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HomeMy WebLinkAboutItem 06.l Date: Item No. APPROVAL OF A CONTRACT WITH APEX COMPANIES FOR DIRECTED ENGINEERING STUDY FOR LAKEVILLE AMES ARENA 2020 ICE PLANT REPLACEMENT PROJECT Proposed Action Staff recommends adoption of the following motion: Move to approve a contract with Apex Companies for Directed Engineering Study for Lakeville Ames Arena. Overview The project will include an in-depth study to identify all aspects of the Ames Arena 2020 Ice Plant Replacement Project. This study will focus on any areas to improve energy and operational efficiencies to reduce both the construction costs and long term operating expenses at the Arenas. The Lakeville Arenas Board has approved to move forward with this study to begin planning for the project. This study will take up to 100 days to complete and will be used to create the 2020 Arenas Budget beginning in March 2019. The funding for this study will come from the Arenas Capital Reserve Fund. Primary Issues to Consider • Why is the project necessary? The Ice Plant and Rink Floors at Ames Arena have reached their expected life span of 20-25 years. Additionally, the current refrigerant being used in the system (R22) is no longer produced and being phased out by the EPA. Supporting Information • The proposed contract is attached. Financial Impact: $ Budgeted: Y☒ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Shayne Ratcliff, Lakeville Arenas Manager September 4, 2018 40,000 8924.6541 Directed Engineering Study Page 1 City of Lakeville 20195 Holyoke, Lakeville, MN Directed Engineering Study This Directed Engineering Study (the "Agreement") is made and entered into as of the date of execution of this document, between Apex Efficiency Solutions (Apex), 403 Jackson Street, Suite 308, Anoka, MN 55303, and the City of Lakeville (Client), 20195 Holyoke, Lakeville, MN 55044. W I T N E S S E T H WHEREAS, Apex Efficiency Solutions (Apex) is a company with experience along with technical and management capabilities to provide for the discovery, engineering, packaging, procurement, installation, financing, maintenance and monitoring of two new rink floors, refrigeration system, dehumidification unit (Rink 2), HVAC, building addition, lighting, and other miscellaneous improvements, working in conjunction with the City’s staff and partners for the overall project as well as energy, utility, and operational saving measures at facilities similar in size, function and system type to Owner’s facilities; and WHEREAS, the Client has selected Apex to provide the services described herein; and WHEREAS, the Client desires to enter into an agreement to have Apex perform a directed engineering study to determine the feasibility of entering into a guaranteed energy savings project for the procurement and installation of a work noted above, working in conjunction with the Client’s staff and partners for the overall project, and related to the facilities for the Client. THEREFORE, the parties agree as follows: 1. Directed Engineering Study Apex agrees to complete the study and present, to the Client, a final report within 100 calendar days from the execution of this Agreement. However, Apex and the Client may mutually agree to extend the dates on all associated deadlines for this Agreement in the event the Client wishes to expand the scope of work to a degree sufficient enough to warrant an extension, e.g., a change in the scope of the engineering study requested by the Client. Any such extensions or changes must be in writing. The Client agrees to assist Apex in performing the study. The Client agrees to work diligently to provide full and accurate information. Apex agrees to work diligently to assess the validity of the provided information and to confirm or correct the information as needed. The scope of work shall be at a minimum as follows: City wide facility improvement measures including but not limited to the following: o Lighting – Interior/Exterior o Building Envelope o Water Conservation o HVAC and Controls Improvements o IT System Upgrades o Solar Directed Engineering Study Page 2 Ames and Hasse Arena Improvements: o New rink floors and dasher boards for Ames o New refrigeration system replacing the existing and related improvements to modify or replace the existing refrigeration room at Ames. o New high efficient dehumidification system replacing the BRR unit o Snowmelt pit modifications at Ames o Refrigeration controls at both arenas o Low-e ceilings (two) o Add heating system for Rink 1 at Ames. o Building envelope improvements at both sites o LED lighting at both sites o Other capital items as identified by City during the development (i.e. new parking lot, bleachers, etc.) 2. Compensation to Apex The Client shall compensate Apex for performance of the study by payment to Apex of $39,680.00. No reimburseables or extraneous compensation will be allowed under this agreement. The Client will have no obligation for compensation to Apex at the time of execution of this agreement. The Client acknowledges that compensation to Apex shall be based upon the completion of the Directed Engineering Study, and the meeting one of the following conditions: 1. If after the completion of the Directed Engineering Study, Apex finds that the implementation of the proposed project will not pay for itself through energy and operational savings in accordance with MN Statute 471.345 Subdivision 13, there will be no obligation of any payment to Apex. 2. If during the completion of the Directed Engineering Study, Apex develops a self- funding project that complies with MN Statute 471.345 Subdivision 13, and the owner chooses to not execute a Guaranteed Energy Savings Performance Contract for the execution of the project with Apex, the owner shall make payment to Apex for the amount stipulated in this agreement. 3. If within 60 days after the completion of the Directed Engineering Study, the Client executes a Guaranteed Energy Savings Performance Contract with Apex for the project in accordance with MN Statute 471.345 Subdivision 13, compensation for this agreement will be incorporated into the Guaranteed Energy Savings Performance Contract and funded as part of the project. 3. Additional Conditions See attached Exhibit A. Apex Efficiency Solutions, SBC City of Lakeville Name:__________________Name:__________________ Title:___________________Title:___________________ Sign:___________________Sign:___________________ Date:___________________Date:___________________ Directed Engineering Study – Exhibit A Page 1 Exhibit A Additional Conditions 1.01 DOCUMENTS. The Client shall be the owner of all documents, reports, studies, analysis and the like prepared by Apex in conjunction with this contract. 