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HomeMy WebLinkAboutRes2018-060Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2018-060 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH JAFFA CONSTRUCTION FOR THE REPAIR AND REFURBISHMENT OF THE LOWELL CANYON 400,000 GALLON WATER STORAGE TANK IN AN AMOUNT NOT TO EXCEED $548,376.00 AND APPROPRIATING FUNDS WHEREAS, the Lowell Canyon water storage tanks are essential to the water supply for the City of Seward; and WHEREAS, a 2011 engineering survey by Wince-Corthell-Bryson Consulting Engineers showed the 400,000 gallon tank was in disrepair, and recommended the interior and exterior of the tank be recoated; and WHEREAS, the State of Alaska has provided grant funds for refurbishing the Lowell Canyon water tanks, including engineering, contracting, and administration for up to $575,000. Pursuant to the grant agreement's 1-year extension, these funds must be used by June 30, 2019; and WHEREAS, Resolution 2017-040 approved Wince-Corthell-Bryson Consulting Engineers to provide engineering services to design, permit, and provide contract administration support for the Lowell Canyon water tank refurbishment for a total sum not to exceed $75,020; and WHEREAS, Wince-Corthell-Bryson Consulting Engineers completed the engineering and bid documents for repair and refurbishment of the 400,000 gallon water tank, and this project was put out to competitive bid on June 11, 2018 with a bid opening on June 27, 2018; and WHEREAS, Jaffa Construction, Inc. was the only responsive bidder, with a bid total of $548,376.00. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. It is in the public interest for the City of Seward to contract with Jaffa Construction, Inc. for the Lowell Canyon water tank refurbishment. Section 2. The City Manager is authorized to enter into a contract with Jaffa Construction, Inc. for a total sum not to exceed $548,376.00, for repair/construction services on materially the same terms as in the Contract Agreement attached as Exhibit A. Section 3. Funding in the amount of $499,980.00 is hereby appropriated from State grant CITY OF SEWARD, ALASKA RESOLUTION 2018-060 funds account no. 17731-0000-5922 to contract services account number 17331-0000-7009, and funding in the amount of $48,396.00 is hereby appropriated from the water fund account no. 17000- 0000-3400 to contract services account number 17331-0000-7009. Section 4. This resolution shall take effect immediately upon approval. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9`h day of July, 2018. THE CITY OF SEWARD, ALASKA C� \&Woo David Squires, Mayo AYES: Towsley, McClure, Keil, Casagranda, Horn, Seese, Squires NOES: None ABSENT: None , ABSTAIN: None ATTEST: Brenda J. Ballou M City Clerk (City Sea`�AOF SE '••. �i • G )'ti�•i • SEAL o. ♦ qr � CJ e. ti•, E OF A �' .•' 1 Meeting Date To: Through: From: Agenda Item: Agenda Statement July 9, 2018 City Council City Manager Jim Hunt Doug Schoessler, Public Resolution 2018-060 Works Director BACKGROUND & JUSTIFICATION: A 2011 engineering survey of the water tanks conducted by Wince-Corthell-Bryson Consulting Engineers showed the 400,000-gallon tank was in disrepair and recommended the interior and exterior of the tank be recoated. Seward's water supply system is dependent on water stored in the Lowell Canyon tanks. It is essential that the 400,000-gallon tank be maintained for long-term use. Resolution 2017-040 approved and awarded a contract to Wince-Corthell-Bryson for design engineering, bid document preparation, and project management services. They completed the engineering and the project has been out for competitive bid. The bid opening was conducted on June 27, 2018. Only one bid was received, and that was from Jaffa Construction in the total amount of $548,376. The bid was checked for accuracy and completeness and was found to be responsive. INTENT: The intent of this resolution is to approve and award the construction contract for repair/refurbishment of the Lowell Canyon water tank in a timely manner to Jaffa Construction, Inc. in the total amount of $548,376.00 CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): X 2. Strategic Plan (document source here): X 3. Other (list): X 54 FISCAL NOTE: Funding for this project is from a previously secured state grant and the Water fund. Approved by Finance Department: ATTORNEY REVIEW: Yes No X— Not Applicable RECOMMENDATION: City Council authorize a contract with Jaffa Construction for the Lowell Canyon Water Tank Refurbishment project. 