City Council Agenda Packet 08-25-1986AGENDA
SPECIAL MEETING OF THE CITY COUNCIL
August 25, 1966 — 5:45 p.m.
Mayor: Arve A. Grimsmo
Council Members: Fran Fair, Bili Fair, Jack Maxwell, Dan Blonigen.
1. Call to Order.
2. Consultant Interviews.
3. Consultant Selection.
4. Adjournment.
Special Council Agenda - 8/25/86
Attached is a proposed time table/schedule for the interviewing process
of computer consultants. On Tuesday, August 19, representatives
of each of the consulting firms spent the better part of a half day
with several members of staff, including public Works, Zoning, Finance,
and Clerical people. The result of those informal interviews with
staff members is a recommendation from staff. I will reveal that
staff recommendation at the conclusion of your interviews and the
rationale for staff recommendation. I believe it is best to withhold
that recommendation until after the interviews so as to not generate
a bias one way or the other going into the Council interviews.
Some clarification needs to be provided on the proposal from Gruys
Johnson S Associates. While the proposal has been submitted in the
name of Gruys Johnson, please note that it is a partnership proposal
between Gruys Johnson 6 Associates and Management Advisors, Inc.
Mr. Jim Snyder of Management Advisors will be attending the interview
along with Bob Carlson of Gruye Johnson S Associates. The real computer
consultant in that partnership is Jim Snyder of Management Advisors.
Gruys Johnson is not a qualified computer consultant, but they do
operate the current computer that provides us with our financial
data monthly. This particular partnership assisted the City of Buffalo
in their computer acquisition, but the real computer consultant in
the Management Advisors. I submitted a request for proposals to
both Gruys Johnson and to Management Advisors independently. Management
Advisors opted not to bid on their own, but again affiliated themselves
with Gruys Johnson for a single proposal. The difficulty I have
with this proposal is primarily the cost. I have attached a letter
from Rick Borden where he quotes the hourly rates for our auditors
to participate with our consultant, if we select someone other than
the Gruya Johnson/Management Advisors team. One of the selling points
of the Gruys Johnson proposal is that as our financial auditors,
they can provide more in-depth financial services in the computer
search. As you will note in the Setter from Rick Borden, the two
individuals from the Monticello office have the greatest familiarity
with our financial systems, and we can purchase their time at an
hourly rate. Our computer search is not limited exclusively to financial
services. It also occurs to me that we have a great deal of financial
knowledge in-house, and the time required of our auditors should
be limited. Even hiring one of our auditors for 20 full hours would
come in at lase than $1,000.00, substantially less than the $3,000.00
differentiation between the proposals. Considering the basic proposals
to be equal (and I do), then 1 think the actual cost is a significant
decision making factor. I believe that whatever money we Can save
on consultant fees can be put into the actual acquisition of a system.
The proposals as originally submitted were included in your agenda
packet from the previous meeting. It you have questions prior to
the interviews, please contact me.
COMPUTER CONSULTANT INTERVIEWS
Monday, August 25, 1986
5:65
p.m.
Convene
5:50
p.m.
Carroll. Franck 6 Associates
Anne Carroll
5:55
p.m.
Question/Answer
6:25
p.m.
Break
6:30
p.m.
Gruys, Johnson 6 Associates/
Management Advisors
Ri=k Borden, Jim Snyder, Bob Carlson
6:35
p.m.
Question/Answer
7:00
p.m.
Council Deliberation
7:25
p.m.
Adjourn
�rurs, 70nson
anc%.2ssoclales, G'lc/
CERTIFIED PUSUC ACCOUNTANTS
August 19, 1986
Thomas Eidem
City of P:onticello
Monticello, MN 55362
Dear Tom:
ei1 W.— S.m. Su" No I
P. O. Bo.., 7
MOnn" Ic, Mm ... A SSM2-0.I7
Z.pnpn. 295.5571
A,noul 0. O,.Y.
Dau . �onn.on
P.Rn.,.C.CII F. a�.n
A.D., E. CA,,."z, Bo,o.n
If we should be needed to meet with your computer consultants (other
than Gruys, Johnson and Associates, Ltd., and M. A. I.) our hourly
rates are as follows:
Principle Rick Borden
Senior Accountant Kim Lillehaug
Accountant Brad Smoldt
570.00/hr
38.00/hr
30.00/hr
Since Brand and Kim spend more time on the detail of the audit
I would expect that they would be needed more than I would. I
would however be reviewing any written correspondence and could be
kept up to speed on any interviews that Brad or Kim may have with
the consultants. As I understand it Gruys, Johnson and Associates'
time is already accounted for in the GJA - MAI quote.
Sincer L ,
Rick C. Borden, CPA
Vice -President
Gruys, Johnson and Associates, Ltd.
Certified Public Accountants
RCB:df
MEMBE49 OF; MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AND AMERICAN INSTRUTE OF CERTIFIED PUBLIC ACCOUNTANTS
` AGENDA FOR THE MEETING OF THE CITY COUNCIL
Monday, August 25, 1986 - 7:30 p.m.
Mayor: Arve A. Grimemo
Council Members: Fran Fair, Bill Fair, Jack Maxwell, Dan Blonigen.
1. Call to Order.
2. Approval of Minutes of the Regular Meeting Held August 11, 1986.
3. Citizens Comments/Petitions, Requests and Complaints.
Old Business .
6. Consideration of Executing a Contract with PSG for the Operation
of the Wastewater Treatment Plant.
5. Consideration of Granting an Advance Guarantee that a Non -Conforming
Use may be Rebuilt if it is ever Destroyed to more than 501 of
Its Value.
