HomeMy WebLinkAbout04242019 City Council Special Packet Seward City Council
Agenda Packet
Special City Council Meeting
Wednesday, April 24, 2019
Council Chambers, City Hall
12:00 p.m.
SPECIAL MEETING REQUEST
Pursuant to Seward City Code 2.10.030 (2), this is to serve as the written notice calling a Special
City Council Meeting on Wednesday, April 24,2019 at 12:00 p.m. for the purpose of�
Resolution 2019-044, Approving An Employment Agreement Between The
City Of Seward And Scott Meszaros For City Manager Services.
Resolution 2019-045, Authorizing The City Manager To Enter Into A
Contract With GMG General For The SMIC Harbor Improvements Paving
Project In The Amount Of $669,496 Plus A 10% Contingency, And
Appropriating Funds.
Resolution 2019-046, Authorizing 'The City Manager To Enter Into A
Conti-act With Gov1IR USA For An Amount Not To Exceed S45,000 To
Review The City Of Seward Classification And Compensation Plan, And
Appropriating Funds.
Resolution 2019-047, Authorizing The City Manager To Enter Into A
Professional Services Agreement With Thyssenkrupp Elevator Company To
Provide Elevator Maintenance And Repair Services For Three City
Elevators.
Resolution 2019-048, Supporting The Application Of The Alaska Federal
Lands Access Program (FLAP) Grant For Improvements To Lowell Point
Road.
The meeting will commence in the City Council Chambers, City Hall, 410 Adams Street,
Seward. All interested persons are invited to attend the meetings.
Signed this 23"(1 day of April, 2019 at 11:00 a.m.
..........
MayorCam* anag~er
2 Council Mernbei-s
Upon this request the City Clerk will give due and proper notice as required by SCC
2.10.032
(No business shall be transaf,,Ied other their state(l above.)
SPECIAL MEETING NOTICE
Pursuant to Seward City Code 2.10.030 (2), this is to serve as the written notice calling a Special
City Council Meeting on Wednesday, April 24, 2019 at 12:00 p.m. for the purpose of:
Resolution 2019-044, Approving An Employment Agreement Between The
City Of Seward And Scott Meszaros For City Manager Services.
Resolution 2019-045, Authorizing The City Manager To Enter Into A
Contract With GMG General For The SMIC Harbor Improvements Paving
Project In The Amount Of $669,496 Plus A 10% Contingency, And
Appropriating Funds.
Resolution 2019-046, Authorizing The City Manager To Enter Into A
Contract With GovHR USA For An Amount Not To Exceed $45,000 To
Review The City Of Seward Classification And Compensation Plan, And
Appropriating Funds.
Resolution 2019-047, Authorizing The City Manager To Enter Into A
Professional Services Agreement With Thyssenkrupp Elevator Company To
Provide Elevator Maintenance And Repair Services For Three City
Elevators.
Resolution 2019-048, Supporting The Application Of The Alaska Federal
Lands Access Program (FLAP) Grant For Improvements To Lowell Point
Road.
The meeting will commence in the City Council Chambers, City Hall, 410 Adams Street,
Seward. All interested persons are invited to attend the meetings.
Posted: Tuesday, April 23, 2019 at 11:15 a.m.
City Hall bulletin board
U.S. Post Office
Harbormaster's Building
Seward Community Library Museum
2
The City of Seward, Alaska
Special City Council Meeting
Wednesday, April 24, 2019 12:00 p.m.
David Squires 1. Call To Order
Mayor 2. Pledge Of Allegiance
Term Expires 2019 3. Roll Call
4. Citizen Comments On Any Subject Except Those Items
Sue McClure Scheduled For Public Hearing. [Those Who Have Signed In Will Be
Vice Mayor Given The First Opportunity To Speak. Total Time For This Agenda Item is
Term Expires 2019 36Minutes.]
5. Approval Of Agenda And Consent Agenda[Approval of Consent
Suzi Towsley Agenda passes all routine items indicated by asterisk(*). Consent Agenda
items are not considered separately unless a council member so requests. In
Council Member the event of such a request, the item is returned to the Regular Agenda.]
Term Expires 2019 6. New Business
Resolutions
Jeremy Horn *1. Resolution 2019-044, Approving An Employment
Council Member Agreement Between The City Of Seward And Scott Meszaros
Term Expires 2019 For City Manager Services. .................................. Pg. 4
*2. Resolution 2019-045, Authorizing The City Manager To
Sharyl Enter Into A Contract With GMG General For The SMIC Harbor
Councill Member Improvements Paving Project In The Amount Of$669,496 Plus
Term Expires 2021 A 10% Contingency, And Appropriating Funds. ........ Pg. 13
John Osenga *3. Resolution 2019-046, Authorizing The City Manager To
Council Member Enter Into A Contract With GovHR USA For An Amount Not
Term Expires 2021 To Exceed $45,000 To Review The City Of Seward
Classification And Compensation Plan, And Appropriating
Kelley Lane Funds. .......................................................... Pg. 104
Council Member *4. Resolution 2019-047, Authorizing The City Manager To
Term Expires 2020 Enter Into A Professional Services Agreement With
Thyssenkrupp Elevator Company To Provide Elevator
Norm Regis Maintenance And Repair Services For Three City Elevators. Pg. 113
Acting City Manager *5. Resolution 2019-048, Supporting The Application Of The
Alaska Federal Lands Access Program (FLAP) Grant For
Brenda Ballou Improvements To Lowell Point Road. ......................Pg. 128
City Clerk 7. Council Comments
8. Citizen Comments
Holly Wells 9. Council And Administration Response To Citizen Comments
City Attorney 10. Adjournment
Citv of Seward, Alaska 3 Council Agenda
April 24, 2019 Page I
Sponsored by: City Clerk
CITY OF SEWARD, ALASKA
RESOLUTION 2019-044
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING AN EMPLOYMENT AGREEMENT BETWEEN
THE CITY OF SEWARD AND SCOTT MESZAROS FOR CITY MANAGER
SERVICES
WHEREAS, the contract for the former Interim City Manager, Jeff Bridges, expired at
midnight on March 17, 2019; and
WHEREAS, the City Council approved Resolution 2019-029 on March 9, 2019 which
appointed Harbormaster Norm Regis as Acting City Manager for one month through April 19,2019;
and
WHEREAS, the City Council approved Resolution 2019-037 on April 16,2019 to extend
Regis' appointment through May 20, 2019; and
WHEREAS,two applicants,Scott Meszaros and Erin Reinders,were unanimously approved
as the final candidates,and both applicants traveled to Seward for in-person interviews with council
on March 28, 2019; and
WHEREAS, on April 15, 2019,Erin Reinders withdrew her application for consideration;
and
WHEREAS, on April 17,2019,council unanimously voted to offer the position as Seward
City Manager to Scott Meszaros, and on April 18, 2019 concluded successful negotiations.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The Seward City Council hereby authorizes the Mayor and the Acting City
Manager to sign the contract between the City of Seward and Scott Meszaros in substantial form
attached hereto.
Section 2. The official date of hire for Scott Meszaros is May 1, 2019.
Section 3.Funding for this contract shall come from the City Manager budget for personnel
services.
Section 4. This resolution shall take effect immediately upon its adoption.
4
CITY OF SEWARD,ALASKA
RESOLUTION 2019-044
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24tn
day of April, 2019.
THE CITY OF SEWARD, ALASKA
David Squires, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Brenda J. Ballou, MMC
City Clerk
(City Seal)
5
COUNCIL AGENDA STATEMENT
Meeting Date: April 24,2019
To: City Council
From: Brenda Ballou, City Clerk
Agenda Item: Approval of employment agreement with Scott Meszaros for the position
of City Manager
BACKGROUND &JUSTIFICATION:
Prior to the departure of former Interim City Manager Jeff Bridges on March 17, 2019, city
council approved Resolution 2019-001 to hire the recruiting firm GovHR USA to search for a
new permanent city manager.
Because the process could not be completed before Bridges' contract ended, there was the need
for the city to have an Acting City Manager appointed. On March 4, 2019, council unanimously
selected Harbormaster Norm Regis to serve as Acting City Manager.
Resolution 2019-029 appointed Harbormaster Norm Regis as Acting City Manager for the period
of March 18, 2019 through April 19, 2019, and Resolution 2019-037 extended the appointment
through May 20, 2019.
The City Council has been diligently working on finding a suitable city manager, and coming to
terms with the negotiation of a contract. On April 17, 2019, council unanimously voted to select
Scott Meszaros as the city's city manager. On April 18, 2019, the council's negotiating
committee concluded a successful negotiation with Meszaros, and determined that his start date
would be May 1,2019.
INTENT:
Approve the employment agreement for the permanent city manager hire of Scott Meszaros.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan (document source here): x
Strategic Plan (document source here) x
Other Oist): x
6
FISCAL NOTE:The costs related to the increase in salary and benefits for the city manager
position is expected to be offset by a reduction in the costs related to the assistant city manager
position due to the retirement of the former assistant city manager with longer tenure. Therefore,
no further appropriation is necessary
Approved by Finance Department:
ATTORNEY REVIEW: Yes No Not Applicable
The city attorney drafted the employment agreement.
RECOMMENDATION:
Approve Resolution 2019-044
CITY MANAGER EMPLOYMENT AGREEMENT
This Employment Agreement ("Agreement), effective as of May 1, 2019,
("Effective Date"), is between the City of Seward, Alaska ("City") and Scott Meszaros
("Manager" or"Meszaros").
RECITALS
WHEREAS, the City wishes to employ Scott Meszaros as City Manager and
Scott Meszaros has agreed to serve the City in the capacity of City Manager as
provided for in this Agreement,
NOW, THEREFORE, in consideration of the foregoing and the mutual promises
and covenants set forth in this Agreement, the City and Manager agree as follows:
Section 1. Duties of Manager.
A. Scope of Duties. Manager shall be employed by City as, and hold the title
of, "City Manager" of the City. Manager shall serve at the pleasure of, and report
directly to, the Seward City Council ("Council"). Manager shall perform all duties and
discharge all responsibilities of that position as prescribed by law, including but not
limited to Seward City Code 2.20.035. City Manager shall be aware of any changes in
the laws governing his duties and obligations under law and comply with those changes.
Manager shall maintain residency in the City during the entire term of this Agreement.
B. Confidentiality
. Manager recognizes that the he will receive and have
access to information of a confidential nature. Manager agrees any confidential
information obtained as a result of the City Manager position will be maintained as
confidential to the extent authorized by law. The City may terminate this agreement
without notice and hold Manager accountable to the greatest extent permitted by law if
he violates this provision. In order to find a violation of this provision, Manager's breach
of confidentiality must be evident in a document, at a public event or conceded by
Manager.
Section 2.
Compensation and Benefits of Manaaer.
A. S�ala . Manager shall receive an annualized salary of ONE HUNDRED
FORTY THOUSAND DOLLARS ($140,000,00) during the term of this Agreement,
payable in regular installments at the time other City employees are paid, or as
otherwise agreed upon between the parties in writing. Manager is not eligible for any
increases in compensation or bonus payments during the term of this Agreement. All
compensation paid to Manager shall be subject to required employment deductions,
taxes, and contributions.
B. Exempt Status, Manager acknowledges that the position of Manager is
exempt from the overtime requirements of state and federal wage and hour laws and as
CITY MANAGER AGREEMENT
507496\10OW0908572
8
such, Manager is expected to work the hours necessary to accomplish the goals and
requirements of the position.
C. Retirement Benefits. Manager shall be enrolled in the Alaska Public
Employees Retirement System (PERS) during the term of this Agreement, so long as
the City participates in the System.
D. Health and Welfare Benefits. Manager shall receive group medical and
dental insurance coverage as provided to the employees of City, including coverage for
family members, subject to the requirements of the applicable plan.
E. Paid Leave. Manager shall receive an annual allotment of one hundred
sixty (160) hours of accrued paid leave for use for personal absences, vacation, and
sick leave. Notwithstanding the leave accrual provided for under this section, Manager
shall additionally receive a one-time allotment of twenty-four (24) hours of leave to be
exclusively used during the month of May 2019, and forty (40) hours of leave to be
utilized for purposes of relocating to Seward, Alaska; such leave shall not otherwise be
banked. Manager shall keep the Council generally apprised of planned absences; leave
exceeding five (5) consecutive days in duration must be approved by the Council. Upon
employment separation, including expiration of this Agreement, Manager shall receive
payment for all accrued, unused leave, in accordance with City policy and practices, so
long as Manager is in compliance with this Agreement. Any payment of accrued
unused paid leave shall be subject to all deductions, taxes and contributions required by
law.
F. Travel Professional Development Expenses. Manager
shall receive reimbursement from City for reasonable lodging and meal expenses while
travelling out-of-town for meetings or professional development in the interests of the
City, specifically to include two AML Conferences, and any other events as may be
approved by Council. City shall pay for professional dues for ICMA membership, and
other subscriptions or dues for participation in national, regional, state, and local
associations and organizations for the Manager's continued professional growth and
advancement, as may be approved by the Council.
G. Relocation Expenses. Manager shall be entitled to a relocation cost
reimbursement advancement of FIVE THOUSAND DOLLARS ($5,000.00), upon
execution of this agreement. Manager may be reimbursed for additional moving
expenses, up to a maximum of FIVE THOUSAND DOLLARS ($5,000.00) upon
presentation of satisfactory documentation of such expenses, consistent with IRS rules
regarding allowable expenses. Any questions or disputes regarding the sufficiency or
validity of documentation under this section shall require Council approval of
reimbursement. A receipt from a licensed moving company or vehicle rental company
shall constitute satisfactory documentation and is not subject to dispute.
Secflon 3. Term And Termination.
A. Term. The term of Manager's employment under this Agreement shall
begin on the Effective Date and end three years after the Effective Date, unless
extended in writing or terminated as provided in this Agreement. The City and Manager
CITY MANAGER AGREEMENT PAGE 2
50748WMVM03572
9
shall advise the other party of their intent to seek negotiation of a renewal or extension
of this Agreement, no later than sixty (60) days before the expiration of this Agreement.
B. Termination. Manager's employment under this Agreement is terminable
at will and at any time by City, without any notice of any kind whatsoever, with or without
cause, it being expressly and explicitly understood and agreed by Manager that he
holds the position of City Manager and serves as City Manager at the will of the Council.
Manager acknowledges that any action by the Council in connection with terminating
Manager's employment under this Agreement is not subject to any administrative or
grievance procedure, and Manager hereby waives the benefit of any right to notice, pre-
or post- termination hearing or any other procedure that may now or hereafter apply to
any such action by the Council or be available to other City employees, Upon
termination from employment, Manager shall be paid his monthly salary prorated down
to his final work day, including payment of unused accrued leave, and no further
compensation.
C. Resignation. Manager may resign his position upon thirty (30) days
written notice to City Council. Should Manager resign under this Agreement, he shall
be entitled to no additional compensation under this Agreement beyond the effective
date of his separation, other than accrued but unused paid time off in accordance with
the terms of this Agreement. At its option, the City may release Manager from his
obligation to continue to working through the notice period upon payment of salary
through the effective resignation date; however, on no account shall Manager receive
compensation in lieu of service for a period longer than thirty (30) days regardless of the
length of notice provided by Manager. In the event Manager resigns prior to the
expiration of this Agreement, Manager shall be obligated to reimburse City for all
moving expenses and costs advanced or reimbursed by the City. The City, in its sole
discretion, may waive this obligation, in writing, in the event circumstances warrant.
Section 4. tither Em to meat.
It is recognized that Manager must devote a great deal of time outside normal
office hours to business of the City, including but not limited to attendance at regular
and special City Council meetings. Normal work hours in a regular workweek
hereunder shall be construed to mean Monday through Friday, an 8-hour period
between 7:00 a.m. and 6:00 p.m. Manager shall not take nor undertake employment
with any other person, entity or business, without prior approval of the City Council.
Section 5. Indemnification by City.
The City shall indemnify, hold harmless and defend Manager against all claims
and liability which may result from any claim, action or suit by person based upon
alleged injury to or death of a person or alleged loss of or damage to property that may
occur or that may be alleged to have been caused by Manager in the course of
performance of his official duties during the duration of his employment with City under
this Agreement, provided, however, that City shall not be obliged to indemnify, hold
harmless or defend Manager against any such claim that was caused by Manager while
CITY MANAGER AGREEMENT PAGE 3
507486\1006\00808572
10
acting outside the course of performing his official duties, or from any false, deceptive,
dishonest or criminal act or omission under the laws and regulations oft United
States of America, the State of Alaska and/or any political subdivision thereof. The City
shall not be responsible for the defense costs or indemnification of any legal counsel or
costs or fees under this section unless Council approves reimbursement or payment of
those costs and fees in writing and before such costs and fees are incurred.
Section 6. General Provisions.
A. No Conflict of Interest. During the term of this Agreement, Manager will
note ter into any activity, employment or business arrangement is conflicts with
the best interests of the City, or otherwise interferes with performance of his duties
under this Agreement, as may be determined in the sole discretion of Council.
Manager shall comply with Seward City Code 2.01.020(a) and Alaska Statute 39.50.
Manager shall advise Council of any activity, employment or business arrangement he
is contemplating entering is might conflict or give the appearance of conflicting with
the City's interests; failure to do so may subject Manager to termination.
B. Choice of Law and Venue. Any controversy or claim arising out of or
related to this Agreement or the breach thereof shall be governed by the laws of the
State of Alaska, and the City of Seward, Alaska, and the venue for any legal
proceedings thereon shall be the Superior Court for the State of Alaska, Third Judicial
District.
C. EEEn�fi�reree ent. This Agreement supersedes all prior oral or written
agreements, if any, between Manager and City, and constitutes the entire agreement
between Manager and City and approved by the Council.
D. Modification or Amendment. This Agreement shall not be supplemented,
modified or amended, except by a written agreement signed by Manager and approved
by Council.
E. Seve.r a..o.i.I.J.1y. If any provision of this Agreement shall be declared invalid
.................................... ............ _
or unenforceable, the remainder of this Agreement shall continue in full force and effect.
IN WITNESS WHEREOF the City has caused this Agreement to be signed and
executed on its behalf by its Mayor, and duly attested by its City Clerk. Scott Meszaros
has signed and executed this Agreement for and on behalf of himself, both in duplicate,
as of the day and year first above written.
CITY OF SE WARD CITY MANAGER
4A
.............................. .............
David Squires, Mayor Scott Msz
4z
CITY MANAGER AGREEMENT PAGE 4
,sO-M 90 r 00000808 S 72
CITY OF SEWARD ATTEST:
Norm Regis, Acting City Manager Brenda Ballou, City Clerk
City Clerk
CITY MANAGER AGREEMENT PAGE 5
507486\1006\00808572
12
Sponsored by: Regis
CITY OF SEWARD, ALASKA
RESOLUTION 2019-045
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONTRACT WITH GMG GENERAL FOR THE SMIC HARBOR
IMPROVEMENTS PAVING PROJECT IN THE AMOUNT OF $669,496
PLUS A 10% CONTINGENCY, AND APPROPRIATING FUNDS
WHEREAS, in 2010 the City began construction of the Seward Marine Industrial Center
(SMIC)breakwater and upland development project using State grant funds; and
WHEREAS, the breakwater was completed in 2016; and
WHEREAS,in 2016 the City requested additional work within the project scope through a
change order; and
WHEREAS, the City replaced the North Dock fenders,replaced the anodes, installed a 10
Ton crane,added a new 315 foot Fisherman's Float,and widened the Travelift and Travelift pit;and
WHEREAS,as of April 1, 2019 there was approximately$800,000 remaining in the grant
funding; and
WHEREAS, the City utilized R&M Engineering and issued a bid to pave the North Dock,
the approach to Fisherman's Float and the Travelift runway up to the wash down pad; and
WHEREAS, the SMIC Harbor Improvement Paving Project was advertised for bids in
accordance with Seward City Code 6.10.210 and Seward City Code 6.10.215 and the lowest
responsive and responsible bidder was GMG General Inc. with a bid of$669,496; and
WHEREAS,a 10%contingency in the amount of$66,949.60 for unforeseen circumstances
is needed; and
WHEREAS, the SMIC grant funds may only be used towards SMIC infrastructure; and
WHEREAS, the remaining SMIC funds must be used and the project completed prior to
June 30, 2019.
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 a contract with GMG General Inc.in
substantially the form attached hereto, for paving services to complete the SMIC harbor
13
CITY OF SEWARD,ALASKA
RESOLUTION 2019-045
improvements paving project in the amount of$669,496.
Section 2. The amount of $669,496 plus a 10% contingency of $66,949.60 totaling
$736,445.60 is hereby appropriated from the SMIC State Grant fund reserves account no. 12333-
0000-3400 to the SMIC grant fund infrastructure account no. 12333-0000-8101.
Section 3.The contingency will be utilized only if required by change orders to the scope of
the project approved in writing in advance by the City Manager.
Section 4. This resolution is effective immediately.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24t'
day of April, 2019.
THE CITY OF SEWARD, ALASKA
David Squires, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Brenda J. Ballou, MMC
City Clerk
(City Seal)
14
Agenda Statement
Meeting Date: April 24, 2019
To: City Council
From: Norm Regis, Acting City Manager
Agenda Item: SMIC Paving Project
BACKGROUND & JUSTIFICATION:
In 2010 the City began construction of the SMIC breakwater and Upland Development using State
grant funds and utilizing the engineering services of R&M Consultants, The breakwater was
completed in,late 2016 and additional funds have since been used for upland development within the
project scope. To date, the City has used this grant to rebuild the North Dock fenders to include a
I O-ton crane, anodes, and a new float with electricity. The travel lift and travel lift pit were also
widened to accommodate larger vessels.
As of April 1, 2019, there was an estimated $800,000 remaining in this grant that needs to be
exhausted by June 30, 2019. The harbormaster has prioritized additional work to be completed at
SMIC with the expectation to use all grant funds available. 'I"he first and largest priority is to pave
the North Dock up to the Fisherman's Float as well as the travel lift runway.
The SMIC Paving Project consists of-
1. Base Bid Area I -45,930 square feet
2, Base Bid Area 2 -.- 29,430 square feet
3. Additive Alternate A (additional travel lift paving) -23,860 square feet
This project was advertised according to SCC 6.10.210 and SCC 6.10.215. A bid opening for the
project was held on Thursday April 18'h, at 1:30 pm. Four bids were received, and the results are
summarized below:
Contractor .. . Base Bid Additive Alternate A Total
..............
Granite 580,000.00 2 0,0()0.00 780,000.00
ni 585,000.00 220,000.00
805,000.00
Metco 489,727.27 198 151 M 687,878.27
478,565.00-"- .00
GMG General Inc.
ff19 6'�)--31
GMG General Inc. was the lowest,most qualified and responsive bidder with a total bid amount of
$669,496 including the Base Bid and Alternate A. A local prefierence was considered in the bid
received from Metco,but was not within the allowance of City Code.
INTENT:
Enter into a construction contract in the amount of$669,496 with GMG General Inc. for the SMIC
Paving project.
15
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan (3.5.1.2): Plan for adequate port infrastructure
1. that will serve the needs of users in the main industrial/Alaska Railroad X
Area and at the Seward Marine Industrial Center (SMIC).
2 Strategic Plan (page 7): Expand Development in the Seward Marine X
Industrial Center.
3. Other (list): X
FISCAL NOTE:
In addition to the construction contract amount of$669,496, a 10% contingency ($66,949.60) is
needed and will be utilized only if required by change orders to the scope of the project as approved
in advance by the City Manager. Total appropriation for this project is $736,445.60.
There are sufficient funds remaining in the State of Alaska grant for SMIC development that must be
exhausted not later than June 30, 2019.
Approved by Finance Department: tctCD
ATTORNEY REVIEW: Yes X No
RECOMMENDATION:
Council approve Resolution 2019- 045 authorizing the City Manager to enter into a construction
contract with GNG General Inc. the most qualified, responsive and lowest bidder, for the SMIC
Harbor improvement project and appropriate funds.
16
SECTION OOO5OO-CONTRACT
CITY OF SEVVARD. /\LASKA
SK0IC PAVING PROJECT
CONTRACT ("Contract"), between the City ufSeward, A|oaka, herein called the City, acting by and
through its City Manager, and upon signing; this document shall serve am the notice tu proceed, and
GMG General, Inc.
Company Name
8000 Petersburg St. Anchorage, AK 99507
Company Address (Street or PO Box, City, SXaba. Zip)
o/an Fl Individual RPadnerehip F]Joint Venture RSo|e Proprietorship MCorporation
incorporated under the |avvm of the State of Alaska its successors and assiQna, herein oa||od
the Contractor, is effective the date of the signature of the City Manager on this document.
The Contraotor, for and in consideration of the payment or payments herein specified and agreed to by
the City, hereby covenants and agrees tofurnish and deliver all the materials and todoand perform all
the work and labor required in the construction of the above-referenced project as bid by the Con(rador,
which bid and prices nomed, together with the Contract Documents (am hereinafter defined) are made e
part of this Contract and accepted as such. It is distinctly understood and agreed that no claim for
additional work or materials, done or furnished by the Contractor and not specifically herein provided for,
will be oUovmsd by the City. nor shall the Contractor do any work or furnish any material not covered by
this Contnact, unless such work or materials is ordered in writing by the City. In no event shall the City be
liable for any materials furnished or used, or for any work or labor dnne, unless the materia|m, work, or
labor are required by the Contract or on written order furnished by the City. Any such work or materials
which may be done or furnished by the Contractor without written order first being given shall be at the
Contractor's own riak, ooat, and expense and the Contractor hereby covenants and agrees to make no
claim for compensation for work or materials done or furnished without such written order.
Notwithstanding the foregoing, payment under this Contract ohe|| not exceed Six hundred sixty nine
thousand four hundred ninety six dW|orm ( for all base items, additive alternates and
additional work.
The Contractor further covenants and agrees that all materials shall be furnished and delivered and all
work and labor shall be done and performed, in every respect, to the satisfaction of the City, on or before:
or within calendar days following the date of notice to proceed. It is expressly
understood and agreed that in case of the failure on the pad of the Contnador, for any reaaon, except
with the written consent of the City, to complete the furnishing and delivery of materials and the doing and
performance of the work before the aforesaid date, the City shall have the right to deduct from any money
due or which may become due the Contractor, or if no money shall be due, the City shall have the right to
recover One Thousand Five Hundred dollars ($_15D{l{X}__) per day for each calendar day elapsing
between the time stipulated for the completion and the actual date of completion in accordance with the
terms hereof; such deduction tobe made, or sum toberecovered, not mmo penalty but ealiquidated
damages. Prcwided, hom/ever, that upon receipt of written notice from the Contractor of the existence of
causes over which the Contractor has no control and which must delay furnishing of materials or the
completion of the work, the Contracting Officer may, at his or her discretion, extend the period specified
for the furnishing of materials or the completion of the vvork, and in such ooae the Contractor shall
become liable for liquidated damages for delays commencing from the date on which the extended period
expires.
The bonds given by the Contractor in the sum of $E6{\4G&L{Dl Performance and Payment Bond. and
$6K69\496.00_Performance Bond, to secure the proper compliance with the terms and provisions of this
SKO|C Paving CONTRACT
Section D8U6DO Page 1
SECTION oon5nU -CONTRACT
Contract, are submitted herewith and made a part hereof.
The Contractor further covenants and a0nsea that the entire construction will be done under the
administration of and to the ommp|eha satisfaction of the City subject to the inspection at all times and
approval by any regulatory agency of the Loco|. State, or Federal Government of the United States of
America, and in accordance with the laws of the State of Alaska and the City of Seward.
For purposes of this Contract, Contracting Officer means Norm Regis or any other
person designated by the City Manager.
The Contractor is an independent contractor and not an employee or agent of the City.
Contract Documents shall have the meaning ascribed by the General Conditions of the Construction
Contnsot, and include but are not limited to this Contract, the General Conditions of the Construction
Contract, Modifications to the General Conditions, the Special Provimiona, and the following listed
documents:
(1) Bid Plans and Sheet Specifications (2)
IN WITNESS WHEREOF the parties hereto have executed this Contract and agree to its terms and
conditions.
CONTRACTOR
Company Name
Signature of Authorized Company Representative
Typed Name and Title
0 14 Ig-Z. A7_0 I C-)
Date
CITY OF SEVVARD
Signature of City Manager
Typed Name
Data
City Clerk
(ATTEST)
SKD|C Paving CONTRACT
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City of Seward
SMIC Paving
m �
CONTRACT DOCUMENTS
Bid Set
March 2019
Prepared by:
R&M Consultants, Inc.
9101 Vanguard Drive
Anchorage, AK 99507
(907) 522-1707
23
TABLE OF CONTENTS
DIVISION 0 - BIDDING AND CONTRACT REQUIREMENTS, CONTRACT FORMS, CONDITIONS OF
THE CONTRACT
BIDDING and CONTRACT REQUIREMENTS
000030 Public Notice— Invitation for Bids
000100 Information to Bidders
000200 Required Documents
000300 Bid Form
000305 Bid Modification Form
000310 Bid Schedule
000320 Bid Bond
000360 Statement of Qualifications
CONTRACTFORMS
000500 Contract
000610 Performance Bond
000620 Payment Bond
000630 Tax Compliance Certification— Kenai Peninsula Borough
000640 City Business License Application
000660 Subcontractor List
CONDITIONS OF THE CONTRACT
000700 General Conditions
000800 Modifications to the General Conditions
000900 Special Provisions
DRAWINGS (Bound Separately)
City of Seward SMIC Paving
END OF Table of Contents
SMIC Paving TABLE OF CONTENTS
Pagel
24
SECTION 000030 - PUBLIC NOTICE - INVITATION TO BID
CITY OF SEWARD, ALASKA
Public Notice— Invitation for Bids
SMIC Paving
The City of Seward desires to receive bids from qualified contractors to install asphalt pavement at the
Seward Marine Industrial Center(SMIC) in Seward, Alaska.
The scope of work under the Base Bid generally includes providing 45,930 SF of asphalt pavement and
base course at the North Dock and Barge Ramp and 29,430 SF of thickened asphalt pavement and base
course at the Travelift Runway. In addition, water valve boxes and storm drain manhole rims will be
adjusted to finished grade.
One Additive Alternate will be considered for inclusion in the contract, pending available funding:
• Additive Alternate A: Install an additional 23,860 SF of thickened asphalt pavement and base
course at the Travelift Runway.
All work under this contract must be completed by June 15, 2019.
An optional pre-bid site visit will be held at the Seward Marine Industrial Center, 700 Nash Road, Seward,
Alaska, on April 9, 2019 at 1:OOpm.
The bid documents are available at the office of the Engineer. Electronic copies are available for no
charge. Paper copies can be made available from a local reproduction company at the Contractor's
expense. To receive a copy of the bid documents and to be considered a Plan Holder contact Jessica
Koloski at 907-646-9600 or by email at JKoloski@RMConsult.com. The City will not be responsible for
errors in bids due to the bidders receipt of bid documents or addenda from other sources.
All bids including any amendments or withdrawals must be received and time-stamped at the City of
Seward prior to 1:OOpm on April 18, 2019. Electronic or faxed bids will not be accepted. Bids shall be
submitted on the forms furnished and must be in a sealed envelope marked as follows:
BID FOR: CITY CLERK
City of Seward P.O. BOX 167
SMIC Paving 410 ADAMS STREET
SEWARD, ALASKA 99664
The bids will be opened publicly in the City Council Chambers located at 410 Adams Street, Seward, AK
99664 beginning at 1:30pm on April 18, 2019.
The contract shall be let by the Seward City Council to the lowest qualified responsive and responsible
bidder. The selection of the qualified bidder will be at the sole discretion of the City of Seward, and the
City reserves the right to reject any and all bids or not to award a contract if deemed in the best interest of
the City. This solicitation does not commit the City of Seward to pay any costs incurred in the preparation
of the bid or to award any contract.
