HomeMy WebLinkAboutResolution No. R25-12 RESOLUTION NO. R25-12
A RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE MAYOR TO
EXECUTE AN INDEPENDENT CONTRACTOR SERVICE CONTRACT WITH
INTERSTATE POWER SYSTEMS.
BE IT RESOLVED by the City Council of the City of Laurel,Montana,
Section 1: Approval. The Independent Contractor Service Contract by and between
the City of Laurel(hereinafter"the City")and Interstate Power Systems,a copy attached hereto
and incorporated herein, is hereby approved.
Section 2: Execution. The Mayor is hereby given authority to execute the Independent
Contractor Service Contract with Interstate Power Systems on behalf of the City.
Introduced at a regular meeting of the City Council on the 281h day of January 2025, by
Council Member Wheeler.
PASSED and APPROVED by the City Council of the City of Laurel on the 281h day of
January 2025.
APPROVED by the Mayor on the 28th day of January 2025.
CITY OF LA L
.---
Dave Waggoner, M y r
ATTEST: o F urnir�i
ter- - T iQ=
e St er, Clerk-Treasurer �r ��`
APPROVED AS TO FORM:
A--u(t ktL L
Michele L. Braukmann, Civil City Attorney
R25-12 Approve Independent Contractor Service Contract by and between the City of Laurel and Interstate Power
Systems
INDEPENDENT CONTRACTOR SERVICE CONTRACT
This Contract is made and entered into this 281h day of January 2025,between the City of Laurel,
a municipal corporation organized and existing under the laws of the State of Montana whose address
is P.O. Box 10,Laurel, Montana 59044,hereinafter referred to as "City" and Interstate Power Systems,
a contractor licensed to conduct business in the State of Montana, whose address is 1140 Main Street,
Billings MT 59105, hereinafter referred to as "Contractor".
SECTION ONE
DESCRIPTION OF SERVICES
A. Purpose. City shall hire Contractor as an independent contractor to perform for City the services
described in the Bid dated January 10, 2025, attached hereto as Exhibit"A" and by this reference made
part of this contract.
B. Effective Date. This contract is effective upon the date of its execution by both Parties. Contractor
shall complete the services within 60 days of commencing work. The parties may extend the term of
this contract in writing prior to its termination for good cause.
C. Scope of Work. Contractor shall perform his/her work and provide services in accordance with the
specifications and requirements of this contract, any applicable Montana Public Work Standard(s) and
Exhibit"A".
SECTION TWO
CONTRACT PRICE
Payment. City shall pay Contractor as set forth and itemized for years 2025, 2026, 2027 for the work
described in Exhibit A. Any alteration or deviation from the described work that involves extra costs
must be executed only upon written request by the City to Contractor and will become an extra charge
over and above the contract amount. The parties must agree to extra payments or charges in writing.
Prior to final payment, Contractor shall provide City with an invoice for all charges.
SECTION THREE
CITY'S RESPONSIBILITIES
Upon completion of the contract and acceptance of the work, City shall pay Contractor the contract
price, plus or minus any additions or deductions agreed upon between the parties in accordance with
Sections one and two, if any.
SECTION FOUR
CONTRACTOR'S WARRANTIES AND RESPONSIBILITIES
A. Independent Contractor Status. The parties agree that Contractor is an independent contractor for
purposes of this contract and is not to be considered an employee of the City for any purpose hereunder.
Contractor is not subject to the terms and provisions of the City's personnel policies or handbook and
shall not be considered a City employee for workers' compensation or any other purpose. Contractor
is not authorized to represent the City or otherwise bind the City in any dealings, agreements or sub-
contracts in any dealings between Contractor and any third parties. The City is interested solely in the
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results of this contract. Contractor is solely responsible for all work and work product under this
contract,including techniques,sequences,procedures,and means. Contractor shall supervise and direct
the work to the best of his/her ability.
