Award Contract for SCADA Improvements0
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
7901 Park Place
Phone: 952.227.1300
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Paul Oehme, City Engineer /Public Works Director `
DATE: January 25, 2016 M (_�
SUBJ: Approve Professional Services Contract with AE2S Construction, LLC for
SCADA Improvements — Project No, 14 -04
PROPOSED MOTION
"The City Council approves a professional services contract with AE2S Construction,
LLC for SCADA improvements in the amount of $272,312.00."
City Council approval requires a simple majority vote of the City Council present.
The City's Utility Supervisory Control and Data Acquisition (SCADA) system is designed to
automate the management of the wells, towers, lift stations, pumps, and any other items in the
water distribution and sanitary sewer system. The systems use telemetry units to relay
information back to a main computer system which checks if the system is functioning
properly.
As discussed at the April 12, 2004 work session, the City's current SCADA system is
antiquated, difficult to expand upon, and routinely gives false alarms. The current system is
very expensive to maintain and requires a substantial amount of staff time to check false
alarms and keep the system operational. Staff feels the existing SCADA system should be
replaced at this time. The proposed improvements will replace the software at the remote
sites and upgrade the SCADA software at the plant to communicate with the remote sites.
The project does not replace the SCADA system that operates the east water treatment plant.
It is planned that the SCADA software that runs the east plant be upgraded if and when the
west treatment plant is constructed.
Quotes for professional service for software and programming were received on Friday,
January 15, 2016. Barr Engineering drafted the specifications and has tabulated the quotes
and finds them accurate. Barr Engineering recommends award of the contract to AE2S
Construction, LLC.
Fax: 952.227.1310 The quotes received are as follows:
Senior Center AE2S Construction, LLC $272,312.00
Phone: 952.227.1125 Automatic Systems $274,000.00
Fax: 952.227.1110
AE2S has recently work on patches for the City's SCADA system. There work has been
Website acceptable.
www.ci.chanhassen.mn.us
Attachment: CIP Sheet
c: Brett Jochim, AE2S Construction, LLC
Anthony Pittman, AE2S Construction, LLC
g: \eng\pChanhasseneisatCommunit2forLife51Pro idinVTorrT daSandPlanningforTomorrow
Y 9 Y 9
Capital Improvement Program 2016 Ihru 2020 Department Sanitary Sewer Improvements
City of Chanhassen, MN Contact Paul Oehme
Project # SS -026 Type Improvement
Useful Life
Project Name SCADA Improvements Category Utilities
Account #1 Account #3 Priority n/a
Account #2 Account #4
Description Total Project Cost: $300,000
LanTh—e—City's SCADA (Supervisory Control and Data Acquisition) is over 10 years old and needs to be upgraded. The system controls all the sewer
d water infrastructure for the City, including lift stations, wells, water towers and the water treatment plant. The current system is not supported
anymore so new software is required.
Justification
The current SCADA software can not be supported and needs to be replaced. A good functioning SCADA system is critical to provide reliable
information of sewer and water operations.
Expenditures
2016 2017
2018 2019 2020 Total
Equipment
300,000
300,000
Funding Sources
Total 300,000
2016 2017
300,000
2018 2019 2020 Total
Sewer Utility Fund
Water Utility Fund
150,000
150,000
150,000
150,000
Total 300,000
300,000
Budget Impact/Other
FORM OF AGREEMENT
BETWEEN CITY OF CHANHASSEN AND CONTRACTOR
FOR
PROFESSIONAL SERVICES FOR SCADA IMPROVMENTS
THIS AGREEMENT, made this 25t1i day of January, 2016, by and between the CITY
OF CHANHASSEN, a Minnesota municipal corporation ( "Owner ") and AE2S
CONSTRUCTION, LLC ( "Contractor "). Owner and Contractor, in consideration of the mutual
covenants set forth herein, agree as follows:
1. CONTRACT DOCUMENTS. The following documents 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 verbatim and in full herein:
A. This Agreement;
B. Specifications dated December, 2015;
C. City of Chanhassen General Conditions of the Construction Contract;
D. Quote /Bid dated January 15, 2016.
In the event of a conflict among the provisions of the Contract Documents, the order in which
they are listed above shall control in resolving any such conflicts with Contract Document "A"
having the first priority and Contract Document "D" having the last priority.
