HomeMy WebLinkAboutRes2017-022CITY OF SEWARD, ALASKA Sponsored by: Hunt
RESOLUTION 2017-022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN
AGREEMENT WITH FRONTIER DIRECTIONAL DRILLING
SPECIALISTS, INC. TO PROVIDE DIRECTIONAL BORING SERVICES
TO RELOCATE TWO PRIMARY ELECTRIC SUPPLY CIRCUITS FROM
POLES MOUNTED ALONG THIRD AVENUE, ADJACENT TO THE
LAGOON, AND TWO ADDITIONAL LOCATIONS IN OLD MILL
SUBDIVISION AND SEWARD MARINE INDUSTRIAL CENTER (SMIC),
PLUS 10% FOR CONTINGENCIES, FOR AN AMOUNT NOT TO EXCEED
$399,375.20 AND APPROPRIATING FUNDS
WHEREAS, the power pole line crossing the Lagoon has reached the end of its useful life
and is in imminent danger of failure; and
WHEREAS, these poles carry all of the electric power lines which feed the City south of
Dairy Hill Road; and
WHEREAS, it has been determined to be impractical to trench along Third Avenue; and
WHEREAS, two critical locations, one in Old Mill Subdivision and one at SMIC require
boring under streams; and
WHEREAS, following a formal bid process, in accordance with SCC 6.10.210, Frontier
Directional Boring Inc. was found to be the low bidder with a combined total bid of $363,069.20;
and
WHEREAS, it is prudent, due to the unknown nature of the boring substrate, to allow for a
contingency in the amount of $36,306 (or 10%), in case of unexpected field conditions.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is authorized to enter into an agreement with Frontier
Directional Drilling Specialists, Inc to provide directional boring services support to relocate two
primary electric supply circuits from poles mounted along Third Avenue, adjacent to the Lagoon, and
two additional locations in Old Mill Subdivision and SMIC, in substantial form as presented at this
meeting.
1
CITY OF SEWARD, ALASKA
RESOLUTION 2017-022
Section 2. Funding in an amount not to exceed $399,375.20 is hereby appropriated from the
Electric Major Repair and Replacement Fund undesignated net assets account no. 15001-0000-3400,
to infrastructure account no. 15001-0000-8101.
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 10t'
day of April, 2017.
THE CITY OF SEWARD, ALASKA
an Bardarson, Mayor
AYES: Casagranda, Keil, Squires, McClure, Alterman, Bardarson
NOES: None
ABSENT: Slater
ABSTAIN: None
ATTEST:
JityJhan"naKin'-ff6y,
MC
Clerk
(City Seal)
aPO
e
SEAL
Y;
"mod T F�-�`,�•�
•��:.1�-.i.si�S
Agenda Statement
Meeting Date: March 13, 2017
To: City Council
Through: Jim Hunt, City Manag
From: John Foutz, Electric Utility Manager
Agenda Item: Authorizing the City Manager to enter into an agreement with Frontier
Directional Drilling Specialists, Inc to provide directional boring services
BACKGROUND & JUSTIFICATION:
The power pole line which crosses the Lagoon, on Third Avenue, carries two primary circuits,
designated Town 1 and Town 2. These two circuits provide all of the power for the City south of
Dairy Hill Road. The poles on which they are borne were installed some time prior to 1979 and these
poles have reached the end of their useful life and are in immediate danger of failure. Several options
were examined to put those lines underground and the least cost appears to be directional boring. In
addition, there are two locations, one in Old Mill Subdivision and one at SMIC, where, due to the
need to cross anadromous waters, it is more practical to bore under than to dig across.
On July 25, 2016, the Electric Department published an Invitation to Bid on the proposed boring
contract. Six companies requested plans, three companies turned in a bid. The bids were publically
opened on August 19, 2016. The low bidder, was Frontier Direction Drilling Specialists, Inc. Their
bid was $339, 669 for the Lagoon Bore, $11,142.40 for the SMIC bore and $12,252.80 for the Old
Mill bore. Their total bid was $363,064.20.
