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HomeMy WebLinkAboutRes2017-022CITY OF SEWARD, ALASKA Sponsored by: Hunt RESOLUTION 2017-022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH FRONTIER DIRECTIONAL DRILLING SPECIALISTS, INC. TO PROVIDE DIRECTIONAL BORING SERVICES TO RELOCATE TWO PRIMARY ELECTRIC SUPPLY CIRCUITS FROM POLES MOUNTED ALONG THIRD AVENUE, ADJACENT TO THE LAGOON, AND TWO ADDITIONAL LOCATIONS IN OLD MILL SUBDIVISION AND SEWARD MARINE INDUSTRIAL CENTER (SMIC), PLUS 10% FOR CONTINGENCIES, FOR AN AMOUNT NOT TO EXCEED $399,375.20 AND APPROPRIATING FUNDS WHEREAS, the power pole line crossing the Lagoon has reached the end of its useful life and is in imminent danger of failure; and WHEREAS, these poles carry all of the electric power lines which feed the City south of Dairy Hill Road; and WHEREAS, it has been determined to be impractical to trench along Third Avenue; and WHEREAS, two critical locations, one in Old Mill Subdivision and one at SMIC require boring under streams; and WHEREAS, following a formal bid process, in accordance with SCC 6.10.210, Frontier Directional Boring Inc. was found to be the low bidder with a combined total bid of $363,069.20; and WHEREAS, it is prudent, due to the unknown nature of the boring substrate, to allow for a contingency in the amount of $36,306 (or 10%), in case of unexpected field conditions. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to enter into an agreement with Frontier Directional Drilling Specialists, Inc to provide directional boring services support to relocate two primary electric supply circuits from poles mounted along Third Avenue, adjacent to the Lagoon, and two additional locations in Old Mill Subdivision and SMIC, in substantial form as presented at this meeting. 1 CITY OF SEWARD, ALASKA RESOLUTION 2017-022 Section 2. Funding in an amount not to exceed $399,375.20 is hereby appropriated from the Electric Major Repair and Replacement Fund undesignated net assets account no. 15001-0000-3400, to infrastructure account no. 15001-0000-8101. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10t' day of April, 2017. THE CITY OF SEWARD, ALASKA an Bardarson, Mayor AYES: Casagranda, Keil, Squires, McClure, Alterman, Bardarson NOES: None ABSENT: Slater ABSTAIN: None ATTEST: JityJhan"naKin'-ff6y, MC Clerk (City Seal) aPO e SEAL Y; "mod T F�-�`,�•� •��:.1�-.i.si�S Agenda Statement Meeting Date: March 13, 2017 To: City Council Through: Jim Hunt, City Manag From: John Foutz, Electric Utility Manager Agenda Item: Authorizing the City Manager to enter into an agreement with Frontier Directional Drilling Specialists, Inc to provide directional boring services BACKGROUND & JUSTIFICATION: The power pole line which crosses the Lagoon, on Third Avenue, carries two primary circuits, designated Town 1 and Town 2. These two circuits provide all of the power for the City south of Dairy Hill Road. The poles on which they are borne were installed some time prior to 1979 and these poles have reached the end of their useful life and are in immediate danger of failure. Several options were examined to put those lines underground and the least cost appears to be directional boring. In addition, there are two locations, one in Old Mill Subdivision and one at SMIC, where, due to the need to cross anadromous waters, it is more practical to bore under than to dig across. On July 25, 2016, the Electric Department published an Invitation to Bid on the proposed boring contract. Six companies requested plans, three companies turned in a bid. The bids were publically opened on August 19, 2016. The low bidder, was Frontier Direction Drilling Specialists, Inc. Their bid was $339, 669 for the Lagoon Bore, $11,142.40 for the SMIC bore and $12,252.80 for the Old Mill bore. Their total bid was $363,064.20. Given the nature of the work, it is impossible to be sure of the conditions of the substrate under the Lagoon. As a result, it is prudent to allow for a contingency in the amount of $36,306.00 (or 10%), in case of unexpected field conditions bringing a total funding requirement of $399,375.20 INTENT: To authorize directional boring services to relocate two primary electric supply circuits from poles mounted along Third Avenue, adjacent to the Lagoon, and two additional locations in Old Mill Subdivision and SMIC. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Flan (1.3, 3.7. 3.1, 3.7.3. 2): Continue to upgrade and 1. expand utilities to meet existing needs and encourage future X development. 2 Strategic Plan : The mission of the City of Seward government it is to provide quality leadership and economic wellbeing of its citizens X 3. Other (list): X FISCAL NOTE: Funding in an amount not to exceed $399,375.20 is hereby appropriated from the Electric Major Repair and Replacement fund undesignated net assets account no. I 5001-0000-3400, to infrastructure account no. 15001-0000-8101. Approved by Finance Department: ATTORNEY REVIEW: Yes X No Not Applicable RECOMMENDATION: That the City Council approve an agreement with Frontier Directional Drilling Specialists, Inc. to provide directional boring services, and appropriate funds.. The Project consists of three different bores at three different locations. One is located in the Old Mill Subdivision. One is located at the Seward Marine Industrial Center (SMIC) and the third is located on Third Avenue at the Seward Lagoon, In the first two cases, the substrate is assumed to be sand, gravel and fractured shale (customary Seward substrate), In the third, the Substrate is assumed to be bottom silt. Note: the Seward Lagoon Bore includes three (3) 4" conduits. Each bore is described on the appropriate drawing, attached hereto. Please review, the drawings, and address any questions to: City ofSevyard Electric Department Attention: Verrion Wiflet, Field Engineer PO Box 167 Seward Alaska, 99664-0167 Phone: 907-224-4071 E"mail to: vwi I let (&cii,,y(� t'seward net . . ...... . .... dl z z U mg"4 Z N 9::4 0 04 z w = 9=4 z 21 8EGfNNlWG OF 00R�,�' L*;'s