2. OBLIGATIONS OF THE CONTRACTOR. The contractor shall provide the
goods, services, and perform the work in accordance with the Contract Documents.
3. CONTRACT PRICE. Owner shall pay Contractor for completion of the Work
in accordance with the Contract Documents the amount of Two Hundred Seventy Two Thousand
Three Hundred Twelve Dollars and 00 /100 ($272,312.00).
a. PAYMENT PROCEDURES.
A. Contractor shall submit Applications for Payment. Applications for
Payment will be processed by Engineer as provided in the General
Conditions.
B. Progress Payments; Retainage. Owner shall make 95% progress payments
on account of the Contract Price on the basis of Contractor's Applications
for Payment during performance of the Work.
C. Payments to Subcontractor.
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(1) Prompt Payment to Subcontractors. Pursuant to Minn. Stat. §
471.25, Subd. 4a, the Contractor must pay any subcontractor
within ten (10) days of the Contractor's receipt of payment from
the City for undisputed services provided by the subcontractor.
The Contractor must pay interest of 1 %x percent per month or any
part of a month to the Subcontractor on any undisputed amount not
paid on time to the subcontractor. 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 penalty due to the subcontractor.
(2) Form IC -134 (attached) required from general contractor. Minn.
Stat. § 290.92 requires that the City of Chanhassen obtain a
Withholding Affidavit for Contractors, Form IC -134, before
making final payments to Contractors. This form needs to be
submitted by the Contractor to the Minnesota Department of
Revenue for approval.
The form is used to receive certification from the state that the
vendor has complied with the requirement to withhold and remit
state withholding taxes for employee salaries paid.
D. Final Payment. Upon final completion of the Work, Owner shall pay the
remainder of the Contract Price as recommended by Engineer.
5. COMPLETION DATE/LIQUIDATED DAMAGES.
A. The Work on Well House #15 shall be completed by May 1, 2016; Work
on master control panel A and SCADA software and computers shall be
completed by July 15, 2016; Substantial Completion of all work shall be
September 16, 2016; Final Completion and Payment of all work shall be
October 7, 2016.
B. Contract and Owner recognize that time is of the essence of this
Agreement and that Owner will suffer financial loss if the Work is not
completed within the times specified in Paragraph 5.A. above, plus any
extensions thereof allowed. The parties also recognize the delays,
expense, and difficulties involved in proving in a legal or arbitration
proceeding the actual loss suffered by Owner if the Work is not completed
on time. Accordingly, instead of requiring any such proof, Owner and
Contractor agree that as liquidated damages for delay (but not as a
penalty), Contractor shall pay Owner $ 500.00 for each calendar day that
expires after the time specified in Paragraph 5.A. for Completion until the
Work is complete.
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Daily costs are based on MnDOT Table 1807 -1, "Schedule of Liquidated
Damages as follows:
TABLE 1807 -1
SCHEDULE OF LIQUIDATED
DAMAGES
Original Contract Amount
Charge
Per Cal.
Day
M
From More Than
M
To and Including
M
0
25,000
75
25,000
50,000
125
50,000
100,000
250
100,000
500,000
500
500,000
1,000,000
750
1,000,000
2,000,000
1,250
2,000,000
5,000,000
1,750
5,000,000
10,000,000
2,500
10,000,000
- - --
3,000
6. CONTRACTOR'S REPRESENTATIONS.
A. Contractor has examined and carefully studied the Contract Documents
and other related data identified in the Contract Documents.
B, Contractor has visited the Site and become familiar with and is satisfied as
to the general, local, and Site conditions that may affect cost, progress, and
performance of the Work.
C. Contractor is familiar with and is satisfied as to all federal, state, and local
Laws and Regulations that may affect cost, progress, and performance of
the Work.
D. Contractor has carefully studied all: (1) reports of explorations and tests
of subsurface conditions at or contiguous to the Site and all drawings of
physical conditions in or relating to existing surface or subsurface
structures at or contiguous to the Site (except Underground Facilities)
which have been identified in the General Conditions and (2) reports and
drawings of a Hazardous Envirorunental Condition, if any, at the site.
