HomeMy WebLinkAbout5838SUBJECT: Public Works Agreement with
Hokkaido Drilling, Inc. for Contractor
Services at Well 20
AGENDA BILL
CITY OF BREMERTON 5 H
CITY COUNCIL
Study Session Date:
COUNCIL MEETING Date:
Department:
Presenter:
Phone:
May 23, 2018
June 6, 2018
PW&U
Kathleen Cahall
(36 0) 473-2315
SUMMARY: Replacement of the Well 20 pump and motor is warranted due to age and energy
efficiency. One bid (1) successful bid was received with the low bid from Hokkaido Drilling, Inc. in
Graham, WA for $53,000 plus Washington State sales tax.
ATTACHMENTS: 1) Public Works Agreement
FISCAL IMPACTS (Include Budgeted Amount): Included in the 2018 Water Capital Budget.
STUDY SESSION AGENDA: ® Limited Presentation ❑ Full Presentation
STUDY SESSION ACTION: ® Consent Agenda ❑ General Business ❑ Public Hearing
RECOMMENDED MOTION:
Move to approve the Public Works Agreement with Hokkaido Drilling, Inc. in the amount of $53,000
plus Washington State sales tax; and authorize the Mayor to finalize and execute this agreement with
substantially the same terms and conditions as presented.
COUNCIL ACTION: Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Forth Updated 01/02/2018
PUBLIC WORKS AGREEMENT
THIS AGREEMENT, is entered into between the City of Bremerton, a
Washington Municipal Corporation ("City"), and Hokkaido Drilling, Inc. ("Contractor"), whose
mailing address is:24511 104'' Avenue Court East, Graham, WA 98338.
The parties agree as follows:
1. CONTRACTOR SERVICES. The Contractor shall perform the following
services for the City:
Mobilize
Pull the existing pump assembly
Inspect and evaluate the materials to be reused (pump column, check valves, cable,
sounding tubes, etc.)
Procure Install new pump and motor: SLI IH/3STG Simflo Pump Bowl Assembly and
Hitachi 10" motor
Install all equipment
Assist with start-up
Provide warrantee information
Demobilize
2. TIME OF COMPLETION. Contractor shall complete the work within 120
calendar days from the date of issuance of the City's Notice to Proceed.
3. COMPENSATION. The City shall pay the Contractor the total amount of
$53,000, plus any applicable Washington State Sales Tax, for the work and services
contemplated in this agreement. The City shall pay the Contractor ninety percent (90%) of the
Contract amount upon completion and acceptance of the work by the City, and the remainder
upon fulfillment of the conditions listed below and throughout this agreement.
A. No Performance Bond. Because this contract, including applicable sales
tax, is $150,000 or less, and pursuant to Chapter 39.08 RCW, the
Contractor, in lieu of providing the City a performance bond, has elected
to have the owner retain the final ten percent (10%) of the Contract
amount for a period of thirty (30) days after the date of final acceptance,
or until receipt of all necessary releases from the State Department of
Revenue and the State Department of Labor & Industries and until
settlement of any liens filed under Chapter 60.28 RCW, whichever is later.
B. Retainage. The City shall hold back a retainage in the- amount of five
percent (5%) of any and all payments made to contractor for a period of
forty-five (45) days after the date of final acceptance, or until receipt of all
PUBLIC WORKS AGREEMENT —Page 1 of 10
Between City of Bremerton and Hokkaido Drilling 2018
necessary releases from the State Department of Revenue and the State
Department of Labor & Industries and until settlement of any liens filed
under Chapter 60.28 RCW, whichever is later.
C. Defective or Unauthorized Work. The City reserves its right to withhold
payment from Contractor for any defective or unauthorized work.
Defective or unauthorized work includes, without limitation: work and
materials that do not conform to the requirements of this agreement; and
extra work and materials furnished without the City's written approval. If
Contractor is unable, for any reason, to satisfactorily complete any portion
of the work, the City may complete the work by contract or otherwise, and
Contractor shall be liable to the City for any additional costs incurred by
the City. "Additional costs" shall mean all reasonable costs, including
legal costs and attorney fees, incurred by the City beyond the maximum
Contract price specified above. The City further reserves its right to
deduct the cost to complete the Contract work, including any Additional
Costs, from any and all amounts due or to become due the Contractor.
