facilities, and vehicles assigned for
PeopleService's use, except for capital replacement expenditures as defined in section 2. 1 (b),
provided that such expense does not exceed a maximum annual maintenance/repair
(noncapital) expenditure of $30,000 $32,656 for the first year of this Agreement. In subsequent
years, the maximum annual maintenance/repair expenditure will be increased by the C.P.I.
adjustment contained in section 4.2 of this Agreement. In performing maintenance and repairs,
PeopleService will perform in an economical manner and make all reasonable efforts to remain
below the annual maintenance/repair expenditure amount while remaining in compliance with all
applicable regulations. PeopleService will refund to Owner any unused monies less than the
maintenance/repair expenditure amount. In the event that such. expenses approach or exceed'
this maximum annual amount, PeopleService shall promptly notify Owner. Any repair
expenses in excess of the maximum amount set forth in this provision shall be approved by
Owner. PeopleService shall invoice Owner the amount of maintenancelrepair expenses in
excess -of the maximum annual maintenance/repair limit set forth in this provision at the end of
the 12 -month period. Owner shall reimburse PeopleService for such excess expenditures.
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1.5 PeopleService will provide properly certified employees for the staffing of Facilities.
Backup services will be provided by PeopleService corporate personnel. In addition,
PeopleService will be on call 24 hours per day, 7 days per week, for emergency situations.
1.6 PeopleService shall advise Owner and serve as Owner's liaison to regulatory
agencies and industrial users in matters related to the operation of the Facilities, However,
PeopleService will not act as, or provide, legal counsel in this capacity.
1.7 PeopleService will supervise all regulatory compliance and financial transactions
pertaining to the day-to-day operation of the Facilities. Subject to the limitations of this Section
1. 7, PeopleService shall operate the Facilities in compliance with state and federal regulatory
requirements. PeopleService will pay all fines imposed for process upsets and violation of
discharge lit -nits unless the process upsets or violations are attributable to:
(a) Flows or pollutants which are not within the Design Capabilities of the Facilities;
pollutants include, but are not limited to soluble oil, heavy metals, excessive
suspended solids and excessive organic lbadings;
(b) The malfunction or failure of equipment which is not solely due to the negligent
acts, errors or omissions of PeopleService;
(c) Construction activities which are undertaken to improve the wastewater
treatment process but which are beyond the operating scope of services of
PeopleService as delineated in this Article 1; or
(d) Discharges from industrial facilities in violation of any pretreatment standards
applicable to those discharges.
I n no event small Peo pleSe rvice be responsible fo r the payment of state or federal fines imposed
or, damages, attorney fees, and court costs awarded as a result of actions, inactions, process
upsets or violations which occurred prior to or existed on the Effective Date of this Agreement,
and which are not due solely to the negligence of PeopleService, nor shall PeopleService be
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responsible for payment of any fines, penalties, damages or attorney's fees resulting from
requirements not expressly assumed by PeopleService herein, including any reporting
requirements.
With regard to potable water supplies, PeopleService will not be responsible for inherent water
quality that fails to meet specifications of the Safe "Drim king Water Act and amendments thereto
concerning inorganic chemicals, pesticides, volatile organic chemicals, synthetic organic
compounds, lead and copper standards. However, PeopleService will use its best efforts to
treat Owner's potable water supplies to meet drinking water standards.
1.8 PeopleService shall exercise the due care in performing its obligations and duties
under this Agreement which is normally and reasonably provided with respect to similar contract
services.
1.9 PeopleService will provide and maintain at all times during the term of this Agreement
the following minimum insurance coverage:
(a) Statutory Workers' Compensation Insurance in compliance with the laws of the
state of Minnesota which has jurisdiction of PeopleService employees engaged in
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the performance of services hereunder; together with Employers Liability coverage in
the amount of $500,000 for each incident;
(b) General liability coverage of at least $5,000,000 combined single limit, each
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occurrence, for bodily injury and property damage with Owner named as additional
insured; and
(c) Comprehensive auto liability insurance which shall include $500,000 combined
single limit coverage for bodily injury and property damage.
PeopleService will furnish Owner with Certificates of Insurance as evidence that policies
providing the required coverage and limits are in full force and effect. Such policies shall
provide that no less than thirty (30) days' advance notice of cancellation, termination or alteration
shall be sent directly to PeopleService and Owner.
