HomeMy WebLinkAbout06202011 City Council Packet Seward City Council
Agenda Packet
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Special CCouncil Meeting
June 20, 2011
City Council Chambers Beginning at 6:00 p.m.
The City of Seward, Alaska
Special City Council Meeting
June 20, 2011 6:00 p.m. Council Chambers
Willard E. Dunham 1. Call to order
Mayor 2. Pledge of allegiance
Term Expires 2011 3, Roll call
Jean Bardarson 4. Citizens' comments on any subject except those items
Vice Mayor scheduled for public hearing. [Those who have signed in will
Term Expires 2012 be given the . first opportunity to speak. Time is limited to 2
minutes per speaker and 30 minutes total time for this agenda
Robert Valdatta item.]
Council Member
Term Expires 2011 5. Approval of agenda
Tom Smith 6. New Business
Council Member
Term Expires 2011 A. Resolutions
Vanta Shafer
Council Member 1. Resolution 2011 -051, Authorizing Acceptance Of The .-
Term Expires 2011 Guaranteed Maximum Price Proposal From PCL Construction To
Construct The Seward Museum /Library, Appropriating $7,399,999 To
Marianna Keil Fund The Project, Issuance Of The Notice To Proceed And Approval
Council Member Of Amendment No.1 To The Construction Phase Work Contract.
Term Expires 2012
B. Other New Business Items
Ristine Casagranda
Council Member 1. Council direction on wind loading safety standards for
Term Expires 2012 3' �
downtown Seward.
Phillip Oates 2. Discussion on City Manager hiring process.
City Manager
7. Council comment
Johanna Kinney
City Clerk 8. Citizens' comments
9. Council and administration response to citizens' comments
10. Adjournment
City of Seward, Alaska Council Agenda
June 20, 2011
SPECIAL MEETING REQUEST
Pursuant to Seward City Code 2.10.030 (2), this is to serve as
the written notice calling a Special Council Meeting on June
20, 2011 at 6:00 p.m. for the purpose of:
1. Resolution 2011 -051, Authorizing Acceptance Of The Guaranteed
Maximum Price Proposal From PCL Construction To Construct The
Seward Museum /Library, Appropriating $7,399,999 To Fund The
Project, Issuance Of The Notice To Proceed And Approval Of
Amendment No.1 To The Construction Phase Work Contract.
2. Council direction on wind loading safety standards for downtown Seward
3. Discussion on City Manager hiring process
Signed this 17 day of June, 2011.
Mayor Ci Manager
2 Council Members
Upon this request the City Clerk will give due and proper
notice as required by SCC 2.10.032
(No business shall be transacted other than stated above.)
f i o fs F1,
NOTICE OF q'P
SPECIAL MEETING
NOTICE IS HEREBY GIVEN that the Seward City Council will meet in a special meeting
on June 20, 2011, beginning at 6:00 p.m., for the purpose of:
1. Resolution 2011 -051, Authorizing Acceptance Of The Guaranteed Maximum
Price Proposal From PCL Construction To Construct The Seward
Museum /Library, Appropriating $7,399,999 To Fund The Project, Issuance Of The
Notice To Proceed And Approval Of Amendment No.1 To The Construction Phase
Work Contract.
2. Council direction on wind loading safety standards for downtown Seward
3. Discussion on City Manager hiring process
The meeting will be conducted in City Council Chambers, City Hall, 410 Adams Street,
Seward. All interested persons are invited to attend.
JOHANNA KINNEY
CITY CLERK
POSTED: 6/17/2011 at 5:00 p.m.
City Hall bulletin board
U.S. Post Office
Harbormaster's Building
Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -051
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING ACCEPTANCE OF THE GUARANTEED
MAXIMUM PRICE PROPOSAL FROM PCL CONSTRUCTION TO
CONSTRUCT THE SEWARD MUSEUM/LIBRARY, APPROPRIATING
$7,399,999 TO FUND THE PROJECT, ISSUANCE OF THE NOTICE TO
PROCEED AND APPROVAL OF AMENDMENT NO.1 TO THE
CONSTRUCTION PHASE WORK CONTRACT
WHEREAS, the City of Seward entered into a construction manager general contract with
PCL on November 1, 2010 with Council resolution 2010 -098 for the Seward Museum /Library; and
WHEREAS, under the terms of the contract PCL provided the City of Seward with a
guaranteed maximum price (GMP) for the construction of $7,399,999 based on the 100% building
design documents; and
WHEREAS, the City of Seward now needs to appropriate funds, accept the GMP and issue a
notice to proceed under a mutually accepted schedule; and
WHEREAS, the PCL GMP is within the proposed budget and engineering estimates set for
the project; and
WHEREAS, the City of Seward has received funding in the amounts of $5,100,000 from
the State of Alaska, $500,000 from the Rasmussen Foundation, $500,000 from the National
Endowment for Humanities and a pledge of $500,000 in private donations; and obligated with
Council Resolutions 2010 -129 and 2011 -047, a not to exceed $3,700,000 in a general obligation
bond for the project; and
WHEREAS, the PCL is willing to work with the City of Seward on a construction schedule
that accommodates the project funding availability.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is authorized to accept the GMP submitted by PCL
Construction for $7,399,999 to construct the Seward Museum /Library.
Section 2. The following amounts are appropriated from the following funds:
626-6261-5xxx - $3,000,000
626 - 6262 -5xxx - $ 500,000 Private Grant (Rasmussen)
626 - 6263 -5xxx - $ 199,999 Federal Grant (NEH)
626 - 6264 -5xxx - $3,700,000 G.O. Bond
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -051
Section 3. The City Manager is authorized to issue a notice to proceed, enter into
Amendment 1 to the Construction Phase Work Contract with PCL Construction, in substantially the
form presented at this meeting, and negotiate a construction schedule based on funding availability.
Section 4: This resolution will take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 20
day of June 2011.
THE CITY OF SEWARD, ALASKA
Willard E. Dunham, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC
City Clerk
(City Seal)
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Council Agenda Statement
Meeting Date: June 20 2011
of sets,
Phillip Oates, City Manager v 9 � a
From: Michelle Weston, Assistant City Manager q P
Agenda Item: Acceptance of PCL guaranteed maximum price,
appropriation of funds, authorizing the notice to
proceed and Amendment 1 to the Construction Phase Work Contract
for the Seward Museum/Library
BACKGROUND & JUSTIFICATION:
The City of Seward entered into a construction manager at risk construction contract for the museum/library on
November 1, 2010 with Council Resolution 2010 -098. Under the terms of this contract, PCL then provides the
City of Seward with a guaranteed maximum price (GMP) to construct the building. PCL has proposed a GMP
of $7,399,999 for construction the building. As outlined in Resolution 2010 -098, the City of Seward is now
required to seek Council approval for approval of the GMP, appropriation of funds and authorizing the
issuance of notice to proceed. RISE has been retained as the project manager for the project.
INTENT: To authorize the City Manager to give PCL notice to proceed with construction of the Seward
Museum/Library under a two phased schedule for construction with Phase 1 consisting of site preparation and
foundation work in 2011 and Phase 2 consisting of building construction in 2012, with the City retaining the
ability to consider a full phased construction schedule if full project funding is available.
CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City
Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures or
Other Plans or Policies:
FISCAL NOTE: The City of Seward has received $5,100,000 for this project from the State of Alaska,
$500,000 from the Rasmussen Foundation, $500,000 from the National Endowment for Humanities and a
pledge of $500,000 in private donations. The City of Seward has approved with Council Resolution 2011 -047
a general obligation bond not to exceed $3,700,000. It is anticipated that there will be increased annual
operating costs with the new larger Museum/Library building.
626 - 6261 -5xxx $3,000,000
626 - 6262 -5xxx $ 500,000 Private Grant (Rasmussen)
626 - 6263 -5xxx $ 199,999 Federal Grant (NEH)
626 - 6264 -5xxx $3,700,000 G.O. Bond
Approved by Finance Department: • ,
ATTORNEY REVIEW: Yes X o
RECOMMENDATION: 1
Recommend approval of Resolution 2011 - �'S a ccepting the GMP submitted by PCL, appropriation of funds,
authorizing the issuance of notice to proceed and Amendment 1 to Construction Phase Work Contract with
PCL Construction Services, Inc.
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CONTRACT NO: C 10 -098
AMENDMENT NUMBER: 001
Agreement Between the
CITY OF SEWARD
And
PCL Construction Services Inc.
SUBJECT: Amendment No. 1 to the Library and Museum Project Preconstruction Phase
Services and Construction Phase Work Contract authorized by Resolution No. 2010 -098,
approved by the Seward City Council on October 25, 2010 ( "Contract ").
RELATIVE TO: Construction of the Seward Library /Museum.
The Agreement is hereby amended as follows:
The City hereby accepts the guaranteed maximum price (GMP) as proposed by PCL Construction
Services, Inc. on June 10, 2011, incorporated herein by reference, and associated phased construction
schedule. The parties may approve a different construction schedule, depending on the availability of
funding, if approved by both parties by August 30, 2011. The City Manager is authorized to approve
an alternative schedule on behalf of the City, provided that the schedule does not result in an increase
in overall costs of the project.
All other terms and conditions of the Contract remain in effect and are unchanged.
IN WITNESS WHEREOF, THE PARTIES HEREBY EXECUTE THIS AGREEMENT:
PCL CONSTRUCTION SERVICES, INC.
