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HomeMy WebLinkAbout1998-02-09 City CouncilTO: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL 2 FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE: SUBJECT: February 9, 1998 APPROVAL OF CONTRACT WITH CONSTRUCTORS FOR PROVIDING CONSTRUCTION SERVICES CMR:129:9~ UTILITY OVERHEAD RECOMMENDATION Staff recommends that Council: Approve and authorize the Mayor to execute the attached contract with Utility Constructors for a period of six months in the amount of $313,872 to provide overhead construction services for the remainder of FY 1997-98. Authorize the City Manager or her designee to negotiate and execute one or more change orders to the contract with Utility Constructors for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $31,500. Authorize the City Manager or her designee to exercise the option to renew the contract for the following six months provided the contractor is responsive to the City’s needs, and the quality of the contractor’s work is acceptable during the first six months of the contract. DISCUSSION Project Description The work to be performed under the contract is for providing overhead construction services on the City ofPalo Alto’s (City) overhead electric transmission and distribution system. The contractor will be asked to provide an overhead crew to be used full time by the City’s CMR:129:98 Page 1 of 4 Electric Operations (Electric Operations) for a period of six months, subject to renewal. The contractor services will mainly be replacement of deteriorated poles on the overhead electrical system. Other services may include: replacements of transformers, air switches, connectors, insulators, conductors, and other miscellaneous equipment. In addition, the contractor will be available to assist Electric Operations in restoring power during storm ¯ situations. Staff is recommending the use of a contractor to perform this work because our electric line workforce has been understaffed for at least six months. Our staff is currently able to keep up with the new business requests, underground construction, and some maintenance work. However, they have not been able to keep up with the pole replacements due to 6tir commitments on customer connection work. : Selection Process Staff sent a Request for Proposals (RFP) to 4 builder exchanges and 17 contractors on November 13, 1997. The proposal period was 34 days. A total of seven firms submitted proposals. Proposals ranged from $300,560. to $360,786. (See Attachment "A"). Those firms not responding indicated that they did not submit a proposal because: 1) they are too busy at the present time to take on new projects, 2)do not supply the required service, or 3) do not have a local office in the area. A selection advisory committee consisting of Utilities Engineering and Operations Division personnel reviewed the proposals, and four firms were invited to participate in oral interviews on January 6, 1998 (See Attachment "A"). The committee Carefully reviewed each firm’s qualifications and submittal in response to the RFP relative to the following criteria: experience relating to the requirements, references, fees, apparent understanding of the RFP, ability to respond in a timely manner, qualifications of the crew foreman, and the completeness of the proposal. The selection advisory committee ranked the four firms that participated in the oral interviews based on their qualifications and responses to the questions asked. Utility Constructors was ranked first and was asked to come in for negotiations. Utility Constructors was selected because of its recent experience with related projects, understanding of the RFP, answers to the questions in the interview, ability to start on the scheduled time, and the Foreman’s qualifications and experience. On January 8, 1998, a meeting was held with Utility Constructors to clarify any items in the scope of services to be CMR: 129:98 Page 2 of 4 provided and to negotiate the fee. The meeting was successful and resulted in decreasing the fee from $334,963 to $313,872, a savings of approximately $21,000 to the City. In addition, Utility Constructors brought back ideas that can further cut the cost and increase the savings to the City. The majority of the poles to be replaced are located in rear easements. Therefore, a great deal of public contact will be required. Utility Constructors recently completed an emergency pole replacements project for the City, where all the poles were Iocated in rear easements. The project was completed successfully, safely, efficiently, and satisfactorily. Utility Constructors demonstrated superior customer relations skills in dealing with the City’s homeowners. Utility Constructors is a one-client company during the length of the contract. They will house their crews locally to allow for minimal emergency response time when requested during storm situations. Its familiarity with the City and knowledge of the City procedures is an added advantage. Therefore, staff is recommending the selection of Utility Constructors for this contract. Staff checked