HomeMy WebLinkAboutRes2017-034Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2017-034
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONTRACT WITH KNIK CONSTRUCTION FOR ADDITIONAL ROAD
IMPROVEMENTS AND PAVING UTILIZING THE 2017 ROAD BONDS TO
FINANCE THE PLANNING, DESIGN AND CONSTRUCTION OF THE
ROAD IMPROVEMENT PROJECTS IN THE AMOUNT OF $3,000,000, AND
APPROPRIATING FUNDS
WHEREAS, there is a substantial and immediate need for repair and repaving many streets
within the City; and
WHEREAS, On October 4, 2016 the citizens of Seward voted in favor of the issuance of
general obligation bonds in a principle amount not to exceed $3,000,000 to finance capital
improvements to roads in the City; and
WHEREAS, the City Council authorized those bonds in Resolution 2017-003, January 9,
2017; and
WHEREAS, the City has created a road paving priority map and road paving plan; and
WHEREAS, the State of Alaska is currently administering a road paving contract in Seward
as a condition of a federal grant with contractor Knik Construction; and
WHEREAS, Knik Construction was awarded the repaving contract in a competitive bidding
process through the above -referenced State of Alaska paving contract; and
WHEREAS, the City has an opportunity to realize substantial savings through the economies
of scale, time and location by also utilizing Knik Construction to repave, improve and upgrade roads
not scheduled, utilizing the State contract;
WHEREAS, Seward City Code 6.10.120(B) allows the City to utilize competitive bids by
other governmental units.
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 a contract with Knik
Construction for a total sum not to exceed $3,000,000 according to the 2017 Seward priority map for
necessary road improvements to be performed this year utilizing the pricing and specifications of the
State road contract while Knik Construction is present in Seward with its equipment, personnel, and
CITY OF SEWARD, ALASKA
RESOLUTION 2017-034
supplies.
Section 2. It is in the public interest to authorize competitive bids obtained by the State of
Alaska, as authorized in Seward City Code 6.10.120(b).
Section 3. Funding in an amount not -to -exceed $3,000,000 is hereby appropriated as
follows: 1) $2,962,858.18 from bond proceeds account no. 80020-0000-3400; and 2) $37,141.82
from the General Fund undesignated reserves account no. 01000-0000-3710-0000-80020, to
infrastructure account number 80020-1310-8101.
Section 4. This resolution shall take effect immediately upon approval.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12'h
day of June 2017.
THE CITY OF SEWARD, ALASKA
J an Bardarson, Mayor
AYES:
Casagranda, Keil, McClure, Altermatt, Bardarson
NOES:
None
ABSENT:
Squires, Slater
ABSTAIN:
None
ATTEST:
J hanna Kinn , CMC
ity Clerk
set(City Seal) ,.•��l pF ..... '.,
SEAL •
� w
a
0� i e
10
44'. e S
OF NY
0
*01458911.66sl°
Agenda Statement
Meeting Date: June 12, 2017
To: City Council
Through: Jim Hunt, City Manager
From: Doug Schoessler, Public Works Director
Agenda Item: Authorizing the City Manager to enter into a contract with KNIK
Construction for additional road improvements and paving
utilizing the 2017 road bonds to finance the planning, design and
construction of the road improvement projects not to exceed
$3,000,000.
BACKGROUND & JUSTIFICATION:
There has been a substantial and immediate need for repair and repaving many streets within the City
due to time, heavy use, nature and deferred maintenance. Pursuant a federal grant, the State of
Alaska is making a number of repairs on State roads within Seward. The City has worked with the
state to indentify and prioritize repairs and upgrades within the City road system. Although there is a
recognized need for additional repairs the federal and state funding are insufficient to cover all of
Seward's needs.
On October 4, 2016 the citizens of Seward voted in favor of the issuance of general obligation bonds
in a principle amount not to exceed $3,000,000 to finance capital improvements to roads in the City.
The Council authorized those bonds in Resolution 2017-003, January 9, 2017.
The State of Alaska solicited the road improvements "Seward Road Improvements, Project No.
0001551/CFHWY00004" as an invitation to bid in March 2017. The State received bids from four
large general contractors and awarded the project to KNIK Construction Inc. as the lowest bidder.
The project is subject to a set of"Standard Specifications for Highway Construction" and the State of
Alaska Department of Transportation "Standard Modifications and Special Provisions."
