HomeMy WebLinkAboutItem 06.f
Date: May 15, 2017 Item No.
ACCEPTANCE OF BIDS ANDAPPROVAL OF A CONTRACT FOR THE PURCHASE OF
RESIDENTIAL WATER METERS FROM FERGUSON WATERWORKS
Proposed Action
Staff recommends adoption of the following motion: Move to accept bids and approve a
contract for the purchase of residential water meters with Ferguson Waterworks.
Overview
The City has an ongoing need for residential water meters to meet the requirement of both City
code and state regulations for water resource management. The Utilities Division has a water
meter change out program which replaces approximately 1,000 water meters each year and
residential development throughout the City requires a varying number of water meters
annually.
The water meters being purchased are compatible with those previously installed and will not
disrupt the City’s existing installation or billing processes. The water meters will contribute to
the City’s migration from contract meter reading to a drive-by meter reading system. Purchase
of water meters will occur over two fiscal years.
An advertisement for bids was published on April 14, 2017 and bids were opened on
May 3, 2017. One vendor submitted a bid for in response to the advertisement. That vendor
met the specifications for the residential water meters. Unit pricing for the water meters shows
a decrease in cost in comparison with 2016 prices.
Staff recommends acceptance of the bids and award of the contract.
Primary Issues to Consider
• Are the meters compatible with the existing system? Yes, the water meters being
purchased are the same meters, with the addition of an integrated radio, that we have
purchased for several years.
Supporting Information
• A copy of the bid tabulation and contract is attached.
Financial Impact: $546,000.00 Budgeted: Yes Source: 7606.6280 and others
Related Documents (CIP, ERP, etc.): 2017 Adopted Budget
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Neil Normandin, Public Works and Facilities Coordinator
Feguson Enterprises, Inc. dba
Ferguson Waterworks Yes 227.50 546,000.00
BID TABULATION
PURCHASE OF RESIDENTIAL WATER METERS
Bid Opening: Wednesday, May 3, 2017, 11:00 a.m.
Vendor Bid
Bond Unit Cost Total Bid
CONTRACT FOR THE PURCHASE OF RESIDENTIAL WATER METERS
THIS AGREEMENT made this 15th day of May, 2017, by and between the CITY OF
LAKEVILLE, hereinafter referred to as the “City”, and FERGUSON ENTERPRISES, INC. DBA
FERGUSON WATERWORKS, hereinafter referred to as the “Supplier”.
THE CITY AND THE SUPPLIER, FOR THE CONSIDERATION HEREINAFTER STATED, AGREE AS
FOLLOWS:
1. SCOPE OF SERVICES. The scope of services is detailed in the Contract Documents
but generally consists of the purchase and delivery of residential water meters.
The Supplier 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 Purchase Residential Water
Meters”.
B. Instructions to Bidders
C. Technical Specifications
D. Supplier’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 "D" having the last priority.
3. OBLIGATIONS OF THE SUPPLIER. The Supplier agrees that the work contemplated
by the Contract shall be fully and satisfactorily completed in accordance with the
terms of the Contract Documents.
4. GENERAL COMPLIANCE. The Supplier agrees to comply with all applicable Federal,
State, and local laws and regulations affecting the Contract or governing funds
provided under the Contract.
5. PAYMENT.
A. The City agrees to pay and the Supplier agrees to receive and accept
payment in accordance with the prices quoted as set forth in the completed
Bid Form. Payment to the Supplier shall be made based on deliveries and
submission and approval of an invoice.
B. Payments to Subcontractor. Pursuant to Minn. Stat. § 471.25, Subd. 4a, the
Supplier must pay any subcontractor within ten (10) days of the Supplier’s
receipt of payment from the City for undisputed services provided by the
subcontractor. The Supplier must pay interest of 1½ percent per month or
any part of a month to the subcontractor on any undisputed amount not
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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 Supplier shall pay the actual penalty due
to the subcontractor.
6. INDEMNIFICATION.
A. The Supplier shall defend, indemnify, 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 Supplier employee or to any
employee of Supplier’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 Supplier 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 Supplier, or Supplier’s
subcontractors, agents, employees or delegates.
B. Supplier 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 Supplier, its
subcontractors, agents, employees or delegates. Supplier 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 Supplier to furnish a written acceptance of tender of defense and
indemnity from Supplier’s insurance company. Supplier will take the
action required by City within fifteen (15) days of receiving notice from
City.
7. 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.
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B. No action or failure to act by the City or the Supplier 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.
8. GOVERNING LAW. The Contract shall be governed by the laws of the State of
Minnesota.
9. INSURANCE. Prior to commencing work on the Contract, the Supplier shall
furnish the City a certificate of insurance. The Supplier shall furnish and maintain
during the project such public liability and property damage insurance as shall
protect Supplier 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 Supplier 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 – as provided in the applicable law.
Employer’s Liability
Bodily Injury by Disease per employee - $500,000
Bodily Injury by Disease aggregate - $500,000
Bodily Injury by Accident - $500,000
Commercial General Liability
Personal Injury per occurrence - $1,000,000
Property Damage per occurrence - $1,000,000
The following coverages shall be included:
• Premises, Operations, Bodily Injury and Property Damage
• Personal and Advertising Injury
• Blanket and Contractual Liability
• Products and Completed Operations Liability
Business Automobile Liability:
Combined single limit - $1,000,000
The following coverages shall be included:
• Owned/leased vehicles
• Non-owned vehicles
• Hired vehicles
Blanket contractual (hold harmless) protection; and fire, theft and
vandalism insurance, for the full value of all materials and equipment
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furnished by the Bidder shall be provided until the complete contract is
formally accepted.
