HomeMy WebLinkAboutItem 06.g
Date: November 18, 2019 Item No.
APPROVAL OF A CONTRACT FOR THE REHABILITATION OF WELLS NO. 8 AND
NO. 11 WITH BERGERSON CASWELL, INC.
Proposed Action
Staff recommends adoption of the following motion: Move to approve a contract with Bergerson
Caswell, Inc. for the rehabilitation of Wells No. 8 and No. 11.
Overview
Well rehabilitation is part of an ongoing preventive maintenance program to ensure the optimal
functioning of production wells. Both Wells No. 8 and No. 11 are submersible wells with both
the pump and motor under water. These types of wells are typically scheduled for rehabilitation
every 8 to 10 years.
Well rehabilitation involves the removal and inspection of the pump and bowl assembly, the
motor, and the column piping. The wells are televised, and any excessive amounts of sand will be
removed. Any worn or corroded components will be replaced.
Five contractors returned bids with Bergerson Caswell, Inc. providing the most cost-effective bid
at $149,750.00 in compliance with all specified services. The amount shown represents the cost
of rehabilitation and the replacement of the motor should it be required.
Staff has reviewed the proposals and associated documents and recommends approval of the
contract.
Primary Issues to Consider
• Does the well need to be rehabilitated? Rehabilitation of the wells is a reasonable preventive
maintenance action to ensure that they are functioning efficiently and as designed. Without
periodic rehabilitation, failure of the wells at some point would lead inefficient production
and to much higher costs for repair.
Supporting Information
• A copy of the contract for services and tabulation of proposals are attached.
Financial Impact: $149,750.00 Budgeted: $180,000.00 Source: 7610.6295
Related Documents (CIP, ERP, etc.): 2019 adopted budget
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Neil Normandin, Public Works and Facilities Coordinator
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CONTRACT FOR SERVICES
THIS AGREEMENT made this 18th day of November 2019, by and between the CITY
OF LAKEVILLE, hereinafter referred to as the “City”, and BERGERSON CASWELL, INC.,
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 repair and replacement of equipment for the rehabilitation of
Lakeville Wells 8 and 11. 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. Technical Specification for Rehabilitation of Wells 8 and 11.
C. Instructions to Bidders.
C. Contractor’s Bid.
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, not to exceed $149,750.00, which is inclusive of sales
tax, as set forth in the completed Bid Form. Payment to the Contractor shall be lump sum at the
completion of work based on the submission and approval of an invoice.
B. Payments to Subcontractor.
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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 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 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.
A. Additional work performed without authorization of an amendment of this
Contract will not entitle Contractor to an increase in the Contract Price or an
extension of the Contract Time.
5. INDEMNIFICATION. To the fullest extent permitted by law, Contractor agrees
to defend, indemnify and hold harmless the City, and its employees, officials, and agents from
and against all claims, actions, damages, losses and expenses, including reasonable attorney fees,
arising out of Contractor’s negligence or its performance or failure to perform its obligations
under this Contract. Contractor’s indemnification obligation shall apply to subcontractor(s), or
anyone directly or indirectly employed or hired by Contractor, or anyone for whose acts
Contractor may be liable. Contractor agrees this indemnity obligation shall survive the
completion or termination of this Contract.
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.
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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 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. Prior to the start of the project, Contractor shall furnish to the
City a certificate of insurance showing proof of the required insurance required under this
Paragraph. Contractor shall take out and maintain or cause to be taken out and maintained until
six (6) months after the City has accepted the public improvements, such insurance as shall
protect Contractor and the City for work covered by the Contract including workers’
compensation claims and property damage, bodily and personal injury which may arise from
operations under this Contract, whether such operations are by Contractor or anyone directly or
indirectly employed by either of them. The minimum amounts of insurance shall be as follows:
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
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
If Minnesota Statute 176.041 exempts Contractor from Workers’ Compensation
insurance or if the Contractor has no employees in the City, Contractor must provide a
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written statement, signed by an authorized representative, indicating the qualifying
exemption that excludes Contractor from the Minnesota Workers’ Compensation
requirements. If during the course of the contract the Contractor becomes eligible for
Workers’ Compensation, the Contractor must comply with the Workers’ Compensation
insurance requirements herein and provide the City with a certificate of insurance.
