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HomeMy WebLinkAboutRes2014-074 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2014-074 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH MERRELL BROS., INC. FOR AN AMOUNT NOT TO EXCEED $3,988,530 FOR THE SLUDGE REMOVAL AND DISPOSAL AT THE SEWARD MARINE INDUSTRIAL CENTER (SMIC) AND LOWELL POINT WASTEWATER TREATMENT FACILITY (LPWWTF), AND APPROPRIATING FUNDS WHEREAS,funding in the amount of$2,290,000 has been secured for the Sludge Removal and Disposal project at SMIC and LPWWTF; and WHEREAS,staff is preparing to submit a loan application to the Alaska Clean Water Fund ("ACWF") for $1,200,000 to contribute toward the cost of sludge removal and disposal, and are requesting authorization to spend an additional$400,000 from the Department of Correction's 2015 budget earmarked for Spring Creek Correctional Facility sewer purposes; and WHEREAS, the combined reserves of the Water and Wastewater Enterprise Funds and L. Major Repair and Replacement Funds total approximately$3.4 Million and can be utilized to cover project shortfalls or additional costs incurred by the Public Works department for aerators,Calcium Nitrate, diffusers, aerators, project management and other essentials needed for SMIC and LPWWTF; and WHEREAS, the City and it's engineer, Michael L. Foster & Associates, developed a competitive bid package for the Sludge Removal and Disposal of the lagoons and advertised according to SSC6.10.210 and SCC6.10.215; and WHEREAS, three contractors submitted bids to the City Clerk's office by 2:00 p.m. on August 11,2014 and City staff and the City's engineer,Michael L. Foster&Associates,determined that Merrell Bros., Inc. was the lowest, qualified and responsive bidder; and WHEREAS, the removal and disposal of sludge cannot proceed until the contract is awarded. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Manager is hereby authorized to enter into an agreement, in substantial form as attached hereto,with Merrell Bros.,Inc. for the Sludge Removal and Disposal Project,in the L. amount of$3,988,530. CITY OF SEWARD, ALASKA RESOLUTION 2014-074 J Section 2. Funding in the amount not-to-exceed $2,688,530 is hereby appropriated as follows: 1) $1,300,000 was previously appropriated from the State of Alaska Designated Legislative Grant account no. 18321-0000-5922 to the Sewer Lagoon Sludge Removal ("SLSR") infrastructure account no. 18321-8101 via Resolution 2014-066; 2)$500,000 from the Wastewater MRRF Fund transfers-out account no. 18001-0000-3710- 0000-18320 to the SLSR infrastructure account no. 18320-0000-8101; 3) $490,000 from the Alaska Clean Water Loan#769091 account no. 18320-0000-4700 to the SLSR infrastructure account no. 18320-0000-8101; and 4) if the City receives the expected ACWF loan in the amount of$1.2 Million, then $1.2 Million from ACWF Loan account no. 18320-0000-4700 and the remaining$498,530 from the Wastewater Enterprise Fund transfers-out account no. 18000-0000-3710-0000-18320;or if loan funds are not received,then$112,000 from Wastewater MRRF reserves account no. 18001-0000-3710-0000-18320, $734,000 from the Wastewater Enterprise Fund reserves account no. 18000-0000-3710-0000-18320, and the remaining $852,530 from the Water Enterprise Fund reserves account no. 17000-0000-3710-0000-18320,to account no. 18320- 0000-8101 Section 3. A contingency amount up to $50,000 can be authorized at the sole discretion of the City Manager, upon advance written authorization, with funding appropriated from the Wastewater Enterprise Fund or MRRF reserves if available; otherwise from the Water Enterprise Fund reserves. Section 4. The Notice to Proceed is contingent upon approval from the State of Alaska Department of Environmental Conservation of the alternate sludge disposal site as outlined in the contract. Section 5. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th day of September, 2014. CITY OF SEWARD, ALASKA RESOLUTION 2014-074 L THE CITY OF SEWARD, ALASKA can Bardarson, Mayor AYES: Keil, Terry, Butts, Darling, Bardarson NOES: Casagranda ABSENT: Squires ABSTAIN: None ATTEST: A 1. A.4 A — Joh.nna Kinn*, MC d Cit Clerk (City Seal) sass�itts�+ ,.4.4 ®F Z SEA 1 Q Q `t iv OF10'. '4488cie so; Agenda Statement e of salt, Meeting Date: September 8, 2014 ,_ 9a To: City Council '4�A511�p' Through: Jim Hunt, City Manager From: W.C. Casey, Public Works Director Agenda Item: Contract approval for the Sludge Removal and Disposal project. BACKGROUND & JUSTIFICATION: The City of Seward has secured funding in the amount of$2,290,000 for the sludge removal and disposal project at the Lowell Point Wastewater Treatment Facility (LPWWTF) and Seward Industrial Center(SMIC), with$1.3 Million coming from a State of Alaska Designated Legislative Grant, $500,000 