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HomeMy WebLinkAbout9B - 2005 Public Imp. Project16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 DATE: AGENDA #: PREPARED BY: REVIEWED BY: SUBJECT: DISCUSSION: CITY COUNCIL AGENDA REPORT MAY 16, 2005 9B LARRY POPPLER, ASSISTANT CITY ENGINEER STEVE ALBRECHT, CITY ENGINEER CONSIDER APPROVAL OF TWO RESOLUTIONS RELATING TO THE 2005 PUBLIC IMPROVEMENT PROJECT: 1) ACCEPTING BIDS AND AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR STREET AND UTILITY CONSTRUCTION FOR PROJECT #05-01 AND #05-11 AND 2) ACCEPTING BIDS AND AWARDING THE AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR 2005 ClPP SANITARY SEWER REHABILITATION PROJECT #05-12. HISTORY City Project #05-01 & 05-11 includes proposed street and utility reconstruction improvements to Fish Point Road, Fairlawn Shores Trail, Frost Point Circle, Bluedorn Circle, 150th Street, Candy Cove Trail, Centennial Street, Franklin Trail, Duluth Street, and Pleasant Street. The City Council held a Public Hearing for these improvements on January 18, 2005. The project was in the approved 2005 Capital Improvements Program and on April 4, 2005 the Council approved plans and specifications and authorized the Advertisement for Bids for the project. The purpose of this agenda item is to accept the bids and award a contract to the lowest responsible bidder. One element of this project is the rehabilitation of the sanitary sewer pipe serving this area. This work was bid separately from the road reconstruction project. This agenda item recommends that the Council award bids for both the street and utility reconstruction projects and authorize execution of the City's standardized construction contract for both projects. CURRENT CIRCUMSTANCES (1) 2005 Improvement Project Bids were received and opened on May 4, 2005. Two bidders submitted bids. The bids have been checked and tabulated. Northwest Asphalt from Shakopee, Minnesota submitted the Iow bid in the amount of $3,327,148.45. The bid was below the Engineer's Estimate of $3,611,776.00 by $284,628. The summary is as follows: G:La,$endaXA~:enda05\05 AWARD CONTRACT.~'city°f¥ri°rlake'c°m Phone 952.447.4230 / Fax 952.447.4245 COMPANY Northwest Asphalt Inc. Park Construction BID AMOUNT $3,327,148.45 $3,767,817.89 Northwest Asphalt is a responsible contractor and completed the City's 1999, 2000, and 2004 Reconstruction projects (Candy Cove, Oakridge, and Rutledge). The staff recommends that the City Council award the contract to Northwest Asphalt Inc. as the lowest responsible bidder. The project is to be paid for from a number of funding sources including assessments, tax levy, Enterprise Fund, Street Fund, Water Quality Fund, and Capital Park Fund. The street construction and storm sewer are to be paid from assessments (40%) and tax levy (60%) (except for Centennial which is proposed to be 100% special assessment), the Water Quality fund is to pay for part of the trunk storm sewer. The Sewer and Water Enterprise funds are to pay for all watermain and sanitary sewer main replacement. The Capital Park Fund is to pay for sidewalk improvements on the project. The Street Fund is to pay for the 150th Street overlay. The tables below show the funding sources for the project: CITY PROJECT #05-01 & #05-'11 RECONSTRUCTION Total Bid Amount $3,327,148.45 Items Paid from Enterprise Fund: $955,768.58 Items Paid from the Capital Park Fund $94,400.75 Items Paid from the Water Quality Fund $116,936.71 Items Paid from the Street Fund $48,067.25 Net Construction Cost Basis for Assess. $2,111,975.16 Determination Plus 25% Admin. Finance, Eng., $527,993.79 Total Project Cost for Assessment $2,639,968.95 Determination Assessment Amount (40%) $990,851.78 Assessment Amount ( 100%) $162,839.50 Total Levy Amount $1,486,277.67 '1 City parcel was added to the number of units for the park property adjacent the reconstruction. FUNDING SOURCES FUNDING Tax Levy* Assessments* Enterprise Fund** Capital Park Fund TOTAL $1,486,277.67 $1,153,691.28 $1,118,780.58 $94,400.75 G:~,Agenda~4~genda05\05 AWARD CONTRACT. DOC 2 Water Quality Fund Street Fund Total Construction Cost* II $~ 16,936.71 II $48,067.25 II $4,018,154.24 * Includes 25% for Admin, Finance, and Engineering ** Includes $163,012.00 for cured in place pipe contract (2) Sanitary Sewer Rehabilitation Project Bids were received and opened on May 4, 2005 for the 2005 CIP Sanitary Sewer Rehabilitation Project. Four bidders submitted bids. The bids have been checked and tabulated. Insituform Technologies from Chesterfield, Missouri submitted the Iow bid in the amount of $163,012.00. The bid was below the Engineer's Estimate of $203,048.60 by $40,037. The summary is as follows: COMPANY BID AMOUNT Insituform Technologies USA, $163,012.00 Inc. Visu-Sewer Clean and Seal, Inc $175,419.80 LaMetti and Sons $186,470.00 Michel's Corporation $240,776.00 Insituform Technologies USA Inc. is a responsible contractor. The staff recommends that the City Council award the contract to Insituform Technologies as the lowest responsible bidder. The project is to be paid for from the Enterprise Fund. ISSUES As the Council may recall, the residents of Frost Point Road requested that the project be bid so that this road could be removed from the project. The specifications were prepared as directed. More recently residents in the Frost Point Road area indicated that they would be amenable to receiving a road overlay rather than complete reconstruction. The staff recommends that the Council retain Frost Point Road in the project for the following reasons: 1) The roadway has a pavement management rating of 58. This rating is two points higher (on a 100% scale) than other roads in the project. This rating is a direct result of the heaving of the curbs, extensive road cracking and alligatoring. All of the above indicate a failing base, which will continue to destroy the bituminous presently in place, or any other layer which might be contemplated. G:'~gendak4,genda05\05 AWARD CONTRACT.DOC 3 2) If Frost Point is not done now we cannot predict when we will be back to complete the street given the funding constraints we face. 3) Doing Frost Point alone is likely to cost more given the small quantities and the disruption will affect the neighbors who will have their streets replaced this year. 4) In preparation for the October Special Assessment Hearing the Staff will have a recommendation to provide a credit for the existing concrete curb and gutter. 