By:
Its: Date
CITY OF SEWARD
Phillip Oates. City Manager Date
ATTEST:
Johanna Kinney, City Clerk, CMC Date
CITY OF SEWARD
LIBRARY AND MUSEUM PROJECT
PRECONSTRUCTION PHASE SERVICES AND CONSTRUCTION
PHASE WORK CONTRACT
This Contract is made and entered into this 25th day October, 2010, by and between the City of
Seward, hereinafter "Owner" or "City," a general law municipality located at 410 Adams Street,
Seward, Alaska 99664, and PCL Construction Services, Inc., whose address is 1400 Benson,
Suite 510, Anchorage AK 99503, and who is licensed and qualified to do business within the
State of Alaska, hereinafter called "Contractor ".
The City agrees to engage the Contractor to perform those services described herein, for
preconstruction phase services and construction phase work, hereinafter "Work ".
All of the Work is described in the design documents developed by the Architect: the 35%
Schematic Design documents attached to this Contract in electronic form as Exhibit A.
The Project Manager is:
RISE Alaska, LLC
880 H Street, Suite 101
Anchorage, Alaska 99501
The Architect is:
ECI Hyer, Inc.
101 Benson Blvd, Suite 306
Anchorage, Alaska 99503
The Owner and Contractor agree as set forth below:
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TABLE OF CONTENTS
ARTICLE 1 GENERAL PROVISIONS 4
§ 1.1 RELATIONSHIP OF PARTIES 4
§ 1.2 GENERAL CONDITIONS AND SPECIAL CONDITIONS 4
ARTICLE 2 CONTRACTOR'S RESPONSIBILITIES 4
§ 2.1 PRECONSTRUCTION PHASE 4
§ 2.2 GUARANTEED MAXIMUM PRICE PROPOSAL AND CONTRACT TIME 6
§ 2.3 CONSTRUCTION PHASE 9
§ 2.4 PROFESSIONAL SERVICES 10
§ 2.5 HAZARDOUS MATERIALS 11
§ 2.6 REQUIRED PERSONNEL 11
§ 2.7 FINANCIAL ARRANGEMENTS 11
ARTICLE 3 OWNER'S RESPONSIBILITIES 12
§ 3.1 INFORMATION AND SERVICES 12
§ 3.2 PROJECT MANAGER 13
§ 3.3 ARCHITECT 13
§ 3.4 LEGAL REQUIREMENTS 13
ARTICLE 4 COMPENSATION AND PAYMENTS FOR PRECONSTRUCTION PHASE SERVICES ..13
§ 4.1 COMPENSATION 13
§ 4.2 PAYMENTS 14
ARTICLE 5 COMPENSATION FOR CONSTRUCTION PHASE SERVICES 14
§ 5.1 COMPENSATION 14
§ 5.2 GUARANTEED MAXIMUM PRICE 14
§ 5.3 CHANGES IN THE WORK 15
ARTICLE 6 COST OF THE WORK FOR CONSTRUCTION PHASE 15
§ 6.1 COSTS TO BE REIMBURSED 15
§ 6.2 COSTS NOT TO BE REIMBURSED 18
§ 6.3 DISCOUNTS, REBATES AND REFUNDS 18
§ 6.4 ACCOUNTING RECORDS 19
ARTICLE 7 CONSTRUCTION PHASE 20
§ 7.1 PROGRESS PAYMENTS 20
§ 7.2 FINAL PAYMENT 21
ARTICLE 8 INSURANCE AND BONDS 22
§ 8.1 INSURANCE REQUIRED OF THE CONTRACTOR 22
§ 8.2 NOT USED 22
§ 8.3 PERFORMANCE BOND AND PAYMENT BOND 22
ARTICLE 9 MISCELLANEOUS PROVISIONS 23
§ 9.1 DISPUTE RESOLUTION 23
§ 9.2 OTHER PROVISIONS 23
ARTICLE 10 TERMINATION OR SUSPENSION 23
§ 10.1 TERMINATION 23
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§ 10.2 NOT USED 24
§ 10.3 NOT USED 24
ARTICLE 11 OTHER CONDITIONS AND SERVICES 24
§ 11.1 MISCELLANEOUS 24
ARTICLE 12 CITY OF SEWARD ACKNOWLEDGMENTS
Exhibit A Seward City Library Museum Request for Proposals for General Contractor and
Construction Management Services, Addendum #1, and Addendum #2 and the
Contractor's proposal response.
Exhibit B 35% Schematic Design Documents
Exhibit C General Conditions
Exhibit D Supplementary Conditions
Exhibit E Geotech Report
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ARTICLE 1 GENERAL PROVISIONS
§ 1.1 RELATIONSHIP OF PARTIES
The Contractor accepts the relationship of trust and confidence established with the Owner by
this Contract, and covenants with the Owner to furnish the Contractor's reasonable skill and
judgment and to cooperate with the Architect and the Project Manager (defined in Section 3.2) in
furthering the interests of the Owner. The Contractor shall furnish Preconstruction Phase services
outlined in Section 2.1 of this Contract and Construction Phase services outlined in Section 2.3
of this Contract. The Contractor will use its best efforts to perform the Work in an expeditious
and economical manner consistent with the interests of the Owner. The Owner shall endeavor to
promote harmony and cooperation among the Architect, the Project Manager, the Contractor and
other persons or entities employed by the Owner for the Project.
§ 1.2 GENERAL CONDITIONS AND SPECIAL CONDITIONS
For the Construction Phase (including any portion of the Construction Phase that proceeds
concurrently with the Preconstruction Phase), the General Conditions and Special Conditions of
this Contract shall be the standard CITY OF SEWARD General Conditions and Supplementary
Conditions, which are incorporated herein by reference.
ARTICLE 2 CONTRACTOR'S RESPONSIBILITIES
The Contractor shall perform the services and provide the Work as described in the Contract
Documents. The services specified in Sections 2.1 and 2.2 are to be provided in the
Preconstruction Phase. The Work specified in Section 2.3 is to be provided in the Construction
Phase. If the Owner and the Contractor agree, the Construction Phase may commence before the
Preconstruction Phase is completed, in which case both Phases will proceed concurrently.
§ 2.1 PRECONSTRUCTION PHASE
§ 2.1.1 PRELIMINARY EVALUATION
The Contractor shall provide a preliminary evaluation of the Owner's Work budget and schedule
requirements, each in terms of the other.
§ 2.1.2 CONSULTATION
The Contractor, the Project Manager, and the Architect shall jointly schedule and attend regular
meetings (twice a month as a minimum) with the Owner. The Contractor shall consult with the
Owner and Architect regarding site use and improvements and the selection of materials,
building systems and equipment. The Contractor shall provide recommendations on construction
feasibility, actions designed to minimize adverse effects of labor or material shortages or harsh
weather conditions, time requirements for procurement, installation and construction completion,
and factors related to construction cost, including estimates of alternative designs or materials,
preliminary budgets and possible economies.
§ 2.1.3 PRELIMINARY CONSTRUCTION SCHEDULE
When Work requirements described in Section 3.1.1 have been sufficiently identified, the
Contractor shall prepare, and periodically update, a preliminary construction schedule for the
Architect's review and the Owner's approval. The Contractor shall (a) obtain the Architect's
approval of the portion of the preliminary construction schedule relating to performance of the
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Architect's services and (b) coordinate and integrate the preliminary construction schedule with
the other Project services and activities. As design proceeds, the preliminary construction
schedule shall be updated to indicate proposed activity sequences and durations, milestone dates
for receipt and approval of pertinent information, submittal of a Guaranteed Maximum Price and
Schedule of Values (defined in Section 2.2.4.6) proposal, preparation and processing of shop
drawings and samples, delivery of materials or equipment requiring long - lead -time procurement,
Owner's occupancy requirements showing portions of the Work having occupancy priority, and
proposed date of Substantial Completion. If preliminary construction schedule updates indicate
that previously approved schedules may not be met, the Contractor shall make appropriate
recommendations to the Owner and Architect.
§ 2.1.4 PHASED CONSTRUCTION
The Contractor shall make recommendations to the Project Manager and Architect regarding the
phased issuance of Construction Documents to facilitate phased construction of the Work, if such
phased construction is appropriate for the Work, taking into consideration such factors as
economies, time of performance, availability of labor and materials, harsh weather conditions,
and provisions for temporary facilities.
§ 2.1.5 PRELIMINARY COST ESTIMATES
Based upon the 35% Design Documents, the Contractor shall prepare, for the review of the
Architect and the Owner, a cost estimate for constructing the Work. During the further
preparation of the Construction Documents for the Work, the Contractor shall update and refine
this estimate at appropriate intervals agreed to by the Owner, Architect and Contractor.
§ 2.1.5.1 Not used.
§ 2.1.5.2 Not used.
§ 2.1.5.3 If any estimate for the Work submitted to the Owner exceeds previously approved
estimates or the Owner's then current budget for the Work, the Contractor shall make
appropriate recommendations to the Owner and Architect as to alternatives to bring the cost of
the Work within the Owner's budget.
§ 2.1.6 SUBCONTRACTORS AND SUPPLIERS
The Contractor shall seek to develop interest by subcontractors and Suppliers for the Work and
shall furnish to the Owner and Architect for their information a list of possible Subcontractors
and Suppliers who are to furnish work, materials or equipment fabricated to a special design,
from which bids or proposals will be requested for principal portions of the Work. The receipt of
such list shall not require the Owner to investigate the qualifications of proposed Subcontractors
or Suppliers; nor shall it waive the right of the Owner later to object to or reject any proposed
Subcontractor or Supplier and/or to require competitive bidding or proposals for Subcontractor
or Supplier selection by the Contractor.
