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Home My WebLink About2020-09-28 City Council Agendas (7) City of Palo Alto (ID # 11572) City Council Staff Report Report Type: Consent Calendar Meeting Date: 9/28/2020 City of Palo Alto Page 1 Summary Title: Amendment No. 2 to S20178094 with Management Partners, Inc. Title: Approval of Amendment Number 2 to Contract Number S20178094 With Management Partners, Inc., to Extend the Term Through March 31, 2021 and Increase Compensation by $85,000 for Procurement Advising Services for a new Not-to-Exceed Amount of $170,000 From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the City Council authorize the City Manager or designee to execute Amendment No. 2 (Attachment A) to Contract No. S20178094 with Management Partners, Inc., to extend the term through March 31, 2021 and increase the total not-to-exceed amount by $85,000, bringing the total not-to-exceed amount to $170,000 for consultant services for the City’s Purchasing and Contract Administration Division. Background The City’s Purchasing and Contract Administration Division is housed in the Administrative Services Department and facilitates the sourcing, negotiation, and contracting needs of the City. Support for the organization ranges from purchasing small dollar items (such as parts or equipment), to multi-year capital projects (such as the California Avenue Parking Garage and Public Safety Building), to complex agreements for general, professional, technology and other services. The level of complexity for these projects requires technical expertise to navigate through various analyses, strategies, laws, regulations, and policies. Staff vacancies in the Purchasing and Contract Administration Division, including the Chief Procurement Officer position, have been difficult to fill – which has not been made easier by the COVID-19 pandemic. Recognizing the need for a qualified expert to advise Staff on complex procurements and solicitations and other technical aspects of purchasing and to provide expert advice on how the Division can more effectively manage workload, cycle time, and improve overall business processes, Staff engaged Management Partners, Inc. to provide services in these areas while the Chief Procurement Officer is recruited. The original contract had a total not-to-exceed amount of $85,000 and was entered into on January 27, 2020 for a five-month City of Palo Alto Page 2 term. An exemption to the solicitation process was granted under the Palo Alto Municipal Code (PAMC) section 2.30.360(d) due to the qualifications and technical expertise of the firm’s proposed special advisor for the engagement. Discussion Delays in the recruitment of the Chief Procurement Officer resulted in Amendment No. 1 to this contract, extending the term from June 30, 2020 to December 31, 2020 at no added cost. While the Division continues to actively work to fill this post, the above services continue to be needed. Staff therefore recommends that City Council approve Amendment No. 2 to extend the term of the contract through March 31, 2021 and to increase the total not-to-exceed amount to $170,000. Based on Staff’s recruitment strategy for the Division, Staff anticipates that vacancies will be filled by Spring 2021. Should staffing vacancies be filled prior to this timeline, Staff will cease the services as allowed by the contract terms. Resource Impact Amendment No. 2 adds an additional $85,000 to the agreement with Management Partners, Inc., bringing the total not-to-exceed amount to $170,000. Funding for this contract will be absorbed by the Administrative Service Department’s FY 2021 Adopted Budget, specifically the reallocation of vacancy savings from vacant management staffing in this division. No additional appropriation is needed to fund this contract. Stakeholder Engagement The Purchasing and Contract Administration Division has worked with Management Partners for the past several months and has obtained positive feedback from Departments on the firm’s technical knowledge and friendly customer service approach. Environmental Review This contract is exempt from the California Environmental Quality Act (CEQA). Attachments: • Attachment A: Amendment No. 2 to Contract No. S20178094 Management Partners Vers.: Aug. 5, 2019 Page 1 of 3 AMENDMENT NO. 2 TO CONTRACT NO. S20178094 BETWEEN THE CITY OF PALO ALTO AND MANAGEMENT PARTNERS, INC. This Amendment No. 2 (this “Amendment”) to Contract No. S20178094 (the “Contract” as defined below) is entered into as of September 21, 2020, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MANAGEMENT PARTNERS, INC., an Ohio Corporation, located at 2107 N. First Street, Suite 470, San Jose, CA 95131 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of providing special advisor services for the City’s Purchasing and Contract Administration Division, as detailed therein. B. The Parties now wish to amend the Contract in order to extend the term of the Contract through March 31, 2021 and to increase the total not‐to‐exceed amount of compensation by Eight Five thousand dollars ($85,000), for a new total not‐to‐exceed amount of the Contract of $170,000, as detailed herein. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a.Contract. The term “Contract” shall mean Contract No. S20178094 between CONSULTANT and CITY, dated January 27, 2020, as amended by: Amendment No. 1, dated June 27, 2020 b.Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2, “Term”, of the Contract is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through March 31, 2021 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4, “Not to Exceed Compensation”, of the Contract is hereby amended to read as follows: DocuSign Envelope ID: 2CCD589D-1EDE-481A-AD9A-30FD9A3F4DBA Attachment A Vers.: Aug. 5, 2019 Page 2 of 3 “The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (also referred to herein as the “Basic Services”), and reimbursable expenses, shall not exceed One Hundred Seventy Thousand Dollars ($170,000.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for Basic Services, Additional Services and reimbursable expenses shall not exceed One Hundred Seventy Thousand Dollars ($170,000.00). The applicable rates and schedule of payment are set out at Exhibit “C‐1”, entitled “SCHEDULE OF RATES,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY per Exhibit C. “Additional Services” shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”.” SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: 2CCD589D-1EDE-481A-AD9A-30FD9A3F4DBA Vers.: Aug. 5, 2019 Page 3 of 3 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager (Contract over $85k) APPROVED AS TO FORM: City Attorney or designee (Contract over $25k) Contracts Administrator (Checklist Approval) MANAGEMENT PARTNERS, INC. Officer 1 By: Name: Jerry Newfarmer Title: President and CEO Officer 2 (Required for Corp. or LLC) By: Name: Amy C. Paul Title: Vice President and Treasurer DocuSign Envelope ID: 2CCD589D-1EDE-481A-AD9A-30FD9A3F4DBA