All questions relating to technical matters, bid procedures or other aspects of the project should be
directed to the following: Kimberly Nielsen, P.E. (Phone: 907-646-9602 or by e-mail:
KNielsen@RMConsult.com). All questions must be received no later than midnight on April 15, 2019.
SMIC Paving PUBLIC NOTICE - INVITATION TO BID
Section 000030 Page 1
25
SECTION 000100 - INFORMATION TO BIDDERS
CITY OF SEWARD, ALASKA
Information to Bidders
SMIC Paving
The City of Seward, Alaska, is concerned over the manner in which Bids are submitted. Bidders are
requested to study and follow the bid assembly instructions as to the method and form for submitting bids
so there will be no reason to reject a bid.
1.00 CONTRACTING OFFICER
Norm Regis
Harbormaster/Project Manager, City of Seward
1.01 EXAMINATION OF CONTRACT REQUIREMENTS
Bidders are expected to examine carefully all documents incorporated in the contract to
determine the requirements thereof before preparing bids.
Any explanation desired by bidders regarding the meaning or interpretation of any provisions
must be requested in writing and with sufficient time allowed for reply to reach them before the
submission of their bid. Oral explanations or instructions given before the award of the contract
will not be binding. Any interpretation made will be in the form of an addendum to the contract
documents and will be furnished to all bidders. A receipt of each addendum received by the
bidder must be acknowledged.
1.02 CONDITIONS AT SITE OF WORK
Bidders are expected to visit the site to ascertain pertinent local conditions such as the location,
accessibility and characteristics of the site, labor conditions, and extent of the existing work within
or adjacent thereto, and any other work being performed thereon.
1.03 PREPARATION OF BIDS
(a) Bids shall be submitted on the forms furnished or copies thereof, and must be manually
completed and signed in ink. If erasures or other changes appear on the forms, each such
erasure or change must be initialed by the person signing the bid.
(b) The bid schedules will provide for the quotation of a lump sum bid for price or as otherwise
specified in the bid schedules. As required on the bid form, bidders must quote on all items.
(c) The bidder shall specify all numbers in words and figures, for each required bid item total. All
the words and figures shall be in ink or typed. In case of a discrepancy between the prices
written in words and those written in figures, the prices written in words shall govern.
(d) Telegraphic or facsimile bids or modifications will not be considered.
(e) All bids or modifications shall be submitted as one original and two copies.
1.04 IRREGULAR BID PROPOSALS
The City will consider a proposal to be irregular and may reject such a proposal as nonresponsive
if:
(a) the proposal is submitted on a non-approved form (or format, if computer generated), or is
altered.
SMIC Paving INFORMATION TO BIDDERS
Section 000100 Page 1
26
SECTION 000100 - INFORMATION TO BIDDERS
(b) The proposal is not properly signed
(c) Unauthorized additions, conditional or alternate bids, or other irregularities make the proposal
incomplete, indefinite, or ambiguous.
(d) The proposal lacks required bid escrow documentation or other required documentation.
(e) The proposal fails to furnish properly executed proposal guarantee of the character and
amount required.
(f) An individual, firm, or corporation under the same or different name submits more than one
proposal for the same work.
(g) There is evidence of collusion among bidders. Collusion participants are not recognized as
bidders for future work until they are re-qualified.
(h) The proposal omits a unit and total price for any estimated pay item, except for authorized
alternate bid items.
(i) The proposal is materially unbalanced.
Q) Mathematically unbalanced bids that are "front loaded" in which an advance payment
condition would exist.
(k) Other mathematically unbalanced bids may also be rejected when determined to be in the
best interest of the City.
(1) Bidder fails to sign the non-collusive bidding certification.
(m) The proposals fails to meet any other material requirement of the invitation for bids.
(n) Telegraphic or facsimile bids will not be considered.
1.05 BID SECURITY
Bid shall be accompanied by a bid security in the form of an acceptable Bid Bond, or certified
check, cashier's check or money order made payable to the City of Seward. The amount of the
bid security is 5% of the total amount bid, not to exceed $50,000. (Additive bid items appearing
on the bid schedule shall be included as part of the total amount bid when determining the
amount of bid guaranty for the project).
BID BONDS MUST BE ACCOMPANIED BY A LEGIBLE POWER OF ATTORNEY
If the bidder fails to furnish an acceptable bid security with the bid, the bid shall be rejected as
non-responsive. Telegraphic notification of execution of a Bid Bond does not meet the
requirements of bid security accompanying the bid. No individual surety will be accepted in lieu of
Bid Bond, Certified Check, Cashier's Check or Money Order.
The bid securities of the two lowest bidders will be held by the City until the contract has been
executed, after which such bid securities will be returned. All other bid securities will be returned
as soon as practicable.
If all bids are rejected, all bid securities will be returned as soon as practicable.
1.06 BIDDER'S QUALIFICATIONS
The bidder is to include a statement of facts, in detail, as to its previous experience in performing
comparable work, his business and technical organization, as outlined in the Statement of
SMIC Paving INFORMATION TO BIDDERS
Section 000100 Page 2
27
SECTION 000100 - INFORMATION TO BIDDERS
Qualifications, required with the Bid Section. The purpose of this information is to help establish
that the bidder and its subcontractors are responsible and qualified to perform the work.
1.07 SUBMISSION OF BIDS
All bids including any amendments or withdrawals must be received and time-stamped at the City
of Seward prior to Bid Closing at 1:OO1)m on April 18, 2019. Electronic or faxed bids or bid
modifications will not be accepted. Bids shall be submitted on the forms furnished and must be in
a sealed envelope marked as follows:
BID FOR: CITY CLERK
City of Seward P.O. BOX 167
SMIC Paving 410 ADAMS STREET
SEWARD, ALASKA 99664
Bids, bid modifications, or withdrawals transmitted by mail must be received in the above
specified post office box no later than 60 minutes prior to the scheduled time of Bid Closing.
Hand-delivered bids, bid modifications or withdrawals must be received by the City Clerk at the
above specified physical address prior to Bid Closing.
1.08 ADDENDA REQUIREMENTS
The bid documents provide for acknowledgment individually of all addenda to the bidding
documents on the signature page of the Bid. All addenda shall be acknowledged on the Bid or by
telegram or facsimile prior to the scheduled time of bid opening. If no addenda are received by
the bidder, the word "None"should be shown as specified.
1.09 RECEIPT AND OPENING OF BIDS
(a) All bids, including any Amendment, must be received by the City prior to the schedule time of
the applicable bid opening. Any bid, Amendment, or withdrawal which has not been actually
received by the City prior to the time of the scheduled bid opening will not be considered.
(b) No responsibility will be attached to any officer or employee of the City for the premature
opening of, or failure to open, a bid improperly addressed or identified.
(c) The City reserves the right to waive any technicality in bids received when such waiver is in
the interest of the City.
(d) Selection of the low bidder will be made as described in the Special Conditions, Paragraph
900.12.
1.10 WITHDRAWAL OF BIDS
Bids may be withdrawn by written request received from the bidders prior to the time fixed for
opening. Negligence on the part of the bidder in preparing the bid confers no right for the
withdrawal of bid after it has been opened.
1.11 BIDDERS PRESENT
At the time fixed for bid opening, each bid will be opened and be made public.
1.12 REJECTION OF BIDS
The City reserves the right to reject any and all bids or not to award a contract when such
rejection is in the best interest of the City; to reject the bid of a bidder who has previously failed to
perform properly, or complete on time, contracts of similar nature; to reject the bid of a bidder who
SMIC Paving INFORMATION TO BIDDERS
Section 000100 Page 3
28
SECTION 000100 - INFORMATION TO BIDDERS
is not, in the opinion of the Contracting Officer, in a position to perform the contract; and to reject
a bid as non-responsive where the bidder fails to furnish the required documents, fails to
complete required documents in the manner directed, makes unauthorized alterations to the bid
documents or is deemed non-responsive to performance criteria. The City reserves the right to
reject any bids from a bidder found to be not responsible pursuant to SCC 6.10.135.
1.13 BIDDERS PREFERENCE (CITY CODE)
Seward City Code 6.10.230— Bid Award.
The contract shall be let by the City Council to the lowest qualified responsive and responsible
bidder; provided, that if the lowest bids are approximately equal, that is within the lesser of
$5,000.00 or five percent of each other, preference may be given to local bidders who maintain
and operate businesses within the boundaries of the Seward electrical utility service area. Local
preference will be applied to the bid process except when specifically excluded within the request
for bids. The city council may reject any or all bids and may waive minor irregularities in the bids.
1.14 AWARD OF CONTRACT
(a) The City will provide the successful bidder a notice of intent to award a contract within 14
calendar days after the bid opening. However, the award of the contract is contingent upon
approval of the Seward City Council, and if such approval is not granted the notice of intent to
award becomes null and void.
(b) The contract award is also contingent upon receiving all City, Borough, State and Federal
permits.
(c) Following approval of the City Council, the contract will be awarded to the successful bidder
following receipt by the City of all required documents, properly executed within 14 calendar
days following confirmation to the Contractor that the Council has approved the award.
Failure to enter into a contract within the 14 day period shall be grounds for forfeiture of the
bid security and consideration of the second low bid for award.
1.15 PAYMENT AND PERFORMANCE BONDS
CONTRACTOR payment and performance bonds for the construction work are required. The
successful bidder shall furnish these bonds using the forms either provided or approved by the
City and in the amount of 100% of the total contract amount.
Payment and Performance Bonds may be either of the following:
(a) Corporate Surety. (Bonding Company)or,
(b) Individual Surety.
Adequacy of individual surety will be determined by the Contracting Officer. Where individual
sureties are used, two individual sureties must each provide the City of Seward with security
equal to the amount of each bond by use of an escrow account in the name of the City of Seward,
Alaska, for the duration of the contract, and for 90 days after final acceptance and settlement of
all outstanding claims. Acceptable securities should include, but not necessarily be limited to
cash, treasury notes, bearer instruments having a specific value and money market certificates.
Any costs incurred by the CONTRACTOR or individual surety shall be borne by the
CONTRACTOR.
An individual surety may be replaced by a Corporate Surety during the course of the contract
period. If the surety desires to dispose of the collateral posted, the City may, at its option, accept
substitute collateral.
SMIC Paving INFORMATION TO BIDDERS
Section 000100 Page 4
29
SECTION 000100 - INFORMATION TO BIDDERS
1.16 REQUIRED INSURANCE
The successful bidder must submit a certificate of insurance, showing the types of coverage and
limits of each, to the City before award can be made. Insurance coverage must contain worker's
compensation (AS 23.30.45) and any other policies specifically listed in the contract general
conditions and/or modifications to the general conditions and/or supplementary conditions. The
certificate of insurance must contain the stipulation that the City shall be given not less than 30
days written notice in the event of any material change, cancellation or expiration of the insurance
coverage listed.
1.17 INTERPRETATION OF CONTRACT DOCUMENTS PRIOR TO BIDDING
If any person submitting a bid is in doubt as to the true meaning of any part of the Bid Document,
he may submit to the Project Manager a written request for interpretation thereof not later than 7
days before the bids are to be opened:
(a) The person submitting the request shall be responsible for its prompt delivery.
(b) Interpretation or correction of the Bid Document will be made only by Addendum, and will
be mailed or delivered to each bidder of record.
(c) The City will not be responsible for any other explanations or interpretations of the Bid
Documents.
1.18 REGISTRATION
The bidder and its subcontractor(s) must be properly licensed and registered in the State of
Alaska to perform the work. A current business license is required from the State of Alaska and
City of Seward, along with the Kenai Peninsula Borough Tax Compliance Certification.
1.19 TITLE 36
Provisions of Alaska Title 36, Public Contracts, Laborers' and Mechanics' Minimum Rates of Pay,
AS 36.05.010 and AS 36.05.030 are applicable to this contract. Also, the provisions for hiring
preferences under AS 36.10.150—36.10.175 apply to this contract.
1.20 LIQUIDATED DAMAGES
Provisions for liquidated damages are set forth in the contract.
1.21 WORK PLAN
Provisions for submittal of a Work Plan, if required, are set forth in the contract.
1.22 DBE REQUIREMENTS
The bidder must comply with all local, State, and Federal laws.
1.23 EQUAL EMPLOYMENT OPPORTUNITY
Bidders are required to provide Equal Employment Opportunity (EEO), not discriminating against
employees or applicants because of race, religion, color, national origin, age, physical handicap,
sex, and marital status, changes in marital status, pregnancy or parenthood.
SMIC Paving INFORMATION TO BIDDERS
Section 000100 Page 5
30
SECTION 000200 - REQUIRED DOCUMENTS
I. DOCUMENTS REQUIRED WITH BID
A. In order to be considered a responsive and acceptable bid, the bidder must sign and
submit the following documents:
1. Bid Form (one original, two copies)
2. Bid Schedule (one original, two copies)
3. Bid Bond
4. Any bid revision must be mailed or hand-delivered prior to bid opening on
the following form: Bid Modification.
5. Statement of Qualifications
II. DOCUMENTS REQUIRED FOR AWARD
A. In order to be awarded the contract, the successful bid must be completely filled out and
the following documents submitted within the time specified in the notice of intent to
award letter.
1. Construction Contract
2. Payment Bond
3. Performance Bond
4. Certificate of Insurance
5. Kenai Peninsula Borough Tax Compliance Certification
6. Subcontractor List
B. In addition to the above, the CONTRACTOR must have a current Alaska Contractor's
license, a current Alaska Business License, and, if a corporation, must be registered in
Alaska. The successful bidder must have, or obtain, a current City of Seward Business
License
SMIC Paving REQUIRED DOCUMENTS
Section 000200 Page 1
31
BID FORM
City of Seward, Alaska
SMIC Paving
COMPANY NAME:
ADDRESS:
In compliance with your Invitation for Bid dated , the Undersigned proposes to
furnish and deliver all materials and do all the work and labor required in the construction of the above referenced
project, located at or near ,Alaska, according to the plans and specifications and for the amount
and prices named herein as indicated on the Bid Schedule consisting of sheets, which is made part of this
Bid.
The undersigned declares that he has carefully examined the contract requirements and that he has made a
personal examination of the site of the work;that he understands that the quantities,were such are specified in the
Bid Schedule or on the plans for this project, are approximate only and subject to increase or decrease, and that he
is willing to perform increased or decreased quantities of work at unit prices bid under the conditions set forth in the
Contract Documents.
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 accompanying bid guarantee shall be forfeited
to the Owner as liquidated damages, and the said Contracting Officer may proceed to award the contract to others.
The Undersigned aggress to commence the work within 7 calendar days, and to complete the work on or before
the Final Completion Date listed in the Special Provisions, Time of Completion, unless extended in writing by the
Contracting Officer.
The Undersigned acknowledges receipt of the following addenda to the Bid Documents (give number and date of
each).
ADDENDA NUMBER DATE ISSUED ADDENDA NUMBER DATE ISSUED
The Undersigned has read the foregoing bid and hereby agrees to the conditions stated therein by affixing his
signature below:
Bidding Company:
Signature: Title:
CONTRACTOR'S LICENSE NUMBER: EXPIRES:
BUSINESS ADDRESS: TELEPHONE:
32
BID MODIFICATION
City of Seward
Seward, Alaska
SMIC Paving
Modification Number:
Note: All revisions shall be made to the unadjusted bid amount(s)
Changes to the adjusted bid amounts will be computed by the Owner or Owner's Representative.
MAIL OR HAND-DELIVER ONLY. NO FAXED OR ELECTRONIC SUBMISSIONS WILL
BE ACCEPTED.
PAY PAY ITEM DESCRIPTION REVISION REVISION
ITEM TO UNIT BID TO BID
NO. PRICE +/- AMOUNT +/-
TOTAL REVISION: $
Name of Bidding Firm
Responsible Party Signature Date
This form may be duplicated if additional pages are needed. Page of
33
CITY OF SEWARD, ALASKA
BID SCHEDULE
SMIC Harbor Improvements - Paving
In accordance with the Contract Documents, Work furnished and constructed as described in the contract documents shall
be paid by Lump Sum, in accordance with the General Conditions.
Item Description Quantity Pay Unit Amount Bid
No. US$ El�
All
1 Base Bid: SMIC Paving Required Lump Sum $
Item Description Quantity Pa Unit Amount Amount Bid
No. US$
All
2 Additive Alternate A: SMIC Paving Required Lump Sum $
BID SUMMARY:
TOTAL (BASE BID + ADDITIVE ALTERNATE A) AMOUNT IN FIGURES: $
TOTAL (BASE BID +ADDITIVE ALTERNATE A) AMOUNT IN WORDS:
COMPANY NAME:
Signature: Date:
Title:
34
SECTION 000320 - BID BOND
CITY OF SEWARD
P.O. BOX 167 SEWARD, ALASKA 99664
BID BOND
DATE BOND EXECUTED
PRINCIPAL (Legal name and business address) TYPE OF ORGANIZATION
[ ] Individual [ ] Partnership
[ ] Joint Venture [ ] Corporation
SURETY(IES) (Name and business address)
PENAL SUM OF BOND DATE OF BID
NOW, THEREFORE,
(a) If said Bid shall be rejected, or in the alternate,
(b) If said Bid shall be accepted and the Principal shall execute and deliver a contract in the Form of
Contract attached hereto (properly completed in accordance with said Bid) and shall furnish a bond
for his faithful performance of said contract, and for the payment of all persons performing labor or
furnishing materials in connection therewith, and shall in all other respects perform the agreement
created by the acceptance of said Bid,
then this obligation shall be void, otherwise the same shall remain in force and effect, it being expressly
understood and agreed that the liability of the Surety for any and all claims hereunder shall in no event,
exceed the penal amount of this obligation as herein stated.
The Surety, for value received, hereby stipulates and agrees that the obligations of said Surety and its
bond shall be in no way impaired or affected any extension of the time within which the Owner may
accept such Bid: and said Surety does hereby waive notice of any such extension.
IN WITNESS WHEREOF, the Principal and the Surety have hereunto set their hands and seals, and such
of them as are corporations have caused their corporate seals to be hereto affixed and these presents to
be signed by their proper officers, the day and year first set forth above.
Principal Surety
(Seal)
SMIC Paving BID BOND
Section 000320 Page 1
35
SECTION 000360 -STATEMENT OF QUALIFICATIONS
BIDDING &CONTRACT REQUIREMENTS
This form will be the basis of establishing the qualifications of the Construction Team for undertaking a construction
project for the City of Seward.
This questionnaire forms a part of the bid and failure to submit is a basis for rejection of the bid. If space for answering
questions is insufficient, attachments are permitted.
1. GENERAL
a. Legal Name and Address of Bidding Organization:
b. Name, title, and telephone number of Bidder's representative for project:
C. Organization Status (Check One):
Corporation, Partnership, or Individual
d. If Organization is a Corporation:
Date of Incorporation:
State in which Incorporated:
Principal Officers:
Name: Title: Date Assumed Position
2. FINANCIAL
a. Have you ever failed to complete a contract due to insufficient resources?
Yes No If yes, explain:
SMIC Paving STATEMENT OF QUALIFICATIONS
Section 000360 Page 1
36
SECTION 000360 -STATEMENT OF QUALIFICATIONS
b. Describe any arrangements you have made to finance this work:
3. EQUIPMENT
a. Describe in detail the equipment you have available for this work.
ITEM QUAN. MAKE MODEL SIZE/ PRESENT
CAPACITY MARKET
VALUE
b. What percent of the total value of this contract do you intend to subcontract? %
C. Do you understand that if you are awarded this contract, you may be required to use some or all
of the equipment listed above on the work covered by this contract?
C. Do you propose to purchase any equipment for use on this project?
Yes No If yes, describe type, quantity, and approximate cost:
d. Do you propose to rent any equipment for this work?
Yes No If yes, describe type and quantity:
e. Is your proposal based on firm offers for all materials necessary for this project?
Yes No
4. EXPERIENCE
a. Have you had previous construction contracts or subcontracts with the City of Seward?
Yes No Describe the most recent or current contract, completion date, and scope
of work:
SMIC Paving STATEMENT OF QUALIFICATIONS
Section 000360 Page 2
37
SECTION 000360 -STATEMENT OF QUALIFICATIONS
b. List, as an attachment to this questionnaire, other construction projects you have completed; the
dates of completion, scope of work, and total contract amount, for each project completed in the past
12 months.
5. SUBCONTRACTORS/MATERIAL SUPPLIERS
List below all Subcontractors and major material suppliers. This listing does not fulfill the requirements of
paragraph 6.13.1 of the General Conditions of the Construction Contract, and award of a contract does not
constitute approval of the Subcontractors.
Name/address Subcontractor/Material Supplier Specialty
1.
2.
3.
4.
5.
1 hereby certify that the above statements are true and complete.
Dated at this day of 120
Name of Contractor
Signature Title of Person Signing
SMIC Paving STATEMENT OF QUALIFICATIONS
Section 000360 Page 3
38
SECTION 000500 -CONTRACT
CITY OF SEWARD, ALASKA
[PROJECT NAME AND NUMBER]
CONTRACT ("Contract"), between the City of Seward, Alaska, herein called the City, acting by and
through its City Manager, and upon signing; this document shall serve as the notice to proceed, and
Company Name
Company Address (Street or PO Box, City, State, Zip)
a/an ❑ Individual ❑Partnership ❑Joint Venture ❑Sole Proprietorship ❑Corporation
incorporated under the laws of the State of , its successors and assigns, herein called the
Contractor, is effective the date of the signature of the City Manager on this document.
The Contractor, for and in consideration of the payment or payments herein specified and agreed to by
the City, hereby covenants and agrees to furnish and deliver all the materials and to do and perform all
the work and labor required in the construction of the above-referenced project as bid by the Contractor,
which bid and prices named, together with the Contract Documents (as hereinafter defined) are made a
part of this Contract and accepted as such. It is distinctly understood and agreed that no claim for
additional work or materials, done or furnished by the Contractor and not specifically herein provided for,
will be allowed by the City, nor shall the Contractor do any work or furnish any material not covered by
this Contract, unless such work or materials is ordered in writing by the City. In no event shall the City be
liable for any materials furnished or used, or for any work or labor done, unless the materials, work, or
labor are required by the Contract or on written order furnished by the City. Any such work or materials
which may be done or furnished by the Contractor without written order first being given shall be at the
Contractor's own risk, cost, and expense and the Contractor hereby covenants and agrees to make no
claim for compensation for work or materials done or furnished without such written order.
Notwithstanding the foregoing, payment under this Contract shall not exceed
dollars ($ ) for all base items, additional work,
and change orders.
The Contractor further covenants and agrees that all materials shall be furnished and delivered and all
work and labor shall be done and performed, in every respect, to the satisfaction of the City, on or before:
or within calendar days following the date of notice to proceed. It is
expressly understood and agreed that in case of the failure on the part of the Contractor, for any reason,
except with the written consent of the City, to complete the furnishing and delivery of materials and the
doing and performance of the work before the aforesaid date, the City shall have the right to deduct from
any money due or which may become due the Contractor, or if no money shall be due, the City shall have
the right to recover dollars ($ ) per day for each calendar day
elapsing between the time stipulated for the completion and the actual date of completion in accordance
with the terms hereof; such deduction to be made, or sum to be recovered, not as a penalty but as
liquidated damages. Provided, however, that upon receipt of written notice from the Contractor of the
existence of causes over which the Contractor has no control and which must delay furnishing of
materials or the completion of the work, the Contracting Officer may, at his or her discretion, extend the
period specified for the furnishing of materials or the completion of the work, and in such case the
Contractor shall become liable for liquidated damages for delays commencing from the date on which the
extended period expires.
The bonds given by the Contractor in the sum of$ Payment Bond, and $
SMIC Paving CONTRACT
Section 000500 Page 1
39
SECTION 000500 -CONTRACT
Performance Bond, to secure the proper compliance with the terms and provisions of this Contract, are
submitted herewith and made a part hereof.
The Contractor further covenants and agrees that the entire construction will be done under the
administration of and to the complete satisfaction of the City subject to the inspection at all times and
approval by any regulatory agency of the Local, State, or Federal Government of the United States of
America, and in accordance with the laws of the State of Alaska and the City of Seward.
For purposes of this Contract, Contracting Officer means or any other
person designated by the City Manager.
The Contractor is an independent contractor and not an employee or agent of the City.
Contract Documents shall have the meaning ascribed by the General Conditions of the Construction
Contract, and include but are not limited to this Contract, the General Conditions of the Construction
Contract, the Supplementary Conditions, and the following listed documents:
(1) ; (2)
IN WITNESS WHEREOF the parties hereto have executed this Contract and agree to its terms and
conditions.
CONTRACTOR
Company Name
Signature of Authorized Company Representative
Typed Name and Title
Date
CITY OF SEWARD
Signature of City Manager
Typed Name
Date
City Clerk
(ATTEST)
SMIC Paving CONTRACT
Section 000500 Page 2
40
SECTION 000610 - PERFORMANCE BOND
For:
Project Name and Number
KNOW ALL WHO SHALL SEE 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 written
construction contract with the Owner, dated the day . 20 , for the
construction of the above-named project, said work to be done according to the terms of said contract.
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 counterparts, each one of
which shall be deemed an original, this day of 20_
PRINCIPAL: SURETY
By: By:
Address: Address:
Note: Date of Bond must not be prior to date of Contract. If Contractor is Partnership, all partners must
execute Bond.
SMIC Paving PERFORMANCE BOND
Section 000610 Page 1
41
SECTION 000620 - PAYMENT BOND
For:
Project Name and Number
KNOW ALL WHO SHALL SEE 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 written
construction contract with the Owner, dated the day . 20 , for the
construction of the above-referenced project, said work to be done according to the terms of the contract.
NOW, THEREFORE, the conditions of the foregoing obligation are such that if the said Principal shall
comply with all requirements of law and pay, as they become due, all just claims for the labor performed
and the materials and supplies furnished upon for the work under said contract, whether said labor be
performed and said materials and supplies be furnished under the original contract, any subcontract, or
any and all duly authorized modifications thereto, then these presents shall become null and void;
otherwise they shall 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 counterparts, each one of
which shall be deemed an original, this day of 20_
PRINCIPAL: SURETY
By: By:
Address: Address:
Note: Date of Bond must not be prior to date of Contract. If Contractor is Partnership, all partners must
execute Bond.
SMIC Paving PAYMENT BOND
Section 000620 Page 1
42
SECTION 000630 -TAX COMPLIANCE CERTIFICATION
Kenai Peninsula Borough
Tax Compliance Certification Form
SMIC Paving TAX COMPLIANCE CERTIFICATION
Section 000630 Page 1
43
144 N. Binkley
�' Soldotna, Alaska 99669-7599
may. BUSINESS: (907)714-2197 or (907)714-2175
z FAX: (907)714-2376
- TAX COMPLIANCE CERTIFICATION
FILL IN ALL INFORMATION REQUESTED, SIGN AND DATE, AND SUBMIT WITH BID OR PROPOSAL
Reason for Certificate: For(Dept.):
Date Rec'd by Finance: Business Name:
Owner Name(s): a. Individual
Business Mailing Address: b. Corporation
Telephone: Fax: c. Partnership
E-mail: d. Other
As a business or individual, have you ever conducted business or owned real or personal property within the Kenai Peninsula
Borough? Yes No (If yes, please supply the following account numbers and sign below. If no,please sign below.)
Kenai Peninsula Borough Code of Ordinances, Chapter 5.28.140, requires that businesses/individuals contracting to do business
with the Kenai Peninsula Borough be in compliance with Borough tax provisions. No contract will be awarded to any individual or
business who is found to be in violation of the Borough Code of Ordinances in the several areas of taxation.
TAX ACCOUNTS/STATUS
REAL/PERSONAL/BUSINESS PROPERTY ACCOUNTS (TO BE COMPLETED BY BOROUGH PERSONNEL)
Number Account Name YEAR LAST PAID BALANCE DUE
IN COMPLIANCE
YES ❑ NO ❑
Kenai Peninsula Borough Finance Dept (Signature Required) Date
TAX ACCOUNTS/STATUS
SALES TAX ACCOUNTS (TO BE COMPLETED BY BOROUGH PERSONNEL)
Number Account Name FILED THRU M/F's BALANCE DUE
IN COMPLIANCE
YES NO ❑
Kenai Peninsula Borough Sales Tax(Signature Required) Date
I, the hereby certify that,to the best of my knowledge, the above
(Name of Applicant) (Title)
information is correct as of
(Date) (Signature of Applicant-Required)
'*• CIF ANY BUSINESS IS CONDUCTED OR IS AWARDED A BID WITHIN THE KENAI PENINSULA BOROUGH YOU MUST
BE REGISTERED TO COLLECT SALES TAX. THE SALES TAX DEPARTMENT CAN BE REACHED AT (907)714-2175.
44
Revised 1/4/11
SECTION 000640 -CITY BUSINESS LICENSE APPLICATION
City of Seward
Business License Application Form
SMIC Paving CITY BUSINESS LICENSE APPLICATION
Section 000640 Page 1
45
CITY BUSINESS LICENSE APPLICATION
City of Seward < Payment in the amount of$30(Non-refundable annual fee)
City Clerk < Copy of State Business License or No._
P.O.Box 167 < Copy of Borough Sales Tax Registration Card or Registration No.
410 Adams Street < Copy of any required Occupational Licenses or No.
Seward,AK 99664 Your city business license will be issued within one week of the date the City Clerk has verified the above
and has received proof that all of your tax and other accounts with the City and the Kenai Peninsula
Telephone:907-224-4046 Borough are current. Annual renewals are due January 31&Seasonal(May 1-Sept.30)are due May 1st
Fax: 907-224-4038
If your business license application is submitted between January 1 and September 30,your license will be issued for the remainder of
that calendar year. If your application is submitted between October 1 and December 31,the license will be issued for the remaining
period of the year in which you applied and for all of the following calendar year. This does not apply to renewals.
Legal Name of Business Entity: Date:
Mailing Address for LICENSE&RENEWAL:
City: State: Zip: Telephone: Cell:
Email Addresses:
Please Describe Your Business Activity and how it will be conducted:
Physical Business Location in Seward:
Category: ❑Retail❑Tour Operator❑Transportation❑Communication Services ❑Professional Services
❑Charter❑Automotive ❑Construction❑Childcare ❑B&B/Nightly❑ Monthly rental/lodging
❑Engineering❑Educational❑Fourth of July Vendor❑Craft Shows/Special Events
❑Other
Owner Name(s):
Contact Name(s)
Please note Zoning Limitations:A business license does not authorize the holder to conduct business in violation of
any zoning ordinance.If the applicant ceases to engage in business or change its name,nature or business location,the
business license expires. You must provide a physical business location. (A post office box or mail drop is not a
physical business location.)
FOR OFFICE USE ONLY
CO ORATE OFFICERS Notice Sent: Accts.Verified:
President Zoning District: Use Allowed?
Vice President Note:
Secretary: Received(date&initials):
As Applicant,I ,certify or declare under penalty of perjury
under the laws of the State ofAlaska that the foregoing is true and correct.
Signature Printed Name Title Date
SUBCONTRACTOR LIST
Project Name and Number
The apparent low bidder shall complete this form and submit it so as to be received by the Contracting Officer prior to the close
of business on the fifth working day after receipt of notice from the Owner.
Failure to submit this form with all required information by the due date will result in the bidder being declared nonresponsive
and may result in the forfeiture of the Bid Security.
Scope of work must be clearly defined. If an item of work is to be performed by more than one firm, indicate the portion or
percent of work to be done by each.
Check as applicable: [ ] All Work on the above-referenced project will be accomplished without subcontracts
greater than 1/2 of 1%of the contract amount.
or
[ ] Subcontractor List is as follows:
LIST FIRST TIER SUBCONTRACTORS ONLY
FIRM NAME, AK BUSINESS LICENSE NO., SCOPE OF WORK TO
ADDRESS, CONTRACTOR'S BE PERFORMED
PHONE NO. REGISTRATION NO.