from the Water Fund reserves, and $490,000 from an Alaska Clean Water Fund ("ACWF") loan. The City hired the engineering firm,Michael L. Foster&Associates, to develop a competitive bid package for the Sludge Removal and Disposal project and advertised according to SSC6.10.210 and SCC6.10.215. Three contractors submitted bids by 2:00 p.m. on August 11,2014. The following are the bids submitted: Compilation of Bids Project: Sludge Removal and Disposal Contractor Final Bid Merrell Bros., Inc. $3,988,530 Lakloey, Inc $6,849,518 Central Environmental, Inc. $7,404,971 City staff and Michael L. Foster & Associates determined that Merrell Bros., Inc. was the lowest, qualified, responsive bidder with a total bid price of$3,988,530. The removal and disposal of the sludge at both lagoons will not be able to proceed until the contract is awarded. Once the contract has been authorized by Council and the Contractor's sludge disposal site is approved by the State of Alaska Department of Environmental Conservation, a Notice to Proceed will be issued. INTENT: To authorize the City Manager to enter into a contract with Merrill Bros.,Inc. to remove and dispose of the sludge from the LPWWTF and SMIC sewer lagoons. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): X 2. Strategic Plan (document source here): X 3. Other(list): Wastewater Facilities Operation &Maintenance Plan X FISCAL NOTE: Funding for this project in the amount of $2.29 Million is available from a State of Alaska Designated Legislative Grant in the amount of $1.3 Million (authorized and appropriated by Resolution 2014-66 on 8/11/14), $500,000 appropriated from the Water Enterprise Fund by Resolution 2014-019 on 2/10/14; and a loan from the State of Alaska in the amount of$490,000 authorized by Resolution 2012-056 on 7/23/12. Total project costs are$3,988,530,for a shortfall of $1,698,530. The City is seeking an ACWF loan in the amount of$1.2 Million which would result in annual debt service payments of$70,000 for 20 years;this will be brought back to the City Council for acceptance and budget amendment if the loan is approved. The remaining project funding requirement would be$498,530 which would come from the Wastewater Enterprise Fund, leaving that Fund with approximately $225,000 in reserves and $112,000 in MRRF reserves. Should the City fail to qualify for the loan, the amount of$1,698,530 would be funded by a combination of Wastewater and Waster Funds, as follows: $112,000 from Wastewater MRRF(depletes reserves); $734,000 from Wastewater Enterprise Fund (depletes reserves); and $852,530 from the Water Enterprise Fund (reduces reserves to approximately $1.3 Million plus Water MRRF reserves of $411,000). Approved by Finance Department: g vtte_lefiZ ATTORNEY REVIEW: Yes X No (Contract reviewed minus addenda) RECOMMENDATION: 014- Staff recommends that the Seward City Council approve Resolution 2014-x=authorizing the City Manager to enter into a contract with Merrell Bros.,Inc. for an amount not-to-exceed$3,988,530 for the removal and disposal of sludge project at the Lowell Point Wastewater Treatment Facility and SMIC lagoons. CITY OF SEWARD,ALASKA SLUDGE REMOVAL AND DISPOSAL CONTRACT THIS CONTRACT is between the City of Seward,Alaska(hereinafter called OWNER),and Merrell Bros., Inc (Hereinafter called CONTRACTOR). OWNER and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows: 1. WORK Contractor shall complete Work as described in the Invitation to Bid and Contract documents. The Work is generally described as follows: The Scope of work includes remove,dewater and dispose of sludge and grit that has accumulated in the Lowell Point and SMiC lagoons for more than 20 years. At the Seward Marine Industrial Center (SMIC), provide temporary secondary treatment of influent sewage or haul sewage and discharge it to the Lowell Point lagoon or to an identified manhole in the "City Sewer System"; assess and possibly remove a torn baffle;inspect and service dittiisers. At the Lowell Point Facility, replace and possibly relocate the yard valves above ground; inspect and service diffusers. 2. CONTRACTING OFFICER&CONTRACTOR Lap 2.1.CITY MANAGER is hereinafter called CONTRACTING OFFICER and is authorized to enter into and administer the Contract on behalf of the OWNER. CONTRACTING OFFICER has the authority to make findings,determinations and decisions with respect to the Contract and, when necessary,to modify or terminate the Contract. 2.2. D ustin M. Smith is hereinafter called CONTRACTOR and is to act as OWNER'S representative, assume duties and responsibilities, and have the rights and authority assigned to CONTRACTOR in the Contract Documents in connection with completion of the Work in accordance with the Contract Documents. 