E. Contractor has obtained and carefully studied (or assumes responsibility
for doing so) all additional or supplementary examinations, investigations,
explorations, tests, studies, and data concerning conditions (surface,
subsurface, and Underground Facilities) at or contiguous to the Site which
may affect cost, progress, or performance of the Work or which relate to
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175881v1
any aspect of the means, methods, techniques, sequences, and procedures
of construction to be employed by Contractor, including any specific
means, methods, techniques, sequences, and procedures of construction
expressly required by the Bidding Documents, and safety precautions and
programs incident thereto.
F. Contractor does not consider that any further examinations, investigations,
explorations, tests, studies, or data are necessary for the performance of
the Work at the Contract Price, within the Contract Times, and in
accordance with the other terms and conditions of the Contract
Documents.
G. Contractor is aware of the general nature of work to be performed by
Owner and others at the Site that relates to the Work as indicated in the
Contract Documents.
H. Contractor has correlated the information known to Contractor,
information and observations obtained from visits to the Site, reports and
drawings identified in the Contract Documents, and all additional
examinations, investigations, explorations, tests, studies, and data with the
Contract Documents.
Contractor has given Engineer written notice of all conflicts, errors,
ambiguities, or discrepancies that Contractor has discovered in the
Contract Documents, and the written resolution thereof by Engineer is
acceptable to Contractor.
J. The Contract Documents are generally sufficient to indicate and convey
understanding of all terms and conditions for performance and furnishing
of the Work.
K. Subcontracts:
(1) Unless otherwise specified in the Contract Documents, the
Contractor shall, upon receipt of the executed Contract Documents,
submit in writing to the Owner the names of the Subcontractors
proposed for the work. Subcontractors may not be changed except
at the request or with the consent of the Owner.
(2) The Contractor is responsible to the Owner for the acts and
omissions of the Contractor's subcontractors, and of their direct
and indirect employees, to the same extent as the Contractor is
responsible for the acts and omissions of the Contractor's
employees.
175881v1
(3) The Contract Documents shall not be construed as creating any
contractual relation between the Owner, the Engineer, and any
Subcontractor.
(4) The Contractor shall bind every Subcontractor by the terms of the
Contract Documents.
7. WORKER'S COMPENSATION. The Contractor shall obtain and maintain for
the duration of this Contract, statutory Worker's Compensation Insurance and Employer's
Liability Insurance as required under the laws of the State of Minnesota.
8. COMPREHENSIVE GENERAL LIABILITY. Contractor shall obtain the
following minimum insurance coverage and maintain it at all times throughout the life of the
Contract, with the City included as an additional name insured on a primary and non-
contributory basis. The Contractor shall furnish the City a certificate of insurance satisfactory to
the City evidencing the required coverage:
Bodily Injury: $2,000,000 each occurrence
$2,000,000 aggregate products and
completed operations
Property Damage: $2,000,000 each occurrence
$2,000,000 aggregate
Contractual Liability (identifying the contract):
Bodily Injury: $2,000,000 each occurrence
Property Damage: $2,000,000 each occurrence
$2,000,000 aggregate
Personal Injury, with Employment Exclusion deleted:
$2,000,000 aggregate
Comprehensive Automobile Liability (owned, non - owned, hired):
Bodily Injury: $2,000,000 each occurrence
$2,000,000 each accident
Property Damage: $2,000,000 each occurrence
9. WARRANTY. The Contractor guarantees that all new equipment warranties as
specified within the quote shall be in full force and transferred to the City upon payment by the
City. The Contractor shall be held responsible for any and all defects in workmanship, materials,
and equipment which may develop in any part of the contracted service, and upon proper
notification by the City shall immediately replace, without cost to the City, any such faulty part
or parts and damage done by reason of the same in accordance with the bid specifications.
1758810
10. INDEMNITY. The Contractor agrees to indemnify and hold the City harmless
from any claim made by third parties as a result of the services performed by it. In addition, the
Contractor shall reimburse the City for any cost of reasonable attorney's fees it may incur as a
result of any such claims.
11. MISCELLANEOUS.
A. Terms used in this Agreement have the meanings stated in the General
Conditions.
