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HomeMy WebLinkAboutItem 06.e Date: August 6, 2018 Item No. APPROVAL OF A CONTRACT WITH ELEVATION COATING LLC FOR WATER TOWER MAINTENANCE REPAIRS Proposed Action Staff recommends adoption of the following motion: Move to approve a contract with Elevation Coating LLC for water tower maintenance repairs. Overview The project consists of exterior coating repairs to the elevated water storage tanks at Michaud Park and the Central Maintenance Facility. Both tanks suffered delamination of the exterior coatings during cleaning in 2017. Proposed repairs include exterior surface preparation and the application of a new coatings on delaminated areas of both tanks. With these spot repairs, full exterior painting of the towers can be rescheduled for 2022. The City, through its consultant, SEH, solicited proposals from four contractors. All four returned proposals in the range from $52,500.00 to $193,450.00. Elevation Coating LLC provided a proposal that met the specifications at the least cost to the City. SEH reviewed the qualifications of Elevation Coating LLC and consider that they have the requisite experience to complete the project as specified. Staff has also reviewed the proposal and recommends approval of a contract with Elevation Coating LLC in the amount of $52,500.00. Primary Issues to Consider • Why are the repairs necessary? Delamination of the coating system on the towers has the potential to cause further deterioration of the coating system expose the underlying metal structure to corrosion. Supporting Information • A letter of recommendation from SEH and the proposed contract are attached. Financial Impact: $52,500.00 Budgeted: Yes Source: 7624.6295 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 Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 3535 Vadnais Center Drive, St. Paul, MN 55110-5196 SEH is 100% employee-owned | sehinc.com | 651.490.2000 | 800.325.2055 | 888.908.8166 fax July 3, 2018 RE: City of Lakeville Water Tower Maintenance Repairs SEH No. LAKEV 145954 14.00 Shane Quade - Utilities Superintendent City of Lakeville 18400 Ipave Avenue Lakeville, MN 55044 squade@lakevillemn.gov Dear Shane: On June 28, 2018, four bids were received for the above-referenced project. The bids ranged from a high of $128,648 to a low of $52,500. The low bid was submitted by Elevation Coating, LLC. Contractor Total Bid Elevation Coating, LLC $52,500.00 TMI Coatings, Inc. $73,000.00 Champion Tank Service $148,000.00 Classic Protective Coatings $193,450.00 The low bid received was submitted by Elevation Coating, LLC of St. Cloud, Minnesota, in the amount of $52,500. In preparing this letter related to this contractor’s qualifications regarding this project, SEH has reviewed the submitted quotation, general terms and conditions, and insurance certificates. We conclude that Elevation Coating, LLC has the experience to complete the project and has acknowledged the specification and scope of work in it’s entirety. Accordingly, we recommend the project be awarded to Elevation Coating, LLC in the amount of $52,500. Sincerely, SHORT ELLIOTT HENDRICKSON INC. Chris Wolfgram Project Manager cew s:\ko\l\lakev\145954\1-genl\14-corr\recommendation for award letter 070318.docx 1 CONTRACT FOR SERVICES THIS AGREEMENT, made this 6th day of August 2018, by and between CITY OF LAKEVILLE, a Minnesota municipal corporation (“Owner”) and ELEVATION COATING, LLC. (“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 water tower maintenance repairs at the Michaud Park and Central Maintenance Facility water towers. 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. Project Specifications dated May 17, 2018, including City of Lakeville Forms and Project Insurance Requirements C. Contractor’s Quotation dated June 28, 2018. 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 "C" 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 Contractor’s Quotation dated June 28, 2018. 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 2 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. 3 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 4 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. RESPONSIBLE CONTRACTOR. Any prime contractor or subcontractor that does not meet the minimum criteria established for a “responsible contractor” as defined in Minn. Stat. § 16C.285, subd. 3, or fails to verify that it meets those criteria is not a responsible contractor and is not eligible to be awarded a construction contract for the Project or to perform work on the Project. 5 Responding contractors shall submit to the City a signed statement under oath by an owner or officer verifying compliance with each of the minimum criteria in Minn. Stat. § 16C.285, subd. 3, at the time that it responds to this solicitation document. A prime contractor shall submit to the City, upon request, copies of the signed verifications of compliance from all subcontractors. A false statement under oath verifying compliance with any of the minimum criteria shall make the prime contractor or subcontractor that makes the false statement ineligible to be awarded a construction project and may result in termination of a contract awarded to a prime contractor or subcontractor that submits a false statement 12. 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. 13. 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 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. 14. 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. 15. 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: 6 OWNER: CONTRACTOR: 16. 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. 17. NO ASSIGNMENT OR SUBCONTRACTING. The Owner 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. 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. 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. 20. 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. City of Lakeville 20195 Holyoke Avenue Lakeville MN 55044 Elevation Coating LLC 7391 43rd Avenue SE St. Cloud MN 56304 7 21. 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 22. 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. 23. 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 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: Colleen J. Ratzlaff LaBeau, Acting Mayor And: _______________________________ Charlene Friedges, City Clerk 8 Dated: _____________, 2018. CONTRACTOR: ELEVATION COATING, LLC By: ________________________ [print name] Its ________________________ [title]