5) If an overlay were contemplated one of two things would occur: 1 If assessed, a new public improvement process would need to be conducted together with public notice and hearing. 2. If the residents agree to pay 100% of the overlay costs the City would need a petition and payment prior to initiating that project to guarantee full payment from 100% of the residents. Unanimous support is unlikely. Flint Road is not included in the proposed project. While the road is public, the staff has been advised that Flint Road would need to be constructed in order for special benefit to be present. The road was not included in the project initially because of its uncertain status (public or private). Another item, which needs to be addressed before reconstructing this road, is the elevation as it relates to flood plain requirements. For these reasons this roadway was excluded from the project. Both contractors are capable of completing the proposed project. Northwest Asphalt of Shakopee, Minnesota is a satisfactory contractor who has previous experience with Prior Lake street improvement projects. Their Iow bid was below our engineer's estimate, which could result in a modest reduction in the special assessment amount. Insituform Technologies has experience in the cast in place sanitary sewer restoration work. CONCLUSIONS Staff recommends that the Council award the following contracts: 1) 2005 Improvement Project to Northwest Asphalt, Inc. 2) 2005 CIP Sanitary Sewer Rehabilitation Project to Insituform Technologies. ALTERNATIVES: There are three alternatives for the City Council to consider: 1. Approve two resolutions (1) accepting bids and awarding the city's standardized construction contract for Project 05-01 & 05-11, G:~ua, genda~,Agenda05\05 AWARD CONTRACT. DOC 4 2) 2005 Improvements t o t he Iowest responsible bidder, Northwest Asphalt Inc. for the bid amount of $3,327,148.45 and authorizing the Mayor and City Manager t o execute t he City's standardized construction contract for t he project a nd (2) Accepting b ids a nd awarding the City's standardized construction contract for Project 05-12, 2005 CIPP Sanitary Sewer Rehabilitation Project to the lowest responsible bidder, Insituform Technologies USA, Inc. for the bid amount of $163,012.00 and authorizing the Mayor and City Manager to execute the City's standardized construction contract. Deny this item for a specific reason and provide staff with direction. 3) Table this item until some date in the future. RECOMMENDED MOTION: A motion and second to adopt resolutions (1) accepting bids and awarding the contract for 2005 Improvement Project 05-01 & 05-11 to Northwest Asphalt Inc. and (2) accepting bids and awarding the contract for 2005 CIPP Sanitary Sewer Rehabilitation Project 05-12 to Insituform Technologies USA, Inc. G:XAgendaXAgenda05\05 AWARD CONTRACT.DOC 5 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 05-xx ACCEPTING BIDS AND AWARDING CONTRACT FOR 2005 IMPROVEMENT PROJECT #05-01 & #05-11 MOTION BY: SECOND BY: WHEREAS, pursuant to an advertisement for bids for the 2005 Improvement Project including Fish Point Road, Fairlawn Shores Trail, Frost Point Circle, Bluedorn Circle, 150th Street, Candy Cove Trail, Centennial Street, Franklin Trail, Duluth Avenue, and Pleasant Street (City Project #05-01 & #05-11) which includes sanitary sewer, water main, storm sewer, aggregate base, concrete curb and gutter, bituminous pavement, turf restoration and appurtenant work; and WHEREAS, two bids were received, opened, and tabulated according to law; and WHEREAS, the following bids were received complying with the advertisement: CONTRACTORS Northwest Asphalt, Inc. Park Construction BID $3,327,148.45 $3,767,817.89 WHEREAS, Northwest Asphalt, Inc. of Shakopee, Minnesota is the lowest responsible bidder. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, THAT: , , . The recitals set forth above are incorporated herein. The Mayor and City Manager are hereby authorized to enter into the City's standard contract with Northwest Asphalt, Inc. of Shakopee, Minnesota in the name of the City of Prior Lake for the 2005 Improvement Project (Project #05-01 & #05-11)in the amount of $3,327,148.45. The City Manager is hereby authorized and directed to return to all bidders the deposits made with their respective bids. The staff report, incorporated herein as Exhibit 1, sets forth the funding sources. Passed and adopted this 16th day of May 2005. YES NO Haugen Haugen Fleming Fleming LeMair LeMair Petersen Petersen Zieska Zieska Frank Boyles, City Manager G:\Resolution\Resol05~WARD05.DOC www. cityofpriorlake, com Phone 952.447.4230 / Fax 952.447.4245 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 05-xx ACCEPTING BIDS AND AWARDING CONTRACT FOR 2005 CIPP SANITARY SEWER REHABILITATION PROJECT #05-12 MOTION BY: SECOND BY: WHEREAS, pursuant to an advertisement for bids for the 2005 ClPP Sanitary Sewer Rehabilitation Project including rehabilitation of sanitary sewer for Fish Point Road, Fairlawn Shores Trail, Frost Point Circle, Bluedorn Circle, Candy Cove Trail, and Centennial Street (City Project #05-12). WHEREAS, four bids were received, opened, and tabulated according to law; and WHEREAS, the following bids were received complying with the advertisement: CONTRACTORS BID Insituform Technologies USA, Inc. Visu Sewer Clean and Seal, Inc. Lametti and Sons, Inc. Michel's Pipeline Construction $163,012.00 $175,419.80 $186,470.00 $240,776.00 WHEREAS, Insituform Technologies USA, Inc. from Chesterfield, Missouri is the lowest responsible bidder. