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HomeMy WebLinkAboutIV. c. Mixed Use Hard Wire Alarm – Award Contract & Commit Grant FundsHEDRAMemorandum To: HEDRA Commissioners From: John Hinzman, Community Development Director Date: July 14, 2011 Item: Mixed Use Hard Wire Alarm – Award Contract & Commit Grant Funds HEDRAAction Requested: 1)Award Contract for CDBG ineligible projects to Alarm Express for $11,205.51. 2)Commit up to $5,000 in HEDRA Mixed Use Hard Wire Alarm grant funds towards the contract for CDBG eligible projects. Funding would be used to cover the gap between the estimated project cost and available CDBG funding. Background Information: In the early 2000’s, the city was approached by several downtown building owner Prior to the establishment of the monitored fire alarm ordinance, the city had in place Chapter 1306, an amendment to the State Fire Code, which required buildings over 2000 square feet in size to be equipped with a fire sprinkler system. A group of downtown building owners approached the city stating this was too restrictive and cost prohibitive. With that, a committee was formed to look at possible alternatives.This committee consisted of city staff, a city council representative, representatives of the Chamber of Commerce and downtown building owners. It was agreed by all that many code deficiencies within mixed occupancy buildings existed and that if the city would repeal Chapter 1306, an alternative cost effective approach could be reached that would still offer public protection and early warning to the occupants. A few examples of code deficiencies include, common exiting through neighboring buildings, narrow and steep stairwells not designed for the occupancy the structure was built for and lack of fire rated corridor doors. The alternative approach agreed upon was requiring monitored fire alarms in mixed occupancy buildings, when one of the occupancies is a residential. Many of the downtown buildings were built as owner occupied. Typically,the store owner lived upstairs. Over the years, the store owners moved out and built apartments above their stores. City of Hastings 101 Fourth Street EastHastings, MN 55033-1955p:651-480-2350f:651-437-7082www.ci.hastings.mn.us HEDRA Meeting Packet - July 14, 2011Page 30 of 99 After the ordinance was passed, HEDRA acquired grants to help offset the cost of these systems. These grants were not discussed with the committee during the process, but helped offset the cost to building owners. The City of Hastings passed an ordinance in 2007 establishing a monitored fire alarm system in mixed occupancy buildings when one of the occupancies is residential. This ordinance was adopted in an effort to raise the level of fire safety to citizens living in mixed use buildings, as these situations often lead to deaths in cases of fire when not protected. Monitored fire alarm systems were chosen as the protection method as they were the most economical type of system that did not sacrifice safety. These systems were supposed to be installed by May 31, 2009, which was later extended to May 31, 2010. CDBG Funding: In an effort to support businesses and property owners in Hastings, the City of Hastings applied for and received Community Development Block Grant (CDBG) funds for the purpose of assisting property owners with the costs to comply with the newly adopted regulation. Specifically, funds were made available to match property owners’ costs by 50% up to $2,000.00 per building. During that time, 4 systems were installed, but did not follow the requirements required in order to receive CDBG funding. Some owners stated they didn’t understand they would not be eligible for funding if they didn’t follow the regulations and other stated that they believed the regulations would add so much cost on to the project that it would be cheaper to not follow the guidelines. Staff continued to look for additional funding and has now received a total of $107,750.44 of federal CDBG money available for buildings and owners who meet the required guidelines. In general, this excludes owners who are elected officials and the 4 property owners that had the systems installed without having multiple bids or by contractors who did not pay prevailing wages to employees. The Dakota County CDA (Community Development Agency) who administers the CDBG funds set aside about 9% ($9,800) of the grant dollars to assist the city in recouping administration of the project. Staff proposes to use this money to fund the project. Compliance Failure: Even with a larger percentage of the alarms being covered, it became apparent that therewas very little compliance. Some building owners cited financial difficulties due to the economy and or future bridge construction. Others were overwhelmed by the paperwork and regulations tied to the CDBG funding. As a result, staff looked into operating the project a different way that could save installation costs further and take the burden of paperwork, scheduling, bidding, and obtaining reimbursement of owners and handle it all ourselves. Staff posted an RFP (Request for Proposals) for the required systems for all buildings and invited what would be 6 contractors to come and spend three days walking though about 30 buildings with staff to draw-up their proposals HEDRA Meeting Packet - July 14, 2011Page 31 of 99 HEDRA Funding of Ineligible Properties: The HRA (Hastings Redevelopment Authority) and now HEDRA( Hastings Economic Development and Redevelopment Authority) has allocated $20,000 for the project. This was at least in part to allow funding for buildings that could not receive CDBG funding due to restrictive regulations. Alarm Express was also the lowest qualified bidder to submit a bid ($11,204.51) on a separate project for 3 buildings that do not qualify for Federal CDBG