3. CONTRACT TiMES AND LIQUIDATED DAMAGES 3.1.Contract Times: Work shall he completed and ready for final payment and acceptance in accordance with Article 11 of the City of Seward General Conditions no later than June 15,2015. City of Seward General Conditions are available by contacting the CONTRACTING OFFICER. Sludge Removal and Disposal Contract Page 1 of 6 hog 4. CONTRACT AMOUNT OWNER shall pay CONTRACTOR the following Not-to-Exceed amount based on the conformed Bid,included as an Exhibit to this Agreement,subject to additions and deletions as provided in the Contract Documents: THREE MILLION,NINE HUNDRED EIGHTY EIGHT THOUSAND FIVE HUNDRED THIRTY Dollars&ZERO Cents (words) $3,988,530.00 (numbers) At no time will any provision of this Agreement make the City or its representative liable for payment for performance of work under this Agreement in excess of the amount that has been appropriated by the City Council and obligated for expenditure for purposes of this Agreement. 5. CONTRACTOR'S REPRESENTATIONS In order to induce OWNER to enter into this Agreement, CONTRACTOR'S representations are set forth as follows: 5.1.CONTRACTOR has familiarized itself with the nature and extend of the Contract Documents, work,site, locality, general nature of work to be performed by OWNER or others at the site that relates to Work required by the Contract Documents and local conditions and Federal, State, and Local Laws and Regulations that in any manner may affect cost, progress, performance,or completion of Work. 5.2.CONTRACTOR has correlated information known to CONTRACTOR and results of such observations, familiarizations, examinations, investigations, explorations, tests, studies, and reports with Contract Documents. 5.3.CONTRACTOR has given CONTRACTING OFFICER written notice of conflicts, errors, ambiguities,or discrepancies that it has discovered in the Contract Documents and the written resolution thereof by CONTRACTOR is acceptable to CONTRACTOR, and the Contract Documents are generally sufficient to indicate and convey understanding of terms and conditions for performing and furnishing Work. 6. CONDITION OF THE SITES CONTRACTOR must maintain the sites in an orderly condition. If utilizing OWNER provided composted sludge and wood chips,remaining inventory must be disposed of by November 1,2016. Sludge Removal and Disposal Contract Page 2 of 6 S* L 7. INSURANCE 'I'he Contractor must maintain insurance to these minimum levels: 7.1.Commercial General Liability: The coverage of $2,000,000 combined single limit per occurrence,and$2,000,000 General aggregate and Products-Complete Operations aggregate. The Contractor must assume all insurable risks and bear any loss or injury to property or persons because of neglect or accident during the term of the contract,except for negligence entirely attributable to the City or its agents. 7.2.Workers' Compensation: Coverage required by State law for the Contractor and all of its subcontractors. The policy must include employer's liability coverage of$100,000 per person, and $1,000,000 per occurrence.The Contractor must notify the City and the Alaska Division of Workers'Compensation promptly when changes in its business operation affect its insurance status. 7.3.Automobile liability: Coverage for all owned,hired,and non-owned vehicles for$1,000,000 combined single limit for each occurrence for bodily injury and property damage. To the extent allowed by law, the Contractor will be required to defend, indemnify, and hold harmless the City of Seward and its officers,employees and engineers from all damage,loss,injury, or proceedings of any kind in connection with the performance or activities of the Contractor, except for damage, loss, or injury resulting from the Owner's sole gross negligence or willful misconduct, 8. MINIMUM WAGE RATES Contractor will ensure that wages paid are the higher of the State or Federal wage rate on a classification by classification basis for the Sludge Removal and Disposal project. Both prevailing wage rates established for the locality by the Alaska Department of Labor under AS 36.05.010,and Federal standards in accordance with subchapter IV of chapter 31 of Part A of subtitle ll of Title 40,U.S.C.(commonly referred to as the"Davis Bacon Act")apply. 9. AMERICAN IRON AND STEEL REQUIREMENT The Contractor assures that it, and its subcontractors will utilize American Iron and Steel, when, and if applicable,for construction,alteration,maintenance and repair unless all of the iron and steel products used in the project are produced in the United States. American Iron and Steel means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural reel,reinforced precast concrete,and construction materials. Sludge Removal and Disposal Contract Page 3 of 6 haw 10. DISADVANIACFD BUSINESS ENTERPRISE REQUIREMENT(DBE) The CONTRACTOR will comply with the DBE requirements of the State Revolving Loan Fund program,and will require its subcontractors to also meet these requirements. Details are contained in the Invitation to Bid and can also be found on the State website. l I. Equal Employment Opportunity Contractor will remain in compliance with Executive Order 11246 of September 24, 1965,entitled "Equal Employment Opportunity"as amended by Executive Order 11375 of October 13, 1967,and as supplemented in Department of Labor regulations(41 CFR 60). 