HomeMy WebLinkAboutIX-03 Accept Proposal and Authorize Work - Industrial Park Water Tower Reconditioning City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Ryan Stempski – Public Works Director/City Engineer
Date: February 5, 2024
Item: Accept Proposal and Authorize Work – Industrial Park Water Tower Reconditioning
Council Action Requested:
The Council is requested to authorize the City to enter into a contract with KLM Engineering, Inc. for the
purposes of utilizing their professional services to assist the City with design and bidding, construction
management and inspection, antenna inspection, and warranty inspection for reconditioning of the
Industrial Park Water Tower.
Background Information:
This construction work is planned in 2025, but water tower reconditioning contractors are in high
demand due to supply chain delays and labor shortages. Additionally, it is best practice for these design
and bidding services to be completed in 2024 to put us in a position to obtain competitive pricing with a
contractor that could start work as early as possible in 2025 (estimated in April if weather allows). This is
critical as we plan for the water tower to be back online in advance of peak usage during the hot and dry
summer months. For these reasons staff is requesting authorization of the required engineering
services to complete plans and specifications in order to get this project out to bid in 2024, and secure a
qualified contractor to complete the work in 2025. The construction costs for structural repairs and
replacing the interior and exterior coatings on the Industrial Park Water Tower are estimated to be
$1,600,000.
Financial Impact:
The estimated cost for engineering services is $16,000 would require a 2024 budget amendment to be
completed this year.
KLM’s proposal would also include a not-to-exceed amount of $102,486 for construction management
and observation in 2025. The warranty inspection work for $3,500 would occur in 2027 prior to the
expiration of the 2-year warranty bond. Antenna Inspections for carriers to remove equipment from the
water tower would also be covered by KLM at the expense of each carrier (escrow of $9,000 per carrier
to be collected and one City/Emergency antenna for $3,000 to be paid by the City of Hastings).
Attachments:
KLM Proposal for Reconditioning Services
IX-03
HASTINGS, MINNESOTA
Proposal for
Reconditioning Services
February 1, 2024
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February 1, 2024
Sent via Email Only
Mr. Ryan Stempski, P.E.
Public Works Director
City of Hastings
1225 Progress Drive
Hastings, MN 55033
RE: 1,000,000-Gallon Hydropillar “Industrial Park Tower”
Hastings, Minnesota
Dear Mr. Stempski:
Thank you for the opportunity to submit this proposal to provide consulting and inspection services during the
rehabilitation of the above-referenced water tank.
KLM is a consulting and inspection firm specializing in water storage tanks. Our staff has credentials associated
with AWS Welding and AMPP coating inspections. We bring together key components from all aspects of
services to fulfill each of our clients’ goals and expectations.
The professionals at KLM have been working on water towers since the 1970’s. We have combined experience
of over 150 years and have rehabilitated over 500 water towers of various sizes. With KLM professional
inspections, a tower’s coating system can last 25 – 30 years.
KLM sets the standards that other companies strive to duplicate. No firm receives the respect from tank
contractors and subcontractors like KLM. Our inspectors climb the towers daily to inspect and document the
work; holding contractors accountable for quality workmanship and ensure that the specifications are met. Our
dedication to quality inspections can be seen nationally, as our projects are represented each year in Tnemec’s
Tank of the Year calendar contest.
We look forward to the opportunity to assist the City of Hastings on this project. With our team’s expertise, we
are confident this project will be completed to your satisfaction.
Sincerely Yours,
KLM ENGINEERING, INC.