references supplied by the contractor for previous work performed by Utility Constructors and found no complaints. Staff also checked the contractor’s license with the Contractor’s State License Board and found that the contractor has an active license on file. RESOURCE IMPACT Funds for this project are available in the FY 1997-98 Electric Capital Improvement Program Budget and Distribution Operation and Maintenance Budget. This action has no impact on construction work forces since it is being performed by an outside contractor. POLICY IMPLICATIONS The Award of this contract does not represent any change to existing City policies. ENVIRONMENTAL REVIEW This project is categorically exempt from California Environmental Quality Act (CEQA). CMR: 129:98 Page 3 of 4 ATTACHMENTS Attachment "A": Attachment "B": Proposal Summary Contract PREPARED BY: Sager Farraj, Senior Power Engineer DEPARTMENT HEAD: Director CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager CMR: 129:98 Page 4 of 4 o (DO ATTACHMENT "B" , CONTRACT NO. BETWEEN THE CITY OF PALO ALTO AND UTIITY~ CONSTRUCTORS FOR OVERHEAD CONSTRUCTION SERVICES This Contract No.is entered into , by and between the CITY OF PALO ALTO, a chartered city and a municipal corporation of the State of California ("CITY"), and UTILITY CONSTRUCTORS, a partnership located at 7039 Ceres Ct., Suite 15, Redding, CA 96002 ("CONTRACTOR"). RECITALS: WHEREAS, CITY desires certain overhead construction services ("Services"), as more fully described in Exhibit "A"; and WHEREAS, CITY desires to engage CONTRACTOR, including its employees, if any, in providing the Services by reason of its qualifications and experience in performing such Services, and CONTRACTOR has offered to provide the Services on the terms and in the manner set forth herein; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Contract, the parties agree: SECTION I. TERM I.I This Contract will commence on the date of its execution by CITY. The obligation of CONTRACTOR to perform the Services will commence in accordance with the £ime schedule set forth in Exhibit "~’. Time is of the essence of this Contract. In the event that the Services are not completed within the specified time schedule on account of CONTRACTOR’s default, CITY’s city ¯ manager will have the option of extending the time schedule for any period of time. This provision will not preclude the recovery of damages for delay caused by CONTRACTOR. SECTION 2. CONTRACTOR QUALIFICATIONS,STATUS,AND DUTIES OF 2.1 CONTRACTOR represents and warrants that it has the expertise and professional qualifications to furnish or cause to be furnished the Services. CONTRACTOR further represents and warrants that the project director and every individual charged with the performance of the Services under this Contract are duly licensed or certified by the State of California, to the extent such licensing or certification is required by law to perform the Services. 2.2 In reliance on the representation and warranty set forth in. Section 2.1, CITY hires CONTRACTOR to perform, and CONTRACTOR covenants and agrees that. it will furnish or cause to be furnished, the Services. 980116 syn 0071351 1 2.3 CONTRACTOR will assign HOLLY R. SINGLETON as the project director to have supervisory responsibility for the performance, progress, and execution of the Services. If circumstances or conditions subsequent to the execution of this Contract cause the substitution of the project director for any reason, the appointment of a substitute project director will be subject to the prior written approval of the project manager. 2.4 CONTRACTOR represents and warrants that ii will: 2.4.1 Procure all permits and licenses, pay all charges and fees, and give all notices which may be necessary and incident to the d~e and lawful prosecution of the Services; 2.4.2 Keep itself fully informed of all existing and future Federal, State of California, and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this Contract, any materials used in CONTRACTOR’s performance under this Contract, or the performance of the Services; 2.4.3 At all times observe and comply with, and cause its employees and contractors (and consultants), if any, who are assigned to the performance of this Contract to observe and comply with, the laws, ordinances, regulations, orders and decrees mentioned above; and 2.4.4 Will report immediately to the project manager, in writing, any discrepancy or inconsistency it discovers in the laws, ordinances, regulations, orders, and decrees mentioned above in relation to any plans, drawings, specifications or provisions of this Contract. 2.5 Any reports, information, data or other material given to, or prepared or assembled by, CONTRACTOR or its contractors, if any,~under this Contract will become the property of CITY and will not be made available to any individual or organization by CONTRACTOR or its contractors, if any, without the prior written approval of the city manager. 