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HomeMy WebLinkAboutRes2021-057 RESCINDED June 28, 2021 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2021-057 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR UP TO 18 MONTHS WITH RSR CONTRACTING, LLC FOR TRANSMISSION RIGHT-OF-WAY CLEARING WORK,WITH THE CONTRACT BASED UPON A PER-MILE COST NOT TO EXCEED $500,000 OVER THE DESIGNATED PERIOD, AND APPROPRIATING FUNDS. WHEREAS,the Electric Department has requested up to $500,000 for a contract to have targeted sections of its transmission line right-of-way cleared for service reliability and public safety purposes; and WHEREAS, the contract will be for 18 months beginning in May 2021 and ending October 2022 or until assigned work is completed, whichever comes first; and WHEREAS,the Electric Department completed a Request for Proposal and selected RSR Contracting, LLC from six submitted bids; and WHEREAS, RSR Contracting, LLC received the highest score in the grading process among bidders based on price, experience, quality of work, qualifications, references, and additional right-of-way maintenance services, and WHEREAS, some sections of Seward Electric's transmission right-of-way are in extremely poor condition with some trees in danger of starting a forest fire hazard, as well as other public safety concerns; and WHEREAS, the targeted right-of-way sections in their existing condition also present considerable service reliability issues. 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 RSR Contracting, LLC for a total amount not-to-exceed $500,000 over an 18-month period for right- of-way clearing work along transmission line corridors. Section 2. Funding in the amount of$350,000 is hereby appropriated in the 2021 budget from Electric reserves account no. 15000-0000-3400 to contracted services account no. 15000-3004-7009. Section 3. The 2022 budget will include $150,000 in contracted services account no. 15000-3004-7009 for the remainder of the contract. CITY OF SEWARD,ALASKA RESOLUTION 2021-057 Section 4.This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10th day of May,2021. T . ' Ii. OF SEWARD,ALASKA A� i Christy Ter , Ma or AYES: Osenga, McClure,Casagranda, DeMoss, Seese, Baclaan,Terry NOES: None ABSENT: None ABSTAIN: None ATTEST: Brenda J. Ballou, MMC City Clerk A c t 7,1 9 C t Y Cleric" (City Seal) �•;*y Of.SE4;q.,�% . 4 0 t ` • = SEAL q �`'• E OF lx Q' .•'• Agenda Statement Meeting Date: May 10, 2021 To: City Council Through: Acting City Manager Norm Regis .-Z From: Rob Montgomery, Electric Department Director Agenda Item: Following a Request for Proposal, the Seward Electric Department recommends entering into an 18-month contract not-to-exceed $500,000 with RSR Contracting,LLC for transmission right-of-way clearing services. BACKGROUND & JUSTIFICATION: The City of Seward Electric Department is responsible for clearing and maintaining approximately 32 miles of high voltage transmission line right-of-way. While most of this right-of-way is satisfactory,there remains a five-mile section between MP 18 and MP 23 of the Seward Highway where the vegetation growth is significant because it has not been cleared in more than 25 years. There are other smaller sections along the Seward Highway and Nash Road where extensive clearing work is needed, and some individual trees need to be taken down. As they exist today, these targeted sections and their vegetation create significant system reliability issues,as experienced in the November 2020 ice storms.They also present significant public safety concerns, particularly the risk of starting a forest fire. Many of the trees in and adjacent to the right-of-way are tall enough to come in contact with the lines during windy conditions. There are some trees with brown discoloration from brushing against the lines already. We feel fortunate a forest fire did not occur in 2019,when weather conditions for the region were extremely dry and forest fires were prevalent across the peninsula and the state Our intent is to use a contractor over the next 18 months beginning in May 2021 to get right-of- way clearing along transmission corridors up to date. Once completed,the right-of-way areas will be much easier to maintain and much less costly. Based on discussions with other railbelt utilities, a typical per mile cost to maintain transmission line rights of way in Alaska ranges between $15,000 to $20,000 per mile. Because of the poor condition of the sections mentioned, we will be paying more than double that amount for some sections and more than triple for others. RSR Contracting was selected through an RFP and received the best overall score in the grading process, which evaluated each bidder on price, experience, quality of work, qualifications, references, and additional right-of-way maintenance services. INTENT: To improve service reliability and public safety by authorizing the city manager to enter into a contract with RSR Contracting, LLC for right-of-way clearing services along assigned sections of transmission line corridors CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (L 3, 3. 7. 3. 1, 3. 7. 3. 2) Continue to upgrade 1. and expand utilities to meet existing needs and encourage future X development. 