Dewey Prinzing
Vice President of Business Development
1976 Wooddale Drive, Suite 4
Woodbury, MN 55125
Cell: 651-434-4321
Email: dprinzing@klmengineering.com
REV 2023.11.14
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TABLE OF CONTENTS
Project Profiles .......................................................................................................................... 4
References ................................................................................................................................ 6
FIRM PROFILE & TEAM MEMBERS ..................................................................................... 7
About Us.................................................................................................................................... 8
Regional Offices ........................................................................................................................ 8
Insurance Coverage................................................................................................................... 9
Professional Affiliations ............................................................................................................ 9
Project Team Chart ................................................................................................................. 10
Project-Specific Team Member Resumes ............................................................................... 11
PROPOSAL ...................................................................................................................... 15
Project Understanding ............................................................................................................ 16
Benefits to the City of Hastings............................................................................................... 16
Timeline................................................................................................................................... 17
Design ...................................................................................................................................... 17
Specifications .......................................................................................................................... 17
Construction Services.............................................................................................................. 19
Antenna Inspection ................................................................................................................. 20
Warranty Inspection ............................................................................................................... 20
Deliverables ............................................................................................................................. 21
Fee Summary .......................................................................................................................... 21
Why Use KLM .......................................................................................................................... 21
Agreement .............................................................................................................................. 22
KLM SUPPORT DOCUMENTS ........................................................................................... 23
KLM Terms and Conditions ..................................................................................................... 24
DISCLAIMER:
The information in this proposal is confidential, may be legally privileged, and is intended for the sole
use of City of Hastings. Access to this proposal by another company is not permitted. If you are not the
intended recipient, any disclosure, copying, distribution of any action taken or committed in reliance on
it is prohibited.
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PROJECT PROFILES
KLM has an unparalleled record of consistently delivering successful projects like yours. KLM has
planned, designed and refurbished water towers for the past twenty-nine (29) years. The longevity of
the coatings system of our projects is what we are most proud of. What owners most appreciate is the
return-on-investment KLM brings to each new construction or rehabilitation project. This section
highlights projects KLM has completed.
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REFERENCES
The following is a summary list of the projects from the past five (5) years. A more complete list of
references can be provided upon request.
Reconditioning Projects
Moorhead, MN
500,000 Gallon Single Pedestal
Owner/Client: Moorhead Public Service, MN
Contact: Marc Pritchard 218-477-8082
*2018 Tnemec Tank of the Year Runner-Up
Eden Prairie, MN
2,000,000 Gallon Composite
Owner/Client: City of Eden Prairie, MN
Contact: Rick Wahlen 952-949-8530
*2017 Tnemec Tank of the Year 2nd Runner-Up
Great Falls, MT
750,000 Gallon Elevated Water Tower
Owner: City of Great Falls, MT
Client: AE2S
Contact: Nathan Weisenburger 406-217-3711
Fargo, ND
500,000 Gallon Single Pedestal
1 Million Gallon Composite
Owner: City of Fargo, ND
Client: AE2S
Contact: Kevin Johnson 218-299-5610
Farmington, MN
1,500,000 Gallon Hydropillar
Owner/Client: City of Farmington, MN
Contact: Katy Gehler 651-280-6846
Mineral Point, WI
400,000 Gallon Hydropillar
Owner: Mineral Point, WI
Client: Delta 3 Engineering, Inc.
Contact: Bart Nies, PE 608-348-5355
Eagan, MN
4,000,000 Gallon Ground Storage Reservoir
Owner/Client: City of Eagan, MN
Contact: Jon Eaton 651-675-5215
Randolph, MN
100,000 Gallon Oblatoid
Owner/Client: City of Randolph, MN
Contact: Benny Svien 507-645-7492
Sioux Falls, SD
1,500,000 Gallon Composite
Owner/Client: City of Sioux Falls, SD
Contact: Darin Freese 605-373-6971
Asbury, IA
400,000 Gallon Single Pedestal
Owner/Client: City of Asbury, IA
Contact: Tony Carr 563-582-4151
Plymouth, MN
2,000,000 Gallon Toro Spheroid Tower
Owner: City of Plymouth, MN
Client: City of Plymouth
Contact: Michael Thompson 763-509-5501
Menomonie, WI
750,000 Gallon Single Pedestal
Owner: City of Menomonie, WI
Client: Cedar Corp.