2.6~ CONTRACTOR will provide CITY with zero copies of the final report, if any, which may be required under this Contract, upon completion and acceptance of each report by CITY. 2.7 If CITY requests~ additional copies of reports, drawings, specifications or any other material which CONTRACTOR is required to furnish in limited quantities in the performance of the Services, CONTRACTOR will provide such additional copies and CITY will compensate CONTRACTOR for its duplication costs. 2.8 CONTRACTOR will be responsible for employing or engaging all persons necessary to perform the Services. All contractors of CONTRACTOR will be deemed to be directly controlled and supervised by CONTRACTOR, which will be responsible for their performance. If any employee or contractor of CONTRACTOR fails or 980116 syn 0071351 refuses to carry out the provisions of this Contract or appears to be incompetent or to act in a disorderly or improper manner, the employee or contractor will be discharged immediately from further performance under this Contract on demand of the project manager. SECTION 3.DUTIES OF CITY 3.1 CITY will furnish or cause to be furnished the specified services set forth in Exhibit "A" and such other information regarding its requirements as may be reasonably requested by CONTRACTOR. 3.2 The city manager will represent CITY for all purposes under this Contract. SAGER FARRAJ is designated as the project manager for the city manager. The project manager will supervise the performance, progress, and execution of the Services, and will be assisted by MEL LAFLAM, the Supervisor of Electrical Construction. 3.3 If CITY observes or otherwise becomes aware of any default in the performance of CONTRACTOR, CITY will use reasonable efforts to give written notice thereof to CONTRACTOR in a timely manner. SECTION 4 - COMPENSATION 4.1 In consideration of the full performance of the Services by CONTRACTOR, CITY will pay CONTRACTOR a total sum not to exceed three hundred thirteen thousand eight hundred seventy-two dollars ($313,872) payable within thirty (30) days of submission by CONTRACTOR of its itemized billings, in triplicate, in accordance with the following fee schedule set forth in Exhibit "B". Payment of the services will be made in monthly progress payments in proportion to the quantum of services performed,-as set forth in Exhibit ’~". SECTION 5.~ AUDITS 5.1- CONTRACTOR will permit CITY to audit, at any reasonable time during the term of this Contract and for three (3) years thereafter, CONTRACTOR’s records pertaining to matters covered by this Contract. CONTRACTOR further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Contract. SECTION 6. INDEMNITY 6.1 CONTRACTOR agrees to protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, caused by or arising out of CONTRACTOR’s~ its officers’, agents’, Subcontractors’ or employees’ negligent acts, errors, or omissions, or willful misconduct, or conduct for which applicable law may impose strict liability on CONTRACTOR in the 980116 syn 0071351 performance of or failure to perform its obligations under this Contract. SECTION 7. WAIVERS 7.1 The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Contract, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of.any other term, covenant, condition, provision, .ordinance or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder will not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, condition or provision of this Contract or of any applicable law or ordinance. 7.2 No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Contract. SECTION 8.INSURANCE AND BONDS 8.1 CONTRACTOR, at its sole cost and expense, willobtain and maintain, in full force and effect during the term of this Contract, the insurance coverage described in Exhibit "C", insuring not only CONTRACTOR and its contractors, if any, but also, with the exception of workers’ compensation, employer’s liability, and professional liability insurance, naming CITY as an additional insured concerning CONTRACTOR’s performance under this Contract. 8.2 All insurance coverage required hereunder will be provided through carriers with Best’s Key Rating Guide ratings of A:X or higher which are admitted to transact insurance business in the State of California. Any and all contractors of CONTRACTOR retained to perform Services under this Contract will obtain and maintain, in full force and effect during the term of this Contract, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 8.3 Certificates of such insurance, preferably on the forms provided by CITY, will be filed with CITY concurrently with the execution of this Contract. The certificates will be subject to the approval of CITY’S risk manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled or altered by the insurer except after filing with CITY’s city clerk thirty (30) days’ prior written notice of such cancellation or alteration, and that the City of Palo Alto is named as an additional insured except in policies of workers’ compensation, employer’s liabilfty, and professional liability insurance. Current certificates of such insurance will be kept on file at all times during the term of this Contract with the city clerk. 