6. Consideration of Granting an Increase in the Individual Pension
Qfor the Volunteer Pira Fighters Relief Association.
a 7. Consideration of Awarding the Acquisition of a Loader.
S. Consideration of a Proposal to Extend Saver and Water Utilities
down Minnesota Street.
Now Business
9. Consideration of Ratifying an Agreement with the Minneoota Department
of Transportation for the Maintenance of Traffic Signals.
10. Consideration of Granting Final Approval to the First Phase of
a Planned Unit Development Known as Victoria Square.
11. Consideration of Granting a Variance for a Reduction in Required
Parking Spaces for the Monticello VFW.
12. Consideration of Bills for the Month of August.
13. Adjournment.
MINUTES
P REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, August 11, 1986 - 7:30 p.m.
Members Present: Arve A. Grimsmo, Fran Fair, Jack Maxwell, Dan Bionigen.
Members Absent: Hill Fair
2. Approval of Minutes.
Motion by Maxwell, seconded by Fran Fair, and unanimously carried
to approve the minutes of the regular meeting held July 28, 1956.
Mayor Grimsmo abstained from voting due to absence at last meeting.
6. Consideration of Renewing a Contract for Hauling Refuse with Corrow
Sanitation.
During the past few weeks, the City staff has been negotiating with
representatives of Corrow Sanitation regarding a 3 -year extension
of their current refuse hauling contract with the City of Monticello.
Corrow had proposed to renew the contract at the current base fee
of 56,125.50 per month, but requested that additional apartment units
from August 1 on be added at $2.50 per unit and that additional homes
f be added at $5.15 par unit. After further negotiations, Corrow agreed
to add homes at $5.10 per unit over the life of the 3 -year contract.
In addition, the contract will require that Corrow Sanitation supply
the City with copies of their dumping records to enable the City
to keep track of the amount of garbage being collected.
After further discussion, motion was made by Fran Fair, seconded
by Maxwell, and unanimously carried to authorize the City staff to
enter into a new extended 3-yoar contract with Corrow Sanitation
at the present bans fee, with additional homes being added at $5.10
and apartment units at $2.50 per unit.
5. Consideration of Entering an Agreement to Sell the Old Fire Hall.
This item was deleted from the agenda.
6. Consideration of the Municipal Liquor Store Financial Report.
Mr. Joe Hartman, Liquor Store Manager, was present at the Council
meeting to review the 6 -month financial report. Mr. Hartman noted
that sales for the first six months show an increase of approximately
$33,000.00 over the same period last year, and the gross profit has
increased approximately 520,000.00. Overall operating income is
also up approximately $23,000.00 over the some period last year.
It was also noted that due to the Highway 25 construction project,
customer accounts for the month of July were down approximately 7%%
and may lover sales, ata., compared to last year at this time.
The financial report was accepted by the Council as presented.
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Council Minutes - 8/11/86
7. Consideration of an Offer to Purchase the Monticello Municipal Liquor
Store.
During the past few years, the City of Monticello has had a number
of conversations with individuals concerning the possible sale of
the Municipal Off -sale Liquor Store. Recently, an offer was made
to purchase the Liquor Store by Floyd and Walter Markling; and as
a result, the Council discussed whether the City should pursue the
evaluation of the offer or determine that the City is not currently
interested in selling the store.
It was the general consensus of the Council members that the revenue
derived from the Liquor Store operation would be hard to replace
unless the sale price of the store was quite substantial; and as
a result, felt at the present time the city should not consider sale
of the operation.
As a result, the Administrator was informed to notify the Markiings
that the City has no interest in selling the store at the present
time.
8. Consideration of Approving Spocifications and Ordering an Advertisement
for Side for the Acquisition of a Loader for the Public Works Department
In November of 1981, the City purchased the 930 Caterpillar Loader C�
from Ziegler, Inc., and as part of the purchase received a contract
which guaranteed a minimum repurchase price of $63,400.00 for the
loader anytime within five years. The original purchase price of
the loader wan 561,371.00; and as a result of the contract, the City
could return the loader and receive more money than it paid for it
five years ago. The Public Works Director, John Simola, noted that
although the loader Is in basically good condition, he noted that
the City has experienced some transmission problems that have not
been completely resolved and recommended that the City consider advertising
for bids for a new loader and return the old one and get the $63,400.00
back. The present value of the loader on the open market was estimated
at somewhere around $50,000.00; and as a result, the City would benefit
to the tuna of approximately 513,000.00 over its present value.
It was estimated that a new loader with slightly more horsepower
would cost approximately 585,000.00 resulting in a net additional
coat of approximately $23,000.00; but it was noted that the City
would have a new loader with a life expected of between 7 and 10
years.
After further discussion, motion was made by Maxwell, seconded by
Fran Fair, and unanimously carried to approve the specifications
for the new loader and to authorize advertisement for bids returnable
9:00 a.m., August 25, 1986.
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654
j
Council Minutes - 8/11/86
l_
9. Consideration of Setting a Special Budget Meeting.
i During the past two years, the City Council hes met in a special
session to discuss goals and objectives for the upcoming year prior
to the preparation of the preliminary budget. Due to the anticipated
absence of some of the Council members, it was the consensus to hold
the meeting regarding goals and objectives at the same time the preliminary
budget meeting is hold in early September.
10. Consideration of Setting a Special Meeting to Interview Computer
Consultants.