All insurance policies (or riders) required by this Agreement shall:
Be 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,
Contain a provision that the insurer shall give thirty (30) days written
notice of cancellation or in the case of non-payment of premium, at least
ten (10) days written notice,
Name Provider as an insured party and City as an additional insured with
respect to General Liability, Auto Liability, and Pollution Liability policies
on a primary and non-contributory basis,
Be in accordance with specifications approved by the insurance advisory
for City, and
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 endorsements showing the City named
as additional insured on a primary and non-contributory basis.
10. PERFORMANCE AND PAYMENT BONDS. Performance and payment bonds are
not required.
11. TERM. The term of this Contract shall begin on or about May 15, 2017 and end on
May 31, 2018, both dates inclusive, unless sooner terminated as hereinafter
provided.
12. SUPPLIES, EQUIPMENT, AND INCIDENTALS. The City and Supplier agree that
the Supplier shall furnish any and all supplies, equipment, and incidentals
necessary for Supplier’s performance of this Contract.
13. TERMINATION WITHOUT CAUSE BY CITY. The City reserves the right to
terminate Supplier at will immediately without cause at any time within the term
of this Contract. In the event of such termination, the City shall provide Supplier
written notice of termination and upon receipt of same, Supplier shall
immediately cease and desist Supplier’s provision of services under this Contract
and City shall have no further obligation under this Contract to pay any further
compensation to Supplier except for compensation due and owing for services
prior to Supplier’s receipt of the written notice of termination.
14. INDEPENDENT SUPPLIER. City and Supplier agree that Supplier, 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 Supplier and not an officer, employee, or agent of the City. City and
Supplier further agree that Supplier shall not at any time or in any manner
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represent that Supplier or any of the Supplier’s agents or employees are in any
manner agents or employees of the City. City and Supplier further agree that
Supplier shall be exclusively responsible under this Contract for Supplier’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.
15. WRITTEN NOTICE OR OTHER CORRESPONDENCE. Any written notice or other
correspondence to be provided by or between the City and the Supplier 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
SUPPLIER: Ferguson Waterworks
1694 91st Avenue NE
Blaine MN 55449
16. WAIVER OF DEFAULT. Any waiver by City of a default under the provisions of
this Contract by Supplier shall not operate or be construed as a waiver of a
subsequent default by the Supplier. No waiver shall be valid unless in writing and
signed by the Mayor and the City Administrator on behalf of the City.
17. NO ASSIGNMENT OR SUBCONTRACTING. The City and Supplier agree that the
services to be rendered by the Supplier under this Contract are unique and
personal. Accordingly, the Supplier may not assign or subcontract out any of the
Supplier’s rights or any of the Supplier’s duties or obligations under this Contract.
18. 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.
19. DATA PRACTICES/RECORDS.
The Supplier agrees to comply with the Minnesota Government Data Practices Act
(Minnesota Statutes, Chapter 13) and all other applicable state and federal laws
relating to data privacy or confidentiality. The Supplier and any of the sub-
contractors and suppliers retained by the Supplier to provide work or services
under this Contract shall comply with the Act and be subject to penalties for non-
compliance as though they were a “government entity”. The Supplier must
immediately report to the City any requests from third parties for information
relating to this Contract. The City agrees to promptly respond to inquiries from
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the Supplier concerning data requests. The Supplier agrees to hold the City, its
officers, and employees harmless from any claims resulting from the Supplier’s
unlawful disclosure or use of data protected under state and federal laws. All Bids
shall be treated as non-public information until the Bids are opened for review by
the City. At that time, the names of the responders become public data. All other
data is private or nonpublic until the City has completed negotiating the Contract
with the selected Supplier. At that time, the Bids and their contents become
public data under the provisions of the Minnesota Government Data Practices Act,
Minnesota Statutes, Chapter 13 and as such are open for public review.
20. WARRANTY. The Supplier 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.
21. 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 Supplier
shall proceed with the work involved. Changes in the Contract Price shall be
based on the Bid Unit Prices.
22. INSPECTION OF RECORDS. Pursuant to Minnesota Statutes, Section 16C.05, all
Supplier records with respect to any matters covered by this Contract shall be
made available to the City and the State of Minnesota, Office of State Auditor or
their designees, upon notice, at any time during normal business hours, as often
as the City deems necessary, to audit, examine, and make excerpts or transcripts
of all relevant data. Supplier will comply with all State and local audit
requirements.
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. Supplier 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 Supplier, 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 Supplier, 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
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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 may require criminal history background
checks of the Supplier’s employee’s for purposes of access to City facilities. The
City reserves the right to deny access to City facilities to those Suppliers or
Supplier’s employees that it deems inappropriate.
CITY OF LAKEVILLE SUPPLIER: FERGUSON WATERWORKS
BY: BY:
Douglas P. Anderson, Mayor
AND: ITS:
Charlene Friedges, City Clerk