Given the nature of the work, it is impossible to be sure of the conditions of the substrate under the
Lagoon. As a result, it is prudent to allow for a contingency in the amount of $36,306.00 (or 10%), in
case of unexpected field conditions bringing a total funding requirement of $399,375.20
INTENT:
To authorize directional boring services to relocate two primary electric supply circuits from
poles mounted along Third Avenue, adjacent to the Lagoon, and two additional locations in Old
Mill Subdivision and SMIC.
CONSISTENCY CHECKLIST:
Yes
No
N/A
Comprehensive Flan (1.3, 3.7. 3.1, 3.7.3. 2): Continue to upgrade and
1.
expand utilities to meet existing needs and encourage future
X
development.
2
Strategic Plan : The mission of the City of Seward government it is to
provide quality leadership and economic wellbeing of its citizens
X
3.
Other (list):
X
FISCAL NOTE:
Funding in an amount not to exceed $399,375.20 is hereby appropriated from the Electric Major
Repair and Replacement fund undesignated net assets account no. I 5001-0000-3400, to
infrastructure account no. 15001-0000-8101.
Approved by Finance Department:
ATTORNEY REVIEW: Yes X No Not Applicable
RECOMMENDATION:
That the City Council approve an agreement with Frontier Directional Drilling Specialists, Inc. to
provide directional boring services, and appropriate funds..
The Project consists of three different bores at three different locations. One is located in the Old
Mill Subdivision. One is located at the Seward Marine Industrial Center (SMIC) and the third is
located on Third Avenue at the Seward Lagoon, In the first two cases, the substrate is assumed to
be sand, gravel and fractured shale (customary Seward substrate), In the third, the Substrate is
assumed to be bottom silt. Note: the Seward Lagoon Bore includes three (3) 4" conduits.
Each bore is described on the appropriate drawing, attached hereto. Please review, the drawings,
and address any questions to:
City ofSevyard Electric Department
Attention: Verrion Wiflet, Field Engineer
PO Box 167
Seward Alaska, 99664-0167
Phone: 907-224-4071
E"mail to: vwi I let (&cii,,y(� t'seward net
. . ...... . ....
dl
z z
U
mg"4 Z N 9::4 0
04 z
w =
9=4
z
21
8EGfNNlWG OF 00R�,�'
L*;'s
OFFSET FAAA--�-
EDGE OF Umpry
SEMENT
, 47
PROJECT IS TO BORE ACROSS SEWAIM
LAGOON FROM A NEW VAUIA' ON THE
NORTH SIDE OF DAIRY HILL LANE TO A,
TERMINUS AT A TRENCH ON rHE NORTH
END OT THE ALLEY' ADJACENT "M VAN
BUREN ST'REE,r AND BETWEEN SECOND
���;
AND THIRD AVENUES, A DISTANCE OF
APROX 2200 FEET' THROUGH
UNDETERMINED SUBSTRATE, PRESI)MED
MAW
TO B E Borrom sn.11r.
�fd
-4
3�
Ok.V
10 g KVA �j
OKI
WANTM Of THREE (3) MARINA
4' conwars Rumln
THE EVVRE UNGTH OF
'"IF, BORE,
Y",
WSW 1,
END OF BORE
-y
P14
CQ
I
z
CQ
11,14
C3
CIO
0-4
cr
m
IN
I
8
(�' fl"
jt
I IT: —4
cri
F-1
Z14
cf�
C)
Opel,
0
w
W E-
u
04 wo a4 44
Dr,
I
Boring Contract
Bid Evaluation
Criteria
Bidder #1
Bidder #2
Bidder #3
Bidder #4
Bidder #5
Bidder#6
Bid on Bid Form?
Addenda Acknowledged?
y
y
Lumip Sum?
Item pricing?
Statement of Qualifications?
Business License? Borough Tax Comp. Cert?
Work Plan?
Non -Collusion Affaclavit?