Contact: Jeremy Hoyt (Menomonie) 715-232-2395
Vermillion, MN
50,000 Gallon Hydrocone
Owner/Client: City of Vermillion, MN
Contact: Mark Peine 651-248-3108
St. Croix Falls, WI
150,000 Gallon Single Pedestal
Owner/Client: City of St. Croix Falls, WI
Contact: Matt Larson 715-483-3929
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FIRM PROFILE
&
TEAM MEMBERS
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ABOUT US
Founded in 1995, KLM Engineering, Inc. is a consulting and inspection firm. On average, KLM completes
over 150 water storage projects each year for clients across the United States. KLM specializes in:
Inspection services on new and reconditioned elevated water towers, ground storage reservoirs,
water treatment plants, wastewater treatment plants and concrete tanks during construction.
Inspection and evaluations of existing concrete and steel storage tanks, pressure vessels, and
other related structures.
Design Build services.
Preparation of project specifications for tank rehabilitation/lead paint abatement and disposal.
Welding inspection during rehabilitation.
Tank cleanings.
Non-destructive testing.
Antenna lease reviews, removal and installation inspections, and drawing reviews.
Wastewater treatment plant inspections.
Our Engineers Are:
Experienced in design and structure modifications based upon years of employment with tank
fabricators, erectors and consulting engineers.
Experienced at examining existing tanks regarding corrosion, structure integrity and fitness for
continued service.
Registered Professional Engineers with practical knowledge of current designs and code
requirements.
Our Inspectors Are:
Association for Materials Protection & Performance (AMPP), formerly NACE, trained/certified
protective coating inspectors.
American Welding Society (AWS) associate/certified welding inspectors.
Experienced journeyman painters, climbers and riggers with the proven abilities to perform
proper hands-on inspections and testing.
Experienced in project management and enforcement of specifications for quality control and lead
abatement.
REGIONAL OFFICES
Headquarters | Woodbury, Minnesota
Great Lakes Region | New Lenox, Illinois
West Central Region |Blue Springs, Missouri
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INSURANCE COVERAGE
Our firm maintains general liability, automotive, professional liability insurance and workers
compensation. A certificate of insurance, listing the client as additional insured, will be provided upon
execution of a contract.
PROFESSIONAL AFFILIATIONS
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PROJECT TEAM CHART
Designed Specifically For:
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PROJECT-SPECIFIC TEAM MEMBER RESUMES
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PROPOSAL
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PROJECT UNDERSTANDING
KLM understands the City of Hastings is planning on reconditioning the Industrial Park Tower. KLM met
with City staff to gain a full understanding of the schedule and what is important to determine the best
path forward for protecting the asset for continued service.
The tower was constructed in 1997. The coatings have protected the tower adequately over the past
24 years; however, time has come to replace the coatings to protect the substrate for continued
service.
Key project team members were brought together to review the 2022 evaluation report to identify the
services required to bring the tower up to current AWWA standards, Minnesota Department of Health
and OSHA codes.
KLM proposes to provide design, bidding, and inspection services during the reconditioning of the
tower to ensure the maximum lifecycle of the coating application.
BENEFITS TO THE CITY OF HASTINGS
Today’s protective coating systems are designed to last 25-30 years with only minor maintenance. Tight
project specifications and full-time inspections give the coating systems the opportunity to realize their
intended service life.
1. The reservoir-specific submittals will be reviewed to verify conformance to the specifications,
AWWA, OSHA, and State regulations. KLM will respond in writing regarding the acceptance of the
submittals.
2. KLM proposes to prepare a technical specification package specifically designed for water tower
reconditioning. Our experience has shown that the more comprehensive the specification is, the
more likely it is that the project is completed on time, on budget, with quality workmanship. The
technical specifications mitigate requests for change orders during reconditioning.
3. Welding & full-time AMPP Coating Inspections during reconditioning assures that the work
performed by the contractor is in conformance with the specifications, as to maximize its life
expectancy. KLM’s inspectors monitor workmanship during all phases of work to verify the
contractor’s work meets the specification. Utilizing this process reduces reconditioning cycles
over the life of the tank.