ARTICLE 11 - RESPONSIBILITIES OF OWNER
2.1 As part of this Agreement Owner agrees to assume the following responsibilities'.
(a) Owner shall maintain in full force and effect, in accordance with their respective
terms, all guarantees, warranties, easements, permits, licenses and other similar-
approvals
imilar
approvals and consents received or granted to Owner as owner of all Facilities and
component parts thereof;
(b) Owner shall be responsible for all capital replacement and major
maintenance/repair expenditures which are defined as nonrecurring expenditures
greater than $1,000, that Owner determines necessary and required, provided that
PeopleService will first be consulted for justification a n d need;
(c) Owner shall be responsible for filing, obtaining, and maintaining current water
supply operations permit and IFIDES permit for discharge of wastewater; wellhead
protection plans, DNR water appropriation reports, DNR water emergency plans and
conservation plans, mercury minimization plans, phosphorus management plans;
and for filing all required reports under the Emergency Planning and Community
Right -To -Know Act (Tier I I reporcin q), Stormwater Pollution Prevention Plan and
Permit for the East Wastewater Plant or any other statute or authority as well as the
publishing of the annual Consumer Confidence Report (CCR) required by the Safe
Drinking Water Act; provided, however, PeopleService shall assist Owner with
preparing these filings and reports and shall provide ongoing assistance regarding
the maintenance of these permits, plans and reports;
(d) Owner shall at all times provide access to the Facilities for PeopleService, its
agents and employees;
(e) Owner shall provide PeopleService the use of all existing equipment owned by
Owner, including a plow/hoist truck, necessary for the operation and maintenance of
the Facilities and warrants that such operating equipment is in good condition;
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(f) Owner shall be responsible for all damage to the Facilities, components thereof,
PeopleService equipment on site, and all resulting liability to any and all third parties,
when such damage and/or liability are caused by flood, fire, acts of God or other
force majeure events, civil disturbance, extreme cold temperatures, excessive
subsoil moisture, or, misuse of property to the extent Owner was negligent regarding
the misuse of such property;
(g) Owner shall be responsible for all fines imposed for process upsets and
violations of discharge limits attributable to the operation and maintenance of the
Facilities to the extent set forth in Section 1.7 as well as fines imposed for failure to
report as required by Section 2.1 (c);
(h) Owner shall designate an individual to act as liaison with PeopleService in
connection with the performance of services by PeopleService under this
Agreement;
Owner shall be responsible for all property, excise and other taxes assessed on
the Facilities; and
0) Owner shall bear all costs incurred as a result of regulatory requirements not in
effect on the Effective Date of this Agreement; and
(k) Owner agrees to provide up to 700 hOUrs of labor from its Municipal employees to
assist PeopleService with routine fire hydrant fILIShing and manhole inspections.
2.2 Owner shall maintain in full force and effect all existing policies of property and
general liability insurance pertaining to the Facilities. Owner shall furnish PeopleService with
Certificates of Insurance as evidence that such policies are in full force and effect under such
policies. Such policies shall provide that no less than thirty (30) days' advance notice of
cancellation, termination or alteration shall be sent directly to PeopleService and Owner.
2.3 Owner shall indemnify and hold PeopleService, its officers, employees and agents,
harmless under this Agreement for any and all claims, damages, costs or expenses caused by
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malfunction or failure of the Facilities or any components thereof or other liability or loss including
injury, death, or damages to any person or property related in any way to the performance of this
Agreement to the extent such claims, damages, costs, expenses, liability or loss are caused by
the negligent acts, errors or omissions of Owner. Additionally, Owner shall indemnify
PeopleService, its officers, employees and agents harmless for any and all fines, penalties,
attorney's fees and damages resulting from Owner's failure to comply with permitting, reporting
or other statutory or regulatory requirements which are the responsibility of the Owner. This
provision shall survive the termination of this Agreement.
ARTICLE III - RESPONSIBILITIES OF PEOPLESERVICE
3.1 PeopleService shall indemnify and hold Owner, its employees and agents, harmless
under this Agreement for all claims, damages, costs or expenses caused by malfunction or
failure of the Facilities or any components thereof or other liability or loss including injury, death,
or damages to any person or property related in any way to the performance of this Agreement to
the extent such claims, damages, costs, expenses, liability or loss are caused by the negligent
acts, errors or omissions of PeopleService. This provision shall survive the termination of this
Agreement.
