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HomeMy WebLinkAboutResolution No. 2019-31tlre eityDf, KENAI, ALASKA ~ CITY OF KENAI RESOLUTION NO. 2019-31 Sponsored by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT FOR MANAGEMENT SERVICES TO PROVIDE SUMMER ICE ACTIVITIES AT THE CITY OF KENAI MUL Tl-PURPOSE FACILITY. WHEREAS, the City has been contracting with a contractor to provide summer ice at the Kenai Multi-Purpose Facility during the months of May through September; and , WHEREAS, in exchange for the payment of utilities the contractor maintains the facility and independently runs certain services including youth camps, tournaments and public skates benefiting the local community; and, WHEREAS, the City's three year contract to maintain the facility and perform management and administrative services for summer ice ended September 30, 2018 ; and , WHEREAS, the City advertised in the Clarion Newspaper and solicited other potential interest for managing the facility for summer ice activities; and, WHEREAS , Red Line Sports was the only response to the solicitation for management services and the recommendation of the Administration is to award the Contract for Contract Management Services to Red Line Sports; and, WHEREAS, it is in the best interest of the City of Kenai to authorize the City Manager to enter into such agreement with Red Line Sports on behalf of the City. NOW, THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That a Contract for Management Services at the City of Kenai Multi-Purpose Facility for summer ice activities is awarded to Red Line Sports and the City Manager is authorized to execute an Agreement with generally the same terms as the previous agreement for the period beginning May 25, 2019 and ending September 30 , 2021 . Section 2. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA , this 15th day of May, 2019. ~~&J .£ MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation Director DATE: May 7, 2019 SUBJECT: Resolution No. 2019-31 – Management Services Contract for Summer Ice Activity at the Kenai Multi-Purpose Facility ____________________________________________________________________________ Purpose of this correspondence is to notify you that the seasonal three year term contract for management services to provide summer ice activities at the City of Kenai Multi-Purpose Facility has expired. The City advertised in the Clarion Newspaper and solicited other potential interest for managing the facility for summer ice activities. Red Line Sports was the only response to the solicitation for management services. If approved, Red Line Sports will provide summer ice activities at the Kenai Multi-Purpose Facility during the months of May through September in exchange for payment of utilities, Zamboni rental and public skates benefiting the local community. Thank you for your consideration. Contract for Services at City of Kenai Multi-Purpose Facility Page 1 of 9 CONTRACT FOR SERVICES AT CITY OF KENAI MULTI-PURPOSE FACILITY THIS AGREEMENT is made this ___ day of _______________ 2019, by and between the CITY OF KENAI (Owner), 210 Fidalgo Avenue, Kenai, AK 99611-7794, and DBA Red Line Sports (Contractor), owned by Vince Redford, an individual, 168 Trumpeter Ave, Soldotna, AK 99669(address). WITNESSETH: WHEREAS, Owner desires to contract for annual management and administrative services of the facility in order to provide summer ice at the Multi-Purpose Facility, and; WHEREAS, the Owner advertised and solicited interest for the right to perform management and administration services for the purpose of providing summer ice skating activities, and; WHEREAS, Red Line Sports and the Owner have come to an agreement regarding the terms and conditions of such a contract. NOW, THEREFORE, the parties hereto agree as follows: I. Beginning each year on May 23 through September 30 Contractor shall provide and perform management and administration of the City of Kenai Multipurpose Facility for Summer Ice Activities -beginning May 23, 2019 and ending September 30, 2021. 2. All personnel furnished by Contractor shall be employees of Contractor, and Contractor shall pay all salaries and expenses of, and all federal social security taxes, federal and state unemployment taxes, and any similar payroll taxes relating to such employees. Contractor is an independent contractor, and it will not at any time directly or indirectly act as an agent, servant, or employee of the Owner, or make any commitments or incur any liabilities on behalf of the Owner without its express written consent. Contract for Services at City of Kenai Multi-Purpose Facility Page 2 of 9 3. Contractor shall provide all proper safeguards and assume all risks incurred in performing its services hereunder. 