R2002-122 AUTHORIZING INTERGOVERNMENTAL AGREEMENT

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. ^ � - Page 2 The maintenance of the pump stations was originally arranged through a letter (copy attached) dated May 12, 1988 from Robert S. Flick, District Director, to Bill Sands, City's Director of Public Works. This letter outlined the services to be provided by the District and the City's reimbursement to the District for its services. The arrangement has worked out well since 1988. However, staffs from the City and the District thought it to be in the best interest of both parties to formalize the arrangement into an intergovernmental agreement between the City and District. This was thought to be timely in respect to the District's request to increase its charges to the City which have not been increased since 1988. The City is not staffed or equipped to provide the ongoing maintenance and repairs to the pump stations. It is critical that the pump stations remain in good repair and operation at all times. The failure of a pump station could result in extensive sewer backups into homes, businesses, streets or other areas. The District is able to provide this service to the City through shared governmental cooperation to best serve the City's wastewater customers. An agreement (copy attached) has been prepared and reviewed by the staffs of the City and District. There are two basic changes between the letter of understanding and the proposed agreement. The first is that the City's quarterly payment to the District is increased from $7,392.00 to $11,933.32. The increase is considered reasonable given that the number of pump stations has increased and the increases that the District has experienced in the last 14 years for labor, insurance and vehicle operations costs. The second is that the $25 cost limit has been removed on parts and supplies before the City is billed. This is acceptable to City staff as this stipulation has caused confusion in the past in regards to its interpretation and intent. A typical example might be that the parts and supplies to make a repair may easily exceed $25, but no individual part or supply exceeded $25. POTENTIAL OBJECTION: There are no known objectors to this action. INPUT FROM OTHER SOURCES: Input was obtained from Dave Anderson, Director of Administration, of the Sanitary District of Decatur and John Couter, City's Corporation Counsel. STAFF REFERENCE: Steve Swanson, Director of Engineering & Infrastructure at 424-2747. The Director of Engineering & Infrastructure, Steve Swanson, will be in attendance at the City Council meeting to respond to questions on this matter.