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HomeMy WebLinkAbout05(D) - Receive Bids and Award Contract – South Water Tower reconditioning project (CP 2020-25) Report 1 | Page 1976 Wooddale Drive, Suite 4 | Woodbury, MN 55125 Phone (651) 773-5111 | Fax (651) 773-5222 November 23, 2020 Andy Brotzler, P.E. by Email Public Works Director / City Engineer City of Prior Lake Maintenance Center 17073 Adelmann Street SE Prior Lake, MN 55372 RE: Bid evaluation for Cleaning, Repairing & Painting of the 750,000-Gallon Elevated Reservoir – South Tower for the City of Prior Lake, MN. City Project No. 2020-25, KLM Project No. MN1493. Mr. Brotzler, The project bid opening was held on Friday, November 20, 2020 at 10:00 AM CST at City of Prior Lake’s Maintenance Center with City staff. Bids received were as follows: Bidders Total Base Bid Viking Painting, LLC $789,300.00 Classic Protective Coatings, Inc. $817,958.00 G & L Sandblasting & Coatings, LLC $832,600.00 J.R. Stelzer, Co. $919,200.00 The Osseo Construction Co. LLC $924,250.00 TMI Coatings, Inc. $1,087,000.00 In review of the documentation provided by each of the bidders, all bidders meet the qualifications of the specifications and are considered responsible bidders eligible for award of this project. KLM recommends awarding the contract to the lowest bidder, Viking Painting, LLC, for the total amount of $789,300.00. Please feel free to contact me with any questions. Sincerely, KLM Engineering Inc. Jerry Tell, P.E. S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 1 of 12 Standard Contract Materials and Labor South Water Tower Reconditioning Project (CP 2020-25) This agreement (“Agreement”) is between the City of Prior Lake, Minnesota ("City"), whose business address is 4646 Dakota Street SE, Prior Lake, MN 55372, and Viking Painting, LLC, a __________________________________________ ("Contractor") whose business address is ___________________________________________________________________. Based on the mutual promises and covenants set forth herein, the sufficiency of which are hereby acknowledged, the City and Contractor agree as follows: 1. Agreement. This document, any attached exhibits and the following listed documents shall hereinafter be referred to collectively as the “Agreement”, 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: • This contract document • City’s Advertisements for Bids dated October 31 and November 7, 2020 • City’s Plans and Specifications • Proposal submitted by Contractor and on file in the office of the City Engineer • Performance Bond and Payment Bond • Insurance Certificate(s) The Contractor agrees to provide, perform and complete all the materials and services in accordance with the terms of this Agreement and attached Exhibit A (“Work”). If there is any dispute between the documents, the documents shall govern in the above listed order with this contract document superseding all other documents. 2. Effective Date and Term of Agreement. This Agreement shall become effective as of December 7, 2020. The Work shall be completed by July 31, 2021. 3. 4. Compensation for Services. City agrees to pay the Contractor a fixed sum of $789,300 as full and complete payment for the Work (“Contract Price”). A. Any changes in the scope of the Work which may result in an increase to the compensation due the Contractor shall require prior written approval by an authorized representative of the City or by the City Council. The City will not pay additional compensation for services or materials that do not have prior written authorization. B. If Contractor is delayed in performance due to any cause beyond its reasonable control, including but not limited to strikes, riots, fires, acts of God, governmental actions, actions of a third party, or actions or inactions of City, the time for performance shall be extended by the period of time lost by reason of the delay. Contractor will be entitled to payment for its reasonable additional charges, if any, due to the delay. 5. Method of Payment. Contractor shall prepare and submit to City, on a monthly basis, itemized invoices setting forth work performed and the payments requested under this Agreement. Contractor shall provide an itemized listing of all expenses and such other documentation as reasonably required by the City. Each invoice shall contain the City’s S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 2 of 12 project number and a progress summary showing the current billing, past payments and unexpended balance of the Contract Price. Invoices submitted shall be paid in the same manner as other claims made to the City. A. Claims. In compliance with Minn. Stat. 471.38, by making a claim for payment, Contractor is declaring that the account, claim, or demand is just and correct and that no part of it has been paid. B. Final Payment. Final payment, constituting the entire unpaid balance of the Contract Price shall be paid by the City to the Contractor when the Work has been completed, this Agreement fully performed, and the City accepts the Work in writing. No final payment shall be made to the Contractor until the Contractor has provided all of the following: i. Contractor’s affidavit that all payrolls, bills for materials and equipment, and other indebtedness connected with the Work for which the City or its property might in any way be responsible, have been paid or otherwise satisfied. ii. A general lien waiver and lien waivers from all subcontractors waiving liens related to the Work. iii. A certificate by the Commissioner of Revenue stating that the Contractor and each of its subcontracts has complied with the provisions of Minn. Stat. 290.92 relating to withholding of income taxes upon wages. C. Waiver of Claims. The Contractor’s 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. 