4. Contractor shall provide the insurance coverage set forth herein and deliver to Owner certificates of insurance in accordance therewith within ten days of the signing of this Agreement and before any services are performed under this Agreement. 5. Contractor is responsible for the direct supervision of its personnel through his designated representative, and such representative shall in tum be available at all reasonable times to report and confer with the designated agents of the Owner with respect to services rendered. The designated agent for Contractor is Vince Redford. 6. Contractor agrees that the services to be provided hereunder shall be performed by qualified, careful and efficient employees in strict conformity with the best practices and highest applicable standards. 7. In exchange for the right to manage and administer the facility, Contractor agrees to make monthly payments to the Owner for actual utility costs (less the City's average summer carrying costs) and use of the City's Zamboni ($25 per day). The estimated cost based on historical utility usage is approximately $13,389.90. An ice installation credit, representing the costs of ice installation, will be credited to contractor as long as usable installed ice in a condition meeting general industry standards remains in the facility as of September 30, of each year of the contract. Contractor will be invoiced for utility costs and Zamboni use on the first day of each following month, and payment to the owner will be due on the 15th of each month. 8. Ice Scheduling, reservations, scheduling and collection of program fees shall be the responsibility of the Contractor. Public Skate times shall be offered throughout the week at a minimum of 1.5 hours per week and a minimum of 2-hours per week shall be dedicated to Open Skate. All Public Skate and Open Skate times shall be publicly advertised. 1. An estimate and example is provided in Attachment A. Contract for Services at City of Kenai Multi-Purpose Facility Page 3 of 9 9. The Contractor shall perform ice installation and provide necessary material and supplies, such as ice paint, line kits and goal kits. 10. The Ice Resurfacing Machine (Zamboni) is owned by the City of Kenai. The Contractor and his/her designee shall perform all Zamboni driving and perform ice resurfacing at scheduled times. 11. Purchase of propane for the purposes of filling the Zamboni shall be the responsibility of the Contractor. 12. Routine Maintenance and Operations of lce Resurfacing Machine (Zamboni) shall be the responsibility of the Contractor. The Contractor shall perform the following routine maintenance operations: 1. Perform oil/fluids and perform changes at manufacturer's prescribed maintenance schedule. 2. Purchase lubricant and lubricate fittings and moving parts per manufacturer's prescribed maintenance schedule. 3. Remove, install, and adjust Zamboni blades prior to and after sharpening. The Contractor shall be responsible for sharpening of the blades. 4. Remove, change and install board brushes on Zamboni as needed. 5. Wash and wax Zamboni. 6. Regular maintenance of tires on Zamboni . All major repair work such as, but not limited to, internal or external engine work, drive train, auger bearings, hydraulic or cooling system leaks shall be the responsibility of the Contractor. All repair work and preventative maintenance shall be documented and submitted to the City of Kenai at the end of the summer ice session. A daily inspection of the Zamboni shall be documented and submitted to the City of Kenai at the end of the summer session. 13. The Contractor shall perform ice edge maintenance as necessary. Contract for Services at City of Kenai Multi-Purpose Facility Page 4 of 9 14. Lock-Up and Security. The Contractor shall be responsible for securing the Zamboni and performing daily or nightly facility lock-up. 15. The Contractor shall assume responsibility for general cleanliness of Facility. This shall include, but not limited to, cleaning of bleachers, sweeping of warming shacks, litter control, sweeping/mopping of mats and perimeter area, and cleaning/disinfecting restroom facility, and stocking of restroom products. 16. The Contractor shall be responsible for routine maintenance of the rink boards, glass and goals. Routine maintenance of the rink boards and glass shall include, but not limited to, light repair work and cleaning as needed. 17. Electrical. The City shall be responsible for maintenance of electrical components related to the Facility, unless stated otherwise in the Agreement. 