4. Our project administration and inspection services provide a buffer between the project
specifications and the real-world challenges that can negatively affect the project performance.
To initiate the project correctly, KLM’s project management assures that a qualified contractor is
retained at an appropriate cost.
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TIMELINE
Upon execution of an agreement, KLM proposes the following schedule to perform the work:
A. Specifications Development.
Completed in 60 – 90 days.
B. Bidding Services.
Completed by end of August.
C. Construction Management & Inspection Services
Completed in 2025
D. Warranty Inspection (2 year)
ROV, Completed per Agreement.
DESIGN
KLM will also perform the following related specification services:
1. Meet with the Owner to review plans and specifications.
2. Produce preliminary and completed copies of the specifications for the Owner.
3. Provide an updated cost estimate.
4. Advertise specifications.
5. Attend and facilitate a mandatory pre-bid meeting, virtually.
6. Respond (in writing) to bidder questions.
7. Tabulate results for Owners.
8. Evaluate contractors’ bid proposals for conformance to the specification.
9. Make a written recommendation to the Owner on the low, qualified bidder(s).
10. Prepare Notice of Award and contract Agreement (forward to Owner).
SPECIFICATIONS
The project specifications will include:
a. Advertisement for Bids
This section provides a detailed description of the project and meets the requirements for legal
advertisements.
b. Instruction to Bidders
This section provides precise instructions to bidders, including the scope of work, insurance,
payments, time of completion, bidder qualifications, taxes and permits, legal requirements,
performance and payment bonds and other important project information.
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c. Bid Forms
This section contains the bid proposals, construction time frame, alternate bid proposals, legal
requirements and the bidder and subcontractor qualification forms.
d. Project Requirements
This section includes a complete description of the project, project schedule(s), execution of
contract documents, notice to proceed, project meetings, quality assurance, liquidated damages
and legal and technical requirements for executing the scope of work.
e. Technical Specifications
This section details the technical specifications for structural modifications, surface repairs, interior
and exterior surface preparation, exterior abrasive blast, containment, disposal of spent abrasives,
dehumidification, lettering and logo, submittals, workmanship, unfavorable weather conditions,
protective coating and material, repair work, health and sanitary facilities, clean up, ventilation and
safety requirements, inspection of work, sterilization of tank interiors and containment plan.
f. Supplemental Conditions
This section supplements or amends the General Conditions and/or other provisions of the
Contract Documents.
g. General Conditions
This section includes all the General Conditions designed for water tank reconditioning, such as
authority of the Engineer, engineering inspection, modifications, additions and subtractions of
scope of work, extensions of time, insurance and other appropriate items.
h. Contract Documents
This section provides the form of agreement to be used between the Owner and Contractor.
i. Payment and Performance Bond
Bonds for payment and performance are required for this project, as specified by state law.
j. Appendix A – Photos
This section includes copies of color photographs. This provides the contractor with a clear
perspective of the interior/exterior conditions of the tank and the scope of work involved.
k. Appendix B – Drawings
This section includes drawings, which define structural repairs or modifications and welding
definitions.
l. Appendix C – Surface Preparation Requirements
This section references excerpts from AMPP Standard Practice SP0178-2007 Standard Practice:
Design, Fabrication and Surface Finish Practices for Tanks and Vessels to Be Lined for Immersion
Services for defining welding and grinding requirements of the structural repair or modifications.
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m. Appendix D – Paint Chip Lead Test Results
This section contains paint chip test results for lead and chromium used to calculate the risk factor
and classification of containment required for conformance with Federal and State Environmental
Regulations.
n. Appendix E – Lettering and Logo (optional)
If required, this section includes drawings of any required lettering and logo. Such drawings are to
be provided by Owner.
CONSTRUCTION SERVICES
Construction Administration
The project manager and project supervisor work together on managing the project. KLM performs the
review of the submittals and communicates with the inspector daily to help enforce the project
specifications, as necessary. The project supervisor is the main contact between the contractor
representative and the Owner/Engineer. The project manager performs the final review of the
submittals and will assist the supervisor, as required.