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, THAT: 1. The recitals set forth above are incorporated herein. . The Mayor and City Manager are hereby authorized to enter into the City's standard contract with Insituform Technologies USA, Inc. from Chesterfield, Missouri in the name of the City of Prior Lake for the 2005 CIPP Sanitary Sewer Rehabilitation Project (Project #05-12) in the amount of $163,012. , The City Manager is hereby authorized and directed to return to all bidders the deposits made with their respective bids. 4. The staff report, incorporated herein as Exhibit 1, sets forth the funding sources. Passed and adopted this 16th day of May 2005. YES NO Haugen Haugen Fleming Fleming LeMair LeMair Petersen Petersen Zieska Zieska G:\Resolution\Resol05~WARD CIPP 05.DOC www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 LOWER PRIOR LAKE -- CITY PROJECT #05-11 PROJECT AREA MAP EXHIBIT 1 700 . _ ..... ___ 0 700 Foot CITY PROJECT #05-01 PROJECT AREA MAP EXHIBIT lA 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 STANDARD CONTRACT BETVVEEN THE CITY AND CONTRACTOR THIS AGREEMENT made this 16th day of May, 2005, by and between the CITY OF PRIOR LAKE, a Minnesota municipal corporation (hereinafter the "City'~ and Northwest Asphalt, Inc. (hereinafter the "Contractor'~ whose address is 1451 Staqecoach Road, Shakopee, MN 55379. Purpose: The City Council has determined that the City should construct sanitary sewer, watermain, storm sewer, streets, and appurtenant work in the area of Candy Cove Trail, Centennial Street, Franklin Trail, Duluth Avenue, Pleasant Street, Fish Point Road, Bluedorn Circle, Frost Point Circle, Fairlawn Shores Trail and 150· Street (Project #05-11) in accordance with the Plans and Specifications dated April 15, 2005. After completing the notification and bidding process, the City Council has awarded bid to Northwest Asphalt, Inc. by Resolution ~5-xx, subject to entering into this contract. The City and Contractor for the consideration stated below, agree as follows: , The Contractor agrees to perform and complete all the provisions of the specifications and/or plans indicated below in Paragraph 2, as approved by the City for City Project #05-01 & #05-11 in accordance with the City's 2005 Improvement Project Plans and Specifications. , Contract and Contract Documents. The following documents attached hereto shall be referred to as the "Contract Documents", all of which shall be taken together as a whole as the contract between the parties as if they were set out verbatim and in full herein which are all on file in the office of the City Manager: · The City's Advertisement for Bids dated April 4, 2005. · Plans and Specifications · Proposal submitted by Contractor and on file in the office of the City Manager of the City · Performance Bond and Payment Bond · Insurance Certificate(s); and · This document The Project ("Work"). The Contractor shall perform all of the Work required by the Contract Documents for the sum of $ three-million, three-hundred, twenty-seven thousand, one-hundred, forty-eight and 45/100 Dollars ($3,327,148.45). , Time of Commencement and Substantial Completion. The Work to be performed under this Contract shall be commenced immediately after execution of this Agreement. The Work shall be substantially completed by October 31,2005. a, Starting the Work: 1. The Contractor shall commence the Work in such a manner and at such a time as to expeditiously interface with the Work of other contractors, and shall pursue the Work diligently to completion. Page 1 of 7 www. cityofpriorlake, com C_,ma[~ un 5i6i2005 4:05 Pivi Phone 952.447.4230 / Fax 952.447.4245 , 1 The execution of this Agreement by both parties constitutes a Notice to Proceed with the Work, unless the City issues a separate Notice to Proceed designating a different starting time. The Contractor shall promptly provide timely performance according to the immediate progress requirement of the Work. The Contractor shall commence the Work prior to the execution of this Agreement if a Letter of Intent containing a Notice to Proceed is issued by the City. Upon receipt of a Notice to Proceed, the Contractor shall pursue and complete the Work without voluntary interruption for any reason, as long as the Work can be performed. The Contractor agreed that it shall continue the Work at all times the Work can be performed, at a pace consistent with good industry practice regardless of pending or current disputes in connection with the Contract Documents. Timely Performance. It is the City's intent to complete the Project as soon as possible. The Contractor agrees to cooperate in scheduling and performing the Work to achieve completion of the Project as soon as possible. Contract Sum. The City shall pay the Contractor in current funds for the performance of the Work, subject to additions and deductions by Change Orders as provided in the Contract Document. o Final Payment. Final payment, constituting the entire unpaid balance of the Contract Sum, shall be paid by the City to the Contractor when the Work has been completed, the Contract fully performed, and the City accepts the Work. The acceptance of final payment shall constitute a waiver of all claims by the Contractor except those previously made in writing and identified by the Contractor as unsettled at the time of Application for Final Payment. . Performance and Payment Bonds. The Contractor shall post a Performance and Payment Bond each in an amount equal to one hundred percent (100%) of the payments due Contractor to insure the prompt and faithful performance of this Contract by Contractor and to insure prompt payment to the subcontractor and suppliers of the Contractor. The Bonds shall be in a form approved by the City. Contractor shall provide the Bond to the City before commencing work and together with the executed contract document. If the Performance and/or Payment Bond are not submitted as provided herein, this Contract shall be considered void. 8. Insurance and Indemnification. a! The Contractor shall purchase and maintain insurance to protect