Loading...
HomeMy WebLinkAboutItem 06.o Date: January 7, 2019 Item No. APPROVAL OF A CONTRACT FOR REPAIR TO THE SALT STORAGE FACILITY WITH GREYSTONE CONSTRUCTION COMPANY Proposed Action Staff recommends adoption of the following motion: Move to approve a contract with Greystone Construction Company for repairs to the salt storage facility. Overview The Streets Division receives shipments of deicing chemicals both in preparation for and throughout the winter season. The shipments come from the contractor in semi-trailer end dump trucks. During the process of unloading, the trucks lift the front of the box up to the height of the roof frames. Recently, one of the trucks struck the bottom of one of the frames bending it and damaging two purlins. To restore the roof to its original capacity, angles will be welded to the frame, along with new tabs to support the purlins. Staff is working with the hauler’s insurance company regarding the cost of repairs. Greystone Construction Company submitted a quote of $7,500.00 for the engineering and repair of the roof frame. This meets the City’s purchasing policy requirements. Recommend approval of the contract. Primary Issues to Consider • Can this be prevented from happening again? Staff work with the drivers to properly position their vehicles within the salt storage facility so that the product stays within the covered portion of the facility. Final responsibility for raising and monitoring the position of the box rests with the vehicle operator. Supporting Information • A copy of the proposed contract is attached. Financial Impact: $7,500.00 Budgeted: No Source: Street Operating Budget Related Documents (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Neil Normandin, Interim Public Works Director 2 FORM OF AGREEMENT BETWEEN CITY OF LAKEVILLE AND CONTRACTOR FOR NON-BID CONSTRUCTION CONTRACT THIS AGREEMENT, made this 7h day of January 2019, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation (“Owner”) and GREYSTONE CONSTRUCTION COMPANY (“Contractor”). Owner and Contractor, in consideration of the mutual covenants set forth herein, agree as follows: 1. 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 Agreement; B. LSEngineers, Inc. Specifications Letter and Drawings dated December 3, 2018; C. Contractor’s Contract dated December 4, 2018. In the event of a conflict among the provisions of the Contract Documents, 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. 2. OBLIGATIONS OF THE CONTRACTOR. The contractor shall provide the goods, services, and perform the work in accordance with the Contract Documents. 3. CONTRACT PRICE. Owner shall pay Contractor Seven Thousand Five Hundred Dollars and no/100 ($7500.00) for completion of the Work in accordance with the Contract Documents. 4. PAYMENT PROCEDURES. A. Contractor shall submit Applications for Payment. Applications for Payment will be processed by the City Streets Superintendent. B. Progress Payments; Retainage. This is a lump sum contract. Owner shall make payments in accordance with the Contractor’s proposal upon satisfactory completion of work. C. Payments to Subcontractor. (1) Prompt Payment to Subcontractors. 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 3 provided by the subcontractor. The Contractor must pay interest of 1 ½ 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. (2) Form IC-134 (attached) required from general contractor. Minn. Stat. § 290.92 requires that the City of Lakeville obtain a Withholding Affidavit for Contractors, Form IC-134, before making final payments to Contractors. This form needs to be submitted by the Contractor to the Minnesota Department of Revenue for approval. The form is used to receive certification from the state that the vendor has complied with the requirement to withhold and remit state withholding taxes for employee salaries paid. 5. COMPLETION DATE/LIQUIDATED DAMAGES. A. The Work must be completed by February 28, 2019. 6. CONTRACTOR’S REPRESENTATIONS. A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work. C. Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. D. Contractor has obtained and carefully studied (or assumes responsibility for doing so) all additional or supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions (surface, subsurface, and Underground Facilities) at or contiguous to the Site which may affect cost, progress, or performance of the Work or which relate to any aspect of the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor, including any specific means, methods, techniques, sequences, and procedures of construction expressly required by the Contract Documents, and safety precautions and programs incident thereto. E. Contractor does not consider that any further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the 4 Work at the Contract Price, within the Contract Terms, and in accordance with the other terms and conditions of the Contract Documents. F. Contractor is aware of the general nature of work to be performed by Owner and others at the Site that relates to the Work as indicated in the Contract Documents. G. Contractor has correlated the information known to Contractor, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Documents, and all additional examinations, investigations, explorations, tests, studies, and data with the Contract Documents. H. Contractor has given the Owner written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by the Owner is acceptable to Contractor. I. This contract shall be governed by the laws of the State of Minnesota. J. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. K. Subcontracts: (1) Unless otherwise specified in the Contract Documents, the Contractor shall, upon receipt of the executed Contract Documents, submit in writing to the Owner the names of the Subcontractors proposed for the work. Subcontractors may not be changed except at the request or with the consent of the Owner. (2) The Contractor is responsible to the Owner for the acts and omissions of the Contractor's subcontractors, and of their direct and indirect employees, to the same extent as the Contractor is responsible for the acts and omissions of the Contractor's employees. (3) The Contract Documents shall not be construed as creating any contractual relation between the Owner and any subcontractor. (4) The Contractor shall bind every Subcontractor by the terms of the Contract Documents. 