6. Compliance with Laws and Regulations. In providing the Work, the Contractor shall abide by all statutes, ordinances, rules, and regulations pertaining to the Work. Any violation of statutes, ordinances, rules and regulations pertaining to the Work shall constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. 7. Contractor’s Employees. Contractor and its employees, representatives and agents shall comply with all City policies (no smoking, parking location, check in, sign it, etc.). Contractor and its employees, representatives and agents shall use care, coordination and communication in order to ensure City employees and guests are not disturbed or inconvenienced. Contractor’s employees, representatives and agents shall be neat appearing and at City’s request wear an identification badge approved by the City. Contractor must honor the City’s request to reassign an employee, representative or agent whom the City determines is unsuitable for the Work. When necessary, Contractor’s employees, representatives and agents will be provided with keys or access cards in order to perform their work. Any lost keys or cards that result in rekeying a space or other cost to the City will be billed back to the Contractor. The City shall have the right to perform or require to be performed criminal background checks on any employee, representative or agent of the Contractor who will perform any aspect of the Work. The Contractor shall cooperate with the City in the performance of all such criminal background checks. 8. Contractor’s Representative. Contractor has designated a project representative to coordinate with the City and manage the Work. The project representative shall be assisted by other staff members as necessary to facilitate the completion of the Work in accordance with the terms of this Agreement. Contractor may not remove or replace the project representative without the approval of the City. S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 3 of 12 9. Standard of Care. Contractor shall exercise the same degree of care, skill and diligence in the performance of the Work as is ordinarily exercised by members of the profession under similar circumstances in Scott County, Minnesota. Contractor shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss, or damages proximately caused by Contractor's breach of this standard of care. Contractor shall put forth reasonable efforts to complete the Work in a timely manner. Contractor shall not be responsible for delays caused by factors beyond its control or that could not be reasonably foreseen at the time of execution of this Agreement. Contractor shall be responsible for costs, delays or damages arising from unreasonable delays in the performance of the Work. 10. Responsible Contractor. Contractor warrants under oath that Contractor is in compliance with the minimum criteria required of a “responsible contractor” as that term is defined in Minn. Stat. 16C.285, Subd. 3. Contractor has provided to City a list of all of its first-tier subcontractors and motor carriers that it intends to retain for the Work. The Contractor has obtained from all subcontractors and motor carriers with which it will have a direct contractual relationship a signed statement under oath by an owner or officer verifying that the subcontractor or motor carrier meets all of the minimum criteria in Minn. Stat. 16C.285, Subd. 3. If Contractor retains additional subcontractors or motor carriers for the Work after submitting its verification of compliance, the Contractor shall obtain verification of compliance from each additional subcontractor and motor carrier with which it has a direct contractual relationship and shall submit to the City a supplemental verification confirming the subcontractor’s and motor carrier’s compliance with Minn. Stat. 16C.285, Subd. 3, clause (7), within fourteen days of retaining the additional subcontractors or motor carriers. Contractor shall submit to the City upon request copies of the signed verifications of compliance from all subcontractors and motor carriers of any tier pursuant to Minn. Stat. 16C.285, subd. 3, clause (7). A false statement under oath, by Contractor, subcontractor, or motor carrier, verifying compliance with any of the minimum criteria may result in termination of this Agreement. 11. Subcontractor. The Contractor shall bind every subcontractor and every subcontractor shall agree to be bound by the terms of this Agreement, unless specifically noted to the contrary in a subcontract approved in writing by the City. The Contractor shall pay any subcontractor involved in the performance of this Agreement within ten 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 1.5 percent per month or any part of a month. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, 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 attorney's fees, incurred in bringing the action. 