Administrator Eidem noted that the City received four proposals from
firms interested in being the City's consultant for computer selection
process. The staff has done reference and background checks on each
of the firms and has recommended that two consultants be interviewed
for further consideration. Mr. Eidem noted that the City staff will
be meeting with the two consultants on Wednesday, August 13, prior
to City Council interviews with the consultants. The two firms recommended
for further consideration were Carroll, Franck 6 Associates of St.
Paul, Minnesota, and a proposal from Gruys Johnson & Associates,
the City's auditing firm, in combination with Management Advisors,
Inc.
Motion was made by Fran Fair, seconded by Maxwell, and unanimously
,f carried to set a special meeting for the purpose of interviewing
the computer consultants at 5:45 p.m., Monday, August 25, 1986, prior
to the regularly scheduled Council meeting.
11. Distribution of Preliminary Draft of a Contract for Wastewater Treatment
Plant Operations.
Public works Director, John Simola, noted that negotiations with
Professional Services Group, the selected contractor for contract
operations at the Wastewater Treatment Plant, have been completed,
and a preliminary draft of a proposed contract in in its final stages.
The preliminary draft was distributed to the Council members for
their review, and it in expected that a final draft will be available
for Council action at the August 25, 1986, Council meeting.
Rick Woltsto)Aar
AsListant Administrator
Council Agenda - 8/25/86
4. Consideration of Executing a Contract with PSG for the Operation
of the wastewater Treatment Plant. (J.S.)
A. REFERENCE AND BACKGROUND:
At the August 11 meeting, we presented the Council with a draft contract
from Professional Services Group for the operation of the wastewater
Treatment Plant. :his draft addressed most of the committee's concerns
and requests for changes. Those concerns or requests for changes
were included with the agenda supplement. Since that time, PSG has
assembled a final draft and addressed every one of the concerns and
requests from the negotiation committee. This final draft is enclosed
for your review.
To summarize the agreement, it is for a period of 40 months beginning
September 1, 1986, and ending December 31, 1989. PSG will be responsible
for operation and maintenance. This includes not only salaries,
but all of the supplies and utilities needed to run the plant. They
will make employment offers to -the two employees left at the wastewater
Treatment Plant, Al Meyer and Tony Strands. These employment offers
will ba equal or batter in dollars for both wages and benefits that
these employs a ere currantly receiving from the City of Monticello.
The employees will be guaranteed a 6 -month evaluation period and
would not be dismissed without just cause.
Should problems arise, the City can return to operating the plant
�- itself within 120 days with the help of the contractor, and have
the opportunity to rehire the previous City employees. PSG has guaranteed
operation of the plant in that it will meet permit limitations for
effluent within the design capabilities of the Treatment Plant.
PSG has agreed to run the Treatment Plant at a cost of 522,083.00
per month, or $265,000.00 per year. There are basically only four
ways for PSG to increase the contract cost.
1. A change in the scope of services. This would be, for example,
if we asked the firm to take over our lift station mdintanance
and operation or do other work outside the contract.
2. An increase in the actual coat of electricity or natural gas.
3. Capital improvements to the wastewater Treatment Plant which
coat in excess of 51,000.00 each.
4. Catastrophic repairs that were beyond the control of Professional
Services Group and exceed $2,000.00 each, or repair and maintenance
costs not attributable to negligence on the part of PSG which
total more than 525.000.00 in a given year.
The figure of $265,000.00 per year is a not-to-excoed amount in all
cases except those mentioned above. In the contract, you will find
language that if PSG is able to operate the plant for lase than S265,000.00,
an
Council Agenda - 8/25/86
the City of Monticello will first receive 1008 of any maintenance
and repair costs budgeted but not used, and that we will receive f�
758 of any of the remaining amounts under the budget amount of $265,000.00
in the form of a rebate.
The 1987 Budget for operation and maintenance of the City of Monticello
Wastewater Treatment Plant facility, if run by City staff, is estimated
at $261,100.00. This is based upon existing management and hiring
two new full-time City employees at 801 of the prevailing union wage.
This budget floes not include items such as workmen's compensation,
insurance, overhead for administration and finance, nor does it include
any insurance costa other than medical and life for employees.
It is the opinion of the contract negotiations committee that this
is the beet possible contract with the best possible contractor for
operation and maintenance of the Monticello Wastewater Treatment
Plant facility. This agreement is the result of two years of research
and work by the Monticello City staff and four months of research
and work by the selection committee and negotiation committee, which
included Hank Mayer of Boling Consultants from Moline, Illinois.
Mr. Mayer and his firm have a significant background in the field
of contract operations of municipal wastewater treatment plants and
was instrumental throughout our process. Gary Pringle, the City
Attorney, has also been involved throughout the process with review
of our Request for Proposals and contracts.
B.
ALTERNATIVE ACTIONS:
1.
The first alternative would be to enter into an agreement with
Professional Services Group for contract operation of the Wastewater
Treatment Plant beginning September 1, 1986, as outlined in the
proposed contract.
2.
Alternative 02 would be to continue with the existing management
of the Wastewater Treatment Plant, add two now City employees,
with the possibility of a third new employee in the future.
7.
The third alternative would be to change or modify the existing
management at the Wastewater Treatment Plant and to develop a
management plan for the Wastewater Treatment Plant which would
have similar results to the contract operations.
C.
STAFF RECOMMENDATION:
It
is the recommendation of the selection/negotiation committee that
the
City Council choose Alternative 01 and enter into a contract
with Professional Services Group. We give for the following reasons
those outlined in Hank Mayar-s letter to the Mayor and City Council
dated
July 2, 1986.
1.
Cost being incurred to "run" the plant at efficfenciew much greater
than that required by discharge standards.