ARTICLE IV - COMPENSATION
4.1 As compensation for services rendered by PeopleService pursuant to this
Agreement, Own e r shall pay to PeopleService the s u rn of $44,602 $4918 89 per month during t h e
first twelve (12) months of this Agreement, commencing with the Effective Date. Tho monthly
payment shall be due and payable on the first day of the month in which services are to be
rendered. All other compensation to PeopleService is due upon receipt of PeopleService's
invoice and payable within thirty (30) days of the date of the invoice.
4.2 The monthly compensation provided in Section 4.1 shall be adjusted on July I of
each year, beginning on July 1, 20092014. The basis for the annual adjustment for July 1, 2009
2014 shall be the change in the Consumer Price Index for All Urban Consumers (+SPI -U as
regularly reported by the U.S. Bureau of Labor Statistics, between April 2008 2013 and April
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2009 2014. For each year thereafter, the adjustment shall be the change in the CPI- U as
reported between April of the year preceding the year of adjustment and April of the year of
adjustment. This annual adjustment shall be done by letter acknowledging the change and will
not require official action or contract amendment.
4.3 Within sixty (60) days of the end of the first twelve months after the Effective Date of
this Agreement, PeopleService shall provide the Owner with a statement showing the amount of
money expended on chemicals at the facilities, Should the amount of actual expenditures for
chemicals be less than the "base amount", PeopleService will include a refund equal to the
portion of the base amount that remains. If the actual expenditures exceed the base amount,
PeopleService shall include an invoice equal to the amount actual expenditures exceed the base
amount, which the Owner agrees to pay in accordance with the tewns of Section 4.1 of this
Agreement. The "base amount" for the first twelve months of this Agreement shall be $60,000
$65,314. The base amount shall be escalated annually in accordance with Section 4.2 of this
Agreement.
ARTICILVI. V --TERM OF AGREEME--ONT
5.1 This Agreement. shall remain in full force and effect for five (5) years from the Effective
Date. The Agreement shall be automatically renewed for successive terms of one (1) year each
unless written notice of cancellation is given by either party to the other no less than ninety (90)
days prior to the date of expiration.
ARTICLE V1 - TERMINATION
6.1 This Agreement may be terminated by either party in the event of the other party's
breach of a material term of the Agreement, by the first party's giving written notice of such
breach and the second party's failure to correct within thirty (30) days of receipt of such notice.
6.2 PeopleService shall not be in breach under this Agreement for its failure to perform its
obligations under this Agreement, to the extent that the performance of such obligations is
prevented or delayed by any event which is beyond the reasonable control of PeopleService,
including but not limited to Acts of God, strikes, labor disputes, and unavailability of pails. In the
event PeopleService claims that its performance is prevented or delayed by any such event,
PeopleService will promptly notify Owner of that fact and the circumstances preventing or
delaying its performance.
ARTICLE Vill - MISCELLANEOUS
7.1 Any temporary or portable equipment which is provided by PeopleService during the
term of this Agreement and which is not deemed part of the Facilities shall remain the property of
PeopleService upon termination of this Agreement. PeopleService shall not make any
expenditures for capital replacements of the Facilities or any component thereof without the prior
approval of Owner unless there is an emergency. An emergency exists when such
expenditures are necessary to continue operation of Owner's Facilities or to provide for public
health, safety or environmental protection. If there is an emergency, PeopleService shall
provide Owner with verbal notice of the heed for the capital replacement expenditure as soon as
possible. Owner shall reimburse PeopleService for such emergency capital replacement
expenditures in accordance with Section 4.1 of this Agreement.
7.2 This Agreement represents the entire agreement of the parties and may only be
modified or amended in a writing signed by both parties.
7.3 Written notices required to be given under this Agreement shall be deemed given
when mailed by first class mail to PeopleService, Attention: President, and to Owner, Attention:
City Administrator, at the addresses set forth for each in the opening paragraph of this
Agreement.
7.4 This Agreement shall be governed by, and construed in accordance with, the laws of
the state of Minnesota.
