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HomeMy WebLinkAboutItem 06.hChrist - r J. Petree Publi orks Director Financial Impact: $18,803.20 Related Documents (CIP, ERP, etc.): Aire Lakeville Date: 27 November 2012 Item No. APPROVAL OF A CONTRACT FOR MAINTENANCE OF HVAC SYSTEMS WITH NASSEFF MECHANICAL CONTRACTORS Proposed Action Staff recommends adoption of the following motion: Move to approve a contract with Nasseff Mechanical Contractors to perform heating, ventilation, and air conditioning (HVAC) preventive maintenance services at designated City facilities. Overview This contract encompasses the preventive maintenance requirements for heating and cooling systems in twelve City facilities. Included under the contract are the four fire stations, the Police Department, the Heritage Center, and Arts Center, two of the liquor stores, the Water Treatment Facility, the Central Maintenance Facility, and City Hall. Preventive maintenance activities involve the seasonal startup of heating and cooling systems along with detailed checks of temperature controls, fans, heat exchangers, filters, and the myriad other items associated with keeping the systems operational. The goal with this contract is to proactively eliminate problems through a formal schedule of preventive maintenance activities and minimize the potential for major system failures. Four vendors returned proposals with Nasseff Mechanical Contractors providing all required services at the least cost. The contract term expires on December 31, 2014. Staff reviewed the contract and associated documents and recommends its approval. Primary Issues to Consider • What is the effect of curtailing HVAC preventive maintenance? The purpose of preventive maintenance is to prolong the service life of HVAC systems and enable the City to proactively plan for upgrade and replacement rather than react to outages requiring emergency repairs. Supporting Information • A copy of the contract for services and tabulation of proposals are attached Budgeted: Yes Source: Department Operating Budgets Notes: Sufficient funds are programmed in each department's budget to meet the annual cost. THIS AGREEMENT made this 3 day of December 2012, by and between the CITY OF LAKEVILLE, hereinafter referred to as the "City ", and NASSEFF MECHANICAL CONTRACTORS, hereinafter referred to as the "Vendor ". THE CITY AND THE VENDOR, FOR THE CONSIDERATION HEREINAFTER STATED, AGREE AS FOLLOWS: 1. SCOPE OF SERVICES. The scope of services is detailed in the Contract Documents but generally consist of maintenance of the Heating, Ventilation, and Air Conditioning (HVAC) systems in designated City facilities. The Vendor agrees to perform the services as detailed in the Contract Documents. 2. CONTRACT DOCUMENTS. The following documents shall be referred to as the "Contract Documents ", all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This document entitled "Contract for Services ". B. HVAC Preventive Maintenance Specifications, Schedule A. C. Equipment Listing, Schedule B. D. Facility Listing, Schedule C. E. Vendor's Proposal If there is a conflict among the provisions of the Contract, the order in which they are listed above shall control in resolving any such conflicts with Contract Document "A" having the first priority and Contract Document "E" having the last priority. 3. OBLIGATIONS OF THE VENDOR. The Vendor agrees that the work contemplated by the Contract shall be fully and satisfactorily completed in accordance with the terms of the Contract Documents. 4. PAYMENT. CONTRACT FOR SERVICES A. The City agrees to pay and the Vendor agrees to receive and accept payment in accordance with the prices quoted, which is inclusive of sales tax, as set forth in the completed Proposal Form. Payment to the Vendor shall be made semiannually based on work completed and submission and approval of an invoice. B. Payments to Subcontractor. Pursuant to Minn. Stat. § 471.25, Subd. 4a, the Vendor must pay any subcontractor within ten (10) days of the Vendor's receipt of payment from the City for undisputed services provided by the subcontractor. The Vendor must pay interest of 1Y2 percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest 2 penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Vendor shall pay the actual penalty due to the subcontractor. 5. INDEMNIFICATION. A. The Vendor shall indemnify, defend and hold harmless the City and its officials, agents, representatives, and employees from any loss, claim, liability and expense (including reasonable attorney's fees and expenses of litigation) with respect to: (a) Worker's Compensation benefits payable on account of injury or death to any Vendor employee or to any employee of Vendor's subcontractors, where the injury or death arises out of or is in any way related to the work performed or to be performed under the Contract; (b) claims for personal injury, death, or property damage or loss asserted by a Vendor or subcontractor or any of their officers, agents, representatives, or employees where the injury, death, damage, or loss arises out of or is in any way related to the work performed or to be performed under the Contract; and (c) claims for personal injury, death, or property damage or loss as asserted by third - parties at the work site, where the claim is based in the whole or in any