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HomeMy WebLinkAboutItem 06.o Date: August 7, 2017 Item No. ACCEPT BIDS AND AWARD A CONTRACT FOR THE REPLACEMENT OF THE CITY HALL BOILER TO PIONEER POWER, INC. Proposed Action Staff recommends adoption of the following motion: Move to accept bids and award a contract for the replacement of the City Hall boiler to Pioneer Power, Inc. Overview The City Hall boilers are scheduled for replacement in 2017 having been in operation since the construction of the facility. They are at the end of their practical service life. Replacing the boilers on a scheduled basis maximizes the life of the unit, limits costs associated with major component failures, and proactively avoids emergency, unbudgeted replacement. The City solicited bids from six heating, ventilation, and air conditioning contractors for the replacement of the boilers. Four of the contractors returned bids in a range from $68,600.00 to $90,450.00. Each of the responding contractors recommended the same boiler replacement unit as was called out in the specification. The approved budget for this project was $120,000.00, inclusive of engineering services. After evaluation by staff and the consulting engineer, the bid from Pioneer Power, Inc, at a total cost for replacement of $68,600.00, was selected as best meeting the specifications, equipment requirements, and City needs. Staff recommends approval. Primary Issues to Consider • Is boiler replacement necessary? Yes. Typically, major component failure can occur as early as the 20-year point in the boiler’s lifecycle. Though there have been no failures other than wear parts, replacement is necessary to ensure continued heating within City Hall and avoid an unforeseen major component failure. This replacement also allows the installation of a higher efficiency unit to aid in reducing energy consumption costs. Supporting Information • A copy of the proposal tabulation and proposed contract are attached. Financial Impact: $68,600.00 Budgeted: Yes Source: 4010.6540 Related Documents (CIP, ERP, etc.): 2017 Approved Budget Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Neil Normandin, Public Works and Facilities Coordinator BID TABULATION Lakeville City Hall Boiler Replacement July 14, 2017 11:00 a.m. Boiler Services, Inc 1 Yes Yes 73,300.00$ Pioneer Power, Inc.1 Yes Yes 68,600.00$ Northland Mechanical Contractors 1 Yes Yes 72,000.00$ Klamm Mechanical Contractors, Inc.1 Yes Yes 90,450.00$ Addenda Contractor Total Project CostIssuedReceived Bid Bond 2 CONTRACT FOR REPLACEMENT OF THE LAKEVILLE CITY HALL BOILER THIS AGREEMENT made this 7th day of August 2017, by and between the CITY OF LAKEVILLE, hereinafter referred to as the “City”, and PIONEER POWER, INC., 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 consists of demolition, removal, and replacement of the Lakeville City Hall boiler. 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 REPLACEMENT OF THE LAKEVILLE CITY HALL BOILER” B. Instructions to Contractors C. General and Technical Specifications and Plan Sheets D. 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 "D" 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 as set forth in the completed Bid Form. Payment to the Contractor shall be made based on 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 1½ 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. 3 5. I NDEMNIFICATION. 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 4 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 any subcontractor or anyone directly or indirectly employed by either of them and the amounts of insurance shall be as follows: Worker’s Compensation 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 – 2,000,000 annual aggregate. Business Automobile Liability - $2,000,000 per occurrence combined single limit. Excess/Umbrella Liability - 2,000,000 each occurrence/aggregate All insurance policies (or riders) required by this Agreement shall: (i) Be taken out by the 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) 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, (iii) Name Contractor as an insured party and City as an additional insured with respect to General Liability, Auto Liability, and umbrella policies on a primary and non-contributory basis, (iv) Be in accordance with specifications approved by the insurance advisory for City, and (v) 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. An Umbrella or Excess Liability insurance policy may be used to supplement the Contractor’s policy limits on a follow-form basis to satisfy the full policy limits required by the Contract. The City reserves the right to immediately terminate the contract if the Contractor is not in compliance with the insurance requirements and retains all rights to pursue any legal remedies against the contractor. All insurance policies must be open to inspection by the City, and copies of policies must be submitted to the City’s authorized representative upon written request. 5 9. PERFORMANCE AND PAYMENT BONDS. Performance and payment bonds in amounts equal to 100 percent of the contract price will be delivered to the City prior to the commencement of work on this project. 10. TERM. The term of this Contract shall begin on the effective date and end at the completion of all work associated with demolition, removal, and replacement of the Lakeville City Hall boiler, unless sooner terminated as hereinafter provided. 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 at its sole discretion to terminate this Contract 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 receipt 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: VENDOR: City of Lakeville 20195 Holyoke Avenue Lakeville MN 55044 Pioneer Power, Inc. 2500 Ventura Drive Woodbury MN 55125 6 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. 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. 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. 21. 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. 22. WORK HOURS. Work hours are between 7:00 a.m. and 4:30 p.m., Monday through Friday. Contractor personnel must leave the premises not later than 4:30 p.m. The schedule of work and any special work hour requirements shall be coordinated with the Facilities Maintenance Supervisor. 23. DISCRIMINATION. Contractor agrees to comply with Minnesota Statute 181.59 that states: 7 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 Contractor 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 Contractor, 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. 24. BACKGROUND CHECKS. The City may require criminal history background checks of the Contractor’s employee’s for purposes of access to City facilities. 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: ___________________________ Douglas P. Anderson, Mayor AND: ___________________________ Charlene Friedges, City Clerk CONTRACTOR: PIONEER POWER, INC. BY: ___________________________ Its