7.5 Neither party shall assign, in whole or in part, any of the rights, obligations or benefits
of this Agreement except to a parent, affiliate, or wholly-owned subsidiary, without the prior
written consent of the other party, which consent shall not be unreasonably withheld. For
purposes of this Section 7. 5, an affiliate is defined as a company, the controlling interest in which
is owned by the parent of the party.
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7.6 Upon the Effective Date of this Agree[nent, that certain Operation and Maintenance
Ag reement dated N ovember '16, 2005 June 9, 2008 between the Owner and PeopleService
shall automatically terminate and shall be superseded by this Agreernent.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of
the date first above written.
PEOPLESERVICE, INC.
President
Attest:
Assistant Secretary
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CITY OF TSEGO, MINNESOTA
Attest:
Mayor
City Administrator
OPERATION AND MAINTENANCE AGREEMENT
EXHIBIT A
Description of Facilities
For purposes of this Agreement, the following water/wastewater utility components are
included'.
0 water Systems:
The East water system is a Class "C" water system consisting of five (5) water
production wells [well #1, #3, #6 & #8 with submersible pumps; well #2 with aline
shaft turbine pump]; two (2) well houses with chemical addition equipment for adding
chlorine, fluoride and polyphosphate; two (2) elevated water storage towers [tower
#1 with a 400,000 gallon capacity and tower #3 with a 1,000,000 gallon capacity];
one (1) portable emergency generator; and a water distribution system containing
approximately 163,000 166,312 lineal feet of water mains of various sizes (with
diameters of 6 to 16 inches), approximately 500 348 fire hydrants, three (3) pressure
control stations [station #1 is a booster station while stations #2 & #3 are reduction
stations] approximately 1,000 749 water valves, corporation stops, city service lines,
curb stops.
The west water system is a Class "C" water system consisting of three (3) water
production wells [well #4, #5 and #7 with submersible pumps], two (2) well houses
with chemical addition equipment for adding chlorine, fluoride and polyphosphate;
one (1) elevated water storage tank with a capacity of 1,000,000 gallons; one (1)
16
,o 0 gallon ca pacity hydro pneumatic wate r storage tank; one (1 ) portable
emergency generator; and a water distribution system contaWng approximately
163,000 166,611 lineal feet of water mains of various sizes (with diameters of 6 to 16
inches), approximately 500 369 fire hydrants, 1,000 806 water valves, corporation
stops, city service lines and curb stops.
I I
N Wastewater Systems:
The east wastewater system is irade up of a wastewater collection system that
contains four (4) lift stations [stations #1 & #5 are submersible triplex stations, station
#2 and #8 are duplex stations] approximately 115,000 115,389 lineal feet of
interceptor sewer lines of varying sizes (from 8 inch to 18 inch in diameter),
approximately 50,000 60,002 lineal feet of force main, approximately 600 557
manholes and ten (2521) air release manholes, and eighty (8053) force main
isolation valves; a Class "A MaJor" wastewater treatment plant containing
pretreatment (a mechanical bar screen and grit removal) and process treatment
through extended aeration incorporating specialized zones for nutrient reduction,
with chemical addition available for assisted phosphorous removal [process
clarification occurs prior to disinfection and reaeration]. Structures and equipment
at this faci I ity include a control building wit h la bo ratory/offi ce area, control room a n d
pump gallery (which contains three (3) return activated sludge pumps, two (2) waste
activated sludge pumps and two (2) sump pumps) and an attached pretreatment
room with mechanical screening equipment and mechanical grit removal; two (2)
oxidation ditches [ditch #1 uses an aerator incorporating four (4) selector tanks with
individual mixers, ditch #2 uses a VFD controlled aerator based on an in line
dissolved oxygen meter set point; ditch #2 also incorporates three (3) anaerobic
tanks and an anoxic zone each containing individual mixers]; two (2) final clarifiers; a
chemical building for ferric chloride addition for phosphorous removal; a blower
building containing six (6) blowers [four using variable frequency drives]; and a
disinfection building using ultra violet light (UV) disinfection; and in line pH and
dissolved oxygen monitoring; effluent re -aeration; one (1) aerobic digester with a
decant tank; two (2) aerobic digesters with decant piping; five (5) sludge storage
tanks; a sludge thickening building which houses one (1) gravity belt thickener, a
polymer injection/mixing system and a pump room with three (3) progressive cavity
pumps. The site also maintains a 900 KVV emergency generator. The treatment
plant has a design average dry weather flow of 0.900 mgd, an average wet weather
flow of 1.100 mgd, a peak hourly flow of 3.294 rngd and a C BO D loading of 2,082
pounds per day.