OFFSET FAAA--�- EDGE OF Umpry SEMENT , 47 PROJECT IS TO BORE ACROSS SEWAIM LAGOON FROM A NEW VAUIA' ON THE NORTH SIDE OF DAIRY HILL LANE TO A, TERMINUS AT A TRENCH ON rHE NORTH END OT THE ALLEY' ADJACENT "M VAN BUREN ST'REE,r AND BETWEEN SECOND ���; AND THIRD AVENUES, A DISTANCE OF APROX 2200 FEET' THROUGH UNDETERMINED SUBSTRATE, PRESI)MED MAW TO B E Borrom sn.11r. �fd -4 3� Ok.V 10 g KVA �j OKI WANTM Of THREE (3) MARINA 4' conwars Rumln THE EVVRE UNGTH OF '"IF, BORE, Y", WSW 1, END OF BORE -y P14 CQ I z CQ 11,14 C3 CIO 0-4 cr m IN I 8 (�' fl" jt I IT: —4 cri F-1 Z14 cf� C) Opel, 0 w W E- u 04 wo a4 44 Dr, I Boring Contract Bid Evaluation Criteria Bidder #1 Bidder #2 Bidder #3 Bidder #4 Bidder #5 Bidder#6 Bid on Bid Form? Addenda Acknowledged? y y Lumip Sum? Item pricing? Statement of Qualifications? Business License? Borough Tax Comp. Cert? Work Plan? Non -Collusion Affaclavit? Bidder Responsive (Y/N) Price I9L K i it 0 Apparent Low Bid K # Z 44 ;q K 4VA K CA . ..... ...... ... fIN NAME: 1�:ov14ler ADDRESS: *c, 4,o &)( 14aA Copver CeA4t,�r, A-K 9q515 In compliance with your Invitation for Bid dated ria and labor reouired to com ]�Eth The Undersigned hereby agrees to execute the said contract as directed or such further time as may be allowed in writing by the Contracting Officer after receiving notification of the acceptance of this bid, and it is, hereby mutually understood and agreed that in case the Undersigned does not, the said Contracting Officer may proceed to award the contract to others. The Undersigned acknowledges receipt of the following addenda to the Bid Documents (give: number and date of each), ADDENDA / DATE ISSUED The Undersigned has read the foregoing bid and hereby agrees to the conditions stated therein by affixing his signature below: Sidding Company 50vl��V- plr'ec4i . wed Dri 111.VZ A 4'zl�s-k 14c, Signature: YK Title: CONTRACTOR'SLac ENSENor MBEK 3S;Ld4 EXPIRES: I BUSINESS ADDRESS: He 6po Rom O-A. 6mx-y- Gm4cy 0 THEPHONE: 111f5T.3 City of Seward Seward, Alaska NAME: '41" J "Re, , , I- " G'. ADDRESS: In compliance with your Invitation for Bid dated the Undersigned proposes to furnish all equipment, material and labor required to complete the above project, withina'10 days of awarding the contract and issuance of Notice To Proceed. The Undersigned hereby agrees to execute the said contract as directed or such further time as may be allowed in writing by the Contracting Officer after receiving notification of the acceptance of this bid, and it is hereby mutually understood and agreed that in case the Undersigned does not, the said Contracting Officer may proceed to award the contract to others, The Undersigned acknowledges receipt of the following addenda to the Bid Documents (give number and date of each). ADDENDA / DATE ISSUED ,V The Undersigned has read the foregoing bid and hereby agrees to the conditions stated therein by affixing his signature below: Bidding Company le- K- .c P _ Bid Price (Lagoon): o I 1 00 C5 Bid Price (Unnamed Rill): 4 111, Ooc Bid Price (Lost Creek): eq 0 Bid Price (Total): C, �C>& rs Signature-, CONTRACTOR'S LICEN�31/NUM134: i i ), "dt BUSINESS ADDRESS: (Octej Title: d'C J EXPIRFI'S: t —) TELEPHONE: "'102- I [at-111TI-Mll City of Seward Seward, Alaska NAME: Alaska Directional, LLC ADDRESS: PO Box 871130 Wasilla, AK 99687 In compliance with your Invitation for Bid dated July 25, 2016 —, the Undersigned proposes to furnish all equipment, material and labor required to complete the above project, within 30 days of awarding the contract and issuance of Notice To Proceed, The Undersigned hereby agrees to execute the said contract as directed or such further time as may be allowed in writing by the Contracting Officer after receiving notification of the acceptance of this bid, and it is hereby mutually understood and agreed that in case the Undersigned does not, the said Contracting Officer may proceed to award the contract to others. The Undersigned acknowledges receipt of the following addenda to the Bid Documents (give number and date of each). ADDENDA / DATE ISSUED Memorandum Reporting Pre -Bid Meeting 8/10/2016 Question response email 8117/2016 Q&A email 8/11/2016 Question response email 8/16/2016 The Undersigned has read the foregoing bid and hereby agrees to the conditions stated therein by affixing his signature below: Bidding Company Alaska birectional, LLC Bid Price (Lagoon): $204.00/foot x 2200 feet = $448,800.00 (four hundred forty eight thousand eight hundred dollars) Bid Price (Unnamed Rill): $90.00/foot x 160 feet = $14,400,00 (fourteen thousand four hundred dollars) Bid Price (Lost Creek): $90.00/foot x 270 feet= $24,300.00 (twenty four thousand three hundred dollars) Bid Price (Total): $487,500.00 (four hundred eighty-seven thousand five hundred dollars) Signature: 1%, I J CONTRACTOR'S LICENSE NUMBER: CONS38474 Title: Manager EXPIRES: 12/31/2016 BUSINESS ADDRESS: 1600 S. Tanya Ct. Palmer, AK 99645 TELEPHONE:- (907) 357-9015 =1 CITY OF SEWARD, ALASKA THE ("CITY") Post Office, Box 167 Seward, Alaska 99664 Phone: 907.224.3445 Fax: 907.224.8633 FRONTIER DIRECTIONAL DRILLING SPECIALISTS, INC ("Contractor") H'C 60 Post Office Box 142A Copper Center, AK 99573 Phone: 907.259.5282 Email: deherrington@frontierhdd,.com The City and The Contractor agree as follows: AGREEMENT 1. DEFINITIONS, In addition to the terms defined above, capitalized terms used in this Agreement will have (unless otherwise provided in this Agreement) the following meanings: 11.1 "Agreement" means this Agreement, including all amendments, modifications, and supplements hereto and any appendices, exhibits, or schedules to same, and refers to this Agreement as it may be in effect at the time such reference becomes operative. Together the documents form an Agreement which represents the entire and integrated agreement between the parties hereto, and supersedes prior negotiations or agreements, either written or oral. This, Agreement is entered into solely for the purpose of the Project, 1.2 "Conitract Documents" means and consists of (i) thi's Agreement signed by City and Contractor; (ii) Attachment 1 (Alaska Department of Labor and Workforce Development Pamphlet 600), which is incorporated herein as though fully set forth herein; (iii) all exhibits to this Agreement; and (iv) all change orders, for changes in the Work issued after the execution of this Agreement, 1.3 "City's Representative" means the John Foutz, Utility Manager; City Manager, or the City Manager's designee. 