Construction Management Consists of The Following:
Attend the pre-construction conference.
Removal of cellular equipment.
Periodically perform on-site review of project’s work status and report to the Owner.
Coordinate progress meetings, as necessary.
Review of meeting minutes.
Scheduling of inspections.
Project close-out administration.
Establishes warranty date.
Review of inspector’s daily documentation.
Process change-orders.
Prepare monthly payment request forms.
Review & approve of the contractor’s submittals:
✓ Drawing reviews.
✓ Welder Certifications.
✓ Welder Qualifications
✓ Welding Procedures.
✓ Coating Materials Submittal.
✓ TLCP Sampling Plan.
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Construction Observation
The inspector assigned to this project will be an AMPP Coating Inspector and/or AWS Certified Welding
Inspector. All our inspectors have extensive practical experience and knowledge of water storage tank
reconditioning. They are experienced sandblasters, painters, climbers, riggers, coating inspectors,
welders and welding inspectors which allow the inspector to perform inspections alongside the
contractor to ensure the conformance to the project specification.
Field Inspections Consist of the Following:
A pre-construction meeting with the client and contractor to clearly define the role of the Engineer
and Inspector, to discuss the intent of the specifications, and to ensure all parties agree to the
scope of work and expectations regarding the quality of work.
Monitor and approval of the structure repairs and modifications for conformance to the
specifications.
Inspection of the abrasive blasting media and equipment for conformance to the specifications and
to prevent contamination of surfaces during surface preparation with moisture and oil or other
contaminants.
Monitor the paint removal and disposal process for conformance to the specifications and
environmental regulations.
Monitor the contractors mixing and application of the coats for conformance to the specifications
and the coat manufacturer’s recommendations.
Approve surface preparation samples.
Record the contractor’s progress for adherence to the construction schedule.
Submit daily and weekly inspection reports & photos. Prepare and file copies of the reports on
construction activities.
Coordinate and review testing of materials for conformance to the specification and environmental
regulations.
Monitor punch list items and subsequent corrective action by the contractor.
Final inspection, substantial completion and project acceptance.
ANTENNA INSPECTION
The City is responsible for establishing escrow accounts from each cellular provider prior to the
commencement of the rehabilitation. Cellular antenna management fees for engineering and
inspections services are paid for by the carriers through these accounts. Antenna management fees
during reconditioning are $9,000 per carrier and $3,000 for any City antennas.
WARRANTY INSPECTION (2 Year)
KLM proposes to perform a ROV warranty inspection on the referenced tank prior to the expiration of
the performance bonded warranty. The warranty inspection will include an inspection report. The fixed
fee does not include any necessary warranty repair work required.
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DELIVERABLES
The city owns and retains this documentation. KLM also retains these records for future reference.
Deliverables submitted electronically, unless indicated hard copy.
Professional Engineering Certified plans and specifications.
State Regulatory documentation including permitting, State Agency or Department of Health, TCLP
Texting and Waste Tracking.
Contractor Submittals.
Daily Logs & Weather Logs.
Surface Preparation.
Daily Digital Photos.
Weekly Summary & Progress Meetings.
Project Acceptance Certificate.
Warranty Inspection Report (Owner & Contractor).
FEE SUMMARY
KLM Engineering estimates this to be a fourteen (14) week project. KLM will manage the water tower
rehabilitation with project management, welding inspection, coating inspection, antenna inspection and
a ROV warranty inspection, as detailed below.
Specification, Bidding Assistance & Submittal Reviews - 2024 $ 16,000.00
Construction Management and Observation - 2025 $102,486.00
TOTAL HOURLY, NOT TO EXCEED $118,486.00
Warranty Inspection 2027 $ 3,500.00
Antenna Inspections, Per Carrier $ 9,000.00
City/Emergency Antennas $ 3,000.00
WHY USE KLM
KLM Engineering, Inc. has been evaluating water towers for over 29 years. KLM is the leader in providing
engineering and inspection services during reconditioning of towers greater than 500,000-gallons in
Minnesota. Our reference list has customers including the US Military, US Steel, Indian Health Services,
State of Minnesota and municipalities ranging from coast-to-coast and beyond, including Hawaii.
