HomeMy WebLinkAbout9D - Dance RFP
CITY COUNCIL AGENDA REPORT
April?, 2003 (\'\~
;?ank Boyles, City Manager ~
AGENDA ITEM: CONSIDER APPROVAL OF A REQUEST FOR BIDS FOR OPERATION OF
THE DANCE PROGRAM.
DISCUSSION: History: The City Council received a report regarding the operation of the dance
program at its March 3, 2003 regular meeting. At its March 17th meeting, the
Council conducted a public hearing to receive input about how the program
should be operated in the future to assure its continued success. About 25
persons attended the public hearing. Virtually all of them supported the concept to
privatize the operation of the dance program. The City Council decided to
privatize the program and directed the staff to prepare a Request for Bids for
Council consideration.
Current Circumstances: Privatization of the dance program means that the new
operation will need to enter into two agreements with the City. The first is a
contract which sets standards for operation of the program. The contract is
intended to assure that the type, variety and quality of the class offerings continue
to assure a successful dance program. The second agreement is a lease to rent
the dance studio for three years with a potential three year extension. Both
agreements are prepared and executed after the bid is awarded through the
bidding process.
Attached is a Request for Bids prepared by the City Attorney. The Request for
Bids provides for lease of the dance studio for three years with the option to
extend the lease for an additional three years subject to negotiation. Numerous
safeguards are contained in the Request for Bid document. The document seeks
to assure that no matter who operates the program, the type, quantity and quality
of the classes offered are equivalent to or better than what is presently provided.
The contract between the City and successful bidder will set forth these
requirements. The Request for Bids establishes criteria for awarding the contract
for the dance program. Six factors are identified:
· Bidder experience in operating a dance program.
· Bidder experience in operating a business.
· Bidder financial capabilities.
· Bidder business plan.
· Number and variety of classes bidder will initially offer.
· Bidder plans for dance program expansion.
· Amount per square foot bid for dance studio space. A minimum bid
is identified.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 I Fax (952) 447-4245
1:\CQUNCIL\AGNRPTS\2003\DANCE RFP.D~ EQUAL OPPORTUNITY EMPLOYER
The bid process is responsibly expedited so that vendors can prepare their bids
and so that a contract and lease can be executed in the month of May. The
proposed process is as follows:
1. April 7th - City Council approves Request for Bids
2. April 12th - Bid Notice appears in Prior Lake American.
3. April 21 st - Pre-Bid Conference.
4. April 28th - Bids opened.
5. May 5th - City Council considers award of contract / lease.
6. May 30th - Lease and Contract executed.
7. June 1st - Private operation of the Prior Lake dance program
commences.
The staff recommends that oversight for this process be the responsibility of
myself, Sue Walsh, Chris Esser, Suesan Pace, and one Councilmember. Mayor
Haugen has suggested that Councilmember Blomberg serve on this committee
given her role as liaison to the Park Advisory Committee.
Conclusion: The City Council should review the Request for Bids to determine
whether modifications are appropriate. Please pay particular attention to
Paragraph 6, which is intended to protect the integrity of the competitive bidding
process. The Council may also wish to modify the weighting of the evaluation
criteria in Section IV.
ALTERNATIVES: (1) Motion and Second to approve Resolution 03-XX Approving Request for
Bids as submitted or amended and Authorizing Solicitation of Bids.
(2) Take no action and direct staff accordingly.
RECOMMENDED
MOTION: Alternative (1).
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Request for Bids Issued: April 12, 2003
Pre-Bid Conference: April 21, 2003
Bid Due Date: April 28, 2003
City Council Considers Award of Bid: May 5, 2003
For Questions Regarding Frank Boyles, City Manager
these Bid Documents, contact City of Prior lake
16200 Eagle Creek Avenue SE, Prior lake, MN 55372
Ph. 952.447.9801/ E-Mail: fboyles@cityofpriorlake.com
REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
BID NOTICE
The City of Prior Lake is seeking bids from qualified and reputable vendors for operation of a dance program in the
Prior Lake Dance Studio which is located within the City's Library and Resource Center ("building"). The Dance
Studio was planned, constructed and equipped as part of the construction of the Library Resource Center to
accommodate the City's dance program. Sealed bids will be received at the Prior Lake City Hall, 16200 Eagle
Creek Avenue, S.E., Prior Lake, Minnesota, 55372. until 3:00 p.m. on Monday. April 28. 2003, at which time the
bids will be opened and read aloud. All bids must be sealed and marked "Dance Program." Any questions
regarding this Request For Bids must be in writing and received no later than April 21, 2003, and directed to the
attention of Frank Bovles, City Manaqer, Prior Lake Citv Hall, 16200 Eaqle Creek Avenue. S.E., Prior Lake,
Minnesota, 55372. Phone 952-447-9801. Any questions received from Bidders will be answered in writing and
distributed to every individual that the City is aware requested a copy of this Request for Bids.