itself from claims under the Worker's Compensation Act. b. The Contractor shall purchase and maintain insurance to protect itself from claims for damages because of bodily injury including personal injury, sickness or disease, or death of any of its employees or any person other than its employees; and from claims for damages because of injury to or destruction of tangible property including loss of use resulting therefrom and from claims arising out of the performance of this Contract by the Contractor. The base limits of this policy shall be $1,000,000 combines single limit. Page 2 of 7 G:\PROJECTS~2005\I l_FishPoint_Faidawn\Correspondence\STAN DARDAGREECONTRACTORSNWASPHALT05.doc Before the City executes this Contract, the Contractor shall provide the City with evidence of insurance in a form of a Certificate from the insurer naming all policies. The City shall be an additional named insured on the Contractor's insurance policy. The insurance policies shall contain a provision that they may not be cancelled unless prior written notice thereof is given to the City not less than ten (10) business days prior to the cancellation date. d, The Contractor shall be responsible for initiating, maintaining and supervising all safety precautions and programs in connection with the Work. The City shall not be responsible for or have control of safety precautions and programs in connection with the Work. e, Contractor provides the financial protection of the required insurance to benefit both City and Contractor. Providing and paying for the insurance is part of the consideration which Contractor offers City. The City does not represent or warrant that the types of limits of insurance specified in this Article adequately protect Contractor's interest or sufficiently cover Contractor's liability. The Contractor shall defend, hold harmless and indemnify the City, its officers, agents and employees from and against any and all claims, demands, actions or causes of action (including court costs and reasonable attorneys' fees) of whatever nature of character arising from the Contractor's performance of the Work herein. Warranty. The Contractor expressly warrants and guarantees to the City that all Work performed and all materials furnished shall be in accord with the Contract Documents and shall be free from defects in materials, workmanship, and operation which appear within a period of I year, or within such longer period as may be prescribed by law or in the terms of the Contract Documents, from the date of City's acceptance of the Work. The City's rights under the Contractor's warranty are not the City's exclusive remedy. The City shall have all other remedies available under this Contract, at law or in equity. Should any defects develop in the materials, workmanship or operation of the system within the specified period, upon notice from the City, the Contractor agrees, within fourteen (14) calendar days after receiving written notice and without expense to the City, to repair, replace and in general to perform all necessary corrective Work with regard to the defective or nonconforming Work or materials to the satisfaction of the City. THE FOREGOING SHALL NOT IN ANY MANNER LIMIT THE CITY'S REMEDY OR THE CONTRACTOR'S LIABILITY TO THOSE DEFECTS APPEARING WITHIN THE WARRANTY PERIOD. The Contractor agrees to perform the Work in a manner and at a time so as to minimize any damages sustained by the City and so as to not interfere with or in any way disrupt the operation of the City or the public. The corrective Work referred to above shall include without limitation, (a) the cost of removing the defective or nonconforming Work and materials from the site, (b) the cost of correcting all Work of other Contractors destroyed or damaged by defective or nonconforming Work and materials including the cost of removal of such damaged Work and materials form the site, and (c) the cost of correcting all damages to Work of other Contractors caused by the removal of the defective or nonconforming Work or materials. Page 3 of 7 G:\PROJECTS~2005\I I_FishPoinLFaidawn\Correspondence\STANDARDAGREECONTRACTORSNWASPHALT05.doc 10. 11. The Contractor shall post bonds to secure the warranties. Riahts and Remedies. The duties and obligations imposed by the Contract Documents and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. No action nor failure to act by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under the Contract, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing. Notice. Required notices to the Contractor shall be in writing, and shall be either hand-delivered to the Contractor, its employees or agents, or mailed to the Contractor by certified mail at the following address: 12. 13. Northwest Asphalt, Inc. 1451 Staqecoach Road Shakopee, MN 55379 Notices to the City shall be in writing and shall be either hand-delivered or mailed to the City by certified mail at the following address: Steve Albrecht, City Engineer City of Prior Lake 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372 Condition and Inspection. All goods and other materials furnished under this Contract shall be new and in current manufacture, unless otherwise specified, and all goods and work shall be of hood quality, free from faults and defects and in conformance with the Contract Documents. All goods and work not conforming to these requirements shall be considered defective. Goods shall be subject to inspection and testing by the City. Defective goods or goods not in current manufacture may be returned to the Contractor at the Contractor's expense. Correction of Work. The Contractor shall promptly correct all Work rejected by the City as defective or as failing to conform to the Contract Documents whether observed before or after Substantial Completion of the Project and whether or not fabricated, installed or completed. The Contractor shall bear all costs of correcting such rejected Work. If, within one (1) year after the Date of Substantial Completion of the Project or designated portion thereof or within one (1) year after acceptance by the City of designated equipment, or within such longer period of time as may be prescribed by law or by the terms of any applicable special warranty required by the Contract Documents, any of the Work is found to be defective or not in accordance with the Contract Documents, the Contractor shall correct it promptly after receipt of a written notice from the City to do so Page 4 of 7 G:\PROJECTS~2005\I I_FishPoint_Fairlawn\Correspondence\STANDARDAGREECONTRACTORSNWASPHALT05.doc 14. 