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:
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Joh.nna Kinn*, MC d
Cit Clerk
(City Seal)
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Agenda Statement
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Meeting Date: September 8, 2014 ,_ 9a
To: City Council
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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
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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
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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.
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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
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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
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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
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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
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