A pre-bid conference will be held at 2:00 p.m. on Mondav. April 21. 2003 in the City Council Chambers at Prior
Lake Fire Station No.1, 16776 Fish Point Road, Prior Lake, MN 55372.
It is the intent of the City of Prior Lake to enter into a lease agreement for the lease of the Dance studio space and a
contract for the operation of an equal or better Dance program as presently offered by the City of Prior Lake. The
contract and lease term shall be for period of 36 months with an option on the part of the City to subject to cost re-
negotiations extend the term of the contract and lease for an additional three years. The lease shall commence on
June 1, 2003.
The Reauest for Bid documents may be obtained from Kelly Mever. Administrative Assistant to the City
Manaaer at the above referenced address. or bv callina Ms. Meyer directlv at (952) 447.9803. The City of Prior
Lake reserves the right to accept or reject any and all bids and, at the discretion of the City Council, to waive minor
and non-material informalities or irregularities in bids.
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REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
April 7, 2003
TO: QUALIFIED VENDORS
Attached hereto you will find the City of Prior Lake's Request for Bids to operate the Prior Lake Dance Program
commencing on June 1, 2003. The document contains four sections: Introduction and Overview, Elements of Bid,
Proqram Requirements, and Evaluation Criteria. The document also has two attachments as follows: Exhibit I _
Class Offerings and the Exhibit /I - Bid Sheet.
The complete bids with accompanying documents and a Bid Bond must be received no later than 3:00 p.m. on
Monday. April 28. 2003 at the Prior Lake City Hall, 16200 Eagle Creek Avenue, S.E., Prior Lake, Minnesota
55372-1714. There will be a pre-bid conference on Mondav, April 21, 2003 at 2:00 p.m. in the Council Chamber at
Prior Lake Fire Station No.1, 16776 Fish Point Road, Prior Lake, MN 55372.
We encourage you to submit a bid for the operation of the dance program and lease of the dance studio space. If
you have questions, please feel free to contact me at (952) 447-9801.
Thank You,
Frank Boyles, City Manager
2
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Section 1
INTRODUCTION AND OVERVIEW
For Questions Regarding Frank Boyles, City Manager
these Bid Documents, contact City of Prior Lake
16200 Eagle Creek Avenue SE, Prior Lake, MN 55372
Ph. 952.447.9801/ E-Mail: fboyles@cityofpriorlake.com
REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
SECTION I. INTRODUCTION AND OVERVIEW
1. REQUEST FOR BIDS. The City of Prior Lake is soliciting sealed bids from qualified and responsible Bidders
to operate a Dance Program. Sealed bids will be received at the Prior Lake City Hall, 16200 Eagle Creek Avenue,
S.E., Prior Lake, Minnesota 55372-1714, until 3:00 p.m. on April 28, 2003. All bids must be sealed and marked
"Dance Program." Any questions regarding the Requests for Bids must be in writing and addressed to Frank
Boyles, Prior Lake City Manager, Prior Lake City Hall, 16200 Eagle Creek Avenue, Prior Lake, Minnesota 55372-
1714. Questions or requests for clarification of the bid documents shall be received by April 21 , 2003. All questions
will be responded to in writing and each Bidder who has requested a bid package will be provided with a copy of the
question asked and the City's response. Bid documents may be obtained from Kelly Meyer, Administrative
Assistant, at the above-referenced address, by telephone at 952.447.9803, or bye-mail to
kmeyer@cityofpriorlake.com.
