GRADER MAINTENANCE FOR KEG RIVER/CARCAJOU GRADER BEAT AREA

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Agreement # GRADER MAINTENANCE FOR KEG RIVER/CARCAJOU GRADER BEAT AREA

QUOTATION FOR GRADER MAINTENANCE The Grader Maintenance Area for which quotations are being invited is described in Schedule A. All roadways to be maintained under this quotation will be identified on the attached map, Schedule A. All Schedules will form part of this Agreement. The maps being provided with this tender form are for quotation information only. It is the Contractors responsibility to review the work area, maps and distances within the Grader Beat Area. The County assumes no responsibility for the accuracy of the maps and distances listed. The Quotation for Grader Maintenance must include the following: Contract Form Schedule A Map of the Grader Maintenance Area Completed Quotations Bid Security Insurance If a corporation, the Articles of Incorporation, inclusive of all directors names. If a partnership, the partnership agreement, inclusive of all partners names. If a sole-proprietorship, the registration. A separate Quotation for Grader Maintenance must be completed for each grader beat area bid on. Note: The request for quotation is for the supply of one (1) grader only for each Beat Area. Grader Beat Area for which the quotation is for: Keg River / Carcajou 1. Company Name: Name and Title of person signing the bid documents: Name: Title: Address: Telephone: Fax: Ownership status of Company supplying bid: Corporation Sole Proprietorship Partnership 2. Description of Equipment to be used for work: Make: Model: Serial Number: Year: Do you presently own this Motor Grader: Yes No: If yes, what year was it purchased? 3. Insurance Co.: Broker/Agent: Policy Number: Expiry Date:

4. Workers Compensation Number: 5. Operator s Name: Phone Number 6. Hourly Rate Quotation: $ 7. I/We the undersigned, acknowledge the tender documents for the above-mentioned work, having obtained the necessary information and visited the areas to evaluate the extent of the work to be done. 8. I/We understand and agree that the Conditions and Other Provisions outlined in the attached policies and Contract Provision of Grading Services for Maintenance of the County of Northern Lights Roads shall form an integral part of my quotation. I am prepared to enter into an agreement and provide the requirements as listed herein if this quotation is accepted. 9. I/We understand that the complete Request for Quotations attached hereto form part of this agreement, and payment for grader service will include use of all equipment currently available for this grader under the terms of the quotation. DATE: SIGNATURE: Print Name WITNESS: Print Name

REQUEST FOR QUOTATIONS 1. INTRODUCTION The County of Northern Lights, as the authority for the construction and maintenance of all local roads in the County, is requesting quotations for the provision of Motor Grader Service for each of the grader beat areas listed in Schedule A, within the County, to commence June 1, 2014. The period of the Contract will be for three (3) years. At the end of the three (3) year term the County at it s sole and unfettered discretion, may offer to the successful Contractor an extension of no more than two (2) years. The existing hourly rate will be adjusted at that time according to the then current inflation factors as outlined by Alberta Transportation. Maps and road totals are listed in the attached Schedule A. In summary the process will be as follows: - Invitation to tender - Public opening of tenders - Decision and completion of contracts -NOTE: The County reserves the right in its sole and unfettered discretion to accept or reject any or all tenders. The County reserves the right to accept a tender other than the lowest tender without stating reasons. Without limiting the generality of the foregoing, the County may consider any other factor besides price and capability to perform the work that it deems in its sole discretion to be relevant to its decision including but not limited to the following: 1. Any past experience with the Bidder, or lack thereof; 2. Past and present experience of the Bidder as a prime grader beat contractor for the County, including performance and reliability. 3. Present equipment ownership and experience in similar occupation 4. Equipment type, quality, and availability to meet requirements. 5. Operator/Owner experience 6. Present occupation 7. Demonstrated reliability 8. Flexibility, adaptability, ability to take instruction. 9. The results of any reference check done by the County; 10. Information relating to the financial state of the Bidder, however obtained; Without limiting the generality of the foregoing, any tender which is non-compliant, conditions or omits information or enclosure documents required to be included in the Request for Quotations may in the County s sole and unfettered discretion be accepted or rejected.