Bidder Responsive (Y/N)
Price
I9L
K
i it
0
Apparent Low Bid
K
# Z
44 ;q K
4VA K
CA
. ..... ...... ...
fIN
NAME: 1�:ov14ler
ADDRESS: *c, 4,o &)( 14aA Copver CeA4t,�r, A-K 9q515
In compliance with your Invitation for Bid dated
ria and labor reouired to com ]�Eth
The Undersigned hereby agrees to execute the said contract as directed or such further time as may be allowed in
writing by the Contracting Officer after receiving notification of the acceptance of this bid, and it is, hereby mutually
understood and agreed that in case the Undersigned does not, the said Contracting Officer may proceed to award the
contract to others.
The Undersigned acknowledges receipt of the following addenda to the Bid Documents (give: number and date of
each),
ADDENDA / DATE ISSUED
The Undersigned has read the foregoing bid and hereby agrees to the conditions stated therein by affixing his
signature below:
Sidding Company 50vl��V- plr'ec4i . wed Dri 111.VZ A 4'zl�s-k 14c,
Signature: YK Title:
CONTRACTOR'SLac ENSENor MBEK 3S;Ld4 EXPIRES: I
BUSINESS ADDRESS: He 6po Rom O-A. 6mx-y- Gm4cy 0 THEPHONE:
111f5T.3
City of Seward
Seward, Alaska
NAME: '41" J "Re, , , I- " G'.
ADDRESS:
In compliance with your Invitation for Bid dated the Undersigned proposes to
furnish all equipment, material and labor required to complete the above project, withina'10 days of awarding the
contract and issuance of Notice To Proceed.
The Undersigned hereby agrees to execute the said contract as directed or such further time as may be allowed in
writing by the Contracting Officer after receiving notification of the acceptance of this bid, and it is hereby mutually
understood and agreed that in case the Undersigned does not, the said Contracting Officer may proceed to award the
contract to others,
The Undersigned acknowledges receipt of the following addenda to the Bid Documents (give number and date of
each).
ADDENDA / DATE ISSUED
,V
The Undersigned has read the foregoing bid and hereby agrees to the conditions stated therein by affixing his
signature below:
Bidding Company le- K-
.c P _
Bid Price (Lagoon): o I 1 00 C5
Bid Price (Unnamed Rill): 4 111, Ooc
Bid Price (Lost Creek): eq 0
Bid Price (Total): C, �C>& rs
Signature-,
CONTRACTOR'S LICEN�31/NUM134: i i ), "dt
BUSINESS ADDRESS: (Octej
Title: d'C J
EXPIRFI'S: t —)
TELEPHONE: "'102-
I
[at-111TI-Mll
City of Seward
Seward, Alaska
NAME: Alaska Directional, LLC
ADDRESS: PO Box 871130 Wasilla, AK 99687
In compliance with your Invitation for Bid dated July 25, 2016 —, the Undersigned proposes to
furnish all equipment, material and labor required to complete the above project, within 30 days of awarding the
contract and issuance of Notice To Proceed,
The Undersigned hereby agrees to execute the said contract as directed or such further time as may be allowed in
writing by the Contracting Officer after receiving notification of the acceptance of this bid, and it is hereby mutually
understood and agreed that in case the Undersigned does not, the said Contracting Officer may proceed to award the
contract to others.
The Undersigned acknowledges receipt of the following addenda to the Bid Documents (give number and date of
each).
ADDENDA / DATE ISSUED
Memorandum Reporting Pre -Bid Meeting 8/10/2016
Question response email 8117/2016
Q&A email 8/11/2016
Question response email 8/16/2016
The Undersigned has read the foregoing bid and hereby agrees to the conditions stated therein by affixing his
signature below:
Bidding Company
Alaska birectional, LLC
Bid Price (Lagoon): $204.00/foot x 2200 feet = $448,800.00 (four hundred forty eight thousand eight hundred dollars)
Bid Price (Unnamed Rill): $90.00/foot x 160 feet = $14,400,00 (fourteen thousand four hundred dollars)
Bid Price (Lost Creek): $90.00/foot x 270 feet= $24,300.00 (twenty four thousand three hundred dollars)
Bid Price (Total): $487,500.00 (four hundred eighty-seven thousand five hundred dollars)
Signature: 1%,
I J
CONTRACTOR'S LICENSE NUMBER: CONS38474
Title: Manager
EXPIRES: 12/31/2016
BUSINESS ADDRESS: 1600 S. Tanya Ct. Palmer, AK 99645 TELEPHONE:- (907) 357-9015
=1
CITY OF SEWARD, ALASKA THE ("CITY")
Post Office, Box 167
Seward, Alaska 99664
Phone: 907.224.3445 Fax: 907.224.8633
FRONTIER DIRECTIONAL DRILLING SPECIALISTS, INC ("Contractor")
H'C 60 Post Office Box 142A
Copper Center, AK 99573
Phone: 907.259.5282
Email: deherrington@frontierhdd,.com
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:
11.1 "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 "Conitract Documents" means and consists of (i) thi's 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,
1.3 "City's Representative" means the John Foutz, Utility Manager; City Manager, or
the City Manager's designee.