2. BACKROUND OF PRIOR LAKE DANCE PROGRAM. Since 1982, the City of Prior Lake has offered a
dance program as part of its recreation program offerings. In 1982 the dance program began with 17 students and
by 2002 the program had grown to 434 students. To date the City, through its Recreation Department, has
operated the program; the City has retained the instructors and provided staff support. In the 21 years that the
program has operated it has grown considerably and today enjoys enthusiastic support from the community. The
City anticipates that the dance program will continue to enjoy growth and community support. By the year 2007
enrollment in dance programs is expected to reach 650 participants. The City now desires to contract with a private
sector individual or entity to own and operate the Prior Lake dance program with the caveat that the dance program
must remain at its present location in the Library and Resource Center.
3. CONTENTS OF BID DOCUMENTS. This Request for Bids describes the information required from all
Bidders and the criteria the City will use in making its decision. It also describes the contractual terms and
requirements the successful Bidder will be required to conform with. Following the selection by the City Council of
the successful Bidder, the successful Bidder will be required to enter into the City's standardized Contract for the
Purchase of Services, which will be modified for the Dance Program. The successful Bidder will also be required to
enter into a Lease Agreement to operate the Dance Program in the dance studio, located in the City's Library and
Resource Center.
4. PRE-BID CONFERENCE. A pre-bid conference will be held on April 21, 2003 at 2:00 p.m. at in the Council
Chambers which are located in the Prior Lake Fire Station No.1, 16776 Fish Point Road, Prior Lake, Minnesota,
55372. The purpose of the pre-bid conference is to answer questions relating to the bid documents and also
questions about the City's expectations for the continued operation of the Dance Program. All prospective Bidders
are strongly urged to attend. The City will not provide a summary of the questions and answers from the pre-bid
conference.
5. SUBMISSION OF BIDS. All Bidders shall fully familiarize themselves with the City's Request for Bids.
Bidders will be deemed to acknowledge their familiarity with the entire Request for Bids packet by virtue of
submitting a bid. Written Addendum will be issued in response to appropriate written questions or requests for
clarifications that seek to clarify any material provision in the bid documents and are received on or before April 21,
2003. In no event shall a Bidder rely on any oral interpretation or representation of City staff in preparing their bid.
5.11f bids are sent by mail, it is the Bidder's sole responsibility to assure that the City receives the bid by the
date, time and at the location specified herein.
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REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
5.2The City reserves the right to cancel this Request for Bids or postpone the date and time for submitting bids
at any time prior to the submittal date and time. The City reserves the right prior to the date for submission
of bids to modify, in whole or part, any portion of this Request for Bids. Each Bidder who has requested a
copy of the bid documents shall be notified in writing of any modification to the Request for Bids by Ms.
Meyer. This Request for Bids does not obligate the City to enter into a contract to operate the dance
program. Further, the City reserves the right to reject any and all bids, to reissue a revised Request for
Bids and to waive any non-material informalities or irregularities in bids. A non-material irregularly or
informality is one where no Bidder will be prejudiced if an informality or irregularity is waived. The ability to
waive an informality or irregularity lies solely with the City Council upon a finding by the Council that the
waiver will not materially prejudice any Bidder.
6. CONTACTS WITH MEMBERS OF THE CITY COUNCIL. The City Council desires to make a decision which
is in the best interest of the Prior Lake Dance Program and Prior Lake taxpayers. From the comments received at
the March 17, 2003 public hearing, it is apparent that the public has preferences on whom the provider should be.
In order to facilitate an objective decision and to protect the integrity of the process, no Bidder or individual on
behalf of a Bidder shall contact any member of the City Council to discuss the Request for Bids.
7. ALL BIDS MUST BE COMPLETE. In addition to all other provisions set out herein, this Section contains the
bid requirements for this Request for Bids. Bidders must respond fully and completely to each requirement and
request for information to be considered responsive to this Request for Bids. Failure to provide information
requested in this Request for Bids shall deem the bid to be rejected from consideration and non-responsive.
7.1 SUBMISSION OF BID. Each Bidder shall submit an original and nine (9) copies of its bid.
7.2BID BOND. Each Bidder shall include a Bid Bond in the amount of Three Thousand Dollars ($3000.00.)
The Bid Bond shall be forfeited by the successful Bidder, if after the selection by the City Council, the
Bidder fails to enter into the City's Standardized Contract for Service and a Lease Agreement. The Bid
Bond shall also be forfeited if the Bidder withdraws its bid after bids are open.