The City has an opportunity to realize substantial savings through the economies of scale, time and
location by also utilizing KNIK Construction to repave, improve and upgrade roads not scheduled
under the State contract. KNIK Construction has already mobilized it personnel and equipment to
Seward and has established suppliers of materials. Further, we will not incur the cost of hiring an
engineer to write our own set of specifications; the City will not incur the cost of preparing and
opening an RFP; and the project will not be delayed by the RFP process.
Seward City Code 6.10.120(B) allows the City to utilize competitive bids by other governmental
units as an exception to the need to use competitive bidding procedures under SCC 6.10.115. The
Code also allows an exception to SCC 6.10.115 "where the City Council determines and makes
written findings that the public interest would be best served by not requiring competitive
bids/proposals. The best interest determination may be based upon, but is not limited to, a finding
50748611002\00616616
that the services or articles can be procured at a lower cost without competitive bidding."
In this case, KNIK Construction has already competitively bid for the same services and products for
the State repaving project and there also appears to be substantial savings in time, administrative
overhead, and likely in the cost of the work, by hiring KNIK Construction directly.
INTENT:
To authorize the City Manager to enter into a contract with KNIK Construction for road upgrades
and repairs not to exceed $3,000,000, utilizing the State's competitive procurement process.
CONSISTENCY CHECKLIST:
Yes
No
N/A
1.
Comprehensive Plan (document source here): 3.4 Transportation
X
2.
Strategic Plan (document source here):
CJ.
3.
Other (list):
FISCAL NOTE:
The City issued general obligation bonds in the amount of $2,962,858.18 on April 27, 2017. An
additional appropriation of $37,141.82 is needed to bring the total funding available to $3 million.
The additional monies represent the total cost of bond issuance including underwriting, borrower's
issuance, legal and financial advisory fees.
Approved by Finance Department: , 4A
ATTORNEY REVIEW: Yes X No Not Applicable
RECOMMENDATION:
City Council approve Resolution 2017- 03 4 authorizing the City Manager to enter into a contract
with KNIK Construction for a total sum not to exceed $3,000,000.
507486\1002\00616616
BETWEEN:
and
CONSTRUCTION AGREEMENT
CITY OF SEWARD, ALASKA (the "CITY")
Post Office Box 167
Seward, Alaska 99664
Phone: 907.224.3445 Fax: 907.224.8633
KNIK Construction (the "Contractor")
6400 South Airpark Place
Suite 1
Anchorage, Alaska 99502
(907)249-0208
(800)770-5645
Fax: (907)249-0250
The City and The Contractor agree as follows:
AGREEMENT
1. DEFINITIONS. In addition to the terms defined above, capitalized terms used in this
Agreement will have (unless otherwise provided in this Agreement) the following meanings:
1.1 "Agreement" means this Agreement, including all amendments, modifications, and
supplements hereto and any appendices, exhibits, or schedules to same, and refers to this
Agreement as it may be in effect at the time such reference becomes operative. Together the
documents form an Agreement which represents the entire and integrated agreement between
the parties hereto, and supersedes prior negotiations or agreements, either written or oral. This
Agreement is entered into solely for the purpose of the Project.
1.2 "Contract Documents" means and consists of (i) this Agreement signed by City
and Contractor; (ii) Attachment 1 (Alaska Department of Labor and Workforce Development
Pamphlet 600), which is incorporated herein as though fully set forth herein; (iii) all exhibits to
this Agreement; and (iv) all change orders for changes in the Work issued after the execution of
this Agreement.
1.1 "City's Representative" means Mr. Doug Schoessler, Public Works Director; City
Manager; or the City Manager's designee.
1.2 "Work" means all labor, materials, equipment and services provided by
Contractor to fulfill Contractor's obligations.
Construction Agreement
Page 1 of 13
006/7757
2. SCOPE OF WORK
The Contractor shall furnish all materials, labor and equipment necessary for the resurfacing
and related road work on existing roads as further described or identified in attached Appendix
A, (two pages,) or as further assigned based on availability of funds.
3, DATE OF COMMENCEMENT AND COMPLETION
3.1 The Date of Commencement will be the date of receipt of written Notice to
Proceed by the Contractor.
3.2 Following receipt of the Notice to Proceed, Contractor must complete the Scope
of Work no later than October 31, 2017.
