R2009-111 AUTHORIZING AN AGREEMENT WITH THE SANITARY DISTRICT OF DECATUR

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( , ,. - Public Works Memorandum NO. 2009-52 DATE: June 26, 2009 TO: Honorable Mayor McElroy and City Co ncil FROM: Ryan P. McCrady, City Manager ^ Richard G. Marley, P.E., Director of Public Works ^� � SUBJECT: Intergovernmental Agreement between the Sanitary District of Decatur and the City of Decatur for Pump Station Maintenance INTRODUCTION: It is recommended that the City Council approve the attached resolution authorizing an Intergovernmental Agreement between the City of Decatur and the Sanitary District of Decatur(SDD) effective May 1, 2009, for the maintenance of City owned sanitary sewer pump stations, and that the Mayor be authorized to execute the agreement and the City Clerk to attest. The agreement authorizes the City to reimburse the SDD for normal maintenance at the rate of$12.35 per day per pump station for 19 pump stations for a total of$85,647.25 per year. The agreement also authorizes the City to reimburse all actual costs for equipment, repair parts, and/or costs of installation purchased by the District. BACKGROUND: Prior Council Action: July 1, 2002—Council approved Resolution R2002-122 authorizing the City to enter into an agreement with the Sanitary District of Decatur for the Maintenance of Certain City of Decatur Pump Stations for a yearly amount of$47,733.28 plus material and overtime costs. This reflected a rate of $7.69 per station per day. Maintenance costs paid to the Sanitary District have escalated in the 7 years since the agreement was first put in place and 2 pump stations have been added to the agreement. The most recent rate paid by the City was set at $9.17 per station per day plus materials and equipment in 2006. The City was informed by the District that beginning May l, 2009; the new daily rate for pump station maintenance would be set at $12.35 per station per day. Past maintenance cost increases were authorized administratively without Council action. Pump Stations Owned by the City The City owns 19 sanitary sewer pump stations (sometimes referred to as lift stations) at various locations throughout the City. In portions of the City, it is not possible to have waste water drain by gravity alone and it must be pumped to a higher elevation to allow it to drain into the City's sanitary sewer system. The Sanitary District of Decatur has maintained the City's sanitary sewer pump stations since 1988 when the City owned 14 stations. The maintenance of the pump stations was originally arranged through a letter agreement in 1988 between the Sanitary District and the Public Works Department. This maintenance arrangement has been beneficial to the City over the past years and was formalized through an Intergovernmental Agreement in 2002. The City is not staffed or equipped to provide the ongoing maintenance to the City's 19 sanitary sewer pump stations. It is critical that the stations remain in good repair and operation at all times. The Page � 1 '