2.0 TERMS AND CONDITIONS RELATED TO QUOTATIONS 2.1 Quotations must be submitted in a sealed envelope clearly marked: "Grader Beat Tender" and indicating which area the tender is for and submitted no later than 2:00 p.m. May 2, 2014. Tenders may be dropped off at the County office, or mailed to: County of Northern Lights # 600, 7 th Avenue, NW P.O. Box 10, Manning, Alberta T0H 2M0 Tenders will be opened at 2:01 p.m., May 2 nd, 2014 at the County of Northern Lights office. Quotations will be considered valid for 30 days from May 2nd, 2014. Within two (2) days of opening the Tenders (May 2nd, 2014), the successful bidder shall meet with the Director of Public Works (and/or designate) to discuss the bidder s qualifications and the Contractor s ability to meet the requirements of the Contract. At this time, the Director of Public Works (and/or designate) may wish to inspect the equipment to ensure the equipments suitability and appearance. 2.2 Security as follows is to be provided: a) Each quotation must be accompanied by a bid security in the amount of Five Hundred Dollars ($500.00). The bid security may be in the form of a bid bond in a form and from a surety company satisfactory to the County in its sole and unfettered discretion, or in the form of a certified cheque or Irrevocable Letter of Credit (in a form and from a financial institution to the satisfaction of the County in its sole and unfettered discretion) made out to the County of Northern Lights. The bid security shall guarantee that, if awarded the bid, the Bidder will enter into a contract and provide the necessary insurance and security within the specified time frame. If within 10 days after the agreement is presented for signature, or May 23rd, 2014 whichever comes first and delivered or sent by registered mail or courier addressed to him at the address stated in his quotation, the bidder refuses or fails: 1) to sign and return to the Director of Public Works the Agreement for the service proposed by this quotation or 2) to provide the security for performance of the Agreement as required or 3) to provide the insurance required or 4) to provide proof of valid Workers Compensation Board account number and expiry date of same, the bid security will be subject to forfeiture. b) The Contractor must provide a Performance Security Bond in the amount of Five Hundred ($500.00) at the time of signing. This Performance Security may be in the form of a Performance Bond in a form and from a company to the satisfaction of the County in its sole and unfettered discretion or by way of a certified cheque or Irrevocable Letter of Credit (in a form and from a financial institution to the

satisfaction of the County in its sole and unfettered discretion made out to the County of Northern Lights. The Performance Security shall guarantee the faithful performance of the contract, and in default thereof, shall protect the County against any loss or damage arising by reason of default of the successful Bidder to faithfully perform the contract. c) If for any reason the Contractor fails to provide service satisfactory to the County the Agreement will be terminated and the performance security will be subject to forfeiture. 2.3 The quotation is to be on an hourly basis which will cover all direct and indirect costs related to the provision of the annual grading & snow removal service. The County will provide blades and tips as per current policy. 2.4 The County will make every effort to guarantee a minimum of 100 hours of work per month, however hours of work are necessarily weather and road condition dependent, and subject to the direction of the Director of Public Works and/or his designate. Where the 100 hours per month is not attainable, the hours may be banked for winter use where possible. If requested, the County will make available past records of Motor Grader Maintenance Hours for the Beat Area. 2.5 The bidder will provide all information outlined in the "Quotation for Grader Maintenance" form. 2.6 The agreement period will be from June 1 st, 2014 12:00 am for a period of three years with a possible two (2) year extension. See Clause 2.5. It is also understood and agreed that the contractor will continue to provide service pending award of a new contract for the beat area at the end of the contracted three year period for a minimum of sixty (60) days, or as negotiated with the Director of Public Works. This is applicable only if the two (2) year extension is not offered or is rejected by the Contractor. 2.7 The maximum number of Grader Beat Contracts an individual Contractor may hold at any given time is two (2). The following conditions will apply: 2.7.1 If the Contractor is an existing Grader Beat Contractor, the Contractor will only be permitted to obtain a second Grader Beat Contract if he has continually met the performance requirements of his existing Contract as judged by the Director of Public Works, or his designate. 2.7.1.2 If the Contractor bids on two additional (2) Grader Beat Contracts at the same time, and is the low bidder on both, the decision to award one of these Contracts to this Contractor will be at the sole and unfettered discretion of the County. Grader Beat Contractor s that presently have a Grader Beat Contract that is up for Tender will be considered to be in this category.