1.4 "Work" means all labor, materiials, equipment and services provided by Contractor to fulfill Contractor's obligations. Construction Agreement 8?age I of 11 15 February 2017 50748611 002\010592150 0- 9 �14 01 The Contractor shall furnish all materials, labor and equipment necessary for the boring and installation, of operational conduit as further described in, the Invitation to Bid, and the specifications pertaining thereto. Reprinted in Appendix A. 3.1 The Date of Commencement wiill be the date of receipt of written Notice to Proceed by the Contractor. 12 Contractor must complete the Scope of Work wi:thiin thirty (30) days of receiving the Notice to Proceed. 3.3 Time is of the essence in this Agreement, 3A If Contractor fails to complete the work within the time specified in this Contract, or any extension thereof, Contractor will pay to City as liquidated damages One Hundred Dollars ($100) per day for each day of delay. To the extent Contractor's delay or nonperformance is excused under another clause in this, contract, liquidated damages will! not be due City. Contractor remains liable for damages caused by circumstances other than delay. 3.5 If Contractor is delayed at any time in the progress of the Work by changes ordered in the Work, or by labor disputes, fire, unusual delay in deliveries, unavoidable casualties or other causes beyond Contractor's control, the Contract Time will be extended by Change Order to the extent that: (1) the delay will prevent Contractor from achieving Substantial Completion within the Contract Time, and (2), the performance of the Work is not delayed by any other cause for which Contractor is not entitled to an extension in the Contract Time under the Contract Documents, Adjustments to the Contract Time will be permitted for a delay only to the extent such delay (1) is not caused, or could not have been anticipated, by Contractor, (2) could not be limited or avoided by Contractor"s timely notice to City of the delay, and (3) is of a duration not less than one day. 3.6 Final inspection and acceptance by City's Representative will not be made until all Work under this Agreement is completed. 4.11 CONTRACT SUM; PAYMENT. For and in consideration of Contractor's performance of the Work, Contractor will receive Three hundred, sixty-three thousand, and sixty-four dollars and 20 cents, ($363,064.20). The Contract Sum, including authorized adjustments, is the total amount payable by City to Contractor for performance of the Work under the Contract Documents, City's payment obligation will be subject to: 4.1.1 A reduction by any amount owed by Contractor to City at the time payment of the Contract Sum is due; or Construction Agreement Page 2 of 11 15 February 2017 507486\1002\00592150 41.2 Additions and/or deletions by Change Order. 4.2 CONITRACTOR'S INVOICES. Each bore in this contract may be invoiced upon comiplletion, in any case Contractor will submit a single final invoice withiin thirty (30) days of the completion of Work. 43 REVIEW OF CONTRACTOR'S INVOICES. City's Representative will, within fifteen (1:S) days after receipt of any Contractor's invoice, approve payment for such amount as City's Representative determines lis properly due, and notify Contractor in, writing of the reasons for any withholding of payment iin whole or in part. 4.4 RETAINAGE, City will withhold ten percent (10%,) retainage from each payment to Contractor. Upon substantial completion of the Work, the City will release to Contractor all retained amounts relating to the Work, less an amount equal to the reasonable value of any remaining or incomplete items of Work. No interest shall accrue on retainiagie withheld by City. 4.5.1 Contractor will promptly pay each person who supplies labor or materials to Contractor upon receipt of payment from City, out of the amount paid to Contractor. 4.5.2 City will have no responsibility for the payment of money to a person, or entity who supplies labor or materials to Contractor. 4.5.3 A payment, or partial or entire use or occupancy of the Work by City, will not constitute acceptance of any Work not in accordance with the requirements of the Contract Documents. 4.5.4 If City is entitled to reimbursement or payment from Contractor under the Contract Documents, Contractor will make the payment promptly upon demand Iby City. Notwithstanding anything in the Contract Documents to the contrary, if Contractor fails promptly to make any payment due City, or City incurs costs and expenses to cure any default of Contractor or to correct defective Work, City will have an absolute right to offset the amount against the Contract Sum and may, in City's sole discretion, either (1) deduct an amount equal to the amount which is due City from any payment then or thereafter due Contractor from City, or (2) issue a written notice to Contractor reducing the Contract Sum by an amount equal to the amount which is due City. 4.6 FINAL COMPLETION AND FINAL PAYMENT. Upon receipt of a final Application for Payment, City's Representative will determine whether the final work is acceptable to, City. City may withhold from the final payment to Contractor any amount that City determines is necessary to render the Work acceptable to City under the Contract Documents, Construction Agreement Page 3of 11 15 February 2017 507486\1 0MG0592150 5. ADMINISTRATION OF THE AGREEMENT 5.1 City's Representative will provide administration of thiis Agreement according to Contract Documents, City's Representative will have authority to act on behalf of City only to the extent provided in the Contract Documents. City may designate a new City's Representative from time to time by written notice to, Contractor. 