1.4 "Work" means all labor, materiials, equipment and services provided by
Contractor to fulfill Contractor's obligations.
Construction Agreement
8?age I of 11
15 February 2017
50748611 002\010592150
0- 9 �14 01
The Contractor shall furnish all materials, labor and equipment necessary for the boring and
installation, of operational conduit as further described in, the Invitation to Bid, and the
specifications pertaining thereto. Reprinted in Appendix A.
3.1 The Date of Commencement wiill be the date of receipt of written Notice to
Proceed by the Contractor.
12 Contractor must complete the Scope of Work wi:thiin thirty (30) days of receiving
the Notice to Proceed.
3.3 Time is of the essence in this Agreement,
3A 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.
4.11 CONTRACT SUM; PAYMENT. For and in consideration of Contractor's
performance of the Work, Contractor will receive Three hundred, sixty-three thousand, and
sixty-four dollars and 20 cents, ($363,064.20). The Contract Sum, including authorized
adjustments, is the total amount payable by City to Contractor for performance of the Work
under the Contract Documents, City's payment obligation will be subject to:
4.1.1 A reduction by any amount owed by Contractor to City at the time payment
of the Contract Sum is due; or
Construction Agreement
Page 2 of 11
15 February 2017
507486\1002\00592150
41.2 Additions and/or deletions by Change Order.
4.2 CONITRACTOR'S INVOICES. Each bore in this contract may be invoiced upon
comiplletion, in any case Contractor will submit a single final invoice withiin thirty (30) days of the
completion of Work.
43 REVIEW OF CONTRACTOR'S INVOICES. City's Representative will, within
fifteen (1:S) days after receipt of any Contractor's invoice, approve payment for such amount as
City's Representative determines lis properly due, and notify Contractor in, writing of the reasons
for any withholding of payment iin whole or in part.
4.4 RETAINAGE, City will withhold ten percent (10%,) 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 retainiagie withheld by City.
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 Iby 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 3of 11
15 February 2017
507486\1 0MG0592150
5. ADMINISTRATION OF THE AGREEMENT
5.1 City's Representative will provide administration of thiis 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.
6.1 EXECUTION OF THE AGREEMENT. Execution of the Agreement by Contractor
is a representation that Contractor has become familiar with local conditions under which the
Work is to be performed and has correlated personal observations with the requirements of the
Contract Documents. City will not be requiired to make any adjiustmenit in either the Contract
Sum or Contract Time in connection with any failure by the Contractor to comply with the
requirements of this Paragraph
6.2.1 Contractor will supervise and direct the Work, uising 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 alll 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 imay be liable.
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
Construction Agreenient
1P'age 4 of 11
15 February 2017
5107486\1 002100592150
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.
6A 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. Thee contractor shall at all times
comply with Allaska's Prevailing Wage Act, AS 36.015,0105 et seq., the requirements of which are
set forth in Attachment 1 (Alaska Department of Labor and Workforce Development Pamphlet
600)1,
6.8 SAFETY PRECAUTIONS AND PROGRAMS. Contractor will be responsible for
initiating, maintaiining 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 workmanishiip, City may, by contract or
otherwise, terminate the right of Contractor to proceed, as provided by this Contract,
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.