3.0 INSURANCE REQUIREMENTS 3.1 The provision of all required insurance shall be at the expense of the Contractor and shall not limit his obligations under the Agreement. 3.2 The insurance required herein shall be with an insurer licensed to do business in Alberta and shall be maintained in full force effect for the duration of the Agreement and any extension thereof. 3.3 No work shall be performed until both parties have executed the Agreement thereto, and the liability insurance has been accepted by and filed with the County. a) Prior to execution of the Agreement, the Contractor shall provide an acceptable Certificate of Insurance as evidence that he has the following coverage: Comprehensive General Liability insurance in an amount not less than $1,000,000 inclusive per occurrence, (annual general aggregate, if any, not less than $2,000,000), insuring against bodily injury, personal injury and property damage including loss of use thereof. Such insurance shall extend to include blanket written contractual liability, products and completed operations liability, and employees as additional insured. The insurance shall also be in the joint names of the County and the successful Bidder (Contractor) and shall also cover as unnamed insured all subcontractors and anyone employed directly or indirectly by the Bidder. b) The Contractor shall be responsible for providing insurance against loss or damage to his equipment. c) The Contractor shall provide the County with two certified copies of the Certificate of Insurance upon request and all policies shall contain an endorsement to provide all named insured s with prior notice of change in cancellations. Such endorsements shall be in the following form: It is understood and agreed that the coverage provided by this policy will not be changed or amended in any way or cancelled until thirty days after written notice of such change or cancellation shall have been given to all named insured s. 4.0 OCCUPATIONAL HEALTH AND SAFETY ACT The Contractor shall familiarize himself, his staff and subcontractors with the terms of the Occupational Health and Safety Act and Regulations thereunder to ensure complete understanding respecting the responsibilities given and compliance required. The Contractor acknowledges that he is an "employer" as defined in the Occupational Health and Safety Act, and that he will, as a condition of the Agreement, comply with the Occupational Health and Safety Act and the regulations thereunder, including those as required by the County of Northern Lights own internal Safety Policy as they may be amended from time to time. 5.0 EQUIPMENT The contractor will provide a Motor Grader as described below: a) The Contractor's equipment must meet the following minimum requirements: - Be no more than 5 years old and have less than 7500 hours at time of bid. - Minimum 200 HP and a minimum operating weight of 35,000 lbs. - 14 foot mold board - snow wing

- Front plow available - Identifying number on grader (this will be supplied by the County) - Adequate headlights - Rotating amber light on top of canopy and/or flag (in good condition) - Four way flashers - 2 Flags on mould board ends, in good condition, and meet Motor Transport Act standards. - Sandvik or equivalent Original Equipment Manufacturers adaptor boards - County GPS unit for safety and tracking of hours to be installed by County staff. b) The motor grader must arrive at the project site equipped with an adequate set of regular blades, sandvik or equivalent blade adapter and tips. The County will provide blades and tips for use under the contract as set out in the County Policy. Pickup of tips and blades will be prearranged with designated County staff, within a reasonable time frame to ensure other work requirements are not interrupted unduly. Used blades and tips must be returned to the Main Office in Manning by the Contractor prior to obtaining replacement blades or tips. c) Equipment must be available to meet service levels required by the County. The hourly bid price will include the provision of all attachments required to fulfill the road maintenance service obligations within this contract. d) The County reserves the right to acquire new, different or experimental motor grader attachments or equipment as part of this contract. Any such changes will be negotiated in good faith between the Contractor and the County, and must be approved by Council. Negotiations may include a provision for financial compensation in the form of a one-time payment, or an incremental hourly rate increase. 6.0 COMMUNICATION EQUIPMENT The motor grader must be equipped with a two-way radio communication system and cellular phone, approved by the County and compatible with the County of Northern Lights equipment. The purchase or rental fees, and installation will be the responsibility of the Contractor. Minimum requirements are: - operational radio to communicate with County staff - operational cell phone - operational GPS unit, supplied and installed by the County 7.0 INDEPENDENT CONTRACTOR 7.1 It is the responsibility of the Contractor to comply with all licensing requirements of Provincial and Federal authorities. 7.2 The contractor shall be considered an independent contractor, shall provide the equipment identified and shall maintain it in good condition for the duration of the Agreement. 7.3 The contractor shall provide skilled and experienced and competent operators at all times, familiar with highway and local road traffic movements and laws governing vehicular traffic. 7.3.1 The Contractor is responsible for hiring, training and supervision of any operators to be utilized for this contract work. The County will allow the