2 Strategic Plan:The mission of the City of Seward government is to X provide quality leadership and economic wellbeing of its citizens 3. Other(list): X FISCAL NOTE: A not-to-exceed amount of$500,000 over 18 months will be appropriated for this contract. The 2021 budget will be amended to appropriate$350,000 and the 2022 budget will factor in $150,000, both to contracted services line item 15000-3004-7009. Approved by Finance Department: ATTORNEY REVIEW: Yes No RECONEUENDATION: Council approve Resolution 2021-057 —, authorizing the city manager to enter into a contract with RSR Contracting, LLC for transmission rights of way clearing services with the intent to improve service reliability and public safety in an amount not-to-exceed$500,000 over 18 months beginning in May 2021. CITY OF SEWARD City Manager's Office 1'.0.Box 167 _ 907.224 40-17 907.224.4038 fax I10 Adarns strect cimn_,9-@cipyulseNNartlmet Seward,Alaska 99664 PROFESSIONAL SERVICES CONTRACT RIGHT-OF-WAV CLEARiNG SERVICES CITY OF SEWARD SEWARD,ALASKA TH1S original CONTRACTmadeon the l2thof May,2021 betweenthe CITY OF SEWARD, ALASKA (the "City"), acting by and through the City Manager or other City authorized representative(its"Contracting Officer")and RSR Contracting,LLC,its successors and assigns(the"Contractor")as follows: The Contractor,forand in consideration of the paymentorpayments herein specified andagreedto by the parties,hereby covenants anda grees to furnish all equipment,material,and laborrequuedtoconipleLe the WORK accordingto the attached STATEMENT OF WORK. The Conuacwrfurtheragreestobeboundby all representationsofthe Contractor in the Contractand take all necessary steps to remain in compliance with all such representations. The Contractor hereby agrees that the tim e andm aterials,n ot-to-ex ceed price set forth below,is full compensation for- furnishing allequipment,material,a nd la borwhich may be required in the prosecution and completion ofthe whole work to be done under this Contract no later than October 31, 2022 and in all respects to complete the Contract to the satisfaction of the City. Labor and reimbursable rateswhich Contractorwill charge City are described in Exhibit A. Any m odification of such rates shall not be effective unless agreed to in writing and signed by both patties hereto. Exhibit A and subsequent revisions thereto as executedby both parties are hereby incorporated into this Agreem ent by this reference. The Contract payment shall not exceed five-hundred thousand dollars($500,000)for a ll items over an 18-month period beginning in May 2021 and concluding in October 2022.Payment will be made every two weeks upon receipt and approvalof an invoice forwork accomplished in accordancewith the attached STATEMENT OFWORK. The amounts payable to Contractor shall not exceed thcsums identified in this paragraph without the prior written approval of the City. The Contractor shall procure and maintain during the life of this contract,Worker's Compensation insurance, in c lu ding Employer's Liability Coverage,in accordance with all applicable statutes of the State of Alaska. The Contractor shall procure and maintain during the life ofthis contract,Commercial General Liability insurance on an "Occurrence Basis"with limits of liability not less than$2,000,000 per occurrence and/or aggregate combined single limit, Persona I Injury,Bodily Injury and Property Damage. Coverage shall include the followingextensions:(A)Contractual Liability;(B)Products and Completed Operations;(C)Independent Contractors Coverage; (D)Broad Form General Liability Extensions or equivalent; (E) Deletion of all Explosion, Collapse and Underground (XCU)Exclusions, if applicable;(F)Per con tractaggregate. The Contractor shall procure and maintain through contract life Motor Vehicle Liability Insurance,includin g applicable No-Fault coverages,with limits of liability not less than$1,000,000 peroccurrence combined single limit B o dily Injury and Property Damage. Coverage shall include all owned vehicles,all non-owned vehicles,anda11 hired vehicles. The following shall be Additional Insureds on the General Lia bility andMotor Vehicle Lia bility Insurance:The City of Seward,including all elected and appointed officials,all employees and volunteers,all boards,commissions and/or authorities and their board members,employees, and volunteers. This coverage shall be primary to the Additional Insureds,and not contributingwith a ny other insurance or similarprotection.available to the Additional Insureds,whether other av ailab le coverage b e primary,contributing or excess. Worker's Compensation Insurance,Commercial genera I Liability Insurance and Motor Vehicle Liability Insurance, as described above, shall include an endorsement stating the following: "Thirty(30)days Advanced Written Notice of Cancellation,orNon-renewal,orAmendment shall be sent to: City of Seward,Engineering Department,P.O. Box 167, Seward,AK 99664. Seward Electric—Right-of-Way Clearing Page I of-2 The Contractor shall provide the City of Seward at the time contracts are returned for execution,Certificates of insurance and/or policies,acceptable to the City of Seward,as listed below: a. One(1)copy of Certificateof Insurance for Workers Compensation Insurance; b. One(1)copy of Certificateof insurance for Commercial General Liability insurance; c. One(1)copy of Certificateof Insurance for Vehicle Liability Insurance; e. if so requested,Certified Copies of allpoheies shallbe furnished. If any of the above coverages expire during the term of this contract, the Contractor shall deliver renewal certificates and/or polices to the City of Seward at least ten (10)days prior to the expiration date. To the fullest extent permitted bylaw,RSR Contracting,LLC agrees to defend,indemnify and hold harmless the City of Seward,its elected and appointed officials,employees,insurers andvo lunteers against any andall liabilities, claims, demands,lawsuits,or losses,including costs and attorney fees incurred hid efense thereof,arising o u