12. City’s Obligations. City will provide access to public and private property as necessary for Contractor to perform the Work. City shall give thorough consideration to all reports, sketches, estimates, drawings, and other documents presented by the Contractor, and shall inform the Contractor of all decisions required of City within a reasonable time so as not to delay the Work. The City shall furnish the Contractor with a copy of any applicable policy, standard or criteria, including but not limited to, design and construction standards, that may be required for the Work. S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 4 of 12 13. City's Representative. City has designated a project representative with respect to the Work. He or she shall have authority to transmit instructions, receive information, and interpret the City's policy and decisions with respect to the Work. 14. Ownership of Documents. All plans, diagrams, analyses, reports and information generated in connection with the performance of this Agreement (“Information”) shall become the property of the City, but Contractor may retain copies of the Information as records of the services provided. The City may use the Information for its purposes and the Contractor also may use the Information for its purposes. Use of the Information for the purposes of the Work does not relieve any liability on the part of the Contractor, but any use of the Information by the City or the Contractor beyond the scope of this Agreement is without liability to the other, and the party using the Information agrees to defend and indemnify the other from any claims or liability resulting therefrom. 15. Condition and Inspection. All materials furnished under this Agreement shall be new and in current manufacture, unless otherwise specified, and all materials and work shall be of good quality, free from faults and defects and in conformance with this Agreement. All materials and work not conforming to these requirements shall be considered defective. Materials shall be subject to inspection and testing by the City. Materials that are defective or not in current manufacture may be returned to the Contractor at the Contractor’s expense. 16. Correction of Work. The Contractor shall promptly correct all work rejected by the City as defective or as failing to conform under this Agreement whether observed before or after completion of the work and whether or not fabricated, installed or completed. The Contractor shall bear all costs of correcting such rejected work. 17. Warranty. The Contractor expressly warrants and guarantees to the City that all work performed and all materials furnished shall be in accord with this Agreement and shall be free from defects in materials, workmanship, and operation which appear within a period of one year, or within such longer period as may be prescribed by law or in the terms of this Agreement, from the date of City’s written 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 Agreement, at law or in equity. Should any defects develop in the materials, workmanship or operation of the Work within the specified period, upon notice from the City, the Contractor agrees, within ten 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 S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 5 of 12 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. 18. Performance and Payment Bonds. If the Contract Price is $175,000 or more, the Contractor shall post a Performance and Payment Bond each in an amount equal to one hundred percent of the Contract Price to insure the prompt and faithful performance of this Agreement by Contractor and to insure prompt payment to the subcontractors and suppliers of the Contractor. The Bonds shall be in compliance with Minn. Stat. 574.26 and in a form approved by the City. Contractor shall provide the Bonds to the City before commencing work. If the Performance and/or Payment Bond are not submitted as provided herein, this Agreement shall be considered void. 19. Private Property. The Contractor shall not enter upon private property for any purpose without having previously obtained permission from the City. The Contractor shall be responsible for the preservation of and shall use every precaution to prevent damage to all trees, shrubbery, plants, lawns, fences, culverts, bridges, pavements, driveways, sidewalks, etc.; all water, sewer and gas lines; all conduits; all overhead pole lines or appurtenances thereof; and all other public or private property along or adjacent to the Work. 20. Removal of Construction Equipment, Tools and Supplies. At the termination of this Agreement, before acceptance of the Work by the City, the Contractor shall remove all of Contractor’s equipment, tools and supplies from the property of the City. Should the Contractor fail to remove such equipment, tools and supplies, the City shall have the right to remove them and deduct the cost of removal and disposal from any amount owed to Contractor. 