D. Final Payment: Waiver of Claims. THE MAKING OF FINAL
PAYMENT (EXCLUDING WITHHELD RETAINAGE) SHALL
PRECLUDE ALL CLAIMS, EXCEPT THOSE PREVIOUSLY AND
PROPERLY MADE AND IDENTIFIED BY CONTRACTOR AS
UNSETTLED AT THE TIME REQUEST FOR FINAL PAYMENT IS
MADE.
4. INDEPENDENT CONTRACTOR. Contractor is and shall be at all times
acting as an independent contractor and not as an employee of the City. The Contractor shall
secure at its expense, and shall be responsible for all payments of income tax, social security,
state disability insurance compensation, unemployment compensation, and all other payroll
deductions for the Contractor, officer, agents, employees and sub -contractors. The Contractor
shall also secure all applicable business licenses, if required, in connection with the contract
services, including all required licenses for Contractor's officers, agents, employees and sub-
contractors.
5. TERMINATION. The City may terminate this agreement for good cause.
"Good cause" shall include, without limitation, any one or more of the following events:
A. The Contractor's refusal or failure to supply a sufficient number of
properly skilled workers or proper materials for completion of the
Contract work.
B. The Contractor's failure to complete the work within the time specified in
this agreement.
C. The Contractor's failure to make full and prompt payment to
subcontractors or for material or labor.
PUBLIC WORKS AGREEMENT — Page 2 of 10
Between City of Bremerton and Hokkaido Drilling 2018
D. The Contractor's persistent disregard of federal, state or local laws, rules
or regulations.
E. The Contractor's filing for bankruptcy or becoming adjudged bankrupt.
If the City terminates this agreement for good cause, the Contractor shall not receive any
further monies due under this agreement until the Contract work is completed.
6. PREVAILING WAGES. Contractor shall file a "Statement of Intent to Pay
Prevailing Wages," with the State of Washington Department of Labor & Industries prior to
commencing the Contract work. Contractor shall pay prevailing wages and comply with Chapter
39.12 of the Revised Code of Washington, as well as any other applicable prevailing wage rate
provisions. The latest prevailing wage rate revision issued by the Department of Labor and
Industries is attached.
7. CHANGES. The City may issue a written work change directive for any change
in the Contract work during the performance of this agreement. If the Contractor determines, for
any reason, that a change order is necessary, Contractor must submit a written change order
request to the City's project manager within two (2) business days of the date the Contractor
knew or should have known of the facts and events giving rise to the requested change. If the
City determines that the change increases or decreases the Contractor's costs or time for
performance, the City will make an equitable adjustment. The City will attempt, in good faith, to
reach agreement with the Contractor on all equitable adjustments. However, if the parties are
unable to agree, the City will determine the equitable adjustment as it deems appropriate. The
Contractor shall proceed with the change order work upon receiving a written work change
directive or change order from the City. If the Contractor fails to require a change order within
the time allowed, the Contractor waives its right to make any claim or submit subsequent change
order requests for that portion of the contract work. If the Contractor disagrees with the
equitable adjustment the Contractor must complete the change order work; however, the
Contractor may elect to protest the adjustment as provided below:
A. Procedure and Protest by the Contractor. If the Contractor disagrees with
anything required by a work change directive or change order, including
any direction, instruction, interpretation, or determination by the City, the
Contractor shall:
1. Immediately give a signed written notice of protest to the City;
2. Supplement the written protest within fourteen (14) calendar days
with a written statement that provides the following information:
a. The date of the Contract's protest.
b. The nature and circumstances that caused the protest.
C. The provisions in this agreement that support the protest.
PUBLIC WORKS AGREEMENT — Page 3 of 10
Between City of Bremerton and Hokkaido Drilling 2018
d. The estimated dollar cost, if any, of the protested work and
how that estimate was determined.
e. An analysis of the progress schedule showing the schedule
change or disruption if the Contractor is asserting a
schedule change or disruption.
The Contractor shall keep complete records of extra costs and time
incurred as a result of the protested work. The City shall have
access to any of the Contractor's records needed for evaluating the
protest.
