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HomeMy WebLinkAboutRes2022-024 Sturgeon Contract for Electric Sponsored by: Bower CITY OF SEWARD,ALASKA RESOLUTION 2022-024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH STURGEON ELECTRIC COMPANY IN AN AMOUNT NOT EXCEED $2,997,093.46 TO COMPLETE CRITICAL ELECTRIC TRANSMISSION INFRASTRUCTURE WORK ALONG NASH ROAD AND A HALF MILE SECTION DIECKGRAEFF ROAD TO FORT RAYMOND SUBSTATION AND APPROPRIATING FUNDS WHEREAS, Seward's Electric Department and its engineering contractor, Dryden & LaRue, conducted a detailed"Invitation to Bid"to identify potential contractors; and WHEREAS, Sturgeon Electric provided the lowest bid at and the most comprehensive plan for completing the work; and WHEREAS, the electric transmission infrastructure along Nash Road is beyond its service life,in poor condition and could fail at any time; and WHEREAS, the Nash Road circuit also should be upgraded from its existing 69kV capacity to 115kV to serve future growth in the area; and WHEREAS, the last half-mile section of the transmission infrastructure from Dieckgraeff Road into the Fort Raymond Substation on Sea Lion Drive also will be upgraded from 69kV to 115kV to ensure a more robust transmission system and to serve future growth in and around the City; and WHEREAS,these system upgrades,along with other infrastructure projects planned over the next three to four years to improve the City's substations, will ensure reliable service for Seward-area electric customers for the next 35 to 40 years. 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 contract with Sturgeon Electric Company for$2,997,093.46 to complete critical electric transmission infrastructure work along Nash Road and a half mile section from Dieckgraeff Road into the Fort Raymond Substation. Section 2. Funding will be appropriated from the Electric Project revenue and expense line items as scheduled by the electric bond scheduled for issuance by the end of May 2022. Section 3. This resolution shall take effect immediately upon adoption. CITY OF SEWARD, ALASKA RESOLUTION 2022-024 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14`1' day of February, 2022. T IT OF E KA is erry ayor AYES: Wells, Osenga, DeMoss, McClure, Calhoon, Terry NOES: None ABSENT: Casagranda ABSTAIN: None ATTEST: Brenda J. Ballou, C City Clerk (City Sea;)y QFSE•,,��♦ • SEAL go" City Council Agenda Statement r Meeting Date: February 14, 2022 � To: City Council Through: Janette Bower, City Manager -- From: Rob Montgomery, General Manager - Electric Agenda Item: Resolution 2022-024: Authorizing the City Manager to Enter into a Contract with Sturgeon Electric Company in an Amount not Exceed $2,997,093.46 to Complete Critical Electric Transmission Infrastructure Work Along Nash Road and a Half Mile Section Dieckgraeff Road to Fort Raymond Substation and Appropriating Funds Background and justification: The Electric Department and the engineering contractor, Dryden & LaRue, conducted a detailed "Invitation to Bid"to identify potential contracts. Sturgeon Electric provided the lowest bid at and the most comprehensive plan for completing the work. Most of the electric transmission infrastructure along Nash Road is beyond its service life and is in poor condition. The infrastructure needing to be replaced includes power poles, conductors/lines, support assemblies, pole-top assemblies, insulators, and other related hardware. In its current condition, a significant transmission failure along Nash Road could occur at any time, resulting in potentially long and costly power outages. As part of this transmission infrastructure rebuild, plans call for the system to be upgraded from the existing 69kV voltage capacity to 115kV.This additional capacity will ensure that future growth in the area and the resulting increase in the demand for electricity can adequately be served. In addition to the work on Nash Road,the contractor will upgrade from 69kV to 115kV the last half- mile section of the electric transmission infrastructure feeding into Seward's Fort Raymond Substation. This section begins near Dieckgraeff Road and concludes at the Fort Raymond Power Plant on Sea Lion Drive. With the completion of this work, the entire length of this part of Seward's transmission system, which runs from Milepost 25 near Moose Pass, will be constructed to meet 115kV capacity. The additional capacity will result in a more robust transmission system overall and one that can successfully meet future growth. The work outlined above is expected to get underway in 2022, with completion in the first half of 2023. The projects are the first part of a larger effort to replace aging infrastructure and upgrade the overall voltage capacity of Seward's entire transmission system. The second part of the project, expected to begin in 2023, will focus on the City's substations, where aging equipment will also be replaced—including substation transformers—and voltage capacities increased. The completion of the overall project will help ensure service reliability in and around the City for the next 35 to 40 years. