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HomeMy WebLinkAbout7.d. Rural Water Systems AcceptanceF CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING'DATE:June 2, 1992 AGENDA ITEM- Rural Water System Acceptance AGENDA SECTION: New Business: PREPARED BY: Stephan Jilk AGENDR t ATTACHMENTS:`Propose Agreement Between the AF BY: University and the City ' To eliminate the problems of contaminated wells caused by the contamination of the groundwater on the University of Minnesota and which then was carried throughout northeast Rosemount the University agreed to build a "rural water system" which, would provide potable water to that area of eastern Rosemount affected by the contamination. This system has been completed and has been operated by the 'City, 'at the University's expense for the last several months. The system is fully operational and is meeting all .state and city operational guidelines. The few mechanical and electrical difficulties experienced with the system initially have been worked out and eliminated. The City had indicated to the University that if the University would build a system which was acceptable to the city and it provided potable water to those residents affected by the contamination that the city would accept the system, at no cost to city, and operate it We feel that this has been done and we have worked, with University officials to draft an agreement to officially transfer ownership of the system to the city. I would Like to take the opportunity to review the agreement with you on Tuesday and attempt to answer any questions you would have on it. I would then ask the Utilities Commission to make their final comments on it at their June 8th meeting so than you may approve it on June 16th. RECOMMENDEDACTION: NONE at this time Comments only COUNCIL ACTION: AGREEMENT THIS AGREEMENT made and entered into this day of 1992, by and between REGENTS OF THE UNIVERSITY OF MINNESOTA, a Minnesota public educational corporation, hereinafter"University", and CITY OF ROSEMOUNT, a Minnesota municipal corporation, hereinafter "City". WHEREAS, University has contructed two wells and water storage facilities on the property described on Exhibit A,. together with a distribution system, hereinafter •Water System", to serve the needs of certain residents of City; and WHEREAS, University has obtained utility permits from Dakota County and the State of Minnesota to construct, operate and maintain the Water System in the respective rights-of-way; and WHEREAS, pursuant to an agreement between University and City dated March 19, 1991, City has since July 1, 1991 provided the personnel to operate and 'monitor the Water System at University's expense, and WHEREAS, City has found the Water System to be functional and providing potable water to participating City residents in accordance with applicable codes as required in the plans and specifications for the Water System. NOW THEREFORE, IT IS AGREED:' 1. University warrants that construction was completed on July 1, 1991, according to the Plans and Specifications of the water system prepared by Dewild, Grant, Reckert & 1 Associates, Co., a copy of which is on file in the City Engineer's office, and which is incorporated herein by reference. University has provided City with two complete sets of "As built"drawings acceptable to the City Engineer. 2. University hereby assigns all design, construction and equipment warranties for the water system to City. University further warrants all work performed by it against poor material and faulty workmanship of its contracting for a period of five (5) years after July 1, 1991. University further warrants that, on date of this Agreement, the Water System will provide potable water that is fit for human consumption. City warrants that it will operate the Water system in accordance with the design capabilities of the system, instructions in the contractors and materials suppliers manuals, all applicable codes and regulations, and in otherwise safe and reasonable manner. City shall be responsible for its willful misconduct or negligence which results in equipment damage, failure, or system downtime. 3. University shall comply with all city, county, metropolitan, state and federal laws and regulations, including but not limited to subdivision ordinances,- zoning ordinances, and environmental regulations; and shall provide evidence acceptable to city, that the Water System has been approved and accepted by the Minnesota Department of Health. Also, University has furnished test results from samples taken at each residence or property connected to the Water System. 2 4. University agrees to hold City harmless and indemnify it from and against all liability for personal or bodily injury or damage resulting from.this Agreement, unless caused by the negligence of City. City agrees to hold University harmless and indemnify it from and against all liability for personal bodily injury or damage resulting from this Agreement, unless caused by the negligence of University, its agents or employees. 5. University shall take out and maintain until five (5) years after July 1, 1991, public liability and property damage insurance covering personal injury, including death, and claims for property damage which may arise out of University's work or the work of its subcontractors or by one directly or indirectly employed by any of them. Limits for bodily injury and death shall not be less than $500,000 for one person and $1,000,000 for each occurrence; limits for property damage shall be not less than $200,000 for each occurrence; or a combination single limit policy of $1,000,000 or more. City shall be named as an additional insured on the policy, and University shall file with City a certificate evidencing coverage. The certificate shall provide that City must be given ten (10) days advance written notice of the cancellation of the insurance. 6. By execution of this Agreeent, University hereby quit claims and assigns to City all rights in the Water System and the utility right-of-way permits, and City, upon acceptance shall release and discharge University from all - 3 obligations to City regarding -ownership, maintenance, repair, replacement or expansion of the Water System, except as otherwise provided in this Agreement. 7. University shall pay all reasonable costs incurred by it or City in conjunction with the Agreement and the construction of the Water System, including but not limited to, legal, planning, engineering and inspection expenses incurred in connection with acceptance of the Water System, and all City expenses relating to the preparation and execution of this Agreement. 8. University accepts liability and agrees to indemnify and hold City harmless for any contamination to the Water System that is a result of groundwater contamination from pollutants on University owned property from pollutants on the property when owned by the University. This provision shall continue in force and effect after the completion and acceptance of the Water System. This provision does not bar the identification of additional responsible parties. 9. Third parties shall have no recourse against City for construction of the Water System, or under this Agreement, and University agrees to indemnify and hold City harmless from any such claims. 10. Notices. Required notices to University shall be in writing and shall be either hand delivered to University, its employees, or agents, or mailed to University by registered mail at the following address: 4 Regents of the University of Minnesota c/o University Attorney 330 Morrill Hall 100 Church Street Southeast Minneapolis, MN 55455 Notices to City shall be in writing an shall be either hand delivered to the City Administrator, or mailed to City by registered mail in care of the City Administrator at the following address: Mr. Stephan Jilk City Administrator Rosemount City Hall 2875 145th Street West P.O. Box 510 Rosemount, MN 55066 11. This Agreement is subject to the approval of the Board of Regents of the University of Minnesota and by the City Council of the City of Rosemount. IN'WITNESS WHEREOF, City and University have executed this Water System Agreement to be effective the day and year first above written. 5 A . � CITY OF ROSEMOUNT By: E. B. McMenomy, Mayor By: Stephan Jilk, City Administrator REGENTS OF THE UNIVERSITY OF MINNESOTA By Its: By: Its: 6