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Council Agenda - 6/25/86
2. Lack of -long-term" maintenance of plant equipment and facilities.
3. Staffing deficiencies due to employee absences and requests from
treatment plant management for additional personnel.
6. Lack of adequate training of present staff.
5. Lack of proper sludge management techniques being practiced at
the plant.
6. Improper operation of various plant equipment items which required
an increase in gas and electrical consumption with resulting
increase in utility costs.
7. Improper management at the plant.
8. Poor record keeping practices.
9. Lack of communication between "plant" and "City Nall."
It is the opinion of the committee that a contract with Professional
Services Group would address all of the above concerns and result
in long-term overall lower costs and safeguarding of the City of
Monticello's investment in its wastewater Treatment Facility. ,
D. SUPPORTING DATA:
Copy of the final draft of agreement; Copy of the proposed 1987 Budget
for the operation of the City of Monticallo-a wastewater Treatment
Plant by the City; And if it arrives, a copy of the operation budget
by Professional Services Group. There is a concern as to the actual
amount of repair and maintenance budgeted by PSG.
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s�1 PROFESSIONAL SERVICES GROUP, INC.
l UTILITIES MANAGEMENT DIVISION
i Rydal Executive Plaza -Suite 330 • P.O. Box PSG - Rydai. PA 19046 - (215) 572-8200
City of Monticello
250 East Braodway
Monticello, Mn. 55362-9245
INVOICE 53 7 7 PSG JOB #
DATE 8/20/86 CLIENT JOB #
PROJECT NAME
.: PLEASE MAIL REMITTANCE TO '
•PROFESSIONACSERVICES GROUP. INC.
P.O. BOX 8500-54525. -
•PHILADELPHIA.PENNSYLVANIA 19178
C6122.A + INVOICE AMOUNT
522,083.35
PROGRESS BILLING #
PARTIAL s FINAL _
Operation and Maintenance of the Monticello Wastewater
Treatment Plant for the month of Septanber 1986:
LTotal Armunt Due This Invoice
$22,083.35
.522,083.35
CanaAun Ivo.N" • agpr _ Myarww -w+L -- . V.. wvs. Las W_ - 0-W � m T__ Nw_ . 0" Y,,uts
A�LY11A - O91a011 • M M"AAOL1a - OCCANCIM rI - NILAWLh1IA *BAN 01900 - VY PO"C19CO
PROFESSIONAL SERVICES GROUP, INC.
August 19, 1986
John Simola
MONTICELLO CITY HALL
250 East Broadway
Monticello, MN 55362
Dear John:
Enclosed is the corrected agreement for your review.
Also enclosed is the first invoice for the month of September. 1
I plan to be back in the office Friday if you have any questions. .E
Very truly yours,
Ilu K7)
Michael Robbins
Senior Vice President
MR/olr
Attachment
I
Ryoal Executive Plaza • Suite 330 • P.O. Box PSG 9 Rydal, PA 1904 0 (215) 572-8200
10PROFESSIONALSERVICES GROUP, INC.
August 19, 1986
Mr. Tom Eiden
City of Monticello
Monticello City Hall
250 Broadway
Monticello, MN 55362
Dear Mr. Eiden:
This letter is to provide you insight to PSG employment
practices.
PSG employs people without regard to age, religion, color,
sex, race or sexual preference. It is our policy not to
discharge employees solely for economic gain. For example,
we will not terminate one employee because we can locate
another who will perform the same work for lesser
compensation. However, we will not maintain any job
position that is not needed. For example, it is our policy
to provide our client cost effective operations but not
through the use of adverse employment policy.
It is our intent to hire all existing full time employees
currently employed at the Monticello Wastewater Treatment
and to continue their employment unless PSG has just cause
to terminate their employment. Examples of "just cause" are
insubordination, theft, misrepresentation, excessive
absenteeism, attitudinal problems, abuse of chemical
substances, use of facility for personal use, etc.
We hope this conforms with the understanding you have
regarding our employment practices.
Very truly yours,
���,.�
�Mich..lbins
Senior Vice President
Rydal Executive Plaza • Suite 330 • P.O. Box PSG • Ryoat, PA 19048 • (215) 5728200
0
AGREEMENT FOR OPERATIONS AND
MAINTENANCE SERVICES FOR THE
MONTICELLO WASTEWATER TREATMENT FACILITY
THIS AGREEMENT is made on this 25th day of Aug, 1986, between the
CITY OF MONTICELLO hereinafter referred to as CITY, whose address is
250 EAST BROADWAY, MONTICELLO, MINNESOTA 55362-9245 and PROFESSIONAL
SERVICES GROUP, Inc. hereinafter referred to as PSG, whose address is,
Rydal Executive Plaza, Suite 330, P. 0. Box PSG, Rydal, Pennsylvania
19046.
CITY and PSG agree:
1. GENERAL
1.1 All definitions of words or phrases used' in this
Agreement are contained in Appendix A.
1.2 All grounds, facilities, equipment and vehicles now
owned by CITY or acquired by CITY shall remain the
property of the CITY.
1.3 This Agreement shall be governed by and interpreted in
accordance with the laws of the State of MINNESOTA.
1.4 This Agreement shall be binding upon the successors and
assigns of each of the parties, but neither party will
assign this Agreement without the prior written consent
of the other party. Consent shall not be unreasonably
withheld.
1.5 All notices shall be in writing and transmitted by
Certified mall to the respective addresses as noted in
Appendix 1.
1.6 This Agreement, including Appendices,"A" through "K" is
the entire Agreement between the parties. This
Agreement may be modified only by written agreements
signed by both parties. Wherever used, the terms "PSG"
and "CITY" shall include the respective officers,
agents, directors, elected or appointed officials, and
employees.