3.3 Time is of the essence in this Agreement.
3.4 If Contractor fails to complete the work within the time specified in this Contract,
or any extension thereof, Contractor will pay to City as liquidated damages One Hundred
Dollars ($100) per day for each day of delay. To the extent Contractor's delay or
nonperformance is excused under another clause in this contract, liquidated damages will not
be due City. Contractor remains liable for damages caused by circumstances other than delay.
3.5 If Contractor is delayed at any time in the progress of the Work by changes
ordered in the Work, or by labor disputes, fire, unusual delay in deliveries, unavoidable
casualties or other causes beyond Contractor's control, the Contract Time will be extended by
Change Order to the extent that: (1) the delay will prevent Contractor from achieving
Substantial Completion within the Contract Time, and (2) the performance of the Work is not
delayed by any other cause for which Contractor is not entitled to an extension in the Contract
Time under the Contract Documents. Adjustments to the Contract Time will be permitted for a
delay only to the extent such delay (1) is not caused, or could not have been anticipated, by
Contractor, (2) could not be limited or avoided by Contractor's timely notice to City of the delay,
and (3) is of a duration not less than one day.
3.6 Final inspection and acceptance by City's Representative will not be made until all
Work under this Agreement is completed.
4. COMPENSATION OF CONTRACTOR
4.1 CONTRACT SUM; PAYMENT. For and in consideration of Contractor's
performance of the Work, Contractor will receive: Payment by unit price and actual quantities of
work and materials provided in accordance with the bid prices attached schedule B (bid
schedule,) and any authorized adjustments for additional work not anticipated by this contract.
In any case the total payments under this contract exceed three million dollars ($3,000,000).
Contractor will supply daily budgets to City for review and approval. City's payment obligation
will be subject to:
Construction Agreement
Page 2 of 13
00617757
4.1.1 A reduction by any amount owed by Contractor to City at the time payment
of the Contract Sum is due; or
4.1.2 Additions and/or deletions by Change Order.
4.2 CONTRACTOR'S INVOICES. Each street in this contract may be invoiced upon
completion, in any case Contractor will submit a single final invoice within thirty (30) days of the
completion of Work.
4.3 REVIEW OF CONTRACTOR'S INVOICES. City's Representative will, within
fifteen (15) days after receipt of any Contractor's invoice, approve payment for such amount as
City's Representative determines is properly due, and notify Contractor in writing of the reasons
for any withholding of payment in whole or in part.
4A RETAINAGE. City will withhold five percent (5%) retainage from each payment to
Contractor. Upon substantial completion of the Work, the City will release to Contractor all
retained amounts relating to the Work, less an amount equal to the reasonable value of any
remaining or incomplete items of Work. No interest shall accrue on retainage withheld by City.
4.5 PAYMENT BY CONTRACTOR
4.5.1 Contractor will promptly pay each person who supplies labor or materials to
Contractor upon receipt of payment from City, out of the amount paid to Contractor.
4.5.2 City will have no responsibility for the payment of money to a person or
entity who supplies labor or materials to Contractor.
4.5.3 A payment, or partial or entire use or occupancy of the Work by City, will not
constitute acceptance of any Work not in accordance with the requirements of the Contract
Documents.
4.5.4 If City is entitled to reimbursement or payment from Contractor under the
Contract Documents, Contractor will make the payment promptly upon demand by City.
Notwithstanding anything in the Contract Documents to the contrary, if Contractor fails promptly
to make any payment due City, or City incurs costs and expenses to cure any default of
Contractor or to correct defective Work, City will have an absolute right to offset the amount
against the Contract Sum and may, in City's sole discretion, either (1) deduct an amount equal
to the amount which is due City from any payment then or thereafter due Contractor from City,
or (2) issue a written notice to Contractor reducing the Contract Sum by an amount equal to the
amount which is due City.
4.6 FINAL COMPLETION AND FINAL PAYMENT. Upon receipt of a final Application
for Payment, City's Representative will determine whether the final work is acceptable to City.
City may withhold from the final payment to Contractor any amount that City determines is
necessary to render the Work acceptable to City under the Contract Documents.
Construction Agreement
Page 3 of 13
00617757
5. ADMINISTRATION OF THE AGREEMENT
5.1 City's Representative will provide administration of this Agreement according to
Contract Documents. City's Representative will have authority to act on behalf of City only to
the extent provided in the Contract Documents. City may designate a new City's
Representative from time to time by written notice to Contractor.