5.,2 CITY'S RIGHT TO STOP WORK., If Contractor fails to correct Work which, is not in accordance with, the Contract Documents, City may direct Contractor in writing to stop the Work until the correction is made. 5.3 EXTENT OF CITY RIGHTS. 5.3.1 The rights stated in this Section 5 and elsewhere in the Contract Documents are cumulative and not in limitation of any rights of City (1) granted in the Contract Documents, (2') at law, or (3) in equity. 5.3.2 In no event will City have control over, charge of, or any responsibility for, means, methods, techniques, sequences or procedures, or for safety precautions and programs in connection with the, Work, notwithstanding any of the rights and authority granted City in the Contract Documents. 6.1 EXECUTION OF THE AGREEMENT. Execution of the Agreement by Contractor is a representation that Contractor has become familiar with local conditions under which the Work is to be performed and has correlated personal observations with the requirements of the Contract Documents. City will not be requiired to make any adjiustmenit in either the Contract Sum or Contract Time in connection with any failure by the Contractor to comply with the requirements of this Paragraph 6.2.1 Contractor will supervise and direct the Work, uising Contractor's best skill and attention. Contractor will be solely responsible for and have control over means, methods, techniques, sequences and procedures, and for coordinating alll portions of the Work, 6.2.2 Contractor will be responsible to City for acts and omissions of (1), Contractor's agents and employees, and (2) other persons or entities performing work under a contract with the Contractor. Contractor will promptly remedy damage and loss to property caused in whole or in part by Contractor, or by anyone for whose acts Contractor imay be liable. 6.3.1 Unless otherwise provided in the Contract Documents, Contractor will provide and pay for all labor, materials, equipment, tools,, utilities, transportation and other Construction Agreenient 1P'age 4 of 11 15 February 2017 5107486\1 002100592150 facilities, and services necessary for proper execution and completion of the Work. All materials furnished by Contractor shall be new and suitable for the intended purpose, 6.3.2 Contractor will enforce strict discipline and good order among Contractor's employees and other persons carrying out this Agreement. Contractor will not permit employment of unfit persons or persons not skilled in, tasks assigned to them. 6A TAXES. Contractor will pay all federal, state, and local taxes incurred by Contractor and will require the payment of such taxes incurred by any Subcontractor or any other persons in the performance of the Work. 6.,5 PERMITS, FEES AND NOTICES 6.5.1 Contractor will obtain and pay for all) permits, governmental fees, licenses and inspections necessary for proper execution and completion of the Work. 6.5.2 Contractor will comply with and give notices required by agencies having jurisdiction over the Work. If Contractor performs Work knowing it to be contrary to laws, statutes,, ordinances and rules and regulations without notice to City, Contractor will assume full responsibility for such Work and will bear the attributable costs. Contractor will promptly notify City in writing of any known inconsistencies in, the Contract Documents with such laws,, rules and regulations. 6.5.3 Contractor will comply with all federal and state environmental statutes, rules and regulations applicable to the Work, 6.6 COMPLIANCE WITH LAWS. Contractor will perform the Work in compliance with all applicable laws, statutes, ordinances, rules and regulations. 6.7 ALASKA PREVAILING WAGE REQUREMENTS. Thee contractor shall at all times comply with Allaska's Prevailing Wage Act, AS 36.015,0105 et seq., the requirements of which are set forth in Attachment 1 (Alaska Department of Labor and Workforce Development Pamphlet 600)1, 6.8 SAFETY PRECAUTIONS AND PROGRAMS. Contractor will be responsible for initiating, maintaiining and supervising all safety precautions and programs with respect to hazardous conditions that may arise in connection with the performance of the Work, 6,9 INSPECTION, City will have the right to reject defective workmanship or require its correction. Rejected workmanship will be satisfactorily corrected, If Contractor fails to proceed at once with the correction of defective workmanishiip, City may, by contract or otherwise, terminate the right of Contractor to proceed, as provided by this Contract, 6.10 CORRECTION OF WORK. Contractor will promptly correct Work rejected by City's Representative as, 'failing to conform to the requirements of the Contract Documents. Contractor will bear the cost of correcting such rejected Work. Construction Agreement Page 5 of 11 15 February 7017 6.11 USE OF SITES, Contractor will confine operations to areas permitted by law, ordinances, permits, the Contract Documents, and by the City. 6.12 CLEANING UP. Contractor will keep the Work and the surrounding area free from accumulation of debris and trash related to the Work. 7. CHANG,E,S IN THE WORK 7.1 In the event that Contractor encounters a condition giving rise to a change, in the Work, Contractor shall immediately notify City in writing of such condition. No allowance for an extension of time or additional compensation shalll be claimed by Contractor unless Contractor shall Ihave timely notified City of the condition:, and made written request for such allowance within three (3), days after such condition was encountered. 