12. INDEMNIFICATION CONTRACTOR agrees to indemnify, defend and hold harmless City (including its employees, officers,and agents)from any and all claims,arising in favor of third parties and arising out of or relating to this Agreement of the performance of any Work or obligations hereunder. 13. RECORDS CONTRACTOR shall keep accurate records of the Material removed from the Site for use on the Project. City shall have the right to audit CONTRACTOR'S records concerning the volume of oniMaterial removed from the sites. 14. AMENDMENTS This Agreement may be amended, modified, or extended at any time by mutual agreement of the Parties, but any such amendment must be in writing, dated, signed by the Parties, and attached hereto. 15. CHOICE OF LAW VENUE The Parties agree that this Agreement shall be governed by the laws of the State of Alaska, and venue for any dispute shall be in Anchorage,Alaska. 16. REMEDIES OF DEFAULT The City shall have the right,but not the obligation,to terminate this Agreement following ten days written notice of default to CONTRACTOR. CONTRACTOR shall have the right to cure such default within the notice period and thereby avoid termination, provided that no other default and cure have occurred in the prior six months. Notwithstanding termination,the City retains its rights to be reimbursed for all Material removed up to and including the date of termination,and all other remedies available at law or equity. Sludge Removal and Disposal Contract Page 4 of 6 L 17, ENTIRE AGREEMENT This Agreement contains the entire understanding and agreement between the Parties with respect to this subject. There are no other written or oral understandings or promises between the Parties with respect to the subject matter of this Agreement other than those contained herein, and any prior oral or written understandings are hereby extinguished. 18. CONTRACT DOCUMENTS 18.1. The Contract Documents which compromise the entire Agreement between OWNER AND CONTRACTOR concerning Work are defined in Invitation to Bid. 18.2. Additional Documents relevant to the Project are available at Vs\NA%.nil faalaska.com. 18.3. Exhibits to this Agreement include: 18.3.1. Cost Proposal 18.3.2. Executed Payment Bond in the amount of 100%of the contract Amount 18.3.3. Executed Performance Bond in the amount of 100%of the contract amount 18.3.4. Alaska Business License 18.3.5. City of Seward Business License 18.3.6. Certificates of Insurance with Endorsements 18.3.7. Documents submitted by CONTRACTOR prior to execution of Agreement 18.3.8. Kenai Peninsula Borough Tax Compliance Certificate 18.3.9. EEO Statement 18.3.10.DBE Forms: 18.3.101.. Compliance Statement 18.3.10.2. Report of Participation 18.3.10.3. Contract Documentation 18.3.10.4. Subcontractor Participation,Performance and utilization 6100-2,6100-3 &6100-4 18,3.11.Documents submitted by CONTRACTOR prior to execution of Agreement. 19. MISCELLANEOUS 19.1. No assignments by a party hereto of any rights under or interests in the Contract Documents will be binding on another party hereto without the written consent of the party sought to be bound;and specifically,but without limitation,monies that may become due and monies that are due,may not be assigned without such consent(except to the extent that the effect of this restriction may be limited by law),and unless specifically stated to the contrary in Sludge Removal and Disposal Contract Page 5 of 6 Wry emit any written consent to an assignment,no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. 19.1.1. OWNER and CONTRACTOR each bind itself, its partners, successors, assigns, and legal representatives to the other party hereto, its partners, successors, assigns, and legal representatives in respect of all covenants,agreements,and obligations contained in the Contract Documents. IN WETNESS WHEREOF,OWNER and CONTRACTOR have signed 2 copies of this Agreement. All portions of the Contract documents have been signed or identified by OWNER and CONTRACTOR. OWNER: City of Seward,Alaska CONTRACTOR: Merrell Bros.,Inc. //ALIO 117,4403 By _._... .. By Dustin Smith Title: Title: C,B.D.O.�__.�_ �.._....._____ Date: Date: 09103/2014 All 1ST: Johanna Kinney,CMC City Clerk Sludge Removal and Disposal Contract Page 6 of