1.02 STANDARD OF CARE. Apex shall exercise the same degree of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by members of the profession under similar circumstances in Dakota County, Minnesota. Apex shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss or damages proximately caused by Apex’s breach of this standard of care. Client shall not be responsible for discovering deficiencies in the accuracy of Apex’s services. Apex shall be responsible for the accuracy of the work and shall promptly make necessary revisions or corrections resulting from errors and omissions on the part of Apex without additional compensation. 1.03 COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Apex shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of services to be provided. 1.04 INDEMNIFICATION. Apex shall indemnify and hold harmless the Client, its officers, agents, and employees, of and from any and all claims, demands, actions, causes of action, including costs and attorney's fees, arising out of or by reason of the execution or performance of the work or services provided for herein to the comparative extent they are caused by Apex’s negligent acts or omissions or those negligent acts or omissions of persons for whom Apex is legally responsible. The Client shall indemnify and hold harmless Apex, its officers, agents, and employees, of and from any and all claims, demands, actions, causes of action, including costs and attorney's fees, arising out of or by reason of the execution or performance of the work or services provided for herein to the comparative extent they are caused by Client’s negligent acts or omissions or those negligent acts or omissions of persons for whom Client is legally responsible. Notwithstanding any other term, covenant or condition of this Agreement, the Client’s liability under this Agreement for any claim of any nature or any cause of action against the Client, by any person or party, including Apex, is limited to the liability limits set forth in Minnesota Statutes, Chapter 466. Neither the Client or Apex shall be obligated to indemnify the other party in any manner whatsoever for the other party’s own negligence 1.05 COPYRIGHT. Apex shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by them, and they shall hold harmless the Client from loss or damage resulting therefrom. 1.06 INSURANCE. Apex shall secure and maintain such insurance as will protect Apex from claims under the Worker's Compensation Acts, automobile liability, and from claims for bodily injury, death, or property damage which may arise from the performance of services under this Agreement. Such insurance shall be written for amounts not less than: Commercial General Liability (or in combination with an umbrella policy) $2,000,000 Each Occurrence $2,000,000 Products/Completed Operations Aggregate $2,000,000 Annual Aggregate Directed Engineering Study – Exhibit A Page 2 The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability Automobile Liability $2,000,000 Combined Single Limit – Bodily Injury & Property Damage Including Owned, Hired & Non-Owned Automobiles Workers Compensation Workers’ Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Employer’s Liability with minimum limits are as follows: $500,000 – Bodily Injury by Disease per employee $500,000 – Bodily Injury by Disease aggregate $500,000 – Bodily Injury by Accident The Client shall be named as an additional insured on the general liability and umbrella policies on a primary and non-contributory basis. Apex shall secure and maintain a professional liability insurance policy. Said policy shall insure payment of damages for legal liability arising out of the performance of professional services for the Client, in the insured's capaClient as Apex, if such legal liability is caused by a negligent act, error or omission of the insured or any person or organization for which the insured is legally liable. The policy shall provide minimum limits of $2,000,000 with a deductible maximum of $125,000 unless the Client agrees to a higher deductible. Before commencing work, Apex shall provide the Client a certificate of insurance evidencing the required insurance coverage in a form acceptable to Client. 1.07 INDEPENDENT CONTRACTOR. The Client hereby retains Apex as an independent contractor upon the terms and conditions set forth in this Agreement. Apex is not an employee of the Client and is free to contract with other entities as provided herein. Apex shall be responsible for selecting the means and methods of performing the work. Apex shall furnish any and all supplies, equipment, and incidentals necessary for Apex’s performance under this Agreement. Client and Apex agree that Apex shall not at any time or in any manner represent that Apex or any of Apex’s agents or employees are in any manner agents or employees of the Client. Apex shall be exclusively responsible under this Agreement for Apex’s own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 1.08 SUBCONTRACTORS. Apex shall not enter into subcontracts for services provided under this Agreement without the express written consent of the Client. Apex shall comply with Minnesota Statute § 471.425. Apex must pay subcontractor for all undisputed services provided by Subcontractor within ten days of Apex’s receipt of payment from Client. Apex must pay interest of 1.5 percent per month or any Directed Engineering Study – Exhibit A Page 3 part of a month to subcontractor on any undisputed amount not paid on time to subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. 1.09 ASSIGNMENT. Neither party shall assign this Agreement, or any interest arising herein, without the written consent of the other party. 1.10 WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 1.11 ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 1.12 CONTROLLING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 1.13 RECORDS. Apex shall maintain complete and accurate records of time and expense involved in the performance of services. 1.14 AUDIT DISCLOSURE AND DATA PRACTICES. Any reports, information, data, etc. given to, or prepared or assembled by Apex under this Agreement which the Client requests to be kept confidential, shall not be made available to any individual or organization without the Client’s prior written approval. The books, records, documents and accounting procedures and practices of Apex or other parties relevant to this Agreement are subject to examination by the Client and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined in the Data Practices Act Section 13.02, Subd. 7, which is created, collected, received, stored, used, maintained, or disseminated by Apex in performing any of the functions of the Client during performance of this Agreement is subject to the requirements of the Data Practice Act and Apex shall comply with those requirements as if it were a government entity. All subcontracts entered into by Apex in relation to this Agreement shall contain similar Data Practices Act compliance language.