7. INSURANCE. A. Prior to commencing work on the Contract, the Contractor shall furnish the City a certificate of insurance. The Contractor shall furnish and maintain 5 during 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 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 B. All insurance policies (or riders) required by this Agreement shall be (1) 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, (2) Shall contain a provision that the insurer shall not cancel or 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, (3) 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) Shall be in accordance with specifications approved by the insurance advisory for City, and (5) Shall 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. (6) Certificates of Insurance shall include the policy endorsements showing the City named as additional insured on a primary and non-contributory basis. 8. WARRANTY. The Contractor warrants to the Owner that all materials and equipment furnished under this Agreement will be new, unless otherwise specified, and that all Work will be of good quality, free from improper workmanship, and defective 6 materials, and in conformance with the Drawings and Specifications. The Contractor agrees to correct all Work performed by it under this Agreement which proves to be defective in material and workmanship within a period of one year from the date of completion, or for such longer period of time as may be set forth with respect to specific warranties contained in the Specifications. The giving of the warranty in this Section shall not be construed to limit or modify any other legal rights or remedies of the Owner but shall be in addition to such rights and remedies. 9. INDEMNITY. The Contractor agrees to indemnify and hold the Owner harmless from any claim made by third parties as a result of the services performed by it. In addition, the Contractor shall reimburse the Owner for any cost of reasonable attorney’s fees it may incur as a result of any such claims. 10. PERFORMANCE AND PAYMENT BONDS. Performance and Payment Bonds are not required. 11. MISCELLANEOUS. A. Owner and Contractor each binds itself, its partners, successors, assigns and legal representatives to the other party hereto, its partners, successors, assigns and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents. B. Any provision or part of the Contract Documents held to be void or unenforceable under any Law or Regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon Owner and Contractor, who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provisions. C. Data Practices/Records. (1) 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. (2) All books, records, documents and accounting procedures and practices to the Contractor and its subcontractors, if any, relative to this Contract are subject to examination by the Owner. D. Software License. If the equipment provided by the Contractor pursuant to this Contract contains software, including that which the manufacturer may have 7 embedded into the hardware as an integral part of the equipment, the Contractor shall pay all software licensing fees. The Contractor shall also pay for all software updating fees for a period of one year following cutover. The Contractor shall have no obligation to pay for such fees thereafter. Nothing in the software license or licensing agreement shall obligate the Owner to pay any additional fees as a condition for continuing to use the software. E. Patented devices, materials and processes. If the Contract requires, or the Contractor desires, the use of any design, devise, material or process covered by letters, patent or copyright, trademark or trade name, the Contractor shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the Owner. If no such agreement is made or filed as noted, the Contractor shall indemnify and hold harmless the Owner from any and all claims for infringement by reason of the use of any such patented designed, device, material or process, or any trademark or trade name or copyright in connection with the Project agreed to be performed under the Contract, and shall indemnify and defend the Owner for any costs, liability, expenses and attorney's fees that result from any such infringement F. Assignment. Neither party may assign, sublet, or transfer any interest or obligation in this Contract without the prior written consent of the other party, and then only upon such terms and conditions as both parties may agree to and set forth in writing. G. Waiver. In the particular event that either party shall at any time or times waive any breach of this Contract by the other, such waiver shall not constitute a waiver of any other or any succeeding breach of this Contract by either party, whether of the same or any other covenant, condition or obligation. H. Governing Law/Venue. The laws of the State of Minnesota govern the interpretation of this Contract. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Dakota County. I. Severability. If any provision, term or condition of this Contract is found to be or become unenforceable or invalid, it shall not affect the remaining provisions, terms and conditions of this Contract, unless such invalid or unenforceable provision, term or condition renders this Contract impossible to perform. Such remaining terms and conditions of the Contract shall continue in full force and effect and shall continue to operate as the parties’ entire contract. J. Entire Agreement. This Contract represents the entire agreement of the parties and is a final, complete and all-inclusive statement of the terms thereof, and 8 supersedes and terminates any prior agreement(s), understandings or written or verbal representations made between the parties with respect thereto. K. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees therefore, and give all notices necessary and incidental to the construction and completion of the Project. The Contractor shall not be entitled to any additional compensation for any construction delay resulting from the Owner’s not timely obtaining rights-of-way or easements. L. If the work is delayed or the sequencing of work is altered because of the action or inaction of the Owner, the Contractor shall be allowed a time extension to complete the work but shall not be entitled to any other compensation. M. Condition of the Site. Owner shall provide Contractor with information regarding the condition of the site prior to commencement of construction, including surveys, soils reports and information regarding underground utilities, tanks or other buried equipment or obstructions. Contractor shall not be responsible for damage to underground utilities, tanks or other buried equipment or obstructions not disclosed to Contractor prior to commencement of the Work. N. Use of Site. Owner shall provide Contractor with open access to the site for purposes of performing the work. O. Clean Up. Contractor shall keep the premises and surrounding area free from accumulation of debris and trash related to this work. OWNER: CONTRACTOR: CITY OF LAKEVILLE GREYSTONE CONSTRUCTION COMPANY BY: __________________________ BY: ____________________________ Douglas P. Anderson, Mayor Its: _________________________ AND ___________________________ Charlene Friedges, City Clerk