B. Owner and Contractor each binds itself, its partners, successors, assigns
and legal representatives to the other party hereto, its partners, successors,
assigns and legal representatives in respect to all covenants, agreements,
and obligations contained in the Contract Documents.
C. Any provision or part of the Contract Documents held to be void or
unenforceable under any Law or Regulation shall be deemed stricken, and
all remaining provisions shall continue to be valid and binding upon
Owner and Contractor, who agree that the Contract Documents shall be
reformed to replace such stricken provision or part thereof with a valid and
enforceable provision that comes as close as possible to expressing the
intention of the stricken provisions.
D. Data Practices/Records.
(1) All data created, collected, received, maintained or disseminated
for any purpose in the course of this Contract is governed by the
Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any
other applicable state statute, or any state rules adopted to
implement the act, as well as federal regulations on data privacy.
(2) All books, records, documents and accounting procedures and
practices to the Contractor and its subcontractors, if any, relative to
this Contract are subject to examination by the City.
C. Software License. If the equipment provided by the Contractor pursuant
to this Contract contains software, including that which the manufacturer
may have embedded into the hardware as an integral part of the
equipment, the Contractor shall pay all software licensing fees. The
Contractor shall also pay for all software updating fees for a period of one
year following cutover. The Contractor shall have no obligation to pay for
such fees thereafter. Nothing in the software license or licensing
agreement shall obligate the City to pay any additional fees as a condition
for continuing to use the software.
175881vI
F. Patented devices, materials and processes. If the Contract requires, or the
Contractor desires, the use of any design, devise, material or process
covered by letters, patent or copyright, trademark or trade name, the
Contractor shall provide for such use by suitable legal agreement with the
patentee or owner and a copy of said agreement shall be filed with the
Owner. If no such agreement is made or filed as noted, the Contractor
shall indemnify and hold harmless the Owner from any and all claims for
infringement by reason of the use of any such patented designed, device,
material or process, or any trademark or trade name or copyright in
connection with the Project agreed to be performed under the Contract,
and shall indemnify and defend the Owner for any costs, liability,
expenses and attorney's fees that result from any such infringement
G. Assignment. Neither party may assign, sublet, or transfer any interest or
obligation in this Contract without the prior written consent of the other
party, and then only upon such terms and conditions as both parties may
agree to and set forth in writing.
H. Waiver. In the particular event that either party shall at any time or times
waive any breach of this Contract by the other, such waiver shall not
constitute a waiver of any other or any succeeding breach of this Contract
by either party, whether of the same or any other covenant, condition or
obligation.
Governing LawNenue. The laws of the State of Minnesota govern the
interpretation of this Contract. In the event of litigation, the exclusive
venue shall be in the District Court of the State of Minnesota for Carver
County.
Severability. If any provision, term or condition of this Contract is found
to be or become unenforceable or invalid, it shall not affect the remaining
provisions, terms and conditions of this Contract, unless such invalid or
unenforceable provision, term or condition renders this Contract
impossible to perform. Such remaining terms and conditions of the
Contract shall continue in full force and effect and shall continue to
operate as the parties' entire contract.
K. Entire Agreement. This Contract represents the entire agreement of the
parties and is a final, complete and all inclusive statement of the terms
thereof, and supersedes and terminates any prior agreement(s),
understandings or written or verbal representations made between the
parties with respect thereto.
L. Permits and Licenses; Rights -of -Way and Easements. The Contractor
shall procure all permits and licenses, pay all charges and fees therefore,
and give all notices necessary and incidental to the construction and
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1758810
completion of the Project. The City will obtain all necessary rights -of-
way and easements. The Contractor shall not be entitled to any additional
compensation for any construction delay resulting from the City's not
timely obtaining rights -of -way or easements.
M. If the work is delayed or the sequencing of work is altered because of the
action or inaction of the Owner, the Contractor shall be allowed a time
extension to complete the work but shall not be entitled to any other
compensation.
CITY OF CHANHASS N AE2S CONSTRUCTION C:
BY:
Denn L fen urg r Mayor
BY:
BY: Its rye
odd Gerhardt, City Manager
S
i7ssaivi