money. The 4 buildings that have previously installed fire alarm systems understand that they cannot revive CDBG funding, but can receive money from HEDRA. They have all made staff aware that they would like some financial assistance especially after finding out that owners who did not complete the project on time will have nearly all of the cost paid with grant money. HEDRA will consider this separate contract at their July 14, 2010 meeting. Monitoring: In order for the systems to be effective in saving lives and property damage in an area where fires can spread rapidly, the systems must be monitored. The contractor contracts with a third party that monitors the fire alarm system through a single phone line (unless the owner desires two). The remote monitoring company periodically tests the system for faults and notifies the authorities if an alarm is triggered 24 hours per day. The RFP required contractors to provide in their bid one year of monitoring at no cost to the owners. A few adjoining buildings have been proposed with one system to monitor both buildings at the request of the owners, which will save on installation costs and monitoring. These affected buildings with separate owners should be required to file shared maintenance agreements with the County to assure they will be perpetually maintained in an agreed upon manner. This may not be necessary for adjoining buildings owned by the same person because those buildings are typically not set-up for individual ownership and may always be sold as one building. Cost of Monitoring: Alarm express provided 3 years of monitoring into their bid. After the three years laps, the owners may sign a contact with Alarm Express year by year. They currently charge $25 per month for monitoring. The owners are also free to contracttheir monitoring with any one they choose after the free monitoring lapses. HEDRA Meeting Packet - July 14, 2011Page 32 of 99 FIRE ALARMAGREEMENT This Agreement is made this ____ day of ________, 2011, between the Hastings Economic Development and Redevelopment Authority, a public body corporate and politic th under the Laws of the State of Minnesota (“HEDRA”), 101 4 Street East, Hastings, MN 55033 and Alarm Express LLC, a Wisconsin Domestic Limited Liability Company, 1301 Sunset Lane, River Falls, WI 54022 (“Express”). RECITALS WHEREAS , the City of Hastings, on behalf of HEDRA,issued a Request for Proposals as modified by three subsequent addenda (the “RFP”) for installation and monitoring of fire alarm systems within three housing units located in mixed-use buildings owned by private individuals in the City of Hastings, the RFP being attached hereto as Exhibit A; WHEREAS , Express is engaged in the business of installation and coordinated monitoring of fire alarm systems and submitted a responsive Bid Proposal (the “Bid Proposal”) in response to the RFP, the responsive Bid Proposal being attached hereto as Exhibit B; WHEREAS , the fire alarm systems to be installed and monitored pursuant to the terms of this Agreement are described and identified in Section 5 of the Bid Proposal labeled as Non- CDBG Bid Proposal; WHEREAS , HEDRA has designated grant funds intended to pay for the costs of the installation and initial monitoring of the fire alarm systems contemplated in the RFP and Section 5 of the Bid Proposal labeled as Non-CDBG Bid Proposal; WHEREAS ,HEDRAdesires to contract with Express for the installation of the fire alarm systems, and for monitoring of the fire alarm systems though a third-party vendor, provided that the performance of HEDRA and Express under the contract will be conditioned upon the private owners of the individual housing units joining in as parties to the contract; WHEREAS , the anticipated fire alarm monitoring service is to be provided by U.S.A. Central Station Alarm Corp., a New York Corporation (“Monitoring Company), and the parties intend the obligations of HEDRA and Express to perform hereunder are further conditioned upon the private owners of the individual housing units entering into a monitoring contract (the “Monitoring Contract”), a copy of the Monitoring Contract being attached hereto as Exhibit C, with the Monitoring Company for monitoring services for a period of no less than three years, the costs of such monitoring services being prepaid as a portion of the costs paid to Express for the initial installation and monitoring of the fire alarms. NOW THEREFORE , in consideration of the mutual covenants herein contained, and other good and valuable consideration, the parties mutually agree as follows: HEDRA Meeting Packet - July 14, 2011Page 33 of 99 Scope of Work 1.. Express shall provide the fire alarm equipment, and install the fire alarm systems, in accordance with the specifications set forth in Section 5 of the Bid Proposal labeled as Non-CDBG Bid Proposal. All work by Express shall be completed in a good and workmanlike manner. It is anticipated all work will be completed within six months from the date Express receives notice to proceed on all individually owned housing units and in any event, all work shall be completed within nine months of Express receiving the notice to proceed.Any changes, alterations, or alternate placement of devices, including alterations required by the fire inspector, shallbe charged separately by Express upon project completion. One analog phone line will be provided by the customer, or the building owner. Any service issues related to the phone lines will be billed at the time of service directly to the owner of the housing unit. Components of the fire alarm systems and the installation of the fire alarm components shall meet or exceed Minnesota Building Code and Minnesota Fire Code standards and each installation must pass all applicable inspections prior to being accepted by HEDRA and the private owners