B. Wages and Employment. Contractor shall abide by all applicable State of Montana Rules,
Regulations and/or Statutes in regards to prevailing wages and employment requirements. Contractor
shall comply with the applicable requirements of the Workers' Compensation Act. Contractor shall
maintain workers' compensation coverage for all members and employees of his/her business, except
for those members who are exempted as independent contractors under the provisions of§39-71-401,
MCA. Contractor understands that all contractors or subcontractors working on publicly funded
projects are required to have withheld from earnings a license fee of one percent (1%) of the gross
contract price if the gross contract price is Five Thousand Dollars ($5,000) or more. This license fee is
paid to the Montana Department of Revenue pursuant to Montana law.
C. Unless otherwise specified by the terms of this Agreement, all materials and equipment used by
Contractor on the Construction Project shall be new and where not otherwise specified, of the most
suitable grade for their intended uses.
D. All workmanship and materials shall be of a kind and nature acceptable to the City.
E. All equipment, materials, and labor provided to, on, or for the Contract must be free of defects and
nonconformities in design, materials, and workmanship for a minimum period beginning with the
commencement of the work and ending one (1)year from completion and final acceptance by the City.
Upon receipt of City's written notice of a defective or nonconforming condition during the warranty
period, Contractor shall take all actions, including redesign and replacement,to correct the defective or
nonconforming condition within a time frame acceptable to the City and at no additional cost to the
City. Contractor shall also, at its sole cost, perform any tests required by City to verify that such
defective or nonconforming condition has been corrected. Contractor warrants the corrective action
taken against defective and nonconforming conditions for a period of an additional one (1) year from
the date of City's acceptance of the corrective action.
F. Contractor and its sureties are liable for the satisfaction and full performance of all warranties.
G. Contractor has examined the facilities and/or has made field examinations. Contractor has
knowledge of the services or project sought under this Contract and he/she further understands the site
conditions to be encountered during the performance of this Contract. Contractor has knowledge of the
types and character of equipment necessary for the work,the types of materials needed and the sources
of such materials, and the condition of the local labor market.
H. Contractor is responsible for the safety of the work and shall maintain all lights, guards, signs,
temporary passages, or other protections necessary for that purpose at all times.
I. All work is performed at Contractor's risk,_and Contractor shall promptly repair or replace all damage
and loss at its sole cost and expense regardless of the reason or cause of the damage or loss; provided,
however, should the damage or loss be caused by an intentional or negligent act of the City, the risk of
such loss shall be placed on the City.
J. Contractor is responsible for any loss or damage to materials, tools, work product or other articles
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used or held for use in the completion or performance of the Contract.
K. Title to all work, work product, materials and equipment covered by any payment of Contractor's
compensation by City,whether directly incorporated into the Contract or not,passes to City at the time
of payment, free and clear of all liens and encumbrances.
SECTION FIVE
INDEMNITY AND INSURANCE
Contractor shall indemnify, defend and save City, its officers, agents and employees harmless from any
and all losses, damage and liability occasioned by, growing out of, or in any way arising or resulting
from any intentional or negligent act on the part of Contractor or its agents or employees.
SECTION SIX
COMPLIANCE WITH LAWS
Contractor shall comply with all federal, state, local laws, ordinances,rules and regulations. Contractor
shall either possess a City business license or shall purchase one, if a City Code requires a business
license.
SECTION SEVEN
NONDISCRIMINATION
Contractor agrees that any hiring of persons as a result of this contract must be on the basis of merit and
qualification and further that Contractor shall not discriminate on the basis of race,color,religion,creed,
political ideas, sex, age, marital status, physical or mental disability or national origin.
SECTION EIGHT
DEFAULT
If either party fails to comply with any term or condition of this Contract at the time or in the manner
provided for, the other party may, at its option, terminate this Contract and be released from all
obligations if the default is not cured within ten (10) days after written notice is provided to the
defaulting party. Said notice shall set forth the items to be cured.Additionally,the non-defaulting parry
may bring suit for damages, specific performance, and any other remedy provided by law except for
punitive damages. The Parties hereby waive their respective claims for punitive damages. These
remedies are cumulative and not exclusive. Use of one remedy does not preclude use of the others.
Notices shall be provided in writing and hand-delivered or mailed to the parties at the addresses set
forth in the first paragraph of this Contract.
SECTION NINE
TERMINATION
Either party may terminate the contract for their convenience upon thirty days written notice sent
postage prepaid, to the addresses provided herein.