training of operators, but only in the full time presence of a trained and capable operator. 7.3.2 If required, the Contractor will provide more training or a different operator capable of meeting the requirements of the Municipality. 7.4 Contract operators will be expected to conduct themselves in a professional and polite manner at all times. The County reserves the right to request the replacement of any operator who is not meeting the requirements of this contract. 7.5 The Contractor will be responsible for providing any advance warning signs as required under normal standards of safety and that may be required by legislation or regulation. In addition, the Director of Public Works or his designate may require additional signs to be placed at the work site before commencing daily operations and to be removed at the end of each work day. The work area must be no greater than 3 kms in length. Signs indicating the work area are to be no farther than 3 kms apart. Operators may be required to shorten the work area or provide additional signage, if intersecting roads onto the work area are creating a hazard. 7.5.1 Signs are to be of a professional grade and must meet or exceed the current Alberta Transportation Standards. 7.6 It is the Contractors responsibility to familiarize him or herself with all applicable legislation concerning Environmental regulations and guidelines. These include, but are not limited to: pollution control, fuel and oil spill containment procedures, transportation of dangerous goods, and waste handling procedures. 8.0 CONTRACTOR S DUTY AND INDEMNIFICATION 8.1 The Contractor shall indemnify and hold harmless the County, it's employees and agents, from any and all claims, demands, actions and costs, including costs on a solicitor and his own client basis, whatsoever that may arise, directly or indirectly, out of any act of omission of the contractor, his employees or agents, in the performance by the requirements of this Agreement 8.2 Such indemnification shall survive termination of the Agreement. 8.3 The County shall not be held liable nor responsible for any bodily or personal injury or property damage of any nature whatsoever that may be suffered or sustained by the Contractor, his employees or agents in the performance of this Agreement. 9.0 SCOPE OF WORK 9.1 Work performed under this Agreement shall take place within limits for working hours set down in federal or provincial legislation or regulations. The Contractor shall work at such locations and at such times as shall be directed by the Director of Public Works or his designate. The Municipality shall have first right jurisdiction of the contracted equipment. 9.2 With the use of one (1) grader only, the contractor shall provide the service requested as described in this Contract and the appropriate County policies, which may include the location and priority of required grading. Road problems identified by the contractor will be reported to the Director of Public Works or his designate. Work performed shall comply with the standards of the Public Works Department.

9.3 The Contractor will be required to report to work within 3 hours of being contacted for emergency and call-out situations, including weekends and statutory holidays. 9.5 The County reserves the right to utilize other privately owned or County owned equipment for grading or snowplowing within the contract area in order to ensure safe and acceptable conditions at all times. 9.6 The County reserves the right to require the grader to move from its assigned beat to another location upon direction of the Director of Public Works or his designate. Payment for this work shall be at the Contract rate. 9.7 The spreading of gravel will be considered as part of the Contractor s normal work, if requested to do so by the Director of Public Works or his designate. 9.8 The County reserves the right to increase or decrease the size of the Beat Area. The County may at its discretion not snowplow selected roads in the Beat Area. 9.9 The Contractor will not be allowed to sublet any work without the prior written approval of the Director of Public Works. 9.10 In event of equipment breakdown, the Contractor will be required to replace the unit with a similar unit within 24 hours. If the Contractor is unable to do so, the County, at its sole and unfettered discretion, may use alternate equipment. Any additional costs incurred by the County will be the responsibility of the Contractor. 9.11 The operator shall contact the area maintenance office from the worksite on a daily basis to report road conditions and hours worked. These reports shall be made between the hours of 07:00 and 09:00. Contractors are to notify the Area Supervisor if they are going to be away from the jobsite or have breakdowns that will last for more than one (1) hour. 10.0 OPERATIONAL PROCEDURES In addition to County Policies outlining operational procedures, the following must be adhered to: 10.1 Care must be taken to maintain a crown of approximately 3% minimum. 10.2 Retain super-elevation on curves where required. 10.3 Excess gravel is not to be stored along the edge of the roadway, or allowed to form a ridge along the edge of the roadway. 10.4 Debris, rocks or hazardous material pulled up to the road surface by the grader must be removed immediately. 10.5 Special care must be taken at all railway crossings and bridge decks to ensure gravel is not carried onto the tracks, flangeways or bridge decks. The operator must stop and inspect the rail surface after each crossing of the track, and remove any materials deposited in the flangeways. Care must be exercised not to damage the rails or bridges. Any damage noted must be reported to the County office immediately. 11.0 PAYMENT Invoices must be forwarded to the County office bi-monthly or monthly. Invoices will indicate the hours worked at the current bid price, and have attached to them a copy of the Contractor s daily time certificates indicating the following. Payment will be for