Professional/Technical (Errors and Omissions) Liability Insurance
This policy will provide coverage for all claims the contractor may become legally
obligated to pay resulting from any actual or alleged negligent act, error, or omission
related to Contractor’s professional services required under the contract. Contractor is
required to carry the following minimum limits:
$1,000,000 – per claim or event
$2,000,000 – annual aggregate
Any deductible will be the sole responsibility of the Contractor and may not exceed
$50,000 without the written approval of the City. If the Contractor desires authority from
the City to have a deductible in a higher amount, the Contractor shall so request in
writing, specifying the amount of the desired deductible and providing financial
documentation by submitting the most current audited financial statements so that the
City can ascertain the ability of the Contractor to cover the deductible from its own
resources.
The retroactive or prior acts date of such coverage shall not be after the effective date of
this Contract and Contractor shall maintain such insurance for a period of at least three
(3) years, following completion of the work. If such insurance is discontinued, extended
reporting period coverage must be obtained by Contractor to fulfill this requirement.
The Contractor’s insurance must be “Primary and Non-Contributory”.
All insurance policies (or riders) required by this Contract shall be (i) taken out by 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, (ii) shall name the
City, its employees and agents as additional insureds (CGL and umbrella only) by endorsement
which shall be filed with the City. A copy of the endorsement must be submitted with the
certificate of insurance.
Contractor’s policies and Certificate of Insurance shall contain a provision that coverage
afforded under the policies shall not be cancelled without at least thirty (30) days’ advanced
written notice to the City, or ten (10) days’ notice for non-payment of premium.
An Umbrella or Excess Liability insurance policy may be used to supplement Contractor’s policy
limits on a follow-form basis to satisfy the full policy limits required by this Contract.
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9. TERM. The term of this Contract shall be for the duration of the project. All
work must be completed and the wells returned to service no later than January 31, 2020.
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 Utilities Superintendent’s mailing address is: 20195
Holyoke Avenue, Lakeville, MN 55044. Telephone numbers are: (W) 952-985-2741; (C) 952-
367-7334.
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, 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. DOCUMENTS. The City shall be the owner of all documents, reports, studies,
analysis and the like prepared by the Contractor in conjunction with this contract.
15. COMPLIANCE WITH LAWS AND REGULATIONS. In providing services
hereunder, Contractor shall abide by all statutes, ordinances, rules and regulations pertaining to the
provisions of services to be provided.
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16. STANDARD OF CARE. Contractor shall exercise the same degrees of care, skill,
and diligence in the performance of the Services as is ordinarily possessed and exercised by a
professional Contractor under similar circumstances. No other warranty, expressed or implied,
is included in this Agreement. City shall not be responsible for discovering deficiencies in the
accuracy of Contractor’s services.
17. 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: City of Lakeville
20195 Holyoke Avenue
Lakeville MN 55044
CONTRACTOR: Bergerson Caswell, Inc.
5115 Industrial Street
Maple Plain MN 55359
18. 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.
19. 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.
20. 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.
21. 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
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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 City.
22. 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. The Contractor must provide a one-year warranty bond from date of final
acceptance and final payment.
23. 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.
24. 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 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 supplier, 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.
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25. WORK HOURS. The schedule of work shall be coordinated with the Utilities
Superintendent. The Contractor shall provide the City a minimum of 24 hours’ notice before
commencing work on the well.
26. BACKGROUND CHECKS. The City must receive from the Contractor and each
Contractor’s employee written authorization permitting the City of Lakeville 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.
CITY OF LAKEVILLE
BY:
Douglas P. Anderson, Mayor
AND
Charlene Friedges, City Clerk
CONTRACTOR:
BERGERSON CASWELL, INC.
BY:
(Print Name)
Its:
Contractor Bid BondPart 1 MobilizationPart 2 Well RehabPart 3 Sand RemovalTotal BidMineral Service Plus, LLC Yes 17,700.00 39,066.00 111,520.00 168,286.00$ E.H.Renner & Sons Yes 26,000.00 79,678.00 50,000.00 155,678.00$ Keys Well Drilling Yes 53,400.00 55,000.00 64,000.00 172,400.00$ Bergerson‐Caswell, Inc Yes 33,750.00 71,000.00 45,000.00 149,750.00$ Traut Companies Yes 59,500.00 72,255.00 90,000.00 221,755.00$ BID TABULATIONREHABILITATION OF WELLS NO. 8 AND 1111:00 a.m., Friday, November1, 2019