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AGREEMENT
This proposal is valid for thirty (30) days from the date of this proposal. If the City of Hastings finds this
proposal acceptable, please sign and return it by mail, fax or email. By signing and returning this
signature page only, you agree to the terms of the entire proposal document submitted.
This Agreement, between Hastings, Minnesota and KLM Engineering, Inc. is accepted by:
CITY OF HASTINGS
1225 Progress Drive
Hastings, MN 55033
KLM ENGINEERING, INC.
1976 Wooddale Drive, Suite 4
Woodbury, MN 55125
Signature Signature
Dewey Prinzing
Name Name
Vice President of Business Development
Title Title
January 19, 2024
Date Date
We look forward to working with you.
Sincerely,
KLM ENGINEERING, INC.
Dewey Prinzing
Vice President of Business Development
1976 Wooddale Drive, Suite 4
Woodbury, MN 55125
Cell: 651-434-4321
Email: dprinzing@klmengineering.com
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KLM
SUPPORT DOCUMENTS
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KLM ENGINEERING, INC. (KLM)
TERMS AND CONDITIONS
1. AGREEMENT. The agreement between the parties when entered by the parties shall include the
applicable referenced agreement documents (i.e., KLM proposal/Agreement) and shall include these
KLM Terms and Conditions (the “Agreement”). The Agreement may not be modified except by mutual
agreement in writing.
2. ADDITIONAL SERVICES. Additional work or services shall not be performed without a KLM
executed change order or purchase order outlining the scope of additional work or services.
3. KLM CLIENT RESPONSIBILITIES. The KLM Client shall fully disclose to KLM its knowledge of
the condition of the project structure(s), its past and present contents and shall provide KLM with full
information regarding the requirements for the project; shall designate an individual to act on the KLM
Client’s behalf regarding the project; and provide safe access to and at the project site. When
reasonably requested by KLM, the KLM Client shall furnish the services of other consultants including,
but not limited to engineers and insurance representatives. The KLM Client shall test for pollution and
hazardous materials when required by law or as requested by KLM. The KLM Client shall provide
KLM with all necessary permits and other authorizations.
4. SAFETY. KLM shall be responsible for the safety of KLM personnel at the project site. The KLM
Client or other persons shall be responsible for the safety of all other persons at the project site. The
KLM Client shall inform KLM of any known or suspected hazardous materials or unsafe conditions at
the project site. If, during the course of the KLM services, such materials, or conditions are discovered
at the project site, KLM reserves the right to take measures to protect KLM personnel and equipment or
to immediately terminate KLM services. The KLM Client agrees to be responsible for, and agrees to
pay, any such additional protection costs. Upon such discovery by KLM, KLM agrees to use
commercially reasonable efforts to notify the KLM Client in writing, of hazardous materials or unsafe
conditions regarding the project site.
5. HAZARDOUS MATERIALS. Unless otherwise agreed to in the scope of work with the KLM Client,
KLM has no responsibility for the discovery, presence, handling, removal or disposal of or exposure of
persons to hazardous materials at the project site. To the full extent permitted by the law, the KLM
Client shall defend, indemnify, and hold harmless KLM, its employees and representatives from all
claims, including costs and attorney fees, arising out of the presence of hazardous materials or exposure
to the same on the job site.
6. SITE ACCESS AND RESTORATION. The KLM Client will provide KLM and its representatives
with safe and legal project site access. It is understood by the KLM Client that in the normal course of
KLM providing its services and work, some nominal damage to the project site may occur. KLM agrees
to take reasonable commercial precautions to minimize such damage, if any. Restoration of the project
site, if any, is the responsibility of the KLM Client, unless otherwise agreed to in writing in the scope of
work.