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The west wastewater system is made up of a wastewater collection system that
contains five (5) lift stations, with stations 4,6 V being eguipped with SCADA
qquipment [station #3 and #4 are submersible triplex stations and stations N, and #7
and #9 are submersible duplex stations], approximately 110,000 136,538 lineal feet
of interceptor sewer lines of varying sizes from 8 inch to 18 inch), approximately
50)000 48,390 lineal feet of force main, approximately 600 713 manholes,
twenty -five (2527) air release manholes and seventy (70107) force main isolation
valves, and a Class "B" wastewater treatment plant containing pretreatment
consisting of mechanical screening and grit removal with process treatment
accomplished through extended aeration incorporating specialized zones for nutrient
reduction with chemical addition available for assisted phosphorous removal
[process clarification occurs prior to disinfection]; structures at the plant include a
control building with laboratory/office areas and control room, a preliminary treatment
building with mechanical screenings removal, mechanical grit removal, and a pump
gallery containing three (3) return activated sludge pumps, two (2) waste activated
sludgepumps, and two (2) sump pumps; two (2) oxidation ditches; three (3) anoxic
selector tanks for biological phosphorous removal; three (3) anoxic tank mixers; two
(2) final clarifiers; chemical addition for phosphorous removal; ultra violet light (UV)
disinfection; one (1) aerobic digester and decant pump; one (1) one million gallon
sled storage tank and decant pump; a sludge thickening building which houses
one (1) gravity belt thickener, a polymer injection/mixing system, a pump room with
four (4) progressive cavity pumps and one (1) sludge storage mixing pump, a
chemical roorn for chemical addition phosphorous removal and a blower room with
three (3) blowers; and one (1) 600 KW stationary emergency generator. The
treatmentplant has an average design flow capacity of 0.600 rngd with an influent
CB OD loading of 204 mg1l, influent TSS strength of 240 rng/L and phosphorous
loading of forty (40) pounds per day.
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OPERATION AND MAINTENANCE AGREEMENT
EXHIBIT B
Services to be Provided bv PeopleService
Except as otherwise provided in the Operation and Maintenance
Agreement, and subject to the limitations set forth therein, PeopleSelvice
shall provide the following services to Owner in connection with the
Facilities:
PeopleService will provide the personnel necessary to manage, operate and
maintain the City's water production, water treatment, water distribution, wastewater
collection and wastewater treatment facilities in order to achieve optimum
performance and to maintain equipment for system integrity, within the Owner's
budgeted resources.
PeopleService will provide technical training to the water and wastewater operators
on treatment process, preventive maintenance techniques, and safety awareness,
including the continuing education units CE 's necessary for the operating
personnel to maintain their licenses.
PeopleService will procure and pay for all communication services including three (3)
phone lines and high speed internet service (except for the alarm systems),
consumable supplies, chemicals, vehicle fuels, and materials and services (except
the annual Generator System Services, Inc. contract) necessary for the safe and
efficient day to day operations.
Monitor , sample, analyze, and report as required by the Minnesota Department of
Health (MDOH) in matters related to municipal water supply, Testing will include
those tests necessary to maintain the daily operation of the water system and for
coliform bacteria, Any additional testing costs as required by regulatory agencies
such as but not limited to inorganic chemicals, synthetic organic chemicals, volatile
organic chemicals and pesticides will be the responsibility of the Owner.