actual grading, snowplowing or other work as directed by the Director of Public Works Department. dates worked. starting and stopping time for each day worked. starting and stopping time for deadheading equipment, breakdowns, changing blades, and other activities such as meal breaks, refueling, etc. There will be no payment for these activities. miles of road graded and location (map), signed and dated by operator number of grader blades or sandvik tools changed signed copies of the operator s daily time slips. current WCB Clearance letter. Invoices will be processed and payment mailed within 30 days of receipt. GPS generated reports and maps will be used to assist with quality control, and performance evaluation. Failure to provide the appropriate information will result in delay of payment. 12.0 TERMINATION AND ASSIGNMENT 12.1 Failure to provide grading services satisfactory to County of Northern Lights in its sole and unfettered discretion may result in termination of this Agreement. The Director of Public Works, his designate, or the Area Supervisor will determine an acceptable quality of work. 12.1.1 If the Contractor fails to meet the minimum requirements and standards as set by the County, and if the Director of Public Works so directs, the County will hire and utilize other graders in the Contractors Beat Area to meet the minimum requirements and standards. The Contractor will be responsible for these additional costs. The Contractor will be provided with a description of the areas in which he has failed to meet these requirements. If the default in performance arises a second time, the County upon the recommendation of the Director of Public Works, and by Resolution of Council, may terminate the Contract and seize the performance bond. 12.2 In event of termination of the Agreement all rights and obligations pursuant to the Agreement of both the Contractor and the County of Northern Lights, that have accrued to the date of termination shall remain in force and effect. 12.3 This contract is non-transferable unless prior authorization by a Resolution of Council is obtained. 12.4 In addition to any other rights that the County may have hereunder, or in law, the County may at any time, in the exercise of its sole discretion, terminate without prior notice, this Agreement or any portion of the Agreement for the County s convenience by giving the Contractor written notice specifying that the Contract or a portion of the Contract has been terminated. Not so as to limit the generality of the foregoing, the County shall, in its sole discretion, be entitled to terminate this Contract if the Contractor:

12.4.1 should be adjudged bankrupt; 12.4.2 should make a general assignment for the benefit of its Creditors; 12.4.3 should be the subject of an appointment of a Receiver; 12.4.4 should cease to carry on in the ordinary course of business; 12.4.5 should refuse or fail to supply sufficiently properly skilled workmen; 12.4.6 should fail to make prompt payments to its employees, subcontractors or suppliers; 12.4.7 should in the opinion of the County persistently disregard instructions from the County; 12.4.8 should be otherwise in violation of the provisions of this Contract; or 12.4.9 should disregard any laws or ordinances. Upon termination, the Contractor shall not be entitled to receive any future payment or damages arising from the termination, including but not limited to loss of future income. 12.5 The County of Northern Lights will provide to the Contractor thirty (30) days written notice in the event of termination. 12.6 The Contractor may terminate the Contract by providing to the County of Northern Lights thirty (30) days written notice. 13.0 DISPUTE RESOLUTION 13.1 A Dispute is a difference arising out of the interpretation, application, operation, or any contravention or alleged contravention of this contract, or that seeks to enforce an obligation of the County to the Contractor or the Contractor to the County. 13.2 The County and the Contractor agree that all attempts will be made to reach a mutually agreeable resolution when a dispute arises. If a dispute arises and is not settled promptly representatives from each side agree to meet in an honest attempt to resolve the dispute. The dispute resolution process will focus on reducing expenses, reducing delay, finding solutions in an amicable manner and eliminating the need for third party intervention. If the parties involved cannot arrive at a mutually agreeable solution the issue will be brought before Council at the next regularly scheduled council meeting, with written statements from the Contractor and the County representative (engineer, consultant, staff member). Council will review the information and hear presentations from both a representative from the County and from the Contractor before reading a final and binding decision.

SCHEDULE A MAP OF THE GRADER MAINTENANCE AREA

SCHEDULE A MAP OF THE GRADER MAINTENANCE AREA