3. The City will evaluate all protests, provided the procedures in this
section are followed. If the City determines that a protest is valid,
the City will adjust payment for work or time by an equitable
adjustment. No adjustment will be made for an invalid protest.
B. Contractor's Duty to Complete Protested Work. In spite of any protest,
the Contractor shall proceed promptly with the work as the City has
ordered.
C. Contractor's Acceptance of Changes. The Contractor accepts all
requirements of a change order by: (1) endorsing it, (2) writing a separate
acceptance, or (3) not protesting in the way this section provides. A
change order that is accepted by Contractor as provided in this section
shall constitute full payment and final settlement of all claims for contract
time and for direct, indirect and consequential costs, including costs of
delays related to any work, either covered or affected by the change.
D. Failure to Protest Constitutes Waiver. By not protesting as this section
provides, the Contractor also waives any additional entitlement and
accepts from the City any written order (including directions, instructions,
interpretations, and determination).
E. Failure to Follow Procedures Constitutes Waiver. By failing to follow the
procedures of this section, the Contractor completely waives any claims
for protested work and accepts form the City any written order (including
directions, instructions, interpretations, and determination).
8. CLAIMS. The Contractor shall give written notice to the City of all claims other
than change orders within fourteen (14) calendar days of the occurrence of the events giving rise
to the claims. Any claim for damages, additional payment for any reason, or extension of time,
whether under this agreement or otherwise, shall be conclusively deemed to have been waived
by the Contractor unless a timely written claim is made in strict accordance with the applicable
provisions of this agreement; or, if (and only if) no such provision is applicable, unless that claim
is set forth in detail in writing and received by the City within seven (7) calendar days from the
date Contractor knew, or should have known, of the facts giving rise to the claim. At a
PUBLIC WORKS AGREEMENT — Page 4 of 10
Between City of Bremerton and Hokkaido Drilling 2018
minimum, a Contractor's written claim must include the information set forth regarding protests
in Section 7.A.2.a.-e.
FAILURE TO PROVIDE A COMPLETE, WRITTEN NOTIFICATION OF CLAIM
WITHIN THE TIME ALLOWED SHALL BE AN ABSOLUTE WAIVER OF ANY CLAIMS
ARISING IN ANY WAY FROM THE FACTS OR EVENTS SURROUNDING THAT CLAIM
OR CAUSED BY THAT DELAY.
Contractor must, in any event, file any claim or bring any suit arising from or connected
with this agreement within 120 calendar days from the date the contract work is complete.
9. WARRANTY. The Contractor shall correct all defects in workmanship and
materials within one year from the date of the City's acceptance of the Contract work. When
defects are corrected, the warranty for that portion of the work shall extend for one year form the
date such correction is completed and accepted by the City. The Contractor shall begin to
correct any defects within seven (7) calendar days of its receipt of notice from the City of the
defect. If the Contractor does not accomplish the corrections within a reasonable time, the City
may complete the corrections and the Contractor shall pay all costs incurred by the City in order
to accomplish the correction.
10. INDEMNIFICATION. Contractor shall defend, indemnify and hold the City, its
officer, officials, employees, agents and volunteers harmless from any and all claims, injuries,
damages, losses or suits including all legal costs and attorney fees, arising out of or in connection
with the performance of this agreement, except for injuries and damages caused by the City's
sole negligence.
The City's inspection or acceptance of any of Contractor's work when completed shall
not be grounds to avoid any of these covenants of indemnification.
Should a court of competent jurisdiction determine that this agreement is subject to RCW
4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or
damages to property caused by or resulting from the concurrent negligence of the Contractor and
the City, its officials, employees, agents and volunteers, the Contractor's liability hereunder shall
be only to the extent of the Contractor's negligence.
IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THIS
INDEMNIFICATION CONSTITUTES THE CONTRACTOR'S WAIVER OF IMMUNITY
UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSE OF
THIS INDEMNIFICATION. THE PARTIES ACKNOWLEDGE THAT THEY HAVE
MUTUALLY NEGOTIATED THIS WAIVER.
The provisions of this section shall survive the expiration or termination of this
agreement.