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive 3.7.1.4 "Continue to upgrade and expand utilities to meet existing needs and Plan: encourage future development." Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 2,997,093.46 This legislation (✓): Creates revenue in the amount of: $ X Creates expenditure in amount of: $ 2,997,093.46 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): X Not budgeted Revenue Bond funding project line items Not applicable Finance Signature: Attorney Review✓ Administration Recommendation RYes X Adopt Resolution X Not applicable Other: CONSTRUCTION AGREEMENT THIS AGREEMENT is made this 15th day of Feb_ruary, 2022 by and between the Owner: City of Seward, 410 Adams Street, Seward, AK 99664 and the Contractor: Sturgeon Electric Company, 1301 E..64t' Ave. Anchorage Alaska.99518. The Project is: Nash Road Electric Transmission Rebuild. The Owner and Contractor agree as set forth below. ARTICLE 1 THE CONTRACT DOCUMENTS 1.1 The Contract consist of this the Contract Documents. These form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract Documents, except for Modifications issued after execution of this Agreement, are enumerated as follows: 1.1.1 The Construction Agreement is this executed Construction Agreement between Owner and Contractor, which shall take precedence over the Supplemental Conditions and General Conditions in the event of any conflict among the Contract Documents; 1.1.2 The Supplemental General Conditions, which shall take precedence over the General Conditions in the event of any conflict among the Contract Documents; 1.1.4 The General Conditions; 1.1.6 The Technical Specifications included in the Project ITB; 1.1.6 Performance and Payment Bonds, substantially in the form contained in the Project ITB; 1.1.7 Davis-Bacon Minimum Rates of Pay, hitp://labor.state.ak.us/Iss/pamp6OO.htm; and 1.1.8 The addenda, if any, are as follows: 1.2 The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations or agreements, either written or oral. ARTICLE 2 THE WORK OF THIS CONTRACT The Contractor shall fully execute the entire Work described in the Contract Documents, or reasonably inferable by the Contractor as necessary to produce the results intended by the Contract Documents, except to the extent specifically indicated in the Contract Documents to be the responsibility of others. Th Contractor has reviewed all pertinent project requirements and criteria and shall include all materials, labor, equipment, oversight and all other cost items needed to safely and efficiently execute the work. The Contract is for a complete project. ARTICLE 3 DATE OF COMMENCEMENT AND COMPLETION Construction Agreement Mash Road Electric Transmission Rebuild AG-1 February, 2022 3.1 The date of commencement of the Work is the date from which the Contract Time of Paragraph 3.2 is measured, and shall be the date of this Agreement, as first written above, unless a different date is stated below or provision is made for the date to be fixed in a notice to proceed issued by the Owner. 3.2 The Contractor shall diligently prosecute the Work and achieve Substantial Completion of the entire Work not later than December 31, 2022 for all work subject to adjustments of this Contract Time as provided in the Contract Documents. Final Completion shall be achieved by March 31, 2023. 3.3 Time is of the essence for all obligations of the Contractor contained in the Contract Documents. ARTICLE 4 CONTRACT SUM The Owner shall pay the Contractor in current funds for the Contractor's performance of the Contract the Contract Sum of Two million nine-hundred and nine -seven thousand nine - three dollars and forty.-six cents Dollars ($2,997,093.46), subject to additions and deductions as provided in the Contract Documents. ARTICLE 5 PROGRESS PAYMENTS 5.1 Based upon Applications for Payment, including all supporting documentation, submitted to the Owner and the OR by the Contractor and Certificates for Payment issued by the OR, the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided below and elsewhere in the Contract Documents. 6.