§ 2.1.7 LONG - LEAD-TIME ITEMS
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The Contractor shall recommend to the Owner and Architect a schedule for procurement of long -
lead -time items which will constitute part of the Work as required to meet the Work schedule. If
such long- lead -time items are procured by the Owner, they shall be procured on terms and
conditions acceptable to both the Owner and the Contractor. Upon the Owner's acceptance of the
Contractor's Guaranteed Maximum Price and Schedule of Values proposal, all contracts for such
items shall be assigned by the Owner to the Contractor and assumed by the Contractor, and the
Contractor shall accept responsibility for such items as if procured by the Contractor. The
Contractor shall expedite the delivery of long- lead -time items.
§ 2.1.8 EXTENT OF RESPONSIBILITY
The Contractor does not warrant or guarantee estimates and schedules except as may be included
as a condition to or in the Guaranteed Maximum Price, the Schedule of Values, any Change
Orders, any amendment to this Contract, or any Subcontract, Supply Contract or Work
authorized pursuant to Section 2.3.1.1(b). The recommendations and advice of the Contractor
concerning design alternatives, construction feasibility, costing and scheduling, and other
required construction management services shall be subject to the review and approval of the
Owner, the Architect, and the Owner's other professional consultants. It is not the Contractor's
responsibility to ascertain that the Contract Documents (including the Construction Documents)
are in accordance with applicable laws, statutes, ordinances, building codes, rules and
regulations. However, if the Contractor claims that portions of them are at variance therewith,
the Contractor shall promptly notify the Architect and the Owner in writing, specifying the
particulars of such variances. Because the Contractor is participating in the design of the Work,
the Contractor shall be deemed to have waived all future claims against the Owner that the Work
is not constructible, in whole or in part, based upon the Contract Documents (including the
Construction Documents). However, the Contractor shall not be deemed to have waived any
future claim that any specific part of the Contract Documents (including the Construction
Documents) contains an error which has caused the Contractor to suffer increased Costs of
Work, losses, damages or delays.
§ 2.1.9 EQUAL EMPLOYMENT OPPORTUNITY AND AFFIRMATIVE ACTION; MINIMUM WAGES
The Contractor shall comply with (a) all applicable laws, regulations and special requirements of
the Contract Documents regarding equal employment opportunity and affirmative action
programs, (b) any minimum wage requirements of Federal and /or State law, and (c) any special
requirements that may be required by any of the Owner's funding sources for the Work. Owner
shall advise Contractor of all such special requirements by the Owner's funding sources. Alaska
prevailing wage requirements are in Section 32 of the General Conditions.
§ 2.1.10 REQUIRED PERSONNEL
Contractor shall (a) cause its principal, Mr. Scott Ivany to be primarily in charge of and
responsible for Contractor's Preconstruction Phase services. Contractor shall not re- assign or
substitute for such personnel without the Owner's consent, which shall not be unreasonably
withheld.
§ 2.2 GUARANTEED MAXIMUM PRICE PROPOSAL AND CONTRACT TIME
§ 2.2.1 When the Construction Documents are sufficiently complete in the opinion of both the
Owner and Contractor, within 30 days thereafter the Contractor shall propose an updated
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Guaranteed Maximum Price, which shall be the sum of the estimated Cost of the Work
(including Contractor's Contingency defined in Section 2.2.3) and the Contractor's Fee (defined
in Section 5.1.1) for construction of the Work in accordance with the Contract Documents
(including the Construction Documents). Changes from the proposed GMP must be justified and
reconciled to within the Architects independent cost estimate plus 2 %. If reconciliation and
agreement on the Guaranteed Maximum Price proposal is not achieved within 45 days from the
date that the Owner requests a Guaranteed Maximum Price proposal from the Contractor, the
Owner may terminate the Contract for its convenience.
§ 2.2.2 If the Construction Documents are not finished and approved by the Owner at the time
the Guaranteed Maximum Price and Schedule of Values proposal is made, the Contractor shall
base the Guaranteed Maximum Price on the then existing Construction Documents and other
Contract Documents. Further development of the Construction Documents by the Architect that
includes such things as changes in scope or substantial changes in systems, kinds and quality of
materials, finishes or equipment shall entitle the Contractor and /or the Owner to a Change Order
that equitably adjusts the Guaranteed Maximum Price based upon such change. Otherwise,
neither the Contractor nor the Owner shall be entitled to any Change Order or other adjustment
to the Guaranteed Maximum Price or Schedule of Values as a result of any such change.
§ 2.2.3 The Cost of the Work included with Contractor's Guaranteed Maximum Price shall
include all costs which are properly reimbursable as a Cost of the Work, including a Contractor's
contingency ( "Contractor's Contingency ") to cover unanticipated costs in constructing the Work.
Contractor's Contingency shall be 3% of the Cost of the Work.
§ 2.2.4 BASIS OF GUARANTEED MAXIMUM PRICE
The Contractor shall include with the Guaranteed Maximum Price proposal a written statement
of its basis, which shall include:
.1 A list of all of the Contract Documents (including the Construction Documents),
which are the basis for, and included within, the Guaranteed Maximum Price
proposal.
.2 A list of all allowances assumed by the Contractor in its Guaranteed Maximum
Price proposal and a statement of their basis.
.3 A list of the clarifications and assumptions made by the Contractor in the
preparation of the Guaranteed Maximum Price proposal to supplement the
information contained in such Construction Documents and other Contract
Documents.
.4 The proposed Guaranteed Maximum Price.
.5 A time schedule for performing the Work covered by the Guaranteed Maximum
Price, which includes (a) the Date of Substantial Completion for such Work upon
which the proposed Guaranteed Maximum Price is based and (b) the required
permitting issuance dates (if any) upon which the date of Substantial Completion
is based.
.6 A schedule of values ( "Schedule of Values ") for all of the Work covered by the
Guaranteed Maximum Price. The Schedule of Values shall allocate the
Guaranteed Maximum Price among the various portions of the Work by 16
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Division CSI Specifications, showing the Contractor's Fee and Contractor's
Contingency as separate items.
§ 2.2.5 The Contractor shall meet with the Owner and Project Manager to review the Guaranteed
Maximum Price and Schedule of Values proposal, including the written statement of its basis. In
the event that the Owner or Project Manager discovers any inconsistencies or inaccuracies in the
information presented, they shall promptly notify the Contractor, who shall make appropriate
adjustments to the Guaranteed Maximum Price proposal, its basis, or both.
§ 2.2.6 The Owner shall have 30 days to review and accept the Guaranteed Maximum Price and
Schedule of Values proposal in writing. Unless the Owner timely accepts the proposal by so
notifying the Contractor, the Guaranteed Maximum Price and Schedule of Values proposal shall
not be effective without written acceptance by the Contractor.
§ 2.2.7 Prior to the Owner's acceptance of the Contractor's Guaranteed Maximum Price and
Schedule of Values proposal and issuance of a Notice to Proceed with the Work, the Contractor
shall not incur any cost to be reimbursed as part of the Cost of the Work, except as the Owner
may specifically authorize in -writing. However, the Owner shall have the right to issue (a) a
Notice to Proceed to the Contractor for specific early portions of the Work prior to agreement on
the Guaranteed Maximum Price if the price and other terms for such specific portions of the
Work are agreed upon in writing by the Contractor and the Owner or (b) absent such agreement,
a Construction Change Directive(s) for such specific portions of the Work may be issued by the
Owner.
§ 2.2.8 Upon acceptance by the Owner of the Guaranteed Maximum Price and Schedule of
Values proposal, the Guaranteed Maximum Price and Schedule of Values and their basis shall be
set forth in a written amendment to the Contract Documents that is executed by the Owner and
Contractor. This Contract, as amended, including the General Conditions, the Construction
Documents, and all of the other Contract Documents specified by the Contractor pursuant to
Section 2, shall thereafter constitute the "Contract Documents." The Guaranteed Maximum
Price and Schedule of Values shall be subject to additions and deductions by changes in the
Work as provided in the Contract Documents, and the Date of Substantial Completion shall be
subject to adjustment as provided in the Contract Documents.
§ 2.2.9 The Owner shall authorize and cause the Architect to revise the Construction Documents
to the extent necessary to reflect the agreed -upon assumptions and clarifications contained in any
amendment to this Contract referred to in Section 2.2.8. Such revised Construction Documents
shall include any revised Work or Substantial Completion schedule agreed to by the Owner,
Architect and Contractor. The Contractor shall promptly notify the Architect and Owner if such
revised Construction Documents are inconsistent with or contrary to the agreed -upon
assumptions and clarifications.
§ 2.2.10 The Guaranteed Maximum Price shall include in the Cost of the Work only those
applicable sales and use taxes which are enacted at the time the Guaranteed Maximum Price is
established. Any applicable sales, use or similar taxes that are first enacted after the Guaranteed
Maximum Price is agreed to entitle Contractor to a Change Order equitably adjusting the
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Guaranteed Maximum Price. However, no income tax or increase therein applicable to the
Contractor shall entitle it to any such Change Order.