PUBLIC WORKS AGREEMENT — Page 5 of 10
Between City of Bremerton and Hokkaido Drilling 2018
11. INSURANCE. The Contractor shall procure and maintain for the duration of this
agreement insurance of the types and in the amounts described below against claims for injuries
to persons or damage to property which may arise from or in connection with the performance of
the work by the Contractor, its agents, representative, employees, subconsultants or
subcontractors.
Before beginning work on the project described in this agreement, the Contractor shall
provide a Certificate of Insurance evidencing:
Automobile Liability insurance with limits no less than $1,000,000
combined single limit per accident for bodily injury and property damage;
and
2. Commercial General Liability insurance written on an occurrence basis
with limits no less than $1,000,000 combined single limit per occurrence
and $2,000,000 general aggregate for personal injury, bodily injury and
property damage. Coverage shall include but not be limited to: blanket
contractual; products/completed operations/broad form property damage;
explosion, collapse and underground (XCU); and employer's liability.
Excess Liability insurance with limits not less than $1,000,000 per
occurrence and aggregate.
Any payment of deductible or self insured retention shall be the sole responsibility of
the Contractor.
The City, its officials, employees, agents and volunteers shall be named as an
additional insured on the insurance policy, as respects work performed by or on behalf of the
Contractor and a copy of the endorsement naming the City as additional insured shall be attached
to the Certificate of Insurance.
The Contractor's insurance shall contain a clause stating that coverage shall apply
separately to each insured against whom claim is made or suit is brought, except with respects to
the limits of the insurer's liability.
The Consultant's insurance shall be primary and non-contributory insurance as respects
the City and shall contain a waiver of subrogation against the City for claims arising out of any
operations, liabilities and obligations to which coverage applies. It shall be an affirmative
obligation upon Consultant to advise the City's Risk Manager by fax at (360) 473-5161, or by
certified mail, return receipt requested to City of Bremerton, attn: Risk Management, 345 6tn
Street, Suite 600, Bremerton, WA 98337 within two days of the cancellation, suspension or
substantive change of any insurance policy set out herein, and failure to do so shall be construed
to be a breach of this Agreement.
The City reserves the right to receive a certified copy of all the required insurance
policies.
PUBLIC WORKS AGREEMENT —Page 6 of 10
Between City of Bremerton and Hokkaido Drilling 2018
12. MISCELLANEOUS.
A. Nondiscrimination. In the hiring of employees for the performance of
work under this Agreement or any sub -contract hereunder, the Contractor, its sub -contractors, or
any person acting on behalf of such Contractor or sub -contractor shall not, by reason of race,
religion, color, sex, national origin, or the presence of any sensory, mental, physical disability, or
sexual orientation discriminate against any person who is qualified and available to perform the
work to which the employment relates.
B. Compliance with Laws. Contractor shall comply with all federal, state
and local laws, rules and regulations throughout every aspect in the performance of this
agreement.
C. Work Performed at Contractor's Risk. Contractor shall take all
precautions necessary and shall be responsible for the safety of its employees, agents, and
subcontractors in the performance of this agreement. All work shall be done at Contractor's own
risk, and Contractor shall be responsible for any loss of or damage to materials, tools, or other
articles used or held for use in connection with the work.
D. Nonwaiver of Breach. The failure of the City to insist upon strict
performance of any of the terms and rights contained herein, or to exercise any option herein
conferred in one or more instances, shall not be constructed to be a waiver or relinquishment of
those terms and rights and they shall remain in full force and effect
E. Governing. This agreement shall be governed and construed in
accordance with the laws of the State of Washington. If any dispute arises between the City and
Contractor under any of the provisions of this agreement, resolution of that dispute shall be
available only through the jurisdiction, venue and rules of the Kitsap County Superior Court,
Kitsap County, Washington.
F. Attorney's Fees. To the extent not inconsistent with RCW 39.04.240, in
any claim or lawsuit for damages arising from the parties' performance of this agreement, each
party shall be responsible for payment of its own legal costs and attorney's fees incurred in
defending or bringing such claim or lawsuit; however, nothing in this subsection shall limit the
City's right to indemnification under Section 10 of this agreement.
G. Written Notice. All communications regarding this agreement shall be
sent to the parties at the addresses listed on the signature page of this agreement, unless
otherwise notified. Any written notice shall become effective upon delivery, but in any event
three (3) calendar days after the date of mailing by registered or certified mail, and shall be
deemed sufficiently given if sent to the addressee at the address stated on this agreement.