7,2 Changes, in the Work may be accomplished only by Change Order. City, without invalidating the Contract, may order changes in the Work within the general scope of the Contract consistingi of additions, deletions or other revisions, with the Contract Sum and Contract Time being adjusted accordingly. A change in the Contract Sum or the Contract Time will be accomplished only by Change Order. Accordingly, no course of condluct or dealings between the parties, nor express or implied acceptance of alterations or additions to the Work, nor claim that the City has been unjustly enriched by any alteration or addition to the Work, will be the basis of any claim to an increase in any amounts due under the Contract Documents or a change in any time period provided for in the Contract Documents. 73 A Change Order will be a written order to Contractor signed by City's Representative to change the Work, Contract Sum or Contract Time. Agreement on any Change Order will constitute a final settlement of all matters relating to the change in, the Work which is the suibject of the Change Order, including without limitation all direct and indirect costs associated with the change and any and all adjustments to the Contact Sum and the construction schedule. In the event a Change Order increases the Contract Sum, Contractor will include the Work covered by such Change Orders in Contractor's invoices as if such Work were originally part of the Contract Documents. 7A Delays beyond the control of Contractor shall include, but not be limited to, acts or negllect by Owner, acts or neglect of utility owners or other contractors performing other work, fires, floods, epidemics, abnormally severe weather conditions, or acts of Giod. 8.1 Except as otherwise provided in: this Agreement, any claim or dispute concerning questions of fact which, may arise under this Agreement will be presented in writing by Contractor to City's Representative. 8.2 In presenting a claim, Contractor will clearly and specifically state: (1) the Agreement provision under which the claim is made; (2) the Project item: on which the claim is Construction Agreement Page 6 of 11 15 February 2017 507486\1 002\005,92150 based; and (3) the specific relief requested, including any additional time Contractor believes it is entitled to. 8.3 If the amount of additional time cannot be readily ascertained at the time the claim is submitted, such amounts will be submitted as soon as they are discernible. In any case, the detailed claim, including all necessary supporting data,, will be submitted to City's Representative no later than thirty (30) days after completing the Project item of Work on which the claim is based, 9. RIGHTS AND REMEDIES 9,1 EVENTS OF DEFAULT. The occurrence of any one or more of the following events (regardless of the reason therefore) will constitute an "Event of Default" hereunder- 9.1.1 Contractor fails to fully comply with any proviision of thlis, Agreement,, including, but not limited to, failure to prosecute the Work. 9.1.2 A case or proceeding has been commenced against Contractor in a court having competent jurisdiction seeking a decree or order in respect of Contractor (1 ) under Chapter 7, 11, or 13 of Title 11 of the United States Code, as now constituted or hereafter amendled, or any other applicable federal, state, foreign bankruptcy or other similar law, (2) appointing a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar official) of Contractor or of any substantial part of Contractor's properties, or (3) ordering the winding-uip or liquidation of the affairs of Contractor, and in each instance such case or proceeding will remain undismissed or unstayed for sixty (60) consecutive days or such court will enter a decree or order granting the relief sought in such case or proceedings. 9.1.3 Contractor, (1) files a petition seeking relief under Chapter 7, 11, or 13 of Title 11 of the United States Code, as now constituted or hereafter amended, or any other applicable federal, state, foreign bankruptcy or other similar law, (2) consents to the institution of proceedings thereunder or to the filing, of any such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar official), of Contractor or any substantial part of Contractor's properties, or (3) takes any corporate action in furtherance of any such action. 9.2 REMEDIES., When any of the above occurs, City may without prejudice to any other, rights or remedies of, terminate employment of the Contractor and may: 9.2.1 take possession of the site and of all materials thereon owned by Contractor; and 9.2.2 finish the Work Iby whatever reasonable method City may deem expedient, Constmetion Agreement Page 7 of 11 15 February 2017 50748611 00260059,2150 9.3.1 When City terminates this Agreement for one of the reasons stated in Paragraph 9.1, Contractor will not be entitled to receive further payment until the Work is finished. 9.3.2 If the unpaid balance of the Contract Sum exceeds costs of finishing the Work, such excess will be paid to Contractor. If such costs exceed the unpaid balance, Contractor will pay the difference to City. This, obligation for payment will survive termination of this Agreement. 9.4 NO WAIVER BY CITY City's failure, at any time or times, to require strict performance by Contractor of any provision of this Agreement will not waive, affect or diminish any right of City thereafter to demand strict compliance therewith and performance thereof. Any suspension or waiver by City of an Event of Default by Contractor under this Agreement will not suspend, waive or affect any other Event of Default by Contractor under this Agreement whether the same is prior or subsequent thereto and whether of the same or of a different type. None of the undertakings, agreements, covenants, representations and warranties of Contractor contained in this Agreement and no Event of Default by Contractor under this Agreement will be deemed to have been suspended or waived by City, unless such suspension or waiver is by an instrument in writing signed by City's Representative ands directed to Contractor specifying such suspension or waiver. 9-5 TERMINATION IFOR CONVENIENCE. City may, at any time, terminate this Agreement for City's convenience and without cause. Contractor shall be entitled to receive payment for work executed, and costs incurred by reason of such termination. Contractor is not entitled to lost profits for work not executed following a termination for City's convenience. 