§ 2.3 CONSTRUCTION PHASE
§ 2.3.1 GENERAL
§ 2.3.1.1 The Construction Phase shall commence on the earlier of:
(a) the Owner's acceptance of the Contractor's Guaranteed Maximum Price and
Schedule of Values proposal and issuance of a Notice to Proceed, or
(b) the Owner's first authorization to the Contractor to:
(i) award a Subcontract or Supply Contract or
(ii) undertake construction Work with the Contractor's own forces;
provided, however, that in the case of the authorizations referred to in Section 2.3.1.1(b) (i) the
Construction Phase shall apply only to such Subcontract, Supply Contract or Work, (ii) the
Construction Phase for the remaining part of the Work shall not begin until the Guaranteed
Maximum Price and Schedule of Values are agreed to by the Contractor and the Owner in
writing, and (iii) the price of all such Subcontract, Supply Contract and Work shall be included
in the Guaranteed Maximum Price and Schedule of Values if and when they are agreed to by the
Contractor and the Owner in writing.
§ 2.3.2 ADMINISTRATION
§ 2.3.2.1 Those portions of the Work that the Contractor does not customarily perform with the
Contractor's own personnel shall be performed by Subcontractors under subcontracts
( "Subcontracts ") or by Suppliers under supply contracts ( "Supply Contracts ") with the
Contractor. The Contractor shall obtain bids or proposals from Subcontractors (as required by the
Owner), and Suppliers of materials or equipment fabricated to a special design for the Work,
from the list previously approved by the Owner and, after analyzing such bids or proposals, shall
deliver such bids or proposals to the Owner. The Owner may designate specific persons or
entities from which the Contractor shall obtain bids or proposals. The Owner reserves the right
to require the Contractor to obtain competitive bids or proposals for any Subcontract or Supply
Contract which has a cost to the Contractor of $250,000 or more. If a non - competitive or
competitive proposal method for such a Subcontract or Supply Contract would result in
significant cost savings to Owner, Contractor shall propose such method to Owner for its
consideration and decision. If the Guaranteed Maximum Price has been established, the Owner
may not prohibit the Contractor from obtaining bids or proposals from other qualified
Subcontractor or Supplier bidders or proposers. The Contractor shall not be required to contract
with any Subcontractor or Supplier to which the Contractor has reasonable objection; and the
Contractor shall not contract with any Subcontractor or Supplier to which the Owner has
reasonable objection.
§ 2.3.2.2 If the Guaranteed Maximum Price has been established and a specific bidder or
proposer among those whose bids or proposals are delivered by the Contractor to the Owner (a)
is recommended to the Owner by the Contractor, (b) is qualified to perform that portion of the
Work, and (c) has submitted a bid or proposal which conforms to the requirements of the
Contract Documents without reservations or exceptions, but the Owner requires that another bid
or proposal be accepted, then the Contractor may require that a change in the Work be issued to
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equitably adjust the Contract Time and the Guaranteed Maximum Price and Schedule of Values
or other change in the Contract Documents based thereon.
§ 2.3.2.2.1. Not used.
§ 2.3.2.3 Subcontracts with Subcontractors and Supply Contracts with Suppliers furnishing
materials or equipment fabricated to a special design shall conform to the payment provisions of
Sections 7.1.8 and 7.1.9.
§ 2.3.2.4 The Contractor shall schedule and conduct periodic meetings at which the Owner,
Project Manager, Contractor and appropriate Subcontractors and Suppliers to discuss the status
of the Work. The Project Manager shall prepare and promptly distribute accurate meeting
minutes.
§ 2.3.2.5 Promptly after the Owner's acceptance of the Guaranteed Maximum Price and
Schedule of Values proposal, the Contractor shall prepare a Work schedule per Article 6.6 of the
General Conditions.
§ 2.3.2.6 The Contractor shall provide monthly written reports to the Owner and Project Manager
on the progress of the Work. The Contractor shall maintain an accurate and complete daily log
containing a record of weather, Subcontractors working on the site, number of workers working
on the Work site, Work accomplished, problems encountered and other similar relevant data as
the Owner may reasonably require. The log shall be available to the Owner for its inspection and
copying.
§ 2.3.2.7 The Contractor shall develop a system of control for the Cost of Work acceptable to the
Owner, including regular monitoring of actual Costs of Work for activities in progress and
estimates for uncompleted tasks and proposed changes. The Contractor shall identify variances
between actual and estimated Costs of Work and report the variances to the Owner on at least a
monthly basis.
§ 2.3.2.8 At the request of the Owner, the Contractor shall provide copies of job records or
reports on a scheduled or as- requested basis. The cost of preparing these copies will be an
eligible Cost of the Work.
§ 2.4 PROFESSIONAL SERVICES
The Contractor shall not be required to provide professional services which constitute the
practice of architecture or engineering unless such services are specifically required by the
Contract Documents for a portion of the Work or unless the Contractor needs to provide such
services in order to carry out the Contractor's responsibilities for construction means, methods,
techniques, sequences and procedures. The Contractor shall not be required to provide
professional services in violation of applicable law. If professional design services or
certifications by a design professional related to systems, materials or equipment are specifically
required of the Contractor by the Contract Documents, the Architect will specify all performance
and design criteria that such services must satisfy. The Contractor shall cause such services or
certifications to be provided by a properly licensed design professional, whose signature and seal
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shall appear on all drawings, calculations, specifications, certifications, Shop Drawings and other
submittals prepared by such professional. Shop Drawings and other submittals related to the
Work designed or certified by such professional, if prepared by others, shall bear such
professional's written approval when submitted to the Project Manager. The Owner and the
Project Manager shall be entitled to rely upon the adequacy, accuracy and completeness of the
services, certifications or approvals performed by such design professionals, provided the
Architect specified to the Contractor all performance and design criteria that such services must
satisfy. The Architect will review, approve or take other appropriate action on submittals only for
the limited purpose of checking for conformance with information given and the design concept
expressed in the Contract Documents. The Contractor shall not be responsible for the adequacy
of the performance or design criteria required by the Contract Documents.
§ 2.5 HAZARDOUS MATERIALS
§ 2.5.1.1 If reasonable precautions will be inadequate to prevent foreseeable bodily injury or
death to persons resulting from a hazardous or toxic material or substance, including, but not
limited to, asbestos or polychlorinated biphenyl (PCB), encountered at the Work site by the
Contractor, the Contractor shall, upon recognizing the condition, immediately stop Work in the
affected area and report the condition to the Project Manager in writing.
§ 2.5.1.2 The Owner shall obtain the services of a licensed laboratory to verify the presence or
absence of the hazardous or toxic material or substance reported by the Contractor and, in the
event any such hazardous or toxic material or substance is found to be present in dangerous
amounts, to verify that it has been rendered harmless. Unless otherwise required by the Contract
Documents, the Project Manager shall furnish in writing to the Contractor the names and
qualifications of persons or entities who are to perform tests verifying the presence or absence of
such hazardous or toxic material or substance or who are to perform the task of removal or safe
containment of such hazardous or toxic material or substance. The Contractor will promptly
reply to the Project Manager in writing stating whether or not either has reasonable objection to
the persons proposed by the Project Manager. If the Contractor has an objection to a person
proposed by the Project Manager, the Project Manager shall propose another to whom the
Contractor has no reasonable objection. When the hazardous or toxic material or substance has
been rendered harmless, Work in the affected area shall resume upon written agreement of the
Owner and Contractor. The Contract Time shall be extended appropriately and the Contract Sum
shall be increased in the amount of the Contractor's reasonable additional costs of shut -down,
delay and start-up.
§ 2.6 REQUIRED PERSONNEL
For the Construction Phase services Contractor shall cause (a) Ben Roll to be the Work Project
Manager, (b) Andy Clapper to be the Work Superintendent, and (c) Amy York to be the Quality
Control Manager. Contractor shall not reassign or substitute such personnel without the Owner's
consent, which shall not be unreasonably withheld.
§ 2.7 FINANCIAL ARRANGEMENTS
In addition to the Performance and Payment Bond requirements in Section 4 of the General
Conditions, the Contractor shall, at the written request of the Owner, prior to commencement of
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the Construction Phase and thereafter whenever required by the Owner, furnish to the Owner
reasonable evidence that adequate financial arrangements have been made to fulfill the
Contractor's obligations under the Contract. Furnishing of adequate evidence shall be a
condition precedent to the Contractor's right to commence and continue the Work. After such
evidence has been furnished, the Contractor shall not materially vary such financial
arrangements without prior notice to Owner.
ARTICLE 3 OWNER'S RESPONSIBILITIES
§ 3.1 INFORMATION AND SERVICES
§ 3.11 For the Preconstruction Phase, the Owner shall provide information in a timely manner
regarding its requirements for the Work, including a program which sets forth the Owner's
objectives, constraints, criteria, space requirements and relationships, flexibility and
expandability requirements, special' equipment and systems, and site requirements.
§ 3.1.2 NOT USED
§ 3.1.3 The Owner shall establish and update an overall budget for the Work, based on
consultation with the Contractor, which shall include contingencies for changes in the Work and
other costs which are the responsibility of the Owner.
§ 3.1.4 STRUCTURAL AND ENVIRONMENTAL TESTS, SURVEYS AND REPORTS
In the Preconstruction Phase, Owner shall furnish to the Contractor with reasonable promptness,
at the Owner's expense, the following. Except to the extent that the Contractor knows or should
know of any inaccuracy, the Contractor shall be entitled to rely upon the accuracy of any such
information, reports, surveys, drawings and tests described in Sections 3.1.4.1 through 3.1.4.4,
but shall exercise customary precautions in doing so.
§ 3.1.4.1 Reports, surveys, drawings and tests concerning the physical conditions of the site
which are required by law.
