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HomeMy WebLinkAboutItem 06.g Date: July 16, 2018 Item No. APPROVAL OF A CONTRACT FOR THE RECONDITIONING OF HYDRANTS WITH B&B COMMERCIAL COATING, LLC Proposed Action Staff recommends adoption of the following motion: Move approve the contract for the reconditioning of hydrants with B&B Commercial Coating, LLC. Overview The reconditioning of hydrants is part of an ongoing preventive maintenance program to ensure the removal of corrosion and maintain the visibility of fire hydrants throughout the City. Typically, the Utilities Division contracts for the reconditioning of approximately 300 City owned hydrants annually. The reconditioning of a fire hydrant involves sandblasting to remove existing paint and any corrosion followed by priming and painting of the hydrant. Coatings used on the hydrants are expected to last in excess of 10 years. As a result, reconditioning 300 hydrants per year is sufficient to meet the City’s needs. The City solicited proposals from seven contractors. One contractor returned a proposal to provide all specified services at a cost of $92.00 per hydrant for a total of $27,600.00. The budget for this project is $27,000.00; the total number of hydrants to be reconditioned can be adjusted to meet the budget. Staff reviewed the proposal and associated documents and recommends approval of the contract. Primary Issues to Consider • Do the hydrants need to be painted? Being in boulevards, hydrants are exposed to a variety of weather conditions which oxidizes the coatings and causing deterioration and corrosion. Painting the hydrants extends their service life. Supporting Information • A copy of the contract for services is attached. Financial Impact: $27,600.00 Budgeted: Yes Source: 7616.6280 Related Documents (CIP, ERP, etc.): 2018 Adopted Budget Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Neil Normandin, Interim Public Works Director 1 CONTRACT FOR SERVICES THIS AGREEMENT made this 16th day of July 2018, by and between the CITY OF LAKEVILLE, hereinafter referred to as the “City”, and B & B COMMERCIAL COATING, LLC, 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 reconditioning hydrants. 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 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 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 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 2 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 3 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. Contractor shall obtain the following minimum insurance coverage and maintain it at all times throughout the life of the Contract, with the Owner 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: 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 – $1,000,000 annual aggregate. Business Automobile Liability - $1,000,000 per occurrence combined single limit. Excess/Umbrella Liability - $1,000,000 each occurrence/aggregate 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 City 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 City as an additional insured with respect to General Liability, Auto Liability, and umbrella policies on a primary and non-contributory basis, 4 (iv) Shall be in accordance with specifications approved by the insurance advisory for City, and (v) Shall be evidenced by a Certificate of Insurance filed with the City prior to commencing work. Certificates of Insurance that do not meet these requirements will not be accepted. 9. TERM. The term of this Contract shall begin on or about July 17, 2018 and end on October 12, 2018, 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 Utilities Superintendent. The Utilities Superintendent, 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 times they will perform work. Utilities Superintendent’s mailing address is: 20195 Holyoke Avenue, Lakeville, MN 55044; telephone numbers are: (W) 952-985-2741; (C) 952-367-7334; email address is squade@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, 5 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: CONTRACTOR: 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. City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 B & B Commercial Coating, LLC P.O. Box 663 Maple Lake, MN 55358 6 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. Reconditioning of hydrant shall start at 7:30 a.m. and be completed before 4:30 p.m. daily. Work is not permitted on Saturdays, Sundays, and Holidays. 23. BACKGROUND CHECKS. The City must receive from the Contractor and each Contractor’s employee written authorization permitting the City of Lakeville 7 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. Dated: _____________, 2018. OWNER: CITY OF LAKEVILLE By: Douglas P. Anderson, Mayor And: _______________________________ Charlene Friedges, City Clerk Dated: _____________, 2018. CONTRACTOR: B & B COMMERCIAL COATING, LLC By: ________________________ [print name] Its ________________________ [title]