part on, or is in any way related to, any act or omission by Vendor, or Vendor's subcontractors, agents, employees or delegates. B. Vendor shall agree that the indemnities stated above shall be construed and applied in favor of indemnification. To the extent permitted by law, the stated indemnities shall apply regardless of any strict liability or negligence attributable to the City and regardless of the extent to which the underlying harm is attributable to the negligence or otherwise wrongful act or omission (including breach of contract) of Vendor, its subcontractors, agents, employees or delegates. Vendor also agrees that if applicable law limits or precludes any aspect of the stated indemnities, then the indemnities will be considered limited only to the extent necessary to comply with that applicable law. The stated indemnities continue until all applicable statutes of limitations have run. C. If a claim arises within the scope of the stated indemnity, the City may require Vendor to furnish a written acceptance of tender of defense and indemnity from Vendor's insurance company. Vendor will take the action required by City within fifteen (15) days of receiving notice from City. 6. RIGHTS AND REMEDIES. A. The duties and obligations imposed by the Contract Documents and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. B. No action or failure to act by the City or the Vendor shall constitute a waiver of any right or duty afforded by any of them under the Contract, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing. 3 7. GOVERNING LAW. The Contract shall be governed by the laws of the State of Minnesota. 8. INSURANCE. Prior to commencing work on the Contract, the Vendor shall furnish the City a certificate of insurance. The Vendor shall furnish and maintain during the project such public liability and property damage insurance as shall protect Vendor and any subcontractors performing work covered by the Contract from claims for damages by Workers Compensation Statute, and from claims for property damages or personal injury which may arise from operations under this Contract, whether such operations are by Vendor or by an subcontractor or anyone directly or indirectly employed by either of them and the amounts of insurance shall be as follows: A. Workers Compensation - as provided in the applicable law. B. Comprehensive Public: Liability - Personal Injury - $2,000,000.00 Property Damage - $2,000,000.00 C. Comprehensive Automobile: Liability - Personal Injury - $2,000,000.00 Property Damage - $2,000,000.00 All insurance policies (or riders) required by this Contract shall be (i) taken out by Vendor and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota, (ii) shall contain a provision that the insurer shall not cancel or revise coverage thereunder without giving written notice to Vendor as an insured party and to City as an additional insured at least thirty (30) days before cancellation or revision becomes effective, (iii) shall name Vendor as an insured party and City as an additional insured; (iv) shall be evidenced by a Certificate of Insurance listing City as an additional insured which shall be filed with the City. 9. TERM. The term of this Contract shall begin on or about January 1, 2013 and end on December 31, 2014, both dates inclusive, unless sooner terminated as hereinafter provided. 10. SUPPLIES, EQUIPMENT, AND INCIDENTALS. The City and Vendor agree that the Vendor shall furnish any and all supplies, equipment, and incidentals necessary for Vendor's performance of this Contract. 11. SUPERVISION OF VENDOR. The City's designated supervisor will be Bill Mensen, Facilities Maintenance Coordinator. Mr. Mensen, acting on the City's behalf, shall be responsible for providing communication and direction as to the provision of services by the Vendor under this Contract. The Vendor will contact the City of Lakeville by e-mail as to the supply dates and the time they will perform work at each facility. Mr. Mensen's mailing 4 address is: 20195 Holyoke Avenue, Lakeville, MN 55044. His telephone numbers are: (W) 952 - 985 -2630; (C) 952 - 292 -3374, and his e-mail address is wmensen@lakevillemn.gov. 12. TERMINATION WITHOUT CAUSE BY CITY. The City reserves the right to terminate Vendor at will immediately without cause at any time within the term of this Contract. In the event of such termination, the City shall provide Vendor written notice of termination and upon receipt of same, Vendor shall immediately cease and desist Vendor's provision of services under this Contract and City shall have no further obligation under this Contract to pay any further compensation to Vendor except for compensation due and owing for services prior to Vendor's receipt of the written notice of termination. 13. INDEPENDENT CONTRACTOR. City and Vendor agree that Vendor, while engaged in carrying out and complying with the terms and conditions of this Contract and the provision of services thereunder, shall be considered at all times an independent contractor and not an officer, employee, or agent of the City. City and Vendor further agree that Vendor shall not at any time or in any manner represent that Vendor or any of the Vendor's agents or employees are in any manner agents or employees of the City. City and Vendor further agree that Vendor shall be exclusively responsible under this Contract for Vendor's own FICA payment, workers compensation payments, unemployment compensation payments, withholding amounts, and /or self - employment taxes or other taxes if any such payments, amounts, or taxes are required to be paid by law or regulations. 