HomeMy WebLinkAboutRES2025-081 Prism Design Construction - Hypochlorite Generator1
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Sponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2025-081
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONTRACT WITH PRISM DESIGN & CONSTRUCTION, LLC FOR THE
CONSTRUCTION OF THE SMIC WATER PUMPHOUSE ADDITION AND
HYPOCHLORITE GENERATOR PROJECT IN THE AMOUNT OF
$797,600.33 PLUS A 10% CONTINGENCY
WHEREAS, in August 2023 the City of Seward City Council approved Resolution 2023-
092 accepting the Alaska Department of Environmental Conservation (DEC) Alaska Drinking
Water State Revolving Fund (DWSRF) loan of $476,0000 with loan forgiveness of $238,000 for
the SMIC Hypochlorite Generator Project; and
WHEREAS, the City of Seward requested additional financial assistance to complete the
construction of the SMIC Water Pumphouse Addition and Hypochlorite Generator Project by
increasing the loan from the State of Alaska DEC DWSRF, which was accepted, offering the city
a $600,000 loan with a forgiveness of $600,000; and
WHEREAS, an RFP for construction of the project was advertised and completed,
resulting in one bid submission from a qualified firm, Prism Design & Construction LLC; and
WHEREAS, Prism Design & Construction LLC bid the project at a cost of $797,600.33
to which the City sent a "letter of intent to award" pending City Council approval.
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 Prism
Design & Construction LLC in the amount of $797,600.33, with a 10% contingency, for a total
not to exceed $877,360.36.
Section 2. Funding in the amount of $877,360.36 is hereby appropriated from the
Wastewater Enterprise Fund account number. 17332-0000-8101 Infrastructure Expense Account.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 25th
day of August 2025.
THE CITY OF SEWARD, ALASKA
Sue McClure, Mayor
CITY OF SEWARD, ALASKA
RESOLUTION 2025-081
Page 2 of 2
AYES: Osenga, Barnwell, Crites, Warner, Wells, McClure
NOES: None
ABSENT: Finch
ABSTAIN: None
ATTEST:
Kris Peck
City Clerk
City Council Agenda Statement
Meeting Date: August 25, 2025
To: City Council
Through: Kat Sorensen, City Manager
From: Doug Schoessler, Public Works Director
Subject: Resolution 2025-081: Authorizing the City Manager to Enter into a
Contract with Prism Design & Construction, LLC for the Construction of
the SMIC Water Pumphouse Addition and Hypochlorite Generator Project
in the Amount of $797,600.33 Plus a 10% Contingency
Background and justification:
The current SMIC water treatment system uses chlorine gas cylinders in the SMIC water
pumphouse. The declining availability of cylinders and hazards of chlorine gas necessitates the
City to change to a hypochlorite generator, the same system already installed at the North Seward
Water Plant Facility. CRW Engineering designed and engineered the system and building add -on
for the SMIC water pumphouse.
The City Council passed Resolution 2023-092 authorizing a loan from the Alaska Drinking Water
Fund loan of $476,0000 with an estimated principal forgiveness of $238,000 for the SMIC
Hypochlorite Generator Project for the design and construction.
A bid for the construction project was advertised and completed. We received one bid from Prism
Design & Construction LLC, for $797,600.33. Prism Design & Construction LLC was the sole
bidder and was sent a "letter of intent to award" pending City Council approval.
To cover the additional costs of construction, the City of Seward requested additional financial
assistance to complete the construction of the SMIC Water Pumphouse Addition and Hypochlorite
Generator Project by increasing the loan from the State of Alaska Department of Environmental
Conservation Drinking Water State Revolving Fund, which was accepted, offering the City an
additional $600,000 loan with a forgiveness of $600,000.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 13.1 Water
Strategic Plan:
Other:
2025-2026 Capital Improvement Plan
Total amount of funds listed in this legislation:
This legislation (✓):
Creates revenue in the amount of:
Creates expenditure in the amount of:
Creates a savings in the amount of:
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
Not budgeted
Not applicable
Affected Fund (✓):
General
Boat Harbor
Motor Pool
Available Fund Balance
SMIC
Parking
Other
Electric
Water
$
Wastewater
Healthcare
Note: amounts are unaudited
Finance Director Signature:
'I- 9""t.'
Yes
Attorney Signature:
Not applicable Comments:
Administration Recommendation
Adopt Resolution
Other:
CITY OF SEWARD, ALASKA
SMIC HYPOCHLORITE GENERATOR PROJECT
CONTRACT
THIS CONTRACT is between City of Seward, Alaska (hereinafter called OWNER), and
PRISM DESIGN & CONSTRUCTION, LLC
(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 specified or indicated in the Bid and
Contract Documents. The Work is generally described as follows:
Furnish and install building addition to the existing Generator Building;
furnish and install a sewer service and drain field; furnish and install
hypochlorite generator and appurtenances; and other miscellaneous
items of work.
2. CONTRACTING OFFICER & ENGINEER
2.1. KAT SORENSEN, 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 authority to
make findings, determinations and decisions with respect to the Contract and,
when necessary, to modify or terminate the Contract.