7. KLM LIMITED WARRANTY AND DISCLAIMER. KLM will perform services consistent with
the standard of care and skill normally performed by other like firms in the industry and profession at
the time of this service and in the geographic area of the project. EXCEPT AS EXPRESSLY
STATED IN THIS SECTION, THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, BY
OPERATION OF LAW OR OTHERWISE, PERTAINING TO THE PRODUCTS AND
SERVICES SOLD UNDER THIS AGREEMENT. KLM DISCLAIMS ANY IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IN
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8. SCHEDULING. Prior to KLM scheduling its services related to the project, the KLM Client shall
furnish KLM with a written Agreement, purchase order or other written request for KLM services and
shall give as much notice as reasonably possible in advance of the time when the KLM services are
desired to commence. The KLM service schedule shall be mutually agreed upon by the parties in
writing. If a KLM inspection is canceled or delayed after KLM personnel and/or equipment are in
transit to the project site, then the KLM Client shall be billed, and the KLM Client agrees to pay for
KLM time and expenses according to the then current KLM Fee Schedule for KLM time spent and
KLM costs incurred. If KLM is unable to redirect KLM representatives to other third-party project sites
on the canceled or delayed scheduled service day, at a minimum, the KLM Client will be billed and the
KLM Client agrees to pay KLM for one (1) full day of KLM labor.
9. INSURANCE. KLM will maintain worker’s compensation insurance and comprehensive general
liability insurance. KLM will provide KLM Client with a certificate of insurance upon KLM Client’s
request.
10. PAYMENT. KLM will submit periodic invoices for KLM services provided and work performed.
Invoices are due upon receipt. The KLM Client agrees to inform KLM of invoice questions or disputes
within 10 business days of the invoice date. The KLM Client agrees to pay all undisputed KLM
invoiced amounts within 45 days of the invoice date. The KLM Client agrees to pay interest on all
overdue amounts at a rate of 1.5% per annum or the rate allowed by law, whichever is less, plus costs of
collection, court costs, and reasonable attorney fees on all such amounts. If any undisputed invoice
remains unpaid for 60 days, then KLM may, at its sole discretion, suspend or terminate services to the
KLM Client without liability.
11. INDEMNIFICATION. KLM shall indemnify and hold harmless the KLM Client and its shareholders,
directors, officers, members, governors and employees from liability, claims, losses, and damages
arising out of or relating to the applicable Project, provided that such claims, costs, losses, or damages
are attributable to bodily injury, sickness, disease, or death, or injury to, or destruction of tangible
property, including the loss of use resulting therefrom to the extent caused by KLM’s negligent acts or
omissions.
The KLM Client shall indemnify and hold harmless KLM and its shareholders, directors, officers,
members, governors and employees from liability, claims, losses, and damages arising out of or relating
to the applicable Project, provided that such claims, costs, losses, or damages are attributable to bodily
injury, sickness, disease, or death, or injury to, or destruction of tangible property, including the loss of
use resulting therefrom to the extent caused by the KLM Client’s negligent acts or omissions. Further,
the KLM Client shall indemnify and hold harmless KLM from all claims or losses arising out of the
unauthorized use of KLM’s Documents.
12. INTENTIONALLY OMITTED.
13. DELAYS. If KLM service or work delays are caused by the KLM Client, by third parties, strikes,
natural causes, weather, or other circumstances beyond KLM's control, a reasonable time extension for
performance of KLM services and work shall be granted, and KLM shall be entitled to and the KLM
Client agrees to pay KLM an equitable fee adjustment.
14. TERMINATION. After seven (7) days written notice, either party may elect to terminate this
Agreement. Notwithstanding the foregoing, the KLM Client agrees to pay for all KLM services
provided and work performed through the date of termination. Notwithstanding the foregoing, the
following sections shall survive the termination of this Agreement: Sections 5, 7, 10, 11, 12, 15, 16, 21
and 24.
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15. SEVERABILITY. Any provisions of this Agreement later held to violate a law or regulation shall be
deemed void, and all remaining provisions of the Agreement shall continue in full force and effect.