§ 3.1.4.2 Surveys describing physical characteristics, legal limitations and utility locations for the
site of the Project, and a written legal description of the site. The surveys and legal information
shall include, as applicable, grades and lines of streets, alleys, pavements and adjoining property
and structures; adjacent drainage; rights -of -way, restrictions, easements, encroachments, zoning,
deed restrictions, boundaries and contours of the site; locations, dimensions and necessary data
pertaining to existing buildings, other improvements and trees; and information concerning
available utility services and lines, both public and private, above and below grade, including
inverts and depths. All information on the survey shall be referenced to a Project benchmark.
§ 3.1.4.3 To the extent reasonably required and when requested by the Contractor, the services of
a professional geotechnical engineer for test borings, test pits, determinations of soil bearing
values, percolation tests, evaluations of hazardous materials, ground corrosion and resistivity
tests, including necessary operations for anticipating subsoil conditions, with reports and
appropriate professional recommendations.
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§ 3.1.4.4 Structural, mechanical, chemical, air and water pollution tests, tests for hazardous
materials, and other laboratory and environmental tests, inspections and reports which are
required by law.
§ 3.1.4.5 The services of other consultants when such services are reasonably required for the
Work are requested by the Contractor and are customarily provided by other owners in similar
circumstances.
§ 3.2 PROJECT MANAGER
The Owner shall designate in writing a representative ( "Project Manager ") who shall have
express authority to bind the Owner with respect to all matters requiring the Owner's approval or
authorization. Such Project Manager shall have the authority to make day to day decisions on
behalf of the Owner related to the administration of the Work and will coordinate Owner
approvals concerning estimates and schedules, construction budgets, and changes in the Work as
required. The Project Manager shall render decisions promptly and furnish information
expeditiously, so as to avoid unreasonable delay in the Work of the Contractor. The Project
Manager for all such matters is RISE Alaska, LLC.
§ 3.3 ARCHITECT
The Owner shall retain an architect and /or other qualified professionals to provide Basic
Services, including normal architectural, structural, mechanical, electrical engineering and cost
estimating services (in addition to those cost estimating services required of the Contractor) for
the Work. Services shall be provided in accordance with time schedules agreed to by the Owner,
and Contractor. The Architect for all such matters is ECI /flyer Architects.
§ 3.4 LEGAL REQUIREMENTS
The Owner shall determine and advise the Contractor of any special legal requirements relating
specifically to the Work which are known to the Owner and differ from those generally
applicable to construction of the Work in Alaska.
ARTICLE 4 COMPENSATION AND PAYMENTS FOR PRECONSTRUCTION PHASE SERVICES
The Owner shall compensate and make payments to the Contractor for Preconstruction Phase
services as follows:
§ 4.1 COMPENSATION
§ 4.1.1 For the services described in Sections 2.1 and 2.2, the Contractor's compensation shall be
calculated as follows:
All inclusive hourly charges:
Individual Title Hourly Rate Estimated Estimated
(fully Hours Total Labor
burdened)
Ben Roll Project Manager $100 99 $9,900
Mark Schachterle Sr. Estimator $100 209 $20,900
Andy Clapper Superintendent $85 71 $6,035
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Reimbursable Expenses for travel at cost plus 5 %. $2,165
Guaranteed Maximum Price for hourly charges, plus reimbursable travel expenses:
Total - Not to exceed $39,000
§ 4.1.2 Compensation for Preconstruction Phase Services shall be equitably adjusted if (a) such
services are required beyond the allowance specified in Section 4.1.1, (b) Preconstruction
Services are required beyond 180 calendar days from the effective date of this Contract, or (c) if
the originally contemplated scope of services is significantly modified by the Owner.
§ 4.1.3 If compensation is based on a multiple of Direct Personnel Expense, Direct Personnel
Expense is defined as the direct salaries of the Contractor's personnel engaged in the Project and
the portion of the cost of their mandatory and customary contributions and benefits related
thereto, such as employment taxes and other statutory employee benefits, insurance, sick leave,
holidays, vacations, pensions and similar contributions and benefits.
§ 4.1.4 NOT USED
§ 4.1.5 The compensation payable to the Contractor by the Owner under Section 4.1 shall not
include Contractor's time in developing its proposal or negotiations for the Preconstruction
Services Phase Guaranteed Maximum Price.
§ 4.2 PAYMENTS
§ 4.2.1 Payments to the Contractor by the Owner shall be made as provided in Article 7.
§ 4.2.2 A payment unpaid 30 days after the date on which such payment is due shall bear interest
from the due date at the rate entered below, ( "Contract Rate "):
Prime interest rate announced by Wells Fargo Bank for its prime commercial loan customers
each calendar quarter, plus two percent (2 %) per annum.
ARTICLE 5 COMPENSATION FOR CONSTRUCTION PHASE SERVICES
The Owner shall compensate the Contractor for Construction Phase services as follows:
§ 5.1 COMPENSATION
§ 5.1.1 For the Contractor's performance of the Work as described in Section 2.3, the Owner
shall pay the Contractor in current funds the Contract Sum consisting of the Cost of the Work as
defined in Article 6 and the Contractor's Fee determined as follows:
Three and one half percent (3 -1 /2 %) of the Cost of the Work, adjusted for Change Orders and
Construction Change Directives (if any).
§ 5.2 GUARANTEED MAXIMUM PRICE
§ 5.2.1 The sum of the maximum Cost of the Work agreed to in writing by the Contractor and
the Owner and the Contractor's Fee based thereon are guaranteed by the Contractor not to
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exceed the amount provided in the amendment to this Contract referred to in Section 2.2.8,
subject to additions and deductions by changes in the Work by Change Order or Construction
Change Directive as provided in the Contract Documents. Such maximum sum as adjusted by
approved changes in the Work is referred to in this Contract and the other Contract Documents
as the Guaranteed Maximum Price. Costs which would cause the Guaranteed Maximum Price to
be exceeded shall be paid by the Contractor without reimbursement by the Owner.
§ 5.3 CHANGES IN THE WORK
§ 5.3.1 Adjustments to the Guaranteed Maximum Price on account of changes in the Work
subsequent to the execution of the amendment to this Contract referred to in Section 2.2.8 may
be determined by any of the methods listed in Article 9 of the General Conditions.
§ 5.3.2 In no event shall the aggregate profit and general, administrative and overhead charges of
(a) Contractor exceed 3.5% of any Change Order or Construction Change Directive allowable
direct costs, (b) any Subcontractor exceed 8% of any Change Order or Construction Change
Directive allowable direct costs, or (c) any Supplier exceed 8% of any Change Order or
Construction Change Directive allowable direct costs. In no event shall the total of all such
profit, general, administrative and overhead percentages exceed 28 %, regardless of whether there
are multiple tiers of Subcontractors and /or Suppliers.
§ 5.3.3 NOT USED
§ 5.3.4 NOT USED
ARTICLE 6 COST OF THE WORK FOR CONSTRUCTION PHASE
§ 6.1 COSTS TO BE REIMBURSED
§ 6.1.1 The term "Cost of the Work" shall mean costs reasonably, necessarily and ordinarily
incurred by the Contractor in the proper performance of the Work. Such costs shall be at rates
not higher than those customarily paid at the place of the Project, except with prior consent of the
Owner (which may in its discretion be withheld). The Cost of the Work shall include only the
items set forth in this Article 6.
§ 6.1.2 LABOR COSTS
.1 Wages of construction workers directly employed by the Contractor to perform
the construction of the Work at the site or, with the Owner's agreement, at off -site
workshops.
.2 Wages or salaries (but not performance bonuses or the equivalent) of the
Contractor's supervisory and administrative personnel when, and to the extent,
stationed at the site.
.3 Wages and salaries (but not performance bonuses or the equivalent) of the
Contractor's supervisory or administrative personnel engaged at factories,
workshops or on the road in expediting the production or transportation of
materials or equipment required for the Work, but only for that portion of their
time required for the Work.
.4 Costs paid or incurred by the Contractor for sales, use and similar taxes,
insurance, contributions, assessments and benefits required by law or collective
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bargaining agreements, and, for personnel not covered by such agreements,
customary benefits such as sick leave, medical and health benefits, holidays,
vacations and pensions, provided that such costs are based on wages and salaries
included in the Cost of the Work under Sections 6.1.2.1 through 6.1.2.3.
.5 The wages or salaries (but not performance bonuses or the equivalent) of the
following personnel if stationed at the Contractor's principal office or offices
other than the site office, but only for the portion of their time reasonably required
for the Work they perform: This shall be negotiated and stipulated at the time of
GMP of the Construction Phase.
§ 6.1.3 SUBCONTRACT AND SUPPLIER COSTS
Payments made by the Contractor to Subcontractors and Suppliers in accordance with the
requirements of the applicable Subcontracts and Supply Contracts and the Contract Documents.
§ 6.1.4 COSTS OF MATERIALS AND EQUIPMENT INCORPORATED IN THE COMPLETED
CONSTRUCTION
.1 Costs, including transportation, of materials and equipment incorporated or to be
incorporated in the completed construction.
.2 Costs of materials described in the preceding Section 6.1.4.1 in excess of those
actually installed but required to provide reasonable allowance for waste and for
spoilage. Unused excess materials, if any, shall be turned over to the Owner at the
completion of the Work.
§ 6.1.5 COSTS OF OTHER MATERIALS AND EQUIPMENT, TEMPORARY FACILITIES AND RELATED
ITEMS
.1 Costs, including transportation, installation, maintenance, dismantling and
removal of materials, supplies, temporary facilities, machinery, equipment, and
hand tools not customarily owned by the construction workers, which are
provided by the Contractor at the site and fully consumed in the performance of
the Work; and cost less salvage value on such items if not fully consumed,
whether sold to others or retained by the Contractor. Cost for items previously
used by the Contractor shall mean fair market value.