CONTINUE SUBCONTRACTOR INFORMATION ON REVERSE
I hereby certify the listed Alaska Business licenses and Contractor's registrations were valid at the time bids
were opened for this project.
Signature of Authorized Company Representative Title
Company Name Company Address(Street or PO Box,City,State,Zip)
Date Phone Number
Form 25D-5 (10/09) 47 Page 1 of 2
FIRM NAME, AK BUSINESS LICENSE NO., SCOPE OF WORK TO
ADDRESS, CONTRACTOR'S BE PERFORMED
PHONE NO. REGISTRATION NO.
Form 25D-5 (10/09) 48 Page 2 of 2
SECTION 000700 -GENERAL CONDITIONS OF THE CONSTRUCTION CONTRACT
CITY OF SEWARD, ALASKA
ARTICLE I - DEFINITIONS...........................................................................................................................4
ARTICLE 2 -AUTHORITIES & LIMITATIONS .............................................................................................7
2.1 Authorities and Limitations...........................................................................................................7
2.2 Evaluations by Contracting Officer..............................................................................................8
2.3 Means & Methods........................................................................................................................8
2.4 Visits to the Site/Place of Business.............................................................................................8
ARTICLE 3 - CONTRACT DOCUMENTS: INTENT, AMENDING, REUSE .................................................8
3.1 Incomplete Contract Documents.................................................................................................8
3.2 Copies of Contract Documents....................................................................................................8
3.3 Scope of Work.............................................................................................................................9
3.4 Intent of Contract Documents......................................................................................................9
3.5 Discrepancy in Contract Documents...........................................................................................9
3.6 Clarifications and Interpretations...............................................................................................10
3.7 Reuse of Documents.................................................................................................................10
ARTICLE 4 - LANDS AND PHYSICAL CONDITIONS ...............................................................................10
4.1 Availability of Lands...................................................................................................................10
4.2 Visit to Site.................................................................................................................................10
4.3 Explorations and Reports ..........................................................................................................10
4.4 Utilities .......................................................................................................................................10
4.5 Damaged Utilities.......................................................................................................................11
4.6 Utilities Not Shown or Indicated.................................................................................................11
4.7 Survey Control...........................................................................................................................12
ARTICLE 5- BONDS,. INSURANCE, AND INDEMNIFICATION...............................................................12
5.1 Delivery of Bonds.......................................................................................................................12
5.2 Bonds.........................................................................................................................................12
5.3 Replacement of Bond and Surety..............................................................................................12
5.4 Insurance Requirements............................................................................................................13
5.5 Indemnification...........................................................................................................................14
ARTICLE 6 - CONTRACTOR'S RESPONSIBILITIES................................................................................15
6.1 Supervision of Work...................................................................................................................15
6.2 Superintendence by CONTRACTOR........................................................................................15
6.3 Character of Workers.................................................................................................................15
6.4 CONTRACTOR to Furnish ........................................................................................................15
6.5 Materials and Equipment...........................................................................................................15
6.6 Anticipated Schedules...............................................................................................................15
6.7 Finalizing Schedules..................................................................................................................16
6.8 Adjusting Schedules..................................................................................................................16
6.9 Substitutes or"Or Equal" Items.................................................................................................16
6.10 Substitute Means and Methods.................................................................................................17
6.11 Evaluation of Substitution..........................................................................................................17
6.12 Dividing the Work.......................................................................................................................17
6.13 Subcontractors...........................................................................................................................17
6.14 Use of Premises ........................................................................................................................18
6.15 Structural Loading......................................................................................................................18
6.16 Record Documents....................................................................................................................18
6.17 Safety and Protection ................................................................................................................19
6.18 Safety Representative ...............................................................................................................19
6.19 Emergencies..............................................................................................................................19
6.20 Shop Drawings and Samples: ...................................................................................................19
6.21 Shop Drawing and Sample Review...........................................................................................20
6.22 Maintenance During Construction .............................................................................................21
6.23 Continuing the Work..................................................................................................................21
6.24 Consent to Assignment..............................................................................................................21
6.25 Use of Explosives......................................................................................................................21
SMIC Paving GENERAL CONDITIONS OF THE
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Section 000700 Page 1
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SECTION 000700 -GENERAL CONDITIONS OF THE CONSTRUCTION CONTRACT
6.26 CONTRACTOR'S Records........................................................................................................21
ARTICLE 7- LAWS AND REGULATIONS.................................................................................................22
7.1 Laws to be Observed.................................................................................................................22
7.2 Permits, Licenses, and Taxes....................................................................................................22
7.3 Patented Devices, Materials and Processes.............................................................................22
7.4 Compliance of Specifications and Drawings .............................................................................22
7.5 Accident Prevention...................................................................................................................23
7.6 Sanitary Provisions....................................................................................................................23
7.7 Business Registration................................................................................................................23
7.8 Professional Registration and Certification................................................................................23
7.9 Local Building Codes.................................................................................................................23
7.10 Air Quality Control......................................................................................................................23
7.11 Archaeological or Paleontological Discoveries..........................................................................23
7.12 Alaska Agricultural Products......................................................................................................23
7.13 Preferential Employment...........................................................................................................24
7.14 Wages and Hours of Labor........................................................................................................24
7.15 Overtime Work Hours and Compensation.................................................................................24
7.16 Covenant Against Contingent Fees...........................................................................................24
7.17 Officials Not To Benefit..............................................................................................................25
7.18 Personal Liability of Public Officials...........................................................................................25
ARTICLE 8- OTHER WORK......................................................................................................................25
8.1 Related Work At Site .................................................................................................................25
8.2 Access, Cutting, and Patching...................................................................................................25
8.3 Defective Work By Others .........................................................................................................26
8.4 Coordination ..............................................................................................................................26
ARTICLE9- CHANGES.............................................................................................................................26
9.1 CITY'S Right To Change...........................................................................................................26
9.2 Authorization of Changes within the General Scope.................................................................26
9.3 Directive.....................................................................................................................................26
9.4 Change Order............................................................................................................................27
9.5 Shop Drawing Variations...........................................................................................................27
9.6 Changes Outside the General Scope; Supplemental Agreement.............................................27
9.7 Unauthorized Work....................................................................................................................27
9.8 Notification of Surety..................................................................................................................27
9.9 Differing Site Conditions............................................................................................................28
ARTICLE 10- CONTRACT PRICE; COMPUTATION AND CHANGE.......................................................28
10.1 Contract Price............................................................................................................................28
10.2 Claim For Price Change ............................................................................................................28
10.3 Change Order Price Determination ...........................................................................................28
10.4 "Cost of the Work\......................................................................................................................29
10.5 Excluded Costs..........................................................................................................................30
10.6 CONTRACTOR's Fee................................................................................................................31
10.7 Cost Breakdown ........................................................................................................................31
10.8 Cash Allowances.......................................................................................................................31
10.9 Unit Price Work..........................................................................................................................31
10.10 Determinations for Unit Prices...............................................................................................32
ARTICLE 11 - CONTRACT TIME; COMPUTATION AND CHANGE.........................................................32
11.1 Commencement of Contract Time.............................................................................................32
11.2 Starting the Work.......................................................................................................................32
11.3 Computation of Contract Time...................................................................................................33
11.4 Time Change.............................................................................................................................33
11.5 Extension Due to Delays ...........................................................................................................33
11.6 Essence of Contract..................................................................................................................33
11.7 Reasonable Completion Time: ..................................................................................................33
11.8 Delay Damages.........................................................................................................................33
ARTICLE 12 -QUALITY ASSURANCE.......................................................................................................34
SMIC Paving GENERAL CONDITIONS OF THE
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SECTION 000700 -GENERAL CONDITIONS OF THE CONSTRUCTION CONTRACT
12.1 Warranty and Guaranty.............................................................................................................34
12.2 Access to Work..........................................................................................................................34
12.3 Tests and Inspections................................................................................................................34
12.4 Uncovering Work.......................................................................................................................35
12.5 CITY May Stop the Work...........................................................................................................35
12.6 Correction or Removal of Defective...........................................................................................35
12.7 One Year Correction Period ......................................................................................................35
12.8 Acceptance of Defective Work ..................................................................................................36
12.9 CITY May Correct Defective Work ............................................................................................36
ARTICLE 13- PAYMENTS TO CONTRACTOR AND COMPLETION.......................................................36
13.1 Schedule of Values....................................................................................................................36
13.2 Preliminary Payments................................................................................................................36
13.3 Application For Progress Payment............................................................................................37
13.4 Review of Application for Progress Payment............................................................................37
13.5 Stored Materials and Equipment...............................................................................................37
13.6 CONTRACTOR's Warranty of Title ...........................................................................................37
13.7 Withholding of Payments:..........................................................................................................37
13.8 Retainage...................................................................................................................................38
13.9 Request for Release of Funds...................................................................................................38
13.10 Substantial Completion..............................................................................................................38
13.11 Access Following Substantial Completion.................................................................................38
13.12 Final Inspection..........................................................................................................................38
13.13 Final Completion and Application for Payment..........................................................................39
13.14 Final Payment............................................................................................................................39
13.15 Final Acceptance.......................................................................................................................39
13.16 CONTRACTOR's Continuing Obligation ...................................................................................39
13.17 Waiver of Claims by CONTRACTOR........................................................................................40
13.18 No Waiver of Legal Rights.........................................................................................................40
ARTICLE 14-SUSPENSION OF WORK, DEFAULT AND TERMINATION.............................................40
14.1 CITY May Suspend Work..........................................................................................................40
14.2 Default of Contract.....................................................................................................................40
14.3 Rights or Remedies...................................................................................................................42
14.4 Convenience Termination..........................................................................................................42
ARTICLE 15-CLAIMS AND DISPUTES....................................................................................................44
15.1 Notification.................................................................................................................................44
15.2 Presenting Claim .......................................................................................................................44
15.3 Claim Validity, Additional Information, and Project Manager's Actions.....................................44
15.4 Contracting Officer's Decision ...................................................................................................44
15.5 Notice of Appeal ........................................................................................................................45
15.6 City Manager's Decision............................................................................................................45
ACKNOWLEDGMENT
This document is adapted for City of Seward use from "The State of Alaska, General Conditions of the
Construction Contract for Buildings" which is based on the "Standard General Conditions of the
Construction Contract" as published by the National Society of Professional Engineers (document number
1910-8, 1983 edition) on behalf of the Engineers Joint Construction Documents Committee. Portions of
the NSPE General Conditions are reprinted herein by the express permission of NSPE to the State of
Alaska. Modifications to the NSPE text are made to provide for State laws, regulations, and established
procedures.
The granting of permission by NSPE to allow the State of Alaska to reprint portions of the NSPE
document 1910-8, 1983 edition does not constitute approval of the State of Alaska General Conditions of
the Construction Contract for Buildings.
SMIC Paving GENERAL CONDITIONS OF THE
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SECTION 000700 -GENERAL CONDITIONS OF THE CONSTRUCTION CONTRACT
ARTICLE I - DEFINITIONS
Wherever used in the Contract Documents the following terms, or pronouns in place of them, are used,
the intent or meaning, unless a different intent or meaning is clearly indicated, shall be interpreted as set
forth below.
The titles and headings of the Sections, Subsections and Articles herein are intended for convenience of
reference and shall not be considered as having bearing on their interpretation.
Whenever used in the Specifications or other Contract Documents the following terms have the meaning
indicated which are applicable to both the singular and plural thereof. Working titles which have a
masculine gender, are intended to refer to person of either sex.
Terms not defined below shall have their ordinary accepted meanings within the context which they are
used. "Webster's Third New International Dictionary of the English Language, Unabridged, Copyright
1961," or subsequent revision thereof shall provide ordinarily accepted meanings. Words which have a
well-known technical or trade meaning when used to describe work, materials or equipment shall be
interpreted in accordance with such meaning. Words defined in Article 1 are capitalized throughout these
General Conditions.
Addenda - All clarifications, corrections, or changes issued graphically or in writing by the CITY after the
advertisement but prior to the opening of proposals.
Advertisement - The public announcement, as required by law, inviting bids for work to be performed or
materials to be furnished.
Application for Payment - The form provided by the CITY which is to be used by the CONTRACTOR in
requesting progress or final payments and which is to include such supporting documentation as is
required by the Contract Documents.
Approved or Approval - Means written approval by the Contracting Officer or his authorized
representative as defined in Article 2.1.
A.S. - Initials which stand for Alaska Statute.
Award -The acceptance, by the City, of the successful bid.
Bid Bond -A type of Proposal Guaranty.
Bidder - Any individual, firm, corporation or any acceptable combination thereof, or joint venture
submitting a bid for the advertised Work.
Calendar Day- Every day shown on the calendar, beginning and ending at midnight.
Change Order - A written order by the CITY directing changes to the Contract Documents, within their
general scope.
CITY-The City of Seward. References to "Owner," and "Contracting Agency," mean the CITY.
Conditions of the Contract - Those portions of the Contract Documents which define the rights and
responsibilities of the contracting parties and of others involved in the Work. The Conditions of the
Contract include General Conditions, Supplementary Conditions and other conditions.
SMIC Paving GENERAL CONDITIONS OF THE
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Section 000700 Page 4
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SECTION 000700 -GENERAL CONDITIONS OF THE CONSTRUCTION CONTRACT
Consultant - The person, firm, or corporation retained directly by the CITY or its Project Manager to
prepare Contract Documents, perform construction administration services, or other Project related
services.
Contract - The written agreement between the CITY and the CONTRACTOR setting forth the obligations
of the parties and covering the Work to be performed, all as required by the Contractor Documents.
Contract Documents - The Contract form, Addenda, the bidding requirements and CONTRACTOR'S bid
(including all appropriate bid tender forms), the bonds, the Conditions of the Contract and all other
Contract requirements, the Specifications, and the Drawings furnished by the CITY to the
CONTRACTOR, together with all Change Orders and documents approved by the Contracting Officer for
inclusion, modifications and supplements issued on or after the Effective Date of the Contract
Contracting Officer - The person authorized by the City of Seward to enter into and administer the
Contract on behalf of the CITY. He has authority to make findings, determinations and decisions with
respect to the Contract and, when necessary, to modify or terminate the Contract. The Contracting Officer
is identified on the construction Contract.
Contractor - The individual, firm, corporation or any acceptable combination thereof, contracting with the
CITY or performance of the WORK.
Contract Price - The total moneys payable by the CITY to the CONTRACTOR under the terms of the
Contract Documents.
Contract Time - The number of Calendar Days or the day specified in the construction Contract and
authorized time extensions which identify how much time the CONTRACTOR is allowed to achieve Final
Completion.
Defective - An adjective which refers to WORK that is unsatisfactory, faulty or deficient, or does not
conform to the Contract Documents, or does not meet the requirements of any inspection, reference
standard, tests or approval referred to in the Contract Documents, or has been damaged prior to the
CITY's approval of final payment.
Directive - A written communication to the CONTRACTOR from the Contracting Officer interpreting or
enforcing a Contract requirement or ordering commencement of an item of work.
Drawings - The drawings which show the character and scope of the Work to be performed and which
have furnished the CITY or the DEPARTMENT's Consultant and are by reference made a part of the
Contract Documents.
Effective Date of the Contract-The date on which the Contract is fully executed by both CONTRACTORS
and the CITY.
Final Acceptance — The CITY's written acceptance of the Work following Final Completion and the
performance of all Contract requirements by the Contractor.
Final Completion - The Work (or specified part thereof) has progressed to the point that all work is
complete as determined by the Contracting Officer.
General Requirements - Sections of Division 1 of the Specifications which contain administrative and
procedural requirements as well as requirements for temporary facilities which apply to Specification
Divisions 2 through 16.
Holidays- In the City of Seward, Holidays occur on:
1. New Years Day-January 1 2. President's Day-Third Monday in February
SMIC Paving GENERAL CONDITIONS OF THE
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SECTION 000700 -GENERAL CONDITIONS OF THE CONSTRUCTION CONTRACT
3. Seward's Day- Last Monday in March 4. Memorial Day- Last Monday in May
5. Independence Day-July 4 6. Labor Day- First Monday in September
7. Alaska Day- October 18 8. Veteran's Day- November 11
9. Thanksgiving Day- Fourth Thursday in November 10. Friday Following Thanksgiving Day- Fourth
Friday in November
11. Christmas Eve - December 24 Half Day 12. Christmas Day- December 25
13. Every day designated by public proclamation by the Seward City Council.
If any Holiday listed above falls on a Saturday, Saturday and the preceding Friday are both legal
Holidays. If the Holiday should fall on a Sunday, Sunday and the following Monday are both legal
Holidays.
Install - Means to build into the Work, ready to be used in complete and operable condition and in
compliance with Contract Documents.
Invitation for Bids-A portion of the bidding documents soliciting bids for the Work to be performed.
Notice of Intent to Award - The written notice by the CITY to all Bidders identifying the apparent
successful Bidder and establishing the CITY's intent to execute the Contract when all conditions required
for execution of the Contract are met.
Notice to Proceed -A written notice to the CONTRACTOR to begin the Work and establishing the date on
which the Contract Time begins.
Payment Bond - The security furnished by the CONTRACTOR and his Surety to guarantee payment of
the debts covered by the bond.
Performance Bond - The security furnished by the CONTRACTOR and his Surety to guarantee
performance and completion of the Work in accordance with the Contract.
Protect- The total construction, of which the Work performed under the Contract Documents is the whole
or a part, where such total construction may be performed by more than one CONTRACTOR.
Project Manager - The authorized representative of the Contracting Officer who is responsible for
administration of the Contract.
Proposal -The offer of a Bidder, on the prescribed form to perform the Work at the prices quoted.
Proposal Guaranty - The security furnished with a Proposal to guarantee that the bidder will enter into a
Contract if his Proposal is accepted by the CITY.
Regulatory Requirements- Laws, rules, regulations, ordinances, codes and/or orders.
Schedule of Values - The CITY's document, submitted by the CONTRACTOR and reviewed by the
Contracting Officer, which shall serve as the basis for computing payment and for establishing the value
of separate items of Work of which comprise the Contract Price.
Shop Drawings - All drawings, diagrams, illustrations, schedules and other data which are specially
prepared by or for the CONTRACTOR to illustrate some portion of the Work and all illustrations,
brochures, standard schedules, performance chart, instructions, diagrams and other information prepared
by a Supplier and submitted by the CONTRACTOR to illustrate material, equipment, fabrication, or
erection for some portion of the WORK.
Specifications - Those portions of the Contract Documents consisting of written technical descriptions of
materials, equipment, construction systems, standards and workmanship as applied to the Work and
certain administrative and procedural details applicable thereto.
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Subcontractor - An individual, firm, or corporation to whom the CONTRACTOR or any other
Subcontractor sublets part of the Contract.
Substantial Completion - Although not fully completed, the Work (or a specified part thereof) has
progressed to the point where, in the opinion of CITY as evidenced by the CITY's written notice, it is
sufficiently complete, in accordance with the Contract Documents, so that the Work(or specified part) can
be utilized for the purposes for which it is intended. The terms "Substantially Complete" and "Substantially
Completed" as applied to any work refer to Substantial Completion thereof.
Supplemental Agreement-A written agreement between the CONTRACTOR and the CITY covering work
that is not within the general scope of the Contract.
Supplementary Conditions - The part of the Contract Documents which amends or supplements these
General Conditions.
Supplier-A manufacturer, fabricator, distributor, materialman or vendor of materials or equipment.
Surety - The corporation, partnership, or individual, other than the CONTRACTOR, executing a bond
furnished by the CONTRACTOR.
Unit Price Work-Work to be paid for on the basis of unit prices.
Using Agency-The entity who will occupy or use the completed Work.
Work - Work is the act of, and the result of, performing services, furnishing labor, furnishing and
incorporating materials and equipment into the Project and performing other duties and obligations, all as
required by the Contract Documents. Such Work, however, incremental, will culminate in the entire
completed Project, or the various separately identifiable parts thereof.
ARTICLE 2 -AUTHORITIES & LIMITATIONS.
2.1 Authorities and Limitations:
2.1.1 The Contracting Officer alone shall have the power to bind the CITY and to exercise the rights,
responsibilities, authorities and functions vested in the Contracting Officer by the Contract Documents,
except that the Contracting Officer shall have the right to designate in writing authorized representatives
to act for him. Wherever any provision of the Contract Documents specifies an individual or organization,
whether governmental or private, to perform any act on behalf of or in the interests of the CITY that
individual or organization shall be deemed to be the Contracting Officer's authorized representative under
this Contract but only to the extent so specified. The Contracting Officer may, at any time during the
performance of this Contract, vest in any such authorized representatives additional power and authority
to act for the Contracting Officer or designate additional representatives, specifying the extent of their
authority to act for the Contracting Officer; a copy of each document vesting additional authority in or
removing that authority from an authorized representative or designating an additional authorized
representative shall be furnished to the CONTRACTOR. The City Manager reserves the right to appoint a
new Contracting Officer without affecting any of the CONTRACTOR's obligations to the CITY under this
Contract.
2.1.2. The Contractor shall perform the Work in accordance with any written order (including-but not
limited to instruction, direction, interpretation or determination issued by an authorized representative in
accordance with the authorized representative's authority to act for the Contracting Officer. The
CONTRACTOR assumes all the risk and consequences of performing the Work in accordance with any
order including but not limited to instruction, direction, interpretation or determination) of anyone not
authorized to issue such order, and of any order not in writing.
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2.1.3 Should the Contracting Officer or his authorized representative designate Consultant(s) to act for
the CITY as provided for in Paragraph 2.1.1, the performance or nonperformance of the Consultant under
such authority to act, shall not give rise to any contractual obligation or duty of the Consultant to the
CONTRACTOR, any Subcontractor, any Supplier, or any other organization performing any of the Work
or any Surety representing them.
2.1.4 The term "Contracting Officer" when used in the text of these General Conditions or other
Contract Documents following this section shall also mean any duly authorized representative of the
Contracting Officer when authorized in accordance with Paragraph 2.1.1.
2.2 Evaluations by Contracting Officer:
2.2.1 The Contracting Officer will decide all questions which may arise as to;
a. Quality and acceptability of materials furnished;
b. Quality and acceptability of Work performed;
C. Compliance with the schedule-of progress;
d. Interpretation of Contract Documents;
e. Acceptable fulfillment of the Contract on the part of the CONTRACTOR.
2.2.2 In order to avoid cumbersome terms and confusing repetition of expressions in the Contract
Documents the terms "as required," "as approved" or terms of like effect or import are used, or the
adjectives "reasonable," "suitable," "acceptable," "proper" or "satisfactory" or adjectives of like effect or
import are used it shall be understood as if the expression were followed by the words "the Contracting
Officer."
When such terms are used to describe a requirement, direction, review or judgment of the Contracting
Officer as to the Work, it is intended that such requirement, direction, review or judgment will be solely to
evaluate the Work for compliance with the Contract Documents (unless there is a specific statement
indicating otherwise).
2.2.3 The use of any such term or adjective shall not be effective to assign to the CITY any duty or
authority to supervise or direct the furnishing or performance of the Work or any duty or authority to
undertake responsibility contrary to the provisions of paragraphs 2.3 or 2.4.
2.3 Means & Methods: The means, methods, techniques, sequences or procedures of construction,
or safety precautions and the program incident thereto, and the failure to perform or furnish the Work in
accordance with the Contract Documents are the sole responsibility of the CONTRACTOR.
2.4 Visits to the Site/Place of Business: The Contracting Officer will make visits to the site and
approved remote storage sites at intervals appropriate to the various stages of construction to observe
the progress and quality of the executed Work and to determine, in general, if the Work is proceeding in
accordance with the Contract Documents. Such observations or the lack of such observations shall in no
way relieve the CONTRACTOR from his duty to perform the Work it accordance with the Contract
Documents.
ARTICLE 3-CONTRACT DOCUMENTS: INTENT, AMENDING, REUSE
3.1 Incomplete Contract Documents:
The submission of a bid by the Bidder is considered a representation that the Bidder examined the
Contract Documents to make certain that all sheets and pages were provided and that the Bidder is
satisfied as to the conditions to be encountered in performing the Work. The CITY expressly denies any
responsibility or liability for a bid submitted on the basis of an incomplete set of Contract Documents.
3.2 Copies of Contract Documents:
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The CITY shall furnish to the CONTRACTOR up to ten copies of the Contract Documents. Additional
copies will be furnished, upon request, at the cost of reproduction.
3.3 Scope of Work:
The Contract Documents comprise the entire Contract between the CITY and the CONTRACTOR
concerning the Work. The Contract Documents are complementary; what is called for by one is as binding
as if called for by all. The Contract Documents will be construed in accordance with the Regulatory
Requirements of the place of the Project.
It is specifically agreed between the parties executing this Contract that it is not intended by any of the
provisions of the Contract to create in the public or any member thereof a third party benefit, or to
authorize anyone not a party to this Contract to maintain a suit pursuant to the terms or provisions of the
Contract.
3.4 Intent of Contract Documents:
3.4.1 It is the intent of the Contract Documents to describe a functionally complete Project to be
constructed in accordance with the Contract Documents. Any work, materials or equipment that may
reasonably be inferred from the Contract Documents as being required to produce the intended result will
be supplied, without any adjustment in Contract Price or Contract Time, whether or not specifically called
for.
3.4.2 Reference to standard specifications, manuals or codes of any technical society, organization or
association, or to the Regulatory Requirements of any governmental authority, whether such reference be
specific or by implication, shall mean the edition stated in the Contract Documents or if not stated the
latest standard specification, manual, code or Regulatory Requirements in effect at the time of
Advertisement for the Project (or, on the Effective Date of the Contract if there was no Advertisement).
However, no provision of any referenced standard specification, manual or code (whether or not
specifically incorporated by reference in the Contract Documents) shall be effective to change the duties
and responsibilities of the CITY and the CONTRACTOR, or any of their consultants, agents or employees
from those set forth in the Contract Documents, nor shall it be effective to assign to the CITY or any of the
CITY's Consultants, agents or employees, any duty or authority to supervise or direct the furnishing or
performance of the Work or any duty or authority to undertake responsibility contrary to the provisions of
paragraphs 2.3 or 2.4.
3.5 Discrepancy in Contract Documents:
3.5.1. Before undertaking the Work, the CONTRACTOR shall carefully study and compare the Contract
Documents and check and verify pertinent figures, and dimensions she an thereon and all applicable field
measurements. Work in the area by the CONTRACTOR shall imply verification of figures, dimensions and
field measurements. If, during the above study or during the performance of the Work, the Contractor
finds a conflict, error, discrepancy or omission in the Contract Documents and any standard specification,
manual, code, or Regulator Requirement which affects the Work, the 3.5.1 CONTRACTOR shall promptly
report such discrepancy in writing to the Contracting Officer. The CONTRACTOR shall obtain a written
interpretation or clarification from the Contracting Officer before proceeding with any Work affected
thereby. Any adjustment made by the CONTRACTOR without this determination shall be at his own risk
and expense. However, the CONTRACTOR shall not be liable to the CITY for failure to report any
conflict, error or discrepancy in the Contract Documents unless the CONTRACTOR had actual knowledge
thereof or should reasonably have known thereof.
3.5.2 Discrepancy- Order of Precedence:
When conflicts, errors, or discrepancies within the Contract Documents exist, the order precedence from
most governing to least governing will be as follows:
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Contents of Addenda
Supplementary Conditions
General Conditions
General Requirements
Technical Specifications
Structure/Staking Data Sheets
Drawings (recorded dimensions will govern over scaled dimensions, large scale details over small scale,
schedules over plans, architectural drawings over structural drawings over mechanical and electrical
drawings)
3.6 Clarifications and Interpretations:
The Contracting Officer will issue with reasonable promptness such written clarifications or interpretations
of the requirements of the Contract Documents as the Contracting Officer may determine necessary,
which shall be consistent with or reasonably inferable from the overall intent of the Contract Documents.
3.7 Reuse of Documents:
Neither the CONTRACTOR nor any Subcontractor, or Supplier or other person or organization performing
or furnishing any of the Work under a direct or indirect contract with the CITY shall have or acquire any
title to or ownership rights in any of the Contract Documents on extensions of the Project or any other
project without written consent of the Contracting Officer.
Contract Documents prepared by the CONTRACTOR in connection with the Work shall become the
property of the CITY.
ARTICLE 4 - LANDS AND PHYSICAL CONDITIONS
4.1 Availability of Lands:
The CITY shall furnish as indicated in the Contract Documents, the lands upon which the Work is to be
performed, rights-of-way and easements for access thereto, and such other lands which are designated
for use of the CONTRACTOR in connection with the Work. Easements for permanent structures or
permanent changes in existing facilities will be obtained and paid for by the CITY, unless otherwise
provided in the Contract Documents. The CONTRACTOR shall provide for all additional lands and access
thereto that may be required for temporary construction facilities or storage of materials and equipment.
4.2 Visit to Site:
The submission of a bid by the CONTRACTOR is considered a representation that the CONTRACTOR
has visited and carefully examined the site and is satisfied as to the conditions to be encountered in
performing the Work and as to the requirements of the Contract Documents.
4.3 Explorations and Reports:
Reference is made to the Supplementary Conditions for identification of those reports of explorations and
tests of subsurface conditions at the site that have been utilized by the CITY in preparation of the
Contract Documents. The CONTRACTOR may for his purposes rely upon the accuracy of the factual
data contained in such reports, but not upon interpretations or opinions drawn from such factual data
contained therein or for the completeness or sufficiency thereof. Except as indicated in the immediately
preceding sentence and in paragraphs 4.4 and 9.9, CONTRACTOR shall have full responsibility with
respect to surface and subsurface conditions at the site.
4.4 Utilities:
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4.4.1 The horizontal and vertical locations of known underground utilities as shown or indicated by the
Contract Documents are approximate and are based on information and data furnished to the CITY by
the owners of such underground utilities.
4.4.2 The CONTRACTOR shall have full responsibility for:
a. Reviewing and checking all information and data concerning utilities.
b. Locating all underground utilities shown or indicated in the Contract Documents which are
affected by the Work.
C. Coordination of the Work with the owners of all utilities during construction.
d. Safety and protection of all utilities as provided in paragraph 6.17.
e. Repair of any damage to utilities resulting from the Work in accordance with 4.4.4 and 4.5.
4.4.3 If Work is to be performed by any utility owner, the CONTRACTOR shall cooperate with such
owners to facilitate the Work.
4.4.4 In the event of interruption to any utility service as a result of accidental breakage or as result of
being exposed or unsupported, the CONTRACTOR shall promptly notify the utility owner and the
Contracting Officer. If service is interrupted, repair work shall be continuous until the service is restored.
No Work shall be undertaken around fire hydrants until provisions for continued service has been
approved by the local fire authority.
4.5 Damaged Utilities:
When utilities are damaged by the CONTRACTOR, the utility owner shall have the choice of repairing the
utility or having the CONTRACTOR repair the utility. In the following circumstances, the CONTRACTOR
shall reimburse the utility owner for repair costs or provide at no cost to the utility owner or the CITY, all
materials, equipment and labor necessary to complete repair of the damage:
a. When the utility is shown or indicated in the Contract Documents.
b. When the utility has been located by the utility owner.
C. When no locate was requested by the Contractor for utilities shown or indicated in the
Contract Documents.
d. All visible utilities.
e. When the CONTRACTOR could have, otherwise, reasonably been expected to be aware
of such utility.