8. QUALIFIED AND RESPONSIBLE BIDDER AND RESPONSIVE BID. In order for a bid to be considered, the
Bidder must be found to be a qualified and responsible Bidder and the Bidder's bid must be found to be responsive
to the Request for Bids. The term "qualified Bidder" means the Bidder has:
a. Provided the same or similar services in a satisfactory manner. Same or similar services means the
operation of a dance program similar to the City of Prior Lake's present dance program. (See Exhibit 1)
b. Demonstrated financial capability to operate a dance program as described herein.
c. Demonstrated managerial experience and capabilities to adequately operate and manage a dance
studio and dance classes.
d. Each Bidder must submit three (3) references. The references must be able to attest to the Bidders
experience and capabilities. The Bidder shall provide the name, address and telephone number of
each reference.
e. The Bidder must be willing to enter into a modified version of the City's Standard Contract Between
City and Contractor, attached hereto as Exhibit 2.
f. The Bidder must be willing and financially able to enter into a mofified version of the City's
Standardized Lease Agreement
9. DATA PRACTICES ACT. Any bid submitted to the City is subject to the Minnesota Government Data
Practices Act, Minnesota Statutes Chapter 13.
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REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
9.1 Data submitted by a business to a government entity in response to a Request for Bids as defined in
seciton16C.02, subdivision 11, are private or non public until the bids are opened. Once the bids are
opened, the name of the Bidder and the dollar amount specified in the response are read and become
public. All other data in the Bidder's response to a bid are private or nonpublic data until completion of the
selection process. For purposes of this section, "completion of the selection process" means that the
government entity has completed its evaluation and has ranked the responses. After a government entity
has completed the selection process, all remaining data submitted to all Bidders are public with the
exception of trade secret data as defined and classified in seciton13.37. A statement by a Bidder that
submitted data are copyrighted or otherwise protected does not prevent public access to the data contained
in the bid.
9.21f all responses to a request for bids are rejected prior to completion of the selection process, all data, other
than that made public at the bid opening, remain private or non public until a re-solicitation of bids results in
completion of the selection process or a determination is made to abandon the purchase. If the rejection
occurs after the completion of the selection process, the data remain public. If a re-solicitation of bids does
not occur within one year of the bid opening date, the remaining data becomes public.
5
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Section II
ELEMENTS OF BID
For Questions Regarding Frank Boyles, City Manager
these Bid Documents, contact City of Prior Lake
16200 Eagle Creek Avenue SE, Prior Lake, MN 55372
Ph. 952.447.9801/ E-Mail: fboyles@cityofpriorlake.com
REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
SECTION II. ELEMENTS OF BID
Section II of this Request for Bids describes the information each bid must contain. The format of the bid must
follow the numeric order set out below. Each bid must address the following:
1. EXPERIENCE The Bidder should describe their experience operating a dance studio or program. A
responsible Bidder is an individual or entity which has experience operating a dance program that is similar in size
and class offerings as the City's present dance program and has responsibility for all aspects of the operation.
Exhibit 1 to this Request for Bids contains a description of the City's present dance program offerings, the number
and range of classes offered and the number of instructors.
2. EXPERIENCE OPERATING A BUSINESS. The Bidder should describe their experience in operating a
business. If the Bidder has not operated a business before, identify the individuals to be used to provide legal,
accounting, tax and insurance services in connection with the operation of the Dance Program.
3. FINANCIAL CAPABILITIES. The success of any business depends on the owner having the financial
resources necessary to operate the business and provide for unforeseen contingencies that may arise.
Demonstrate that the Bidder has the financial resources required to operate a dance studio; including but not limited
to: paying the monthly lease and expense payments to the City, paying instructors, paying for dance recital
programs and costumes, providing for insurance required pursuant to the City's standardized contract, paying for
general operating expenses. A letter from a bank or accountant is one means to demonstrate that the Bidder has
the financial capability to operate the dance studio and program. A Bidder may also provide a Letter of Credit, in
the amount of one (1) year's lease payments, as evidence that the successful Bidder can meet its financial
responsibilities.
5. NO CITY SUPPORT. The successful bid must contain an affirmative statement by the vendor
acknowledging that no financial or staff support for the operation of the dance program or maintenance of the dance
studio will be provided by the City.