14
1--)ooale Service will monitor, sanipl o, c,11,1cl i,eport as required by the
Minnesota r-lollution Control Agency (MPCA) acrd the, NPIDEpermits iSsUe)d -ror the
wastewater treatment facilities, exClUding th(---,N Priority P01ILVAL-ants and Acute Toxicity
testing as defined in Chapter 1 of NES Permit MN 0064100. Testing will also
include those tests necessary to optin-lize and maintain the daily op(--�ration of the
wastewater treatmentplants. PeopleService will monitor, sample, analyze and report
as required by the Minnesota Pollution Control Aqenc v (MPCA) and the PIDES
permits issued for the wastewater treatment facilities (Permit No. MN0066257
effective 008 for the west treatrxrent lent and Permit leo. 11 N00641 90
effective May 15 20 -im final period), excluding the
,,,-..09 for the east treatment plant intei
Prioritv Pollutants and Acute Toxi it testis q as defined in Chapter 1 of NPIDES
Permit MN0064190 and excludina salt D�-jsc�har e�m�orn�i�torina �an�ds�arn�rin_,
requ* s listed in the limits and monitoring -requirement section of NPIDES
a
Permit MN0066257. Testing. will also include those tests necessa[Y to optimize and
maintain the dailv operation of the wastewater treatment plants.
Peopleservice will act as a liaison between the Owner and the MDOH/MPCA and to
the federal E.P.A. in matters relating to compliance with water quality and discharge
requirements, and other liaison activities, as required.
PeopleService will be responsible for effluent quality, including liability for fines and
civil penalties should permit conditions be violated, while plant loadings and flows are
T
within the design capability of the wastewater treatment plant, but only in those
situations where thepermit condition could have been met using existing in-place
plant equipment.
El Pee pleService will coordinate and direct the disposal of the bio- olid from the
wastewater treatment plants (a properly certified operator will, on behalf of the
Owner, seek quotes from firms for the application of the bio -solids; will assist in
securing land application sites; and will oversee the actual application of the
bio -solids using the contractor selected by the Owner). Any cost of securing or
maintaining the land application sites and the cost of the third party contractor doing
the actual disposal work will remain the responsibility of the Owner. In addition,
15
PeopleService will maintain the required records for compliance with the MPC A and
"503" sludge regulations and any required reloorcin g,to the MPC A or EPA.
IM PeopleService will conduct annual inspections of each water well to include
ampera .ge draws, static water levels, pumping water levels, sand and a visual
inspection of an exposed well casinq.
IM Peo leservice will provide an employee to function as a Wellhead Protection Plan
manner to oversee and coordinate the Owner's wellhead protection plan, includinq
having a representative providing educational information about water conservation
and wellhead _protection to attendees at the annual Prairie Festival.
PeopleService will provide an emloyee to act as a bacl(flow prevention plan
manal ler in order to assure utility customers are in compliance with the program s
reguirements.
El PeopleService will implement the use of a comprehensive, preventative
maintenance program in an attempt to ensure the projected life expectancy of plant
equipment, and will enforce existing equipment warranties and guarantees, and
maintain all warranties on any new equipment purchased after the effective date of
an agreement.
M With assistance from the Owner's employees, PeopleService will flush all fire
hydrants twice each year to maintain water quality in the distribution systern.
Preventative maintenance shall be performed on all hydrants on an annual basis.
PeopleService will implement a water main valve exercising program that will include
the identification of valve locations in a "Tie Book" and/or GIS and the operation of
twenty percent (20%) of the valves each year.
I f-%
With ass ista n co from the Own e r's a m p I oyees, Pe o p Ie6o rV ice gill it p lo- me nt a;
sanitary sewer manhole inspection program that will inCILIdO elle identification d`
Manhole locations in a "Tie Book $1 and the inspection of twenty parcent (20%) of the
We
Manholoos each year. PeopleService shall assist the Owner's employees in
completing -the jettinci/vacuuming of at least twenty percent,L20%) of the Owner's
wastewater collection system each year, and as part of this work, shall corniolete
inspections of the manholes in that portion of the system. Information collected in
this [process shall be recorded in the "Tie Book" and/or GIS.
During the camping season, PeopleService will read the wastewater meter at the
Mississippi River Wood Association's RV park on a moolhily basis and provide the
reading to the Owner's staff.
U ovide e Ow rovide assistance with
sing egui.pment pr d by the Owner PeopleSerivce will p
the identification and elimination of inflow/infiltration from the Owner's wastewater
collection system. This shall entail setting u flow monitoring devices, monitorir of
the flows and .completim installations of chimnev seals as needed.
PeopleService will complete all turn "ons" and hirl-I it of rs " of water service requested
by the Owner, but all other wort with water me ters/service (such as but not limited to
high/10W usage complaints, .all water sales, mete r installations, meter repair , etc.)
shall be the responsibility of the Owner.
r. If repairs of the Owner's water distribution system or wastewater collection system
are to be made, and excavation is required, PeopleService will coordinate the repair
using a contractor chosen by the Owner. The excavation, repair and any surface
restoration work will be the responsibility of the contractor, with the cost of the
contractor being the responsibility of the Owner.