9.6 WRONGFUL TERMINATION. In the event it is found that the, City improperly terminated this Agreement following an alleged default, the sole remedy available to Contractor will be those remedies available following a Termination for Convenience, 10. INSURANCE AND INDEMNIFICATION 101.1 CONTRACTOR'S INSURANCE REQUIREMENTS. 10.1.1 Contractor will provide evidence of insurance with a carrier or carriers satisfactory to City covering injury to persons and/or property suffered by City or a third party, as, a result of operations which arise both out of and during the course of this Agreement by Contractor, This coverage will also provide protection against injuries to all employees of Contractor engaged in Work under this Agreement. The delivery to City of a written thirty (30)- day notice is required before, cancellation of any coverage or reduction in any limits of liability. All insurance coverage procured by Contractor will be provided by insurance companies having policyholder ratings no lower than "A" in the Best's Insurance Gluiide, in the latest edition in effect Construction Agreement Page 8 of 11 15 February 2017 a . I 010,1111I.S.Ywal as of the date of this Agreement, and subsequently in effect at the time of renewal! of any policies required by the Contract Documents. 10. 1 .2 Contractor will maintain in force at all times d uiriing the performance of Work under this Agreement the following policies of insurance. Failure to maintain insurance may, at the option of City, be deemed Defective Work and remedied in accordance with the Contract Documents. Where specific limits and coverage are shown, it is understood that they will be the minimum acceptable. The requirements of this paragraph will not limit the Contractor's responsibility to indemnify under Paragraph 101,2, 101.2.1 Workers' Compensation Insurance: Contractor will provide and maintain, for all employees of Contractor engagedin work under this Agreement, Workers" Compensation insurance as required by AS 23.30.045, to include Empiloyer's Liability Protection in the amount of $1,000,000 per person/$ 1,000,000, per occurrence. 10.1.2.2 Comprehensive or Commercial General Liability Insurance will cover alll operations by or on behalf of Contractor and provide insurance for bodily injury and property damage liability including coverage for: premises and operations, products and completed operations, contractual liability insuring obligations assumed under Paragraph 101.2 broad form property damage and personal injury liability. The minimum limits of liability will be: If Contractor carries a Comprehensive General Liability policy, the limits of liability will not be less than a Combined Single Limit for bodily injury, property damage and Personal Injury Liability of $1,000,000 each occurrence/$ 1,000,000 aggregate. (2) If Contractor carries a Commercial General Liability policy, the limits of liability will not be less than $1,01010,0010 each occurrence (Combined Single Limit for bodily injury and property damage), $1,,000,000 for Personal Injury Liability, $1,000,000 aggregate for Products -Completed Operations and $1,0001,000 general! aggregate, 10.1.2.3 Automobile Liability Insurance- Such insurance will cover all owned, hired and non -owned vehicles and provide coverage not less than, that of the Busiiness Automobile Policy in limits not less than the following: $11,000,000 each occurrence (Combined Single Limit for bodily injury and property damage). 10.1.3C,ertificates of Insurance acceptable to City will be filed with City. Certificates pertaining to Worker's Compensation, General Liability or Automobile Liability are required for Award. Certificates for all other coverage will be provided before commencement of the Work. Each Certificate of Insurance will contain the following statement: "This is to certify that the policies described herein comply with all aspects of the insurance requirements of (Contract Name and Project Number)." Acceptance by City of a deficient Certificate of Insurance does not constitute a waiver of any requirement of insurance in the Contract Documents. Construction Agreement Page 9 of 11 15 February 2017 611MM131014FATITN"• 4 10.1.4 Contractor's insurance will underwriters on all policies waive their right of compensation coverage described at 10.12.11, policies. be endorsed to provide that the insurers and subrogation against City. Except for workers' City will be named additional insured on all 10.2 INDEMNIFICATION. To the fullest extent permitted by law, Contractor will indemnify, defend, and hold harmless City, its agents and employees from and against claims, damages, losses and expenses, including, but not limited to, attorneys' fees, arising out of or resulting from performance of the Work, provided that such claim, damage, loss or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property including losses of use resulting therefrom, but only to the extent caused in whole or in part by negligent acts or omissions of Contractor, anyone diirectlly or indirectly employed by Contractor or anyone for whose acts Contractor may be liable, regardless of whether or not such claim, damage, loss or expense is caused iin part by a party indemnified hereunder. 10.3 SURVIVAL. Contractor's insurance and indemnity obligations hereunder will survive termination of this Agreement. 11. MISCELLANEOU'S 11. 1 INTEGRATION. The Contract Documents represent the entire and integrated Agreement between the parties and supersede prior negotiations, representations or agreements, either written or oral. The Contract Documents may be amended or modified only by a written agreement signed by Contractor andl City. 11.2 ASSIGNMENT, City has entered into this Agreement in reliance on Contractor's unique abilities, and Contractor's obligations hereunder will for all purposes, be regarded and treated as personal services and will not be assignable by Contractor without City's prior written consent. 