of the individual housing units. No equipment to be installed pursuant to this Contract shall be proprietary type equipment and must be capable of installation, service and monitoring by any qualified technician. Express shall be responsible for coordinating and scheduling with all owners of the private housing units. Work in individual buildings must be completed in a timely manner and should not take longer than four weeks. Businesses must be allowed to remain open and conduct business during normal business hours throughout the installation. Residents must maintain access to their residence. After the work is completed, the interior and exterior of buildings must be restored to their pre-construction condition in respect to their cleanliness and repair. Payment 2.. Express shall receive payment directly from HEDRA for the installation and monitoring of the fire alarm systems as set forth in Section 5 of the Bid Proposal labeled as Non-CDBG Bid Proposal. Final payment will be granted after all buildings are completed, the work passes City inspection, and Express’s payroll records are deemed to be complete and accurate for compliance with the Davis-Bacon Act requirements as set forth in the RFP and the Bid Proposal. HEDRAmay, at HEDRA’s option, make periodic payments as work progresses, as long as Davis-Bacon payrolls have been submitted and checked for compliance through the pay periods, and that partial lien waivers are fully executed and delivered to HEDRA.No change orders, alterations, or alternate placement of devices, including any alterations required as a result of inspection of the fire marshal, shall be binding on either HEDRA or Express unless or until a change order is signed by both parties and consented to by the private owner of the individual housing unit affected by the change. Applicable sales tax is included in the Bid Proposal amounts received from Express and neither HEDRA nor the individual owners of the housing units shall be obligated to pay any additional sales tax other than the amounts set forth in the Bid Proposal. Warranties 3.. The only warranties expressed or implied, granted in connection with alarm products installed by Express, are the express written warranties extended by the manufacturer thereof, Silent Knight. Silent Knight Equipment is subject to a limited 36 month warranty provided by the manufacturer. The warranty shall apply only to the original purchaser which shall in this case be the end user, the owners of the individual HEDRA Meeting Packet - July 14, 2011Page 34 of 99 housing units, and in no event shall Express be held liable for any indirect, incidental, consequential losses or damages incurred by the purchaser in connection with the operation of these products, including any or all of its components or accessories. It is understood and agreed by and between the parties hereto that Express is not an insurer. Any and all insurance will be obtained by the purchaser/subscriber. Charges for alarm equipment are based solely upon the value of the services provided for and are unrelated to the value of the purchaser/subscriber’s property or the property of others, located in or on the premises. The amounts payable by the purchaser/subscriber are not sufficient to warrant the Company assuming any risk or liability for any losses therefrom, which the services are designated to detect or avert. If the company should be found liable for loss or damage due to failure on the part of the Company, or the system, to protect from consequences which the service is designated to detect or avert, such as fire, then in this respect, the liability of Express shall be limited to a sum of $500.00, or a refund of the purchase price, whichever is greater. This limitation of liability shall not, however, limit the liability of Express for failure to: (1) provide the fire alarm equipment, (2) properly install the fire alarm systems, or (3) perform its obligations, under this Contract. Compliance with Davis-Bacon Wage Requirements 4.. Express must follow all applicable Federal wage requirements as established by the U.S. Department of Labor and the Federal labor standards provisions of the Davis-Bacon Act as more fully described in the RFP. Weekly payroll reports shall be submitted by Express to HEDRA and Express is responsible for the full compliance of all subcontractors. Direction to proceed 5.. Prior to Express initiating any work on any individual housing units covered by this Contract, the verified owner of the individual housing unit shall: (1)execute this Agreement, and (2) be bound to its terms. After such execution and payment, HEDRAwill provide Express with written notice to proceed as to the specific individual housing units. Installation of the fire alarm systems in one or more building may require the building owner to obtain written consent of an adjacent or adjoining property owner to allow installation of wiring, conduit, or other equipment within the building or property of the adjacent or adjoining building owner. For any unit requiring such consent, HEDRA shall not issue the notice to proceed to Express until such consent is obtained by the property owner. If after exerting reasonable efforts HEDRA is unable to obtain the signature and consent of one or more individual housing unit owners, and for units requiring the consent of the adjacent or adjoining property owner, such consent, then HEDRA may so notify Express that it has been unable to obtain such signature and consent, and in that event, Express shall not undertake any installation of fire alarm equipment in that unit or units and accordingly, HEDRA shall not be obligated to pay Express the costs of furnishing the fire alarm equipment and installing the fire alarm system within the specified unit. These provisions shall be utilized as a last