18. Refrigeration System. The Contractor shall be responsible for routine and preventative maintenance of the refrigeration system as specified by the manufacturer. Purchase of oil and refrigeration chemicals needed to operate the refrigeration system shall be the responsibility of the Contractor. The Contractor or his/her employees shall perform light repair work as needed to all mechanical and machinery components related to the refrigeration system i.e., compressors, pumps, belts, electrical circuits, plumbing, motors and controls with exception to warranty work. The system shall be inspected daily and maintained in good functioning order required to operate the facility and make artificial ice. All daily inspection and maintenance records shall be posted for review and submitted to the City at the end of season. The Contractor shall follow industry standards and be sensitive to energy costs by operating the refrigeration system in the most efficient manner possible without sacrificing quality of ice. This may include, but is not limited to, monitoring outside temperatures, shutting down compressor and pumps at night, and maintaining proper ice thickness. Contract for Services at City of Kenai Multi-Purpose Facility Page 5 of 9 19. Major repair work or replacement of machinery and equipment shall be the responsibility of the Contractor. Major repair work may include, but is not limited to, internal or external engine or equipment work. The City will be responsible for administering subcontracts or agency agreements related to the O&M of the Facility and the refrigeration system, if needed. 20. Permits, Regulations and Certificates. The Contractor or any of his/her designees working with or handling Freon must possess a valid EPA Recovery Technician Type II Certificate. Proof of certification must be submitted to the City and a copy of such certification posted on the premises. The Contractor and his/her designee must comply with all applicable federal, state and local government laws, regulations and permits. 21. The Contractor shall be responsible for all related utility costs. 22. Insurance Requirements & Indemnification: a. General The Contractor shall not commence work until he has obtained all insurance required under this section and has satisfied the City in this respect; nor shall he allow any subcontractor to commence work until he also has obtained similar insurance which is applicable to his work. The Contractor shall maintain insurance throughout the life of this Contract. Such insurance shall be by a company/corporation currently rated "A-"or better by A.M. Best. b. Workmen's Compensation Insurance The Contractor shall obtain and maintain during the life of this Contract, workmen's compensation insurance for all employees who will work on this project, and if any work is sublet, the Contractor shall require the subcontractor similarly to provide such insurance for all of the latter's Contract for Services at City of Kenai Multi-Purpose Facility Page 6 of 9 employees unless they are included under the protection afforded by the Contractor. If employees engaged in hazardous work are not protected under the AS23.30, by workmen's compensation insurance, the Contractor and any subcontractor who is affected must provide compensation insurance with a private company which in amount shall be equivalent to that provided by the Alaska workmen's compensation insurance for the protection of employees who are not so engaged. The minimum limits of coverage shall be: (A) Alaska Worker's Compensation and (A) Statutory (B) Employer's Liability Insurance (B) $1,000,000 per occurrence All workman's compensation policies or endorsements thereto shall in all cases where possible contain a waiver of subrogation against the City. c. Bodily Injury, Property Damage and Vehicle Liability Insurance The Contractor shall obtain and maintain in force during the life of this Contract such general liability and property-damage insurance as shall protect the City and the Contractor against losses which may result from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from any operations under this Contract, whether such operations be those of the Contractor, a subcontractor or anyone directly or indirectly employed by either of them and the amount of such insurance shall be as f ollows unless modified by the Special Provisions of these specifications. The minimum limits of coverage shall be: General Liability Bodily Injury & Property Damage $1,000,000 (Five Hundered Thousand Dollars) Combined Single Limit per occurrence Auto Liability with included Operations, Contractual Liability, and Owned, Hired, and Non-owned Vehicles $300,000 (Three Hundred Thousand Dollars) Combined Single Limit per occurrence Contract for Services at City of Kenai Multi-Purpose Facility Page 7 of 9 All general liability policies or endorsements thereto shall in all cases where possible name the City as Additional Named Insured thereunder and shall contain a waiver of subrogation against the City. d. Subcontractor's