HomeMy WebLinkAboutRES2026-029 T Bailey - Water Tank StorageSponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2026-029
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,
AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH T
BAILEY, LLC FOR THE CONSTRUCTION OF A NEW 500,000-GALLON WATER
STORAGE TANK FOR AN AMOUNT NOT TO EXCEED $2,853,300
WHEREAS, the Lowell Canyon water storage tank is essential to the water supply for the City of
Seward; and
WHEREAS, the project will include demolishing and removing the existing 200,000-gallon water
storage tank and constructing and a new 500,000-gallon tank at the same site; and
WHEREAS, the City Council passed Resolutions 2022-025, 2022-05, and 2024-069, authorizing
the use of American Rescue Plan Act (ARPA) grant funds for water infrastructure improvements;
and
WHEREAS, the City Council passed Resolution 2024-004, accepting State of Alaska Department
of Environmental Conservation Drinking Water Fund, State Revolving Fund Loan of $1,905,000
with loan forgiveness of $1,500,000; and
WHEREAS, CRW Engineering Group, Inc., completed the engineering and bid documents for
the 500,000-gallon water tank, and this project was put out to competitive bid on February 28,
2026, with a bid opening on March 9, 2026; and
WHEREAS, T Bailey, LLC, provided the lowest responsive bid of $2,853,300 for the project
construction.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA:
Section 1. The City Council hereby authorizes the City Manager to enter into a contract T Bailey,
LLC for a total sum not to exceed $2,853,300, for construction services on materially the same
terms as in the bid documents including the Contract Agreement attached as Exhibit A and reserve
a minimum of 10% construction contingency for the project.
Section 2. Funding in the amount of $2,853,300 is hereby transferred and appropriated as follows:
Funding in the amount of $948,300.00 is hereby appropriated from the ARPA Funds as
follows:
SOA-DCCED (NEU) Funds of $113,333.65 account 17000-4000-8101-0080
Funds of $113,333.65 account 18000-4500-8101-0080
CITY OF SEWARD, ALASKA
RESOLUTION 2026-029
SOA-DCRA (LGLR): Funds of $721,632.70 account 80084-0000-8101
SOA-DEC-Division of Water Grant Fund: Funds of $1,905,000.00 account 17333-0000-
8101
Section 3. This resolution shall take effect immediately upon adoption.
APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 23rd
DAY OF MARCH 2026.
Sue McClure, Mayor
AYES: Warner, Barnwell, Crites, Osenga, Draper, Calhoon, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Kris Peck
City Clerk
City Council Agenda Statement
Meeting Date: March 23, 2026
To: City Council
Through: Kat Sorensen, City Manager
From: Doug Schoessler, Public Works Director
Subject: Resolution 2026-029: Authorizing the City Manager to Enter into a Contract
with T Bailey, LLC for the Construction of a New 500,000-Gallon Water
Storage Tank for an Amount Not to Exceed $2,853,300
Background and justification:
The pre-1980 water tank was inspected in 2011 and found to be in poor condition. Refurbishing
the tank would cost more than a replacement. This tank is essential to Seward's water storage
capacity, and its failure would jeopardize the city's water supply.
The City Council passed Resolutions 2022-025, 2022-05, and 2024-069, authorizing the use of
American Rescue Plan Act (ARPA) grant funds for water infrastructure improvements.
The City Council passed Resolution 2024-004, accepting SOA Department of Environmental
Conservation Drinking Water Fund State Revolving Fund Loan of $1,905,000 with loan
forgiveness of $1,500,000.
CRW Engineering completed the engineering for the water storage tank, and the project was
advertised for competitive bidding. Bids were opened on March 09, 2026. T Bailey, LLC
submitted the lowest bid of $2,853,300 which was reviewed and found to be accurate, complete,
and responsive.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 13.1 Water
Strategic Plan:
Other:
Page 10-Development Infrastructure and Utility
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
X
$ $2,853,300
$
$ $2,853,300
$
Funds are (✓):
Budgeted 17000-4000-8101 / 18000-4500-8101 / 80084-0000-8101 /17333-0000-
Line item(s): 8101
X
Not budgeted
Not applicable
Affected Fund (V):
General
Boat Harbor
Motor Pool
SMIC
Parking
Other
Electric
Water
Wastewater
Healthcare
Note: amounts are unaudited
Available Net Position as of 12.31.2025 (unaudited) $ 11,100,789.57
Yes Attorney Signature:
Not applicable Comments:
Finance Director Signature:
Attorney Review
Administration Recommendation
Adopt Resolution
Other:
CITY OF SEWARD, ALASKA
LOWELL CANYON WATER STORAGE TANK
CONTRACT
THIS CONTRACT is between City of Seward, Alaska (hereinafter called OWNER), and
T BAILEY, 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:
Demolishing an existing 200,000-gallon water storage tank; furnishing
and installing a new 500,000-gallon water storage tank; and other
miscellaneous items of work.
2. CONTRACTING OFFICER & ENGINEER
2.1. DOUG SCHOESSLER, CITY OF SEWARD — PUBLIC WORKS
DIRECTOR 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 BELLEZZA, CRW ENGINEERING GROUP 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 300 Calendar Days after Notice to Proceed.
3.1.2. CONTRACTOR shall achieve Substantial Completion no later than
280 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 Toss if the Work is not
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completed within the times specified in paragraph 3.1. Contract Times
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 loss 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:
TWO MILLION, EIGHT HUNDRED FIFTY-THREE THOUSAND, THREE
HUNDRED Dollars
(Words)
and ZERO
Cents $2,853,300.00
(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
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STORAGE TANK
generally sufficient to indicate and convey understanding of terms and conditions
for performing and furnishing Work.
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, 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.
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 Lowell
Canyon Water Storage Tank 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 II
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
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STORAGE TANK
favor of third parties and arising out of or relating to this Agreement of the
performance of any Work or obligations hereunder.
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 oral 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 01 to 03 , 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
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14.5.3. Executed Performance Bond in the amount of 100% of the
Contract Amount
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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IN WITNESS WHEREOF, OWNER and CONTRACTOR have signed 1 copie(s) of
this Agreement. All portions of the Contract Documents have been signed or identified
by QWNE CONTRACTOR.
OWNER- City of Seward, Alaska CONTRACTOR: T BAILEY, LLC
By: KAT SORENSEN By: JUSTIN RAWLS
Title: CITY MANAGER Title: VICE PRESIDENT
Date: .3 a, Ciz C Date:
ATTEST: 7;11/
[City Seal] V •J•' So rFo . % [Corporate seal]
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=• SEAL
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Address for giving notices Address for giving notices
City of Seward — Public Works
PO BOX 167
SEWARD, AK 99664 License No.
(Attach evidence of authority to sign and Agent for service of process:
resolution of other documents
authorizing execution of Agreement.)
(If CONTRACTOR is a corporation,
attach evidence of authority to sign.)
END OF SECTION
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