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HomeMy WebLinkAboutItem 06.eQ e Date: 11 February 2013 Item No. RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACT FOR INSTALLATION OF STATIONARY GENERATOR CATALYST SYSTEMS TO NAC MECHANICAL AND ELECTRICAL SERVICES Proposed Action Staff recommends adoption of the following motion: Move to accept bids for installation of stationary generator catalyst systems and award the contract to NAC Mechanical and Electrical Services. Overview The Environmental Protection Agency recently completed amendments to the national emission standards for hazardous air pollutants (NESHAP) for stationary reciprocating internal combustion engines (RICE). These standards apply to the generators at the Central Maintenance Facility and Water Treatment Facility which are used as emergency backup and for peak shaving with Dakota Electric Association. To meet the revised NESHAP, the City must install oxidation catalyst systems on the generators to reduce specific air pollutants by as much as 70 percent. The City must also monitor and periodically report on the effectiveness of the catalyst systems in maintaining reduced levels of pollutants. The deadline for compliance with the amended NESHAP is 3 May 2013. A request for bids was published on 18 January 2013 and sealed bids were opened on 8 February. NAC Mechanical and Electrical Services provided the most cost effective solution to installation of the catalyst systems based on the specifications for a total cost of $92,999.50 Primary Issues to Consider • What is the impact of not installing the catalyst systems? The facilities that operate the generators would lose the ability to use an industrial electrical rate which saves the City approximately $120,000 per year. Supporting Information • A copy of the bid tabulation and contract are attached. Christo r J. Petree Public Works Director Financial Impact: $92,999.50 Budgeted Related Documents (CIP, ERP, etc.): Notes: Yes Source: 4058.6450 and 7610.6295 CITY OF LAKEVILLE RESOLUTION NO: RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACT FOR INSTALLATION OF STATIONARY GENERATOR CATALYST SYSTEMS TO NAC MECHANICAL AND ELECTRICAL SERVICES WHEREAS, notices to bidders for the acceptance of sealed bids for the installation of stationary generator catalyst systems were officially published on 18 January 2013, and WHEREAS, sealed bids were opened at 11:00 a.m. on 8 February 2013, and WHEREAS, the lowest responsible bidder for the installation of oxidation catalyst system to the generators at the Central Maintenance Facility and Water Treatment Facility for a total bid price of $92,999.50, including installation of metal jacket insulation at the Water Treatment Facility, was NAC Mechanical and Electrical Services NOW, THEREFORE, BE IT RESOLVED, that the bids are accepted for the installation of stationary generator catalyst systems and the contract is awarded to NAC Mechanical and Electrical Services. APPROVED AND ADOPTED this 19t day of February 2013 by the City Council of the City of Lakeville. CITY OF LAKEVILLE Matt Little, Mayor ATTEST: Charlene Friedges, City Clerk 2 W H N N F J a H a V Z O H a 0 cc 0 W Z W Q Z 0 P N LL 0 Z 0 H Q J J Q H N Z W W 2 N Z O J m Q m Y 3 V CO D a W J J W m J M r O N L LL OO E Ip 0 O 'v R Lj- v E fa v H N Q V OL C L c m N V) O N ++ + p v J t M v c6 v u1 rn ON m i p . O CL +` N ON O Z `p U a, R U Q w z 3 c E v o •, N ut v o \ M N E } Ln m a o c O Ol G! a+ R N � +J C ' L w O O O O H L q z Li O j a � 0 D D Lq O O ON W m m p m w 00 {„ m W M O LL O ~ z W W Z Q N H Q N _0 Q C m z H Q m m m *0 CONTRACT FOR THE INSTALLATION OF A STATIONARY GENERATOR OXIDATION CATALYST SYSTEM THIS AGREEMENT made this 19th day of February 2013, by and between the CITY OF LAKEVILLE, hereinafter referred to as the "City ", and NAC MECHANICAL AND ELECTRICAL SERVICES hereinafter referred to as the "Contractor ". THE CITY AND THE CONTRACTOR, 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 the installation of a Stationary Generator Oxidation Catalyst System on generators at the Central Maintenance Facility and the Water Treatment Facility. The Contractor 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 the Installation of a Stationary Generator Oxidation Catalyst System. B. Instructions to Bidders C. General Specifications D. Technical Specifications E. Contractor's Bid 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 CONTRACTOR. The Contractor 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. A. The City agrees to pay and the Contractor agrees to receive and accept payment in accordance with the prices quoted, which is inclusive of sales tax, as set forth in the completed Bid Form. Payment to the Contractor shall be made monthly based on work completed and submission and approval of an invoice. B. Payments to Subcontractor. Pursuant to Minn. Stat. § 471.25, Subd. 4a, the Contractor must pay any subcontractor within ten (10) days of the Contractor's receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of 1 1 /2 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 penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual penalty due to the subcontractor. 5. INDEMNIFICATION. A. The Contractor 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 Contractor employee or to any employee of Contractor'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 Contractor 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 Contractor, or Contractor's subcontractors, agents, employees or delegates. B. Contractor 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 Contractor, its subcontractors, agents, employees or delegates. Contractor 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 Contractor to furnish a written acceptance of tender of defense and indemnity from Contractor's insurance company. Contractor 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. 2 B. No action or failure to act by the City or the Contractor 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. 