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SECTION TEN
GOVERNING LAW AND DISPUTE RESOLUTION
The Parties agree that the laws of the State of Montana govern this Contract. The Parties agree that
venue is proper within the Courts of Yellowstone County, Montana. If a dispute arises, the Parties,
through a representative(s) with full authority to settle a dispute, shall meet and attempt to negotiate a
resolution of the dispute in good faith no later than ten business days after the dispute arises. If
negotiations fail, the Parties may utilize a third party mediator and equally share the costs of the
mediator or file suit.
SECTION ELEVEN
ATTORNEY FEES
If any action is filed in relation to this agreement, the unsuccessful party in the action shall pay to the
successful party, in addition to all sums that either is ordered to pay, a reasonable sum for the successful
party's attorney's fees and all costs charges and expenses related to the action.
SECTION TWELVE
ENTIRE AGREEMENT
This contract and its referenced attachment and Exhibit A contain the entire agreement and
understanding of the parties and supersede any and all prior negotiations or understandings relating to
this project. This contract shall not be modified, amended, or changed in any respect except through a
written document signed by each party's authorized respective agents.
SECTION THIRTEENTH
ASSIGNMENT OF RIGHTS
The rights of each party under this Contract are personal to that party and may not be assigned or
transferred to any other person, firm, corporation, or other entity without the prior, express, and written
consent of the other party.
SECTION FOURTEEN
SEVERABILITY
Each provision, section, or subsection of this Contract shall stand separate and independent of every
other. In the event that a court of competent jurisdiction shall find any provision, section, or subsection
of this contract to be invalid, the remaining provisions, sections, and subsections of this contract shall
remain in full force and effect.
SECTION FIFTEEN
PARAGRAPH HEADINGS
The titles to the paragraphs of this contract are solely for the convenience of the parties and shall not be
used to explain, simplify, or aid in the interpretation of the provisions of this agreement.
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SIGNED AND AGREED BY BOTH PARTIES ON THE 28111 DAY OF January 2025.
I -, OFLAUREL CONTRACTOR
J�j'I"— -- U,
1, l 4�/ /,/A
Dave Vaggoner, Mayor Intcrstat Power lystenis
ATTEST: Employer Identification Number
i14, 41-1634357
l�OeStlq��6e-17—c lerk/Treasurer
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5 of 5
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SIGNED AND AGREED BY BOTH PARTIES ON THE 28"DAY OF January 2025.
OF LAUREL CONTRACTOR
1000 -
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Dave Waggoner, May r Interstate Power Systems
ATT ST: Employer Identification Number
e Ste er, Clerk/Treasurer
5 of 5
1 Wr ERSTATE
Power Systems
City of Laurel-Public Works January 10,2025
Nathan Herman CUST#:15240
115 West First Street
Laurel,MT 59044
Phone:406-628-9024
nherman@IaureLmt.gov
Re:Preventive Maintenance Agreement
Thank You for the opportunity to allow Interstate Power Systems to quote your generator service
inspection needs.We are sending you a(3)year service maintenance contract with the pricing for
Annual Service,Semi-Annual inspection,and Two-Hour Load Bank Test.