Construction Agreement
Page 5 of 11
15 February 7017
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. CHANG,E,S 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 shalll be claimed by Contractor unless Contractor
shall Ihave 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 consistingi 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 condluct 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.
73 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 suibject 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
negllect by Owner, acts or neglect of utility owners or other contractors performing other work,
fires, floods, epidemics, abnormally severe weather conditions, or acts of Giod.
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
Construction Agreement
Page 6 of 11
15 February 2017
507486\1 002\005,92150
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 proviision of thlis, 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
amendled, 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-uip
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 proceedings.
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:
9.2.1 take possession of the site and of all materials thereon owned by
Contractor; and
9.2.2 finish the Work Iby whatever reasonable method City may deem expedient,
Constmetion Agreement
Page 7 of 11
15 February 2017
50748611 00260059,2150
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 ands directed to
Contractor specifying such suspension or waiver.
9-5 TERMINATION IFOR 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
101.1 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)-
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 Gluiide, in the latest edition in effect
Construction Agreement
Page 8 of 11
15 February 2017
a . I 010,1111I.S.Ywal
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 d uiriing 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 101,2,
101.2.1 Workers' Compensation Insurance: Contractor will provide and
maintain, for all employees of Contractor engagedin work under this Agreement, Workers"
Compensation insurance as required by AS 23.30.045, to include Empiloyer'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 alll 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 101.2
broad form property damage and personal injury liability. The minimum limits of liability will be:
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 $1,01010,0010 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 $1,0001,000 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 Busiiness
Automobile Policy in limits not less than the following: $11,000,000 each occurrence (Combined
Single Limit for bodily injury and property damage).
10.1.3C,ertificates 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
(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.
Construction Agreement
Page 9 of 11
15 February 2017
611MM131014FATITN"• 4
10.1.4 Contractor's insurance will
underwriters on all policies waive their right of
compensation coverage described at 10.12.11,
policies.
be endorsed to provide that the insurers and
subrogation against City. Except for workers'
City will be named additional insured on all
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 diirectlly 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 iin part by a party indemnified hereunder.
10.3 SURVIVAL. Contractor's insurance and indemnity obligations hereunder will
survive termination of this Agreement.
11. MISCELLANEOU'S
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 andl 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.
11.6 NOTICES. All notices to a party under thils Agreement will be in writing and will
be delivered personally, or sent by certified mail, to the following address:
Construction Agreement
Page 10 of 11
1.5 February 2017
507486\1002\00592150
James Hunt, City Manager
, CIVIC, City Clerk
(City Seal)
Construction Agreement
Page 11 of 11
15 February 2017
507486NI002kOO592150
AtJTHORIZATION
CERTIFICATE
(if Corporation)
STATE OF ALASKA
)SS'.
THIRD JUDICIAL DISTRICT)
U11 - I HEREBY CERTIFY that a meeting of the Board of Directors of the Frontier Directional
4specialists, Inc. a corporation existing under the laws of the State of Alaska, held on
ftv'4 , 20 17, the following resolution was duly passed and adopted:
"RESOLVED, that at*te, as � �reldeAfbf the Corporation,
be and is hereby authorized to execute and deliver the Agreement presented at this meeting
with the CITY OF SEWARD on behalf of the corporation and that the execution thereof shall be
the official act and deed of this Corporation,"
I further certify that said resolution is now in full force and effect.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seat of
the corporation this Z4 day of ,20j-L_
S01111111JI,
............
P40_
SEAL*.
(SEAL)
2012
...... ON&
507486\10021C117592150
etary
FRONTDI OP ID: CSP
„.
CERTIFICATE
INSURANCE, 0310712017
r w rw x r ♦ w, w W
. Pe r - , ,� r M. r- -, r 'aja
PRODUCER
Business Insurance Associates
91138 Arlon Strei Sulfa A-1
PLnchoraga, AK 99507
Christophar Pobteglo
INSURED Frontier Directional Drilling,
Specialists Inc.