t of orin any way connected or associated with this contract. T1ie Contractor further covenants and agrees that all of the work and labor shall be done and performed in the best and most workmanlike manner and that all material and labor shall be in strict and entire conformity in every respect with the governing standards and practices of the industry and if any Work shall be rejected by the Contracting Officer as defective or unsuitable, then such Work shall be corrected to the satisfaction of the Contracting Officer,at the cost and expense of the Contractor. The Contractor further covenants and agrees that the tasks outlined in Attachment A will be done to the complete satisfaction of the City,and in accordance with the laws of the State of Alaska andthe City of Seward. it is specifically understood andagreed that no claim foradditional work orm aterials,done orfumishedby the Contractor- and not specifically provided forherein,will be allowed by the Contracting Officer,norshallthe Contractor do any work or furnish any material not covered by this Contract,unless such work is ordered in writing by the Contracting Officer. In no event shall the ContracLorassert any cla ims againstthe City by reason of verbal directions orinstructions given by the Contracting Officerorhis representatives,norwill the City be liable forany material furnished orused,orforanywork or labordone,un less the materials,work,orlaborare required by the Contract oron written orderfirst b ein g giv en by th e Contracting Officer. Any such work or rn a terials which m a y be done or turn ished by the Contractor without written order first being given shallbe at the Contractor's own risk,cost,and expense andthe Contractorhereby covenants and agrees to make noclaim for compensation forwork ormaterials done or furnished Mthoutsuchwritten order. The Contractorm aynot assign orsubcontract pert-on-nance of this Contract,without written approva I by the City. The Contractoris an independent contractor and is not an employee oragent of theCity. Claims by the City resulting from Contractor's failure to comply with the terms of and specifications o f th is Agreem ent and/or default hereunder may be recovered by City by withholding the amount of such claims from compensation otherwise due Contractor forwork performed ortobeperformed. City shall notify Contractor of any such failure,default or damage therefi-om as soon as practicable after discovery of such eventby written notice. Nothing provided herein shall be deemed as constituting an exclusive remedy on behalf of City,nora waiver of anyotherrights hereunder at law Orin equity. The venue of any legal action between theparties arising as a result of this Agreement shall be laid in the Third Judicial District of the Su perior Court of the State of Alaska,at Seward,Alaska unless a non-waivable federal or state law requires otherwise.This Agreement sh a l l be in terpreted in accordance with the laws of the State of Alaska. No failure on the party of the City to enforce any covenant orprovision herein contained,nor any waiver of any right hereunder by City,unless in writing and signed by the parties sought to be bound,shall discharge or invalidate such covenants or provisions or affect the right of the City to enforce the same or any other provision in the event of any sub sequentbreach or default. The terms,conditions and covenants containedin this Agreement shall apply to,inure to the benefit of, andbind the parties and their respective successors. This Agreement constitutes the entire agreement between the parties with respect to the subject matter h ereof,an d a ll prior negotiations and understandings are superseded and replaced by this Agreement and shall be of no further force and effect. No modification of this Agreementshallbe of any force oreffecL unless reduced to writing,signed by both parties and expressly made a part of this Agreement. Seward Electric—Right-of-Way Clearing Page 2 of 3 IN WITNESS WHEREOF the parties hereto have executed this Agreement,effective th e day and year first a bovewritten. CITY OF SEWARD,ALASKA RSR C nt(((racting,LLC City Manager Principal ATTEST: Brenda Ballou City Clerk (Seal) Attachments: A. Statement of%d< Seward Electric—Right-of-Way Clearing Page 3 of 3 RSR Contracting LLC Po Box 1432 Valdez, AK 99686 Total price estimate*: Example. 1) COST for 1 Acre: on a 1-acre area. After access to ROW is established. $ 500.00 MOB to access ROW. Findings. Mix of Brush and Timber with areas of no machine access. Worst case scenario. Math: Estimating conditions with the help of drone footage and visual inspections for 1 acre: Approx. 30%heavy timber/40% Brush/and 50%of the whole area is inaccessible for equipment. Cost projection to the client$ 2.250.00 machine work plus $ 2,250.00 Hand work. Total cost for 1 acre of this type of terrain is$ 5,000.00. per acre. Example 2) Cost for 1 Acre: $2,883.00 on a 72.72-acre area After access to ROW is established. $ 500.00 MOB to access ROW uninterrupted for 5 miles per machine. 26,400 feet of ROW/120 feet wide=72.72 acre Findings. 90°% Brush-14-foot-tall older brushes/10%Timber. Cost projection to the client$ 209,706.40 Math: Mob 500, 2 machines total $ 1,000.00/90% brush 2,520.00 per acre/10%Timber 3,500.00 per acre/72.72 acres: Cost projection to the client$ 2,883.00 per acre. A few words regarding the helicopter footage . If the clearing shall start at the 5 min mark on the video, we might ask to access the ROW at the 4.39 mark to work toward the 5 min mark to where the ROW drops of steep down to the highway, the last pole before the highway is a hand clearing area only.