4.6 Utilities Not Shown or Indicated:
If, while directly performing the Work, an underground utility is uncovered or revealed at the site which
was not shown or indicated in the Contract Documents and which the CONTRACTOR could not
reasonably have been expected to be aware of, the CONTRACTOR shall, promptly after becoming aware
thereof and before performing any Work affected thereby (except in an emergency as permitted by
paragraph 6.19) identify the owner of such underground utility and give written notice thereof to that
owner and to the Contracting Officer. The Contracting Officer will promptly review the underground utility
to determine the extent to which the Contract Documents and the Work should be modified to reflect the
impacts of the discovered utility. The Contract Documents will be amended or supplemented in
accordance with paragraph 9.2 and to the extent necessary through the issuance of a change document
by the Contracting Officer. During such time, the CONTRACTOR shall be responsible for the safety and
protection of such underground utility as provided in paragraph 6.17. The CONTRACTOR may be
allowed an increase in the Contract Price or an extension of the Contract Time, or both, to the extent that
they are directly attributable to the existence of any underground utility that was not shown or indicated in
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the Contract Documents and which they CONTRACTOR could not reasonably have been expected to be
aware of.
4.7 Survey Control:
The CITY will identify sufficient horizontal and vertical control data to enable the CONTRACTOR to
survey and layout the Work. All survey work shall be performed under the direct supervision of a
registered land surveyor when required by paragraph 7.8. Copies of all survey notes will be provided the
CITY on a weekly basis with variations between the Contract Documents and actual field conditions
identified. Survey notes are to be in a format acceptable to the CITY.
ARTICLE 5- BONDS, INSURANCE, AND INDEMNIFICATION
5.1 Delivery of Bonds:
When the CONTRACTOR delivers the executed Contract to the Contracting Officer, the CONTRACTOR
shall also deliver to the Contracting Officer such bonds as the CONTRACTOR may be required to furnish
in accordance with paragraph 5.2.
5.2 Bonds:
The CONTRACTOR shall furnish Performance and Payment Bonds, each in an amount as shown on the
Contract as security for the faithful performance and payment of all CONTRACTOR's obligations under
the Contract Documents. These bonds shall remain in effect for one year after the date of Final
Acceptance and until all obligations under this Contract, except special guarantees as per 12.7, have
been met. All bonds shall furnished on forms provided by the CITY (or copies thereof) and shall be
executed by such Sureties as are authorized to do business in the State of Alaska. The Contracting
Officer may at his option copy the Surety with notice of any potential default or liability.
At the option of the CONTRACTOR, bonds may be provided by individual Surety the adequacy of which
shall be determined by the Contracting Officer. Any costs incurred by the CONTRACTOR or individual
Surety shall be borne by the CONTRACTOR. Where individual Sureties are used, two individual Sureties
must each provide the City of Seward with security equal to the amount of each bond by one, or a
combination of, the following methods:
a. Escrow account in the name of the CITY for the duration of the Contract. Acceptable securities
would include, but not necessarily be limited to: cash; treasury notes; bearer instruments having a
specific value, or; money market certificates.
b. First"Deed of Trust"with the CITY designated as beneficiary, against the unencumbered value
of the real property located within the State of Alaska, or an agreement by any second party,
including deeds of trust, mortgage, lien or judgment interests to subrogate their interest to that of
the City of Seward in the real property which has been offered by the individual Surety.
A title insurance policy with the City of Seward as a named beneficiary and a current (within 3
months)professional appraisal or assessed valuation will be required to ascertain the true value of the
property offered as collateral. If buildings or other valued improvements are involved then fire and
casualty insurance with the City of Seward as a named insured and in limits and coverages acceptable to
the Contracting Officers shall be required. The appraiser shall acknowledge in writing that the appraisal is
prepared for the benefit of the CITY and the CITY has the right to rely on its contents. This "Deed" must
be recorded in the recording office where the property is located.
With respect to clauses "a" and "b" above the "Deed of Trust" or other accepted security shall not be
released until 12 months after Final Acceptance of the Project and settlement of all outstanding claims.
5.3 Replacement of Bond and Surety:
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If the Surety on any bond furnished in connection with this Contract is declared bankrupt or becomes
insolvent or its right to do business is terminated in any state where any part of the Project is located or it
ceases to meet the requirements of paragraph 5.2, or otherwise becomes unacceptable to the CITY, or if
any such. Surety fails to furnish reports as to his financial condition as requested by the CITY, the
CONTRACTOR shall within five days thereafter substitute another bond and Surety, both of which must
be acceptable to CITY.
An individual Surety may be replaced by a corporate Surety during the course of the Contract period. If
the Surety desires to dispose of the collateral posted, the CITY may at its option, accept: substitute
collateral.
5.4 Insurance Requirements:
5.4.1 The CONTRACTOR shall provide evidence of insurance with a carrier or carriers satisfactory to
the CITY covering injury to persons and/or property suffered by the City of Seward or a third party, as a
result of operations which arise both out of and during the course of this Contract by the CONTRACTOR
or by any Subcontractor. This coverage will also provide protection against injuries to all employees of
the CONTRACTOR and the employees of any Subcontractor engaged in Work under this Contract. The
delivery to the CITY of a written 30 day notice is required before cancellation of any coverage or reduction
in any limits of liability. Insurance carriers shall have an acceptable financial rating.
5.4.2 The CONTRACTOR shall maintain in force at all times during the performance of services under
this agreement the following policies of insurance. Failure to maintain insurance may, at the option of the
Contracting Officer, be deemed Defective Work and remedied in accordance with the Contract. Where
specific limits and coverages are shown, it is understood that they shall be the minimum acceptable. The
requirements of this paragraph shall not limit the CONTRACTOR'S responsibility to indemnify under
paragraph 5.5. Additional insurance requirements specific to this Contract are contained in the
Supplementary Conditions, when applicable.
a. Workers' Compensation Insurance:
The CONTRACTOR shall provide and maintain, for all employees of the CONTRACTOR engaged in
Work under this Contract, Workers' Compensation Insurance as required AS 23.30.045. The policies shall
contain a "Waiver of Subrogation Clause" precluding the carrier or carriers from compensation from the
CITY. The CONTRACTOR shall be responsible for Workers' Compensation Insurance for any
Subcontractor who provides services under this Contract, to include:
1. Employer's Liability Protection in the amount of $100,000 per personal $1,000,000 per
occurrence;
2. Voluntary Compensation Endorsement.
3. If the CONTRACTOR directly utilizes labor outside of the State of Alaska in the prosecution
of the Work, "Other States" endorsement shall be required as a Condition of the Contract.
b. Comprehensive or Commercial General Liability Insurance:
shall cover all operations by or on behalf of the 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 5.5, Indemnification; broad form property damage; and personal injury liability.
The minimum limits of liability shall be:
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1. The CONTRACTOR shall carry Comprehensive General Liability policy, the limits of liability shall
not be less than a Combined Single Limit for bodily injury, property damage and Personal Injury Liability
of:
$2,000,000 each occurrence $10,000,000 aggregate
2. The CONTRACTOR shall carry Commercial General Liability policy, the limits of liability shall not
be less than:
$1,000,000 each occurrence (Combined Single Limit for bodily injury and property damage)
$2,000,000 for Personal Injury Liability
$10,000,000 aggregate for Products-Completed Operations
$10,000,000 general aggregate
C. Automobile Liability Insurance:
Such insurance shall cover all owned, hired and non-owned vehicles and provide coverage not less than
that of the Business Automobile Policy in limits not less than the following:
$1,000,000 each occurrence (Combined Single Limit for bodily injury and property damage.)
d. Builder's Risk Insurance:
Coverage shall be on an "All Risk" completed value basis including "quake and flood" and protect the
interests of the CITY, the CONTRACTOR and his Subcontractors. Coverage shall include all materials,
supplies and equipment that are intended for specific installation in the Project while such materials,
supplies and equipment are located at the Project site and in transit from port of arrival to job site and
while temporarily located away from the Project site.
In addition to providing the above coverages the CONTRACTOR shall ensure that Subcontractors
provide insurance coverages as noted in clauses a., b., and c. of this subparagraph. Builder's Risk
Insurance will only be applicable if so noted in the Supplementary Conditions.
e. Other Coverages: As specified in the Modifications to General Conditions:
The City of Seward shall be named as an "Additional Insured" under all liability coverages listed above,
and CONTRACTOR shall show proof of insurance.
5.4.3 Evidence, consisting of a certificate of insurance or the policy declaration page with required
endorsements attached thereto -- all of which have been executed by the insurer's representative and
issued to the CITY, shall denote the type, amount, class of operations covered, effective (and retroactive)
dates, and dates of expiration of policies.
Evidence pertaining to Worker's Compensation, General Liability, or Automobile Liability is required for
Award. All other coverages shall be evidenced prior to commencement of Work. Acceptance by the CITY
of deficient evidence does not constitute a waiver of Contract requirements as provided for by the
Conditions of the Contract.
If a certificate is submitted as evidence it shall contain the following statement:
"This is to certify that the policies described here to comply with all aspects of the insurance requirements
of(Contract Name and Number, and Project Number).
5.5 Indemnification:
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The CONTRACTOR shall indemnify, save harmless, and defend the CITY and its agents and its
employees from any and all claims or actions for injuries or damages sustained by any person or property
arising directly or indirectly from the construction or the CONTRACTOR's performance of this Contract;
however, this provision has no effect if, but only if, the sole proximate cause of the injury or damage is the
CITY's gross negligence.
ARTICLE 6-CONTRACTOR'S RESPONSIBILITIES
6.1 Supervision of Work:
The CONTRACTOR shall supervise and direct the Work competently and efficiently, devoting such
attention thereto and apply such skills and expertise as may be necessary to perform the Work in
accordance with the Contract Documents. All Work under this Contract shall be performed in a skillful and
workmanlike manner. The CONTRACTOR shall be solely responsible for the means, methods,
techniques, sequences and procedures of construction.
6.2 Superintendence by CONTRACTOR:
The CONTRACTOR shall keep on the Work at all times during its progress a competent resident
superintendent. The Contracting Officer shall be advised in writing of the superintendent's name, local
address, and telephone number. This written advice is to be kept current until Final Acceptance by the
CITY. The superintendent will be the CONTRACTOR'S representative at the site and shall have full
authority to act and sign documents on behalf of the CONTRACTOR.
All communications given to the superintendent shall be as binding as if given to the CONTRACTOR. The
CONTRACTOR shall cooperate with the Contracting Officer in every way possible.
6.3 Character of Workers:
The CONTRACTOR shall provide a sufficient number of competent, suitably qualified personnel to survey
and lay out the Work and perform construction as required by the Contract Documents. The
CONTRACTOR shall at all times maintain good discipline and order at the site. The Contracting Officer
may, in writing, require the CONTRACTOR to remove from the Work any employee the Contracting
Officer deems incompetent, careless, or otherwise detrimental to the progress of the Work, but the
Contracting Officer shall have no duty to exercise this right.
6.4 CONTRACTOR to Furnish:
Unless otherwise specified in the General Requirements, the CONTRACTOR shall furnish and assume
full responsibility for all materials, equipment and machinery, tools, appliances, fuel, power, light, heat,
telephone, water, sanitary facilities, temporary facilities and all other facilities and incidentals necessary
for the furnishing, performance, testing, start-up and completion of the Work.
6.5 Materials and Equipment:
All materials and equipment shall be of specified quality and new, except as otherwise provided in the
Contract Documents. If required by the Contracting Officer, the CONTRACTOR shall furnish satisfactory
evidence (including reports of required tests) as to the kind and quality of materials and equipment. All
materials and equipment shall be applied, installed, connected, erected, used, cleaned, and conditioned
in accordance with the instructions of the applicable Supplier except as otherwise provided in the
Contract Documents: but no provision of any such instructions will be effective to assign to the CITY or
any of the CITY's Consultants, agents or employees, any duty or authority to supervise or direct the
furnishing or performance of the Work or any duty or authority to undertake responsibility contrary to the
provisions of paragraphs 2.3 or 2.4.
6.6 Anticipated Schedules:
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6.6.1 Within 10 days following the effective date of the contract the CONTRACTOR shall submit to the
Contracting Officer for review an anticipated progress schedule indicating the starting and completion
dates of the various stages of the Work.
6.6.2 Within fifteen days after the date of the Notice to Proceed, the Contractor shall submit to the
Contracting Officer for review:
Anticipated schedule of Shop Drawing submissions; and
Anticipated Schedule of Values for all of the Work which will include quantities and prices of items
aggregating the Contract Price and will subdivide the Work into component parts in sufficient detail to
serve as the basis for progress payments during construction. Such prices will include an appropriate
amount of overhead and profit applicable to each item of Work which will be confirmed in writing by the
CONTRACTOR at the time of submission.
6.7 Finalizing Schedules:
Prior to processing the first Application for Payment the Contracting Officer and the CONTRACTOR will
finalize schedules required by paragraph 6.6.
The finalized progress schedule will be acceptable to the CITY as providing information related to the
orderly progression of the Work to completion within the Contract Time; but such acceptance will neither
impose on the CITY nor relieve the CONTRACTOR from full responsibility for the progress or scheduling
of the Work. If accepted, the finalized schedule of Shop Drawing and other required submissions will be
acceptable to the CITY as providing a workable arrangement for processing the submissions. If accepted
the finalized Schedule of Values will be acceptable to the CITY as an approximation of anticipated value
of Work accomplished over the anticipated Contract Time. Receipt and acceptance of a schedule
submitted by the CONTRACTOR shall not be construed to assign responsibility for performance or
contingencies to the CITY or relieve the CONTRACTOR of his responsibility to adjust his forces,
equipment, and work schedules as may be necessary to insure completion of the Work within prescribed
Contract Time. Should the prosecution of the Work be discontinued for any reason, the CONTRACTOR
shall notify the Contracting Officer at least 24 hours in advance of resuming operations.
6.8 Adjusting Schedules:
Upon substantial change to the schedule or upon request the CONTRACTOR shall submit to the
Contracting Officer for acceptance (to the extent indicated in paragraph 6.7 and the General
Requirements) adjustments in the schedules to reflect the actual present and anticipated progress of the
Work.
6.9 Substitutes or"Or Equal' Items:
6.9.1 Whenever materials or equipment are specified or described in the Contract Documents by using
the name of a propriety item or the name of a particular Supplier the naming of the item is intended to
establish the type, function and quality required. Unless the name is followed by words indicating that no
substitution is permitted, materials or equipment of other Suppliers may be accepted by the Contracting
Officer only if sufficient information is submitted by the CONTRACTOR which clearly demonstrates to the
Contracting Officer that the material or equipment proposed is equivalent or equal in all aspects to that
named. The procedure for review by the Contracting Officer will include the following as supplemented in
the General Requirements.
6.9.2 Requests for review of substitute items of material and equipment will not be accepted by the
Contracting" Officer from anyone other than the CONTRACTOR.
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6:9.3 If the CONTRACTOR wishes to furnish or use a substitute item of material or equipment, the
CONTRACTOR. shall make written application to the Contracting Officer for acceptance thereof certifying
that the proposed substitute will perform adequately the functions and achieve the results called for by the
general design, be similar and of equal substance to that specified and be suited to the same use as the
specified. The application will state that the evaluation and acceptance of the proposed substitute will not
delay the CONTRACTOR's achievement of Substantial Completion on time, whether or not acceptance of
the substitute for use in the Work will require a change in any of the Contract Documents (or in the
provisions of any other direct contract with the CITY or Work on the Project) to adapt the design to the
proposed substitute and whether or not incorporation or use of the substitute in connection with the Work
is subject to payment of any license fee or royalty.
6.9.4 All variations of the proposed substitute from that specified will be identified in the application and
available maintenance, repair and replacement service will be indicated. The application will also contain
an itemized estimate of all costs that will result directly or indirectly from acceptance of such substitute,
including costs of redesign and claims of other contractors affected by the resulting change, all of which
shall be considered by the CITY in evaluating the proposed substitute. The CITY may require the
CONTRACTOR to furnish at the CONTRACTOR'S expense additional data about the proposed
substitute. The Contracting Officer may reject any substitution request which the Contracting Officer may
reject any substitution request which the Contracting Officer determines is not in the best interest of the
CITY.
6.10 Substitute Means and Methods:
If a specific means, method, technique, sequence or procedure of construction is indicated in or required
by the Contract Documents, the CONTRACTOR may furnish or utilize a substitute means, method,
sequence, technique or procedure of construction acceptable to the Contracting Officer, if the
CONTRACTOR submits sufficient information to allow the Contracting Officer to determine that the
substitute proposed is equivalent to that indicated or required by the Contract Documents. The procedure
for review by the Contracting Officer will be similar to that provided in paragraph 6.9 as applied by the
Contracting Officer and as may be supplemented in the General Requirements.
6.11 Evaluation of Substitution:
The Contracting Officer will be allowed a reasonable time within which to evaluate each proposed
substitute. The Contracting Officer will be the sole judge of acceptability, and no substitute will be
ordered, installed or utilized without the Contracting Officer's prior written acceptance which will be
evidenced by either a Change Order or a Shop Drawing approval in accordance with Sections 6.20 and
6.21. The Contracting Officer may require the CONTRACTOR to furnish at the CONTRACTOR'S
expense a special performance guarantee or other Surety with respect to any substitute.
6.12 Dividing the Work:
The divisions and section of the Specifications and the identifications of any Drawings shall not control
the CONTRACTOR in dividing the Work among Subcontractors or Suppliers or delineating the Work to be
performed by any specific trade.
6.13 Subcontractors:
The CONTRACTOR may utilize the service of licensed specialty Subcontractors on those parts of the
Work which, under normal contracting practices, are performed by licensed specialty Subcontractors, in
accordance with the following conditions:
6.13.1 The CONTRACTOR shall not award any Work to any Subcontractor without prior written approval
of the Contracting Officer. This approval will not be given until the CONTRACTOR submits to the
Contracting Officer a written statement concerning the proposed award to the Subcontractor which shall
contain required Equal Employment Opportunity documents, evidence of insurance whose limits are
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acceptable to the CONTRACTOR, and an executed copy of the subcontract. All subcontracts submitted
for approval must contain provisions for payment for Work done by the Subcontractor within 7 days of
receipt of payment by the CONTRACTOR. No acceptance by the Contracting Officer of any such
Subcontractor shall constitute a waiver of any right of the CITY to reject Defective Work.
6.13.2 All Work performed for CONTRACTOR by a Subcontractor will be pursuant to an appropriate
written agreement between CONTRACTOR and the Subcontractor which specifically binds the
Subcontractor to the applicable terms and conditions of the Contract Documents for the benefit of the
CITY and contains waiver provisions as required by paragraph 13.17 and termination provisions as
required by Article 14.
6.13.4 Nothing in the Contract Documents shall create any contractual relationship between the CITY
and any such Subcontractor, Supplier or other person or organization, nor shall it create any obligation on
the part of the CITY to pay or to see to the payment of any moneys due any such Subcontractor, Supplier
or other person or organization except as may otherwise be required by Regulatory Requirements. The
CITY will not undertake to settle any differences between or among the CONTRACTOR, Subcontractors,
or Suppliers.
6.13.5 The CONTRACTOR and Subcontractors shall coordinate their work and cooperate with other
trades so to facilitate general progress of Work. Each trade shall afford other trades every reasonable
opportunity for installation of their work and storage of materials. If cooperative work of one trade must be
altered due to lack of proper supervision, or failure to make proper provisions in time by another trade,
such conditions shall be remedied by the CONTRACTOR with no change in Contract Price or Contract
Time.
6.13.6 The CONTRACTOR shall include on his own payrolls any person or persons working on this
Contract who are not covered by written subcontract, and shall ensure that all Subcontractors include on
their payrolls all person performing work under the direction of the Subcontractor.
6.14 Use of Premises:
The CONTRACTOR shall confine construction equipment, the storage of materials and equipment and
the operations of workers to the Project limits and approved remote storage sites and lands and areas
identified in and permitted by Regulatory Requirements, rights-of-way, permits and easements, and shall
not unreasonably encumber the premises with construction equipment or other materials or equipment.
The CONTRACTOR shall assume full responsibility for any damage to any such land or area, or to the
owner or occupant thereof or of any land areas contiguous thereto, resulting from the performance of the
Work. Should any claim be made against the CITY by any such owner or occupant because of the
performance of the Work, the CONTRACTOR shall hold the CITY harmless.
6.15 Structural Loading:
The CONTRACTOR shall not load nor permit any part of any structure to be loaded in any manner that
will endanger the structure, nor shall the CONTRACTOR subject any part of the Work or adjacent
property to stresses or pressures that will endanger it.
6.16 Record Documents:
The CONTRACTOR shall maintain in a safe place at the site one record copy of all Drawings,
Specifications, Addenda, Directives, Change Orders, Supplemental Agreements, and written
interpretations and clarifications (issued pursuant to paragraph 3.6) in good order and annotated to show
all changes made during construction. These record documents together with all approved samples and a
counterpart of all approved Shop Drawings will be available to the Contracting Officer for reference and
copying. Upon completion of the Work, the annotated record documents, samples and Shop Drawings
will be delivered to the Contracting Officer. Record documents shall accurately record variations in the
Work which vary from requirements shown or indicated in the Contract Documents.
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6.17 Safety and Protection:
The CONTRACTOR alone shall be responsible for initiating, maintaining and supervising all safety
precautions and programs in connection with the Work. The CONTRACTOR shall take all necessary
precautions for the safety of, and shall provide the necessary protection to prevent damage, injury or loss
to:
6.17.1 All employees on the Work and other persons and organizations who may be affected thereby;
6.17.2 All the Work and materials and equipment to be incorporated therein, whether in storage on or off
the site;
6.17.3 Other property at the site or adjacent thereto, including trees, shrubs, lawns, walks, pavements,
roadways, structures, and utilities not designated for removal, relocation or replacement in the course of
construction.
The CONTRACTOR shall comply with all applicable Regulatory Requirements of any public body having
jurisdiction for the safety of persons or property or to protect them from damage, injury or loss, and shall
erect and maintain all necessary safeguards for such safety and protection. The CONTRACTOR shall
notify owners of adjacent property and utility owners when prosecution of the Work may affect them, and
shall cooperate with them in the protection, removal, relocation and replacement of their property. All
damage, injury or loss to any property caused, directly or indirectly, in whole or in part, by the
CONTRACTOR, any Subcontractor, Supplier or any other person or organization directly or indirectly
employed by any of them to perform or furnish any of them to perform or furnish any of the Work or
anyone for whose acts any of them may be liable, shall be remedied by the CONTRACTOR with no
change in Contract Price or Contract Time except as stated in 4.6, except damage or loss attributable to
unforeseeable causes beyond the control of and without the fault or negligence of the CONTRACTOR,
including but not restricted to acts of nature, of the public enemy or governmental authorities. The
CONTRACTOR's duties and responsibilities for the safety and protection of the Work shall continue until
Final Acceptance (except as otherwise expressly provided in connection with Substantial Completion).
6.18 Safety Representative:
The CONTRACTOR shall designate a responsible safety representative at the site. This person shall be
the CONTRACTOR's superintendent unless otherwise designated in writing by the CONTRACTOR to the
Contracting Officer.
6.19 Emergencies:
In emergencies affecting the safety or protection of persons or the Work or property at the site or adjacent
thereto, the CONTRACTOR, without special instruction or authorization from the CITY, is obligated to act
to prevent threatened damage, injury or loss. The CONTRACTOR shall give the Contracting Officer
prompt written notice if the CONTRACTOR believes that any significant changes in the Work or variations
from the Contract Documents have been caused thereby. If the CITY determines that a change in the
Contract Documents is required because of the action taken in response to an emergency, a change will
be authorized by one of the methods indicated in Paragraph 9.2, as determined appropriate by the
Contracting Officer.
6.20 Shop Drawings and Samples:
6.20.1 After checking and verifying all field measurements and after complying with applicable
procedures specified in the General Requirements, the CONTRACTOR shall submit to the Contracting
Officer for review and approval in accordance with the accepted schedule of Shop Drawing submissions
the required number of all Shop Drawings, which will bear a stamp or specific written indication that the
CONTRACTOR has satisfied CONTRACTOR's responsibilities under the Contract Documents with
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respect to the review of the submission. All submissions will be identified as the Contracting Officer may
require. The data shown on the Shop Drawings will be identified as the Contracting Officer may require.
The data shown on the Shop Drawings will be complete with respect to quantities, dimensions, specified
performance and design criteria, materials and similar data to enable the Contracting Officer to review the
information as required.
6.20.2 The CONTRACTOR shall also submit to the Contracting Officer for review and approval with
such promptness as to cause no delay in Work, all samples required by the Contract Documents. All
samples will have been checked by and accompanied by a specific written indication that the
CONTRACTOR has satisfied CONTRACTOR's responsibilities under the Contract Documents with
respect to the review of the submission and will be identified clearly as to material, Supplier, pertinent
data such as catalog numbers and the use for which intended.
6.20.3 Before submission of each Shop Drawing or sample the CONTRACTOR shall have determined
and verified all quantities, dimensions, specified performance criteria, installation requirements, materials,
catalog numbers and similar with respect thereto and reviewed or coordinated each Shop Drawing or
samples with other Shop Drawings and samples and with the requirements of the Work and the Contract
Documents.
6.20.4 At the time of each submission to the CONTRACTOR shall give the Contracting Officer specific
written notice of each variation that the Shop Drawings or samples may have from the requirements of
the Contract Documents, and in addition, shall cause a specific notation to be made on each Shop
Drawing submitted to the Contracting Officer for review and approval of each such variation. All variations
of the proposed shop drawing from that specified will be identified in the submission and available
maintenance, repair and replacement service will be indicated. The submittal will also contain an itemized
estimate of all costs that will result directly or indirectly from acceptance of such variation, including costs
of redesign and claims of other Contractors affected by the resulting change, all of which shall be
considered by the CITY in evaluating the proposed variation. If the variation may result in a charge of
Contract Time or Price, or Contract responsibility, and is not minor in nature; the CONTRACTOR must
submit a written request for Change Order with the variation to notify the CITY of his intent. The CITY
may require the CONTRACTOR to furnish at the CONTRACTOR's expense additional data about the
proposed variation. The Contracting Officer may reject any variation request which the Contracting Officer
determines is not in the best interest of the CITY.
6.21 Shop Drawing and Sample Review:
6.21.1 The Contracting Officer will review with reasonable promptness Shop Drawings and samples, but
the Contracting Officer's review will be only for conformance with the design concept of the Project and
for compliance with the information given in the Contract Documents and shall not extend to means,
methods, techniques, sequences or procedures of construction (except where a specific means, method,
technique, sequence or procedure of construction is indicated in or required by the Contract Documents)
or to safety precautions or programs incident thereto. The review of a separate item as such will not
indicate acceptance of the assembly in which the item functions. The CONTRACTOR shall make
corrections required by the Contracting Officer and shall return the required number of corrected copies of
Shop Drawings and submit as required new samples for review. The CONTRACTOR shall direct specific
attention in writing to revisions other than the corrections called for by the Contracting Officer on previous
submittals.
6.21.2 The Contracting Officer's review of Shop Drawings or samples shall not relieve CONTRACTOR
from responsibility for any variation from the requirements of the Contract Documents unless the
CONTRACTOR has in writing advised the Contracting Officer of each such variation at the time of
submission as required by paragraph 6.20.4 The Contracting Officer if he so determines, may give written
approval of each such variation by Change Order, except that, if the variation is minor and no Change
Order has been requested a specific written notation thereof incorporated in or accompanying the Shop
Drawing or sample review comments shall suffice as a modification. No approval by the Contracting
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Officer will relieve the CONTRACTOR from responsibility for errors or omissions in the Shop Drawings or
from responsibility for having complied with the provisions of paragraph 6.20.3.
6.21.3 Where a Shop Drawing or sample is required by the Specifications, any related Work performed
prior to the Contracting Officer's review of the pertinent submission will be the sole expense and
responsibility of the CONTRACTOR.
6.22 Maintenance During Construction.
The CONTRACTOR shall maintain the Work during construction and until Substantial Completion, at
which time the responsibility for maintenance shall be established in accordance with paragraph 13.10.
6.23 Continuing the Work:
The CONTRACTOR shall carry on the Work and adhere to the progress schedule during all disputes or
disagreements with the CITY. No Work shall be delayed or postponed pending resolution of any
disputes, disagreements, or claims except as the CONTRACTOR and the Contracting Officer may
otherwise agree in writing.
6.24 Consent to Assignment:
The CONTRACTOR shall obtain the prior written consent of the Contracting Officer to any proposed
assignment of any interest in, or part of this Contract. The consent to any assignment or transfer shall not
operate to relieve the CONTRACTOR or his Sureties of any of his or its obligations under this Contract or
the Performance Bonds. Nothing herein contained shall be construed to hinder, prevent, or affect an
assignment of monies due, or to become due hereunder, made for the benefit of the CONTRACTOR's
creditors pursuant to law.
6.25 Use of Explosives:
6.25.1 When the use of explosives is necessary for the prosecution of the Work, the CONTRACTOR
shall exercise the utmost care not to endanger life or property, including new Work and shall follow all
Regulatory Requirements applicable to the use of explosives. The CONTRACTOR shall be responsible
for all damage resulting from the use of explosives.
6.25.2 All explosives shall be stored in a secure manner in compliance with all Regulatory
Requirements, and all such storage places shall be dearly marked. Where no Regulatory Requirements
apply, safe storage shall be provided not closer than 1,000 feet from any building, camping area, or place
of human occupancy.
6.25.3 The CONTRACTOR shall notify each public utility owner having structures in proximity to the site
of his intention to use explosives. Such notice shall be given sufficiently in advance to enable utility
owners to take such steps as they may deem necessary to protect their property form injury. However,
the CONTRACTOR shall be responsible for all damage resulting from the use of the explosives, whether
or not, utility owners act to protect their property.
6.26 CONTRACTOR'S Records:
6.26.1 Records of the CONTRACTOR and Subcontractors relating to personnel, payrolls, invoices of
materials, and any and all other data relevant to the performance of this Contract, must be kept on a
generally recognized accounting system. Such records must be available during normal work hours to
the Contracting Officer for purposes of investigation to ascertain compliance with Regulatory
Requirements and provisions of the Contract Documents.
6.26.2 Payroll records must contain the name and address of each employee, his correct classification,
rate of pay, daily and weekly number of hours of work, deductions made, and actual wages paid. The
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CONTRACTOR and Subcontractor shall make employment records available for inspection by the
Contracting Officer and representatives of the U.S. and/or State Department of Labor and will permit such
representatives to interview employees during working hours on the Project.
6.26.3 Records of all communications between the CITY and the CONTRACTOR and other parties,
where such communications affected performance of this Contract, must be kept by the CONTRACTOR
and maintained for a period of three years from Final Acceptance. The CITY or its assigned
representative may perform an audit of these records during normal work hours after written notice to the
CONTRACTOR.
ARTICLE 7- LAWS AND REGULATIONS
7.1 Laws to be Observed:
The CONTRACTOR shall keep fully informed of all Federal and State Regulatory Requirements and all
orders and decrees of bodies or tribunals having any jurisdiction or authority, which in any manner after
those engaged or employed on the Work, or which in any way affect the conduct of the Work. The
CONTRACTOR shall at all times observe and comply with all such Regulatory Requirements, orders and
decrees; and shall protect and indemnify the CITY and its representatives against claim or liability arising
from or based on the violation of any such Regulatory - Requirement, order, or decree whether by the
CONTRACTOR, Subcontractor, or any employee of either. Except where otherwise expressly required by
applicable Regulatory Requirements, the CITY shall not be responsible monitoring CONTRACTOR'S
compliance with any Regulatory Requirements.
7.2 Permits, Licenses, and Taxes:
7.2.1. The CONTRACTOR shall procure all permits and licenses, pay all charges, fees and taxes, and
give all notices necessary and incidental to the due and lawful prosecution of the Work. As a condition of
performance of this Contract, the CONTRACTOR shall pay all Federal, State and local taxes incurred by
the CONTRACTOR, in the performance of this Contract. Proof of payment of these taxes is a condition
precedent to final payment by the CITY under this Contract.
7.2.2. The CONTRACTOR's certification that taxes have been paid (as contained in the Release of
Contract) will be verified with the Department of Revenue and Department of Labor, prior to final
payment.