Mile 82 (Richardson Hwy
Copper Center, AK 89573
tAtc.'NN.. Eg:907-274-1142 ruMc. NAM: 907- m74-8721
EMMAIL __ _...�__
AIraREss Chris usinessinsuranceassociates.darn
INSURE: ~II AFFORDING COVERAGE "Co j
I TIER A : Alaska National Insurance Co' 138773
CNS'IJRI3t r3 Travelers _,......., ..._.......____ 31194
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUEDTO THE INSURED (NAMED ABOVE FOR THE POLICY PERIO
INDICATED. NKii?a1dITHSTANDING ANY REQUIREMENT, TERM CAR CONDITION OF ANY CONTRACT OR OTHER DOCUMENTWITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR. MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS ANC) CONDITIONS OF SUCH POLICIES, LIMrrS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
TYPE OF I'NaURANCE IINSR POLICY NRJFl0E14'. ...._ _ _ .RAkilb 6RMLIC7PV'"POLICY RP LIMC'Tf.
GENERAL LIABILITY
EACH 00CURRENCE
$ 11 iNoD,Q.
A
X COMMERCIAL GENERAd UASILCTY
-
X
X
6F LS 09762
0611512016
06115/2017
Tr ET ItERaTEC __. .
PREMISES Ee accuraence _
$ 100,000
CLAMn.S�MADEK OCCUR
MED EXP (Any Una prsrwi
$ 5,000
PERSONAL & ADV INJURY
I 1,000,0'
GENERA, AGGREGATE
$ 2,0010,0'
'GIEN"L AGGREGATE WAIT APPLIES PER
'' PRODUCTS. C7MAPIOP ASG.-.
$ 2,000,000
+� POLICY LOC`:
$
AUTOMOBILE
LIABILITY
COM.PINECJSINGIER.ar�Af-...
Ee accident
tiB 0
1,D' 0
A
ANY'AUTO
X,
X
6F AS 09762
0611512016
0611512017
8001Y INJURY IPec Pofson)
$
ALL OV'VNEC7 OIiUi.ETa
AI.17bS AUTOS
BOC?tlI.Y" INJURY (Pet ¢x^crdent)
$
Birl«'.i'.d']AL.IIO5t NON -OWNED
AUTOS
PROPEATY DAMAGE
R AC'CDENT
—.__.....�.._..____........
X UMBRELLA LIAO X OCCUR
EACH OCCURRENCE
$ 5,000,00
A
EXCESS LIAB, CLAIMSVAL3E
..
X
X
16F I U B'9762
0611512016
06/15120117
AGGREr3AIE
$ 5,000,OOD
-
1) RETENTIONS 10,400
-.
$
WORKERS CDMPEA5gSA11ON
VVCSTATU_ OT
AM4'I EMPLOYERS" LIABILITY YIN_''
TORd LII47a.. B
_.... ..,......
A
ANY PROPRIETOWPARTNIERCXLCUTIVE
X
116F WS 09762
06M 512016
06115/2017
E L EACH ACCOENT
$ 1,000 0
OFRCERIMEMBER EXCLUDED? ❑
NIA
_.._ _
_ .. �.
IMlandatoryInNH)
E.L. DISEASE EAEMPLOYEE
'$ 1,000,00
Id Yeer s dessdbs Und
OESCRIPTPON Or OPERATVONS Wow
.,.,..._.�_......
E,L. DISEASE . POLICY (LIMIT...$
1,000,00
Bond
106209094
1UM412016
10�11412'!017
25,0
A
�ontractGfS
quiprnent Coverage
16F NA 09762
DiiI06/15120,17
scheduled
DESCRIPTION OF OPERAMONS I LOCATIONS I VEHICLES IAEhach ACORD 101, Additldrral Remarks EclretN o, Cf mm spate Is regL19red1
Certificate holder named additional insured with waivers' of subrogation per
blanket endorsements
CITYSEW
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE; EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED 04
City of Seward ACCORDANCE WITH THE POLICY PNROVIBIONS.
PO Box 167
Seward, ANC 99664 AU HGR1ZED REPRESENTATIVE
a 1'989-2010 ACORD CORPORATION, All! rights reserved.