2.2. PETE BELLEZA, P.E. is hereinafter called
ENGINEER and is to act as OWNER's representative, assume duties and
responsibilities, and have the rights and authority assigned to ENGINEER 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:
3.1.1. Work shall be completed and ready for final payment and
acceptance in accordance with Article 11 of the City of Seward General
Conditions no later than 210 Calendar Days after Notice to Proceed.
3.1.2. CONTRACTOR shall achieve Substantial Completion no later than
180 Calendar Days after Notice to Proceed.
3.2. Liquidated Damages:
OWNER and CONTRACTOR recognize that time is of the essence of this
Agreement and that OWNER will suffer financial loss if the Work is not
completed within the times specified in paragraph 3.1. Contract Times
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above, plus any extensions thereof allowed in accordance with Article 11
of the City of Seward General Conditions. OWNER and CONTRACTOR
also recognize the delays, expense, and difficulties involved in proving in a
legal or other dispute resolution proceeding the actual Toss suffered by
OWNER if the Work is not completed on time. Accordingly, instead of
requiring any such proof, OWNER and CONTRACTOR agree that as
liquidated damages for delay (but not as a penalty) CONTRACTOR shall
pay OWNER $500.00 per day for each calendar day elapsing between the
time stipulated for the Substantial Completion Date and/or $250 per day
for each calendar day elapsing between the time stipulated for Final
Completion Date and the actual date completed in accordance with the
terms hereof.
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:
SEVEN HUNDRED NINETY-SEVEN THOUSAND SIX HUNDRED Dollars
(Words)
and THIRTY-THREE Cents $797,600.33
(Words) (Numbers)
At no time will any provisions of this Agreement make the OWNER or its
representatives liable for payment for performance of work under this Agreement
in excess of the amount that has been appropriated by the Seward 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 as set forth as follows:
5.1. CONTRACTOR has familiarized itself with the nature and extent 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 CONTRACTING
OFFICER 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.
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6, INSURANCE
The CONTRACTOR shall maintain insurance to these minimum levels:
6.1. 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 the negligence entirely attributable to
the City or its agents.
6.2. 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.
6.3. 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 shall be required to defend,
indemnify, and hold harmless the OWNER and its officers, employees and
engineers from all damage, Toss, injury, or proceedings of any kind in connection
with the performance or activities of the CONTRACTOR, except for damage,
Toss, or injury resulting from the OWNER's sole gross negligence or willful
misconduct.
7. MINIMUM WAGE RATES
CONTRACTOR shall ensure that wages paid are the higher of the State or
Federal wage rate on a classification by classification basis for the SMIC
Hypochlorite Generator project. Both prevailing wages 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 1I
of Title 40, U.S.C. (commonly referred to as the "Davis Bacon Act") apply.
8. EQUAL EMPLOYMENT OPPORTUNITY
CONTRACTOR shall 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).
9, INDEMNIFICATION
CONTRACTOR agrees to indemnify, defend and hold harmless OWNER
(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.
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10. 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.
11. 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.
12. REMEDIES OF DEFAULT
The OWNER 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 OWNER
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.
13. 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 or& or
written understandings are hereby extinguished.
14. CONTRACT DOCUMENTS
14.1. The Contract Documents which comprise the entire Agreement between
OWNER and CONTRACTOR concerning Work are defined in Article 1 of the City
of Seward General Conditions.
14.2. Except for the Notice to Proceed, and Addenda, these Contract
Documents are also listed in the Table of Contents and are bound in one volume,
identified as Specifications and Contract Documents.
14.3. Drawings are under separate cover.
14.4. Addenda numbers to , inclusive.
14.5. Exhibits to this Agreement include:
14.5.1. Conformed Bid Form signed by CONTRACTOR.
14.5.2. Executed Payment Bond in the amount of 100% of the Contract
Amount
14.5.3. Executed Performance Bond in the amount of 100% of the
Contract Amount
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14.5.4. Alaska Contractor Certificate of Registration
14.5.5. Alaska Business License
14.5.6. City of Seward Business License
14.5.7. Certificates of Insurance with Endorsements
14.5.8. Kenai Peninsula Borough Tax Compliance Certificate
14.5.9. Documents submitted by CONTRACTOR prior to execution of
Agreement
15. MISCELLANEOUS
15.1. No assignment 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 any written
consent to an assignment, no assignment will release or discharge the assignor
from any duty or responsibility under the Contract Documents.
15.2. OWNER and CONTRACTOR each binds 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.
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--v
IN WITNESS WHEREOF, OWNER and CONTRACTOR have signed 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: PRISM DESIGN &
>
CONSTRUCTION, LLC
By: S'e r1 s ✓� By:. 1UST11.3 lam. ZASS ELL -
Title: C Mit IM G v1 ct9e4_ Title: ,6*-- a\gparetir
Date: 7' / 41- 2025
Date: eVa�"!a�
ATTEST:
.••...1 OF SEL •,,.
[City Seal] ` SEAL ° } • _[Corporate seal]
•.
—._ s• •
., �'
Address for givingn s .��''�F.....0, - .` Address for giving notices
PO B O>c I (o'i
S2wm- D NIA c g Q QL
(Attach evidence of authority to sign and
resolution of other documents
authorizing execution of Agreement.)
Po So 11Q2
l�ag�l�a 99 w yj
License No.
Agent for service of process:
(If CONTRACTOR is a corporation,
attach evidence of authority to sign.)
END OF SECTION
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