1.7 If any term, provision, covenant or condition of this
Agreement is held by a court of competent jurisdiction
to be invalid, void or unenforceable, the remainder of
the provisions shall remain in full force and effect
and shall in no way be affected, impaired or
invalidated.
1.8 It is understood that the relationship of PSG to CITY
is that of independent contractor.
0
SCOPE OF SERVICES - PSG
PSG Shall:
2.1 within the design capacity and capability of the
Project, manage, operate and maintain the Project so
that effluent discharged from the Project meets the
requirements and conditions specified in Appendix C.
PSG may alter the process and/or Facilities to achieve
the objectives of this Agreement; provided, however,
that no alteration shall be without the "CITY's written
approval if alteration shall cost in excess of One
Thousand Dollars ($1,000.00).
2.2 Provide and document all Maintenance and Repairs for
the Project, exclusive of PSG plant labor. The total
amount for Maintenenace and Repairs that PSG shall be
required to pay will not exceed twenty five thousand
dollars (S25,000) during any year of this Agreement.
CITY shall pay for all Maintenance and Repairs in
excess of the Maintenance and Repairs limit. PSG
non -project labor may be used and charged to City where
economic or other benefits to City appear likely but
only with prior City approval.
2.3 Provide CITY with an accounting of Maintenance and
Repairs on a monthly basis. PSG will provide CITY with
detailed invoices for Maintenance and Repairs
expenditures over the Maintenance and Repairs limit.
2.4 Rebate to CITY entire amount that actual Maintenance
and Repairs expenditures are less than the Maintenance
and Repairs limit in any year of this Agreement.
2.5 Provide PAMP, a computerized preventative maintenance
program. Such program will document maintenance
activities, as well as, maintain historical
information. All computer hardware located on site
will become the property of CITY at the termination of
service under this Agreement. PAMP may be purchased by
CITY at the termination of services under this
Agreement for seven thousand dollars (57,000). This
cost includes all foes and liconsea for databases
employed in the PAMP program. Such sum to bo paid to
PSG in accordance with Article 5.2.
2.6 Develop repair or replacement guidelines for Capital
Expenditures. Such guidelines will incorporate, among
other items, notification to CITY of need to replace
and a standard requisition for such Capital
4 Expenditures,
2.7 Provide a computerized process control system. Such
to/
R
system will maintain accurate current records, as well
as historical data and trends. Such software may be
purchased by CITY at the termination of services under
this Agreement for one thousand five hundred dollars
($1,500). Such sum to be paid to PSG in accordance
with Article 5.2.
2.8 Maintain the present industrial waste sampling and
laboratory analysis program as described in Appendix D.
Results of all industrial sampling and testing shall be
reported to CITY in a timely manner.
2.9 Perform all laboratory testing and sampling required by
the plant performance portion of current NPDES permit,
process control and the current disposal program. Any
changes in requirements by any authorized Agency,
City, County, State or Federal Governments may increase
or decrease the scope of this Agreement.
2.10 Prepare the required NPDES permit plant performance
reports and submit these to CITY for transmittal to the
appropriate agencies.
2.11 Offer employment to all personnel of CITY assigned
full-time to the Project as of the effective date of
this Agreement providing benefits and wages that are
comparable to those wages and benefits provided by
CITY. PSG will continue to provide employment to all
personnel who accept employment with PSG for a minimum
of six months (6), provided they perform their duties
in a satisfactory manner. Notwithstanding a reduction
in labor force, no employee shall be terminated without
just cause.
2.12 Staff the Project with employees who have mot the
certification requirements of the State of Minnesota.
2.13 Provide to all employees PSG's extensive training
program. Such program contains classroom and hands-on
training as defined in Appendix G.
2.14 Provide adequate staff to properly operate and maintain
the Facility to meet regulatory agency and safety
requirements eight (8) hours per day Monday through
Friday, except for holidays. on Weekends and holidays,
staff will be provided for two (2) hours each day. Such
staff shall be coordinated with the City Water
Department. Standby on-call personnel will be
available seven days per week, twenty-four (24) hours
per day. }
2.15 Cooperato with City to coordinate cost accounting and
inventory control procedures.
0
2.16
Pay all cost incurred in normal Project operations.
2.17
Provide for the disposal of sludge to the permitted
disposal sites none of which are futher than six (6)
miles from Project. PSG will assist City to acquire
additional permitted sludge disposal sites.
2.18
Provide PSG's full-time safety program including an
emergency response plan and hazardous material
communication program. PSG's emergency response plan
will interface with CITY's emergency response plan.
2.19
Develop a sludge management program that will include
land use and an appropriate recordkeeping system.
2.20
Assist CITY to enforce existing and new equipment
warranties and guarantees.
2.21
Provide reasonable access to City's representative to
audit PSG records of Direct Cost of Project.
2.22
Provide twenty four (24) hour per day access to Project
for CITY'S personnel. Visits may be made at any time
by any of CITY'S employees so designated by CITY'S
jj
1`
Representative. Keys for Project shall be provided to
CITY by PSG. All visitors to the project shall comply
with PSG's operating and safety procedures.
2.23
Provide an inventory of City owned equipment (ie
vehicles; portable pumps, air compressors, generators
etc.), not permanently affixed to the property that is
in use at the Project when PSG begins service. PSG
agrees to comply with the City's Property Management
Control Ordinance attached herein as Appendix H for all
such equipment purchased after the effective date of
this agreement whose cost exceeds 6300.00.