ACiIRD 25 (2010105) The ACORD name and logo are registered marks o'1 ACORD
APPENDIX A — DETAILED SCOPE OF WORK
The project consists of three different bores at three different locations. One is located in the Cold
Mill Subdivision. One is located at the Seward Marine Industrial Center (SMIQ and the third is
located on Third Avenue at the Seward Lagoon, In the first two cases, the substrate is assumed to
be sand, gravel and fractured shale (customary Seward substrate). In the third, the substrate is
assumed to be bottom silt. Note: the Seward Lagoon Bore includes three (3,) 4" conduits,
Conduit for lagoon run shall be 4", SDR-9 Smooth Wall HDPE or better. Conduits for the other
two runs may be SDR- 13.5 Smooth Wall HDPE or better. Mud fi-orn the bore shall be dumped
on a site provided by the City. Conduit shall be placed 20 feet below the bottom on the lagoon
bottom. Contractor shall determine the depth of the lagoon by soundings or by any other method
which provides accurate information. Conduit shall be placed 20 feet below the bottom of the
Unnamed Rill and 30 feet below the channel of Lost Creek.
Please note that any "welds', connecting pieces of conduit must be made smooth inside, to
facilitate the pulling of wire. The Contractor will provide a pulling rope or device running the
full length of the conduit to facilitate the installation of the wire by the City. Any suggestions to
further reduce the friction of the wire against the conduit will be gratefully received.
Each bore is described on the appropriate drawing, attached hereto. Contractor shall provide a
bore profile showing finished work depth and location upon completion of the work.
507486\1 002\00592150
>
BEGMING OF
64
z 0,
Z
OFFS'ET MA)
EMS OF, Vlrul�
=Z�
;4=6z
EMEM,11,M,
Z 0
z
z
OJECTLO BORE AiCfZ(,)SS S EN AR1
PRIT"0w
XM
WMM
IAGOON 1FROIM NEVAULT OTIJE
NORTH SIDE DAIRY HILL LANE PO A
TERMINUS ATA TREN(A-1 ON THE NOR"I'll
END OT THE ALLEY ADJACEN'r U) VAN
FOUR FBI STREET AND BETWEEN SECOND
AND THIRD AVENUES, A DISTANCE OF
APROX 2200 1�1,,ET THROUGH
UNDETERMINED SLIBS117.ATE , PRESUMED
TO M�DOTTOM SIL',
QUANTITY OF' THIREE (3)
4" CONDUTTS RUNNING,
THE INTINE LENGTH OF
ME BORE
END OF BORE
Zd
z
�4
rw
fa
P.4 rp
E-1
E-
Po
P"IIII
gip.. C9
C—)
-e� --i
I<,, Z
fllo F-Ill Q�'
44 U
0
ek
1-4
lot
qh
10
"I"
q�
..... . ...... .......
ly,
. ... .. . ... .......
IC) W
�4 110-4 C ri.i
PL4 Z P,4 44
44
PAYMENT BOND
KNOW ALI, MFN BY THESE PRESENTS: that
(Name of Company)
(Name of Corporation)
hereinafter called Principal and
(Name of Surety)
hereinafter called Surety, are held and firmly bound unto
(Name of Grantor)
(Address of Grantor)
hereinafter called Owner, in the penal sum of WRITTEN AMOUNT Dollars,
in lawful money of the United States, for the payment of which sum well and
truly to be made, we bind ourselves, successors, and assign, jointly and severally, fin-nly by these
presents,
THE CONDITION OF THIS OBLIGATION is such that whereas, the Principal entered into a certain
contract with the OWNER, dated the day . 201_, a copy of which is here
attached and made a part hereof for the construction of,
NOW, THEREFORE, if the Principal shall promptly make payment to all persons, finias,
SUBCONTRACTORS and corporations furnishing materials for or performing labor in the prosecution
of the WORK provided for in such contract, and any authorized extension or modification thereof,
including all amounts due for materials, lubricants, oil, gasoline, coal and coke, repairs on machinery,
equipment and tools, consumed or used in connection with the construction of such WORK, and all
insurance premiums on said WORK, and for all labor, perfon-ned in such WORK whether by
SUBCONTRACTOR or otherwise then this obligation shall be void: otherwise to remain in full force and
effect.
