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HomeMy WebLinkAboutItem 06.kDate: 12 January 2015 Item No. APPROVAL OF A CONTRACT FOR MAINTENANCE OF HVAC SYSTEMS WITH ARCHER MECHANICAL Proposed Action Staff recommends adoption of the following motion: Move to approve a contract with Archer Mechanical to perform heating, ventilation, and air conditioning (HVAC) maintenance services at designated City facilities. Overview This contract encompasses the 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, the Arts Center, two of the liquor stores, the Water Treatment Facility, the Central Maintenance Facility, and City Hall. Maintenance activities include the seasonal startup of heating and cooling systems and detailed checks of temperature controls, fans, heat exchangers, and filters, as well as maintenance and repair of the HVAC systems. 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. Proposals included hourly repair rates to allow the City to evaluate the total cost of preventive maintenance and repair services. Eight vendors returned proposals with Archer Mechanical providing all required preventive maintenance and repair services at the best total cost to the City. The contract term expires on December 31, 2016. Staff reviewed the contract and associated documents and recommends its approval. Primaa Issues to Consider • What is the effect of curtailing HVAC 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 an evaluation of the proposals is attached. Christop . Petree Public orks Director Financial Impact: $24,882.00 Budgeted: Yes Source: Department Operating Budgets Related Documents (CIP, ERP, etc.): Notes: Sufficient funds are programmed in each department's budget to meet the annual cost. CONTRACT FOR SERVICES THIS AGREEMENT made this 20th day of January 2015, by and between the CITY OF LAKEVILLE, hereinafter referred to as the "City", and ARCHER MECHANICAL, 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 maintenance of the Heating, Ventilation, and Air Conditioning (HVAC) systems in designated City facilities. 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 Services". B. HVAC Maintenance Specifications. C. Equipment Listing, Exhibit A. D. Contractor'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 "D" having the last priority. 3. OBLIGATIONS OF THE CONTRACTOR. The Contractor agrees that the work contemplated by the Contract .hall 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 Proposal Form. Payment to the Contractor shall be made 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 11/z 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. 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: 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 Agreement shall be (i) taken out by the Provider 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 Provider as an insured party and to City as an additional insured, (iii) shall name Provider as an insured party and City as an additional insured with respect to General Liability and Auto Liability policies on a primary and non-contributory basis, (iv) shall be in accordance with specifications approved by the insurance advisory for City, and (v) shall be evidenced by a Certificate of Insurance listing City as an additional insured which shall be filed with the city. Certificates of Insurance that do not meet these requirements will not be accepted. Certificates of Insurance shall include the policy endorsement showing the City named as additional insured on a primary and non-contributory basis. 9. TERM. The term of this Contract shall begin on or about January 20, 2015 and end on December 31, 2016, both dates inclusive, unless sooner terminated as hereinafter provided. 10. 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. 11. SUPERVISION OF CONTRACTOR. The City's designated supervisor will be the Facilities Maintenance Planner. The Facilities Maintenance Planner, acting on the City's behalf, shall be responsible for providing communication and direction as to the provision of services by the Contractor under this Contract. The Contractor will contact the City of Lakeville by e-mail as to the supply dates and the times they will perform work at each facility. The Facilities Maintenance Planner's mailing address is: 20195 Holyoke Avenue, Lakeville, MN 4 55044; telephone numbers are: (W) 952-985-2630; (C) 952-292-3374; email address is tredepenning@lakevillemn.gov. 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 MN 55044 CONTRACTOR: Archer Mechanical 1614 Cliff Road East Burnsville MN 55337 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 affected 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. 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. 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. 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 Contractor, 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 Contractor, 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. 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 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 right to deny access to City facilities to those Contractors or Contractor's employees that it deems inappropriate. CITY OF LAKEVILLE BY: AND Matt Little, Mayor Charlene Friedges, City Clerk CONTRACTOR: BY: Its STATE OF MINNESOTA ( ss. COUNTY OF The foregoing instrument was acknowledged before me this day of , 2015, 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. STATE OF MINNESOTA ( ss. COUNTY OF NOTARY PUBLIC The foregoing instrument was acknowledged before me this 2015, by a corporation. the NOTARY PUBLIC day of , of corporation, on behalf of the EVALUATION OF PROPOSALS The City received the following proposals for HVAC preventive maintenance services: Klamm NAC Archer Summit SCR Yale Mech Nasseff Albers Mech Tech Helper Mech 70.00 Trip Charge 9.50 Mech Mech 48,660.00 41,700.00 24,882.00 34,846.14 42,106.00 135,725.50 28,513.88 22,460.00 The contractors also provided hourly rate information to facilitate estimation and evaluation of repair costs. In evaluating the proposals, the City evaluated the three lowest proposals using criteria established in the Request for Proposals. Those criteria were: 1. Experience of the firm. Number of years and type of experience will be considered, as well as specific experience (verifiable through references). Each of the contractors has the requisite experience and ability to provide the services requested. Both Nasseff Mechanical and Archer Mechanical have provided both preventive maintenance and repairs to City HVAC equipment over the past six years. 2. Organization, size, and structure of the firm. Each of the contractors is organized such that it can provide both preventive maintenance and equipment repairs. 3. Location and accessibility of the Contractor. • Archer Mechanical is located in Burnsville, MN. • Both Albers Mechanical and Nasseff Mechanical are located in West St. Paul, MN 4. Responsiveness of the written proposal to the scope of services outlined in the City's request and adherence to the proposal format. Each of the contractors complied with the essential requirements of the request for proposal. 5. Proposed fee schedule. The Albers Mechanical, Archer Mechanical, and Nasseff Mechanical proposed the following fee schedule: Albers Mechanical trip charge is per hour. 9 Nasseff Mechanical 92.00 39.00 55.00 Albers Archer Mechanical Mechanical Journeyman 118.00 99.87 Tech Helper 118.00 70.00 Trip Charge 9.50 45.00 Albers Mechanical trip charge is per hour. 9 Nasseff Mechanical 92.00 39.00 55.00 A comparison of preventive maintenance costs and repair services based on one 4 - hour service call per month*: Albers Archer Nasseff Mechanical Mechanical Mechanical 12 service calls 11,784.00 8,693.76 6,948.00 Preventive Maint 22,460.00 24,822.00 28,513.88 Total 34,244.00 33,515.76 35,461.88 *The number of service calls in 2014 exceeded one per month. Recommendation: Based on the evaluation of proposals and keying on experience, pricing for preventive maintenance services, the fee schedule, and location and accessibility, staff recommends award of the contract to Archer Mechanical. 10