2.24
Provide CITY, on a monthly basis, a report of Direct
Cost similar to the format and in the level of detail
shown in Appendix E.
2.25
Coordinate and cooperate with CITY'S engineer and
contractor to facilitate tho completion of any
expansion or improvement to the Project.
2.26
Cooperate with CITY to acquire mutual aid agreements
with City dopartments.
8
J
2.27
Provide at CITY'S request a performance bond to
guarantee performance by PSG. CITY will pay the cost
of such bond in accordance with Article 5.2.
2.28
Perform other related services to the Scope of Services
as directed by CITY. Such services will be invoiced to
CITY at PSG's Cost plus ten percent (30%).
2.29
Periodically update and maintain Project 0 & M Manual.
2.30
Provide an inventory of existing supplies when PSG's
service commences. In the event of termination of this
Agreement, the final supplies inventory shall be equal
in dollars to the inventory at the commencement of
PSG's service.
2.31
PSG shall not permit its employees to utilize any part
of the Project for any personal use what -so -ever.
2.32
PSG shall make best efforts to comply with relevant
city policies. It is recognized that various City
policies are inappropriate to PSG.
2.33
Provide adequate security at the Project to protect
the property and the general public.
%
2.34
PSG shall make best efforts to minimize odor at the
r
Facility.
3. SCOPE
OF SERVICE - CITY
CITY
shall:
3.1
Provide for all Capital Expenditures.
3.2
Maintain all existing Project warranties, guarantees,
easements, and licenses that have been granted to CITY.
3.3
Pay all property, franchise or other taxes associated
with the Project.
3.4
Provide PSG, within a reasonable time after request,
any piece of CITY'S heavy equipment that is available
so that PSG may discharge its obligations under this
Agreement in the most coat -effective manner as
stipulated in the Mutual Aid Agreement attached as
Exhibit J.
3.5
Provide all licenses for City owned vehicles used in
connection with the Project.
3.6
Provide for PSG's use all vehicles and equipment
presently in use at the Project.
8
3.7
Provide hauling and disposal of grit, screenings, and
trash from a dumpster provided at the Project by the
City at no cost to PSG.
3.8
Provide potable water in reasonable quantities at no
cost to PSG.
3.9
Permit PSG full use of existing sludge disposal permits
at no cost to PSG.
4. COMPENSATION
4.1
CITY shall pay to PSG as compensation for services
performed for 40 months under this Agreement a base fee
of two hundred thousand dollars (5200,000).. The
details by time period are presented in Appendix E. The
base fee covers PSG's start up costs, indirect costs
and profit. For additional terms of this Agreement the
base fee shall be determined as hereinafter specified
in Article 4.3.
4.2
The estimated total Direct Cost for providing services
under this Agreement is six hundred eighty three
thousand three hundred thirty four dollars ($683,334).
The details by time period are presented in Appendix E.
If actual total Direct Cost is less than the estimated
ii
total Direct Cost, then PSG will rebate to the CITY
seventy five percent (758) of the difference after one
hundred percent (1008) of the difference in the Repair
and Maintenance is rebated. PSG will be responsible
for Direct Cost that is greater than the estimate. For
additional terms of this Agreement the estimated
Direct Cost shall be determined as hereinafter
specified in Article 4.3.
4.3 The base fee and estimated total Direct Cost for
additional terms of this Agreement shall be negotiated
three (3) months prior to January 1, 1990.
4.4 CITY will pay as additional compensation to PSG any
increases in Electricity Cost and Natural Gas Cost that
are a result of rate increases that occur during any
year. The additional compensation will be calculated
based upon a actual usage up to a maximum of 120,000
KWN of energy and 220 KW of demand per month for
electricty, and up to a maximum of 5,000 therms per
month for natural gas. PSG will invoice any such cost
increase Quarterly.
4.5 In the event that a change in the scope of services
provided by PSG occurs, CITY and PSG will negotiate a
commensurate adjustment in base fee.
PAYMENT OF COMPENSATION
5.1 One Fortieth (1/40) of the base fee and estimated
Direct Costs shall be due and payable on the first of
the month for each month that services are provided.
Invoices must be tendered by PSG to the City a minimum
of five (5) days prior to the fourth (4th) Monday in
the month preceding.
5.2 All other compensation to PSG is due five (5) days
following the fourth Monday of each month when invoices
have been presented to the City five (5) days prior to
the fourth (4th) Monday of said month.
5.3 Any monies arising from Articles 2.4 and 4.2 will be
paid to the CITY within sixty (60) days after the end
of the initial term of this Agreement.
5.4 CITY shall pay interest at an annual rate equal to the
Philadelphia National Bank's prime rate plus one and
one half percent (1-1/2%) said amount of interest is
not to exceed any limitation provided by law, on
payments not paid and received within fifteen (15)
calendar days, such interest being calculated from the
due date of the payment.
INDEMNITY, LIABILITY AND INSURANCE
6.1 PSG hereby agrees to and shall hold CITY harmless from
any liability or damages for property damage or bodily
injury, including doath, which are directly
attributable to PSG's negligence under this Agreement,
whether such negligence be by PSG or by subcontractors
of PSG.
6.2 CITY agrees to and shall hold PSG harmless from any
liability or damages for property damage or bodily
injury, including death, which negligence is directly
attributable to the City, its employees and agents
excluding negligence directly attributable to PSG.
6.3 PSG shall be liable for those fines or civil penalties,
imposed by a regulatory agency for violations of the
effluent quality requirements contained in Article 2.1
that are directly attributable to PSG's negligence.