4 980116 ~!n 0071351 _i 8.4 The procuring of such required policy or policies of insurance will not be construed to limit CONTRACTOR’s liability hereunder nor to fulfill the indemnification provisions of this Contract. Notwithstanding the policy or policies of insurance, CONTRACTOR will be obligated for the full and total amount of any damage, injury, ~or loss caused by or directly arising as a result of the Services performed under this Contract, including such damage, injury, or loss arising after the Contract is terminated or the term has expired. 8.5 Bonds. CITY may require CONTRACTOR to furnish a Performance Bond in advance of COh~JiCTOR performing specific tasks, and CONTRACTOR shall furnish the Bond as a condition of Performance. The amount of the Bond shall be determined by CITY at the time CITY requests CONTRACTOR to perform such tasking and shall reflect the cost of the task. SECTION 9. WORKERS’ COMPENSATION 9.1 CONTRACTOR, by executing this Contract, certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against~ liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing the performance of the Services. SECTION I0. SERVICES TERMINATION OR SUSPENSION OF CONTRACT OR I0.I The city manager may suspend the perfo ~rmance of the Services, in whole or in part, or terminate this Contract, with or without cause, by giving thirty (30) days’ prior written notice thereof to CONTRACTOR. Upon receipt of such notice, CONTRACTOR will immediately discontinue its performance of the Services. 10.2 CONTRACTOR may ~erminate this Contract or suspend its performance of the Services by giving thirty (30) days’ prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY or’in the event ~CITY indefinitely withholds or withdraws its request for the initiation or continuation of the Services to be performed. 10.3 Upon such suspension or termination by CITY, CONTRACTOR will be paid for the Services actually rendered to CITY on or before the effective date of suspension or termination; provided, however, if this Contract is suspended or terminated on account of a default by CONTRACTOR, CITY will be obligated to compensate CONTRACTOR only for that portion Of the Services which are of direct and immediate benefit to CITY, as such ~determination may be made by the city manager acting in the reasonable exercise of her discretion. 980116 syn 0071351 10.4 Upon such suspension or termination, CONTRACTOR will deliver to the city manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONTRACTOR or its contractors, if any, or given to CONTRACTOR or its contractors, if any, . in connection with this Contract. Such materials will become the property of CITY. 10.5 The failure of CITY to agree with CONTRACTOR’s independent findings, conclusions, or recommendations, if the same are called for under this Contract, on the basis of differences in matters of judgment, will not be construed as a failure on the part ~of CONTRACTOR to fulfill its obligations under this Contract. ~SE~TION ii.ASSIGNMENT ii.I This Contract is for the personal services of CONTRACTOR, therefore, CONTRACTOR will not assign, transfer, convey, or otherwise dispose of this Contract or any right, title or interest in or to the same or any part thereof without the prior written consent of CITY. A consent to one assignment will not be deemed to be a consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void and, at the option of the city manager, this Contract may be terminated. This Contract will not be assignable by operation of law. SECTION 12 NOTICES 12.1 All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY:Office Of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 To CONT~RACTOR: Attention of the project director at the address of CONTRACTOR recited above SECTION 13 CONFLICT OF INTEREST 13.1 In accepting this Contract, cONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 13.2 CONTRACTOR further covenants that, in the performance of this Contract, it will not employ any contractor or person having such an interest. CONTRACTOR certifies that no person who has or will have any financial interest under this Contract is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the 980116 syn 0071351 Palo Alto Municipal Code and the Government Code. of the State of California. SECTION 14. NONDISCRIMINATION 14.1 As set forth in the Palo Alto Municipal Code, no discrimination will be made in the employment of any person under this Contract because of the age, race, color, national origin, ancestry, religion, disability, sexual preference or gender of that person. If the value of this Contract is, or may be, five thousand dollars ($5,000) or more, CONTRACTOR agrees to meet all requirements of the Palo Alto Mu~icip&! C~de pertaining to nondiscrimination in employment, including completing the requisiteform furnished by CITY and set forth in Exhibit "D". 14.2 CONTRACTOR agrees that each contract for services with an independent provider will contain a provision substantially as follows: "[Name of Provider] will provide CONTRACTOR with a certificate stating that [Name of Provider] is currently in compliance with all Federal and State of California laws covering nondiscrimination in employment; ~and that [Name of Provider] will not discriminate in the employment of any person under .this contract because of the age, race, color, national origin, ancestry, religion, disability, sexual preference or gender of such person." 