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HomeMy WebLinkAboutVIII-08 Authorize Signature - Electrical Services Agreement – Kletschka Inspections City Council Memorandum To: Mayor Fasbender & City Councilmembers From: John Hinzman, Community Development Director Date: August 4, 2025 Item: Authorize Signature: Electrical Services Agreement – Kletschka Inspections Council Action Requested: Authorize signature of the attached Electrical Services Agreement between the City and Kletschka Inspections LLC. Action requires a simple majority of Council. Background Information: Kletschka provides inspections on behalf of the City’s Building Department for issuance of electrical permits The Agreement would remain in effect until a 30-day written notice is delivered by either party. Financial Impact: Kletschka would receive 80% of each individual electrical permit fee. Advisory Commission Discussion: N\A Council Commission Discussion: N\A Attachments: • Electrical Services Agreement VIII-08 1 ELECTRICAL SERVICES AGREEMENT THIS AGREEMENT ("Agreement") is made and executed this ___ day of , 2025, by and between the City of Hastings, 101 4th St. E. Hastings, MN 55033, ("City") and Kletschka Inspections LLC, 928 Barron Road, Faribault, MN 55021 ("Contractor"). WHEREAS, Contractor desires to perform electrical inspections as assigned by the City for compliance with the current version of the Minnesota State Electrical Code and other related laws, rules, and City ordinances; and WHEREAS, Contractor desires to perform the electrical inspection services for the City under the terms and conditions set forth in this Agreement. NOW, THEREFORE, in consideration of the mutual consideration contained herein, it is hereby agreed as follows: 1. SERVICES. a. City agrees to engage Contractor as an independent contractor for the purpose of performing certain Services ("Services"), as defined in Exhibit A (hereinafter "Exhibit"). b. Contractor covenants and agrees to provide Services to the satisfaction of the City in a timely fashion, as set forth in the Exhibit, subject to Section 7 of this Agreement. c. Contractor agrees to comply with all federal, state, and local laws and ordinances applicable to the Services to be performed under this Agreement, including all safety standards. The Contractor shall be solely and completely responsible for conditions of the job site, including the safety of all persons and property during the performance of the Services. The Contractor represents and warrants that it has the requisite training, skills, and experience necessary to provide the Services and is appropriately licensed and has obtained all permits from all applicable agencies and governmental entities. d. Where the terms and conditions of this Agreement and those terms and conditions included in the Exhibit specifically conflict, the terms of this Agreement shall apply. 2. PAYMENT. a. City agrees to pay and Contractor agrees to receive and accept payment for Services as set forth in the Exhibit. b. Any changes in the scope of the work of the Services that may result in an increase to the compensation due the Contractor shall require prior written approval by the authorized representative of the City or by the City Council. The City will not pay additional compensation for Services that do not have prior written authorization. c. Contractor shall submit itemized bills for Services provided to City on a monthly basis. Bills submitted shall be paid in the same manner as other claims made to City. VIII-08 2 d. Prior to payment, the Contractor will submit evidence that all payrolls, material bills, subcontractors and other indebtedness connected with the Services have been paid as required by the City. 3. TERM. This Agreement shall be effective as of the date written in the initial paragraph of this Agreement and shall continue until terminated pursuant to Section 4 herein. 4. TERMINATION AND REMEDIES. a. Termination by Either Party. This Agreement may be terminated by either party upon thirty (30) days' written notice delivered to the other party to the addresses listed in Section 13 of this Agreement. Upon termination under this provision, if there is no default by the Contractor, Contractor shall be paid for Services rendered and reimbursable expenses incurred through the effective date of termination. b. Termination Due to Default. This Agreement may be terminated by either party upon written notice in the event of substantial failure by the other party to perform in accordance with the terms of this Agreement. The non-performing party shall have fifteen (15) calendar days from the date of the termination notice to cure or to submit a plan for cure that is acceptable to the other party. c. Remedies. Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City as a result of any breach of this Agreement by the Contractor. The City may, in such event: i. Withhold payments due to the Contractor until such time as the exact amount of damages due to the City is determined. ii. Perform the Services, in which case, the Contractor shall within 30 days after written billing by the City, reimburse the City for any costs and expenses incurred by the City. The rights or remedies provided for herein shall not limit the City, in case of any default by the Contractor, from asserting any other right or remedy allowed by law, equity, or by statute. d. Upon termination of this Agreement, the Contractor shall furnish to the City copies or duplicate originals of all documents or memoranda prepared for the City not previously furnished. 5. SUBCONTRACTORS. Contractor shall not enter into subcontracts for any of the Services provided for in this Agreement without the express written consent of the City. The Contractor shall pay any subcontractor involved in the performance of this Agreement within the ten (10) days of the Contractor's receipt of payment by the City for undisputed services provided by the subcontractor. 6. STANDARD OF CARE. In performing its Services, Contractor will use that degree of care and skill ordinarily exercised, under similar circumstances, by reputable members of its VIII-08 3 profession in the same locality at the time the Services are provided. 7. DELAY IN PERFORMANCE. Neither City nor Contractor shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. For purposes of this Agreement, such circumstances include, but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war, riots, and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage; judicial restraint; and inability to procure permits, licenses or authorizations from any local, state, or federal agency for any of the supplies, materials, accesses, or services required to be provided by either City or Contractor under this Agreement. If such circumstances occur, the nonperforming party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Contractor will be entitled to payment for its reasonable additional charges, if any, due to the delay. 8. CITY'S REPRESENTATIVE. The City has designated the Chief Building Official 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. 9. PROJECT MANAGER AND STAFFING. The Contractor has designated Steven Kletschka to be the primary contact for the City in the performance of the Services. He 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. 10. INDEMNIFICATION. a. Contractor and City each agree to defend, indemnify, and hold harmless each other, its agents and employees, from and against legal liability for all claims, losses, damages, and expenses to the extent such claims, losses, damages, or expenses are caused by its negligent acts, errors, or omissions. In the event claims, losses, damages, or expenses are caused by the joint or concurrent negligence of Contractor and City, they shall be borne by each party in proportion to its own negligence. b. Contractor shall indemnify City against legal liability for damages arising out of claims by Contractor's employees or subcontractors, including all liens. City shall indemnify Contractor against legal liability for damages arising out of claims by City's employees or subcontractors. 11. INSURANCE. During the performance of the Services under this Agreement, Contractor shall maintain the following insurance: a. Commercial General Liability Insurance, with a limit of $2,000,000 for any number of claims arising out of a single occurrence, pursuant to Minnesota Statutes, Section 466.04, or as may be amended. b. Professional Liability Insurance, with a limit of $2,000,000 for any number of claims arising out of a single occurrence. VIII-08 4 c. Workers' Compensation Insurance in accordance with statutory requirements. d. Automobile Liability Insurance, with a combined single limit of $2,000,000. Contractor shall furnish the City with certificates of insurance, which shall include a provision that such insurance shall not be canceled without written notice to the City. The City shall be named as an additional insured on the Commercial General Liability Insurance policy. 12. WARRANTIES. Contractor warrants and guarantees that title to all work, materials, and equipment covered by any invoice, will pass to City prior to the termination of this Agreement. Contractor warrants that all work will be free from defects and that all materials will be new and of first quality. If within one (1) year after final payment any work or material is found to be defective, Contractor shall promptly, without cost to the City, correct such defect. 13. NOTICES. Notices shall be communicated to the following addresses: If to City: City of Hastings 101 4th St. E. Hastings, MN 55033 Attention: Lonnie Johnson Or emailed: ljohnson@hastingsmn.gov If to Contractor: Kletschka Inspections LLC 928 Barron Road Faribault, MN 55021 Attention: Steven M. Kletschka Or emailed: stevekletschka@gmail.com 14. INDEPENDENT CONTRACTOR STATUS. All services provided by 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. 