15. 16. 17. 18. unless the City has previously given the Contractor a written acceptance of such condition. This obligation shall survive both final payment for the Work or designated portion thereof and termination of the Contract. The City shall give such notice promptly after discovery of the condition. City's Right to Carry Out the Work. If the Contractor defaults or neglects to carry out the Work in accordance with the Contract Documents or fails to perform any provisions of the Contract, the City may, after seven (7) days written notice to the Contractor and without prejudice to any other remedy the City may have, make good such deficiencies. In such case an appropriate Change Order shall be issued deducting from the payment then or thereafter due the Contractor the cost of correcting such deficiencies. If the payments then or thereafter due the Contractor are not sufficient to cover such amount, the Contractor shall pay the difference to the City. Chanqe Orders. The Contract Sum may be changed only by written Change Order approved by the City Council. The cost or credit to the City resulting from a Change Order shall be determined in one of the following manners: (1) by mutual acceptance of a lump sum; or (2) by unit prices stated in the Contract Documents as subsequently agreed upon. Any request for Change Order must be certified as true, correct and accurate by the maker to avoid fraudulent requests. Unauthorized Work. Additional Work performed without authorization of a Change Order will not entitle Contractor to an increase in the Contract Price or an extension of the Contract Time. Termination. If the Contractor persistently or repeatedly refuses or fails, except in cases for which extension of time is provided, to supply enough properly skilled workers or proper materials, or fails to make prompt payment to subcontractors or for materials or labor or persistently disregards laws, ordinances, rules, regulations or orders of any public authority having jurisdiction, or otherwise is guilty of a substantial violation of a provision of the Contract Documents, and fails within seven (7) days after receipt of written notice to commence and continue correction of such default, neglect or violation with diligence and promptness, the City may, without prejudice to any other remedy the City may have, terminate the employment of the Contractor and take possession of the site and of all materials, equipment, tools, construction equipment and machinery thereon owned by the Contractors and may finish the Work by whatever methods the City may deem expedient. In such case, the Contractor shall not be entitled to receive any further payment until the Work is finished. Prompt Payment to Subcontractors. The Contractor shall pay any subcontractor within ten (10) days of the Contractor's receipt of payment by the City of undisputed services provided by the subcontractor. If the Contractor fails within that time to pay the subcontractor any undisputed amount for which the Contractor has received payment by the City, the Contractor shall pay interest to the subcontractor on the unpaid amount at the rate of one and one-half percent (1.5%) per month or any part of a month. The minimum monthly interest penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual interest penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties' from the Contractor shall be awarded its costs and disbursements, including attorneys' fees, incurred in bdnging the action. The Contractor shall, by an appropriate agreement with each subcontractor, require each subcontractor to make payments to his subcontractors in a similar manner. Page 5 of 7 G:\PROJECTS~2005\I l_FishPoint_Faidawn\Correspondence\STAN DARDAGREECONTRACTORSNWASPHALT05.doc 19. Independent Contractor. At all times and for all purposes hereunder, the Contractor is an independent contractor, and not an employee of the City. 20. Affirmative Action Policy. All Contractors and subcontractors employed shall comply with all applicable provisions of all federal, state and municipal laws which prohibit discrimination in employment on the basis of race, color, religion, sex marital status, national origin, ancestry, age, and physical or mental handicap and all rules and regulations, promulgated and adopted pursuant thereto. The Contractor will include a similar provision in all subcontracts entered into for the performance of this contract. 21. Miscellaneous. a. This Contract shall become effective only upon its execution by both the City and the Contractor. This Contract shall not be modified, rescinded, waived or terminated without the approval in writing of the City Council. b. The City shall be allowed to audit Contractor's books and records during regular business hours upon five (5) days written notice. c. The Contractor and City, together with their respective agents and employees, agree to abide by the provisions of the Minnesota Data Practices Act, Minnesota Statutes Section 13, as amended, and Minnesota Rules promulgated pursuant to Chapter 13. d. This Agreement shall be governed by the laws of the State of Minnesota. e. That with respect to any and all businesses conducted or acts performed pursuant to this Agreement, the Contractor shall be deemed an employer. IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date and year hereinabove first written. CITY OF PRIOR LAKE CONTRACTOR By: By:, Jack G. Haugen, Mayor Northwest Asphalt, Inc. Its: By: Frank Boyles, City Manager Page 6 of 7 G:\PROJECTS~005\I