14.3 If CONTRACTOR is found in violation of the nondiscrimination provisions of the State of California Fair Employment Practices Act or similar provisions of Federal law or executive order in the performance of this Contract, it will be in default of this Contract. Thereupon, CITY will have the power to cancel or suspend this Contract, in whole or in part, or to deduct the sum of twenty-five dollars ($25) for each person for each calendar day during which such person was subjected to acts of discrimination, as damages for breach of contract, or both. Only a finding of the State of California Fair Employment Practices Commission or the equivalent federal agency or officer will constitute evidence of a breach of this Contract. 14.4 If CONTRACTOR is in default of the nondiscriminationprovisions of this Contract, CONTRACTOR will be found in material breach of this Contract. Thereupon, CITY will have the power to cancel or suspend this Contract, in whole or in part, or to deduct from the amount payable to CONTRACTOR the sum of two hundred fifty dollars ($250) for each calendar day during which CONTRACTOR is not in compliance with this provision as damages for breach of contract, or both. 9EO 116 syn 0071351 7 SECTION 15. MISCELLANEOUS PROVISIONS 15.1 CONTRACTOR represents and warrants that it has knowledge of the requirements of the Americans with Disabilities Act of 1990, and the Government Code and the Health and Safety Code of the State of California, relating to access to public buildings and accommodations for disabled persons, and relating to facilities~ for disabled persons. CONTRACTOR will comply with or ensure by ’its advice that compliance with such provisions will be effected in the performance of this Contract. 15.2 This Contract will be governed by the laws of the State of California, excluding its conflicts of law. 15.3 In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California or in the United States District Court for the Northern District of California in the County of Santa Clara, State of California. 15.4 The prevailing party in any action brought to enforce the provisions of this Contract may recover its reasonable costs and attorneys’ fees expended in connection with that action. 15.5 This document represents the entire and integrated agreement between the parties and supersedes all prior negotia- tions, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties.- 15.6 All provisions of this Contract, whether covenants or conditions, will be deemed to be both covenants and conditions. 15.7 The covenants, terms, conditions and provisions of this Contract will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and contractors, as the case may be, of the parties. 15.8 If a court of competent jurisdiction finds or rules that any provision of this Contract or any amendment thereto is void or unenforceable, the unaffected provisions of this Contract and any amendments thereto will remain in full force and effect. 15.9 All exhibits referred to in this Contract and any addenda, appendices, attachments, and schedules which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Contract and will be deemed to be a part of this Contract. 15.10 This Contract may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one. and the same instrument. 15.11 This Contract is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal 980116 syn 0071351 Code. This Contract will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Contract are no longer available. This Section 15.11 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Contract. IN WITNESS WHEREOF, the .parties hereto have by their duly authorized representatives executed this Contract on the date first above written. ATTEST:CITY OF PALO ALTO City Clerk APPROVED AS TO FORM: Mayor Senior Asst. City Attorney Assistant City Manager Director of Utilities .UTILITY CONSTRUCTORS By:. //~t t~~ Taxpayer’s I.D. No. 68-0328862 Acting Director of Administrative Services Risk Manager Attachments: SCOPE OF SERVICES AND TIME SCHEDULE PROPOSAL QUOTATION/FEESCHEDULE AND ADDENDUM INSURANCE NONDISCRIMINATION COMPLIANCE FORM 980116 syn 0071351 CERTIFICATE OF ACKNOWLEDGEMENT (Civil Code S 1189) STATE OF COUNTY OF ,) On.<~.~_ ~ ~ 15~ ~ 1998, before me, ~$;r/~7 ~..2"~, ~-4.-~a Notary Publlc_~.n’an~ for said County and Stat~, personally appeared //~/i~l-~z~i/~ ~o~ ., perso~ally~o~ to me or proved to ~e on the basis of satisfacto~ evidence to be the person(s) whose n~e(s) is/are subscribed to the within inst~ent and ac~owledged to me that he/she/they executed the s~e in his/her/their authorized capacity(ies), and that by hls/her/their signature(s) on the instr~ent the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. /( S~nature of ~otary Public "’ V/A I-T":RS C,.L~,’m. Ho. 1052723 MARCH I, 1999 980116 syn 0071351 10