11.3 INTERPRETATION. The rule of construction that terms of an agreement are construed against the party that drafted the agreement will not apply to this Agreement., 11.4 INDEPENDENT CONTRACTOR. Contractor acts as an independent contractor to City and is not an agent, partner or joint venturer of City in the performance of this Agreement. 11.5 SUCCESSORS. Subject to the limitation on, assignment in Paragraph 11.2, this Agreement will be binding upon and will inure to the benefit of the respective heirs, successors, and assigns of the parties hereto. 11.6 NOTICES. All notices to a party under thils Agreement will be in writing and will be delivered personally, or sent by certified mail, to the following address: Construction Agreement Page 10 of 11 1.5 February 2017 507486\1002\00592150 James Hunt, City Manager , CIVIC, City Clerk (City Seal) Construction Agreement Page 11 of 11 15 February 2017 507486NI002kOO592150 AtJTHORIZATION CERTIFICATE (if Corporation) STATE OF ALASKA )SS'. THIRD JUDICIAL DISTRICT) U11 - I HEREBY CERTIFY that a meeting of the Board of Directors of the Frontier Directional 4specialists, Inc. a corporation existing under the laws of the State of Alaska, held on ftv'4 , 20 17, the following resolution was duly passed and adopted: "RESOLVED, that at*te, as � �reldeAfbf the Corporation, be and is hereby authorized to execute and deliver the Agreement presented at this meeting with the CITY OF SEWARD on behalf of the corporation and that the execution thereof shall be the official act and deed of this Corporation," I further certify that said resolution is now in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seat of the corporation this Z4 day of ,20j-L_ S01111111JI, ............ P40_ SEAL*. (SEAL) 2012 ...... ON& 507486\10021C117592150 etary FRONTDI OP ID: CSP „. CERTIFICATE INSURANCE, 0310712017 r w rw x r ♦ w, w W . Pe r - , ,� r M. r- -, r 'aja PRODUCER Business Insurance Associates 91138 Arlon Strei Sulfa A-1 PLnchoraga, AK 99507 Christophar Pobteglo INSURED Frontier Directional Drilling, Specialists Inc. Mile 82 (Richardson Hwy Copper Center, AK 89573 tAtc.'NN.. Eg:907-274-1142 ruMc. NAM: 907- m74-8721 EMMAIL __ _...�__ AIraREss Chris usinessinsuranceassociates.darn INSURE: ~II AFFORDING COVERAGE "Co j I TIER A : Alaska National Insurance Co' 138773 CNS'IJRI3t r3 Travelers _,......., ..._.......____ 31194 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUEDTO THE INSURED (NAMED ABOVE FOR THE POLICY PERIO INDICATED. NKii?a1dITHSTANDING ANY REQUIREMENT, TERM CAR CONDITION OF ANY CONTRACT OR OTHER DOCUMENTWITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR. MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS ANC) CONDITIONS OF SUCH POLICIES, LIMrrS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TYPE OF I'NaURANCE IINSR POLICY NRJFl0E14'. ...._ _ _ .RAkilb 6RMLIC7PV'"POLICY RP LIMC'Tf. GENERAL LIABILITY EACH 00CURRENCE $ 11 iNoD,Q. A X COMMERCIAL GENERAd UASILCTY - X X 6F LS 09762 0611512016 06115/2017 Tr ET ItERaTEC __. . PREMISES Ee accuraence _ $ 100,000 CLAMn.S�MADEK OCCUR MED EXP (Any Una prsrwi $ 5,000 PERSONAL & ADV INJURY I 1,000,0' GENERA, AGGREGATE $ 2,0010,0' 'GIEN"L AGGREGATE WAIT APPLIES PER '' PRODUCTS. C7MAPIOP ASG.-. $ 2,000,000 +� POLICY LOC`: $ AUTOMOBILE LIABILITY COM.PINECJSINGIER.ar�Af-... Ee accident tiB 0 1,D' 0 A ANY'AUTO X, X 6F AS 09762 0611512016 0611512017 8001Y INJURY IPec Pofson) $ ALL OV'VNEC7 OIiUi.ETa AI.17bS AUTOS BOC?tlI.Y" INJURY (Pet ¢x^crdent) $ Birl«'.i'.d']AL.IIO5t NON -OWNED AUTOS PROPEATY DAMAGE R AC'CDENT —.__.....�.._..____........ X UMBRELLA LIAO X OCCUR EACH OCCURRENCE $ 5,000,00 A EXCESS LIAB, CLAIMSVAL3E .. X X 16F I U B'9762 0611512016 06/15120117 AGGREr3AIE $ 5,000,OOD - 1) RETENTIONS 10,400 -. $ WORKERS CDMPEA5gSA11ON VVCSTATU_ OT AM4'I EMPLOYERS" LIABILITY YIN_'' TORd LII47a.. B _.... ..,...... A ANY PROPRIETOWPARTNIERCXLCUTIVE X 116F WS 09762 06M 512016 06115/2017 E L EACH ACCOENT $ 1,000 0 OFRCERIMEMBER EXCLUDED? ❑ NIA _.._ _ _ .. �. IMlandatoryInNH) E.L. DISEASE EAEMPLOYEE '$ 1,000,00 Id Yeer s dessdbs Und OESCRIPTPON Or OPERATVONS Wow .,.,..._.�_...... E,L. DISEASE . POLICY (LIMIT...$ 1,000,00 Bond 106209094 1UM412016 10�11412'!017 25,0 A �ontractGfS quiprnent Coverage 16F NA 09762 DiiI06/15120,17 scheduled DESCRIPTION OF OPERAMONS I LOCATIONS I VEHICLES IAEhach ACORD 101, Additldrral Remarks EclretN o, Cf mm spate Is regL19red1 Certificate holder named additional insured with waivers' of subrogation per blanket endorsements CITYSEW SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE; EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED 04 City of Seward ACCORDANCE WITH THE POLICY PNROVIBIONS. PO Box 167 Seward, ANC 99664 AU HGR1ZED REPRESENTATIVE a 1'989-2010 ACORD CORPORATION, All! rights reserved. ACiIRD 25 (2010105) The ACORD name and logo are registered marks o'1 ACORD APPENDIX A — DETAILED SCOPE OF WORK The project consists of three different bores at three different locations. One is located in the Cold Mill Subdivision. One is located at the Seward Marine Industrial Center (SMIQ and the third is located on Third Avenue at the Seward Lagoon, In the first two cases, the substrate is assumed to be sand, gravel and fractured shale (customary Seward substrate). In the third, the substrate is assumed to be bottom silt. Note: the Seward Lagoon Bore includes three (3,) 4" conduits, Conduit for lagoon run shall be 4", SDR-9 Smooth Wall HDPE or better. Conduits for the other two runs may be SDR- 13.5 Smooth Wall HDPE or better. Mud fi-orn the bore shall be dumped on a site provided by the City. Conduit shall be placed 20 feet below the bottom on the lagoon bottom. Contractor shall determine the depth of the lagoon by soundings or by any other method which provides accurate information. Conduit shall be placed 20 feet below the bottom of the Unnamed Rill and 30 feet below the channel of Lost Creek. Please note that any "welds', connecting pieces of conduit must