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as follows: 5.1.3 Owner shall make payment to the Contractor pursuant to an application for payment that complies with the Contract within thirty calendar days of the date that the Owner receives the OR's certificate for payment and Federal Aviation Administration's written consent to the payment. Notwithstanding the foregoing, if Owner is going to use State grant or Federal money to make the payment, the Owner shall have the longer of twenty-one calendar days from the date that the Owner receives the OR's certificate for payment or twenty-one calendar days from the date the Owner actually receives the State grant or Federal money with which to make the payment. If part or all of a payment is going to be withheld for unsatisfactory performance, or if the Contractor's application for payment does not comply with the requirements of the Contract, Owner shall within ten working days after receipt of the application for payment notify the Contractor in writing. This notice shall state specifically why part or all of the payment is being withheld and what remedial actions may be taken by the Contractor to receive the full payment. The withheld portion of the payment shall then be paid within twenty-one calendar days after the Contractor satisfactorily completes the remedial actions identified in that notice. Notwithstanding the foregoing, if Owner is using State grant or Federal money for the Contract, Owner shall have the longer of twenty-one calendar days after the Contractor satisfactorily Construction Agreement Nash Road Electric Transmission Rebuild AG-2 February,2022 completes the remedial actions identified in the notice or twenty-one calendar days after the Owner actually receives the State grant or Federal money with which to make payment. 5.1.4 Each Application for Payment shall be based upon the schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall allocate the entire Contract Sum among the various portions of the Work and be prepared in such form and supported by such data to substantiate its accuracy as the OR may require. This schedule, unless objected to by the OR, shall be used as a basis for reviewing the Contractor's Applications for Payment. 5.1.5 Applications for Payment shall indicate the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment. 5.1.6 Subject to the provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: 1. Take that portion of the Contract Sum properly allocable to completed Work as determined by multiplying the percentage completion of each portion of the Work by the share of the total Contract Sum allocated to that portion of the Work in the schedule of values, less retainage of 10%. Pending final determination of cost to the Owner of changes in the Work, amounts not in dispute may be included as provided in Article 7.3.7 of the General Conditions even though the Contract Sum has not yet been adjusted by Change Order; 2. Add that portion of the Contract Sum properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the completed construction (or, if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing), less retainage of ten percent (10%); 3. Subtract the aggregate of previous payments made by the Owner; and 4. Subtract amounts, if any, for which the OR has withheld or nullified a Certificate for Payment as provided in Paragraph 9.5 of the General Conditions. 5.1.7 The progress payment amount determined in accordance with Paragraph 5.1.6 shall be further modified under the following circumstances: 1. Add, upon Substantial Completion of the Work, a sum sufficient to increase the total payments to 95 percent (95%) of the Contract Sum, less such amounts as the OR shall determine for incomplete Work and unsettled claims; and 2. Add, if final completion of the Work is thereafter materially delayed through no fault of the Contractor, any additional amounts payable in accordance with Subparagraph 9.10.3 of the General Conditions. 5.1.5 Owner shall have the option, but not the obligation, to reduce the retainage requirements of this Agreement or release any portion of retainage prior to the date specified in the Contract Documents. Any such reduction or release of retainage or portion thereof, however, shall not be a waiver of any of the Owner's rights to retainage in connection with other payments to the Contractor, or any other right or remedy that the Owner has under the Contract Documents_ Interest shall be paid on retainage 1) at the rate of 1% per annum or 2) if and to Construction Agreement Nash Road Electric Transmission Rebuild AG-3 February, 2022 the extent required by applicable law or grant agreements. Otherwise, interest shall not be paid on retainage. 5.1.9 Except with the Owner's prior approval, the Contractor shall not make advance payments to suppliers for materials or equipment which have not been delivered and stored at the site. 5.2 FINAL PAYMENT 5.