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HomeMy WebLinkAboutItem 06.iDate: 15 December 2010 Item No. APPROVAL OF A CONTRACT WITH ARCHER MECHANICAL LLC FOR THE WATER TREATMENT FACILITY DEHUMIDIFIER INSTALLATION PROJECT Proposed Action Staff recommends adoption of the following motion: Move to approve a contract with Archer Mechanical LLC for the Water Treatment Facility (WTF) dehumidifier installation project. Passage of this motion enables the installation of a new dehumidifier in the WTF to replace one that has reached the end of its service life and improve energy efficiency at the facility. Overview Operation, maintenance and serviceability of the current dehumidifier have been concerns over the past few years. Breakdowns have become more frequent and replacement of parts more difficult as the equipment ages. Installed during the WTF's construction, the dehumidifier is important in reducing the damaging effects of condensation on pipes and equipment in the pipe gallery and plate settler areas. The replacement dehumidifier will result in approximately a 16 percent increase in energy efficiency, saving the facility about $2,600 dollars per year in energy costs. As a project to improve the overall energy efficiency of the WTF, it was proposed and approved under the Energy Efficiency and Conservation Block Grant Program and is funded through the Department of Energy. The City solicited and received proposals from three qualified vendors. Archer Mechanical LLC provided for installation at the lowest cost. The City purchased the dehumidifier separately from the manufacturer. Staff recommends approval of this contract. Primary Issues to Consider • What is the impact of the dehumidifier? Dehumidification is provided to areas in the WTF to reduce the effects of high humidity and the resulting condensation that can corrode pipes and damage pneumatically operated equipment. Supporting Information • The ta•ul.tion of p • osals and contract are attached. /� hristop er yetree Operations and Maintenance Director Financial Impact: $11,568.23 Related Documents (CIP, ERP, etc.): Energy Efficiency and Conservation Block Grant Program Notes: Block Grant approved budget was $21,895 Budgeted: Yes Source: 7600.1721 Company Addenda Received Total Cost Archer Mechanical LLC Yes $11,568.23 Nasseff Mechanical Contractors Yes $12,670.00 Northland Mechanical Contractors, Inc. Yes $24,800.00 WATER TREATMENT FACILITY DEHUMIDIFIER INSTALLATION PROJECT TABULATION OF PROPOSALS CONTRACT FOR THE INSTALLATION OF A DEHUMIDIFIER THIS AGREEMENT made this 20 day of December 2010, by and between the CITY OF LAKEVILLE, hereinafter referred to as the "City ", and ARCHER MECHANICAL LLC, 1614 EAST CLIFF ROAD, BURNSVILLE, MN 55337, 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 consists of the installation of a Dehumidifier at the Lakeville Water Treatment Facility. 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 the Installation of a Dehumidifier ". B. Dehumidifier Installation Project Specifications and Proposal Package. C. Part 1. General. D. Part 2. Technical E. Part 3. Execution. E. Special Terms and Conditions. F. Proposal Form and Cost Itemization. G. Drawings prepared and provided by the City of Lakeville. H. Exhibit A — Wage Determination I. Addendum (addenda). 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 "I" 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 Contractor agrees to perform all of the work described in the Contract Documents for the sum of $ 11,568.23. The City agrees to pay and the Contractor agrees to receive and accept payment in accordance with the prices quoted, which is inclusive of sales tax, as set forth in the completed Cost Itemization form. B. The City shall make 95% progress payments monthly on account of the Contract Price on the basis of Contractor's Applications for Payment during performance of the Work. C. 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 11/2 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. D. Form IC -134 Required from General Contractor. Minn. Stat. § 290.92 requires that the City 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. E. Final Payment. Upon final completion of the Work, City shall pay the remainder of the Contract Price. 5. INDEMNIFICATION. A. The Contractor shall indemnify, defend and hold harmless the City 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 City 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 City 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 City within fifteen (15) days of receiving notice from City. 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 commencing work on the Contract, the Contractor shall furnish the City a certificate of insurance. The Contractor shall furnish and maintain 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 damages by Workers Compensation Statute, and from claims for property damages or personal injury which may arise from operations under this Contract, whether such operations are by Contractor or by a subcontractor or anyone directly or indirectly employed by either of them and the amounts of insurance shall be as follows: A. Workers Compensation — as provided in the applicable law. B. Comprehensive Public: Liability — Personal Injury - $2,000,000.00 Property Damage - $2,000,000.00 C. Comprehensive Automobile: Liability — Personal Injury - $2,000,000.00 Property Damage - $2,000,000.00 All insurance policies (or riders) required by this Contract shall be (i) taken out by 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, (ii) 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, (iii) shall name Contractor as an insured party and City as an additional insured; (iv) shall be evidenced by a Certificate of Insurance listing City as an additional insured which shall be filed with the City. 9. PERFORMANCE AND PAYMENT BONDS. Not required. 10. FAILURE TO COMPLETE WORK ON TIME. The Contractor guarantees that it can and will complete the work by February 28, 2011 Inasmuch as the damage and loss to the City which will result from the failure of the Contractor to complete the work within the stipulated time will be most difficult or impossible to accurately assess, the damage to the City for such delay shall be liquidated at a daily rate of $100 per day for each calendar day, Sundays and holidays included, the Project is not complete beyond the completion date. The liquidated damages shall not be considered a penalty. The City has the right to deduct and retain out of any money due, or to become due to the Contractor, the amount of liquidated damages accrued, and in case those amounts are less than the amount of liquidated damages, the Contractor shall pay the difference upon demand. The City shall not be deemed to have forfeited or waived its right to liquidated damages by permitting the Contractor to continue work on the Project beyond the Completion Date, nor by assuming control of the Contractor's obligations and completing the Project as provided for in the Contract, nor by terminating this Contract as provided herein. 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 and installation of the City supplied dehumidifier. 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. 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 addresses: IF TO CITY: City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 IF TO CONTRACTOR: Archer Mechanical 1614 East Cliff Road Burnsville, Minnesota 55337 15. 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. 16. 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. 17. 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. 18. 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 City. 19. 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. 20. CHANGE ORDERS. Without invalidating the Contract, the City 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. 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 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. 23. BACKGROUND CHECKS. The City must receive from the Contractor and each of Contractor's employees written authorization permitting the City of Lakeville Police Department to perform a criminal history background check and further authorizing 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: Holly Dahl, Mayor AND: Charlene Friedges, City Clerk STATE OF MINNESOTA ) ( COUNTY OF ) ss. The foregoing instrument was acknowledged before me this day of 2010, by Holly Dahl and by Charlene Friedges, respectively the Mayor and the City Clerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. STATE OF MINNESOTA COUNTY OF ( ss. NOTARY PUBLIC CONTRACTOR: ARCHER MECHANICAL LLC BY: It The foregoing instrument was acknowledged before me this 2010, by of corporation, on behalf of the corporation. NOTARY PUBLIC day of the a