Kohler Generator—S/N:SGM329KNX—VID:732512—Water Treatment Plant
An Annual Service PM for 2025---------$956.53
An Annual Service PM for 2026------------$1001.75
An Annual Service PM for 2027---$1049.25
Onan Generator—S/N:B060890387—VID:217643—West Maryland
An Annual Service PM for 2025-----------$7S3.31
An Annual Service PM for 2026--------$777.94
An Annual Service PM for 2027 ---$802.89
Onan Generator—S/N:K070123536—VID:317259—Walmart Lift Station
An Annual Service PM for 2025 ----$S56.71
An Annual Service PM for 2026-- $577.00
An Annual Service PM for 2027------$S98.07
Onan Generator—S/N:C100108531—VID:317308—Village Lift Station
An Annual Service PM for 2025------------$534.79
An Annual Service PM for 2026-----------$553.43
An Annual Service PM for 2027-------$572.72
Kohler Generator—S/N:SGM32GCRC—VID:732454—Elm Street Lift Station
An Annual Service PM for 2025-----$803.33
An Annual Service PM for 2026------$828.36
An Annual Service PM for 2027-----------$854.15
Kohler Generator—S/N:SGM32HPPB—VID:732504—New Intake
An Annual Service PM for 2025------------$552.63
An Annual Service PM for 2026 569.09
An Annual Service PM for 2027-------$585.85
Billings, MT I Bismarck, ND I Cedar Rapids, lA I Chicago, IL I Davenport, IA I Des Moines, lA
argo, ND I Gary, IN I Gillette, WY I Grand Forks, ND I Iron Mountain, MI I Lincoln, NE I Minneapolis, MI
Milwaukee, WI I Omaha, NE I Rockford, IL I Sioux Falls, SD I Waterloo, lA I Williston, ND
NT ERSrATr:
Power Systems
Kohler Generator—S/N:2275332—VID:732507—Murray Street Booster
An Annual Service PM for 2025-----------$484.77
An Annual Service PM for 2026------__---$501.53
An Annual Service PM for 2027---------$518.79
Kohler Generator—S/N:0777268—VID:129772—Waste Water Treatment Plant
An Annual Service PM for 2025--------$1537.21
An Annual Service PM for 2026-----------$1619.59
An Annual Service PM for 2027--------$1706.27
The Annual would include the following procedures:change oil,change oil filters,change fuel filter,
fluids topped off,hoses checked,belts checked, battery checked,sample the oil,sample the coolant,
start and run unit to check functions. Document the procedure.
Kohler Generator—5/N:0777268—VID:732512—Water Treatment Plant
Two Hour Load Bank Test for 2025— -----------$N/A
Two Hour Load Bank Test for 2026 -----------$N/A
Two Hour Load Bank Test for 2027--------------$N/A
Onan Generator—S/N:B060390397—VID:217643—West Maryland
Two Hour Load Bank Test for 2025 $660.00
Two Hour Load Bank Test for 2026 $675.00
Two Hour Load Bank Test for 2027------ $690.00
Onan Generator—S/N:K070123536—VID:317259—Walmart Lift Station
Two Hour Load Bank Test for 2025--------------$512.50
Two Hour Load Bank Test for 2026--- ---------------$525.00
Two Hour Load Bank Test for 2027------------$537.50
Onan Generator—S/N:C100108531—VID:317308—Village Lift Station
Two Hour Load Bank Test for 2025----------------$534.79
Two Hour Load Bank Test for 2026---------------$553.43
Two Hour Load Bank Test for 2027-----------$572.72
Kohler Generator—S/N:SGM32GCRC—VID:732454—Elm Street Lift Station
Two Hour Load Bank Test for 2025—--------—------—$519.50
Two Hour Load Bank Test for 2026--------- -----$532.00
Two Hour Load Bank Test for 2027------- $544.50
Kohler Generator—S/N:SGM32HPPB—VID:732504—New Intake
Two Hour Load Bank Test for 2025 -------$617.50
Two Hour Load Bank Test for 2026 - —$630.00
Two Hour Load Bank Test for 2027-------------$642.50
Billings, MT I Bismarck, ND I Cedar Rapids, IA I Chicago, IL I Davenport, IA I Des Moines, !A
=argo, ND I Gary, IN I Gillette, WY I Grand Forks, ND I Iron Mountain, MI I Lincoln, NE I Minneapolis, MI
Milwaukee, W/ I Omaha, NE I Rockford, IL I Sioux Falls, SD I Waterloo, IA I Williston, ND
'NTER.11% i it i =
Power Systems
Kohler Generator—S/N:2275332—VID:732507—Murray Street Booster
Two Hour Load Bank Test for 2025--------______-_$617.50
Two Hour Load Bank Test for 2026---___._____—_ 630.00
Two Hour Load Bank Test for 2027------------------$642.50
Kohler Generator—S/N:SGM329KNX—VID:129772—Waste Water Treatment Plant
Two Hour Load Bank Test for 2025—-----------------$ 1695.00
Two Hour Load Bank Test for 2026---------------$1710.00
Two Hour Load Bank Test for 2027 ---------$1725.00
The Load Bank Testing would include the following:two-hour continuous load bank test with resistive
load bank.Testing at 100%of generator nameplate rating.Document the procedure.
