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HomeMy WebLinkAboutItem 06.i Date: May 21, 2018 Item No. APPROVAL OF A CONTRACT FOR THE REPLACEMENT OF CONDENSING UNITS 201, 202, AND 203 AT THE WATER TREATMENT FACILITY WITH COOL AIR MECHANICAL, INC. Proposed Action Staff recommends adoption of the following motion: Move to approve a contract for the replacement of condensing units 201, 202, and 203 at the Water Treatment Facility with Cool Air Mechanical, Inc. Overview The condensing units were installed at building construction in 1998 and have reached the end of their service life. The largest of the units failed at the end of last year and is not repairable within a reasonable cost. The replacement of the condensing units provides the opportunity to change over to a more environmentally friendly refrigerant and to reduce operating costs through more efficient units. The City solicited proposals from eight heating, ventilation, and air conditioning contractors for the replacement of the condensing units. Three of the contractors returned proposals with a cost range from $52,610.00 to $92,089.00. The approved budget for this project is $73,506.00. Each of the proposals was evaluated and the proposal from Cool Air Mechanical, Inc., at a total cost of $52,610.00, was selected as best meeting the specifications and providing the best cost of replacement. Staff recommends approval. Primary Issues to Consider • Is replacement of the condensing units necessary? Yes. One of the condensing units is no longer operable and must be replaced. All of the units are 20 years old and have reached the end of their service life. Supporting Information • A copy of the proposal tabulation and proposed contract are attached. Financial Impact: $52,610.00 Budgeted: Yes Source: 7602.6295 Related Documents (CIP, ERP, etc.): 2018 Approved Budget Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Neil Normandin, Public Works and Facilities Coordinator PROPOSAL TABULATION LAKEVILLE WATER TREATMENT FACILITY CONDENSING UNIT 201, 202, AND 203 REPLACEMENT May 4 , 2018 Contractor Proposal Bond Total Cool Air Mechanical, Inc.Included 52,610.00 Yale Mechanical Included 81,735.00 Archer Mechanical Included 92,089.00 2 CONTRACT FOR SERVICES THIS AGREEMENT, made this 21st day of May 2018, by and between CITY OF LAKEVILLE, a Minnesota municipal corporation (“Owner”) and COOL AIR MECHANICAL, INC. (“Contractor”). Owner and Contractor, in consideration of the mutual covenants set forth herein, agree as follows: 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 Replacement of Condensing Units 201, 202, and 203 at Lakeville 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 Services”. B. Instructions to Contractors C. General and Technical Specifications 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 shall be fully and satisfactorily completed in accordance with the terms of the Contract Documents. 4. PAYMENT. A. The Owner agrees to pay, and the Contractor agrees to receive and accept payment in accordance with the prices quoted as set forth in the completed Proposal Form. Payment to the Contractor shall be made monthly 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 Owner for undisputed services provided by the subcontractor. The Contractor must pay interest of 1½ percent per month or any 3 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 Owner 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 Owner 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 Owner 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 Owner within fifteen (15) days of receiving notice from Owner. 4 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 Owner 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. COMMERCIAL GENERAL LIABILITY. Contractor shall obtain the following minimum insurance coverage and maintain it at all times throughout the life of the Contract, with the Owner, its officers and employees included as an additional named insured on a primary and non-contributory basis by endorsement. The Contractor shall furnish the Owner a certificate of insurance satisfactory to the Owner evidencing the required coverage: Bodily Injury: $2,000,000 each occurrence $2,000,000 aggregate products and completed operations Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Contractual Liability (identifying the contract): Bodily Injury: $2,000,000 each occurrence Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Personal Injury, with Employment Exclusion deleted: $2,000,000 aggregate Comprehensive Automobile Liability (owned, non-owned, hired): Bodily Injury: $2,000,000 each occurrence $2,000,000 each accident Property Damage: $2,000,000 each occurrence Pollution Liability Insurance: $2,000,000 each occurrence $2,000,000 aggregate 5 Damages covered by pollution liability insurance shall include bodily injury, property damage, environmental damage, loss of use of property, governmental ordered cleanup costs, completed operations and defense including costs, charges and expenses incurred in the investigation, adjustment or defense of claims for damages, as a result of pollution conditions arising from Contractor or its subcontractors’ operations under the Agreement, (a) at the work site, (b) in the course of transporting materials to or from the work site, or (c) at or emanating from disposal sites to which the Contractor transported materials. All insurance policies (or riders) required by this Agreement shall be: (i) 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, and currently rated “A” or better by the A.M. Best Company. (ii) Shall contain a provision that the insurer shall not cancel or materially revise coverage thereunder without giving written notice to Contractor as an insured party and to Owner as an additional insured at least thirty (30) days before cancellation or revision becomes effective. In the case of cancellation for non- payment, insurer shall provide ten (10) days before cancellation as required hereunder. (iii) Shall name Contractor as an insured party and Owner as an additional insured with respect to General Liability, Auto Liability, and umbrella policies on a primary and non-contributory basis, (iv) Shall be in accordance with specifications approved by the insurance advisory for Owner, and (v) Shall be evidenced by a Certificate of Insurance filed with the Owner prior to commencing work. Certificates of Insurance that do not meet these requirements will not be accepted. 9. PERFORMANCE AND PAYMENT BONDS. Performance and payment bonds are not required. 10. TERM. The term of this Contract shall begin on the effective date and end at the completion of all work associated with the installation and startup of the equipment, unless sooner terminated as hereinafter provided. 11. SUPPLIES, EQUIPMENT, AND INCIDENTALS. The Owner 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 OWNER. The Owner reserves the right at its sole discretion to terminate this Contract at will immediately without cause at any time 6 within the term of this Contract. In the event of such termination, the Owner 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 Owner 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. Owner 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 Owner. Owner 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 Owner. Owner 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 Owner and the Contractor in accordance with this Contract shall be hand delivered or mailed by registered or certified mail to the following address: OWNER: CONTRACTOR: 15. WAIVER OF DEFAULT. Any waiver by Owner 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 Owner Administrator on behalf of the Owner. 16. NO ASSIGNMENT OR SUBCONTRACTING. The Owner and Contractor agree that the services to be rendered by the Contractor under this Contract are unique and City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Cool Air Mechanical, Inc. 1544 134th Avenue NE Ham Lake, MN 55304 7 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 Owner. 19. WARRANTY. The Contractor shall be held responsible for any and all defects in workmanship, materials, and equipment for a period of one year after the equipment is placed in operation which may develop in any part of the contracted service, and upon proper notification by the Owner shall immediately replace, without cost to the Owner, any such faulty part or parts and damage done by reason of the same in accordance with the proposal specifications. 20. CHANGE ORDERS. Without invalidating the Contract, the Owner 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 Proposal Prices 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. 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 Contractor or vendor, shall, by reason of race, creed, or color, discriminate against the person or 8 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. Dated: _____________, 2018. OWNER: CITY OF LAKEVILLE By: Douglas P. Anderson, Mayor And: _______________________________ Charlene Friedges, City Clerk Dated: _____________, 2018. CONTRACTOR: COOL AIR MECHANICAL, INC. 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