15. OWNERSHIP OF DOCUMENTS. Professional documents, drawings, and specifications prepared by the Consultant as part of the Services shall become the property of the City when Consultant has been compensated for all Services rendered, provided, however, that Consultant shall have the unrestricted right to their use. Consultant shall retain its rights in its standard drawing details, specifications, databases, computer software, and other proprietary property. Rights to proprietary intellectual property developed, utilized, or modified in the performance of the Services shall remain the property of the Consultant. 16. GENERAL PROVISIONS. a. Assignment. This Agreement is not assignable without the mutual written agreement of the parties. b. Waiver. A waiver by either City or Contractor of any breach of this Agreement shall be in VIII-08 5 writing. Such a waiver shall not affect the waiving party's rights with respect to any other or further breach. c. Nondiscrimination. Contractor agrees that in the hiring of employees to perform Services under this Agreement, Contractor shall not discriminate against any person by reason of any characteristic protected by state or federal law. d. Governing Law. This Agreement shall be construed in accordance with the laws of the State of Minnesota and any action must be venued in Dakota County District Court. e. Amendments. Any modification or amendment to this Agreement shall require a written agreement signed by both parties. f. Severability. If any term of this Agreement is found be void or invalid, such invalidity shall not affect the remaining terms of this Agreement, which shall continue in full force and effect. g. 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. h. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes all prior communications, understandings and agreements relating to the subject matter hereof, whether oral or written. [The remainder of this page is intentionally left blank] VIII-08 6 CITY OF HASTINGS By: _________________________ Mary Fasbender, Mayor By: _________________________ Kelly Murtaugh, City Clerk Date: ________________________ VIII-08 7 CONTRACTOR KLETSCHKA INSPECTIONS LLC By: __________________________ Steven Kletschka Its: Owner Date: _________________________ VIII-08 8 EXHIBIT A I. SCOPE OF SERVICES 1. Perform electrical inspections assigned by the City for compliance with the current version of the Minnesota State Electrical Code and related laws, rules, and City ordinances. 2. Perform inspections on the day requested, except as approved by the City. 3. Be available by telephone during established hours, as determined by the City, to receive calls related to code requirements, inspection procedures, and other electrical inspection matters. It is understood that the normal hours are generally from 8:00 a.m. to 4:30 p.m. 4. Report to the City’s Inspections Division to pick up inspection requests, report on completed inspections, and be available to City staff. 5. Be available on a limited basis to meet customers at scheduled appointed times and locations. 6. Be available for inspections, consultation, meetings, and other inspection related duties that may not be associated with an electrical permit. 7. Write correction notices and perform follow-up inspections as needed to obtain compliance. 8. Follow inspection procedures and processes established by the City. 9. Maintain computer capability to access the City inspection system via the internet. Input inspection results in the City inspection database via internet connection from an off-site terminal. The City may choose to record inspection results in house in lieu of this requirement. 10. Provide a City-approved back-up plan that indicates how inspections will be performed during high volume periods, sick days, vacation times, etc. II. PAYMENT The Contractor will receive eighty percent (80%) of each individual electrical permit fee obtained from an inspected property. Payment will be made on a monthly basis for completed permits. Upon termination of the Agreement, the amount due the Contractor will be prorated based upon the percentage of inspections completed. The Contractor will be responsible for the Contractor's costs, transportation, telephone, and other related costs necessary to complete the inspections. Prior to the processing of any and all payments to the Contractor pursuant to the Agreement, compliance with City Finance Department regulations on the completion and filing of W-9 forms and other IRS and Minnesota Department of Revenue taxing forms is required. III. REQUIRED LICENSE The Contractor will ensure that all inspections performed under the Agreement are performed by a master electrician who is licensed by the State of Minnesota and whose license must be in force at all times. Contractor shall produce any documentation requested by the City with regard to the required licensure under the Agreement. VIII-08