.2 Rental charges for temporary facilities, machinery, equipment, and hand tools not
customarily owned by the construction workers, which are provided by the
Contractor at the site, whether rented from the Contractor or others, and costs of
transportation, installation, minor repairs and replacements, dismantling and
removal thereof. Rates and quantities of equipment rented shall be subject to the
Owner's prior approval.
.3 Costs of removal of debris from the site.
.4 Reproduction costs, costs of telegrams, facsimile transmissions and long - distance
telephone calls, postage and express delivery charges, telephone at the site and
reasonable petty cash expenses of the site office.
.5 That portion of the reasonable travel and subsistence expenses of the Contractor's
personnel incurred while traveling in discharge of duties connected with the
Work.
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§ 6.1.6 MISCELLANEOUS COSTS
.1 That portion directly attributable to this Contract of premiums for insurance and
bonds specifically required by the General Conditions. (If charges for self -
insurance are to be included, specify the basis of reimbursement.)
.2 Sales, use or similar taxes imposed by a governmental authority which are related
to the Work and for which the Contractor is liable.
.3 Fees and assessments for the building permit and for other permits, licenses and
inspections for which the Contractor is required by the Contract Documents to
pay.
.4 Fees of testing laboratories for tests required by the Contract Documents, except
those related to nonconforming Work other than that for which payment is
permitted by Section 6.1.8.2.
.5 Royalties and license fees paid for the use of a particular design, process or
product required by the Contract Documents; the cost of defending suits or claims
for infringement of patent or other intellectual property rights arising from such
requirement by the Contract Documents; payments made in accordance with legal
judgments against the Contractor resulting from such suits or claims and
payments of settlements made with the Owner's express prior written consent;
provided, however, that such costs of legal defenses, judgment and settlements
shall not be included in the calculation of the Contractor's Fee or the Guaranteed
Maximum Price and provided that such royalties, fees and costs are not excluded
by other provisions of the Contract Documents.
.6 Data processing costs related to the Work.
.7 Deposits lost for causes other than the fault of Contractor or its Subcontractors or
their failure to fulfill a specific responsibility to the Owner set forth in this
Contract.
.8 Legal, mediation and arbitration costs, other than those arising from disputes
between the Owner and Contractor, to the extent they are not caused by the
Contractor's fault and are reasonably incurred by the Contractor in the
performance of the Work, provided the Owner gives its prior written permission,
which permission shall not be unreasonably withheld.
.9 Expenses incurred in accordance with Contractor's standard personnel policy for
relocation and temporary living allowances of personnel required for the Work, in
case it is necessary to relocate such personnel from distant locations.
§ 6.1.7 OTHER COSTS
1 Other costs incurred in the performance of the Work if and to the extent approved
in advance in writing by the Owner.
.2 Completion Cost — The Contractor will establish a completion cost line item in
the Schedule of Values equal to 1.5 % of the Cost of the Work for Closeout
Documentation. Once the Owner issues a notice of Final Completion as outlined
in the General Conditions, the Contractor may request payment of the completion
cost line item.
§ 6.1.8 EMERGENCIES AND REPAIRS TO DAMAGED OR NONCONFORMING WORK
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The Cost of the Work shall also include costs described in Section 6.1.1 which are incurred by
the Contractor:
.1 To the extent not caused by the fault of the Contractor, its Subcontractors,
Suppliers, or any person for which any of them is legally responsible, in taking
action to prevent threatened damage, injury or loss in case of an emergency
affecting the safety of persons and property.
.2 In repairing or correcting damaged or nonconforming Work executed by the
Contractor or any of its Subcontractors or replacing non - conforming materials
provided by any of its Suppliers, provided that such damaged or nonconforming
Work or materials was not caused by the negligence of the Contractor or any of
its Subcontractors or Suppliers and only to the extent that the cost of repair,
correction or replacement is not recoverable by the Contractor from insurance.
§ 6.2 COSTS NOT TO BE REIMBURSED
§ 6.2.1 The Cost of the Work shall not include:
.1 Salaries and other compensation of the Contractor's personnel stationed at the
Contractor's principal office or offices other than the site office, except as
specifically provided in Sections 6.1.2.2, 6.1.2.3 and 6.1.2.5.
.2 Expenses of the Contractor's principal office and offices other than the site office,
except as specifically provided in Section 6.1.
.3 Overhead, administration and general expenses of Contractor, except as may be
expressly included in Section 6.1.
.4 The Contractor's capital expenses, including interest on the Contractor's capital
employed for the Work.
.5 Rental costs of machinery and equipment, except as specifically provided in
Section 6.1.5.2.
.6 Except as specifically provided in Section 6.1.8.2, costs due to the negligence of
the Contractor, its Subcontractors, Suppliers, or other persons for whom any of
them are legally responsible to the Owner under this Contract or applicable law or
to the failure of the Contractor to fulfill a specific responsibility to the Owner set
forth in this Contract.
.7 Costs incurred in the performance of Preconstruction Phase Services.
.8 Except as provided in Section 6.1.7.1, any cost not specifically and expressly
described in Section 6.1.
.9 Costs which would cause the Guaranteed Maximum Price to be exceeded.
.10 Costs of insurance not specifically required by the General Conditions.
§ 6.3 DISCOUNTS, REBATES AND REFUNDS
§ 6.3.1 Cash discounts obtained on payments made by the Contractor shall accrue to the
Contractor. Trade discounts, rebates, refunds and amounts received from sales of surplus
materials and equipment shall accrue to the Owner, and the Contractor shall make provisions so
that they can be secured.
§ 6.3.2 Amounts which accrue to the Owner in accordance with the provisions of Section 6.3.1
shall be credited to the Owner as a deduction from the Cost of the Work.
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§ 6.4 ACCOUNTING RECORDS
§ 6.4.1 The Contractor shall keep accurate, full and detailed accounts and utilize such accounting
and control systems as may be necessary for proper financial management under this Contract
and are acceptable to the Owner and its funding sources. The Owner and the Owner's
accountants and attorneys shall be afforded full access during normal business hours for
inspection and copying all of the Contractor's records, books, correspondence, instructions,
drawings, receipts, Subcontracts, Supply Contracts, purchase orders, vouchers, memoranda and
other data relating to the Work, and the Contractor shall preserve these for a period of three years
after final payment, or for such longer period as may be required by law.
ARTICLE 7 CONSTRUCTION PHASE
§ 7.1 PROGRESS PAYMENTS
§ 7.1.1 Based upon Applications for Payment submitted to the Project Manager, itemized based
upon the CSI Specification Divisions listed in the Schedule of Values, and Certificates for
Payment issued by the Architect and the Project Manager the Owner shall make progress
payments to the Contractor as provided below and elsewhere in the Contract Documents.
§ 7.1.2 The period covered by each Application for Payment shall be one calendar month ending
on the 25 day of the month.
§ 7.1.3 Provided an Application for Payment for the preceding month is received by the Project
Manager by the 1 day of the next succeeding month, the Project Manager shall issue a
Certificate of Payment based upon the percentage of completion of the Work through the period
covered by such Application for Payment that is computed in accordance with the requirements
of Section 7.1.6 and agreed upon by the Contractor and the Project Manager or, failing such
agreement, the percentage of completion determined by the Project Manager. The Owner shall
make payment to the Contractor of the amount specified in such Certificate of Payment not later
than 30 days after the Project Manager's receipt of such Application for Payment. If and to the
extent that an Application for Payment is received by the Project Manager after the 1st day fixed
above, such Certificate of Payment and payment deadlines shall be correspondingly extended.
§ 7.1.4 Within 30 days after each Application for Payment, the Contractor shall submit an
accounting in a form required by Owner, together with all supporting payrolls, petty cash
accounts, invoices, and any other backup for the Application of Payment required by the Owner.
§ 7.1.5 Each Application for Payment shall (a) be based upon and allocate the Cost of the Work
for which payment is sought therein among the various Work items (on both a per Application
and cumulative basis) shown on the Schedule of Values; and (b) be prepared in such form and
supported by such data to substantiate its accuracy and completeness as the Project Manager may
require. The Schedule of Values shall be used as a basis for the Project Manager's review of the
Contractor's Applications for Payment.
§ 7.1.6 Each Application for Payment shall show the percentage completion for each portion of
the Work shown in the Schedule of Values, as well as all of the Work, as of the end of the period
covered by the Application. The percentage completion for each such purpose shall be the lesser
of
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(a) the percentage of the subject Work which has actually been completed, or
(b) the percentage obtained by dividing
(i) the allowable Cost of Work which has actually been incurred by the
Contractor on account of the subject Work for which the Contractor has
made payment, by
(ii) the share of the Guaranteed Maximum Price allocated to such Work in the
Schedule of Values.
§ 7.1.7 Subject to other provisions in Section 7.1 and elsewhere in the Contract Documents, the
amount of each progress payment shall be computed as follows:
.1 Take that portion of the Guaranteed Maximum Price properly allocable to
completed Work as determined by multiplying the percentage completion of each
portion of the Work shown in the Schedule of Values by the share of the
Guaranteed Maximum Price allocated to that portion of the Work in the Schedule
of Values.
In determining the share of the Guaranteed Maximum Price properly allocable to
completed Work, the Contractor shall have the right to allocate Contractor's
Contingency among the other Work items shown in the Schedule of Values in its
discretion. Pending final determination of cost to the Owner of changes in the
Work, amounts not in dispute may be included, even though the Guaranteed
Maximum Price has not yet been adjusted by Change Order.