Bodily Injury and Property Damage Insurance and Vehicle Liability Insurance The Contractor shall either (1) require each of his subcontractors to procure and to maintain during the life of his subcontract, Subcontractor's Bodily Injury and Property Damage Insurance and Vehicle Liability Insurance of the type and in the amounts specified in subparagraph (c) hereof or, (2) insure the activities in his policy, specified in subparagraph (c) hereof. e. Scope of Insurance The insurance required under subparagraphs (c) and (d) hereof shall provide adequate protection for the Contractor and his subcontractors, respectively, against damage claims which may arise from operations under this Contract, whether such operations be by the insured or by anyone directly or indirectly employed by him. f. Proof of Carriage of Insurance The Contractor shall furnish the City with certificates showing the type, amount, class of operations covered, effective dates and date of expiration of policies. Such certificates shall also contain substantially the following statement: "The insurance covered by certificate will not be canceled or materially altered, except after twenty (20) days written notice has been received by letter by the City of Kenai." 23. Indemnification To the fullest extent permitted by law, the Contractor shall indemnify, defend, and hold harmless the City of Kenai and its agents, officers, and employees from and against all claims, damages, Contract for Services at City of Kenai Multi-Purpose Facility Page 8 of 9 losses and expenses including attorneys' fees arising out of or resulting from the performance of the Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease, death or personal injury, or to injury to or destruction of tangible property including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder . In any and all claims against the City of Kenai or its agents, officers, or employees by any employee of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, the indemnification obligation under this Article shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Contractor or any subcontractor under Worker's Compensation acts, disability benefit acts, or other employee benefit acts. 24. This Agreement may be terminated with cause by giving fifteen (15) days written notice by certified mail to the other party. Cause is defined as the violation of the terms and conditions of this Agreement. The City may terminate without cause with thirty (30) days written notice. Termination of this Agreement by the Contractor without cause shall cause the Contractor to be liable to the City for any increased costs of procuring the services provided in this Agreement and any other damages provided by law. This Agreement, together with the attached Specifications, contains all of the covenants and agreements between said parties with respect to the subject matter of this Agreement. 25. The parties may by mutual written consent amend the terms of this Agreement. IN WITNESS WHEREOF, parties have caused this Agreement to be executed as of the date first above written. CITY OF KENAI RED LINE SPORTS Contract for Services at City of Kenai Multi-Purpose Facility Page 9 of 9 By: _________________________ By: Paul Ostrander Vince Redford Its: City Manager Its: Owner STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY the foregoing instrument was acknowledged before me this ___ day of ______________, 2019, by Paul Ostrander, City Manager of the City of Kenai, a home rule municipality, on behalf of the City. Notary Public in and for Alaska My Commission expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY the foregoing instrument was acknowledged before me this ____ day of ______________, 2019, by Vince Redford, Owner of Red Line Sports., an Alaska corporation, on behalf of the corporation. Notary Public in and for Alaska My Commission expires: Approved as to form: ______________ _________ Scott M. Bloom City Attorney ATTACHMENT A Kenai Multi-Purpose Facility Calculation of Facility Rental Rates for Summer of 2019 EXPLANATION/CALCULATION OF EXPENSES Cost of Electricity per Month $12,500.00 ($13,800 less average summer cost of $1,300/month) Cost of Natural Gas per Month 140.00$ ($300 less average summer cost of $160/month) COST OF ICE INSTALLATION (IF ICE STAYS IN UNTIL HOCKEY SEASON) Unit Quantity Unit Cost Sub-Total Ice Paint/Stripe Kit EA 1 500.00$ 500.00$ Ice Maintenance Contractor HR 40 40.00$ 1,600.00$ Laborer HR 8 20.00$ 160.00$ Electricity Day 3 416.67$ 1,250.01$ Natural Gas Day 3 14.00$ 42.00$ Total 3,552.01$ DAILY COST OF ICE OPERATION Unit Quantity Unit Cost Sub-Total Electricity Day 1 416.67$ 416.67$ Natural Gas Day 1 4.67$ 4.67$ Zamboni Day 1 25.00$ 25.00$ Total 446.34$ Description of Cost Item Description of Cost Item