5.2 CITY'S RIGHT TO STOP WORK. If Contractor fails to correct Work which is not
in accordance with the Contract Documents, City may direct Contractor in writing to stop the
Work until the correction is made.
5.3 EXTENT OF CITY RIGHTS,
5.3.1 The rights stated in this Section 5 and elsewhere in the Contract
Documents are cumulative and not in limitation of any rights of City (1) granted in the Contract
Documents, (2) at law, or (3) in equity.
5.3.2 In no event will City have control over, charge of, or any responsibility for,
means, methods, techniques, sequences or procedures, or for safety precautions and programs
in connection with the Work, notwithstanding any of the rights and authority granted City in the
Contract Documents,
6. PERFORMANCE OF THE WORK
6.1 SPECIFICATIONS.
6.1.1 All work will be performed in accordance with the plans and specifications
for the State of Alaska DOT Seward Road Improvements Project, project number
0001551/CFHWY00004, further defined as the State of Alaska Transportation and Public
Facilities, Standard Specifications for Highway Construction and the Standard Modifications and
Special Provisions thereto.
6.2 SUPERVISION OF THE WORK.
6.2.1 Contractor will supervise and direct the Work, using Contractor's best skill
and attention. Contractor will be solely responsible for and have control over means, methods,
techniques, sequences and procedures, and for coordinating all portions of the Work.
6.2.2 Contractor will be responsible to City for acts and omissions of
(1) Contractor's agents and employees, and (2) other persons or entities performing work under
a contract with the Contractor. Contractor will promptly remedy damage and loss to property
caused in whole or in part by Contractor, or by anyone for whose acts Contractor may be liable.
Construction Agreement
Page 4 of 13
00617757
6.3 LABOR AND MATERIAL.
6.3.1 Unless otherwise provided in the Contract Documents, Contractor will
provide and pay for all labor, materials, equipment, tools, utilities, transportation and other
facilities and services necessary for proper execution and completion of the Work. All materials
furnished by Contractor shall be new and suitable for the intended purpose.
6.3.2 Contractor will enforce strict discipline and good order among Contractor's
employees and other persons carrying out this Agreement. Contractor will not permit
employment of unfit persons or persons not skilled in tasks assigned to them.
6.4 TAXES. Contractor will pay all federal, state, and local taxes incurred by
Contractor and will require the payment of such taxes incurred by any Subcontractor or any
other persons in the performance of the Work.
6.5 PERMITS, FEES AND NOTICES
6.5.1 Contractor will obtain and pay for all permits, governmental fees, licenses
and inspections necessary for proper execution and completion of the Work.
6.5.2 Contractor will comply with and give notices required by agencies having
jurisdiction over the Work. If Contractor performs Work knowing it to be contrary to laws,
statutes, ordinances and rules and regulations without notice to City, Contractor will assume full
responsibility for such Work and will bear the attributable costs. Contractor will promptly notify
City in writing of any known inconsistencies in the Contract Documents with such laws, rules
and regulations.
6.5.3 Contractor will comply with all federal and state environmental statutes,
rules and regulations applicable to the Work.
6.6 COMPLIANCE WITH LAWS. Contractor will perform the Work in compliance with
all applicable laws, statutes, ordinances, rules and regulations.
6.7 ALASKA PREVAILING WAGE REQUREMENTS. The contractor shall at all times
comply with Alaska's Prevailing Wage Act, AS 36,05.005 of seq,, the requirements of which are
set forth in Attachment 1 (Alaska Department of Labor and Workforce Development Pamphlet
600).
6.8 SAFETY PRECAUTIONS AND PROGRAMS. Contractor will be responsible for
initiating, maintaining and supervising all safety precautions and programs with respect to
hazardous conditions that may arise in connection with the performance of the Work.
6.9 INSPECTION. City will have the right to reject defective workmanship or require
its correction. Rejected workmanship will be satisfactorily corrected. If Contractor fails to
proceed at once with the correction of defective workmanship, City may, by contract or
otherwise, terminate the right of Contractor to proceed, as provided by this Contract.
Construction Agreement
Page 5 of 13
00617757
6.10 CORRECTION OF WORK. Contractor will promptly correct Work rejected by
City's Representative as failing to conform to the requirements of the Contract Documents.
Contractor will bear the cost of correcting such rejected Work.
