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HomeMy WebLinkAbout09-04-07_Authorize City Manager to sign Inspection Services_3 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brian Heaston, Project Engineer Chris Kukulski, City Manager SUBJECT: Hilltop Tank Painting – Inspection Services Agreement MEETING DATE: September 4, 2007 – Consent Agenda RECOMMENDATION: That the City Commission make a motion authorizing the City Manager to sign an Inspection Services Agreement between Pipe and Tanks, LLC and the City of Bozeman. BACKGROUND: The Contractor will begin painting operations at the Hilltop Tank on September 17, 2007, with a scheduled completion date of November 16, 2007. City Staff has identified the need for a full-time resident inspector with expertise in the specialized field of coatings inspection of steel structures. The inspector will be on the project site during the entire contract period and will inspect the Contractor’s work to ensure compliance with the Contract Documents and Specifications; helping to protect the City’s significant investment in maintaining the tank coatings. Pat Thronson, owner and president of Pipe and Tanks LLC, will perform the inspection duties specified under the agreement. Mr. Thronson has extensive experience with steel tank and steel coatings inspection, with over 16 years in the industry. He is certified with the National Association of Corrosion Engineers (NACE) as a CIP Level 3 – Peer Review Coating Inspector. Mr. Thronson also holds professional certification as a welding inspector with the American Welding Society (AWS) and has been a guest speaker at Montana Rural Water Systems conferences in 2004 and 2007. Two copies of the inspection services agreement are attached to this memo. Please have the City Manager sign both copies and return both to the Project Engineer. PROJECT BUDGET: The total budget allotted for the Hilltop Tank Painting project is $750,000. The painting contract was awarded at a bid price of $305,000, leaving a significant budget excess. The agreement specifies that Pipe and Tanks LLC will be paid $3,200.00 per week of services rendered. The anticipated total cost for coatings inspection is $28,800.00 based on 9 weeks of completed services between the project start date of September 17, 2007 and the anticipated project end date of November 16, 2007. FISCAL EFFECTS: Pipe and Tanks services are anticipated to reduce the remaining Hilltop Tank painting budget by $28,800.00. Total anticipated cost for painting and inspection contracts is $333,800.00, well within the allotted budget of $750,000. 5 ALTERNATIVES: None recommended Respectfully submitted, Approved by, Brian Heaston, Project Engineer Chris A. Kukulski, City Manager Report compiled on August 29, 2007 Attachments: (2) Inspection Services Agreement cc: Project File Debbie Arkell, Director of Public Service Rick Hixson, City Engineer Rick Moroney, Treatment Plant Superintendent Anna Rosenberry, Finance Director 6 lAGREEMENT FOR INSPECTION SERVICES BETWEEN THE CITY OF BOZEMAN AND PIPE AND TANKS LLC FOR THE HILLTOP TANK PAINTING PROJECT THIS AGREEMENT is made this day ofAugust 2007 by and between the CITY OF BOZEMAN a municipal corporation of the State of Montana 411 East Main Bozeman MT 59715 hereinafter referred to as City and PIPE AND TANKS LLC hereinafter referred to as Inspector WITNESSETH WHEREAS the Inspector represents that it has the knowledge expertise and qualifications required to render the services hereinafter described and required and WHEREAS the City and the Inspector have agreed that the Inspector shall perform the services required under the terms of the contract all as hereinafter more particularly set forth NOW THEREFORE in consideration ofthe mutual promises and covenants ofthe parties hereto IT IS AGREED ARTICLE 1 GENERAL A The Inspector shall furnish all material and perform all work necessary to conduct and complete inspection during the course ofthe Hilltop Tank painting project to determine that the Contractor s work is being completed in accordance with the Contract Documents and Specifications B The Inspector shall keep and maintain a daily construction diary tracking all work performed during the given work day Any work that is not performed in accordance with the Contract Documents and Specifications shall be reported to the City immediately and shall be recorded in detail in the daily log The Inspector shall make the daily diary available to the City at any time and shall furnish copies ofthe diary on a weekly basis C All work under this Agreement shall be done in a professional manner and shall be subject to the inspection and acceptance ofthe City whose decision with respect to all questions arising out ofthe performance of such work shall be binding upon the parties hereto D The Inspector shall be responsible to the level ofcompetency presently maintained by other practicing professionals performing the same type of work for the professional and technical soundness accuracy and adequacy of all work and materials furnished under this Agreement 7 E Copies offield notes drawings prints and plans prepared under the terms ofthis Agreement shall be delivered by the Inspector to the City upon completion ofthe work F This Agreement represents the entire agreement between the parties hereto and supersedes all prior negotiations representations or agreements whether written or oral This Agreement may be amended only by written instrument signed and dated by each of the parties hereto G The Inspector shall be responsible for the professional quality technical accuracy timely completion and coordination ofall services rendered under this Agreement ARTICLE 2 SCOPE OF WORK A The Inspector shall provide full time on site inspection of all work performed by the Contractor during the length of the Hilltop Tank painting contract within the allowable hours ofconstruction of7 OOAM to 7 OOPM with the understanding that weekend