6. BUSINESS PLAN. Provide a copy of Bidder's business plan for operating the dance program and dance
studio. At a minimum the business plan should address:
· Class offerings including class size, age groups, student - teacher ratio, criteria for measuring
success.
· Marketing Plan
· Instructor job descriptions and minimum requirements.
· Personnel guidelines
· Financials
· Profit and Loss Projections
· Plans for Dance Program Development and Growth.
7. LEASE AND RENT. The successful Bidder must agree to enter into a three (3) year lease for the rental of
the dance studio space. The lease may be renewed for an additional three (3) year period if the Lessee has
complied with all of the terms and conditions of the lease during its initial three (3) year term. The dance program
must continue to operate from the existing 4634 square foot space within the Prior Lake Library and Resource
Center.
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REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
8. MINIMUM BID. One element the City will use in evaluating the bids will be the cost per square foot bid.
The minimum acceptable cost per square foot shall be $11.00 per square foot per annum, or $50,974 per year.
9. .PAYMENT OF LIBRARY AND RESOURCE CENTER OPERATING EXPENSES. The Bidder will be
responsible for paying the dance studio's pro-rata share of the operating costs of the Library and Resource Center,
any applicable taxes and maintenance and upkeep of the dance studio area. The dance studio will not be permitted
to use the basement for any purpose. The estimated pro-rata share of the operating costs is 26% or Fourteen
Thousand Three Hundred dollars ($14,300.00) per year which includes custodial services (3 times per week) and
refuse (use of City Hall dumpster), heating and other utilities. The amount of the operating expenses may be
adjusted annually to reflect inflation and any need for additional services. The Bidder shall also be responsible for
maintenance costs listed at 9.1 and 9.2 below.
9.1 WEAR AND TEAR. The City shall have the right to inspect the dance studio at reasonable times. If the
dance studio is found in need of repair the City may require the successful Bidder to make said repairs.
9.2MAINTENANCE OF DANCE STUDIO FLOOR. The wooden floor in the dance studio requires biennial
maintenance, which includes stripping, sanding and refurbishing the wooden floor. Maintenance of the
wooden floor shall be the sole expense of the operator of the dance studio (Bidder).
10. SECURITY DEPOSIT. The successful Bidder will be required to provide a security deposit at the time of
signing the lease. The security deposit will include security for the lease payments as well as security to assure the
maintenance and upkeep of the leased space; including the annual refurbishment of the dance studio floor. The
security deposit will cover the first and last months rent plus a sum sufficient to assure maintenance of the dance
studio (leased space) as provided in Paragraph 9 above.
11. CITY USE OF DANCE STUDIO. The City may use the dance studio during non-business hours for
meeting purposes and to conduct special events. The City will be responsible for routine cleaning and refuse
disposal after each use.
7
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Section III
PROGRAM REQUIREMENTS
For Questions Regarding Frank Boyles, City Manager
these Bid Documents, contact: City of Prior Lake
16200 Eagle Creek Avenue SE, Prior Lake, MN 55372
Ph. 952.447.9801/ E-Mail: fboyles@cityofpriorlake.com
REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
SECTION III. PROGRAM REQUIREMENTS
1. DANCE PROGRAM. The dance program must provide, at a minimum, the same level, variety and number
of classes currently provided by the City's Dance Program. Please refer to Exhibit 1. Each Bidder should describe
in detail the programs the dance studio will immediately offer and any plans for expanding program offerings. The
number, type and variety of classes will be a factor in the City's evaluation of the bids received. All or a majority of
the programs offered by the dance studio must be operated from the dance studio space in the Library and
Resource Center.
1.1 INSTRUCTORS. The dance studio must employ the same number of instructors as the City's present
Dance Program provides. All instructors shall have equivalent experience to the current instructors. The
operator must conduct appropriate background investigations on each employee and instructor.
1.2ADVERTISING AND ANNOUNCEMENTS. The dance studio owner may purchase space in the City Wave
Length to advertise classes and communicate about special events.