possible resort and HEDRA shall undertake all reasonable efforts to obtain the signature and consent of the individual property owners, and where applicable the consent of the adjacent or adjoining building owner. Alarm Monitoring Contract 6.. The parties acknowledge that the alarm monitoring services for each of the individual housing unit fire alarm systems shall be monitored by HEDRA Meeting Packet - July 14, 2011Page 35 of 99 Monitoring Company which has provided a standard alarm monitoring contract which the Monitoring Company will not agree to modify. The parties to the Monitoring Contract shall be the Monitoring Company, Express, and the private owners of the individual housing units. Express shall be obligated to obtain the signatures of the owners of the individual housing units on the Monitoring Contract and shall allow all of the owners a reasonable opportunity to review the contract terms before signing. In the event an individual housing unit owner refuses to agree to the terms of the Monitoring Contract, Express shall nonetheless install the fire alarm system in accordance with this Contract, Express shall be entitled to receive the full contract price, including the costs associated with the 36 month monitoring period, but the individual housing unit owner shall not be obligated to engage the services of the Monitoring Company and the Owner shall be advised that the owner must contract with an alternate alarm monitoring service, at the owner’s sole expense. The owner shall be advised by Express that the Monitoring Contract shall have a 36 month initial term with all monitoring costs prepaid as part of the installation contract, but that the owners may, but are not obligated to, renew the Monitoring Contracts for additional one year periods at the expiration of the initial 36 month term, at the sole cost of the building owners. Indemnification 7..HEDRA shall indemnify and hold harmless Express, their respective officers, employees and agents from any damages or liabilities arising from or occurring as a result of the negligent acts of HEDRA, its employees and agents. Express shall indemnify and hold harmless the individual owners of the property who are parties to this Contract, HEDRA,the City of Hastings and their respective officers, employees and officials from any damages or liabilities arising from or occurring as a result of the negligent acts of Express, its officers, employees and agents. Miscellaneous 8.. a) Neither Express nor HEDRA may assign its rights and obligations under this Contract to any third-party without the written consent of the opposite party, such consent to be granted or withheld at the party’s sole discretion. Express may not utilize subcontractors in performance of the work except as disclosed in the Bid Proposal. b) In the event of any inconsistency or conflict between the terms of this Agreement, the terms of the RFP, or the terms of the Bid Proposal, the terms of this Agreement shall control and supersedeany inconsistent terms in the RFP or Bid Proposal. c) This document contains the entire agreement between the parties and any statements, promises or inducements made by either party or agents of either party which are not contained in this written Agreement and the attached Exhibits shall beinvalid and nonbinding. This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties and to the extent such modification impacts the rights or obligations of an individual housing unit owner, signature by the individual housing unit owner. HEDRA Meeting Packet - July 14, 2011Page 36 of 99 d)This Agreement may be executed in any number of counterparts and different parties in separate counterparts. It is specifically anticipated that the individual housing unit owners will execute counterparts. Each counterpart when so executed shall be deemed to be an original and all counterparts together shall constitute one and the same agreement. e)This Agreement shall be governed under the laws of the State of Minnesota. The parties agree that all actions or proceedings arising in connection with this Agreement shall be litigated exclusively in the Dakota County District Court, State of Minnesota. The choice of venue is intended by the parties to be mandatory and not permissive in nature, thereby precluding the possibility of litigation between the parties with respect to or arising out of this Agreement in any jurisdiction other than that specified in this paragraph. f)In the event of litigation relating to the subject matter of this Agreement, the non-prevailing party shall reimburse the prevailing party for all reasonable attorneys’ fees and costs resulting therefrom. g) The failure by one party to require performance of any provision herein shall not affectthat party’s right to require performance at anytime thereafter, nor shall a waiver of any breach or default of this Agreement constitute a waiver of any subsequent breach or default or a waiver of the provision itself. Hastings Economic Development and Redevelopment Authority in andfor the City of Hastings, a Public Body Corporate and Politic under the Laws ofthe State of Minnesota Dated:___________________ By: Ron Toppin It’s President ALARM EXPRESSLLC Dated: By: Ben McCurdy Its: President HEDRA Meeting Packet - July 14, 2011Page 37 of 99 HEDRA Meeting Packet - July 14, 2011Page 38 of 99 RESERVED FOR SIGNATURES OF OWNERS HEDRA Meeting Packet - July 14, 2011Page 39 of 99 EXHIBIT A City of Hastings/HEDRA Mixed Occupancy Monitored Fire Alarm Request for Proposals (“RFP”) HEDRA Meeting Packet - July 14, 2011Page 40 of 99 EXHIBIT B Alarm Express Responsive Bid Proposal (“Bid”) HEDRA Meeting Packet - July 14, 2011Page 41 of 99 EXHIBIT C U.S.A. Central Station Alarm Corporation Alarm Monitoring Contract (“Monitoring Contract”) HEDRA Meeting Packet - July 14, 2011Page 42 of 99