14. WRITTEN NOTICE OR OTHER CORRESPONDENCE. Any written notice or other correspondence to be provided by or between the City and the Vendor in accordance with this Contract shall be hand delivered or mailed by registered or certified mail to the following address: CITY: City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 VENDOR: Nasseff Mechanical Contractors 122 South Wabasha St, Suite 101 St. Paul MN 55107 15. WAIVER OF DEFAULT. Any waiver by City of a default under the provisions of this Contract by Vendor shall not operate or be construed as a waiver of a subsequent default by the Vendor. No waiver shall be valid unless in writing and signed by the Mayor and the City Administrator on behalf of the City. 16. NO ASSIGNMENT OR SUBCONTRACTING. The City and Vendor agree that the services to be rendered by the Vendor under this Contract are unique and personal. Accordingly, the Vendor may not assign or subcontract out any of the Vendor's rights or any of the Vendor's duties or obligations under this Contract. 5 17. INVALIDITY OF PROVISIONS. If any term or provision of this Contract or any application hereof to any person or circumstances, shall to any extent be invalid or unenforceable, the remainder of this Contract or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be effected hereby and each term and provision of this Contract shall be valid and be enforced to the fullest extent permitted by law. 18. DATA PRACTICES /RECORDS. A. All data created, collected, received, maintained, or disseminated for any purpose in the course of this Contract is governed by the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. B. All books, records, documents, and accounting procedures and practices of the Vendor and its subcontractors, if any, relative to this Contract are subject to examination by the City. 19. WARRANTY. The Vendor shall be held responsible for any and all defects in workmanship, materials, and equipment which may develop in any part of the contracted service, and upon proper notification by the City shall immediately replace, without cost to the City, any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. 20. ENTIRE AGREEMENT. This instrument herein contains the entire and only agreement between the parties and no oral statement or representation or prior written matter not contained in this instrument shall have any force and effect. This Contract shall not be modified in any way except by writing executed by both parties. 21. DISCRIMINATION. Vendor agrees to comply with Minnesota Statute 181.59 that states: Subsection A. That, in the hiring of common or skilled labor for the performance of any work under any contract, or any subcontract, no contractor, material supplier or vendor, shall, by reason of race, creed, or color, discriminate against the person or persons who are citizens of the United States or resident aliens who are qualified and available to perform the work to which the employment relates; Subsection B. That no contractor, material supplier, or vendor, shall, in any manner, discriminate against, or intimidate, or prevent the employment of any person or persons identified in clause (1) of this section, or on being hired, prevent, or conspire to prevent the person or persons from the performance of work under any contract on account of race, creed, or color; Subsection C. That a violation of this section is a misdemeanor; and 6 STATE OF MINNESOTA COUNTY OF Subsection D. That this contract may be canceled or terminated by the state, county, city, town, school board, or any other person authorized to grant the contracts for employment, and all money due, or to become due under the contract, may be forfeited for a second or any subsequent violation of the terms or conditions of this contract. 22. WORK HOURS. HVAC preventive maintenance shall start at 8:00 a.m. and be completed before 4:00 p.m. 23. BACKGROUND CHECKS. The City must receive from the Vendor and each Vendor's employee written authorization permitting the City of Lakeville Police Department to perform a criminal history background check and further authorize the Police Department to release the information obtained to the Lakeville City Council, City Administrator and other appropriate employees. The City reserves the right to deny access to City facilities to those Vendors or Vendor's employees that it deems inappropriate. ( ss. CITY OF LAKEVILLE BY: AND I ts Mark Bellows, Mayor Charlene Friedges, City Clerk VENDOR: Nasseff Mechanical BY: The foregoing instrument was acknowledged before me this day of , 2012, by Mark Bellows and by Charlene Friedges, respectively the Mayor and the City Clerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC 7 STATE OF MINNESOTA ) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2012, by the of , a corporation, on behalf of the corporation. NOTARY PUBLIC 8 VENDER CITY OF LAKEVILLE HVAC PREVENTIVE MAINTENANCE 2013 -2014 TABULATION PROPOSAL TOTAL NAC MECHANICAL $23,094.00 ARCHER MECHAICAL $19,124.00 NASSEFF MECHANICAL $18,803.20 HARRIS COMPANIES $46,875.00