CITY will assist PSG to contest any such fines in
administrative proceedings and/or in court prior to any
payment by PSG. PSG shell pay the cost of contesting
any such fines. These costs shall include but not be
limited to the coots the City may incur through their
own professional representation.
a
43PROFESSIONALSERVICES GROUP, INC.
October 10, 1986
Mr. John Simola
Public Works Director
MONTICELLO CITY HALL
250 East Broadway
Monticello, MN 55362
Dear Mr. Simola:
Enclosed is the September monthly report for the wastewater
treatment facility for your review.
I plan to be in Monticello October 14 and would like to
personally review the report with you.
Please let me know if this is a convenient date.
Very truly yours,
t -4 -
Michael D. Nelson
Vice President
Operations
MDN/oir
Enclosure
cc: S. Sunt
Rydal Executive Plexa - Suite 330 • P.O. Box PSG • Rydal, PA 19048 • (215) 5728200 , r'.
U
MONTICELLO WASTEWATER TREATMENT PLANT
Monthly Report - September 1986
Executive Summary
The first month of PSG operation went smoothly.
Effluent limitations were mot and process adjustments
were made to assure cost effective operation. Safety
and regular training efforts have already begun.
Emphasis on housekeeping and plant appearance has increased.
The immediate challenge of reducing the digested sludge
inventory is of primary concern. Plans call for substantial
liquid sludge application in October.
J
a
Plant Performance
The facility met all NPDES requirements for the month.
A detailed sheet is included in the appendix and summarized
data appears below:
Flow Effluent C BOD mg/1 Effluent SUSPENDED SOLIDS mg/1
(Mgd)
0.379 Actual/Permit Actual/Permit
13/25 19/30
Processes utilized this month included preliminary,
primary, trickling filter and activated sludge treatment
followed by chlorination. Sludge solids were gravity
thickened and anaerobically digested. Weather conditions
limited land application of digested sludge to 3,340 lbs. of
dry solids. For the month of October, plans call for land
application of 88,000 lbs of dry solids.
Process adjustments this month were aimed at making
better use of the trickling filters and thus placing less of
a load on the aerators. The solids inventory in the
aeration process was substantially reduced and changes made
to more effectively gravity thicken sludges.
in order to continue with these process strategies,
room must be made available in the digester. Prior to
winter, 100,000 pounds of solids must be removed.
Maintenance Activities
During the month, all preventive maintenance tasks were
accomplished as well as some special projects. Below is a
sampling of activities:
1) All parts and supplies were inventoried and
results sent to City
2) Preventive Maintenance Activities
a) Changed oil - Waukeshau
b) Checked lubrication oil levels for all
plant equipment
c) Made an inspection of plant facilities to
identify equipment that is presently
inoperable
d) Lubricated chassis on sludge equipment and
chocked all lubrication oil levels
e) Purchased thermostat for maintaining garage
f) Accepted price bid from local HVAC dealer for
boiler exhaust stack replacement; atack will
be replaced when parts are delivered
Vj
g) Inspected and cleaned nozzles on odor control
equipment
h) Cleaned out South final clarifier and removed
skimmer for repairs
i) Willard Smith from Sioux City was in and
inspected all electrical facilities
3) Paint -up, fix -up items
a) Painted sludge loading facility
b) Painted valve operators on South side of plant
c) Primed around primary clarifiers
d) Cleaned foreign material from trickling filter
media
4) Improved operation of Waukeshau
a) Set gas pressure regulator on Waukeshau to
pressure designed by Waukesau Operations and
Maintenance Manual
In reference to housekeeping/appearance within the plant, a
variety of inspection tours have been conducted by the plant
manager and Mike Nelson. Lists have been developed and
activities scheduled. Examples of improvements include:
a) removal of unauthorized vehicles
b) painting of sludge unloading piping
c) cleaned control room and laboratory
For the month of October we plan to:
a) finish painting primary clarifier piping
b) clean aeration building
C) clean boiler room
d) clean gravity thickener pump room
e) clean equalization tank room
f) drain South final clarifier (rainwater)
g) wash clarifier weirs
An IOM compatible computer is on site and work has
begun to install PAMP.
Safety
On September 2, 1986, PSG's first employee safety
meeting was hold. Topics covered included:
1) Reporting accidents
2) Confined spaces
3) Lifting -�
Alao, tho PSG Safety Manual was presented to the plant
omploycos for their review. The next meeting topic will be
on safety in the lab. Uniforms were ordered for plant
employees on September 25, 1986.
�S
Mike Nelson from Corporate Headquarters toured the
plant on September 2 and 29 and made several suggestions to
improve plant safety.
Traininq
Resident staff has a good training foundation. This is
evidenced by their level of certification and the variety of
courses and seminars attended.
During the month, on-the-job training in the areas of
process control, sludge disposal equipment, operations and
maintenance was conducted. Special emphasis was placed on
laboratory tests.
An informal seminar on energy conservation was given by
Mike Nelson on September 29.
In October, training topics contemplated include sludge
disposal, unit processes, maintenance, safety and cost
control.
Steps have been taken to build a training program.
Employee skills are being evaluated presently and training
directions will be mapped out.
Pretreatment
The existing program has been reviewed. During
September plant personnel were trained in the lab tests.
Ton samples were collected and analyzed for Wrighteo, NSP
industry. Detailed results appear in the appendix.
Sludoo Manaqement
In September PSG organized pertinent records, prepared
rolling stock for program implementation including a check
of inventory and defined a sludge quality monitoring
program. Julie Berke, a PSG land application foremen,
reviewed sludge handling equipment and sites on September
19 and prepared a written report.
Weather did not allow full scale production to begin in
September. A trial run was conducted on September 30 where
3,340 lbs. of solids were applied.