7.2.3 If any Federal, State or local tax is imposed, charged, or repealed after the date of bid opening
and is made applicable to and paid by the CONTRACTOR on the articles or supplies herein contracted
for, then the Contract shall be increased or decreased accordingly by a Change Order.
7.3 Patented Devices, Materials and Processes:
If the CONTRACTOR employs any design, device, material, or process covered by letters of patent,
trademark or copyright, the CONTRACTOR shall provide for such use by suitable legal agreement with
the patentee or owner. The CONTRACTOR and the Surety shall indemnify and save harmless the CITY,
any affected third party, or political subdivision from any and all claims for infringement by reason of the
use of any such patented design, device material or process, or any trademark or copyright, and shall
indemnify the CITY for any costs, expenses, and damages which it may be obligated to pay by reason of
any infringement, at any time during the prosecution or after the completion of the Work.
7.4 Compliance of Specifications and Drawings:
If the CONTRACTOR observes that the Specifications and Drawings supplied by the CITY are at variance
with any Regulatory Requirements, CONTRACTOR shall give the Contracting Officer prompt written
notice thereof, and any necessary changes will be authorized by one of the methods indicated in
paragraph 9.2 as determined appropriate by the Contracting Officer. If the CONTRACTOR performs any
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Work knowing or having reason to know that it is contrary to such Regulatory Requirements, and without
such notice to the Contracting Officer, the CONTRACTOR shall bear all costs arising therefrom: however,
it shall not be the CONTRACTOR'S primary responsibility to make certain that the Specifications and
Drawings supplied by the CITY are in accordance with such Regulatory Requirements.
7.5 Accident Prevention:
The CONTRACTOR shall comply with AS 18.60.75 and all pertinent provisions of the Construction Code
Occupational Safety and Health Standards issued by the State of Alaska Department of Labor.
7.6 Sanitary Provisions:
The CONTRACTOR shall provide and maintain in a neat and sanitary condition such accommodations for
the use of his employees and CITY representatives as may be necessary to comply with the
requirements of the State and local Boards of Health, or of other bodies or tribunals having jurisdiction.
7.7 Business Registration:
Comply with AS 08.18.011, as follows: "it is unlawful for a person to submit a bid or work as a contractor
until he has been issued a certificate of registration by the. Department of Commerce. A partnership or
joint venture shall be considered registered if one of the general partners or venturers whose name
appears in the name under which the partnership or venture does business is registered."
7.8 Professional Registration and Certification:
All craft trades, architects, engineers and land surveyors, electrical administrators, and explosive handlers
employed under the Contract shall specifically comply with applicable provisions of AS 08.18, 08.48,
08.40 and 08.52. Provide copies of individual licenses within seven days following a request from the
Contracting Officer.
7.9 Local Building Codes:
The CONTRACTOR shall comply with AS 35.10.025 which requires construction in accordance with
applicable local building codes including the obtaining of required permits.
7.10 Air Quality Control:
The CONTRACTOR shall comply with all applicable provisions of AS 46.03.04 as pertains to Air Pollution
Control.
7.11 Archaeological or Paleontological Discoveries:
When the CONTRACTOR's operation encounters prehistoric artifact, burials, remains of dwelling sites, or
paleontological remains, such as shell heaps, land or seal mammal bones or tusks, the CONTRACTOR
shall cease operations immediately and notify the Contracting Officer. No artifacts or specimens shall be
further disturbed or removed from the ground and no further operations shall be performed at the site until
so directed. Should the Contracting Officer order suspension of the CONTRACTOR's operations in order
to protect an archaeological or historical finding, or order the CONTRACTOR to perform extra Work, such
shall be covered by an appropriate Contract change document.
7.12 Alaska Agricultural Products:
Pursuant to AS 36.16.010, Agricultural products harvested in Alaska shall be used in State funded
projects when competitively priced, available and of like quality compared with agricultural projects
harvested outside the State.
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7.13 Preferential Employment:
The Contractor shall comply with all applicable and valid laws and regulations regarding the hiring of
Alaska residents now in effect or that might subsequently take effect during the term of this contract.
7.14 Wages and Hours of Labor:
7.14.1 One certified copy of all payrolls shall be submitted weekly, before the Friday of every second
week, to the State Department of Labor to assure compliance with AS 36.05.040 Filing Schedule of
Employees Wages Paid and Other Information. The CONTRACTOR shall be responsible for the
submission of certified copies of payrolls of all Subcontractors. The certification shall affirm that the
payrolls are current and complete, that the wage rates contained therein are not less than the applicable
rate referenced in these Contract Documents, and that the classification set forth for each laborer or
mechanic conforms with the Work he performed. The CONTRACTOR and his Subcontractors shall attend
all hearings and conferences and produce such books, papers and documents all as requested by the
Department of Labor. Should Federal funds be involved, the appropriate Federal Agency shall also
receive a copy of the CONTRACTOR'S certified payrolls.
7.14.2 The following Labor provisions shall also apply to this Contract:
a. The CONTRACTOR and his Subcontractors shall pay all employees unconditionally in a timely
manner;
b. wages may not be less than those stated in the advertised Specifications, regardless of the
contractual relationship between the CONTRACTOR or Subcontractors and laborers, mechanics,
or field surveyors;
C. the scale of wages to be paid shall be posted by the CONTRACTOR in a prominent and easily
accessible place at the site of the Work;
d. the CITY shall withhold so much of the accrued payments as is necessary to pay to laborers,
mechanics, or field surveyors employed by the CONTRACTOR or Subcontractors the difference
between
1. the rate of wages required by the Contract to be paid laborers, mechanics, or field
surveyors on the Work, and
2. the rates of wages in fact received by laborers, mechanics or field-surveyors.
7.15 Overtime Work Hours and Compensation:
Pursuant to the Federal Fair Labor Standards Act and AS 23.10.060, the CONTRACTOR shall not
require nor permit any laborer or mechanic in any workweek in which he is employed on any Work under
this Contract to work in excess of eight hours in any Calendar Day or in excess of forty hours in such
workweek on Work subject to the provisions of the applicable laws and regulations, unless such laborer
or mechanic receives compensation at a rate not less than one and one half times his basic rate of pay
for all such hours worked in excess of eight hours in any Calendar Day or in excess of forty hours in such
workweek whichever is the greater number of overtime hours. In the event of any violation of this
provision, the CONTRACTOR shall be liable to any affected employee for any amounts due and penalties
and to the CITY for liquidated damages. Such liquidated damages shall be computed with respect to each
individual laborer or mechanic employed in violation of this provision in the sum of $10.00 for each
Calendar Day or which such employee was required or permitted to be employed on such Work in excess
of eight hours or in excess of the standard workweek of forty hours without payment of the overtime
wages required by this paragraph.
7.16 Covenant Against Contingent Fees:
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The CONTRACTOR warrants that no person or selling agent has been employed or retained to solicit or
secure this Contract upon an agreement or understanding for a commission, percentage, brokerage, or
contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies
maintained by the CONTRACTOR for the purpose of securing business. For breach or violation of this
warrant, the CITY shall have the right to annul this Contract without liability or, in its discretion, to deduct
price of consideration from the Contract or otherwise recover the full amount of such commission,
percentage, brokerage, or contingent fee.
7.17 Officials Not To Benefit:
No member of or delegate to the U.S. Congress, the State Legislature or other State Official shall be
admitted to any share or part of this Contract, nor to any benefit that may arise there from. However, this
provision shall not be construed to extend to this Contract if made with a corporation for its general
benefit.
7.18 Personal Liability of Public Officials:
In carrying out any of the provisions thereof, or in exercising any power or authority granted to the
Contracting Officer by the Contract, there will be no liability upon the Contracting Officer nor upon City,
Borough or State employees authorized as his representatives, either personally or as officials of the City,
Kenai Peninsula Borough or State of Alaska, it being always understood that in such matters they act as
agents and representatives of the CITY.
ARTICLE 8-OTHER WORK
8.1 Related Work At Site:
8.1.1 The CITY reserves the right at any time to contract for and perform other additional work on or
near the Work covered by the Contract.
8.1.2 When separate contracts are let within the limits of the Project, the CONTRACTOR shall conduct
his Work so as not to interfere with or hinder the work being performed by other contractors. The
CONTRACTOR when working on the same Project with other contractors shall cooperate with such other
contractors. The CONTRACTOR shall join his work with that of the others in an acceptable manner and
shall perform it in proper sequence to that of others.
8.1.3 If the fact that other such work is to be performed is identified or shown in the Contract
Documents the CONTRACTOR shall assume all liability, financial or otherwise, in connection with this
Contract and indemnify and save harmless the CITY from any and all damages or claims that may arise
because of inconvenience, delay, or loss experienced by the CONTRACTOR because of the presence
and operations of other contractors.
8.1.4 If the fact that such other work is to be performed was not identified or shown in the Contract
Documents, written notice thereof will be given to the CONTRACTOR prior to starting any such other
work. If the CONTRACTOR believes that such performance will require an increase in Contract Price or
Contract Time, the CONTRACTOR shall notify the Contracting Officer of such required increase within
fifteen (15) calendar days following receipt of the Contracting Officer's notice. Should the Contracting
Officer find such increase(s)to be justified, a Change Order will be executed.
8.2 Access, Cutting, and Patching:
The CONTRACTOR shall afford each utility owner and any other contractor who is a party to such a
direct contract with the CITY (or the CITY, if the CITY is performing the additional work with the CITY's
employees) proper and safe access to the site and a reasonable opportunity for the introduction and
storage of materials and equipment and the execution of such work, and shall properly connect and
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coordinate the Work with the work of others. The CONTRACTOR shall do all cutting, fitting and patching
of the Work that may be required to make its several parts come together properly and integrate with
such other work, the CONTRACTOR shall not endanger any work of others by cutting, excavating or
otherwise altering their work and will only cut or alter such other work with the written consent of the
Contracting Officer. The duties and responsibilities of the CONTRACTOR under this paragraph are for the
benefit of other contractors to the extent that there are comparable provisions for the benefit of the
CONTRACTOR in said direct contracts between the CITY and other contractors.
8.3 Defective Work By Others:
If any part of the CONTRACTOR's Work depends for proper execution or results upon the work of any
such other contractor, utility owner, or the CITY, the CONTRACTOR shall inspect and promptly report to
the Contracting Officer in writing any delays, defects or deficiencies in such work that render it
unavailable or unsuitable for such proper execution and results. The CONTRACTOR's failure to so report
will constitute an acceptance of the other work as fit and proper for integration with CONTRACTOR's
Work except for latent or nonapparent defects and deficiencies in the other work.
8.4 Coordination:
If the CITY contracts with others for the performance of other work at the site, Contracting Officer will
have authority and responsibility for coordination of the activities among the various prime contractors.
ARTICLE 9-CHANGES
9.1 CITY'S Right To Change:
Without invalidating the Contract and without notice to any Surety, the CITY may, at any time or from time
to time, order additions, deletions or revisions in the Work within the general scope of the Contract,
including but not limited to changes:
9.1.1 In the Contract Documents:
9.1.2 In the method or manner of performance of the Work;
9.1.3 In CITY-furnished facilities, equipment, materials, services, or site;
9.1.4 Directing acceleration in the performance of the Work.
9.2 Authorization of Changes within the General Scope:
Additions, deletions, or revisions in the Work within the general scope of the Contract as specified in 9.1
shall be authorized by one or more of the following ways:
9.2.1 Directive (pursuant to paragraph 9.3)
9.2.2 A Change Order(pursuant to paragraph 9.4)
9.2.3 CITY's acceptance of Shop Drawing variations from the Contract Documents as specifically
identified by the CONTRACTOR as required by paragraph 6.20.4.
9.3 Directive:
9.3.1 The Contracting Officer shall provide written clarification or interpretation of the Contract
Documents (pursuant to paragraph),
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9.3.2 The Contracting Officer may authorize minor variations in the Work from the requirements of the
Contract Documents which do not involve an adjustment in the Contract Price or the Contract Time and
are consistent with the overall intent of the Contract Documents.
9.3.3 The Contracting Officer may order the Contractor to correct Defective Work or methods which are
not in conformance with the Contract Documents.
9.3.4 The Contracting Officer may direct the commencement or suspension of Work or emergency related
Work(as provided in paragraph 6.19).
9.3.5 Upon the issuance of a Directive to the CONTRACTOR by the Contracting Officer, the
CONTRACTOR shall proceed with the performance of the Work as prescribed by such Directive.
9.3.6 If the CONTRACTOR believes that the changes noted in a Directive may cause an increase in the
Contract Price or an extension of Contract Time, the CONTRACTOR shall immediately provide written
notice to the Contracting Officer depicting such increases before proceeding with the directive, except in
the case of an emergency. If the Contracting Officer finds the increase in Contract Prices or the extension
of Contract Time justified, a Change Order will be issued. If however, the Contracting Officer does not find
that a Change Order is justified, the Contracting Officer may direct the CONTRACTOR to proceed with
the Work. The CONTRACTOR shall cooperate with the Contracting Officer in keeping complete daily
records of the cost of such Work. If a Change Order is ultimately determined to be justified, in the
absence of agreed prices and unit prices, payment for such Work will be made on a cost of the work
basis as provided in 10.4.
9.4 Change Order:
A change in Contract Time, Contract Price, or responsibility may be made for changes within the scope of
the Work only by Change Order. Upon receipt of an executed Change Order, the CONTRACTOR shall
promptly proceed with the work involved which will be performed under the applicable conditions of the
Contract Documents except as otherwise specifically provided. Changes in Contract Price and Contract
Time shall be made in accordance with Article 10 and 11.
9.5 Shop Drawing Variations:
Variations by shop drawings shall only be eligible for consideration under 9.4 when the conditions
affecting the price, time, or responsibility are identified by the CONTRACTOR in writing and a request for
a Change Order is submitted as per 6.20.4.
9.6 Changes Outside the General Scope; Supplemental Agreement:
Any change which is outside the general scope of the Contract, as determined by the Contracting Officer,
must be authorized by a Supplemental Agreement signed by the appropriate representatives of the CITY
and the CONTRACTOR.
9.7 Unauthorized Work:
The CONTRACTOR shall not be entitled to an increase in the Contract Price or an extension of the
Contract Time with respect to any work performed that is not required by the Contract Documents as
amended, modified and supplemented as provided in this Article 9, except in the case of an emergency
as provided in paragraph 6.19 and except in the case of uncovering Work as provided in paragraph
12.4.2.
9.8 Notification of Surety:
If notice of any change affecting the general scope of the Work or the provisions of the Contract
Documents (including, but not limited to, Contract Price or Contract Time) is required by the provisions of
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any Bond to be given to a Surety, the giving of any such notice will be the CONTRACTOR's responsibility,
and the amount of each applicable Bond will be adjusted accordingly.
9.9 Differing Site Conditions:
9.9.1 The CONTRACTOR shall promptly, and before such conditions are disturbed (except in an
emergency as permitted by paragraph 6.19), notify the Contracting Officer in writing of: (1) subsurface or
latent physical conditions at the site differing materially from those indicted in the Contract, and which
could not have been discovered by a careful examination of the site, or (2) unknown physical conditions
at the site, of an unusual nature, differing materially form those ordinarily encountered and generally
recognized as inherent in work of the character provided for in this Contract. The Contracting Officer shall
promptly investigate the conditions, and if the Contracting Officer finds that such conditions do materially
so differ and cause an increase or decrease in the CONTRACTOR's cost of, or time required for,
performance of this Contract, an equitable adjustment shall be made and the Contract modified in writing
accordingly.
9.9.2 Any claim for additional compensation by the CONTRACTOR under this clause shall be made in
accordance with Article 15 and shall not be allowed unless the CONTRACTOR has first given the notice
required by this Contract. In the event that the Contracting Officer and the CONTRACTOR are unable to
reach an agreement concerning an alleged differing site condition, the CONTRACTOR will be required to
keep an accurate and detailed record which will indicate the actual cost of the work done under the
alleged differing site condition. Failure to keep such a record shall be a bar to any recovery by reason of
such alleged differing site conditions. The Contracting Officer shall be given the opportunity to supervise
and check the keeping of such records.
ARTICLE 10- CONTRACT PRICE; COMPUTATION AND CHANGE
10.1 Contract Price:
The Contract Price constitutes the total compensation (subject to authorized adjustments) payable to the
CONTRACTOR for performing the Work. All duties, responsibilities and obligations assigned to or
undertaken by the CONTRACTOR shall be at his expense without change in the Contract Price. The
Contract Price may only be changed by a Change Order or Supplemental Agreement.
10.2 Claim For Price Change:
Any claim for an increase or decrease in the Contract Price shall be submitted in accordance with the
terms of Article 15, and shall not be allowed unless notice requirements of this Contract have been met.
10.3 Change Order Price Determination:
The value of any Work covered by a Change Order for an increase or decrease in the Contract Price shall
be determined in one of the following ways:
10.3.1 Where the Work involved is covered by unit prices contained in the Contract Documents, by
application of unit prices to the quantities of the items involved (subject to the provisions of paragraphs
10.9.1 through 10.9.3, inclusive).
10.3.2 By mutual acceptance of a lump sum price which includes overhead and profit.
10.3.3 When 10.3.1 and 10.3.2 are inapplicable, on the basis of the "cost of the work" (determined as
provided in paragraphs 10.4 and 10.5) plus a CONTRACTOR's fee for overhead and profit (determined
as provided in paragraph 10.6).
10.3.4 Before a Change Order or Supplemental Agreement is approved, the CONTRACTOR shall
submit pricing data regarding the changed or extra work. The CONTRACTOR shall certify that the data
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submitted is, to his best knowledge and belief, accurate, complete and current as of a mutually
determined specified data and that such data will continue to be accurate and complete during the
performance of the changed or extra work.
10.4 "Cost of the Work":
The term cost of the work means the sum of all costs necessarily incurred and paid by the
CONTRACTOR in the proper performance of the work. Except as otherwise may be agreed to in writing
by the CITY, such costs shall be in amount no higher than those prevailing in the locality of the Project,
shall include only the following items and shall not include any of the costs itemized in paragraph 10.5:
10.4.1 Payroll costs for employees in the direct employ of the CONTRACTOR in the performance of the
Work under schedules of job classifications agreed upon by the CITY and the CONTRACTOR. Payroll
costs for employees not employed full time on the Work shall be apportioned on the basis of their time
spent on the Work. Payroll costs shall include, but not be limited to, salaries and wages plus the cost of
fringe benefits which shall include social security contributions, unemployment, excise and payroll taxes,
workers' compensation, health and retirement benefits, bonuses, sick leave, vacation and holiday pay
applicable thereto. Such employees shall include superintendents and foremen at the site. The expenses
of performing Work after regular working hours, on Saturday, Sunday or legal holidays, shall be included
in the above to the extent authorized by the CITY.
10.4.2 Cost of all materials and equipment furnished and incorporated in the Work, including costs of
transportation and storage thereof, and Suppliers'field services required in connection therewith. All cash
discounts shall accrue to the CONTRACTOR unless the CITY deposits funds with the CONTRACTOR
with which to make payments, in which ease the cash discounts shall accrue to the CITY. All trade
discounts, rebates and refunds and all returns from sale of surplus materials and equipment shall accrue
to the CITY, and the CONTRACTOR shall make provisions so that they may be obtained.
10.4.3 Payments made by the CONTRACTOR to Subcontractors for Work performed by Subcontractors
or Suppliers acceptable to the CONTRACTOR and shall deliver such quotes to the CITY who will then
determine which quotes will be accepted. If a subcontract provides that the Subcontractor is to be paid on
the basis of"cost of the work" plus a fee, the Subcontractor's "cost of the work" shall be determined in the
same manner as the CONTRACTOR's "cost of work" as described in paragraphs 10.4 and 10.5; and the
Subcontractor's fee shall be established as provided for under subparagraph 10.6.2 clause b. All
subcontracts shall be subject to the other provisions of the Contract Documents insofar as applicable.
10.4.4 Costs of special consultants (including but not limited to engineers, architects, testing
laboratories, and surveyors) employed for services necessary for the completion of the Work.
10.4.5 Supplemental costs including the following:
a. The proportion of necessary transportation, travel and subsistence expenses of the
CONTRACTOR's employees incurred in discharge of duties connected with the Work.
b. Cost, including transportation and maintenance, of all materials, supplies, equipment, machinery,
appliances, office and temporary facilities at the site and hand tools not owned by the workers,
which are consumed in the performance of the Work, and cost less market value of such items
used but not consumed which remain the property of the CONTRACTOR.
C. Rentals of all construction equipment and machinery and the parts thereof whether rented from
the CONTRACTOR or others in accordance with rental agreements approved by the CITY and
the costs of transportation, loading, unloading, installation, dismantling and removal thereof-all in
accordance with terms of said rental agreements. The rental of any such equipment, machinery
or parts shall cease when the use thereof is no longer necessary for the work.
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d. Sales, consumer, use or similar taxes related to the Work, and for which the CONTRACTOR is
liable, imposed by Regulatory Requirements.
e. Deposits lost for causes other than negligence of the CONTRACTOR, and Subcontractor or
anyone directly or indirectly employed by any of them or for whose acts any of them may be
liable, and royalty payments and fees for permits and licenses.
f. Losses and damages (and related expenses), not compensated by insurance or otherwise, to the
Work or otherwise sustained by the CONTRACTOR in connection with the performance and
furnishing of the Work provided they have resulted from causes other than the negligence of the
CONTRACTOR, any Subcontractor, or anyone directly or indirectly employed by any of them or
for whose acts any of them may be liable. Such losses shall include settlements made with the
written consent and approval of the CITY. No such losses, damages and expenses shall be
included in the "cost of the work" for the purpose of determining the CONTRACTOR's fee. If
however, any such loss or damage requires reconstruction and the CONTRACTOR is placed in
charge thereof, the CONTRACTOR shall be paid for services a fee proportionate to that stated in
paragraphs 10 6.2a and 10.6 2.b.
g. The cost of utilities, fuel and sanitary facilities at the site.
h. Minor expenses such as telegrams, long distance telephone calls, telephone service at the site,
expressage and similar petty cash items in connection with the Work.
i. Cost of premiums for additional bonds and insurance required because of changes in the Work
and premiums for property insurance coverage within the limits of the deductible amounts
established by the CITY in accordance with Article 5.
10.5 Excluded Costs:
The term "cost of the work" shall not include any of the following:
10.5.1 Payroll costs and other compensation of CONTRACTOR's officers, executives, principals (of
partnership and sole proprietorships), general managers, engineers, architects, estimators, attorneys,
auditors, accountants, purchasing and contracting agency, expediters, timekeepers, clerks and other
personnel employed by CONTRACTOR whether at the site or in CONTRACTOR's principal or a branch
office for general administration of the Work and not specifically included in the agreed upon schedule of
job classifications referred to in paragraph 10.4.1 or specifically covered by paragraph 10.4.4 - all of
which are to be considered administrative costs covered by the CONTRACTOR's fee.
10.5.2 Expenses of CONTRACTOR's principal and branch offices other than CONTRACTOR's office at
the site.
10.5.3 Any part of CONTRACTOR's capital expenses including interest on CONTRACTOR's capital
employed for the Work and charges against CONTRACTOR for delinquent payments.
10.5.4 Cost of premiums for all bonds and for all insurance whether or not CONTRACTOR is required by
the Contract Documents to purchase and maintain the same (except for the cost of premiums covered by
subparagraph 10.4.5.i above.
10.5.5 Costs due to the negligence of CONTRACTOR, any Subcontractor, or anyone directly or indirectly
employed by any of them or for whose acts any of them may be liable, including but not limited to, the
correction of Defective Work, disposal of materials or equipment wrongly supplied and making good any
damage to property.
10.5.6 Other overhead or general expense costs of any kind and the costs of any item not specifically and
expressly included in paragraph 10.4.
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10.6 CONTRACTOR's Fee:
The CONTRACTOR's fee allowed to CONTRACTOR for overhead and profit shall be determined as
follows:
10.6.1 A mutually acceptable fixed fee; or if none can be agreed upon.
10.6.2 A fee based on the following percentages of the various portions of the "cost of the work":
a. For costs incurred under paragraphs 10.4.1 and 10.4.2, the CONTRACTOR's fee shall be fifteen
percent;
b. For costs incurred under paragraph 10.4.3, the CONTRACTOR's fee shall be ten percent; and if
a subcontract is on the basis of "cost of the work" plus a fee, the maximum allowable to
CONTRACTOR on account of overhead and profit of all Subcontractors and multiple tiers thereof
shall be ten percent;
C. No fee shall be payable on the basis of costs itemized under paragraphs 10.4.4, 10.4.5 and 10.5;
d. The amount of credit to be allowed by the CONTRACTOR to the CITY for any such change which
results in a net decrease in cost will be the amount of the actual net decrease plus a deduction in
CONTRACTOR's fee by an amount equal to ten percent of the net decrease; and
e. When both additions and credits are involved in any one change, the adjustment in
CONTRACTOR's fee shall be computed on the basis of the net change in accordance with
paragraphs 10.6.2.a through 10.6.2.d, inclusive.
10.7 Cost Breakdown:
Whenever the cost of any Work is to be determined pursuant to paragraphs 10.4 and 10.5, the
CONTRACTOR will submit in form acceptable to the CITY an itemized cost breakdown together with
supporting data.
10.8 Cash Allowances:
It is understood that CONTRACTOR has included in the Contract Price all allowances so named in the
Contract Documents and shall cause the Work so covered to be done by such Subcontractors or
Suppliers and for such sums within the limit of the allowances as maybe acceptable to the Contracting
Officer. CONTRACTOR agrees that:
10.8.1 The allowances include the cost to CONTRACTOR (less any applicable trade discounts) of
materials and equipment required by the allowances to be delivered at the site, and all applicable taxes;
and
10.8.2 CONTRACTOR's cost for unloading and handling on the site, labor, installation costs, overhead,
profit and other expenses contemplated for the allowances have been included in the Contract Price and
not in the allowances. No demand for additional payment on account of any thereof will be valid.
Prior to final payment, an appropriate Change Order will be issued to reflect actual amounts due the
CONTRACTOR on account of Work covered by allowances, and the Contract Price shall be
correspondingly adjusted.
10.9 Unit Price Work:
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10.9.1 Where the Contract Documents provide that all or part of the Work is to be Unit Price Work, initially
the Contract Price will be deemed to include for all Unit Price Work an amount equal to the sum of the
established unit prices for each separately identified item of Unit Price Work times the estimated quantity
of each item as indicated in the Contract. The estimated quantities of items of Unit Price Work are not
guaranteed and are solely for the purpose of comparison of bids and determining an initial Contract Price.
Determinations of the actual quantities and classifications of Unit Price Work performed by the
CONTRACTOR will be made by the CITY in accordance with paragraph 10.10.
10.9.2 Each unit price will be deemed to include an amount considered by the CONTRACTOR to be
adequate to cover the CONTRACTOR's overhead and profit for each separately identified item. If the
"Basis of Payment" clauses in the Contract Documents relating to any unit price in the bid schedule
requires that the said unit price cover and be considered compensation for certain work or material
essential to the item, this same work or material will not also be measured or paid for under any other pay
item which may appear elsewhere in the Contract Documents.
10.9.3. Payment to the CONTRACTOR shall be made only for the actual quantities of Work performed
and accepted or materials furnished, in conformance with the Contract Documents. When the accepted
quantities of Work or materials vary from the quantities stated in the bid schedule, or change documents,
the CONTRACTOR shall accept as payment in full, payment at the stated unit prices for the accepted
quantities of Work and materials furnished, completed and accepted; except as provided below:
a. When the quantity of Work to be done or material to be-furnished under an any item for which the
total cost of the item exceeds 10% of the total Contract Price, is increased by more than 25
percent of the quantity stated in the bid schedule, or change documents, either party to the
Contract, upon demand, shall be entitled to an equitable unit price adjustment on that portion of
the Work above 125 percent of the quantity stated in the bid schedule.
b. When the quantity of Work to be done or material to be furnished under any major item, for which
the total cost of the item exceeds 10% of the total Contract Price, is decreased by more than 25
percent of the quantity stated in the bid schedule, or change documents either party to the
Contract, upon demand, shall be entitled to an equitable price adjustment for the quantity of Work
performed or material furnished, limited to a total payment of not more than 75 percent of the
amount originally bid for the item.
10.10 Determinations for Unit Prices:
The Contracting Officer will determine the actual quantities and classifications of Unit Price Work
performed by the CONTRACTOR. The Contracting Officer will review with the CONTRACTOR
preliminary determinations on such matters before finalizing the costs and quantities on the Schedule of
Values. The Contracting Officer's acknowledge thereof will be final and binding on the CONTRACTOR,
unless, within ten days after the date of any such decisions, the CONTRACTOR delivers to the
Contracting Officer written notice of intention to appeal from such a decision.
ARTICLE 11 - CONTRACT TIME; COMPUTATION AND CHANGE
11.1 Commencement of Contract Time:
Notice To Proceed: The Contract Time will commence to run on the day indicated in the Notice to
Proceed.
11.2 Starting the Work:
No Work on Contract items shall be performed before the effective date of the Notice to Proceed. The
CONTRACTOR shall notify the Contracting Officer at least 24 hours in advance of the time actual
construction operations will begin. The CONTRACTOR may request a limited Notice to Proceed after
Award has been made, to permit him to order long lead materials which could cause delays in project
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completion. However, granting is within the sole discretion of the Contracting Officer, and refusal or failure
to grant a limited Notice To Proceed shall not be a basis for claiming for delay, extension of time, or
alteration of price.
11.3 Computation of Contract Time:
11.3.1 When the Contract Time is specified on a Calendar Days basis, all Work under the Contract shall
be completed within the number of Calendar Days specified. The count of Contract Time begins on the
day following receipt of the Notice to Proceed by the CONTRACTOR, if no starting day is stipulated
therein.
Calendar Days shall continue to be counted against Contract Time until and including the date of Final
Completion of the Work.
11.3.2 When the Contract completion time is specified as a fixed calendar date, it shall be the date of
Final Completion.
11.4 Time Change:
The Contract Time may only be changed by a Change Order or Supplemental Agreement.
11.5 Extension Due to Delays:
The right of the CONTRACTOR to proceed shall not be terminated nor the CONTRACTOR charged with
liquidated or actual damages because of any delays to the completion of the Work due to unforeseeable
causes beyond the control and without the fault or negligence of the CONTRACTOR, including, but not
restricted to the following: acts of nature or of the public enemy, acts of the CITY in contractual capacity,
acts of another contractor in the performance of a Contract with the CITY, floods, fires, epidemics,
quarantine restrictions, strikes, freight embargoes, unusually severe weather and delays of
Subcontractors or Suppliers due to such causes. Any delay in receipt of materials on the site, caused by
other than one of the specifically mentioned occurrences above, does not of itself justify a time extension,
provided that the CONTRACTOR shall within twenty four(24) hours from the beginning of any such delay
(unless the Contracting Officer shall grant a further period of the time prior to the date of final settlement
of the Contract) notify the Contracting Officer in writing of the cause of delay. The Contracting Officer shall
ascertain the facts and the extent of the delay and extend the time for completing the Work when the
findings of fact justify such an extension.
11.5.1 Delays or disruptions resulting from weight restrictions imposed on roadways, excessive traffic on
roadways or road construction and/or repairs, shall not be considered unforeseeable causes beyond the
control of the contractor.
11.6 Essence of Contract:
All time limits stated in the Contract Documents are of the essence of the Contract.
11.7 Reasonable Completion Time:
It is expressly understood and agreed by and between the CONTRACTOR and the CITY that the date of
beginning and the time for Final Completion of the Work described herein are reasonable times for the
completion of the Work.
11.8 Delay Damages:
Whether or not the CONTRACTOR's right to proceed with the Work is terminated, he and his Sureties
shall be liable for damages resulting from his refusal or failure to complete the Work within the specified
time.