2 Add that portion of the Guaranteed Maximum Price properly allocable to
materials and equipment delivered and suitably stored at the site for subsequent
incorporation into the Work or, if approved in advance by the Owner, suitably
stored off the site at a location agreed upon in writing, provided that good,
marketable and unencumbered title to such materials and equipment passes to the
Owner before or upon payment of such portion of the Guaranteed Maximum
Price.
.3 Add the Contractor's Fee attributable to the Cost of the Work for which payment
is sought in such Application for Payment. The Contractor's Fee shall be
computed upon the Cost of the Work for the period covered by the Application of
Payment at the rate stated in Section 5.1.1.
.4 Subtract the aggregate of previous payments made by the Owner.
.5 Subtract amounts, if any, for which the Project Manager has withheld or nullified
a payment for cause.
§ 7.1.8 Upon receipt of the backup materials referred to in Section 7.1.4, the Owner shall
compare (a) the aggregate Cost of Work through the end of the period covered by the
Application for Payment to which they apply with (b) the Guaranteed Maximum Price multiplied
by the percentage of completion of all of the Work which is the lesser of the percentages of
compensation for all of the Work computed pursuant to Sections 7.1.6(a) and (b). If the amount
in Section 7.1.8(a) varies from the amount in Section 7.1.8(b) by plus or minus 5% or more, at
the discretion of the Owner it may require the Contractor to provide a written reconciliation of
such aggregate Cost of Work within 10 days. Such written reconciliation shall explain in detail
why such variation exists. In the event of an aggregate Cost of Work under run, such
reconciliation shall estimate the portion of the Guaranteed Maximum Price that the Contractor
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then believes will remain unspent by the Owner after the Final Payment to the Contractor to
allow the Owner to plan for use in other Project priorities. In the case of an aggregate Cost of
Work overrun, such reconciliation shall provide a detailed written plan for the Contractor to
complete the Work for a total Cost of Work not to exceed the Guaranteed Maximum Price.
§ 7.1.9 Except with the Owner's express prior written approval, which may be withheld in its
discretion, the Contractor shall not make advance payments to Subcontractors or Suppliers for
Work, materials or equipment which have not been delivered and stored at the site.
§ 7.1.10 In taking action on the Contractor's Applications for Payment, the Owner and the
Project Manager shall be entitled to rely on the accuracy and completeness of the accounting,
backup and other information furnished by the Contractor and shall not be deemed to represent
that they have made a detailed examination, audit or arithmetic verification of such accounting,
backup or other information, that they have made exhaustive or continuous on -site inspections,
or that they have made examinations to ascertain how or for what purposes the Contractor has
used amounts previously paid on account of the Contract. Such examinations, audits and
verifications, if required by the Owner, will be performed by the Project Manager or Owner's
accountants or attorneys acting in the sole interest of the Owner.
§ 7.2 FINAL PAYMENT
§ 7.2.1 Final Payment shall be made by the Owner to the Contractor when (1) the Contract has
been fully performed by the Contractor except for the Contractor's responsibility to correct
nonconforming Work, as provided in the General Conditions, or to satisfy other requirements, if
any, which necessarily survive final payment; (2) a final Application for Payment and a final
accounting for the Cost of the Work, together with such backup and other information as the
Project Manager may require, have been submitted by the Contractor and reviewed by the
Project Manager; and (3) a final Certificate for Payment has then been issued by the Architect
and the Project Manager. Such final payment shall be made by the Owner not more than 30 days
after the issuance of the final Certificate for Payment.
§ 7.2.2 The amount of the Final Payment shall be calculated as follows:
.1 Take the sum of the Cost of the Work substantiated by the Contractor's final
accounting and the Contractor's Fee, but not more than the Guaranteed Maximum
Price after all required Change Orders, Construction Change Directives and other
proper adjustments (if any) are taken into account.
.2 Subtract amounts, if any, for which the Project Manager withholds, in whole or in
part, in a final Certificate for Payment as provided in the General Conditions or
other provisions of the Contract Documents.
.3 Subtract the aggregate of previous payments made by the Owner.
If the aggregate of previous payments made by the Owner exceeds the amount due the
Contractor, the Contractor shall reimburse the difference to the Owner, with interest at the
Contract Rate.
§ 7.2.3 The Owner will review and report in writing on the Contractor's final accounting within
30 days after delivery of the final accounting to the Project Manager by the Contractor. Based
21
upon such Cost of the Work as the Owner reports to be substantiated by the Contractor's final
accounting, together with such backup and other information as the Owner may require, and
provided the other conditions of Section 7.2.1 have been met, the Project Manager will, within
seven days after completion of its written report, either issue to the Owner a final Certificate for
Payment with a copy to the Contractor or notify the Contractor and the Owner in writing of its
reasons for withholding such Certificate as provided in the General Conditions. The time periods
stated in this Section 7.2 supersede those stated in other contract documents.
§ 7.2.4 If the Project Manager reports the Cost of the Work as substantiated by the Contractor's
final accounting to be less than claimed by the Contractor, the Contractor shall be entitled to
proceed in accordance with Article 15 without a further decision of the Project Manager. Unless
agreed to otherwise, a demand for mediation of the disputed amount shall be made by the
Contractor within 60 days after the Contractor's receipt of a copy of the final Certificate for
Payment. Failure to make such demand within this 60 -day period shall result in the substantiated
amount reported by the Project Manager becoming binding on the Contractor. Pending a final
resolution of the disputed amount, the Owner shall pay the Contractor the amount certified in the
final Certificate for Payment by the Project Manager.
§ 7.2.5 If, subsequent to Final Payment and at the Owner's request, the Contractor incurs costs
described in Section 6.1 and not excluded by Section 6.2 to correct nonconforming Work, the
Owner shall reimburse the Contractor such costs and the Contractor's Fee, if any, related thereto
on the same basis as if such costs had been incurred prior to Final Payment, but not in excess of
the Guaranteed Maximum Price.
ARTICLE 8 INSURANCE AND BONDS
§ 8.1 INSURANCE REQUIRED OF THE CONTRACTOR
During the Preconstruction Phase and Construction Phase, the Contractor shall procure and
maintain all of the insurance required in Article 5 of the General Conditions. During
Preconstruction Services Phase, the Contractor shall not be required to maintain builders risk
insurance.
The premium cost of the insurance required
such
expressly endorsed to apply only to th e
premium cost multiplied by the ratio that the Guaranteed Maximum Cost bears to the aggregate
contract prices for Contractor's work for all clients during each premium period may be included
within the Cost of the Work.
§ 8.2 NOT USED
§ 8.3 PERFORMANCE BOND AND PAYMENT BOND
§ 8.3.1 Performance and Payment Bond Requirements are in Article 5.2 of the General
Conditions.
§ 8.3.2 NOT USED
22
ARTICLE 9 MISCELLANEOUS PROVISIONS
§ 9.1 DISPUTE RESOLUTION
§ 9.1.1 During both the Preconstruction and Construction Phases, Claims, disputes or other
matters in question between the parties to this Contract shall be resolved as provided in the
General Conditions.
§ 9.2 OTHER PROVISIONS
§ 9.2.1 Unless otherwise noted, the terms used in this Contract shall have the same meaning as
those in the General Conditions. "Architect" is the same as "Engineer"
§ 9.2.2 EXTENT OF CONTRACT
The Contract Documents, which include this Contract and the other documents incorporated
herein by reference, represent the entire and integrated agreement between the Owner and the
Contractor and supersede all prior negotiations, representations, warranties, covenants, promises
and agreements, either written or oral, with respect to the subject matter thereof. The Contract
Documents may be amended only by written instrument signed by both the Owner and
Contractor. If anything in any document incorporated into this Contract is inconsistent with this
Contract, this Contract shall govern. No oral communications or course of dealing or
performance between Contractor, Architect, Project Manager and /or Owner shall be taken into
account to determine whether any amendment to the Contract Documents has occurred.
§ 9.2.3 NOT USED
§ 9.2.4 NOT USED
§ 9.2.5 ASSIGNMENT
The provisions for Assignment of the Contract are included in Article 6.24 of the General
Conditions.
ARTICLE 10 TERMINATION OR SUSPENSION
§ 10.1 TERMINATION
§ 10.1.1 The Owner may terminate this Contract at any time for convenience pursuant to Article
14 of the General Conditions.
§ 10.1.2 If the Owner or Contractor terminates this Contract pursuant to Section 10.1.1 prior to
commencement of the Construction Phase, the Contractor shall be compensated only for
Preconstruction Phase Services performed prior to receipt of notice of termination at the rate
provided in Section 4.1.1; provided, however, that the compensation for such services shall not
exceed the maximum compensation set forth in Section 4.1.1 without a Change Order or
Construction Change Directive.
§ 10.1.3 If the Owner or Contractor terminates this Contract pursuant to Section 10.1.1 after
commencement of the Construction Phase, the Contractor shall, in addition to the compensation
provided in Section 10.1.2, be paid per the provisions of Article 14 of the General Conditions.