l_FishPoint_Faiflawn\Correspondence\STAN DARDAGREECONTRACTORSNWASPHALT05.doc STATE OF MINNESOTA COUNTY OF SCOTT The foregoing instrument was acknowledged before me this ~ day of ,20 , by Jack G. Haugen and Frank Boyles, respectively the Mayor and City Manager of the City of Prior Lake, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. STATE OF MINNESOTA COUNTY OF SCOTT The foregoing instrument was acknowledged before me this the behalf, Contractor. Notary Public day of a ,20 , by of , on Notary Public Page 7 of 7 G:\PROJECTS~2005\I l_FishPoinLFaidawn\Correspondence\STAN DARDAGREECONTRACTORSNWASPHALT05.doc 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 STANDARD CONTRA CT BETWEEN THE CITY AND CONTRACTOR FOR 2005 CIPP SANITARY SEWER REHABILITATION PROJECT, CITY PROJECT #05-12 TH~S AGREEMENT made this 16th day of May, 2005, by and between the CITY OF PRIOR LAKE, a Minnesota municipal corporation (hereinafter the "City'~ and Insituform Technologies USA, Inc. (hereinafter the "Contractor'~ whose address is 17988 Edison Avenue, Chesterfield, MO 63005. Purpose: The City Council has determined that the City should construct approximately 5,750 lineal feet of 8-inch VCP measured in place pipe (CIPP), 95 lateral reinstatements, tap trimming, 4 manhole bench and joint sealing, and appurtenances for the 2005 ClPP Sanitary Sewer Rehabilitaiton Project (Proiect #05-12) in accordance with the Plans and Specifications dated March, 2005. After completing the notification and bidding process, the City Council has awarded bid to Insituform Technoloqies by Resolution 05-xx, subject to entering into this contract. The City and Contractor for the consideration stated below agree as follows: . . , The Contractor agrees to perform and complete all the provisions of the specifications and/or plans indicated below in Paragraph 2, as approved by the City for City Project #05-12 in accordance with the City's 2005 ClPP Sanitary Sewer Rehabilitation, Project #05-12 Plans and Specifications. Contract and Contract Documents. The following documents attached hereto shall be referred to as the "Contract Documents", all of which shall be taken together as a whole as the contract between the parties as if they were set out verbatim and in full herein which are all on file in the office of the City Manager: · The City's Advertisement for Bids dated April 11, 2005. · Plans and Specifications · Proposal submitted by Contractor and on file in the office of the City Manager of the City. · Performance Bond and Payment Bond. · Insurance Certificate(s); and · This document. The Project ("Work"). The Contractor shall perform all of the Work required by the Contract Documents for the sum of one-hundred, sixty-three thousand, twelve and 00/100 Dollars (~163,012.00). www.cityof~riorlake.com G:\PROJECTS~005\11 FishPoint Faidawn\Ccli~el~..Zlbll~.R~'~TR/AClF~,~;l?),~g.FUl/l~l~c. 4245 . Time of Commencement and Substantial Completion. The Work to be performed under this Contract shall be commenced immediately after execution of this Agreement. The Work shall be substantially completed by December 31, 2005. a. Starting the Work: 1. The Contractor shall commence the Work in such a manner and at such a time as to expeditiously interface with the Work of other contractors, and shall pursue the Work diligently to completion. 2. The execution of this Agreement by both parties constitutes a Notice to Proceed with the Work, unless the City issues a separate Notice to Proceed designating a different starting time. The Contractor shall promptly provide timely performance according to the immediate progress requirement of the Work. 3. The Contractor shall commence the Work prior to the execution of this Agreement if a Letter of Intent containing a Notice to Proceed is issued by the city. 4. Upon receipt of a Notice to Proceed, the Contractor shall pursue and complete the Work without voluntary interruption for any reason, as long as the Work can be performed. The Contractor agreed that it shall continue the Work at all times the Work can be performed, at a pace consistent with good industry practice regardless of pending or current disputes in connection with the Contract Documents. a. Timely Performance. It is the City's intent to complete the Project as soon as possible. The Contractor agrees to cooperate in scheduling and performing the Work to achieve completion of the Project as soon as possible. Contract Sum. The City shall pay the Contractor in current funds for the performance of the Work, subject to additions and deductions by Change Orders as provided in the Contract Document. . Final Payment. Final payment, constituting the entire unpaid balance of the Contract Sum, shall be paid by the City to the Contractor when the Work has been completed, the Contract fully performed, and the City accepts the Work. The acceptance of final payment shall constitute a waiver of all claims by the Contractor except those previously made in writing and identified by the Contractor as unsettled at the time of Application for Final Payment. . Performance and Payment Bonds. The Contractor shall post a Performance and Payment Bond each in an amount equal to one hundred percent (100%) of the payments due Contractor to insure the prompt and faithful performance of this Contract by Contractor and to insure prompt payment to the subcontractors and suppliers of the Contractor. The Bonds shall be in a form approved by the City. Contractor shall provide the Bond to the City before commencing work and together with the executed contract document. If the Performance and/or Payment Bond are not submitted as provided herein, this Contract shall be considered void. 4. Insurance and Indemnification. a. The Contractor shall purchase and maintain insurance to protect itself from claims under the Worker's Compensation Act. 2 G:\PROJECTS~O05\11 FishPoint Faidawn\Correspondence\STANDARD CONTRACT INSITUFORM.doc bo The Contractor shall purchase and maintain insurance to protect itself from claims for damages because of bodily injury