For October an important production goal is 88,000 lbs.
This will allow room for winter operation.
Sufficient permitted land is available for the present.
Additional land will be acquired over the winter.
Public Relations
No activities in September. Plant management attended
city council hearings on September 8 and 22.
Financial Information
A financial reporting format is presented in the
appendix. The first page details all direct costs for the
month and accumulates them by project to date. The second
page tracks maintenance and repair costs.
Financial data for September will be presented in the
October monthly report.
Energy Conservation
As part of our work plan a preliminary energy audit was
performed. eased on this audit, process changes were made
so that less energy is spent burning up solids and more use
is made of energy efficient trickling filters. A more
detailed audit is planned and Tony Strands has been
appointed Energy Warden. Future activities also include
identifying ways to reduce heat loads during winter
operation.
Planninq
Facility inspections for the purpose of recommending
capital program suggestions are underway. Preliminary work
indicates that roof insulation on digester three has
separated from the cover and water is collecting between the
insulation and the deck. Thought also should be given to
partitioning the garage/workohop to reduce heat loads and
make a more functional personnel area.
Included in the appendix is a draft requisition form
for repair/replacement (capital expenditure) for city
review.
I
APPENDIX
NPDES PERMIT DATA
PRETREATMENT
FINANCIAL DIRECT COST VERSUS MONTH
FINANCIAL MAINTENANCE AND REPAIR COSTS
REQUEST FOR CAPITAL EXPENDITURE
;rtllo /dnkA�skr 7tafinn+f �l£vt
,MONTHLY OPERATION REPORT OF WASTEWATER TREATMENT FACILITY
r.MECHANICAL FACILITY,
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ADDITIONAL ►ARAYET(( DATA
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TOTAL t^.C./MOV. AV --.AOR iLM DAY BOD S.S. PH REPORTED !{ICS LCw
xt I I�ocl�=becbacbcca I I I I C�C000
�t'J.9n,�/e c.�As 1:,•>,.,,•%;n .c:.sn �yri�. �irfr !.^.i hcle•'.::y f.'•,•e..L,�ij
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DAT.PM-TA PUMPArZ TOTAL FTS. AVE F-RS/DA� AVE Gjs—T/t)j 20D ma/,J ss r.2/1 ?R*j co
MATCR
4
16
7
9 k { ! { j I I
lo
12
13
14 i '
15
7I f
le
i9
20
2
22 1-1/1.10 AG, ow
23
24
25
26 I i k
27
28
29
30
31
ITOTAL FMT X 911 aflm TOTAL GAL. eOD # ss
I
PROFESSIONAL SERVICES GROUP, INC.
MONTICELLO MINNESOTA WASTEWATER TREATMENT FACILITY
OPERATING EXPENSE STATEMENT
MONTH OF 1986
CURRENT YEAR TO
ACCOUNT ACCOUNT BUDGET MONTH DATE
NUMBER
5501
Labor
9333
Salaried
5502
Labor
15379
Hourly
5503
Labor
-0-
Office
5516
Employee
515
Benefits
5537
Health
2573
Insurance
5538
Dental
141
Insurance
5517
Employee
-0-
Thrift
5539
Long Term
89
Disability
5574
Provision for
1211
Pension
5540
Life Insurance
102
5543
Workers
2568
Compensation
5564
Payroll
860
Taxes
5566
Telephone
800
5523
Computer
667
Expense
5527
Books, Mag.
25
Subscriptions
5511
Lab Supplies
1200
5510
Outside Lab
200
Services
5556
Repair, Maint.
6075
General
5558
Repair 6 Maint.
100
Service Equip.
5532
Field Equip.
133
Rental
5572
Vehicle
-0-
Leasing
5542
Vehicle
-0-
Insurance
5568
Repair & Maint.
600
Vehicles
5536
Gasoline
1796
5541
Liability
1006
Insurance
5534
Food Travel
700
Lodging
5535
Relocation
1300
5528
Dues &
25
Registration
5550
Professional
100
Development
5507
Temp. Help
1000
5508
Subcontractor
565
5509
Consultants
-0-
5545
Legal and
-0-
Prof. Fees
5533
Office Equip.
166
5559
Office Equip.
50
Repair & Maint.
5546
Postage
300
5548
Printing &
332
Office Supplies
5547
Freight &
100
Delivery
5591
Util. Elect 12,635
5592
Utilities Gas
5332
5593
Utilities
-0-
Fuel Oil
5577
Chlorine
304
5583
Odor Control
-0-
5584
Chemicals
50
General
68,332
IS
J
PROFESSIONAL SERVICES GROUP
MONTICELLO WASTEWATER TREATMENT FACILITY
Maintenance and Repair Costs - Expense Statement
MONTH OF 1986
ACCOUNT ACCOUNT Current Month YTD
NUMBER
5556
Repair and
Maintenance General
5508
Subcontracts
5502
Pre -approved Non Facility
PSG labor including Food,
Travel, Lodging
5532
Field Equipment Rental
5568
Maintenance
of Vehicles
5507
Temporary Help
5558
Maintenance
of Service Equipment
5547
Freight
TOTAL
r
NJ
PROFESSIONAL SERVICES GROUP
REQUEST FOR CAPITAL EXPENDITURE
Description of Item or Activity
Need and Priority
Repair Versus Replacement Option
Coats - Material & Supplies
Equipment
Subcontract
Labor and Materials
TOTAL COSTS ..........................
Prepared by
Approved Disapproved
Client Comments:
Attachments Provided
Estimates, Etc. 0
_l
.J