21. Insurance. Prior to starting the Work, Contractor shall procure, maintain and pay for such insurance as will protect Contractor and City against claims or loss which may arise out of operations by Contractor or by any subcontractor or by anyone employed by any of them or by anyone for whose acts any of them may be liable. Contractor agrees to maintain all coverage required herein throughout the term of this Agreement and for a minimum of two years following City’s written acceptance of the Work. A. Such insurance shall include, but not be limited to, the following minimum coverages and limits of liability: i. Commercial General Liability Insurance. Commercial General Liability Insurance protecting Contractor and City from claims for damages for bodily injury, including death, and from claims for property damage, which may arise from operations under this Agreement. The Commercial General Liability Policy shall be on ISO form CG 00 01 12 07 or CG 00 01 04 13, or the equivalent. Such insurance shall cover liability arising from premises, operations, independent contractors, products- completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). There shall be no endorsement or modification of the Commercial General Liability form arising from pollution, explosion, collapse, underground property damage or work performed by subcontractors. The City, including its elected and appointed officials, employees, and agents, must be endorsed as an Additional Insured using ISO Form CG 20 10 or equivalent for Ongoing Operations and ISO S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 6 of 12 Form CG 20 37 or equivalent for Products/Completed Operations. Insurance minimum limits are as follows: • $1,000,000 – per occurrence • $2,000,000 – annual aggregate • $2,000,000 – annual aggregate – Products/Completed Operations ii. Workers’ Compensation Insurance. Workers’ Compensation Insurance for all Contractor’s employees in accordance with the statutory requirements of the State of Minnesota. The Contractor shall also provide Employer’s Liability Insurance with minimum limits as follows: • $500,000 – Bodily Injury by Disease per employee • $500,000 – Bodily Injury by Disease aggregate • $500,000 – Bodily Injury by Accident The Contractor shall maintain “stop gap” coverage if Contractor obtains Workers’ Compensation coverage from any state fund if Employer’s liability coverage is not available. If Minnesota Statutes, Section 176.041 exempts the Contractor from Workers’ Compensation insurance, the Contractor must provide a written statement, signed by an authorized representative, indicating the qualifying exemption that excludes the Contractor from the Minnesota Workers’ Compensation requirements. iii. Business Automobile Liability Insurance. Business Automobile Liability Insurance protecting City and Contractor from claims for damages for bodily injury, including death, and from claims for property damage resulting from the ownership, operation, maintenance or use of all autos which may arise from operations under this Agreement. Insurance minimum limits are as follows: • $1,000,000 – per occurrence Combined Single Limit for Bodily Injury and Property Damage including Owned, Hired, and Non-owned Automobiles. iv. Builders Risk Insurance. Builders Risk (Property) Insurance written on an “all-risk” builders risk basis or equivalent policy form in the amount of the initial Contract Price, plus the value of subsequent modifications and cost of materials supplied or installed by others, comprising the total value for the entire project at the site on a replacement cost basis. This insurance shall include the interests of the City, the Contractor and all subcontractors. B. All of the insurance policies required by this Agreement shall comply with the following: i. The Contractor’s policies, except Worker’s Compensation Insurance, shall be primary insurance and non-contributory to any other valid and collectible insurance available to the City with respect to any claim arising out of the Contractor’s performance under this Agreement including the defense and indemnity obligations assumed by Contractor under this Agreement. ii. An Umbrella or Excess Liability insurance policy may be used to supplement the Contractor’s policy limits to satisfy the full policy limits required by this Agreement. S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 7 of 12 iii. All insurance shall be provided on an occurrence basis and not on a claims-made basis, except professional liability insurance or other coverage not reasonably available on an occurrence basis; provided that all such claims-made coverage is subject to the approval of the City Attorney. iv. Any insurance limits in excess of the minimum limits shall be available to the City. v. All policies, except professional liability, shall be endorsed with a waiver of subrogation in favor of the City, including its elected and appointed officials, employees, and agents for losses arising from activities under this Agreement. vi. It shall be Contractor’s responsibility to pay any retention or deductible for the coverages required. The City may require the Contractor to provide proof of ability to pay losses and related expenses within the deductible and retention. vii. The Contractor is required to submit a Certificate of Insurance acceptable to the City as evidence of the required insurance coverage requirements. viii. The Contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty days’ advanced written notice to the City, or ten days’ written notice for non- payment of premium. ix. The Contractor is responsible to review and ensure all subcontractors comply with the insurance provisions contained herein and said insurance