including personal injury, sickness or disease, or death of any of its employees or any person other than its employees; and from claims for damages because of injury to or destruction of tangible property including loss of use resulting therefrom and from claims arising out of the performance of this Contract by the Contractor. The base limits of this policy shall be $1,000,000 combined single limit. Before the City executes this Contract, the Contractor shall provide the City with evidence of insurance in a form of a Certificate from the insurer naming all policies. The City shall be an additional named insured on the Contractor's insurance policy. The insurance policies shall contain a provision that they may not be cancelled unless prior written notice thereof is given to the City not less than ten (10) business days prior to the cancellation date. do The Contractor shall be responsible for initiating, maintaining and supervising all safety precautions and programs in connection with the Work. The City shall not be responsible for or have control of safety precautions and programs in connection with the Work. e, Contractor provides the financial protection of the required insurance to benefit both City and Contractor. Providing and paying for the insurance is part of the consideration which Contractor offers City. The City does not represent or warrant that the types of limits of insurance specified in this Article adequately protect Contractor's interest or sufficiently cover Contractor's liability. The Contractor shall defend, hold harmless and indemnify the City, its officers, agents, and employees form and against any and all claims, demands, actions or causes of action (including court costs and reasonable attorneys' fees) of whatever nature of character arising from the Contractor's performance of the Work herein. Warranty. The Contractor expressly warrants and guarantees to the City that all Work performed and all materials fumished shall be in accord with the Contract Documents and shall be free from defects in materials, workmanship, and operation which appear within a period of 1 year, or within such longer period as may be prescribed by law or in the terms of the Contract Documents, from the date of City's acceptance of the Work. The City's rights under the Contractor's warranty are not the City's exclusive remedy. The City shall have all other remedies available under this Contract, at law or in equity. Should any defects develop in the materials, workmanship or operation of the system within the specified period, upon notice from the City, the Contractor agrees, within fourteen (14) calendar days after receiving written notice and without expense to the City, to repair, replace and in general to perform all necessary corrective Work with regard to the defective or nonconforming Work or materials to the satisfaction of the City. THE FOREGOING SHALL NOT IN ANY MANNER LIMIT THE CITY'S REMEDY OR THE CONTRACTOR'S LIABILITY TO THOSE DEFECTS APPEARING WITHIN THE WARRANTY PERIOD. The Contractor agrees to perform the Work in a manner and at a time so as to minimize any damages sustained by the City and so as to not interfere with or in any way disrupt the operation of the City or the public. 3 G:\PROJECTS~2005\11 FishPoint Fairlawn\Correspondence\STANDARD CONTRACT INSITUFORM.doc , . The corrective Work referred to above shall include without limitation, (a) the cost of removing the defective or nonconforming Work and materials from the site, (b) the cost of correcting all Work of other Contractors destroyed or damaged by defective or nonconforming Work and materials including the cost of removal of such damaged Work and materials from the site, and (c) the cost of correcting all damages to Work of other Contractors caused by the removal of the defective or nonconforming Work or materials. The Contractor shall post bonds to secure the warranties. Rights and Remedies. The duties and obligations imposed by the Contract Documents and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. No action nor failure to act by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under the Contract, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing. Notice. Required notices to the Contractor shall be in writing, and shall be either hand- delivered to the Contractor, its employees or agents, or mailed to the Contractor by certified mail at the following address: Insituform Technologies USA, Inc. 17988 Edison Avenue Chesterfield, MO 63005 Notices to the City shall be in writing and shall be either hand-delivered or mailed to the City by certified mail at the following address: Larry Poppler, Assistant City Engineer City of Prior Lake 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372 . . Condition and Inspection. All goods and other materials furnished under this Contract shall be new and in current manufacture, unless otherwise specified, and all goods and work shall be of good quality, free from faults and defects and in conformance with the Contract Documents. All goods and work not conforming to these requirements shall be considered defective. Goods shall be subject to inspection and testing by the City. Defective goods or goods not in current manufacture may be returned to the Contractor at the Contractor's expense. Correction of Work. The Contractor shall promptly correct all Work rejected by the City as defective or as failing to conform to the Contract Documents whether observed before or after Substantial Completion of the Project and whether or not fabricated, installed or completed. The Contractor shall bear all costs of correcting such rejected Work. 4 G:\PROJECTS~O05\11 FishPoint Faidawn\Correspondence\STANDARD CONTRACT INSITUFORM.doc If, within one (1) year after the Date of Substantial Completion of the Project or designated portion thereof or within one (1) year after acceptance by the City of designated equipment, or within such longer period of time as may be prescribed by law or by the terms of any applicable special warranty