16. KLM'S DOCUMENTS. All reports, specifications, drawings and other documents furnished by KLM
are part of KLM's services and work for the KLM Client and the same are for use only for the project
(KLM Documents). KLM retains all ownership of said documents regardless of whether the project is
completed. The KLM Client may retain copies of the KLM Documents for reference purposes. KLM
does not represent or warrant that the KLM Documents are suitable for reuse on any extension of the
project or on other projects. The KLM Client shall not use the KLM Documents without KLM's written
consent.
17. ASSIGNMENT. KLM may not assign this Agreement to any other person unless written consent is
obtained from the KLM Client.
18. AMENDMENTS. Any modification or amendment of to this Agreement shall require a written
agreement signed by both Parties.
19. NONDISCRIMINIATION. In the hiring of employees to perform work under this Agreement, KLM
shall not discriminate against any person by reason of any characteristic or classification protected by
state or federal law.
20. GOVERNING LAW. This Agreement shall be governed by and interpreted in accordance with the
laws of the State of Minnesota without regard to or application of conflicts of law rules or principles.
All proceedings related to this Agreement shall be venued in Washington County, Minnesota.
21. AUDIT. Pursuant to Minnesota Statutes, § 16C.05, Subdivision 5, KLM agrees that the KLM
Client, the State Auditor, or any of their duly authorized representatives at any time during normal
business hours and as often as they may reasonably deem necessary (but under all circumstances not
more often than once per calendar year), shall have access to and the right to examine, audit, excerpt,
and transcribe any books, documents, papers, or records which are pertinent to the accounting practices
and procedures of KLM, and involve transactions relating to this Agreement.
22. JOB SITE IMAGES, PHOTOGRAPHY AND VIDEO. During the term of this Agreement and
thereafter, KLM has the KLM Client’s permission to take photographs or video of the project site for
training, documentation, education or KLM promotional purposes. A signed Agreement that includes
these KLM Terms and Conditions constitutes the KLM Client’s written permission to KLM regarding
the use of the items and information set forth in this section.
23. WAIVER. The waiver by either party of any breach or failure to comply with any provision of this
Agreement by the other Party shall not be construed as or constitute a continuing waiver of such
provision or a waiver of any other breach of or failure to comply with any other provision of this
Agreement.
24. HEADINGS. Section headings used in this Agreement are for convenience only, have no legal
significance, and in no way change the construction or meaning of the terms hereof.
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25. NOTICE: Notices shall be communicated to the following:
a. If to City:
City of Hastings
101– 4th Street
Hastings, MN 55033
Attention: ________________________________
b. If to Contractor:
KLM Engineering, Inc.
1976 Wooddale Drive, Suite 4
Woodbury, MN 55125
Attention: Linda Gnasdoskey
26. CITY’S REPRESENTATIVE. The City has designated _______________________________ to
act as the City’s representative with respect to the Services to be performed under this Agreement. He
or she shall have complete authority to transmit instructions, receive information, interpret, and define
the City’s policy and decisions with respect to the Services covered by this Agreement.
27. PROJECT MANAGER AND STAFFING. The contractor has designed Dewey Prinzing to be the
primary contact for the City in the performance of Services. The primary contact shall be assisted by
other staff members as necessary to facilitate the completion of the Services in accordance with the
terms established herein. Contractor may not remove or replace the designated staff without the
approval of the City.
28. INDEPENDENT CONTRACTOR STATUS. All services provided by the Contractor, its officers,
agents and employees pursuant to this Agreement shall be provided as employees of Contractor or as
independent contractors of Contractor and not as employees of the City for any purpose.
29. DATA PRACTICES COMPLIANCE. All data collected by the City pursuant to this Agreement
shall be subject to the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13.
30. ENTIRE AGREEMENT. This Agreement supersedes any prior or contemporaneous representations
or agreements, whether written or oral, between the Parties and contains the entire agreement.
End of the KLM Terms and Conditions.
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