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Section IV
EVALUATION CRITERIA
For Questions Regarding Frank Boyles, City Manager
these Bid Documents, contact City of Prior Lake
16200 Eagle Creek Avenue SE, Prior Lake, MN 55372
Ph. 952.447.9801/ E-Mail: fboyles@cityofpriorlake.com
REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
SECTION IV. EVALUATION CRITERIA
The City will use a number of criteria for selecting the best and most responsive and responsible Bidder. The cost
per square foot per year bid for the lease of the dance studio space shall not be the sole determining factor;
although cost bid per square foot will be a significant factor. In evaluating bids the City will consider the criteria
listed below. The criteria are given a weighted point factor for purposes of evaluating and ranking the bids.
Evaluation Criteria
1. Experience of Bidder in operating a dance studio or
ro ram.
2. Bidder's ex erience 0 eratin a business.
3. Bidder's financial capabilities.
4. Bidder's business plan.
5. Number and variety of dance classes Bidder will
rovide.
6. Bidder's plans for the expansion of the dance
pro ram.
7. Amount er s uare foot bid for space.
Wei ht in percenta e)
20%
5%
15%
5%
10%
5%
40%
9
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REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
BID SHEET
SUBMITTED BY:
PHONE:
ADDRESS:
E-Mail:
1. Experience of Bidder in operation a dance studio or program.
2. Bidder's experience operating a business.
10
REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
SUBMITTED BY:
PHONE:
ADDRESS:
Page of
3. Bidder's financial capabilities.
4. Business Plan.
5. Number and Variety of Dance Classes to be Provided.
11
REQUEST FOR BIDS
Operation of Prior Lake Dance Program
April 7, 2003
SUBMITTED BY:
ADDRESS:
PHONE:
f'age of
6. Plan for Expansion of the Dance Program.
7. Bid Proposal for 3-Year Lease of 4634 sq.ft. Dance Studio:
Year 1: June 1,2003 through May 30,2004
=
$
$
$
per sq. ft. per annum
per sq. ft. per annum
Year 2: June 1, 2004 through May 30, 2005
Year 3: June 1, 2005 through May 30, 2006
=
per sq. ft. per annum
=
8. A Bid Bond MUST BE ATTACHED in the amount of $3000.
9. References. (Include Name, Address, Telephone number(s), and relationship to Bidder)
12
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EXHIBIT I
For Questions Regarding Frank Boyles, City Manager
these Bid Documents, contact City of Prior Lake
16200 Eagle Creek Avenue SE, Prior Lake, MN 55372
Ph. 952.447.9801/ E-Mail: fboyJes@cityofpriorlake.com
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EXHIBIT II
For Questions Regarding Frank Boyles, City Manager
these Bid Documents, contact City of Prior Lake
16200 Eagle Creek Avenue SE, Prior Lake, MN 55372
Ph. 952.447.9801/ E-Mail: fboyles@cityofprior1ake.com
STANDARD CONTRACT BETWEEN
THE CITY AND CONTRACTOR
THIS AGREEMENT made this day of , 20_, by and between the CITY OF
PRIOR LAKE, a Minnesota municipal corporation (hereinafter the "City') and
(hereinafter the "Contractor).
Purpose: The City Council has determined that the City should
in accordance with the Plans and Specifications dated
notification and bidding process, the City Council has awarded bid to
by Resolution , subject to entering into this contract.
. After completing the
The City and Contractor for the consideration stated below, agree as follows:
1. 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
in accordance with the City's
Plans and Specifications.
2. 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
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
3. The Proiect (IIWork'1. The Contractor shall perform all of the Work required by the Contract Documents
for the sum of and /100 Dollars
($ ).
4. 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
a. Startino 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
Created on 2/19/2003 2:47 PM
Page 1 of 6
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.
b. Timelv 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.
5. 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.
6. 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.
7. 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.
c. 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.
f. 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.
9. 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 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.
The Contractor shall post bonds to secure the warranties.
10. 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.
11. 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:
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:
City of Prior Lake
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372
12. 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.
13. 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
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.
14. City's Riaht 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.
15. Chanae 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.
16. 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.
17. 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.
18. 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 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.
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 Policv. 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
Its:
By:
Frank Boyles, City Manager
STATE OF MINNESOTA )
)ss.
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.
Notary Public
STATE OF MINNESOTA )
)ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this
the
day of
, 20_, by
of
, on
, a
behalf, Contractor.
Notary Public