PeopleService will maintain cleanliness of process equipment and buildings, and
general appearance of all buildings and grounds, except for the mowing of grass and
will conduct operations such that nuisances of sight, sound, and odor are eliminated
or minimized to the extent reasonably possible.
aUsing a vehicle provided by the Owner, PeopleService will plow the snow at all water
and wastewater facilities, including lift stations, and when possible, will pull pumps for
17
necessary routine maintenance, repairs and inspections.
IN Within the limits of available security devices, PeopleService will secure and protect
utility facilities for which it is responsible.
0 PeopleService will provide a monthly, written report to designated Officials of the
Owner, summarizing plant performance, production, flows, major projects or
accomplishments, and preventive and corrective maintenance activities for the
month.
M PeopleService will comply with all applicable city, state, and federal laws,
regulations, and administrative rules.
M PeopleService will use a professional manner in dealing with community groups
concerned with any facet of the operations I including tours and other public relations
programs.
M PeopleService will coordinate and cooperate with the Owner's Engineer and
contractors to facilitate the completion of any expansion or improvement to the
facilities.
M PeopleService will serve as liaison between the Owner and any new or existing
major contributing industries, and provide technical assistance to the Owner in
consultation to existing industries and to any new industries, in matters relating to
their pretreatment process, or agreements with the Owner and/or the MPCA.
0 PeopleService offers several types of professional services to our clients without
charge. We term these additional services as „value added" services that clearly
differentiate us from the typical O&M contract services provider. By providing these
studies, audits, and assessments, we hope to gain a firm knowledge of our client's
systems and at the same time 'increase our value to them so that we are able to
establish a long-term, lasting relationship. The following lists our "value added"
services, which we provide to our clients as part of our support services package:
I&
M
W Five Year Water wastewater Capital Improvements Assessment and O&M
Budgeting Assistance
IN Water and/or Wastewater Rates Study
N Industrial Pre -Treatment Investigation
N Laboratory Quality Assurance and Quality Control (QA/QC) Program
Miscellaneous
A - PeopleService will provide the necessary information to complete all forms required through
the administration of the water and wastewater treatment systems. PeopleService will not be
required to pay any fees associated with the licenses or permits required by the state agencies.
PeopleService will pay all expenses associated with the individual operator certification.
B - PeopleService will not be responsible for any additional costs associated with any
construction project or upgrades involving the water and/or wastewater systems.
C - For services requested by the Owner and provided by PeopleService that are beyond the
Scope of Services contained in this Exhibit B, PeopleService shall charge the Owner at the rate
of $50 per hour between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday (except for
holidays). At all other times and during holidays, the billing rate shall be $75 per hour. Hours
billed shall include any required travel time. Owner agrees to pay invoices for said charges in
compliance with the terms contained in the paragraph 4.1 of this Agreement.
19
CITY OF
Ot e 0
MINNESOTA g Position Description
Position: Lead Utility Plant operator
Reports to: Public Wor#1 s Maintenance Super v! or/ City A.dministr# tor#
Supervises: Utility Plant operators and Laborers
`LSA Status: Exempt
Pay Grade:
Date Approved:
DESCRIPTION OF WORK
Genual Statement ofDuties: Responsible for operating and maintaining water system and
water distribution and waste water systems and collection. Supervise utility department
staff. May assist public works and parks departments as needed.
Supervision Received: Works under the direction of the CityAdminlstrator.
Suuervision Exercised:_ Provides supervision to the utility plant operators and laborers.