is maintained as specified. x. If the City authorizes the Contractor to be self-insured, a Certificate of Self- Insurance must be attached. xi. The Contractor shall obtain insurance policies from insurance companies having an “AM BEST” rating of A- (minus); Financial Size Category (FSC) VII or better and authorized to do business in the State of Minnesota, or as approved by the City. xii. The City reserves the right to immediately terminate this Agreement if the Contractor is not in compliance with the insurance requirements and retains all rights to pursue any remedies against the Contractor. xiii. All insurance policies must be open to inspection by the City, and copies of policies must be submitted to the City’s authorized representative upon written request. xiv. The City’s failure to approve or disapprove the Contractor’s policies or certificates shall not relieve the Contractor of full responsibility to maintain the required insurance. xv. If the coverage period shown on the Contractor's current certificate of insurance ends during the duration of the project, the Contractor must, prior to the end of the coverage period, obtain a new certificate of insurance showing that coverage has been extended. xvi. No representation is made that the minimum insurance requirements are sufficient to cover the obligations of the Contractor under this Agreement. C. Effect of Contractor’s Failure to Provide Insurance. If Contractor fails to provide the specified insurance, then Contractor will defend, indemnify and hold harmless the City, the City's officials, agents and employees from any loss, claim, liability and expense (including reasonable attorney's fees and expenses of litigation) to the extent necessary to afford the same protection as would have been provided by the specified insurance. Except to the extent prohibited by law, this indemnity applies regardless of any strict liability or negligence attributable to the City (including sole negligence) and regardless of the extent to which the underlying occurrence (i.e., the event giving rise to a claim which would have S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 8 of 12 been covered by the specified insurance) is attributable to the negligent or otherwise wrongful act or omission (including breach of contract) of Contractor, its subcontractors, agents, employees or delegates. Contractor agrees that this indemnity shall be construed and applied in favor of indemnification. Contractor also agrees that if applicable law limits or precludes any aspect of this indemnity, then the indemnity will be considered limited only to the extent necessary to comply with that applicable law. The stated indemnity continues until all applicable statutes of limitation have run. If a claim arises within the scope of the stated indemnity, the City may require Contractor to take one of the following actions within fifteen days of receiving notice from the City.: i. Furnish and pay for a surety bond, satisfactory to the City, guaranteeing performance of the indemnity obligation; or ii. Furnish a written acceptance of tender of defense and indemnity from Contractor's insurance company. 22. Indemnification. Contractor will defend and indemnify City, its officers, agents, and employees and hold them harmless from and against all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney’s fees paid, incurred or for which it may be liable resulting from any breach of this Agreement by Contractor, its agents, representatives, contractors and employees, or any negligent or intentional act or omission performed, taken or not performed or taken by Contractor, its agents, representatives, contractors and employees, relative to this Agreement. City will indemnify and hold Contractor harmless from and against any loss for injuries or damages arising out of the negligent acts of the City, its officers, agents or employees. 23. Suspension of Work by City. The City may at any time suspend the Work, or any part thereof, by giving ten days' notice to the Contractor in writing. The Work shall be resumed by the Contractor within ten days after the date fixed in the written notice from the City to the Contractor to resume. If the City’s suspension of all or part of the Work causes additional expenses not due to the fault or negligence of the Contractor, the City shall reimburse the Contractor for the additional expense incurred due to suspension of the Work. Claims for such compensation, with complete substantiating records, shall be filed with the City within ten days after the date of order to resume Work in order to receive consideration. This paragraph shall not be construed as entitling the Contractor to compensation for delays due to inclement weather, failure to furnish additional surety or sureties specified herein, for suspension made at the request of the Contractor, or for any other delay provided for in this Agreement. 24. City’s Right to Carry Out the Work. If the Contractor defaults or neglects to carry out the Work in accordance with this Agreement or fails to perform any provisions of this Agreement, the City may, after ten 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. 