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 Contractor shall furnish the City a certificate of insurance. The Contractor shall furnish and maintain during the project such public liability and property damage insurance as shall protect Contractor 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 Contractor or by an subcontractor or anyone directly or indirectly employed by either of them and the amounts of insurance shall be as follows: Worker's Compensation Insurance Coverage A Statutory Coverage B $500,000 each accident $500,000 disease - policy limit $500,000 disease - each employee Commercial General Liability $2,000,000 General Aggregate $2,000,000 Products /Completed Operations Aggregate $2,000,000 Each Occurrence $2,000,000 Personal Injury Comprehensive Automobile Liability $2,000,000 Combined single limit - bodily injury and property damage All owned - non -owned and hired vehicles. Umbrella Excess Liability $2,000,000 Each occurrence $2,000,000 Aggregate Umbrella excess liability shall be a combined single limit, which shall provide excess liability insurance over Commercial General Liability, Comprehensive Automobile Liability, and Employers Liability. All insurance policies (or riders) required by this Contract shall be (i) taken out by Contractor 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 Contractor as an insured party and to City as an additional insured, (iii) shall name Contractor as an 3 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. PERFORMANCE AND PAYMENT BONDS. Prior to execution of the contract by the City and before any work or services are rendered, the Contractor shall furnish a performance bond and payment bond each in the amount of the Total Bid insuring the faithful performance of the Contract and payment of all obligations arising thereunder pursuant to Section 574.26 of the Minnesota Statutes. If the bonds are not submitted within the time frame, then the Contract shall be considered void and the City may elect to collect the bid bonds or security as liquidated damages. 10. TERM. The installation of the generator catalyst systems shall be substantially complete and operational no later than 1 May 2013. All work at both sites shall be fully complete no later than 1 June 2013. 11. SUPPLIES, EQUIPMENT, AND INCIDENTALS. The City and Contractor agree that the Contractor shall furnish any and all supplies, equipment, and incidentals necessary for Contractor's performance of this Contract. 12. TERMINATION WITHOUT CAUSE BY CITY. The City reserves the right to terminate Contractor at will immediately without cause at any time within the term of this Contract. In the event of such termination, the City shall provide Contractor written notice of termination and upon receipt of same, Contractor shall immediately cease and desist Contractor's provision of services under this Contract and City shall have no further obligation under this Contract to pay any further compensation to Contractor except for compensation due and owing for services prior to Contractor's receipts of the written notice of termination. 13. INDEPENDENT CONTRACTOR. City and Contractor agree that Contractor, 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 Contractor further agree that Contractor shall not at any time or in any manner represent that Contractor or any of the Contractor's agents or employees are in any manner agents or employees of the City. City and Contractor further agree that Contractor shall be exclusively responsible under this Contract for Contractor'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 Contractor 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, Minnesota 55044 4 CONTRACTOR: NAC Mechanical and Electrical Services 1001 Labore Industrial Court, Suite B. Vadnais Heights, Minnesota 55110 15. WAIVER OF DEFAULT. Any waiver by City of a default under the provisions of this .Contract by Contractor shall not operate, or be construed as a waiver of a subsequent default by the Contractor. 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 Contractor agree that the services to be rendered by the Contractor under this Contract are unique and personal. Accordingly, the Contractor may not assign or subcontract out any of the Contractor's rights or any of the Contractor's duties or obligations under this Contract. 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 Contractor and its subcontractors, if any, relative to this Contract are subject to examination by the City. 19. COPYRIGHT. Contractor shall defend actions or claims charging infringement of any copyright by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. 20. PATENTED DEVICES, MATERIALS AND PROCESSES. If the contract requires, or the Contractor desires, the use of any design, device, material or process covered by letters, patent or copyright, trademark or trade name, the Contractor shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the City. If no such agreement is made or filed as noted, the Contractor shall indemnify and hold harmless the City from any and all claims for infringement by reason of the use of any such patented designed, device, material or process, or any trademark or trade name or copyright in connection with the services agreed to be performed under the contract, and shall indemnify 6, and defend the City for any costs, liability, expenses and attorney's fees that result from any such infringement. 21. WARRANTY. The Contractor 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. 22. CHANGE ORDERS. Without invalidating the Contract, the City may, at any time or from time to time, order additions, deletions, or revisions in the Work; these will be authorized by Change Orders. Upon receipt of a Change Order, the Contractor shall proceed with the work involved. Changes in the Contract Price shall be based on the Bid Prices. 23. 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. 24. DISCRIMINATION. Contractor 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 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. 25. BACKGROUND CHECKS. The City must receive from the Contractor and each Contractor'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 ri right to deny access to City facilities to those Contractors or Contractor's employees that it deems inappropriate. CITY OF LAKEVILLE C"'� Matt Little, Mayor "D Charlene Friedges, City Clerk CONTRACTOR: [:IN STATE OF MINNESOTA ) (ss. COUNTY OF ) NAC Mechanical and Electrical Services Its The foregoing instrument was acknowledged before me this day of , 2012, by Matt Little 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 STATE OF MINNESOTA ) (ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2013, by the of a corporation, on behalf of the corporation. NOTARY PUBLIC 7