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Liquidated damages for delay shall be paid by the CONTRACTOR or his Surety to the CITY in the
amount as specified in the Supplementary Conditions for each Calendar Day the completion of the Work
or any part thereof is delayed beyond the Contract Time required by the Contract, or any extension
thereof If such amount of liquidated damages is not established by the Contract Documents, then the
CONTRACTOR and his Surety shall be liable to the CITY for any actual damages occasioned by such
delay. The CONTRACTOR acknowledges that the liquidated damages established herein are not a
penalty but rather constitute an estimate of damages that the CITY will sustain by reason of delayed
completion. These liquidated damages are intended as compensation for losses difficult to estimate, and
include those items enumerated in the Supplementary Conditions.
These damages will continue to run both before and after termination in the event of default termination.
These liquidated damages do not cover excess costs of completion or CITY costs, fees, and charges
related to reprocurement. If a default termination occurs, the CONTRACTOR or his Surety shall pay in
addition to these damages, all excess costs and expenses related to completion as provided by Article
14.2.5.
ARTICLE 12-QUALITY ASSURANCE
12.1 Warranty and Guaranty:
The CONTRACTOR warrants and guarantees to the CITY that all Work will be in accordance with the
Contract Documents and will not be Defective. Prompt notice of all defects shall be given to the
CONTRACTOR. All Defective Work, whether or not in place, may be rejected, corrected or accepted as
provided for in this Article.
12.2 Access to Work:
The CITY and its Project Management representatives, testing agencies and governmental agencies with
jurisdiction interests will have access to the Work at reasonable times for their observation, inspecting
and testing. The CONTRACTOR shall provide proper and safe conditions for such access.
12.3 Tests and Inspections:
12.3.1 The CONTRACTOR shall give the Contracting Officer timely notice of readiness of the Work for all
required inspections, tests or approvals.
12.3.2 If Regulatory Requirements of any public body having jurisdiction require any Work (or part
thereof) to specifically be inspected, tested or approved, the CONTRACTOR shall assume full
responsibility therefor, pay all costs in connection therewith and furnish the Contracting Officer the
required certificates of inspection, testing or approval. The CONTRACTOR shall also be responsible for
and shall pay all costs in connection with any inspection or testing required in connection with CITY's
acceptance of a Supplier of materials or equipment proposed to be incorporated in the Work, or of
materials or equipment submitted for approval prior to the CONTRACTOR's purchase thereof for
incorporation in the Work. The cost of all inspections, tests and approvals in addition to the above which
are required by the Contract Documents shall be paid by the CONTRACTOR. The CITY may perform
additional tests and inspections which it deems necessary to insure quality control. All such failed tests or
inspections shall be at the CONTRACTOR's expense.
12.3.3 If any Work (including the work of others) that is to be inspected, tested or approved is covered
without written concurrence of the Contracting Officer, it must, if requested by the Contracting Officer, be
uncovered for observation. Such uncovering shall be at the CONTRACTOR's expense unless the
CONTRACTOR has given the Contracting Officer timely notice of CONTRACTOR's intention to cover the
same and the Contracting Officer has not acted with reasonable promptness in response to such notice.
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12.3.4 Neither observations nor inspections, tests or approvals by the CITY or others shall relieve the
CONTRACTOR from the CONTRACTOR's obligations to perform the Work in accordance with the
Contract Documents.
12.4 Uncovering Work:
12.4.1 If any Work is covered contrary to the written request of the Contracting Officer, it must, if
requested by the Contracting Officer, be uncovered for the Contracting Officer's observation and replaced
at the CONTRACTOR's expense.
12.4.2 If the Contracting Officer considers it necessary or advisable that covered Work be observed
inspected or tested, the CONTRACTOR, at the Contracting Officer's request shall uncover, expose or
otherwise make available for observation, inspection or testing as the Contracting Officer may require,
that portion of the Work in question, furnishing all necessary labor, material and equipment. If it is found
that such Work is Defective, the CONTRACTOR shall bear all direct, indirect and consequential costs of
such uncovering, exposure, observation, inspection and testing and of satisfactory reconstruction,
(including but not limited to fees and charges of engineers, architects, attorneys and other professionals)
and the CITY shall be entitled to an appropriate decrease in the Contract Price. If, however, such Work is
not found to be Defective, the CONTRACTOR shall be allowed an increase in the Contract Price or an
extension of the Contract Time, or both directly attribute to such uncovering, exposure, observation,
inspection, testing and reconstruction.
12.5 CITY May Stop the Work:
If the Work is Defective, or the CONTRACTOR fails to supply suitable materials or equipment, or fails to
furnish or perform the Work in such a way that the completed. Work will conform to the Contract
Documents, the Contracting Officer may order the CONTRACTOR to stop the Work, or any portion
thereof, until the cause for such order has been eliminated;
12.6 Correction or Removal of Defective Work:
If required by the Contracting Officer, the CONTRACTOR shall promptly, as directed, either correct all
Defective Work, whether or not fabricated, installed or completed, or, if the Work has been rejected by the
Contracting Officer, remove it from the site and replace it with Work which conforms to the requirements
of the Contract Documents. The CONTRACTOR shall bear all direct, indirect and consequential costs of
such correction removal (including but not limited to fees and charges of engineers, architects, attorneys
and other professionals) made necessary thereby.
12.7 One Year Correction Period:
If within one year after the date of Final Completion or such longer period of time as may be prescribed by
Regulatory Requirements or by the terms of any applicable special guarantee required by the Contract
Documents, any Work is found to be Defective, the CONTRACTOR shall promptly, without cost to the
CITY and in accordance with the Contracting Officer's written instructions, either correct such Defective
Work, or, if it has been rejected by the Contracting Officer, remove it from the site and replace it with
conforming Work. If the CONTRACTOR does not promptly comply with the terms of such instructions, or
in an emergency where delay would cause serious risk of loss or damage, the CITY may have the
Defective Work corrected or the rejected Work removed and replaced, and all direct, indirect and
consequential costs of such removal and replacement (including but not limited to fees and charges of
engineers, architects, attorneys and other professionals) will be paid by the CONTRACTOR. In special
circumstances where a particular item of equipment is placed in continuous service for the benefit of the
CITY before Substantial Completion of all the Work, the correction period for that item may begin on an
earlier date if so provided in the Specifications or by Change Order. Provisions of this paragraph are not
intended to shorten the statute of limitations for bringing an action.
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12.8 Acceptance of Defective Work:
Instead of requiring correction or removal and replacement of Defective Work, the Contracting Officer
may accept Defective Work, the CONTRACTOR shall bear all direct, indirect and consequential costs
attributable to the Contracting Officer's evaluation of and determination to accept such Defective Work
(costs to include but not limited to fees charges of engineers, architects, attorneys, and other
professionals). If any such acceptance occurs prior to final payment, a Change Order will be issued
incorporating the necessary revisions in the Contract Documents with respect to the Work; and the CITY
shall be entitled to an appropriate decrease in the Contract Price. If the CITY has already made final
payment to the CONTRACTOR, an appropriate amount shall be paid by the CONTRACTOR or his Surety
to the CITY.
12.9 CITY May Correct Defective Work:
If the CONTRACTOR fails within a reasonable time after written notice from the Contracting Officer to
proceed to correct Defective Work or to remove and replace rejected Work as required by the Contracting
Officer in accordance with paragraph 12.6, or if the CONTRACTOR fails to perform the Work in
accordance with the Contract Documents, or if the CONTRACTOR fails to comply with any other
provision of the Contract Documents, the CITY may, after seven days' written notice to the
CONTRACTOR, correct and remedy any such deficiency. In exercising the rights and remedies under this
paragraph the CITY shall proceed expeditiously. To the extent necessary to complete corrective and
remedial action, the Contracting Officer may exclude the CONTRACTOR from all or part of the site, take
possession of all or part of the Work, and suspend the CONTRACTOR's services related thereto, take
possession of the CONTRACTOR's tools, appliances, construction equipment and machinery at the site
and incorporate in the Work all materials and equipment stored at the site or approved remote storage
sites or for which the CITY has paid the CONTRACTOR but which are stored elsewhere, the
CONTRACTOR shall allow the Contracting Officer and his authorized representatives such access to the
site as may necessary to enable the Contracting Officer to exercise the rights and remedies under this
paragraph. All direct, indirect and consequential costs of the CITY in exercising such rights and remedies
will be charged against the CONTRACTOR, and a Change Order will be issued incorporating the
necessary revisions in the Contract Documents with respect to the Work; and the CITY shall be entitled to
all appropriate decrease in the Contract Price. Such direct, indirect and consequential costs will include
but not be, limited to fees and charges of engineers, architects; attorneys and other professionals, all
court and arbitration costs and all costs of repair and replacement of work of others destroyed or
damaged by correction, removal or replacement of the CONTRACTOR's Defective Work. The
CONTRACTOR shall not be allowed an extension of the Contract Time because of any delay in
performance of the Work attributable to the exercise by the Contracting Officer of the CITY's rights and
remedies hereunder.
ARTICLE 13- PAYMENTS TO CONTRACTOR AND COMPLETION
13.1 Schedule of Values:
The Schedule of Values established as provided in paragraph 6.6 will serve as the basis for progress
payments and will be incorporated into a form of Application for Payment acceptable to the Contracting
Officer. Progress payments on account of Unit Price Work will be based on the number of units
completed.
13.2 Preliminary Payments:
Upon approval of the Schedule of Values the CONTRACTOR may be paid for direct costs substantiated
by paid invoices and other prerequisite documents required by the General Requirements. Direct costs
shall include the cost of bonds, insurance, approved materials stored on the site or at approved remote
storage sites, deposits required by a Supplier prior to fabricating materials, and other approved direct
mobilization costs substantiated as indicated above. These payments shall be included as a part of the
total Contract Price as stated in the Contract.
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13.3 Application For Progress Payment:
The CONTRACTOR shall submit to the Contracting. Officer(or Project Manager if designated by the City)
at least twenty days before the date established for each progress payment (but not more than once a
month) for review an Application for Payment filled out and signed by the CONTRACTOR covering the
Work completed as of the date of the Application for Payment and accompanied by such supporting
documentation as is required by the Contract Documents, which shall include the quantity, location and
completion date of the invoiced work. Progress payments will be made as the Work progresses on a
monthly basis.
13.4 Review of Application for Progress Payment:
Contracting Officer (or Project Manager) will either indicate in writing a recommendation of payment or
return the Application for Payment to the CONTRACTOR indicating in writing the Contracting Officer's
reasons for refusing to recommend payment. In the latter ease, the CONTRACTOR may make the
necessary corrections and resubmit the Application for Payment.
13.5 Stored Materials and Equipment:
If payment is requested on the basis of materials and equipment not incorporated in the Work but
delivered and suitably stored at the site or at another location agreed to in writing, the Application for
Payment shall also be accompanied by a bill of sale, paid invoice or other documentation warranting that
the CITY has received the materials and equipment free and clear of all charges, security interests and
encumbrances and evidence that the materials and equipment are covered by appropriate property
insurance and other arrangements to protect the CITY's interest therein, all of which will be satisfactory to
the Contracting Officer. No payment will be made for perishable materials that could be rendered useless
because of long storage periods. No progress payment will be made for living plant materials until
planted.
13.6 CONTRACTOR's Warranty of Title:
The CONTRACTOR warrants and guarantees that title to all Work, materials and equipment covered by
any Application for Payment, whether incorporated in the Project or not, will pass to the CITY no later
than the time of payment free and clear of any claims, liens, security interest and further obligations.
13.7 Withholding of Payments:
The CITY may withhold or refuse payment for any of the reasons listed below provided it gives written
notice of its intent to withhold and of the basis for withholding:
13.7.1 The Work is Defective, or completed Work has been damaged requiring correction or replacement,
or has been installed without approval of Shop Drawings, or by an unapproved Subcontractor, or for
unsuitable storage of materials and equipment.
13.7.2 The Contract Price has been reduced by Change Order,
13.7.3 The CITY has been required to correct Defective Work or complete Work in accordance with
paragraph 12.9.
13.7.4 The CITY's actual knowledge of the occurrence of any of the events enumerated in paragraphs
14.2.1.a through 14.2.1.k inclusive.
13.7.5 Claims have been made against the CITY or against the funds held by the CITY on account of
the CONTRACTOR's actions or inactions in performing this Contract, or there are other items entitling the
CITY to a set off.
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13.7.6 Subsequently discovered evidence or the results of subsequent inspections or test, nullify any
previous payments for reasons stated in subparagraphs 13.7.1 through 13.7.5.
13.7.7 The CONTRACTOR has failed to fulfill or is in violation of any of his obligations under any
provision of this Contract.
13.8 Retainage:
At any time the CITY finds that satisfactory progress is not being made it may in addition to the amount
withheld under 13.7 retain a maximum amount equal to 10% of the total amount earned on all subsequent
progress payments. This retainage may be released at such time as the Contracting Officer finds that
satisfactory progress is being made.
13.9 Request for Release of Funds:
If the CONTRACTOR believes the basis for withholding is invalid or no longer exists, immediate written
notice of the facts and Contract provisions on which the CONTRACTOR relies, shall be given to the CITY,
together with a request for release of funds and adequate documentary evidence proving that the
problem has been cured. In the case of withholding which has occurred at the request of the Department
of Labor, the CONTRACTOR shall provide a letter from the Department of Labor stating that withholding
is no longer requested. Following such a submittal by the CONTRACTOR, the CITY shall have a
reasonable time to investigate and verify the facts and seek additional assurances before determining
whether release of withheld payments is justified.
13.10 Substantial Completion:
When the CONTRACTOR considers the Work ready for its intended use the CONTRACTOR shall notify
the Contracting Officer in writing that the Work or a portion of Work which has been specifically identified
in the Contract Documents is substantially complete (except for items specifically listed by the
CONTRACTOR as incomplete) and request that the CITY issue a certificate of Substantial Completion.
Within a reasonable time thereafter, the Contracting Officer, the CONTRACTOR and appropriate
Consultant(s) shall make an inspection of the Work to determine the status of completion. If the
Contracting Officer does not consider the Work substantially complete, the Contracting Officer will within
fourteen days execute and deliver to the CONTRACTOR a certificate of Substantial Completion with
tentative list of items to be completed or corrected. At the time of delivery of the certificate of Substantial
Completion the Contracting Officer will deliver to the CONTRACTOR a written division of responsibilities
pending Final Completion with respect to security, operation, safety, maintenance, heat, utilities,
insurance and warranties which shall be consistent with the terms of the Contract Documents.
The CITY shall be responsible for all CITY costs resulting from the initial inspection and the first re-
inspection, the CONTRACTOR shall pay all costs incurred by the CITY resulting from re-inspection, the
CONTRACTOR shall pay all costs incurred by the CITY resulting from re-inspections, thereafter.
13.11 Access Following Substantial Completion:
The CITY shall have the right to exclude the CONTRACTOR from the Work after the date of Substantial
Completion, but the CITY shall allow CONTRACTOR reasonable access to complete or correct items on
the tentative list.
13.12 Final Inspection:
Upon written notice from the CONTRACTOR that the entire Work or an agreed portion thereof is
complete, the Contracting Officer will make a final inspection with the CONTRACTOR and appropriate
Consultants and will notify the CONTRACTOR in writing of all particulars in which this inspection reveals
that the Work is incomplete or Defective. The CONTRACTOR shall immediately take such measures as
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are necessary to remedy such deficiencies. The CONTRACTOR shall pay for all costs incurred by the
CITY resulting from re-inspections.
13.13 Final Completion and Application for Payment:
After the CONTRACTOR has completed all such corrections to the satisfaction of the Contracting Officer
and delivered all maintenance and operating instructions, schedules, guarantees, bonds, certificates of
payment to all laborers, Subcontractors and Suppliers, certificates of inspection, marked-up record
documents and other documents - all as required by the Contract Documents; and after the Contracting
Officer has indicated in writing that the Work has met the requirements for Final Completion, and subject
to the provisions of paragraph 13,17, the CONTRACTOR may make application for final payment
following the procedure for progress payments. The final Application for Payment shall be accompanied
by all certificates, warranties, guarantees, releases, affidavits, and other documentation required by the
Contract Documents.
13.14 Final Payment:
13.14.1 If on the basis of the Contracting Offices observation of the Work during construction and final
inspection, and the Contracting Officer's review of the final Application for Payment and accompanying
documentation - all as required by the Contract Documents; and the Contracting Officer is satisfied that
the Work has been completed and the CONTRACTOR's other obligations under the Contract Documents
have been fulfilled, the CITY will process final Application for Payment. Otherwise, the Contracting Officer
will return the Application for Payment to the CONTRACTOR, indicating in writing the reasons for refusing
to process final payment; in which case the CONTRACTOR shall make the necessary corrections and
resubmit the final Application for Payment.
13.14.2 If, through no fault of the CONTRACTOR, Final Completion of the Work is significantly delayed,
the Contracting Officer shall, upon receipt of the CONTRACTOR's final Application for Payment, and
without terminating the Contract, make payment of the balance due for that portion of the Work fully
completed and accepted. If the remaining balance to be held by the CITY for Work not fully completed or
corrected is less than the retainage provided for in paragraph 13.8, and if bonds have been furnished as
required in paragraph 5.1, the written consent of the Surety to the payment of the balance due for that
portion of the Work fully completed and accepted shall be submitted by the CONTRACTOR to the CITY
with the application for such payment. Such payment shall be made under the terms and conditions
governing final payment, except that it shall not constitute a waiver of claims.
13.15 Final Acceptance:
Following certification of payment of payroll and revenue taxes, and final payment to the CONTRACTOR,
the CITY will issue a letter of Final Acceptance upon request, releasing the CONTRACTOR from further
obligations under the Contract, except as provided in paragraph 13.16.
13.16 CONTRACTOR's Continuing Obligation:
The CONTRACTOR's obligation to perform and complete the Work and pay all laborers, Subcontractors,
and materialmen in accordance with the Contract Documents shall be absolute. Neither any progress or
final payment by the CITY, nor the issuance of a certificate of Substantial Completion, nor any use or
occupancy of the Work or any part thereof by the CITY or Using Agency, nor any act of acceptance by
the CITY no any failure to do so, nor any review and approval of a Shop Drawing or sample submission,
nor any correction of Defective Work by the CITY will constitute an acceptance of Work not in accordance
with the Contract Documents or a release of the CONTRACTOR's obligation to perform the Work in
accordance with the Contract Documents.
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13.17 Waiver of Claims by CONTRACTOR:
The making and acceptance of final payment will constitute a waiver of all claims by the CONTRACTOR
against CITY other than those previously made in writing and still unsettled.
13.18 No Waiver of Legal Rights:
The CITY shall not be precluded or be estopped by any payment, measurement, estimate, or certificate
made either before or after the completion and acceptance of the Work and payment therefor, from
showing the true amount and character of the Work and payment therefore, performed and materials
furnished by the CONTRACTOR, nor from showing that any payment, measurement, estimate or
certificate and payment in accordance therewith, from recovering from the CONTRACTOR or his
Sureties, or both, such damages as it may sustain by reason of his failure to comply with requirements of
the Contract Documents. Neither the acceptance by the CITY, or any representative of the CITY, any
payment for or acceptance of the whole or any part of the Work, nor any extension of the Contract Time,
any possession taken by the CITY, shall operate as a waiver of any portion of the Contract or of any
power herein reserved, or of any right to damages. A waiver by the CITY of any breach of the Contract
shall not be held be a waiver of any other subsequent breach.
ARTICLE 14—SUSPENSION OF WORK, DEFAULT AND TERMINATION
14.1 CITY May Suspend Work:
14.1.1 The CITY may, at any time, suspend the Work or any portion thereof by notice in writing to the
CONTRACTOR. If the Work is suspended without cause the CONTRACTOR shall be allowed an
increase in the Contract Price or an extension of the Contract Time, or both, directly attributable to any
suspension, if the CONTRACTOR makes an approved claim therefore as provided in Article 15.
However, no adjustment is due to the fault or negligence of the CONTRACTOR, or that suspension in
necessary for Contract compliance, or that performance would have been so suspended, delayed, or
interrupted by any other cause, including the fault or negligence of the CONTRACTOR.
14.1.2 In case of suspension of Work, the CONTRACTOR shall be responsible for preventing damage to
or loss any of the Work already performed and of all materials whether stored on or off the site or
approved remote storage sites.
14.2 Default of Contract.
14.2.1 If the CONTRACTOR:
a. Fails to begin the Work under the Contract within the time specified in the Proposal, or
b. Fails to perform the Work in accordance with the Contract Documents (including, but not limited
to, failure to supply sufficient skilled workmen or suitable materials or equipment or failure to
adhere to the progress schedule established under paragraph 6.6 as revised from time to time),
or
C. Performs the Work unsuitably or neglects or refuses to remove materials or to correct Defective
Work.
d. Discontinues the prosecution of the Work, or
e. Fails to resume Work which has been discontinued within a reasonable time after notice to do so,
or
f. Becomes insolvent, except that if the CONTRACTOR declares bankruptcy termination shall be in
accordance with 111 U.S.C. 362 and/or 11 U.S.C. 365. In the event the CONTRACTOR declares
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bankruptcy the CONTRACTOR agrees that the Contract will be assumed or rejected in a timely
manner so that Contract will be completed by the date specified in the Contract.
g. Allows any final judgment to stand against him unsatisfied for period of 60 days, or
h. Makes an assignment for the benefit of creditors without the consent of the Contracting Officer, or
i. Disregards Regulatory Requirements of any public body having jurisdiction, or
j. Otherwise violates in any substantial way any provisions of the Contact Documents, or
k. For any cause whatsoever, fails to carry on the Work in an acceptable manner, the Contracting
Officer may give notice in writing to the CONTRACTOR and his Surety of such delay, neglect, or
default.
14.2.2 If the CONTRACTOR or Surety, within the time specified in the above notice of default, shall not
proceed in accordance therewith, then the CITY may, upon written notification from the Contracting
Officer of the fact of such, delay, neglect or default and the CONTRACTOR's failure to comply with. such
notice have full power and authority without violating the Contract, to take the prosecution of the Work out
of the hands of the CONTRACTOR. The CITY may terminate the services of the CONTRACTOR,
exclude the CONTRACTOR from the site and take possession of the Work and of all the
CONTRACTOR's tools, appliances, construction equipment and machinery at the sire and use the same
to the full extent they could be used by the CONTRACTOR (without liability to the CONTRACTOR for
trespass or conversion), incorporate in the Work all materials and equipment stored at the site or for
which the CITY has paid the CONTRACTOR but which are stored elsewhere, and finish the Work as the
CITY may deem expedient. The CITY may enter into an agreement for the completion of said Contract
according to the terms and provisions thereof, or use such other methods that in the opinion of the
Contracting Officer are required for the completion of said Contract in an acceptable manner.
14.2.3 The Contracting Officer may, by written notice to the CONTRACTOR and his Surety or his
representative, transfer the employment of the Work from the CONTRACTOR to the Surety, or if the
CONTRACTOR abandons the Work undertaken under the Contract, the Contracting Officer may, at his
option with written notice to the Surety and without any written notice to the CONTRACTOR, transfer the
employment for said Work directly to the Surety. The Surety shall submit its plan for completion, to the
CITY for approval prior to beginning completion of the Work. Approval of such contracts shall be in
accordance with all applicable requirements and procedures for approval of subcontracts as stated in the
Contract Documents.
14.2.4 Upon receipt of the notice terminating the services of the CONTRACTOR, the Surety shall enter
upon the premises and take possession of all materials, tools, and appliances thereon for the purpose of
completing the Work included under the Contract and employ by contract or otherwise any person or
persons to finish the Work and provide the materials therefor, without termination of the continuing full
force and effect of this Contract. In case of such transfer of employment to the Surety, the Surety shall be
paid in its own name on estimates covering Work subsequently performed under the terms of the
Contract and according to the terms thereof without any right of the CONTRACTOR to make any claim for
the same or any part thereof.
14.2.5 If the Contract is terminated for default, the CONTRACTOR and the Surety shall be jointly and
severally liable for damages for delay as provided by Article 11.8, and for the excess cost of completion,
and all costs and expenses incurred by the CITY in completing the Work or arranging for completion of
the Work, including but not limited to costs of assessing the Work to be done, costs associated with
advertising, soliciting or negotiating for bids or proposals for completion, and other reprocurement costs.
Following termination the CONTRACTOR shall not be entitled to receive any further balance of the
amount to be paid under the Contract until the Work is fully finished and accepted, at which time if the
unpaid balance exceeds the amount due the CITY and any amounts due to persons for whose benefit the
CITY has withheld funds, such excess shall be paid by the CITY to the CONTRACTOR. If the damages,
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costs, and expenses due the CITY exceed the unpaid balance, the CONTRACTOR and his Surety shall
pay the difference.
14.2.6 If, after notice of termination of the CONTRACTOR's right to proceed under the provisions of this
clause, it is determined for any reason that the CONTRACTOR was not in default under the provisions of
this clause, or that the delay was excusable under the provisions of this clause, or that termination was
wrongful, the rights and obligations of the parties shall be determined in accordance with the clause
providing for convenience termination.
14.3 Rights or Remedies:
Where the CONTRACTOR's services have been so terminated by the CITY, the termination will not affect
any rights or remedies of the CITY against the CONTRACTOR then existing or which may thereafter
accrue. Any retention or payment of moneys due the CONTRACTOR by the CITY will not release the
CONTRACTOR from liability.
14.4 Convenience Termination:
14.4.1 The performance of the Work may be terminated by the CITY in accordance with this section in
whole or in part whenever, for any reason the Contracting Officer shall determine that such termination is
in the best interest of the CITY. Any such termination shall be effected by delivery to the CONTRACTOR
of a "Notice of Termination," specifying termination-is for the convenience of the CITY the extent to which
performance of Work is terminated, and the date upon which such termination becomes effective.
Immediately upon receipt of a "Notice of Termination" and except as otherwise directed by the
Contracting Officer, the CONTRACTOR shall:
a. Stop Work on the date and to the extent specified in the "Notice of Termination";
b. Place no further orders or subcontracts for materials, services, or facilities except as may be
necessary for completion of such portion of the Work as is not terminated;
C. Terminate all orders and subcontracts to the extent that they relate to the performance of Work
terminated by the "Notice of Termination."
d. With the written approval of the Contracting Officer, to the extent he may require, settle all
outstanding liabilities and all claims arising out of such termination of orders and subcontracts,
the costs which would be reimburse, in whole, or in part in accordance with the provisions of the
Contract;
e. Submit to the Contracting Officer a list, certified as to quantity and quality, of any or all items of
termination inventory exclusive of items the disposition of which had been directed or authorized
by the Contracting Officer;
f. Transfer to the Contracting Officer the completed or partially completed record drawings, Shop
Drawings, information, and other property which, if the Contract had been completed, would be
required to be furnished to the CITY;
g. Take such action as may be necessary, or as the Contracting Officer may direct, for the
protection and preservation of the property related to the Contract which is in the possession of
the CONTRACTOR and in which the CITY has or may acquire any interest.
The CONTRACTOR shall proceed immediately with the performance of the above obligations.
14.4.2 When the CITY orders termination of the Work effective on a certain date, all Work in place as of
that date will be paid for in accordance with Article 13 of the Contract. Materials required for completion
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and on hand but not incorporated in the Work will be paid for at invoice cost plus 15% with materials
becoming the property of the CITY or the CONTRACTOR may retain title to the materials and be paid an
agreed upon lump sum. Materials on order shall be canceled, and the CITY shall pay reasonable factory
cancellation charges with the option of taking delivery of the materials in lieu of payment of cancellation
charges. The CONTRACTOR shall be paid 10% of the cost, freight not included, of materials canceled,
and direct expenses only for CONTRACTOR chartered freight transport which cannot be canceled
without charges, to the extent that the CONTRACTOR can establish them. The extra costs due to
cancellation of bonds and insurances and that part of job start-up and phase-out costs not amortized by
the amount of Work accomplished shall be paid by the CITY. Charges for loss of profit or consequential
damages shall not be recoverable except as provided above.
14.4.3 The termination claim shall be submitted promptly, but in no event later than 90 days from the
effective date of termination, unless one or more extensions in writing are granted by the Contracting
Officer upon request of the CONTRACTOR made in writing within the 90 day period. Upon failure of the
CONTRACTOR to submit his termination claim within the time allowed, the Contracting Officer may
determine, on the basis of information available to him, the amount, if any, due to the CONTRACTOR by
reason of the termination and shall thereupon pay to the CONTRACTOR by reason of the termination and
shall pay to the CONTRACTOR the amount determined as follows:
a. All costs and expenses reimbursable in accordance with the Contract not previously paid to the
CONTRACTOR for the performance of the Work prior to the effective date of the "Notice of
Termination,"
b. So far as not included under "a" above, the cost of settling and paying claims arising out of the
termination of the Work under subcontracts or orders which are properly chargeable to the
terminated portions of the Contract;
C. The reasonable costs of settlement with respect to the terminated portion of the Contract
heretofore, to the extent that these costs have not been covered under the payment provisions of
the Contract.
14.4.4 The CONTRACTOR shall have the right of appeal under the CITY's claim procedures, as defined
in Article 15, for any determinations made by the Contracting Officer, except if the CONTRACTOR has
failed to submit his claim within the time provided and has failed to request extension of such time,
CONTRACTOR shall have no such right of appeal.
In arriving at the amount due the CONTRACTOR under this section, there shall be deducted:
a. All previous payments made to the CONTRACTOR for the performance of Work under the
Contract prior to termination;
b. Any claim for which the CITY may have against the CONTRACTOR;
C. The agreed price for, or the proceeds of sale of, any materials, supplies, or other things acquired
by the CONTRACTOR or sold pursuant to the provisions of this section and not otherwise
recovered by or credited to the CITY; and,
d. All progress payments made to the CONTRACTOR under the provisions of this section.
14.4.5 Where the Work has been terminated by the CITY said termination shall not affect or terminate
any of the rights of the CITY against the CONTRACTOR or his Surety then existing or which may
thereafter accrue because of such default. Any retention or payment of monies by the CITY due to the
CONTRACTOR under the terms of the Contract shall not release the CONTRACTOR or his Surety from
liability.
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Unless otherwise provided far in the Contract Documents, or by applicable statute, the CONTRACTOR,
from the effective date or termination and for a period of three years after final settlement under this
Contract, shall preserve and make available to the CITY at all reasonable times at the office of the
CONTRACTOR, all its books, records, documents, and other evidence bearing on the cost and expenses
of the CONTRACTOR under his Contract and relating to the Work terminated hereunder.
ARTICLE 15- CLAIMS AND DISPUTES
15.1 Notification:
In addition to the notice requirements set out elsewhere in this Contract, if the CONTRACTOR becomes
aware of any act or occurrence which may form the basis of a claim by the CONTRACTOR for additional
compensation or an extension of time for performance, or if any dispute arises regarding a question of
fact or interpretation of the Contract, the CONTRACTOR shall immediately inform the Project Manager. If
the matter cannot be resolved by agreement within 7 days, the CONTRACTOR shall, within the next 14
days, submit an "Intent to Claim" in writing to the Project Manager. The claim, if not resolved, shall be
presented to the Project Manager, in writing, within 60 days following receipt of the "Intent to Claim."
Receipt of the claim will be acknowledged in writing by the Project Manager. The CONTRACTOR agrees
that unless these written notices are provided, the CONTRACTOR will have no entitlement to additional
time or compensation for such act, event or condition. The CONTRACTOR shall in any case continue
diligent performance of the Contract.
15.2 Presenting Claim:
The claim shall specifically include the following:
15.2.1 The act, event or condition giving rise to the claim.
15.2.2 The Contract provisions which apply to the claim and under which relief is provided.
15.2.3 The item or items of Contract Work affected and how they are affected.
15.2.4 The specific relief requested, including contract time if applicable, and the basis upon which it
was calculated.