25. City’s Right to Terminate Agreement and Complete the Work. The City has the right to terminate this Agreement for any of the following reasons: A. The Contractor is adjudged bankrupt, makes a general assignment for the benefit of creditors, or becomes insolvent; B. Failure of Contractor to supply adequate properly skilled workers or proper materials; C. Failure of Contractor to make prompt payment to subcontractor for material or labor; S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 9 of 12 D. Any disregard of laws, ordinances or proper instructions of the City; E. Assignment of the Work without permission of the City; F. Abandonment of the Work by Contractor; G. Failure to meet the Work progress schedule set forth in this Agreement; H. Unnecessary delay which, in the judgment of the City, will result in the Work not being completed in the prescribed time. I. Any other failure to comply with the terms of this Agreement. Termination of this Agreement shall be preceded by ten days written notice by the City to the Contractor and its surety stating the grounds for termination and the measures, if any, which must be taken to ensure compliance with this Agreement. This Agreement shall be terminated at the expiration of such ten-day period unless the City shall withdraw its notice of termination. Upon termination of this Agreement by the City, the City may, without prejudice to any other remedy the City may have, 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 at the Contractor’s expense. Upon termination of this Agreement, the Contractor shall not be entitled to receive any further payment until the Work is finished. If the unpaid balance of the Contract Price exceeds the expense of finishing the Work, including compensation for additional managerial and administrative services, the excess shall be paid to the Contractor. If such expense exceeds the unpaid balance, the Contractor shall pay the difference to the City. In the event that the Contractor abandons the Work, fails or refuses to complete the Work or fails to pay just claims for labor or material, the City reserves the right to charge against the Contractor all legal, engineering, or other costs resulting from such abandonment, failure or refusal. Legal costs will include the City's cost of prosecuting or defending any suit in connection with such abandonment, failure or refusal, and non-payment of claims wherein the City is made co-defendant, and the Contractor agrees to pay all costs, including reasonable attorney's fees. 26. Contractor’s Right to Terminate Agreement. The Contractor may terminate this Agreement upon ten days written notice to the City for any of the following reasons: A. If an order of any court or other public authority caused the Work to be stopped or suspended for a period of 90 or more days through no act or fault of the Contractor or its employees. B. If the City should fail to pay any undisputed sum owed Contractor within forty-five days after the sum becomes due. 27. Liquidated Damages. The parties agree that the damages suffered by City as a result of the Work not being completed within the time provided for in this Agreement (“Stated Time”) would be extremely difficult to calculate. Therefore, in addition to any other remedies, in the event the Work is not completed within the Stated Time, the Contractor and its sureties shall be assessed liquidated damages of one percent of the total Contract Price or $500.00, whichever is greater, per day for each calendar day of delay excluding Saturdays, Sundays, and Holidays until the Work is complete. This sum shall be deducted from the Contract Price at the time of final payment. Contractor and City hereby acknowledge and agree that the terms, conditions and amount fixed under this paragraph are reasonable, considering the disruption and costs City will likely incur, including but not limited to inconvenience to the S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 10 of 12 public, added cost of engineering and supervision, and legal costs, as a result of the Work not being completed within the Stated Time. 28. Mediation. Each dispute, claim or controversy arising from or related to this Agreement shall be subject to mediation as a condition precedent to initiating arbitration or legal or equitable actions by either party. Upon service of a written notice requesting mediation, the parties shall have ten (10) days to jointly select one person to act as mediator. If the parties are unable to agree upon a mediator, the parties shall ask the Scott County District Court to select a mediator. The mediation shall be conducted pursuant to the commercial mediation procedures of the American Arbitration Association but shall not be administered by the American Arbitration Association. No arbitration or legal or equitable action may be instituted for a period of 90 days from the filing of the request for mediation unless a longer period of time is provided by agreement of the parties. Each party shall bear its own costs of the mediation process. The parties shall share equally the fees and expenses of the mediator. Mediation shall be held in the City of Prior Lake unless another location is mutually agreed upon by the parties. The parties acknowledge that mediation is a voluntary process, and that the mediator does not have the authority to bind either party absent the party’s consent. The parties shall memorialize any agreement resulting from the mediation in a mediated settlement agreement, which agreement shall be enforceable as a settlement in any court having jurisdiction thereof. 