2 507486\1 002\00630057 611 CITY OF SEWARD, ALASKA LOWELL CANYON WATER TANK REFURBISHMENT CONTRACT THIS CONTRACT is between City of Seward, Alaska (hereinafter called OWNER), and Jaffa Construction, Inc. (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: Refurbish the existing 400,000 gallon water tank located at Lowell Canyon. Work to include sandblasting and recoating the interior and exterior of the tank, removing and replacing the existing exterior insulation, residing the tank, and modifying the foundation. 2. CONTRACTING OFFICER & ENGINEER 2.1. Doug Schoessler 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. Wince-CorthelI-Bryson 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 October 15, 2018. 3.1.2. CONTRACTOR shall achieve Substantial Completion no later than September 30, 2018. Lowell Canyon Water Tank Page 1 of 6 Contract Refurbishment 611 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: Five hundred forty-eight thousand, three hundred seventy-six Dollars (Words) and zero . Cents $548,376.00 (Words) ) 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. Lowell Canyon Water Tank Page 2 of 6 Contract Refurbishment 61VA 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. 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 Tank Refurbishment project. Both prevailing wage 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. Lowell Canyon Water Tank Page 3 of 6 Contract Refurbishment 58 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. Lowell Canyon Water Tank Page 4 of 6 Contract Refurbishment 59 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 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. ADEC EEO Statement of Acknowledgement 14.5.10. 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. Lowell Canyon Water Tank Page 5 of 6 Contract Refurbishment N- IN WITNESS WHEREOF, OWNER and CONTRACTOR have signed 2 copy(ies) of this Agreement. All portions of the Contract Documents have been signed or identified by OWNER and CONTRACTOR. OWNER City of Seward, Alaska CONTRACTOR Jaffa Construction, Inc By: By: _ Title: Title: Date: Date: ATTEST: [City Seal] Address for giving notices (Attach evidence of authority to sign and resolution of other documents authorizing execution of Agreement.) [Corporate seal] Address for giving notices License No. Agent for service of process: (If CONTRACTOR is a corporation, attach evidence of authority to sign.) END OF SECTION Lowell Canyon Water Tank Page 6 of 6 Contract Refurbishment PAYMENT BOND KNOW ALL MEN BY THESE PRESENTS: that of and of as Surety, are held and firmly bound unto the City of Seward, 99664, as Owner, in the penal sum of $ as Principal P.O. Box 167, Seward, Alaska _ 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 construction contract with the Owner, dated the day of 2018, for the construction of: Lowell Canyon Water Tank Refurbishment NOW, THEREFORE, if the Principal shall promptly make payment to all persons, firms, Subcontractors and others furnishing materials for or performing labor in the prosecution of the Work provided for in such contract, and any authorized extension or modification thereof, 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 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, FURTHER, 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 WHEREOF, this instrument is executed in _ of which shall be deemed an original, this day of PRINCIPAL: la Address: SURETY 0 Address: counterparts, each one 2018. Note: Date of Bond must not be prior to date of Contract. If Contractor is Partnership, all partners must execute Bond. Lowell Canyon Water Tank Page 1 of 1 Payment Bond Refurbishment [X PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: that of as Principal and of as Surety, are held and firmly bound unto the City of Seward, P.O. Box 167, Seward, Alaska 99664, as Owner, in the penal sum of $ 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 construction contract with the Owner, dated the day of 2018, for the construction of: Lowell Canyon Water Tank Refurbishment NOW, THEREFORE, if the Principal shall well and truly perform and complete all obligations and Work provided for in such contract, and any authorized extension or modification thereof, and reimburse upon demand of the Owner any sums paid which exceed the final payment due upon completion, 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. IN WITNESS WHEREOF, this instrument is executed in _ of which shall be deemed an original, this day of PRINCIPAL: By: Address: SURETY By: Address: counterparts, each one 2018. Note: Date of Bond must not be prior to date of Contract. If Contractor is Partnership, all partners must execute Bond. Lowell Canyon Water Tank Page 1 of 1 Performance Bond Refurbishment 63