H. Assignment. Any assignment of this agreement by the Contractor without
the written consent of the City shall be void.
PUBLIC WORKS AGREEMENT — Page 7 of 10
Between City of Bremerton and Hokkaido Drilling 2018
I. Modification. No waiver, alteration, or modification of any of the
provisions of this agreement shall be binding unless in writing and signed by a duly authorized
representative of the City and Contractor.
J. Severability. If any one or more sections, sub -sections, or sentences of
this agreement are held to be unconstitutional or invalid, that decision shall not affect the validity
of the remaining portion of this agreement and the remainder shall remain in full force and
effect.
K. Entire Agreement. The written provisions and terms of this agreement,
together with any attached Exhibits, supersede all prior verbal statements by any representative
of the City, and those statements shall not be construed as forming a part of or altering in any
manner this agreement. This agreement and any attached Exhibits contain the entire agreement
between the parties. Should any language in any Exhibit to this agreement conflict with any
language contained in this agreement, the terms of this agreement shall prevail.
IN WITNESS WHEREOF, the parties below have executed this agreement.
DATE
Notices to be sent to:
CONTRACTOR:
Attn: Hokkaido Drilling, Inc.
24511 104th Avenue Court East
PO Box 100
Graham, WA 98338
Ph 253-847-3579 Fax 253-847-7404
PUBLIC WORKS AGREEMENT — Page 8 of 10
Between City of Bremerton and Hokkaido Drilling 2018
TZ E CITY OF BREMERTON
TZ
Print e: e
Title. MC-_ o
DATE ILA .201 Q,
Notices to be sent to:
CITY OF BREMERTON:
Attn: Water Resources Manager
City of Bremerton
100 Oyster Bay Ave N
Bremerton, WA 98312
Ph 360-473-2315 Fax 360-473-5018
APPROVED AS TO FORM:
Bremerton C' ttorne
ATTEST:
Bremerton City Clerk
R:\LEGAL\Contracts\FORMS\ShortForm.PW.Agr.doc
PUBLIC WORKS AGREEMENT — Page 9 of 10
Between City of Bremerton and Hokkaido Drilling 2018
PREVAILING WAGES
Look Up Journey Level Rates
Important Note about Rates: Choosing correct worker classifications depends upon determinations
published by L&I. Re+;ie,: our Det�rminat;ons.
Look up P=evaiting� ,age,a-es with effective dates as far back as March:, 1998.
' 'hich rases (effec,ive date; sho,ild +;ou setect?
+ '''lipn are Dre'vai Ling 'ramie 'aces LIpdaCed?
Select Count;
Ada^ -s
Asot n
Bento-i
Chelaq
Clallam
Clark
Columbia
Co-.,v'litz
Coua as
Ferri
Select Trade
Asbestos Abatement VVor{ers
Boilers akers
Brick And Marb'e Masons
Brick Nlason
B,icKla'yers & Marble F:lasons
Bidding Service Employees
Cabinet Makers (In Shoo)
Carpenters
Cement Masons
Divers & Tenders
Effective Date: 5 9 201 & _.phren icea12eS
Benefit Code Key for 519i2018
County Trade Job Classification Wage Holiday Overtime Note
Kitsap PtUmbers Et Pipe`itters Journey Levet 567.47 5A 1G
WAC 296-127-01364
Plumbers, pipefitters, and steamfitters.
For the purpose of the Washington state public works taw, chapter 39.12 RCW, plumbers, pipefitters and steamfitters assemble,
install, and maintain piping systems, fixtures and equipment for the transportation of water, steam, gas, air, sewage, oil, fuels, liquids,
gases, or similar substances.
The work includes, but is not limited to:
(1) Piping systems installed in structures (e.g., buildings, industrial plants, etc.).
(a) The handling and moving of any plumbing, pipefitting and steamfitting materials, supplies, and equipment on the job site.
(b) Cutting, threading, and bending pipe.
(c) Joining pipes by use of screws, bolts, fittings, solder, welding and caulking, or any other method of making joints in the
pipefitting industry.
(d) Assembling, installing, and repairing valves, pipe fittings, and pumps.
(e) Testing the piping system.