be made smooth inside, to facilitate the pulling of wire. The Contractor will provide a pulling rope or device running the full length of the conduit to facilitate the installation of the wire by the City. Any suggestions to further reduce the friction of the wire against the conduit will be gratefully received. Each bore is described on the appropriate drawing, attached hereto. Contractor shall provide a bore profile showing finished work depth and location upon completion of the work. 507486\1 002\00592150 > BEGMING OF 64 z 0, Z OFFS'ET MA) EMS OF, Vlrul� =Z� ;4=6z EMEM,11,M, Z 0 z z OJECTLO BORE AiCfZ(,)SS S EN AR1 PRIT"0w XM WMM IAGOON 1FROIM NEVAULT OTIJE NORTH SIDE DAIRY HILL LANE PO A TERMINUS ATA TREN(A-1 ON THE NOR"I'll END OT THE ALLEY ADJACEN'r U) VAN FOUR FBI STREET AND BETWEEN SECOND AND THIRD AVENUES, A DISTANCE OF APROX 2200 1�1,,ET THROUGH UNDETERMINED SLIBS117.ATE , PRESUMED TO M�DOTTOM SIL', QUANTITY OF' THIREE (3) 4" CONDUTTS RUNNING, THE INTINE LENGTH OF ME BORE END OF BORE Zd z �4 rw fa P.4 rp E-1 E- Po P"IIII gip.. C9 C—) -e� --i I<,, Z fllo F-Ill Q�' 44 U 0 ek 1-4 lot qh 10 "I" q� ..... . ...... ....... ly, . ... .. . ... ....... IC) W �4 110-4 C ri.i PL4 Z P,4 44 44 PAYMENT BOND KNOW ALI, MFN BY THESE PRESENTS: that (Name of Company) (Name of Corporation) hereinafter called Principal and (Name of Surety) hereinafter called Surety, are held and firmly bound unto (Name of Grantor) (Address of Grantor) hereinafter called Owner, in the penal sum of WRITTEN AMOUNT Dollars, in lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, successors, and assign, jointly and severally, fin-nly by these presents, THE CONDITION OF THIS OBLIGATION is such that whereas, the Principal entered into a certain contract with the OWNER, dated the day . 201_, a copy of which is here attached and made a part hereof for the construction of, NOW, THEREFORE, if the Principal shall promptly make payment to all persons, finias, SUBCONTRACTORS and corporations furnishing materials for or performing labor in the prosecution of the WORK provided for in such contract, and any authorized extension or modification thereof, including all amounts due for materials, lubricants, oil, gasoline, coal and coke, repairs on machinery, equipment and tools, consumed or used in connection with the construction of such WORK, and all insurance premiums on said WORK, and for all labor, perfon-ned in such WORK whether by SUBCONTRACTOR or otherwise then this obligation shall be void: otherwise to remain in full force and effect. PROVIDED, FURTHER., that the said Surety for value received hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms, of the contract or, to the WORK to be performed thereunder or the SPECIFICATIONS accompanying the same shall in any wise affect its obligation on this BOND, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the contract or to, the WORK or to the SPECIFICATIONS. PROVIDED, FUR'"Fl I ER, that no final settlement between the OWNER and the CONTRACTOR shall abridge the right of any beneficiary hereunder, whose claim may be unsatisfied, IN WITNESS WRIER OF, this instrument is executed in counterparts, each one of which shall be deemed an original, this day of 200. ATTEST: (Principal - Secretary) (SEAL) By: (Witness as to Principal) (Address) ATTEST: (Surety - Secretary) (SEAL) M (Witness as to Surety) (Address) (Principal) (Address) (Attomey-in-fact) (Address) NOTE: Date of BOND must riot be prior to date of Contract. If CONTRACTOR is Partnership, all partners should execute BOND, IMPORTANT: Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the state where the PROJECT is located. PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: that (Name of Company) (Name of Corporation) hereinafter called Principal and (Name of Surety} hereinafter called Surety, are held and firmly bound unto (Marne of Grantor) (Address of Grantor) hereinafter called Owner, in the penal sum of WRITTEN AMOUNT Dollars, -__J' in lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, successor, and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION is such that whereas, the Principal entered into a certain contract with the OWNER, dated the day 201 —, a copy of which is here attached and made a part hereof for the construction of:. NOW, THEREFORE, if the Principal shall promptly make payment to all persons, firms, SUBCONTRACTORS and corporations furnishing materials for or performing labor in the prosecution of the WORK provided for in such contract, and any authorized extension or modification thereof, including all amounts due for materials, lubricants, oil, gasoline, coal and coke, repairs on machinery, equipment and tools, consumed or used in connection with the construction of such WORK, and all insurance premiums on said WORK, and for all labor, performed in such WORK whether by SUBCONTRACTOR or otherwise then this obligation shall be vodd: otherwise to remain in full force and effect. PROVIDED, FURTHER, that the said Surety for value received hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the WORK to be performed thereunder or the SPECIFICATIONS accompanying the same shall in any wise affect its obligation on this BOND, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the contract or to the WORK,or to the SPECIFICATIONS. PROVIDED, FURTHER, that no final settlement between the OWNER and the CONTRACTOR shall abridge the right of any heneficiary hereunder, whose claim nay be unsatisfied. IN WITNESS WHEREOF, this instrument is executed in counterparts, each one of which shall be deemed an original, this day of 200 ATTEST- (Principal — Secretary) (SEAL) By: (Witness as to Principal) (Address) ATTEST: (Surety - Secretary) (SEAL) M (Witness as to Surety) (Address) (Principal) (Address) (.!attorney -in -fact) (Address) NOTE: Date of BOND inust not be prior to date of Contract If CONTRACTOR is Partnership, all partners should execute BOND. IMPORTANT: Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the state where the PROJECT is located.