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, small be made by the Owner to the Contractor when (1) the Contract has been fully performed by the Contractor except for the Contractor's responsibility to correct nonconforming Work as provided in Subparagraph 12.2.2 of the General Conditions and to satisfy other requirements, if any, which necessarily survive final payment; (2) a final Certificate for Payment has been issued by the OR, and (3) Owner has received verification from the State of Alaska Department of Labor and Workforce Development ("the Department") that: (i) Contractor has complied with AS 36.05.045(a) and (b); (H) the Department is not conducting an investigation and (iii) the Department has not issued a notice of a violation of AS36.05 to Contractor or any subcontractor working on the Project. 5.2.2 The Owners final payment to the Contractor shall be made not more than 30 days after the receipt of verification from the Department; or, if State grant or Federal money will be used to make the payment, within 21 calendar days of the date that the City receives the payment request or the State grant or Federal money, whichever is later. ARTICLE 6 TERMINATION OR SUSPENSION 6.1 The Contract may be terminated by the Owner or the Contractor as provided in Article 14 of the General Conditions. 6.2 The Work may be suspended by the Owner as provided in Article 14 of the General Conditions. ARTICLE 7 MISCELLANEOUS PROVISIONS 7.1 Where reference is made in this Agreement to a provision of the General Conditions or another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents. 7.2 Payments due and unpaid under the Contract shall bear interest from the date payment is due at 1.5% per annum. 7.3 Laydown. Owner will provide a sufficient outdoor laydown area in reasonable proximity to the worksites for poles, wire and other large materials and equipment as well as warehouse space for items needing to remain secure. The laydown area and warehouse space will be available beginning April 1, 2022 and run 30 days after the date of Substantial Completion, Owner is also assessing potential shorter-term laydown areas along the project route so that materials are readily available near the actual work sites. Construction Agreement [dash Road Electric Transmission Rebuild AG-4 February,2022 7.4 Work by Owner. Owner shall be responsible for providing those services specified to by provide by Owner in the Technical Specifications. 7.5 Liquidated Damages, Time is of the essence for completion of the Work. The Work under this Contract is one phase of a multi-phase electrical distribution upgrade project. Delay in completion of the Work may cause Owner's electrical utility additional operating expense and costs associated with delay in further phases of the multi-phase project. Actual damages would be difficult to ascertain. Accordingly, the parties agree that liquidated damages in an amount equal to $2,500 per day for each day Substantial Completion is delayed beyond the contracted date for Substantial completion is a reasonable forecast of damages likely to occur as a result of said breach. Owner shall be entitled to payment of liquidated damages without having to prove or quantify loss or damage suffered as a result of Contractor's failure to meet the t5 obligations to which such liquidated damages relate. PEP, ARTICLE 8 �-+.�y2(��Aht SPECIAL PROVISIONS 8.1 Promect Start-Up. A Notice to Proceed shall be issued by the Owner. 8.2 Pre-Construction Conference. Prior to the start of the work, a conference which shall be attended by the Contractor and the Owner's Representative shall be arranged. The purpose of the conference shall be to discuss any items that may require clarification. Also, the procedure for distribution of all documents and correspondence related to the Contract shall be established at the conference. The pre-construction conference shall be held at a mutually agreed-upon location. At this conference, the Owner shall designate the OR and may delegate duties to the OR, and the Contractor shall abide by the Owner's delegation in performing the Contractor's duties and responsibilities under the Contract Documents. The Owner may waive the pre-construction conference, in which case designation of the OR shall be made in writing to Contractor. No statement, informal agreement or understanding nor any events occurring at the Pre-Construction Conference shall be deemed an amendment or modification of the contract terms, plans and specifications, or Contractor's obligations unless specifically incorporated in a written change order to the Contract. The extent of such change or limitation shall be limited to that expressly and specifically contained in the change order. 8.3 Engineer. Owner may designate the Owner's Representative as the Engineer, as used in the Contract Documents provide that the Owner's Representative is qualified for the duties of the Engineer. OWNER CONTRACTOR City of Seward Janette Bower (Signature) City Manager ? (Printed Name and Title) 1 fi r t V r �c i Construction Agreement Nash Road Electric Transmission Rebuild AG-5 February, 2022