15.3 Claim Validity, Additional Information, and Project Manager's Actions:
The claim, in order to be valid, must not only show that the CONTRACTOR suffered damages or delay
but that those conditions were actually a result of the act, event or condition complained of and that the
Contract provides entitlement to relief to the CONTRACTOR for such act, event, or condition. The Project
Manager reserves the right to make written request to the CONTRACTOR at any time for additional
information which the CONTRACTOR may possess relative to the claim. The CONTRACTOR agrees to
provide the Project Manager such additional information within 30 days of receipt of such a request.
Failure to furnish such additional information may be regarded as a waiver of the claim. The claim, if not
resolved by agreement within 60 days of its receipt, will automatically be forwarded to the Contracting
Officer for formal written decision.
15.4 Contracting Officer's Decision:
The CONTRACTOR will be furnished the Contracting Officer's decision within the next 90 days, unless
additional information is requested by the Contracting Officer. The Contracting Officer's decision is final
and conclusive unless fraudulent as to the claim.
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15.5 Notice of Appeal:
Within 30 days of receipt of the decision the CONTRACTOR may deliver a "Notice of Appeal" to the City
Manager. The notice shall include specific exceptions to the Contracting Officer's decision, including
specific provisions of the Contract, which the CONTRACTOR intends to rely upon in the appeal. General
assertions that the Contracting Officer's decision is contrary to law or to fact are not sufficient.
15.6 City Manager's Decision:
The decision of the City Manager will be rendered within 120 days of "Notice of Appeal." This decision
constitutes the exhaustion of contractual and administrative remedies. The time limits given above may
only be extended by mutual consent. The decision of the City Manager shall be final and conclusive
unless the CONTRACTOR commences action through the court within 120 days from receipt thereof.
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GENERAL. These Supplementary General Conditions make additions,deletions,or revisions to the General
Conditions as indicated herein. All provisions which are not so added, deleted,or revised remain in full force
and effect. Terms used in these Modifications to the General Conditions which are defined in the General
Conditions have the meanings assigned to them in the General Conditions.
ARTICLE 2 AURTORITIES AND LIMITATIONS
2.1 Authorities and Limitations:Add the following:
2.1.5 Authority of the Engineer and the City's Representative
Engineer— R&M Consultants, Inc. (R&M) is the firm responsible for providing the engineering design of the
Construction Contract documents for the City. R&M shall be the Engineer of Record and perform technical
engineering duties including,without limitation,reviewing and approving material and shop drawing submittals,
technical clarifications, design modifications, and providing quality assurance testing and inspection at the
direction of the City's Representative.
City's Representative — The City's Representative shall be the person(s) responsible for supervising and
administering the Construction Contract on behalf of the City. The City's Representative shall be the
Contracting Officer and Project Manager, and shall observe the work in progress on behalf of the City and
direct the Engineer to conduct construction inspection services. The City's Representative, with input as
solicited from the design Engineer, shall make determinations on any and all questions which may arise
concerning the quality, quantity, and acceptability of materials furnished, the Work performed, the rate of
progress of the Work and interpretations of the Contract Documents.The Contractor shall at all times carry out
and fulfill the written instructions and written directions of the City's Representative regarding the Contract
Documents.
The City's Representative and the Engineer are not responsible for construction means,methods,techniques,
sequences, or procedures, or for safety precautions and programs in connection with the work. Visits and
observations made by the City's Representative or the Engineer shall not relieve the Contractor of his
obligation to conduct inspections of the materials and work for compliance with the requirements, and to
provide adequate safety precautions, in conformance with the intent of the Contract.
ARTICLE 3 CONTRACT DOCUMENTS: INTENT, AMENDING, REUSE
3.3 Scope of Work. Add the following:
CONTRACTOR shall perform all work identified in the design drawings and described in the Invitation for Bids,
Bid Schedule and further described and in accordance with the entire Contract Documents, including but not
limited to, all permits.
3.5.2 Discrepancy-Order of Precedence. Replace section with the following:
When conflicts,errors,or discrepancies within the Contract Documents exist,the order precedence from most
governing to least governing will be as follows:
1. Project Permit Requirements
2. Contents of Addenda
3. Drawings and Notes (recorded dimensions will govern over scaled dimensions, large scale details
over small scale, schedules over plans)
4. Most Currently Adopted State and Local Design Codes and Amendments
5. Special Provisions
6. Technical Specifications/Notes
7. General Conditions (as modified by this section)
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ARTICLE 4— LANDS AND PHYSICAL CONDITIONS
4.4.4 Existing Utilities.Add the following:
The Contractor shall repair damages to any existing utility (includes outfall pipes) above or below
ground,whether or not such existing active utility is indicated on the drawings,and immediately report
such damage to the City's Representative. All costs of repair for damages due to Contractor's
negligence will be paid by the Contractor.
Add the following:
4.8 Contractor Surveys.
4.8.1 Construction Surveys
a) The Contractor shall be responsible for surveying and replacing all bench marks or
monuments disturbed by work to be executed under this Contract.
b) Contractor shall conduct a certified as-built survey and keep a certified redline as-built
drawing set of the project as it is constructed. The redline drawing set must be kept in good
condition and available for City review during the project's construction phase.
4.8.2 As-Built Drawings
The Contractor shall provide a certified redline as-built drawing set of the completed project to the City
within ten (10)days of final completion. The as-builts will be provided in both 22"x34"hard copy and
electronic in AutoCAD format.
4.8.3 Surveyor Qualifications
The surveyor providing the certified redline as-built drawings shall be a Professional Land Surveyor
licensed in the State of Alaska.
Add the following:
4.9 Site Preservation, Restoration, Cleanup and Environmental Reporting
The Contractor shall be solely responsible for damage to public or private property caused by
construction operations. The Contractor shall take all precautions necessary to control dust and
suspended sediments. Contractor shall notify the City of any claims of damage, and shall clean and
restore any property so damaged at the sole expense of the Contractor. All spills or releases of any
oil or hazardous substance shall be reported to the appropriate governmental agency as well as
notice to the City. Contractors shall be responsible for all associated clean-up costs and fines.
At all times during the work, keep the premises clean and orderly. Upon completion of the work,
repair all damage caused by equipment and leave the Project free of rubbish or excess materials of
any kind.
ARTICLES BONDS, INSURANCE, AND INDEMNIFICATION
5.4.2.d Builder's Risk Insurance. Delete the last sentence:
'BugdeF�s Risk insuranc-e w4l only be appfic-able if so noted in the Supplemen",Conditions.
5.4.2.e Other Coverages.Add the following:
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R&M Consultants and the City of Seward shall be named as an"Additional Insured"and shall contain
a waiver of subrogation under all liability coverages listed in Section 5.4 Insurance Requirements of
the GENERAL CONDITIONS, and Contractor shall show proof of insurance.
ARTICLE 6 CONTRACTOR'S RESPONSIBILITIES
6.2 Superintendence by Contractor. Add the following:
The proposed Superintendent shall have documented experience on at least three similar projects
involving grading and asphalt paving. Similar projects shall consist of paving of a similar size and
scope to this project.The Contractor shall submit a resume,statement of qualifications and reference
names and telephone numbers for the proposed Superintendent for approval by the City's
Representative. Lack of suitable qualifying experience will be cause for rejection of the proposed
Superintendent.
6.6 Anticipated Schedules. Add the following:
6.6.3 The Contractor shall develop a Construction Progress Plan to coordinate and schedule construction
activities and submit this plan for review. It is the intent of the City of Seward that the work be
executed during the "off season"to comply with the operations of the existing facility.
6.6.4 A pre-construction conference may be scheduled following the Notice to Proceed. At that time the
Contractors anticipated work plan and schedule, material submittals, coordination with the Engineer
and City's Representative safety requirements and procedures, dispute resolution, changes and/or
modifications and other administrative and construction related items will be discussed.
6.14 Use of Premises. Add the following:
The City has made available,for the convenience of the Contractor,an area near the job site to be used as a
contractor staging area. The Contractor shall make his/her own arrangements for any additional areas and
facilities needed for storage of materials,supplies and equipment, parking and other activities.Snow removal,
security, and fencing for the provided staging area shall be the sole responsibility of the Contractor. The
Contractor shall hold the City harmless from all claims or complaints arising from the use of such areas. Public
streets in or outside this project will not be used for any storage activities (equipment and materials)and/or
exclusive vehicle parking without prior written approval from the City's Representative.
6.17 Safety and Protection. Add the following:
6.17.4 General: The Contractor is responsible for safety and protection requirements, including but not
limited to:
a. Temporary construction.
b. Temporary controls for environmental protection.
C. Safety and protection of the construction area.
Submittals: Prior to performance of any work, the Contractor is required to submit the following:
a. Temporary Construction:
1. Material and equipment staging area plan to show impact to site operations
during construction.
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2. Copies of survey notes taken to establish control points for structures affected by
the work, and layout of survey control points for new construction.
b. Temporary Control for Environmental Protection:
1. To the extent required by laws and regulations, the Contractor must procure a
Stormwater Pollution Prevention Plan (SWPPP)with the Alaska DEC prior to
start of construction.
2. Plan for disposal of waste materials, including permits from or agreements with
local solid waste disposal authority,and intended haul routes. Creosote treated
material is not accepted at the city landfill. The Contractor shall make other
arrangements for disposal at an ADEC approved disposal site.
3. Contractor must provide the necessary controls to meet the requirements of the
permit stipulations for work near or in-water.
c. Safety and Protection:
1. Copies of permits or approvals for construction activities from governing safety
authorities.
Execution:
a. Temporary Construction:
1. Access Roads and Parking:
Construct temporary construction access roads and detours as necessary to
execute the work and as approved by the City's Representative. Maintain in good
condition until no longer needed,then remove the temporary roads and leave the
area in a condition satisfactory to the City's Representative.
2. Storage Yards and Buildings:
Construct temporary storage yards for the storage of products that are not subject
to damage by weather conditions. Materials shall be stored in a manner to allow
ready access for inspection and inventory.
Erect or provide temporary storage shelters needed to protect mechanical and
electrical equipment and other materials, as recommended by manufacturers of
such equipment and materials.
Store combustible materials (paints, solvents, fuels, etc.) in a well-ventilated
building remote from other buildings and in accordance with current laws and
regulations.
3. Fencing and Barricades:
Security Fence: At the Contractor's option,erect a temporary security fence with
gates around the staging and material storage area(s).
Barricades: Provide barricades as necessary to prevent unauthorized entry to
construction areas, both inside and outside fenced area. Also provide barricades
to protect existing facilities and adjacent properties from potential damage.
Locate barriers to enable access by facility operators and property owners.
b. Safety and Protection:
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Contractor shall do whatever work is necessary for overall project safety and be solely and
completely responsible for conditions of thejob site, including safety of all persons(including
employees) and property during the contract period. This requirement shall apply
continuously and not be limited to normal working hours.
Safety provisions shall conform to Federal and State Departments of Labor Occupational
Safety and Health Act (OSHA), and other applicable federal, state, county, and local laws,
ordinances, codes, requirements set forth herein, and regulations that may be specified in
other parts of these Contract Documents. Where these are in conflict, the more stringent
requirement shall be followed. Contractor shall become thoroughly familiar with governing
safety provisions and shall comply with the obligations set forth therein. Contractor shall
strictly adhere to marine safety provisions.
Contractor shall develop and maintain for the duration of the Contract, a safety program that
will effectively incorporate and implement required safety provisions. Contractorshall appoint
a qualified employee who is authorized to supervise and enforce compliance with the safety
program.
The Engineer's duty to conduct construction review of the Contractor's performance does not
include a review or approval of the adequacy of Contractor's safety supervisor, safety
program, or safety measures taken in, on, or near the construction site.
As part of safety program, Contractor shall maintain at its office or other well-known place at
the job site, safety equipment applicable to the work as prescribed by the governing safety
authorities, and articles necessary for giving first aid to the injured. Establish procedures for
the immediate removal to a hospital or a doctor's care of persons who may be injured on the
job site.
Contractor shall do all work necessary to protect the general public from hazards, including,
but not limited to, surface irregularities, trenches or excavations in roadway. Barricades,
lanterns and proper signs shall be furnished in sufficient amount to safeguard the public and
the work.
Construct and maintain satisfactory and substantial temporary chain link fencing, solid
fencing, railing, barricades or steel plates, as applicable, at all openings, obstructions, or
other hazards. Such barriers shall have adequate warning lights as necessary or required for
safety.
Comply with City's safety rules while on City's property.
If death or serious injuries or damages are caused, the accident shall be reported
immediately by telephone or messenger to the City's Representative or Engineer. In addition,
Contractor shall promptly report in writing all accidents whatsoever arising out of, or in
connection with, the performance of the work whether on or adjacent to the site, giving full
details and statements of witnesses.
If claim is made by anyone against Contractor or any subcontractor on account of accident,
Contractor shall promptly report the facts in writing, giving full details of the claim.
Protection of Work and Property:
a. General
1. Contractor shall employ such means and methods necessary to adequately
protect public property and property of the City, and its existing tenants against
damage. In the event of damage to such property, immediately restore the
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property to a condition equal to its original condition and to the satisfaction of
the City's Representative and the owner of said property, and bear all costs
therefore.
2. Protect stored materials and other items located adjacent to the proposed
work. Notify property owners affected by the construction at least 48 hours in
advance of beginning of construction. During construction operations,
construct and maintain facilities to enable pedestrian access by all property
owners to their property at all times. No person shall be cut off from vehicular
access to residence or place of business for a period exceeding eight hours,
unless the Contractor has made special arrangements with the affected
persons.
b. Finished Construction
1. The Contractor shall assume the responsibility for protection of finished
construction and shall repair and restore any and all damage to finished work
to its original condition.
2. At such time temporary facilities and utilities are no longer required for the
work, notify City's Representative of intent and schedule for their removal.
Remove temporary facilities and utilities from the site as Contractor's property
and leave the site in such condition as specified, as shown on the Drawings or
as directed by the City's Representative.
3. In unfinished areas, leave the site evenly graded as necessary, in a condition
that will restore original drainage, and with an appearance equal to or better
than original.
ARTICLE 7 LAWS AND REGULATIONS
7.10 Air Quality Control. Add the following:
Minimize air pollution likely to occur from construction and/or quarrying and hauling operations by
wetting down bare soils during windy periods, requiring proper combustion emission control devices
on construction vehicles and equipment,and by shut down of motorized equipment not in use. Trash
burning will not be permitted on the construction site.
Add the following:
7.19 Environmental Controls.
7.19.1 General:
The Contractor in executing the work shall maintain affected areas within and outside project
boundaries free from environmental pollution that would be in violation of federal, state or local
regulations.
Do not impair operation of existing utility systems. Prevent construction material, pavement,concrete,
earth, volatile and corrosive wastes, and other debris from entering sewers or water mains.
7.19.2 Hazardous Waste Generation
Every effort to minimize or eliminate the generation of hazardous waste shall be used by the
Contractor in the performance of the work of this Contract. Unless there is no substitute, no
hazardous materials shall be used in the performance of the work of this Contract.The Contractor will
take all necessary precaution to avoid to release of petroleum based or other hazardous materials into
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the water and surrounding environment.The Contractor will be held responsible for any and all such
spills.
7.19.3 Water Pollution Control
Comply with laws, rules, and regulations of the State of Alaska and agencies of the United States
Government prohibiting the pollution of marine waters, lakes,wetlands,streams,or river waters from
the dumping of refuse, rubbish, or debris. Prior to commencing excavation and construction, obtain
the Engineer's agreement with detailed plans showing procedures intended to handle and dispose of
sewage, groundwater, and storm water flow, including dewatering pump discharges.
If required, a containment boom must be installed and maintained during construction. The boom
shall be adequate to prevent siltation of surface waters.
The containment boom must be adequate for containment of any possible oil spills from construction
activities.
7.19.4 Waste Material Disposal
Maintain areas covered by the Contract and affected public properties free from accumulations of
waste, debris, and rubbish caused by construction operations.
Cleaning and disposal shall comply with local ordinances and anti-pollution laws. Do not burn or bury
rubbish or waste materials on the project site. Do not dispose of volatile wastes such as mineral
spirits, oil, chemicals,or paint thinner in storm or sanitary drains. Disposal of wastes into streams or
waterways is prohibited. Provide acceptable containers for collection and disposal of waste materials,
debris, and rubbish.
ARTICLE 8 OTHER WORK
8.4 Coordination.Add the following:
8.4.1 Construction activities must be coordinated with the normal operation of the City of Seward, the
Harbormaster, lease holders, and landowners adjacent to the project. The Contractor's work
schedule, staging areas, construction, etc. shall accommodate the needs and schedule of these
entities. The Contractor shall coordinate staging, storage, and construction activities with the City of
Seward.
8.4.2 The City of Seward, Harbormaster, will require a minimum of 14 days notice for work at the Travelift
Runway which will affect/shutdown Travelift operations. More advance notice for multiple vessel or
vehicle relocations(i.e.,vacating large harbor or parking areas outside the project boundaries)shall
be made in writing by the contractor upon submission of the Anticipated Schedule in accordance with
Section 6.6 of the General Conditions. Earlier start dates without providing the notice will not be
permitted unless coordinated in advance and expressively approved in writing by the City's
Representative.
8.4.3 The Contractor shall provide a minimum 72-hour notice of any other construction operations which
may affect City of Seward operations. Coordination,scheduling and conflicts shall be directed to the
Harbormaster or his designee.
designated areas of ARTICLE 11 CONTRACT TIME; COMPUTATION AND CHANGE
11.8 Delay Damages.Add the following:
The City may withhold, out of any progress payment, the sum and assess Liquidated Damages of
One Thousand Five Hundred dollars ($ 1,500.00) for each and every calendar day that the Final
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Completion Date is delayed beyond the specified Contract Completion Date to cover the City's
ongoing administrative costs. Additional Liquidated Damages directly associated with any restricted
access or use of SMIC facilities including all docks,lifts, uplands,and staging areas will be charged to
the Contractor based on actual costs incurred plus 10% markup to cover City administrative time
associated with management of the shutdowns.
ARTICLE 12 QUALITY ASSURANCE
12.3 Tests and Inspections. Add the following:
12.3.5 A City representative will be assigned to observe the work. It is understood that such City
representative(s)shall have the authority to issue Notice of Non-conformance, and make decisions
within the limitations of the authority of the City. The Contractor shall furnish all reasonable
assistance required by the Engineer or City representative(s)for proper observation of the work. The
above-mentioned project representatives shall not relieve the Contractor of his obligations to conduct
comprehensive inspections of the work and to furnish materials and perform acceptable work,and to
provide adequate safety precautions, in conformance with the intent of the Contract.
ARTICLE 13 PAYMENTS TO CONTRACTOR AND COMPLETION
13.1 Schedule of Values. Add the following:
Schedule of Values for this project must include project name,project number,and contract number and must
reflect the header information listed in the table below.
Item Item Unit Unit Plan Previously This Invoice Total To Date
# Price Invoiced
Quantity $Amt Quantity $Amt Quantity $Amt Quantity $Amt
END OF SECTION
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SECTION 000900 -SPECIAL PROVISIONS
900.01 General Statement
The Special Provisions set forth conditions and requirements unique to this Project and are supplemental to,
and supersede, the City of Seward General Conditions of the Construction Contract as amended by the
Modifications to General Conditions. It shall be the responsibility of the Bidder to prepare his/her bid so all
materials and construction shall harmoniously conform to the intent of the Contract Documents.
900.02 Scope of Work
The scope of work under the Base Bid generally includes providing 45,930 SF of asphalt pavement and base
course at the North Dock and Barge Ramp and 29,430 SF of thickened asphalt pavement and base course at
the Travelift Runway. In addition,water valve boxes and storm drain manhole rims will be adjusted to finished
grade.
The scope of work under Additive Alternate A generally consists of installing an additional 23,860 SF of
thickened asphalt pavement and base course at the Travelift Runway.
900.03 Laborer's and Mechanics' Minimum Rates of Pay
Use the applicable State wage rates that are in effect 10 days before Bid Opening. State wage rates can be
obtained at the following website: http://www.labor.state.ak.us/iss/pamP600.htm
900.04 Time of Completion
The following work shall be completed in accordance with the Contract Documents:
• Substantial Completion: Substantial completion is defined as all Work completed except inspection
and associated repairs/corrections. All work on the project shall be substantially completed, tested,
and fully functional by June 1, 2019.
• Final Completion: Final project completion is defined as all Work completed. All work under this
contract including all closeout documentation must be completed no later than June 15, 2019. If any
additional repairs are required,the Contractor shall make these repairs immediately upon notification.
900.05 Coordination and Scheduling
The Contractor will closely coordinate all work with the City's Representative.The work will be scheduled and
performed in a manner that minimizes disruption to SMIC operations.
The Contractor shall sequence earthwork and asphalt pavement installation in a manner that minimizes limited
access/shutdown to the dock, moorage float, and Travelift haulout facilities at the SMIC.
The City's Representative shall be notified at least 2 weeks in advance of any anticipated disruptions of
service to SMIC dock and float facilities, and 4 weeks in advance of shutdown for the TraveLift haulout
facilities(as public notices are required). Any delays to the Contractor's work as a result of a lack of adequate
coordination will be at the Contractor's expense.
The City of Seward is responsible for notification of SMIC users as needed to accommodate demolition and
construction at the designated facilities and as otherwise necessary to complete the Work. If the Contractor
requires special storage or staging considerations or relocation of existing boats, he shall contact the City's
Representative 2 weeks in advance to make such request.
When requested by the City, and at no additional cost to the Contract, the Contractor's designated
Superintendent will be required to attend meetings of the Port and Harbor Advisory Board or City Council. The
purpose will be to inform the City and residents of the current status and scheduling of events on the project.
900.06 Permits
The Contractor will adhere to the provisions and stipulations set forth in all applicable permits. The following
permits shall be applied for by the Contractor as necessary prior to initiating construction activities:
1. Construction General Permit for Storm Water Discharges for Large and Small Construction
Activities (2016 CGP, AKR1000000)
2. City of Seward Dig Permit
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3. City of Seward Fire Hydrant Use Permit
900.07 Order of Award of Alternative Bids
The intent of award is to the lowest responsible and responsive bidder unless it rejects all bids.The low bidder
will be based on the following bid totals, subject to available funding, listed in the order of priority:
1. Base Bid + Additive Alternate A
2. Base Bid
If all bids for#1 above exceeds the stated budget, the award will be based on the low bid for#2 as funding
allows. Bidders are required to submit bids for the Base Bid items and all Additive Alternate items contained in
the Bid Schedule. The City will state the amount of available funding at the time of bid opening.
The City will notify the successful bidder in writing of its intent to award the Contract and request that
certain required documents, as listed in Section 000200—Required Documents be submitted within the
time specified. The successful bidder's refusal to sign the Contract and provide the requested documents
within the time specified may result in cancellation of the notice of intent to award and forfeiture of the bid
security.
900.08 Public Convenience and Access
The Contractor shall comply at all times with the provisions of this article while constructing this project.
Adjacent docks are to remain in public service.The Contractor shall take all precautions necessary and install
protective barriers and/or warning signs to ensure public safety and continued access to nearby docks and
beach areas.
END OF SECTION
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Sponsored by: Regis
CITY OF SEWARD,ALASKA
RESOLUTION 2019-046
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONTRACT WITH GovHR USA FOR AN AMOUNT NOT TO EXCEED
$45,000 TO REVIEW THE CITY OF SEWARD CLASSIFICATION AND
COMPENSATION PLAN, AND APPROPRIATING FUNDS
WHEREAS, Seward City Code §3.10 describes the City's Position Classification plan;
and
WHEREAS, SCC §3.10.020 states "the classification plan is an administrative tool that
provides a system of standardized titles and common job language and is critical to the effective
administration of personnel activities such as:
1. workforce planning and budgeting,
2. establishing job performance standards,
3. establishing fair and equitable pay,
4. developing training programs,
5. developing valid selection and recruitment programs,
6. establishing appropriate career lines."; and
WHEREAS, SCC §3.10.025 provides for the development and administration of the
classification plan by the City Manager; and
WHEREAS, SCC §3.10.025(2) provides that "the City Manager shall periodically
review the entire classification plan or any part thereof at his/her own initiative or at the
reasonable request of a department head or group of employees; provided, however, that such a
review shall be conducted at least every three years. The purpose of the review shall be:
1. to ascertain whether or not the plan accurately reflects existing conditions;
2. to determine the accuracy of class specifications;
3. to assure that positions are properly classified."; and
WHEREAS, the last major review of the classification and compensation plan by an
outside consultant was in 2001; and
WHEREAS, it is recommended that the City contract to have a professional consultant
review and update the City's Classification and Compensation Plan; and
WHEREAS, the City received two (2) competitive proposals in congruence with the
specifications outlined in the Request for Proposals (RFP); and
WHEREAS, a scoring team consisting of the Acting City Manager, Personnel Officer,
Seward Public Employees Association (SPEA) President, SPEA Vice President, and the Union
104
CITY OF SEWARD,ALASKA
RESOLUTION 2019-046
Local International Brotherhood of Electrical Workers (IBEW) Shop Steward, scored the
proposals based on the scoring criteria set forth in the RFP; and
WHEREAS, out of 100 points possible, GovHR USA received 85 points, and Trest
Benefit Solutions, LLC received 72 points; and
WHEREAS, GovHR USA, of Northbrook, IL, has done classification and compensation
plan studies for other municipalities, has done other consulting work for the City of Seward City
Manager Recruitment, and is qualified to conduct the City's review of its Classification and
Compensation Plan; and
WHEREAS, the General Fund will fund the majority of this contracted service based on
the number of employees that operate within the General Fund; and
WHEREAS, Enterprise Funds will fund their portion of the study based on the number
of employees within their department.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA that:
Section 1. The Seward City Council finds it is in the public's best interest to enter into a
professional services agreement with GovHR USA to conduct a classification and compensation
plan study.
Section 2. The City manager is hereby authorized to enter into a contract with GovHR
USA for an amount not to exceed $45,000 to review the City of Seward Classification and
Compensation Plan.
Section 3. Funding for this contract is as follows: $32,850 from the General Fund
reserves account no. 01000-0000-3400 to contracted services account no. 01000-1180-7009;
$4,950 from the Electric Department reserves account no. 15000-0000-3400 to contracted
services account no. 15000-3000-7009; $5,400 from the Harbor Department reserves account no.
11000-0000-3400 to contracted service account no. 11000-2000-7009; $900 from the Water
Department reserves account no. 17000-0000-3400 to the contracted services account no. 17000-
4000-7009; and, $900 from the Sewer Department reserves account no. 18000-0000-3400 to
contracted services account no. 18000-4500-7009.
Section 4. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
241h day of April, 2019.
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Agenda Statement
Meeting Date: April 24, 2019
'ro: City Council
From: Norm Regis, Acting City Manager
Agenda Item: Wage and Classification Study contract
BACKGROtTN'D & J U STI FI CATION:
On March 11, 2019 the City Council passed and approved Resolution 2019-027 authorizing the
City Manager to enter into a contract with the Seward Public Employee Association (SPEA) for
the Purpose of employee representation. Included in Resolution 2019-027 was a provision that the
City agreed to conduct a wage study of all City Employees and upon completion of the study,
contract negotiations will reopen.
Historically,the City has periodically reviewed the entire classification plan via professional firms.
The last such comprehensive analysis was completed by Woods and Associates for $30,000 in
2001, approved via Resolution 2001-013. Prior to 2001, the last major review by a professional
consultant was in 1984.
Under the direction of Interim City Manager Jeff Bridges, a request for proposals was issued on
February 22, 2019 with competitive bids due and opened on March 8, 2019. Of the two bids
received, GovlIR TJSA was successfully selected after review on April 1, 2019 by two members
of administration, two SPEA officers and one representative from the International Brotherhood
of Electrical Workers (fBEW).
For completion of the project, (3ov1IR USA has proposed a total cost of $45,000; $37,000 for
professional fees and $8,000 for expenses. The total project time is expected to take 15 weeks.
Govf-IR is a public management consulting firm serving municipal clients and other public sector
entities on a national basis. They are currently contracted with the City of Seward for the purpose
of conducting the ongoing City Manager recruitment process.
INTENT: To authorize the City Manager to enter into a contract with GovHR, tJSA to complete
a Classification and Compensation Study,
CONSISTENCY CIIECKLIST: Yes No N/A
I Comprehensive Plan(document source here) X
Strategic Plan (docurnent source here):
-ovide quality leadership and X
2 The mission of the City of Seward is to pi
economic Nvellbeing of its citizens
106
---- -
3 Other: Seward City Code 3.15 - Salary Administration X
FISCAL NOTE:
There are sufficient funds within the General Fund, Electric, Harbor, Water and the Sewer
Enterprise Fund reserve accounts to pay for this contract based on the number of employees
represented in each department.
Approved by Finance Department:
ATTORNEY REVIEW: Yes X No
RECOMMENDATION:
Approve Resolution 2019-046 authorizing the City Manager to enter into a contract with GovHR
USA for the purpose of completing a Classification and Compensation Study.
107
USA
CONTRACT
BETWEEN THE CITY OF SEWARD ALASKA AND C;OVHR USA LLC
FOR A COMPENSATION POSITION CLASSIFICATION AND LEAVE STUDY
The City of Seward, Alaska agrees to have CovHR USA, LL.0 conduct a Compensation, Position
Classification and Leave Study as outlined in the City's Request for Proposal (RFP) and CovHR'S Proposal
dated March 4, 2010. The terms of the RFP and GovHR's Proposal are Incorporated herein and shall
become a part of this contract.
Total Project Cost: $45,000 ($37,000 for professional fees and $5,000 for expenses).
Payment Terms: Professional fees will be Invoiced as follows: 40%of the professional fees ($14,800) will
be dine at the time the contract is signed; 40% ($14,800) will be due approximately 10 weeks after the
project begins, upon the delivery of the preliminary findings; and the remaining 20% ($7,400) plus
expenses will be billed after the Study is completed. Invoices will be sent to the City and are payable
within 30 days of receipt, after which a 2% monthly interest charge will accrue.
1. CONTRACT
1.1 Contractor shall comply with all laws and ordinances legally enacted at the date of
execution of the Agreement which govern proper performance of the Work.
1.2 SUBCONTRACTORS. Subcontractors will not be used without prior approval by the City.
1.3 COMMENCEMENT. The Work shall commence upon the date of receipt of a written
Notice to Proceed by the Contractor.
1.4 CONTRACT TERM, The term of this Agreement shall be until completed or otherwise
legally terminated. The expected cornpletion date is----. Time is of the essence in this
agreement.
1.5 CHANGE ORDERS. Changes in the Work which are within the general scope of this
Agreement will be accomplished by Change Order, signed by both City and Contractor and stating the
change and any adjustment in Task Order Price,Task Order Completion Date, and/or date of Substantial
Completion,
1.6 INDEMNITY. Contractor shall indemnify, defend, and hold harmless the City from and
against any claim of, or liability for, negligent acts, errors, and omissions of Contractor under this
Agreement. Contractor is not required to indemnify, defend, or hold harmless the City for a claim of, or
liability for, the independent negligent acts, errors, and omissions of the City. if there is a claim of, or
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liability for, a joint negligent act, error, or omission of Contractor and the City, the indemnification,
defense, and held harmless obligation of this provision shall be apportioned on a comparative fault
basis. In this provision, "'Contractor" and "City" include the employees, agents, and contractors who are
directly responsible, respectively, to each. In this provision, "independent negligent acts, errors, and
omissions" rneans negligence Other than in the City's selection, administration, monitoring, or
controlling of Contractor, or in approving or accepting Contractor's work.
1.7 CONTRACTOR'S INSURANCE
1.7.1 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 by Contractor which arise both out of and during the course of this Agreement. 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.