MAJOR JOB FUNCTIONS
.. dater System:
a. Monitor well production and water tower levels
b. Monitor water quality
c. Follow EPA, MPCA and DNR requirements, licenses, guidelines, and policies
d. Maintain and repair water{ system, hydrants, valves, pumps, meters, and
related equipment
2. Wastewater System:
a. Operate East and West wastewater plants within EPA and MPCA license
requirements
b. Follow plant operations procedures and recommend changes for
improvement
c. Responsible for maintenance and repair of facilities, equipment, Arles,
pumps, grounds, and collection system
d. Conduct lift station monitoring and maintenance
issues
KNOWLEDGE, SKILLS AND ABILITIES
Extensive knowledge of and experience in managing and operating water and
wastewater utilities
Extensive knowledge of bio solid application requirements and methods
Extensive knowledge of and experience in supervising employees
0 Extensive knowledge of and experience in City operations, ordinances, and practices
related to water and wastewater applications
Proficient in. SAA, Microsoft office (Excel, Nord, and PowerPoint) and standard
computer systems arra programs used in operation of water and wastewater
systems
Experience and applied knowledge in laboratory tests, testing methods and
techniques, testing requirements, and interpretation of test results
Experience analyzing problems, identifying solutions, and implementing solution
successfully
0 Experience making presentations to governmentbodies, professional associations,
arra community organizations
Ability to communicate clearly, professionally, effectively, arra precisely both
verbally and in writing
Ability to resolve and diffuse conflicts
Ability to understand, manage, and communicate complex ideas, projects, and
situations
0 Applied experience and knowledge of budget management
Applied experience and knowledge of purchasing/contract Zags and practices
Ability to work independently and as part of a team and to coordinate work with
other departments and to lead multi -departmental or multi -jurisdictional projects.
Ability to plan, prioritize and organize the department's work.
a Strong sense of honesty, integrity, and credibility
MINIMUM QUALIFICATIONS
1. Minnesota Class A Wastewater Certification
2. Minnesota Class A Water certification
3. Seven gears of experience at municipal water and wastewater systems with a
minimum of three years at each
. Five years of supervisory experi
rence
S. Avalid class B Minnesota driver's license
. 30 minute response time to the wastewater treatment plant
,
9 :;_
CITY OF
ot
MINNESOTA 9 Position Description
Position: Utility r Plant Maintenance Worker
er
Reports to: Lead Utility plant operator
Supervises: IA
F SA Status: Non-exempt
Pay Grade:
Date Approved:
General Statement of Duties: Under direction of Lead Utility Plant operator is responsible
for operating and maintaining grater system and water distribution and waste grater
systems and collection. Weekend end rotation and on call rotation required. May assist public
works and parts departments as needed.
Supervision Received: Wog#lis under the direction of the Lead Utility Plant operator.
Supervision Exercised:_ None.
MAJOR JOB FUNCTIONS
1, Water* System:
a, Monitor well production and water tower levels
b. Monitor and test water quality
c. Follow EPA, MPGA and DNR requirements, licenses, guidelines, and policies
d. Maintain and repair water system, hydrants, valves, pumps, meters, and
related equipment
. Wastewater System:
a. operate East and West wastewater plants within EPA and IPA license
requirements
b. Follow plant operations procedures and recommend changes for
improvement
ement
c. Responsible for maintenance and repair of facilities, equipment, valves,
pumps, grounds, and collection system
grater and wastewater applications
Experience in use of heavy e quiprnent su h as Ii ft truck, , j e t^vac, and generators
Knowledge of SAA, Microsoft office (Excel, Word, and PowerPoint) and standard
computer systems and programs s used in operation ofwater and wastewater
systems
Experience and applied knowledge in laboratory tests, testing methods and
techniques, testing requirements, and interpretation of test results
Experience analyzing problems, identifying solutions, and implementing solution
successfully
Ability to communicate clearly, professionally, effectively, and precisely both
verbally and in writing
Ability to resolve and diffuse conflicts
Ability to understand, manage, and communicate complex ideas, projects, and
situations
Ability to work independently and as part of team
Strong sense of honesty, integrity, and credibility
MINIMUM QUALIFICATIONS
1. Minnesota Class D Wastewater Certification
2. Minnesota Class D later Certification
3s A valid Minnesota dr i er"s license and abllit r to obtain Class B wit In six. months of
eplorornont
. 30 minute response time to the wastewater treatment plant
PREFERRED QUALIFICATIONS
. Associates degree in water and en ironmental technologies or a Bachelor's degree
in biology, chemistry, or environmental services
2. Experience working for a growing city or county
PHYSICAL MAN
Must be able to drive, sit, regularly use fine motors shills, lift 75 pounds, work and move
about in confined spaces, walk in construction areas.
Mote: This job description does not constitute a contract or employment agreement.