Loading...
HomeMy WebLinkAboutItem 06.m APPROVAL OF A CONTRACT WITH INTERSTATE POWER SYSTEMS, INC. FOR THE REPLACEMENT OF BACKUP GENERATORS AT CITY HALL AND FIRE STATION 4 Proposed Action Staff recommends adoption of the following motion: Move to approve a contract with Interstate Power Systems, Inc. for replacement of backup power generators at City Hall and Fire Station 4. Overview The replacement of the City Hall backup generator was planned as part of the 2020 building fund and $150,000.00 was set aside for this purpose. In January, the ignition module on the backup generator at Fire Station 4 failed, leaving that generator inoperable. Due to age of equipment and obsolescence of repair parts, replacement of the Fire 4 generator is also recommended at this time. Both City Hall and Fire Station 4 existing generators supply minimal power to the facility to operate essential building systems such as network centers and apparatus bay doors. The proposed replacement generators are sized to take the full electrical load of each building allowing them to continue full operations in the event of a power failure. The City solicited quotes from two contractors for the replacement of both generators. The best cost option was presented by Interstate Power Systems at $152,475 for equipment and installation. There are expected to be some additional costs for removal of existing generators, concrete pads, electrical and natural gas connections and grading estimated at $10,000. Costs for these items are not included in the proposal costs and will be addressed by city staff and contractors by other contractors or City staff. Fun ding for this project will be provided by the Building Fund. Staff is not requesting a budget amendment at this time. Primary Issues to Consider • Is generator replacement necessary? Yes. The Fire Station 4 generator is inoperable and must be replaced. The City Hall generator size does not allow it to power any building systems such as the HVAC, lights, computers, and electronic door locks. Supporting Information • A tabulation of proposals and a copy of the contract are attached. Financial Impact: $152,475 Budgeted: Yes Source: Building Fund Related Documents (CIP, ERP, etc.): 2020 Approved Budget Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Tim Redepenning, Facilities Supervisor Date: April 6, 2020 Item No. 1 CONTRACT FOR SERVICES THIS AGREEMENT made this 6th day of April 2020, by and between the CITY OF LAKEVILLE, hereinafter referred to as the “City”, and INTERSTATE POWER SYSTEMS, INC., a Minnesota corporation, 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 the replacement of generators at Lakeville City Hall and Lakeville Fire Station 4. 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. Contractor’s Proposals for Lakeville City Hall dated February 17, 2020 and Lakeville Fire Station 4 dated February 14, 2020. 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 "B" having the last priority. 3. OBLIGATIONS OF THE CONTRACTOR. A. 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. B. Contractor shall exercise the same degree of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a 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. C. The Contractor shall complete the work no later than August 30, 2020. 4. PAYMENT. A. The City agrees to pay and the Contractor agrees to receive and accept payment in accordance with the prices quoted for Lakeville City Hall, $106,250.00, and for 2 Lakeville Fire Station 4, $46,225.00, which are inclusive of sales tax, as set forth in the Contractor’s 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 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. 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. 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 3 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 Except as provided below, Contractor must provide Workers’ Compensation insurance for all its employees and, in case any work is subcontracted, Contractor will require the subcontractor to provide Workers’ Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Coverage B, Employer’s Liability. Insurance 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 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 4 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. 9. TERM. The term of this Contract shall be from date of award to completion of all work associated with replacement of the generators, unless sooner terminated as hereinafter provided. 10. RESPONSIBLE CONTRACTOR. The Contractor 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. 5 11. 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. 12. SUPERVISION OF CONTRACTOR. The City’s designated supervisor will be the Facilities Supervisor. The Facilities Supervisor, 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 supply the dates and the times they will perform work at each facility. The Facilities Supervisor’s mailing address is: 20195 Holyoke Avenue, Lakeville, MN 55044; telephone numbers are: (W) 952-985-2630; (C) 952-292-3374; email address is tredepenning@lakeillemn.gov. 13. 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. This contract may be terminated by the City at any time upon discovery by the City that the prime contractor or subcontractor has submitted a false statement under oath verifying compliance with any of the minimum criteria set forth in Minn. Stat. § 16C.285, subd. 3. 14. 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. 6 15. 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: 16. 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. 17. 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. 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. City of Lakeville 20195 Holyoke Avenue Lakeville MN 55044 Interstate Power Systems, Inc. 21568 Highview Avenue Lakeville MN 55044 7 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. 20. 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 proposal specific ations. 21. 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. 22. 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. 8 23. WORK HOURS. Working hours shall be restricted to the hours of 7:00 a.m. to 3:30 p.m., Monday through Friday. Changes to those hours should be coordinated with the City. 24. 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: INTERSTATE POWER SYSTEMS, INC. BY: (Print Name) Its: Contractor City Hall Fire Station 4 Total Cost Interstate Power Systems 106,250.00 46,225.00 152,475.00$ Kodiak Power Systems 161,527.00 79,637.00 241,164.00$ PROPOSAL TABULATION REPLACEMENT OF CITY HALL AND FIRE STATION 4 GENERATORS