1.7.2 Contractor will maintain in force at all times during 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 1.6.
A. Comprehensive or Commercial General Liability Insurance: Contractor
will provide and maintain either Comprehensive or Commercial General Liability Insurance to cover all
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, and
personal injury liability, The minimum limits of liability will be:
(1) 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.
( ) If Contractor carries a Cormercial General Liability policy, the
limits of liability will not be less than $1,000,000 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 $1,000,000 general aggregate.
B3 Professional Liability Insurance: Contractor will provide and maintain
professional liability insurance for claims arising from negligent performance of professional services
under this Agreement and shall be written for not less than $2,000,000 per claim/$2,000,000 aggregate,
with such insurance maintained for a minimum of three years after the date of Task Order Completion.
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C. Workers` Compensation Insurance: Contractor will provide and
maintain, for all employees of Contractor engaged in work under this Agreement, Workers"
Compensation insurance as required by AS 23.30.045, to include Employer's Liability Protection in the
amount of$1,000,000 per person/$.1,000,000 per Occurrence.
D. Automobile Liability Insurance: Contractor will provide and maintain
for all owned, hired and non-owned vehicles coverage in limits not less than the following: $1,000,000
each occurrence (Combined Single Limit for bodily injury and property damage).
1.7.3 Certificates of Insurance acceptable to City will be filed with City. Certificates
for all 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.
A. Contractor's insurance will be endorsed to provide that the insurers
and underwriters on all policies waive their right of subrogation against City. Except for workers'
compensation coverage described at 1.7.2(C), City will be named additional insured on all policies.
1..8 SURVIVAL. Contractor's insurance and indernnity obligations hereunder will survive termination
of this Agreement,
1.9 WAIVER OF SUBROGATION
1.9.1 Contractor and City waive all rights against each other, and any of their
respective employees, agents, consultants, and Subcontractors, for damages caused by risks covered by
insurance provided in Paragraph 1.7.2 to the extent they are covered by that insurance, except such
rights as they may have to the proceeds of such insurance held by Contractor or City as trustees.
Contractor shall require similar waivers from any and all Contractors, and shall require each of them to
include similar waivers in their subcontracts and consulting agreements.
1.9.2 If the policies of insurance referred to in this Paragraph require an
endorsement to provide for continued coverage where there is a waiver of subrogation, the holder of
such policies will cause them to be so endorsed.
. OWNERSHIP OF DATA
Upon final payment or termination of this Agreement, Contractor and City own the property rights,
except for copyrights, of all documents, electronic data and information prepared, provided or procured
by Contractor or its Subcontractors and distributed to City for this Project and shall have the right to use,
reproduce and make derivative works of the data.
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3. DISPUTE RESOLUTION.
If a dispute arises out of or relates to this Agreement or its breach, the parties skull endeavor to settle
the dispute first through direct discussions. If the dispute cannot be settled through direct discussions,
any actions arising under this Agreement shall be instituted at the Superior Court for the State of Alaska
at Anchorage. This Agreement shall be governed by and construed in accordance with the laws of the
State of Alaska. No clairn, dispute, or controversy shall interfere with the progress and performance of
Work required under this Agreement, and Contractor shall proceed as directed by City in all instances
with its Work.
4. MISCELLANEOUS PROVISIONS
4.1 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 the procedure set
forth herein.
4.2. INTFRPRFTATiON. The rule of construction that terms of an agreement are construed
against the party that drafted the agreement shall not apply to this Agreement.
4.3 INDEPENDENT CONTRACTOR. Contractor acts as an independent contractor to City and
is not an agent, partner, or in a joint venture with the City in the performance of this Agreement.
Contractor shall exercise exclusive control for the paeans, methods, techniques, and procedures in
performance of the Work.
4.4 ASSIGNMENT. Neither City nor Contractor shall assign their interest in this Agreement
without the written consent of the other except as to the assignment of proceeds.
4.5 SEVERARILITY. The partial or complete invalidity of any one or more provisions of this
Agreement shall not affect the validity or continuing force and effect of any other provision.
4.6 COUNTERPARTS. This Agreement may be simultaneously executed in several
counterparts, each of which will be an original and all of which will constitute but one and the same
instrument.
4.7 TITLES. The titles given to the Articles and Paragraphs of this Agreement are for ease of
reference only, and shall not be relied upon or cited for any other purpose.
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USA
ACCEPTED:
THE CITY OF SEWARD, ALASKA
BY:
TITLE:
GATE:
GovHR USA, LLC
4
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Sponsored by: Regis
CITY OF SEWARD, ALASKA
RESOLUTION 2019-047
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
PROFESSIONAL SERVICES AGREEMENT WITH THYSSENKRUPP
ELEVATOR COMPANY TO PROVIDE ELEVATOR MAINTENANCE AND
REPAIR SERVICES FOR THREE CITY ELEVATORS
WHEREAS, the Alaska State Statutes and Regulations require the City to have an
established elevator maintenance and control program that is managed by qualified elevator
personnel as outline in the current A17.1 Safety Code for Elevators and Escalators, Sections 8.6 and
8.11; and
WHEREAS,the current contract with Otis Elevator Company expired March 15,2019;and
WHEREAS, in accordance with City Code Section 6.10.135 and 6.10.140, a Request for
Proposals (RFP)was issued March 6, 2019; and
WHEREAS, the proposals were evaluated by staff from the Public Works Department.
Thyssenkrupp Elevator was determined to be a qualified and responsive proposer for the amount of
$4,464.00 annually; and
WHEREAS,the three elevators are located in City Hall,Community Center,and the Seward
Library Museum.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to enter into a Professional Services
Agreement,in substantially the same form herein,with Thyssenkrupp Elevator Company for repairs
and maintenance of three city elevators for the amount not-to exceed $4,464.00 annually.
Section 2. Funding for this contract is included in each department's budget.
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 24t'
day of April, 2019.
113
Agenda Statement
Meeting Date: April 24, 2019 '
To: City Council
Through: Norm Regis, Acting City Manager
From: Doug Schoessler, Public Works Director
Agenda Item: Professional Service Agreement with Thyssenkrupp Elevator Company for
the Elevator Maintenance &Repair
BACKGROUND & JUSTIFICATION:
The City maintains elevators at three (3) locations (City Hall, the Community Center and the
Library/Museum) and is required by Section 8.6 and 8.11 of the current A17.1 Safety Code for
Elevators and Escalators, to have an established Maintenance and Control Program (MCP). The
service mandated under the MCP are to be conducted by qualified elevator personnel and at a
minimum must include: quarterly inspection; quarterly cleaning/maintenance; quarterly Fire
Emergency Service Phase 1 testing; a once-every-5-year Full Load test; annual Load and Pressure
Relief testing; an annual Efficiency and Maintenance Survey Inspection Report; and maintain the
maintenance and repair records for all services provided to maintain the MCP.
The current Elevator Maintenance and Repair agreement expires on March 15,2019.In accordance
with Seward City Codes 6.10.135 and 6.10.140,Public Works issued a Request for Proposals(RFP)
to enter into a professional service agreement for a three (3)year contract, with two (2) additional
one-year extension available. Funds are currently budgeted in the Contracted Services line items of
each building's budget.
INTENT: To enter into a professional services agreement with Thyssenkrupp Elevator Company
for the maintenance and repair of City's three (3) elevators.
CO SISTENCY CHECKLIST: F
No N/A
1. Comprehensive Plan (document source here): Pg. 8 1.3 "Public Safety"
I _
2. Strategic Plan (document source here): X
3. Other (list): X
FISCAL NOTE: Funding for this agreement is contained within the 2019 budget for each
department.
Approved by Finance Department: ........._, rl� f�c����... ............................ .
ATTORNEY REVIEW: Yes No Not Applicable X
RECOMMENDATION: Approve Resolution 2019-047 authorizing the City Manager to enter
into a professional services agreement with Thyssenkrupp Elevator Company to provide elevator
maintenance and repair for all three city elevators.
114
AGREEMENT FOR ELEVATOR MAINTENANCE AND REPAIRS
THIS AGREEMENT is made and entered into this 22 day of April 2019 ("Effective Date"), by and
between the CITY OF SEWARD, ALASKA a home rule municipal corporation(hereinafter called
Owner),and THYSSENKRUPP ELEVATOR COMPANY (hereinafter called Contractor).
OWNER and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth,
agree as follows:
1. WORK PROVIDED BY CONTRACTOR
1.1 Scope of Work',. Contractor shall provide the materials and work described in the
Owners Request for Proposal ("UP") attached hereto as Exhibit "A" and incorporated
herein by reference ("UP") and Contractor's Response dated March 28"' (the "Proposal"'),
attached hereto as Exhibit "B" and incorporated herein by reference.
1.2 Standards and Pragtigs. All work to be provided by Contractor pursuant to this
Agreement shall be provided by personnel experienced in their respective fields and in a
manner consistent with the standards of care, diligence and skill ordinarily exercised in
similar fields and circumstances in accordance with sound practices. Materials and
elevator parts will be suitable for their intended purpose. Contractor also warrants that it is
familiar with all laws that may affect its performance of this Agreement and shall advise
the Owner of any changes in any taws that may affect Contractor's performance of this
Agreement.
1.3 Warrant
y. Contractor warrants that it shall perform the services required by this
Agreement in compliance with all applicable Federal and Alaska employment laws
including, but not limited to, those laws related to minimum hours and wages;
occupational health and safety; fair employment and employment practices; workers'
compensation insurance and safety in employment and all other Federal, State and
local laws and ordinances applicable to the services required under this Agreement.
1.4 Non-discrimination In performing this Agreement, Contractor shall not
engage in, nor permit its agents to engage in. discrimination in employment of persons
because of their race, religion, color, national origin, ancestry, age, physical handicap,
medical condition, marital status, sexual gender or sexual orientation.
1.5 Non-Exclusive Agreement. Contractor acknowledges that Owner may enter into
agreements with other Contractors for services similar to the services that are subject to
this Agreement or may have its own employees perform services similar to those services
contemplated by this Agreement.
-Page 1 of 9-
1.6 Delegation and Assignment. Contractor was selected, in part, based on experience
in the work to be performed, and the duties set forth herein shall not be delegated or
assigned to any person or entity without the prior written consent of Owner. Contractor
may engage a subcontractor(s) as permitted by law and may employ other personnel to
perform work contemplated by this Agreement at Contractor's sole cost andexpense.
2. COMPENSATION ANDBILLIN+G
2.1 CoiD, nsatiog. Contractor shall be paid on a quarterly basis in accordance with
the methodology and fee schedule set forth inthe Proposal.
2.2 Additional Work. Contractor shall not receive compensation for any work outside
the scope of work specified in the Proposal unless the Owner, prior to Contractor
performing the additional work, approves such additional work in writing. It is
specifically understood that oral requests and/or approvals of such additional work or
additional compensation shall be barred and are unenforceable.
2.3 Method of Billing. Contractor shall submit invoices to Owners Contracting Officer
for approval on a quarterly basis. Invoices shall be based on the total of all Contractor's
work which has been completed to Owner's sole satisfaction. Owner shall pay Contractor's
invoice within thirty (30) days from the date Owner receives the invoice, for work
completed. Each invoice shall describe in detail the materials or parts purchased and the
services performed and the associated time for completion. Any additional work approved.
and performed pursuant to this Agreement shall be designated as "Additional Work" and
shall identify the number of the authorized change order,where applicable, on all invoices.
2.4 Records and Audits. Records of Contractor's work relating to this Agreement shall
be maintained in accordance with generally recognized accounting principles and shall be
made available to Owner or its Contracting Officer for inspection and/or audit at mutually
convenient times for a period of three (3) years from the Effective Date.
3. TIME OF PERFORMANCE
3.1 Commencement and Completion of Mork. The work to be performed pursuant to
this Agreement shall commence upon issuance of a Notice to Proceed by the Contracting
Officer. Work shall be performed in strict compliance with a schedule approved by Owner,
as may be amended by mutual agreement of the parties. Failure to commence work in a
timely manner and/or diligently pursue work to completion may be grounds for
termination of this Agreement.
-Page 2 of 9-
3.2 Project. Delay. Notwithstanding any other provision in the contract to the
contrary, neither party shall be liable for any loss, damage or delay due to any cause
beyond either party's reasonable control, including but not limited to acts of government,
labor disputes, strikes, lock outs, theft, weather, natural or man-made disaster, civil
commotion, mischief or act of God. Under no circumstances shall either party be liable
for special, indirect, liquidated or consequential damages of any kind including, but not
limited to, loss of goodwill, loss of business opportunity, additional financing costs or
loss of use of any equipment or property.
4. TERM AND TERMINATION
4.1 Term. This Agreement shall commence on the Effective Date and continue for a
period of three (3) years, ending on April 22, 2022, unless previously terminated as
provided herein or as otherwise agreed to in writing by the parties. The Owner, through
the City Manager, may, at the Owner's discretion, offer to extend this Agreement for up
to two additional one-year periods. If Owner makes such an offer, the Contractor will
have 30 days to accept or refuse the offer.
4.2 Notice of Termnjati, r7. This Agreement may be terminated: 1) if Contractor fails
to perform any of its material obligations hereunder and does not cure such failure within
thirty (30) days after receipt of written notice from the Owner specifying such failure; or
2) if the funding for this Agreement is not appropriated by the Owner, upon receipt of a
notice of termination. In the event of such termination, Contractor shall immediately stop
rendering services under this Agreement unless directed otherwise by the Owner.
4.3 Cerra n petisation. In the event of termination, Owner shall pay Contractor for
reasonable costs incurred and services satisfactorily performed up to and including the
date of termination. Compensation for work in progress shall be prorated as to the
percentage of work completed as of the effective date of termination in accordance with
the fees set forth herein.
4.4 DoCUJIIelltS. In the event of termination of this Agreement, all documents
prepared by Contractor in its performance of this Agreement including, but not limited
to, finished or unfinished design, development and construction documents, data studies,
drawings, maintenance records, maps and reports, shall be delivered to the Owner within
ten (10) days, at no cost to Owner. Any use of uncompleted documents without specific
written authorization from Contractor shall be at Owner's sole risk and without liability
or legal expense to Contractor.
-Page 3 of 19-
5. INSURANCE.
5.1 Minn-FILIM SCOLle and Limits of Insurance. Contractor shall obtain and maintain
during the life of this Agreement all of the following insurance coverages:
(a) Comprehensive general liability, including premises-operations,
products/completed operations, broad form property damage, blanket contractual
liability, independent contractors, personal injury with a policy limit of not less
than One Million Dollars ($1,000,000.00), combined single limits, per occurrence
and aggregate,
(b) Automobile liability for owned vehicles, hired, and non-owned vehicles,
with a policy limit of not less than One Million Dollars ($1,000,1000.00),
combined single limits,per occurrence and aggregate.
(c) Workers' compensation insurance as required by the State of Alaska.
5.2 Endorsements. The comprehensive general liability insurance policy shall
contain or be endorsed to contain the following provisions:
(a) Additional insureds: "The City of Seward and its elected and appointed
officers, agents,and employees are additional insureds with respect to this contract
with Owner."
(b) Notice- "Said policy shall not terminate, nor shall it be cancelled, nor the
coverage reduced, until thirty (30) days after written notice is given to Owner."
(c) Other insurance: "Any other insurance maintained by the City of Seward
shall be excess and not contributing with the insurance provided by this policy."
5.3 Certificates of Insurance: Contractor shall provide to Owner certificates of
insurance showing the insurance coverages and required endorsements described above,
in a form and content approved by Owner., prior to performing any work under this
Agreement.
5.4 Non-limiting: Nothing in this Section shall be construed as limiting in any way,
the indemnification provision contained in this Agreement, or the extent to which
Contractor may be held responsible for payments of damages to persons or property,
-Page 4 of V-
6. GENERAL PROVISIONS.
6.1 Entire Agreement: This Agreement constitutes the entire Agreement between the
parties with respect to any matter referenced herein and supersedes any and all other prior
writings and oral negotiations. This Agreement may be modified only in writing and
signed by the parties in interest at the time of such modification. The terms of this
Agreement shall prevail over any inconsistent provision in any other contract document
appurtenant hereto, including exhibits to this Agreement.
6.2 Rgpr�sentatjves. The Public Works Director, Doug Schoessler, or his designee,
shall be the representative of Owner for purposes of this Agreement and may issue all
consents, approvals, directives and agreements on behalf of the Owner, called for by this
Agreement, except as otherwise expressly provided in this Agreement.
Contractor shall designate a representative for purposes of this Agreement who shall be
authorized to issue all consents, approvals, directives and agreements on behalf of
Contractor called for by this Agreement, except as otherwise expressly provided in this
Agreement.
6.3 Notices: Any notices, documents, correspondence or other communications
concerning this Agreement, or the work hereunder may be provided by personal delivery,
facsimile or mail and shall be addressed as set forth below. Such communication shall be
deemed served or delivered: a) at the time of delivery if such communication is sent by
personal delivery; b) at the time of transmission if such communication is sent by
facsimile ; and c) 48 hours after deposit in the U.S. Mail as reflected by the official U.S.
postmark if such communication is sent through regular United Statesmail.
IF TO CONTRACTOR: IF TO Owner:
Thyssenkrupp Elevator City of Seward, Alaska
2000 W. International Airport Rd. P.O. Box 167
Anchorage, AK 99501 Seward, Alaska 99664
Phone: 907.224.4058
Phone: 907.522.3002 Fax: 907.224.5051
ATTN: Clay Hotchkiss ATTN: Doug Schoessler
6.4 Attoruevs' Fees: In the event that litigation is brought by any party in connection
with this Agreement, the prevailing party shall be entitled to recover from the opposing
party all costs and expenses, including reasonable attorneys" fees, incurred by the
prevailing party in the exercise of any of its rights or remedies hereunder or the
enforcement of any of the terms, conditions, or provisions hereof,
-Page 5 of 9-
6.5 Governit7 Law: This Agreement shall be governed by and construed under the
laws of the State of Alaska. In the event of any legal action to enforce or interpret this
Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of
competent jurisdiction located in Anchorage,Alaska.
6.6 Assignment: Contractor shall not voluntarily or by operation of law assign.
transfer, sublet or encumber all or any part of Contractor's interest in this Agreement
without Owner's prior written consent. Any attempted assignment, transfer, subletting
or encumbrance shall be void and shall constitute a breach of this Agreement and cause
for termination of this Agreement. Regardless of Owner's consent, no subletting or
assignment shall release Contractor of Contractor's obligation to perform all other
obligations to be performed by Contractor hereunder for the term of this Agreement.
6.7 Indemnification: The Contractor shall indemnify, defend and hold the City of
Seward harmless:
(a) From and against any claim or demand for loss,liability or damage,including claims
for property damage, personal injury or wrongful death, arising out of contractor's
operations unless the result of the sole negligence of the Owner, or by any fire or
other destructive force on the Premises or growing out of or caused by any failure
on the part of the Contractor to maintain the Premises in a safe condition.;and
(b) From and against all actions, suits, damages, and claims by whomsoever brought or
made by reason of the non-observance or non-performance of any of the terms,
covenants and conditions in the Contract or the rules, regulations ordinances and laws
of the United States or the State of Alaska.
6.8 lndenendent Contractor: Contractor is and shall be acting at all times as an
independent contractor and not as an employee or agent ofOwner.
6.9 Ownership of Documents All findings, reports. documents, informaion and data
including, but not limited to, computer tapes or discs, files and tapes furnished or prepared
by Contractor or any of its subcontractors in the course of performance of this Agreement,
shall be and remain the sole property of Owner.Contractor agrees that any such documents
or information shall not be made available to any individual or organization without the
prior consent of Owner. Any use of such documents for other projects not contemplated by
this Agreement, and any use of incomplete documents, shall be at the sole risk of Owner
and without liability or legal exposure to Contractor. Contractor shall deliver to Owner any
findings, reports documents information data, in any form, including but not limited to,
computer tapes, discs, files audio tapes or any other Project related items as requested by
Owner or its authoized representative at no additional cost to theOwner.
-Page 6 ofPa-
6.10 Public Records Act Disclosure: Contractor has been advised and is aware that all
reports, documents, information and data including, but not limited to, computer tapes,
discs or files furnished or prepared by Contractor, or any of its subcontractors and provided
to Owner may be subject to public disclosure as required by the Alaska Public Records
Act.
6.11 ReSDonsibilitv for Errors. Contractor shall be responsible for its work and results
under this Agreement. Contractor, when requested, shall furnish clarification and/or
explanation as may be required by the Contracting Officer, regarding any services rendered
under this Agreement and may be required to supplement or correct prior work at no
additional cost to Owner.
6.12 Prohibited Employment: Contractor will not employ any regular employee of the
Owner while this Agreement is ineffect.
6.13 Order of Precedence In the event of an inconsistency in this Agreement and any
of the attached Exhibits, the terms set forth in this Agreement shall prevail. If and to the
extent this Agreement incorporates by reference any provision of the RFP or the Proposal,
such provision shall be deemed a part of this Agreement. Nevertheless, if there is any
conflict among the terms and conditions of this Agreement and those of any such
provision or provisions so incorporated by reference, this Agreement shall govern over
both the Proposal and the RFP and the Proposal shall govern over the RFP.
�6.14 Costs: Each party shall bear its own costs and fees incurred in the preparation and
negotiation of this Agreement and in the performance of its obligations hereunder except
as expressly provided herein.
6.15 No Third-Partv Beneficiary Rights: This Agreement is entered into for the sole
benefit of Owner and Contractor and no other parties are intended to be direct or
incidental beneficiaries of this Agreement and no third party shall have any right in, under
or to this Agreement.
6.16 [Jead ings Paragraphs and subparagraph headings contained in this Agreement
are included solely for convenience and are not intended to modify,explain or to be a full
or accurate description of the content thereof and shall not in any way affect the meaning
or interpretation of this Agreement.
6.17 Construction: The parties have participated jointly in the negotiation and drafting of
this Agreement. In the event an ambiguity or question of intent or interpretation arises
with respect to this Agreement, this Agreement shall be construed as if drafted jointly by
the parties and in accordance with its fair meaning. There shall be no presumption or
burden of proof favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Agreement.
-Page 7 of2J-
6.18 AmQiAxtict ts: This Agreement may only be amended by mutual agreement of the
parties, and in writing, including Contract prices and schedule adjustment, prior to the
commencement of work covered by changes or modifications If any such changes cause
an increase or decrease in the Contractor's cost of, or the time required for, the
performance of this Agreement, an equitable adjustment shall be made, and the Contract
modified in writing accordingly. If the Owner and Contractor fail to agree upon this
adjustment to be made, the Owner reserves the right to solicit bids from other vendors for
the performance of the additional work.
6.19 Waiver: The delay or failure of either party at any time to require performance
or compliance by the other of any of its obligations or agreements shall in no way be
deemed a waiver of those rights to require such performance or compliance. No waiver
of any provision of this Agreement shall be effective unless in writing and signed by a
duly authorized representative of the party against whom enforcement of a waiver is
sought. The waiver of any right or remedy in respect to any occurrence or event shall
not be deemed a waiver of any right or remedy in respect to any other occurrence or
event, nor shall any waiver constitute a continuing waiver.
6.20 everabilit: If any provision of this Agreement is determined by a court of
competent jurisdiction to be unenforceable in any circumstance, such determination shall
not affect the validity or enforceability of the remaining terms and provisions hereof or of
the offending provision in any other circumstance
6.21 I`"ot.tntet vats: This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original. All counterparts shall be construed together
and shall constitute one agreement.
6.22 Corporate Authority:, The persons executing this Agreement on behalf of the
parties hereto warrant that they are duly authorized to execute this Agreement on
behalf of said parties and that by doing so the parties hereto are formally bound to the
provisions of this Agreement.
-Page 8 ofl23-
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their respective authorized officers, as of the date first above written.
CITY OF SEWARD CONTRACTOR
Ajssea krkplo
Date: Date: 4-16-2019
Clay Hotchkiss
ATTEST:
BRENDA BALLOU, IV MC CITY CLERK
aUthoriz'160r� is, corairigilt LIP011 the iIICIUSi011 of"Aiimi(Irrielit 10
which was provided with the bid on 3.21.2019.
-Page 9 of 23-
City of Seward
Elevator Maintenance&Repair ServicesRPP Amendment Nnl
This Amendment No.I shall be made a part ofMhis bid and any subsequent Agreement issued pursuant to an award thereof,and in the event of conflict with
other a rticles,terms,cond itionis or contract documents,this Amendment No.I shall be f inaL Any clarifications presented by Thyssenkrupp Elevator Corporation
(hereinafter Contractor)at the time of bid shall by this reference be incorporated herein and made a part hereof and shall govern in the event of conflict with
'other documents.
In no event shall Contractor be liable underthis Agreement for indirect,special, liquidated, incidental, exemplary or consequential damages, orfor loss of use,
loss of income, loss uf opportunity,ur other similar remote damages,
2.1 Indemnification Amend so Contractor's obligations to indemnify,defend and hold harmless shall be limited to Contractor's own acts and actions, and shall
in no way include for the acts,actions, omissions, or neglects of a party indemnified hereunder, or for bare allegations.
2.5 Insurance Requirements:Amend so the required parties shall be added to Contractor's general liability insurance policy as an additional insured, subject
to the limitations as hereafter set forth,Such additional insured coverage shall only apply to the extent any damages covered by the policy are determined to
be caused by Contractor's acts, actioms, omissions or neglects, and shall not apply to, the extent caused by the additional inouried'm own acts, actions,
omissions,mr neglects, or for bare allegations.
124
Page Iof8
Bronze service Agreement
Special_Considerations
Annual price adjustment shall be capped at 4%.
Markup on material and expences for repairs and service calls: 15%
Building Maintenance/Testing Service Calls RT Travel OT Onsite OT Travel Rate
Seward City Hall $124/month $219/hr $199/hr $219/hr $299/hr
Seward Senior $124/month $219/hr $199/hr $219/hr $299/hr
Seward Library $124/month $219/hr $199/hr $219/hr $299/hr
***A 3% discount will be provided to the monthly rates listed above if payment is made annually in advance.
"Maintenance/Testing"shall be defined as all maintenance and annual testing that is required by the code in effect
at the time the contract is executed, as well as all requirements in the City of Seward RFQ.
"Emergency" service calls that are responded to during the hours of 7:30 am and 4:30 pm (Monday through Friday
except for holidays)will be billed at the Regular Time rates. When a mechanic is traveling or working on-site outside
of these hours, the OT rates will apply.
IevaLoir IVfaInLeinance Agirr.r.nienL
1 11/11 'ogr. 1()of 11
2f}19..363413..AC;IA 1JI::,,72I:\N
125
hysse rik,l° l°)gip
City of Seward RFP
Bronze Service Agreement
Special Con6deratlons �` �
Annual price adjustment shall be capped at 4%,,
Markup on material and expends for repair and service Dells: 1 %
Building aintenance[Teeting Service Calls r'T Travel CST Onaite CDT Travel mate
Seward City Mall $124/month $219/hr $199/hr $219/hr $2991hr
Seward Senior $124/month $219/hr $199/hr $219/hr $299/hr
Seward Library $124/month $219/hr $199/hr $219/hr $299/hr
"Maintenance/Testing"shall be defined as all maintenance and annual testing that is required by the code in effect at
the time the contract is executed, as well as all requirements in the City of Seward rFQ.
"Emergency" service calls that are responded to during the hours of 7:30 am and 4.30 pm (Monday through Friday
except for holidays)will be bulled at the regular Time rates. When a mechanic is traveling or working on-site outside
of these hours, the OT rates will apply,
126
FEES AND COSTS - PART TWO
CITY OF SEWARD ELEVATOR MAINTENANCE RFP
OTIS ELEVATOR COMPANY
I. City of Seward scope of work
For regular services- $685. per month (Six Hundred Eighty-Five and 00/100
Dollars), payable annually
2. Billing rates, including travel time and expense for necessary repairs and/or
callouts: $300.00 per hour per mechanic during regular business hours and
$500.00 per hour per mechanic during non-regular business hours.
3. Emergency call out hourly rate during regular business hours- $300.00 per hour
per mechanic plus expenses
4. Emergency call out hourly rate during non-regular business hours: $500.00 per
hour per mechanic plus travel expenses
127
Sponsored by: Regis
CITY OF SEWARD, ALASKA
RESOLUTION 2019-048
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,SUPPORTING THE APPLICATION OF THE ALASKA FEDERAL
LANDS ACCESS PROGRAM (FLAP) GRANT FOR IMPROVEMENTS TO
LOWELL POINT ROAD
WHEREAS, Lowell Point Road is the sole access road to the Community of Lowell Point
and the State of Alaska recreation area; and
WHEREAS, Lowell Point Road also accesses the Kenai Fjords National Park; and
WHEREAS, the City of Seward has critical infrastructure under the road, including the
sewer line that connects to the City's treatment facility; and
WHEREAS, Lowell Point Road is susceptible to tidal storms, flood waters, landslides,
rockslides and avalanches; and
WHEREAS, the traffic volume on Lowell Point Road is significant, and the safety of
Seward's residents and visitors is of grave concern; and
WHEREAS, the City of Seward maintains Lowell Point Road and its employees are often
asked to perform work on the road during dangerous circumstances; and
WHEREAS, the City of Seward, Kenai Peninsula Borough, and the State of Alaska have
identified the need to maintain, protect, and improve this critical access road; and
WHEREAS,there is an opportunity through the U.S.Department of Transportation,Federal
Lands Access Program(FLAP), to seek grant funding to aid in design and engineering efforts; and
WHEREAS, the FLAP grant program is projected to receive $7 million annually, can
allocate $2.5 million for each project and, if granted, would require a 9.03% local match; and
WHEREAS, the deadline for application submittals is April 30, 2019.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City of Seward Alaska supports the application of the Federal Land Access
Program Grant for improvements to Lowell Point Road
Section 2. This resolution shall take effect immediately.
128
CITY OF SEWARD,ALASKA
RESOLUTION 2019-048
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24tn
day of April, 2019.
THE CITY OF SEWARD, ALASKA
David Squires, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Brenda Ballou, MMC
City Clerk
(City Seal)
129
Agenda Statement
Meeting Date: April 24, 2019
To: Seward City Council
From: Norm Regis, Acting City Manager
Agenda Item: Support for FLAP Grant Application
BACKGROUND & JUSTIFICATION:
Lowell Point Road is the sole access road to the community of Lowell Point, the State of Alaska
Recreation Area and is also used to access the Kenai Fjords National Park. The City of Seward
also has critical inftastructure in the road including a sewer line that connects the City of Seward
to the sewer treatment facility.
The road is susceptible to tidal storms, landslides, rock slides and avalanches putting the safety of
travelers in danger, our staff in danger and puts the road's traversable condition in jeopardy,
The Alaska Federal Lands Access Program (FLAP) has grant funding available in support of a
variety of access projects. The City of Seward in partnership with the Lowell Point Community
Council, is seeking funding for design and engineering set vicesin order to address the safety
concerns and travel conditions of Lowell Point Road. The program is expected to receive $7
million in funding and can grant LIP to$2.5 ri-tillion per project. If awarded,the Seward City Council
would need to accept the grant as well as appropriate the required 9.03% local match, This
Resolution is in support of the application in the hopes that, the City will receive the funds and
move forward in completing the design and engineering so as to have a shovel ready project for
future funding opportunities.
INTENT: Support the application of Federal Lands Access Program grant
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan (documeni source here):
1.3.3 Translaorlation Facilities
1. 2.2.9 Public Sq1Zty X
2.2.12.3 - Road construction
...........
Strategic Plan (docinnent source here):
Page 4 - Tr ansl)orlation Facilities
2. Page I I PIan and Prepare fi)r Natural Disasters X
Page 16 Provide sqfij and efficient vehicular transportation
creeds cr1 the c r rrtrnuntl
_y .. ..........
3. Other (fist):
FISCAL NOTE: There are no financial impacts associated with this support Resolution.
Approved by Finance:
130
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: Approve Resolution 2019- 048 supporting the application for the
Federal Land Access Program grant.
131