6.11 USE OF SITES. Contractor will confine operations to areas permitted by law,
ordinances, permits, the Contract Documents and by the City.
6.12 CLEANING UP. Contractor will keep the Work and the surrounding area free
from accumulation of debris and trash related to the Work.
7. CHANGES IN THE WORK
7.1 In the event that Contractor encounters a condition giving rise to a change in the
Work, Contractor shall immediately notify City in writing of such condition. No allowance for an
extension of time or additional compensation shall be claimed by Contractor unless Contractor
shall have timely notified City of the condition and made written request for such allowance
within three (3) days after such condition was encountered.
7.2 Changes in the Work may be accomplished only by Change Order. City, without
invalidating the Contract, may order changes in the Work within the general scope of the
Contract consisting of additions, deletions or other revisions, with the Contract Sum and
Contract Time being adjusted accordingly. A change in the Contract Sum or the Contract Time
will be accomplished only by Change Order. Accordingly, no course of conduct or dealings
between the parties, nor express or implied acceptance of alterations or additions to the Work,
nor claim that the City has been unjustly enriched by any alteration or addition to the Work, will
be the basis of any claim to an increase in any amounts due under the Contract Documents or
a change in any time period provided for in the Contract Documents.
7.3 A Change Order will be a written order to Contractor signed by City's
Representative to change the Work, Contract Sum or Contract Time. Agreement on any
Change Order will constitute a final settlement of all matters relating to the change in the Work
which is the subject of the Change Order, including without limitation all direct and indirect costs
associated with the change and any and all adjustments to the Contact Sum and the
construction schedule. In the event a Change Order increases the Contract Sum, Contractor
will include the Work covered by such Change Orders in Contractor's invoices as if such Work
were originally part of the Contract Documents.
7A Delays beyond the control of Contractor shall include, but not be limited to, acts or
neglect by Owner, acts or neglect of utility owners or other contractors performing other work,
fires, floods, epidemics, abnormally severe weather conditions, or acts of God.
Constriction Agreement
Page 6 of 13
00617757
8.1 Except as otherwise provided in this Agreement, any claim or dispute concerning
questions of fact which may arise under this Agreement will be presented in writing by
Contractor to City's Representative.
8.2 In presenting a claim, Contractor will clearly and specifically state: (1) the
Agreement provision under which the claim is made; (2) the Project item on which the claim is
based; and (3) the specific relief requested, including any additional time Contractor believes it
is entitled to.
8.3 If the amount of additional time cannot be readily ascertained at the time the claim
is submitted, such amounts will be submitted as soon as they are discernible. In any case, the
detailed claim, including all necessary supporting data, will be submitted to City's
Representative no later than thirty (30) days after completing the Project item of Work on which
the claim is based.
9. RIGHTS AND REMEDIES
9,1 EVENTS OF DEFAULT. The occurrence of any one or more of the following
events (regardless of the reason therefore) will constitute an "Event of Default" hereunder:
9.1.1 Contractor fails to fully comply with any provision of this Agreement,
including, but not limited to, failure to prosecute the Work.
9.1.2 A case or proceeding has been commenced against Contractor in a court
having competent jurisdiction seeking a decree or order in respect of Contractor (1) under
Chapter 7, 11, or 13 of Title 11 of the United States Code, as now constituted or hereafter
amended, or any other applicable federal, state, foreign bankruptcy or other similar law, (2)
appointing a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar official)
of Contractor or of any substantial part of Contractor's properties, or (3) ordering the winding -up
or liquidation of the affairs of Contractor, and in each instance such case or proceeding will
remain undismissed or unstayed for sixty (60) consecutive days or such court will enter a decree
or order granting the relief sought in such case or proceeding.
9.1.3 Contractor (1) files a petition seeking relief under Chapter 7, 11, or 13 of
Title 11 of the United States Code, as now constituted or hereafter amended, or any other
applicable federal, state, foreign bankruptcy or other similar law, (2) consents to the institution of
proceedings thereunder or to the filing of any such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar
official) of Contractor or any substantial part of Contractor's properties, or (3) takes any
corporate action in furtherance of any such action.
9.2 REMEDIES. When any of the above occurs, City may without prejudice to any
other rights or remedies of, terminate employment of the Contractor and may:
Construction Agreement
Page 7 of 13
00617757
9.2.1 take possession of the site and of all materials thereon owned by
Contractor; and
9.2.2 finish the Work by whatever reasonable method City may deem expedient.