Kohler Generator—S/N:0777268—VID:732512—Water Treatment Plant
Semi-Annual Inspection for 2025-2027----—--------------$265.00
Onan Generator—S/N:B060890387—VID:217643—West Maryland
Semi-Annual Inspection for 2025-2027 $265.00
Onan Generator—S/N:K070123536—VID:317259—Walmart Lift Station
Semi-Annual Inspection for 2025-2027-------------- --$265.00
Onan Generator—S/N:C100108531—VID:317308—Village Lift Station
Semi-Annual Inspection for 2025-2027------------------—$265.00
Kohler Generator—S/N:SGM32GCRC—VID:732454—Elm Street Lift Station
Semi-Annual Inspection for 2025-2027------------- $265.00
Kohler Generator—S/N:SGM32HPPB—VID:732504—New Intake
Semi-Annual Inspection for 2025-2027—-------—--------—$265.00
Kohler Generator—S/N:2275332—VID:732507—Murray Street Booster
Semi-Annual Inspection for 2025-2027-------------------$265.00
Kohler Generator—S/N:SGM329KNX—VID:129772—Waste Water Treatment Plant
Semi-Annual Inspection for 2025-2027------------------$265.00
The Semi-Annual inspection would include the following procedures:check oil,coolant,and battery
levels.Start and observe the performance of the unit as it operates.Check all belts,hoses,and coolant
for proper inhibitor level.Check switchgear for proper operation and run the generator under facility
load if permissible.Verify generator controller instrument operation.Test emergency and failure
shutdown and alarms.Document the procedure.
Billings, MT I Bismarck, ND I Cedar Rapids, 1A I Chicago, IL I Davenport, lA I Des Moines, IA
=argo, ND I Gary, IN I Gillette, WY I Grand Forks, ND I Iron Mountain, Ml I Lincoln, NE I Minneapolis, MI
Milwaukee, WI I Omaha, NE I Rockford, IL I Sioux Falls, SD I Waterloo, 1A I Williston, ND
Power Systems
PROPOSED SCHEDULE FOR THIS MAINTENANCE PROGRAM IS AS FOLLOWS:
January of 2025-2027:Annual Inspections and PM Services
July of 2025-2027:Semi-Annual Inspections and Load Bank Testing
Any additional parts needed during the inspections/PM that are not covered under this agreement will
be available at an additional cost.You will be notified when additional parts are necessary to maintain
peak operating condition and these parts will only be replaced with your prior authorization.
PAYMENT TERMS:NET30.Interstate Power Systems Terms and conditions apply. This document is
subject to the General Terms and Conditions and Code of Conduct,which are expressly incorporated
herein by reference,and are available at: http://www.istate.com/abOLIt/terms-and-conditions or in
hard copy upon request.
If monthly,quarterly,or yearly payments are agreed upon,and services are discontinued during the
course of this agreement,a 30-day written notice of cancellation must be provided.Additionally,
payment for services rendered up to the termination date must be made.
Please note due to the rising cost and fluctuation in petroleum/oil prices,additional fuel surcharges may
apply.
Tax and environmental charges are not included.
Thank You in advance for your time and consideration.Should you have any questions please contact
me.
This order accepted by:
Name: C�em'
Title: l
Signature:
Date:
Benjamin West I Branch Manager I Interstate Power Systems
1140 Main Street I Billings, MT 59105
P:406.252.41911 Ext:3075691 C: 406.927.6114
istate.com I Facebook I Linkedln
Pride in Service
Billings, MT I Bismarck, ND I Cedar Rapids, lA I Chicago, IL I Davenport, lA I Des Moines, IA
=argo, ND I Gary, IN I Gillette, WY I Grand Forks, ND I Iron Mountain, MI I Lincoln, NE I Minneapolis, MI
Milwaukee, W/ I Omaha, NE I Rockford, IL I Sioux Falls, SD I Waterloo, lA I Williston, ND