required by the Contract Documents, any of the Work is found to be defective or not in accordance with the Contract Documents, the Contractor shall correct it promptly after receipt of a written notice from the City to do so unless the City has previously given the Contractor a written acceptance of such condition. This obligation shall survive both final payment for the Work or designated portion thereof and termination of the Contract. The City shall give such notice promptly after discovery of the condition. . City's R~oht to Carry Out the Work. If the Contractor defaults or neglects to carry out the Work in accordance with the Contract Documents or fails to perform any provision of the Contract, the City may, after seven (7) days written notice to the Contractor and without prejudice to any other remedy the City may have, make good such deficiencies. In such case an appropriate Change Order shall be issued deducting from the payment then or thereafter due the Contractor the cost of correcting such deficiencies. If the payments then or thereafter due the Contractor are not sufficient to cover such amount, the Contractor shall pay the difference to the City. . Change Orders. The Contract Sum may be changed only by written Change Order approved by the City Council. The cost or credit to the City resulting from a Change Order shall be determined in one of the following manners: (1) by mutual acceptance of a lump sum; or (2) by unit prices stated in the Contract Documents as subsequently agreed upon. Any request for Change Order must be certified as true, correct and accurate by the maker to avoid fraudulent requests. . Unauthorized Work. Additional Work performed without authorization of a Change Order will not entitle Contractor to an increase in the Contract Price or an extension of the Contract Time. . Termination. If the Contractor persistently or repeatedly refuses or fails, except in cases for which extension of time is provided, to supply enough properly skilled workers or proper materials, or fails to make prompt payment to subcontractors or for materials or labor or persistently disregards laws, ordinances, rules, regulations or orders of any public authority having jurisdiction, or other wise is guilty of a substantial violation of a provision of the Contract Documents, and fails within seven (7) days after receipt of written notice to commence and continue correction of such default, neglect or violation with diligence and promptness, the City may, without prejudice to any other remedy the City may have, terminate the employment of the Contractor and take possession of the site and of all materials, equipment, tools, construction equipment and machinery thereon owned by the Contractor and may finish the Work by whatever methods the City may deem expedient. In such case the Contractor shall not be entitled to receive any further payment until the Work is finished. 10. Prompt Payment to Subcontractors. The Contractor shall pay any subcontractor within ten (10) days of the Contractor's receipt of payment by the City for undisputed services provided by the subcontractor. If the Contractor fails within, that time to pay the subcontractor any undisputed amount for which the Contractor has received payment by the City, the Contractor shall pay interest to the subcontractor on the unpaid amount at the rate of one and one-half percent (1.5%) per month or any part of a month. The minimum monthly interest penalty 5 G:\PROJECTS~2005\11 FishPoint Fairlawn\Correspondence\STANDARD CONTRACT INSITUFORM.doc 11. 12. payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual interest penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties form the Contractor shall be awarded its costs and disbursements, including attorney's fees, incurred in bringing the action. The Contractor shall, by an appropriate agreement with each subcontractor, require each subcontractor to make payments to his subcontractors in a similar manner. Independent Contractor. At all times and for all purposes hereunder, the Contractor is an independent contractor, and not an employee of the City. Affirmative Action Policy. All Contractors and subcontractors employed shall comply with all applicable provisions of all federal, state and municipal laws which prohibit discrimination in employment on the basis of race, color, religion, sex, marital status, national origin, ancestry, age, and physical or mental handicap and all rules and regulations, promulgated and adopted pursuant thereto. The Contractor will include a similar provision in all subcontracts entered into for the performance of this contract. 13. Miscellaneous. a. This Contract shall become effective only upon its execution by both the City and the Contractor. This Contract shall not be modified, amended, rescinded, waived or terminated without the approval in writing of the City Council. b. The City shall be allowed to audit Contractor's books and records during regular business hours upon five (5) days written notice. c. This Agreement shall be governed by the laws of the State of Minnesota. d. That with respect to any and all businesses conducted or acts performed pursuant to this Agreement, the Contractor shall be deemed an employer. 6 G:\PROJECTS~2005\11 FishPoint Fairlawn\Correspondence\STANDARD CONTRACT INSITUFORM.doc IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date and year hereinabove first written. CITY OF PRIOR LAKE CONTRACTOR By: By: By: Jack Haugen, Mayor Frank Boyles, City Manager Insituform Technologies Its: STATE OF MINNESOTA COUNTY OF SCOTT The foregoing instrument was acknowledged before me this day of ! 2005, by Jack Haugen and Frank Boyles, respectively the Mayor and City Manager of the City of Prior Lake, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public STATE OF MINNESOTA COUNTY OF SCOTT The foregoing instrument was acknowledged before me this 2005, by , the on its behalf, Contractor. day of Notary Public 7 G:\PROJECTS~005\11 FishPoint Fairlawn\Correspondence\STANDARD CONTRACT INSITUFORM.doc