9.3 PAYMENT UPON TERMINATION.
9.3.1 When City terminates this Agreement for one of the reasons stated in
Paragraph 9.1, Contractor will not be entitled to receive further payment until the Work is
finished.
9.3.2 If the unpaid balance of the Contract Sum exceeds costs of finishing the
Work, such excess will be paid to Contractor. If such costs exceed the unpaid balance,
Contractor will pay the difference to City. This obligation for payment will survive termination of
this Agreement.
9.4 NO WAIVER BY CITY. City's failure, at any time or times, to require strict
performance by Contractor of any provision of this Agreement will not waive, affect or diminish
any right of City thereafter to demand strict compliance therewith and performance thereof.
Any suspension or waiver by City of an Event of Default by Contractor under this Agreement
will not suspend, waive or affect any other Event of Default by Contractor under this Agreement
whether the same is prior or subsequent thereto and whether of the same or of a different type.
None of the undertakings, agreements, covenants, representations and warranties of
Contractor contained in this Agreement and no Event of Default by Contractor under this
Agreement will be deemed to have been suspended or waived by City, unless such suspension
or waiver is by an instrument in writing signed by City's Representative and directed to
Contractor specifying such suspension or waiver.
9.5 TERMINATION FOR CONVENIENCE. City may, at any time, terminate this
Agreement for City's convenience and without cause. Contractor shall be entitled to receive
payment for work: executed, and costs incurred by reason of such termination. Contractor is
not entitled to lost profits for work not executed following a termination for City's convenience.
9.6 WRONGFUL TERMINATION. In the event it is found that the City improperly
terminated this Agreement following an alleged default, the sole remedy available to Contractor
will be those remedies available following a Termination for Convenience.
10. INSURANCE AND INDEMNIFICATION
10.1 CONTRACTOR'S INSURANCE REQUIREMENTS.
10.1.1 Contractor will provide evidence of insurance with a carrier or carriers
satisfactory to City covering injury to persons and/or property suffered by City or a third party, as
a result of operations which arise both out of and during the course of this Agreement by
Contractor. This coverage will also provide protection against injuries to all employees of
Contractor engaged in Work under this Agreement. The delivery to City of a written thirty (30)-
Construction Agreement
Page 8 of 13
00617757
day notice is required before cancellation of any coverage or reduction in any limits of liability.
All insurance coverage procured by Contractor will be provided by insurance companies having
policyholder ratings no lower than "A" in the Best's Insurance Guide, in the latest edition in effect
as of the date of this Agreement, and subsequently in effect at the time of renewal of any
policies required by the Contract Documents.
10.1.2 Contractor will maintain in force at all times during the performance of Work
under this Agreement the following policies of insurance. Failure to maintain insurance may, at
the option of City, be deemed Defective Work and remedied in accordance with the Contract
Documents. Where specific limits and coverage are shown, it is understood that they will be the
minimum acceptable. The requirements of this paragraph will not limit the Contractor's
responsibility to indemnify under Paragraph 10,2,
10.1.2.1 Workers' Compensation Insurance: Contractor will provide and
maintain, for all employees of Contractor engaged in work under this Agreement, Workers'
Compensation insurance as required by AS 23.30,045, to include Employer's Liability
Protection in the amount of $1,000,000 per person/$1,000,000 per occurrence.
10.1.2.2 Comprehensive or Commercial General Liability Insurance will
cover all operations by or on behalf of Contractor and provide insurance for bodily injury and
property damage liability including coverage for: premises and operations, products and
completed operations, contractual liability insuring obligations assumed under Paragraph 10.2
broad form property damage and personal injury liability. The minimum limits of liability will be:
(1) If Contractor carries a Comprehensive General Liability policy,
the limits of liability will not be less than a Combined Single Limit for bodily
injury, property damage and Personal Injury Liability of $1,000,000 each
occurrence/$1,000,000 aggregate.
(2) If Contractor carries a Commercial General Liability policy, the
limits of liability will not be less than $1,000,000 each occurrence
(Combined Single Limit for bodily injury and property damage), $1,000,000
for Personal Injury Liability, $1,000,000 aggregate for Products -Completed
Operations and $1,000,000 general aggregate.
10.1.2.3 Automobile Liability Insurance: Such insurance will cover all
owned, hired and non -owned vehicles and provide coverage not less than that of the Business
Automobile Policy in limits not less than the following: $1,000,000 each occurrence (Combined
Single Limit for bodily injury and property damage).