23
§ 10.2 NOT USED
§ 10.3 NOT USED
ARTICLE 11 OTHER CONDITIONS AND SERVICES
§ 11.1 MISCELLANEOUS
Nothing contained in this Contract shall create (a) any contractual relationship or obligation
between (i) the Contractor and (ii) any other third party, (b) any cause of action or defense by the
Contractor against any other third party, or (c) any cause of action or defense in favor of any
other third party against either the Owner or the Contractor. The Contractor shall require each of
its Subcontractors, Suppliers and other parties with whom or which it contracts with respect to
the Work to expressly agree in writing: (d) that the Owner is an intended third -party beneficiary
of the Subcontract, Supply Contract, or other contract pursuant to which such Subcontractor,
Supplier or other contract party provides labor, materials, supervision or services that are part of
the Work for the benefit of the Owner; (e) that all of the provisions of this Contract applicable to
the Work which such Subcontractor, Supplier or other contract party provides for the benefit of
the Work, either expressly or by implication, except for compensation, supervision, direction and
control, shall apply to such Subcontractor, Supplier or other contract party and supersede any and
all contrary or inconsistent provisions under the Subcontract, Supply Contract or other contract;
and (f) that such Subcontractor, Supplier or other party assumes the same contractual
responsibilities and obligations for such Work directly to the Owner as if it were in direct privity
of contract with the Owner, but all obligations to compensate, supervise, direct and control such
Subcontractor, Supplier or other contract party shall remain solely with the Contractor. No
Subcontract, Supply Contract or other contract between the Contractor and any of its
Subcontractors, Suppliers or other contract parties may contain any liability limitation or cap or
consequential damage liability waiver that is enforceable against the Owner.
24
This Contact entered into as of the day and year first written above.
OWNER CONTRACTOR
, s , •
City of Seward, PCL Co • ruction Services,. Inc.
BY By wA J , 11 ,
-
Phillip Oates, City Manager Fred G. Regional Vice Pre
//7 (7, 2010 C_c- q ,201d
Date Date
Attest:
41. ,
ill
By: -10 1.., , e44. _ /Alt&
Cy Clerk
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ARTICLE 12 AKNOWLEGEMENTS
STATE OF ALASKA )
) ss.
FIRST JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ! `' day of WVentii9fir
2010, before me, the undersigned, a notary public in and for the State of Alaska, duly
commissioned and sworn, personally appeared Phillip Oates to me known to be the
City Manager of the City of Seward, a municipal corporation, the corporation which
executed the above and foregoing instrument; who on oath stated that he was duly
authorized to execute said instrument on behalf of said corporation; who acknowledged
to me that he signed the same freely and voluntarily on behalf of said corporation for the
uses and purposes therein mentioned.
WITNESS my hand and official seal the day and year in the certificate first above
written.
# ,� � F�y N O ARY PUBLIC FOR ALASKA
(Seal) ,4 ° Commission Expires: 7 - /4 - 01 3
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�, AN)%1 ;
,, 1 /13 .� e '?
j'�S� rq T� OF ,` �
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STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
THIS IS TO CERTIFY that on this _ day of CC- O6-eA
2010, before me, the undersigned, a notary public in and for the State of Washington,
duly commissioned and sworn, personally appeared Fred Auch to me known to be the
Regional Vice President, PCL Construction Services, Inc. the corporation which
executed the above and foregoing instrument; who on oath stated that he was duly
authorized to execute said instrument on behalf of said corporation; who acknowledged
to me that he signed the same freely and voluntarily on behalf of said corporation for the
uses and purposes therein mentioned.
'' WITNESS3my hand and official seal the day and year in the certificate first above
wrtter'i '
- r ,l
NOTARY PUBLIC FOR WA HINGTON
(Seal),,
My Commission Expires
3 26
Z
Johanna Kinney
From: John Foutz
Sent: Friday, June 17, 2011 3:39 PM
To: Johanna Kinney
Cc: Phillip Oates
Subject: FW:
Attachments: distribution standards.doc
Hi Johanna,
Attached is some valuable information for the City Council for Monday's special session. It seems the Federal
Communications Commission is in the process of making a ruling on the very same topic that we are discussing with
GCI. Please let me know if there is enough time to get it in.
Thank you,
John Foutz
City of Seward
Electric Utility Manager
Office: 907- 224 -4071
1
BEFORE THE
FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON, D.C. 20554
In the Matter of )
Implementation of Section 224 of the Act; )
Amendment of the Commission's Rules )
and Policies Governing Pole Attachments )
WC Docket No. 07 -245
RM -11293
RM -11303
These comments also address the safety and reliability implications of unauthorized
attachments. The Florida IODs urge that the route to solving the problem of unauthorized
attachments is not through additional Commission involvement, but instead by the
Commission allowing electric utilities to enforce their pole attachment agreements.
Finally, these comments address certain specific access - related issues raised in
connection with the Fibertech Petition, and urge the Commission not to adopt rules
which could compromise the safety and reliability of the electric distribution systems.
Safety and Reliability.
5. FPL's overhead distribution construction standards (which include third -party
attachment standards) are based on a number of different factors. These factors include,
but are not limited to, field experience, geography, climate, and distribution system
studies. Our standards are not static. As we learn new lessons, these standards are
routinely updated. For this very reason, FPL's pole attachment and joint use contracts
include provisions that require attaching entities to comply with FPL's standards as
revised from time to time.
6. In some instances, our standards exceed the requirements of the National Electric
Safety Code ( "NESC "). The NESC contains a good baseline for third party attachment
standards. However, it would be harmful to the safety and reliability of the distribution
system for the NESC be considered a "ceiling" on standards. The NESC Handbook itself
recognizes that the NESC standards are not appropriate in every instance, and that "local
conditions" may call for different practices. See NESC Handbook, p. 3 (6th ed. 2006).
Further, the NESC is a safety code - not a construction code. Certain standards which
exceed the NESC may exist for purposes of ensuring the reliability of the system, or for
accommodating speedy service restoration, or for purposes of maintenance efficiency, or
all of the above.
7. Under the storm hardening rules promulgated by the FPSC, FPL is required to
maintain a Storm Hardening Plan (for submission/approval to the FPSC every three
years). As part of the storm hardening plan, FPL is required to "maintain written safety,
reliability, pole loading capacity, and engineering standards and procedures for
attachments by others to the utility's electric transmission and distribution poles" which
"meet or exceed" the NESC. Fla. Admin.
Code, Rule 25- 06.0342(5). The Storm Hardening Plan submitted by FPL contained
standards (applicable to third party attachment and overhead construction, generally)
which exceed the NESC. FPL's initial plan was approved by the FPSC by order PSC -07-
1023-FOF-EL.
8. One distribution construction standard unique to FPL is our adoption of extreme wind
loading ( "EWL ") standards for critical infrastructure (e.g., facilities serving hospitals, 911
centers, police and fire stations, etc.) as well as new construction, major planned work,
relocation projects, and daily work activities. This is an example of where our
requirement exceeds the NESC minimum standards. FPL adopted EWL based on the
storm history in its service territory, in conjunction with recommendations from a study
commissioned by FPL to address system performance and reliability following the
catastrophic 20Q4 and 2005 hurricane seasons.
Safety and Reliability
5. TECO's overhead distribution construction standards (which include third -party
attachment standards) are based on a number of different factors. These factors include,
but are not limited to, field experience, geography, climate, and distribution system
studies. These standards are regularly revised and updated as company engineers and
business personnel learn new lessons in the field and elsewhere. TECO has adopted a
Grade B distribution construction standard.
6. One example where our standard exceeds the NESC is the separation requirement
between the bottom of a transfonner and the uppennost communications line. The NESC
requires at least 30 inches of separation (so long as other clearances are met) but TECO
requires 40 inches of separation. This 40 inch separation requirement exists for at least
two reasons. First, it makes the separation requirement consistent with most other
communications /electric separation requirements (40 inches is the typical separation),
thereby eliminating a potential layer of confusion. Second, TECO's transformer
construction configurations differ slightly from some other utilities in so far as the
secondary is generally installed at roughly the mid—point of the transformer can. The
additional 10 inches of separation makes poles safer in the event the metallic transformer
can, for some reason, becomes energized.
9. FPL has a permitting process an attacher must follow before attaching to a pole which
is set forth in the pole attachment agreements, as well as the third party attachment
standards and procedures required by the FPSC. The fundamental purpose of these
processes is to allow an opportunity to "pre- engineer" for the attachment in order to
preserve the safety and reliability of the distribution system. The permitting process
minimizes the incidence of clearance and loading violations, both of which can adversely
impact the safety and reliability of the distribution system. Though the clearance
requirements are of great importance, the loading requirements are of equal concern since
these can impair the structural integrity of a pole line if not properly engineered.
Overlashing, (lashing additional wires to the existing messenger cable wire) presents
similar pole loading concerns (along with clearance concerns, particularly at mid
span). The Communication Workers Safety Zone (sometimes called the "safety space ") is
inches in most construction configurations.
5. PEF's overhead distribution construction standards (which include third -party attaclunent
standards) are based on a number of different factors. These factors include, but are not
limited to, field experience, geography, climate, and distribution system studies. Our
standards are routinely updated based on experiences, studies and "lessons learned." For this
very reason, PEF's pole attachment and joint use agreements include provisions that require
attaching entities to comply with PEF's standards "as may be amended or revised." Our
contracts also require that the attaching party meet the stricter of the requirements, where
there are differences. PEF has adopted a Grade B distribution construction standard.
6. In some instances, our standards exceed the requirements of the National Electric Safety
Code ( "NESC ") for a variety of reasons. One such reason has to do with materials. From a
materials management perspective, it is much more efficient to purchase limited types of
hardware and equipment that can accommodate multiple construction applications. The
ability to use one piece of hardware, tool, or electrical equipment for a variety of construction
types reduces inventory, engineering and construction cost. Another reason is to facilitate
speed of restoration in the event of an outage.
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