29. Notice. Any notice required or permitted under this Agreement shall be delivered in one or more of the following manners: (i) delivered personally; (ii) mailed by United States registered or certified mail, return receipt requested, postage prepaid; or (iii) deposited cost paid with a nationally recognized, reputable overnight courier. Notice shall be delivered or directed to an officer or agent of the Contractor or to the City Manager as applicable at the address set forth on page 1 of this Agreement. Notice shall be deemed effective on the date of receipt. Any party may change its address for the service of notice by giving written notice of such change to the other party in any manner above specified, 10 days prior to the effective date of such change. 30. Independent Contractor. At all times and for all purposes, Contractor is an independent contractor engaged by City to perform the services described in this Agreement and Contractor shall have no authority to employ persons or make purchases on behalf of City, or otherwise bind or obligate City. No statement in this Agreement shall be construed to find the Contractor an employee of the City. 31. Employees. Contractor agrees not to hire any employee or former employee of City and City agrees not to hire any employee or former employee of Contractor prior to termination of this Agreement and for one year thereafter, without prior written consent of the former employer in each case. 32. Assignment. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 33. Audit Disclosure. Pursuant to Minn. Stat. 16C.05, Subd. 5, the books, records, documents and accounting procedures and practices of the Contractor or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six years after the effective date of this Agreement. S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 11 of 12 34. Data Practices. Any reports, information, data, etc. given to, or prepared or assembled by the Contractor under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City's prior written approval. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (“Data Practices Act”). All government data, as defined in the Data Practices Act, which is created, collected, received, stored, used, maintained, or disseminated by Contractor in performing any of the functions of the City during performance of this Agreement is subject to the requirements of the Data Practice Act and Contractor shall comply with those requirements as if it were a government entity. All subcontracts entered into by Contractor in relation to this Agreement shall contain similar Data Practices Act compliance language. 35. Non-Discrimination. During the performance of this Agreement, the Contractor shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation or age. The Contractor shall post in places available to employees and applicants for employment, notices setting forth the provision of this non- discrimination clause and stating that all qualified applicants will receive consideration for employment. The Contractor shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for the Work, and will require all of its subcontractors for the Work to incorporate such requirements in all subcontracts for the Work. The Contractor further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 36. Conflicts. No salaried officer or employee of the City and no member of the Council, or Commission, or Board of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders this Agreement void. 37. Rights and Remedies. The duties and obligations imposed by this Agreement 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. 38. Damages. In the event of a breach of this Agreement by the City, Contractor shall not be entitled to recover punitive, special or consequential damages or damages for loss of business. 39. Enforcement. The Contractor shall reimburse the City for all costs and expenses, including without limitation, attorneys' fees paid or incurred by the City in connection with the enforcement by the City during the term of this Agreement or thereafter of any of the rights or remedies of the City under this Agreement. 40. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. Venue and jurisdiction for any action, suit or proceeding arising out of this Agreement shall be only in the courts of Scott County, Minnesota or the federal courts for the United States for the District of Minnesota. 41. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or S:\PROJECTS\2020-25 South Tower Reconditioning\20201207 Standard Contract - Viking Painting LLC.docx Page 12 of 12 waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 42. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Contract. 43. Waiver. 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 this Agreement, 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. 44. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. In witness whereof, the parties have caused this Agreement to be executed by their duly authorized agents. CITY OF PRIOR LAKE ______________________ __________________________________ Date Mayor ___________________________________ City Manager VIKING PAINTING, LLC ______________________ By: ________________________________ Date Its: _______________________________ Exhibit A