HomeMy WebLinkAboutRES2026-038 Metco Alaska - Elm St Water MainSponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2026-038
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,
AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT FOR THE
CONSTRUCTION OF THE ELM STREET WATER MAIN REPLACEMENT WITH
METCO ALASKA, LLC FOR AN AMOUNT NOT TO EXCEED $263,736 PLUS A 10%
CONTINGENCY
WHEREAS, the City Council passed Resolution 2025-065, accepting State of Alaska Department
of Environmental Conservation Drinking Water Fund State Revolving Fund Loan of $400,000
with loan forgiveness of $400,000; and
WHEREAS, on November 17, 2025, City Council passed Resolution 2025-114 authorizing CRW
Engineering, Group, Inc., for design, engineering, project management, and construction to replace
the existing galvanized water main on Elm Street; and
WHEREAS, CRW Engineering Group, Inc., completed the engineering and bid documents for
the Elm Street Water Main Replacement, and this project was put out to competitive bid on March
16, 2026, with a bid opening on April 16, 2026; and
WHEREAS, METCO Alaska, LLC, provided the lowest responsive bid of $263,736 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 a contract with Metco
Alaska, LLC for a total sum not to exceed $263,736.00, 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 $290,109.60, including the 10% contingency, is hereby
transferred and appropriated on the Elm Street Water Main Replacement Fund on the infrastructure
expense account 17335-0000-8101.
Section 3. This resolution shall take effect immediately upon adoption.
APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 27th
DAY OF APRIL 2026.
K
Sue McClure, Mayor
CITY OF SEWARD, ALASKA
RESOLUTION 2026-038
Page 2 of 2
AYES: Osenga, Warner, Calhoon, Barnwell, Draper, McClure
NOES: None
ABSENT: Crites
ABSTAIN: None
ATTEST: y/ —Z� 1/6'.--------
Kris Peck
City Clerk
City Council Agenda Statement
Meeting Date: April 27, 2026
To: City Council
Through: Kat Sorensen, City Manager
From: Doug Schoessler, Public Works Director
Subject: Resolution 2026-038: Authorizing the City Manager to Enter into a Contract
for the Construction of the Elm Street Water Main Replacement with Metco
Alaska, LLC for an Amount Not to Exceed $263,736 Plus a 10%
Contingency
Background and justification:
This Public Works project at Elm Street will replace the galvanized water main with ductile iron
or C-900 pipe. In conjunction with the lead and copper pipe project, this removes a galvanized
water main, which will reduce leaks and improve distribution flow issues.
On July 14, 2025, the Seward City Council passed Resolution 2025-065, accepting State of Alaska
Department of Environmental Conservation, Drinking Water Fund State Revolving Fund Loan of
$400,000 with loan forgiveness of $400,000 for this project.
CRW Engineering completed the engineering, and the project was advertised for competitive
bidding on March 16, 2026.
Bids were opened on April 16, 2026. Metco Alaska, LLC submitted the lowest bid of $263,736,
which was reviewed and found to be accurate, complete, and responsive.
IM 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:
X
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s): Funding from the State Revolving Fund Loan/grant
Not budgeted
$ 290,109.60
$
$ 290,109.60
$
X
Not applicable
Affected Fund (✓):
General
Boat Harbor
Motor Pool
Net Position as of 12.31.25
SMIC
Parking
Other
X
Electric
Water
Wastewater
Healthcare
Note: amounts are unaudited
$ 3,835,902.06
Finance Director Signature:
Yes Attorney Signature:
Not applicable Comments:
Attorney Review
Administration Recommendation
Adopt Resolution
Other:
CITY OF SEWARD
P.O. BOX 167
SEWARD, Al ASKA 99664 0167
April 28, 2026
Cole Petersen, Owner
Metco Alaska, LLC
2701 Seward Highway
Seward, Alaska 99664
Notice to Proceed
• Main Office (907) 224-4050
• Public Works (907) 224-4058
• Water & Sewer (907) 224-4094
• Fax (907) 224-5051
ELM STREET WATER MAIN REPLACEMENT
Dear Mr. Petersen,
On behalf of the City of Seward Public Works Department, please accept this Notice to Proceed as notification that your
proposal for the Elm Street Water Replacement project was approved for contract at the Seward -City Council meeting on
April 27, 2026.
A copy of the contract is attached to your signature.
Please submit the following information within 10 days of this notification to finalize the contract and initiate a purchase
order.
1. Return signed contract
2. Payment Bond
3. Performance Bond
4. Certificate of Insurance
5. Kenai Peninsula Borough Tax Compliance Certification
6. Current Alaska Contractors license, Alaska Business License & City of Seward Business License
Once the contract is finalized, all pay requests for this project shall be emailed to Naneth Ambrosaini, at
ambrosiani@cityofseward.net, and the City of Seward Public Works Director/Project Manager, Doug Schoessler at
doug@cityofseward net for approval. Payment requests require certified payrolls, which need to be submitted with the
pay request monthly.
Please let us know if you have any questions or concerns.
Doug Schoessler
Public Works Director
City of Seward
CITY OF SEWARD, ALASKA
ELM STREET WATER MAIN REPLACEMENT
CONTRACT
THIS CONTRACT is between City of Seward, Alaska (hereinafter called OWNER), and
METCO ALASKA, 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:
Furnishing and installing 590 feet of 6-inch ductile iron pipe water main,
two 6-inch gate valves, and three 1-inch water services; temporary water
system; 240 feet of decommission pipeline in place; traffic maintenance;
restoration of all affected roadways; and other miscellaneous items of
work.
2. CONTRACTING OFFICER & ENGINEER
2.1. DOUG SCHOESSLER, PUBLIC WORKS DIRECTOR/PROJECT
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. CRW ENGINEERING GROUP, INC. 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 105 Calendar Days after Notice to Proceed.
3.1.2. CONTRACTOR shall achieve Substantial Completion no later than
90 Calendar Days after Notice to Proceed.
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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
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 HUNDRED SIXTY THREE THOUSAND AND SEVEN HUNDRED THIRTY
SIX Dollars
(Words)
and ZERO Cents $263,736.00
(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.
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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.
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 Toss 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 Elm Street
Water Main Replacement 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.
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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.
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.
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14.3. Drawings are under separate cover.
14.4. Addenda numbers 1 to 1 , 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
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 copies) of
this Agreement. All portions of the Contract Documents have been signed or identified
by OWNER and CONTRACTOR.
OWNER City of Sward, Alaska
eT SOREN E-N
By: , 1�
cell
Title: CITY MANAGER
Date:
ATTEST:
[City Seal)
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OFSEwq
SEAL • •
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Address for ivinr
eOF A
(Attach evidence of authority to sign and
resolution of other documents
authorizing execution of Agreement.)
CONTRACTO : ALASKA LLC.
By: COLE PETERSEN
Title: OWNER
Date:
` 011111,4.
0.° 'NIA Sir";
•
I`U3 SEAL`''. '�.
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[Corporate sealE2% 2 sK
AtAA `
Address for giving ivin notici4'*'��%```
27'j &wakd Nsiy
00/020,A
License No. JO/4335/
Agent fore service of process:
�e / /L,' se,"
(If CONTRACTOR is a corporation,
attach evidence of authority to sign.)
END OF SECTION
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