inspection may become necessary if weekend work is approved by the City B The Inspector shall be present during the Pre Construction meeting for the project which as ofthe time ofthis Agreement shall be September 5 2007 ARTICLE 3 TIME OF PERFORMANCE A The terms ofthis Agreement shall begin September 17 2007 and end November 16 2007 which coincide with the painting contract dates as ofthe effective date of this Agreement In the event the end date ofthe painting contract is extended by Change Order the length of this Agreement shall be extended to match unless termination is agreed upon in writing by both parties B Notwithstanding the Agreement terms set forth above the Inspector shall be present during the Pre Construction meeting scheduled September 5 2007 The City shall provide written notification to the Inspector if the meeting date changes ARTICLE 4 COMPENSATION A Payment for the services rendered shall be 3 200 00 per full work week of service defined as Monday thru Sunday including all reasonable costs which amount shall not be exceeded without the written authorization ofthe City If necessary payment for partial weekly service shall be on a pro rata basis B In the event the City determines it is necessary to use the Inspector as a witness in any litigation directly arising from the work performed in this Agreement the Inspector shall be paid per the Inspector s fee schedule dated February 1 2007 which is hereby incorporated into this agreement as Exhibit A C The Inspector may submit invoices to the City once per month during the progress of the work Such invoices shall represent the value of any completed services Invoices shall be processed for payment by the City in a timely manner 8 D Final payment ofany remaining balance will be made upon completion ofthe work and the receipt of all reports and inspection logs which are required to be furnished under this Agreement Assessment oflate fees is not allowed ARTICLE 5 LEGAL RELATIONS It is mutually agreed by the parties hereto A This Agreement shall be governed by the laws ofthe State ofMontana B The Inspector shall comply with all federal state and local laws regulations and ordinances applicable to the work to be done under this Agreement and shall defend the City in any suit arising from violations attributed to the Inspector C All provisions ofthe Contract between the Inspector and the City are made by reference apart of this Agreement D In the event arbitration is sought as the means of settling any dispute under this Agreement such arbitration shall not be effected unless specific approval is given by both parties hereto E The Inspector will make freely available to the City for examination all directly pertinent books documents papers and records of the Inspector involving transactions related to this Agreement F The Inspector hereby agrees to protect defend and indemnify the City its officers employees and agents of and from any claims damages compensation suits actions and expenses relating to any and all reasonable losses or damages sustained by or alleged to have been sustained by any persons including employees ofthe parties hereto and occasioned or allegedly occasioned by the negligent acts errors or omissions ofthe Inspector or anyone directly or indirectly employed by the Inspector while in anyway engaged in the performance ofthis Agreement G The Inspector shall provide proof of insurance to the City as follows 1 Workers compensation insurance for all employees engaged in any way on the project 2 Contractor s General Liability insurance as setforth in the Supplementary Conditions to the General Conditions of MPWSS 5th Edition and 3 Errors and Omissions Insurance and any other insurance coverage which Inspector deems to be required for the project ARTICLE 6 ATTORNEY S FEES A In the event it becomes necessary for either party to this Agreement to retain an attorney to enforce any of the terms or conditions ofthis Agreement or give any notice required herein then the prevailing party or the party giving notice shall be entitled to reasonable attorney s fees and costs including fees salary and costs of in house counsel to include the City Attorney and staff 9 ARTICLE 7 TERMINATION OF AGREEMENT A Unless earlier terminated as stipulated below this Agreement shall terminate upon completion and acceptance by the City ofall work specified under the painting Contract B This Agreement may be terminated in whole or in part in writing by either party in the event of substantial failure by the other party to fulfill its obligations under this Agreement through no fault ofthe terminating party providing no such termination may be effected unless the other party is given l at least 30 calendar days written notice delivered by certified mail return receipt requested of intent to terminate and 2 an opportunity for consultation with the terminating party prior to termination C If this Agreement is terminated in whole or in part by the City an equitable adjustment in the price provided for in this Agreement shall be made but no amount shall be allowed for anticipated profit on unperformed services D Upon receipt of a termination notice the Consultant shalll promptly discontinue all services affected unless the notice directs otherwise and 2 deliver or otherwise make available to the City all reports drawings specifications estimates summaries and such other information and materials as may have been accumulated by the Inspector in performing this Agreement 10 In witness Whereof the Parties hereto do make and execute this Agreement CITY OF BOZEMAN MONTANA INSPECTOR BY BY cA PresidentCityManager DATE DATE 8 23 0 7 ATTEST BY City Clerk 11 E 1l1Blrr A 12 PIPE AND TANKS LLC 260 SE Cessna Lane PO Box 45 Babb MT 59411 Services Ins ection Per Diem Milea e Rust never sleeps Fee Schedule Office 406 732 9277 Cell 406 270 5970 E Mail oat@oioeandtanks com Web www pipeandtanks com Effective February 01 2007 Costs new fed rate 13