PROVIDED, FURTHER., that the said Surety for value received hereby stipulates and agrees that no
change, extension of time, alteration or addition to the terms, of the contract or, to the WORK to be
performed thereunder or the SPECIFICATIONS accompanying the same shall in any wise affect its
obligation on this BOND, and it does hereby waive notice of any such change, extension of time,
alteration or addition to the terms of the contract or to, the WORK or to the SPECIFICATIONS.
PROVIDED, FUR'"Fl I ER, that no final settlement between the OWNER and the CONTRACTOR shall
abridge the right of any beneficiary hereunder, whose claim may be unsatisfied,
IN WITNESS WRIER OF, this instrument is executed in counterparts, each
one of which shall be deemed an original, this day of 200.
ATTEST:
(Principal - Secretary)
(SEAL) By:
(Witness as to Principal)
(Address)
ATTEST:
(Surety - Secretary)
(SEAL)
M
(Witness as to Surety)
(Address)
(Principal)
(Address)
(Attomey-in-fact)
(Address)
NOTE: Date of BOND must riot be prior to date of Contract. If CONTRACTOR is Partnership,
all partners should execute BOND,
IMPORTANT: Surety companies executing Bonds must appear on the Treasury Department's most
current list (Circular 570 as amended) and be authorized to transact business in the state
where the PROJECT is located.
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS: that
(Name of Company)
(Name of Corporation)
hereinafter called Principal and
(Name of Surety}
hereinafter called Surety, are held and firmly bound unto
(Marne of Grantor)
(Address of Grantor)
hereinafter called Owner, in the penal sum of WRITTEN AMOUNT Dollars,
-__J' in lawful money of the United States, for the payment of which sum well and
truly to be made, we bind ourselves, successor, and assigns, jointly and severally, firmly by these
presents.
THE CONDITION OF THIS OBLIGATION is such that whereas, the Principal entered into a certain
contract with the OWNER, dated the day 201 —, a copy of which is here
attached and made a part hereof for the construction of:.
NOW, THEREFORE, if the Principal shall promptly make payment to all persons, firms,
SUBCONTRACTORS and corporations furnishing materials for or performing labor in the prosecution
of the WORK provided for in such contract, and any authorized extension or modification thereof,
including all amounts due for materials, lubricants, oil, gasoline, coal and coke, repairs on machinery,
equipment and tools, consumed or used in connection with the construction of such WORK, and all
insurance premiums on said WORK, and for all labor, performed in such WORK whether by
SUBCONTRACTOR or otherwise then this obligation shall be vodd: otherwise to remain in full force and
effect.
PROVIDED, FURTHER, that the said Surety for value received hereby stipulates and agrees that no
change, extension of time, alteration or addition to the terms of the contract or to the WORK to be
performed thereunder or the SPECIFICATIONS accompanying the same shall in any wise affect its
obligation on this BOND, and it does hereby waive notice of any such change, extension of time,
alteration or addition to the terms of the contract or to the WORK,or to the SPECIFICATIONS.
PROVIDED, FURTHER, that no final settlement between the OWNER and the CONTRACTOR shall
abridge the right of any heneficiary hereunder, whose claim nay be unsatisfied.
IN WITNESS WHEREOF, this instrument is executed in counterparts, each one of
which shall be deemed an original, this day of 200
ATTEST-
(Principal — Secretary)
(SEAL) By:
(Witness as to Principal)
(Address)
ATTEST:
(Surety - Secretary)
(SEAL)
M
(Witness as to Surety)
(Address)
(Principal)
(Address)
(.!attorney -in -fact)
(Address)
NOTE: Date of BOND inust not be prior to date of Contract If CONTRACTOR is Partnership,
all partners should execute BOND.
IMPORTANT: Surety companies executing Bonds must appear on the Treasury Department's most
current list (Circular 570 as amended) and be authorized to transact business in the state
where the PROJECT is located.