10.1.3 Certificates of Insurance acceptable to City will be filed with City.
Certificates pertaining to Worker's Compensation, General Liability or Automobile Liability are
required for Award. Certificates for all other coverage will be provided before commencement of
the Work. Each Certificate of Insurance will contain the following statement: "This is to certify
that the policies described herein comply with all aspects of the insurance requirements of
Construction Agreement
Page 9 of 13
00617757
(Contract Name and Project Number)." Acceptance by City of a deficient Certificate of
Insurance does not constitute a waiver of any requirement of insurance in the Contract
Documents.
10.1.4 Contractor's insurance will be endorsed to provide that the insurers and
underwriters on all policies waive their right of subrogation against City. Except for workers'
compensation coverage described at 10.1.2.1, City will be named additional insured on all
policies.
10.2 INDEMNIFICATION. To the fullest extent permitted by law, Contractor will
indemnify, defend, and hold harmless City, its agents and employees from and against claims,
damages, losses and expenses, including, but not limited to, attorneys' fees, arising out of or
resulting from performance of the Work, provided that such claim, damage, loss or expense is
attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible
property including losses of use resulting therefrom, but only to the extent caused in whole or in
part by negligent acts or omissions of Contractor, anyone directly or indirectly employed by
Contractor or anyone for whose acts Contractor may be liable, regardless of whether or not
such claim, damage, loss or expense is caused in part by a party indemnified hereunder.
10.3 SURVIVAL. Contractor's insurance and indemnity obligations hereunder will
survive termination of this Agreement.
ifi1J1&11143401W--1:IX011K
11.1 INTEGRATION. The Contract Documents represent the entire and integrated
Agreement between the parties and supersede prior negotiations, representations or
agreements, either written or oral. The Contract Documents may be amended or modified only
by a written agreement signed by Contractor and City.
11.2 ASSIGNMENT. City has entered into this Agreement in reliance on Contractor's
unique abilities, and Contractor's obligations hereunder will for all purposes be regarded and
treated as personal services and will not be assignable by Contractor without City's prior written
consent.
11.3 INTERPRETATION. The rule of construction that terms of an agreement are
construed against the party that drafted the agreement will not apply to this Agreement.
11.4 INDEPENDENT CONTRACTOR. Contractor acts as an independent contractor
to City and is not an agent, partner or joint venturer of City in the performance of this
Agreement.
11.5 SUCCESSORS. Subject to the limitation on assignment in Paragraph 11.2, this
Agreement will be binding upon and will inure to the benefit of the respective heirs, successors,
and assigns of the parties hereto.
Construction Agreement
Page 10 of 13
OD617757
11.6 NOTICES. All notices to a party under this Agreement will be in writing and will
be delivered personally, or sent by certified mail, to the following address:
CITY OF SEWARD, ALASKA
James Hunt, City Manager
DATE:
ATTEST -
CIVIC, City Clerk
Date:
(City Seal)
KNIK CONSTRUCTION CO., INC.
By:/}
Its: we c
DATE: &J -
Construction Agreement
Page 11 of 13
00617752
KNIK CONSTRUCTION CO., INC.
CERTIFICATE OF SECRETARY
1, Everett H. Billingslea, certify that I am the duly elected, qualified and acting Secretary of Knik
Construction Co., Inc., a corporation organized and existing in good standing under the laws of the state
of Alaska (tile "Company") and further certify that pursuant to the Bylaws of the Company the Vice
President of the Company is, authorized and empowered to execute and deliver the Construction
Agreement between the City of Seward, Alaska and KNIK Construction a copy of which is allaclied
hereto as Exhibit A, and that the execution thereof shall be the official act and deed of this Company.
IN WITNESS WHEREOF, I have signed this certificate this 6,'h day of June, 2017.
..... ... .
Everett H. Billingslea
Secretary
1, Lynn Craft, Assistant Secretary of the Company, do hereby certify that Everett H.
Billingslea has been duly elected and has duty qualified as, and on this day is, tile Secretary of the
Company, and the signature above is his genuine signature.
IN WITNESS WHEREOF, I have signed this certificate this 6"' day of June, 2017.
Lynn40'
C1
Assistant Secretary
(SEAL)
APPENDIX A - DETAILED SCOPE OF WORK
00617757