(f) Installing and repairing plumbing fixtures, such as sinks, bathtubs, water heaters, and water softeners.
(g) Cutting holes in floors and walls for pipes:
• With point and hammer.
• Core -drilled.
(h) Responsible for all cleanup required in connection with plumbers, pipefitters and steamfitters work.
(2) Distribution lines (e.g., water mains, sewer mains, oil and gas lines, etc.).
(a) The handling and moving of any plumbing, pipefitting and steamfitting materials, supplies, and equipment on the job site.
(b) Steel pipe: Welding of pipe joints and joining pipes with screws, bolts, fittings, solder, caulking, or any other method for making
joints in the industry.
(c) Ductile iron pipe: Joining pipes by using any method for making joints in the industry, when the pipe will be under pressure.
Assembling, installing, and repairing valves and pumps.
(d) Testing the piping system.
(e) Responsible for all cleanup required in connection with plumbers, pipefitters and steamfitters work.
CITY OF BREMERTON
CHANGE ORDER
CONTRACT CHANGE ORDER NO: 18'_I 7571
PROJECT NAME: W20 Pump and Motor Replacement
PROJECT
NO:4539 CONTRACTOR: Hokkaido Drilling Inc.
ORIGINAL CONTRACT AMOUNT: $57,770.00 DAYS:
PREVIOUSLY APPROVED
CHANGES:
THIS CHANGE:
REVISED CONTRACT AMOUNT:
0.00 DAYS:
$19,511.00 DAYS:
$77,281.00 DAYS:
0
0
0
0
This Change Order covers changes to the subject contract as described herein. The Contractor shall
construct, furnish equipment and materials, and perform all work as necessary or required to complete
the Change Order Items. The increase or decrease in contract price shown below includes any
applicable taxes.
DESCRIPTION OF CHANGES INCREASE IN (DECREASE) IN CONTRACT
o CONTRACT CONTRACT TIME
AMOUNT AMOUNT EXTENSION
CD ($) ($) (DAYS:)
Addition well column pipe and check valve as well as a new
$19,511.00
power cable and a video scan of the well were added to the
original cost due to pitting and corrosion found once the well had
been pulled.
I
NET CHANGE IN CONTRACT AMOUNT
$17,900.00
INCREASE OR (DECREASE)
ESTIMATED SALES TAX AT 8.6% $1,611.00
TOTAL INCLUDING SALES TAX— $19,511.00
Contractor acknowledges and accepts that this Change Order constitutes final settlement of all claims
of any kind or nature arising from or connected with any work either covered or affected by this Change
Order, including, without limitation, claims related to contract time, on-site or home office overhead, or
lost profits. Nothing in this Change Order shall limit the City's right to bring a claim for past performance.
The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the
contract price specified for each item, including any and all supervision costs and other miscellaneous
costs relating to the change in work, and as to the extension of time allowed, if any, for completion of
the entire work due to said Change Order.
PROJECT NAME:
CONTRACT CHANGE ORDER NO: I O 1 -16— J
This document will become a supplement of the contract and all provisions will apply hereto. It is
understood that this Change Order shall be effective when approved by the City of Bremerton.
The parties whose names appear below warrant that they are authorized to enter into a change order
that is binding on the parties of this contract. In addition, Contractor warrants that it has or will inform
the surety of this change, and shall take appropriate action to modify any bonds required under the
contract to address this change.
CONTRACTOR
Approved:z-fli'," DATE:
PROJECT MANAGER
�. ��� AUG 2 0 2018
Recommended: DATE:
CITY ENGINEER - ----- -- ----- - --
Council action is required as project cost will exceed approved budget. ❑ Yes ❑ No
Council action is required as change exceeds Mayors authority per BMC 2.76.110. ❑ Yes ❑ No
Recommended:
DIRECTOR OF PUBLIC WORKS AND UTILITIES
DATE:
Recommended:-----EDA E:
----------------. --. _--- --
MAYOR
Approved:
APPROVED AS TO FORM:
R ERA. LUBOVICH, Brem omey
RALegaN_egaWomis%FORMS ON COBWEB\Change Order Rev. 07 2018.docx
613,0112
DATE:
ATTEST:
Page 2 of 2
Change Order
Rev. 06/2018