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HomeMy WebLinkAbout1998-05-11 City Council (11)City of Palo Alto City Manager’s Report TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: UTILITIES 5 DATE: SUBJECT: MAY 11, 1998 CMR:227:98 REQUEST FOR APPROVAL OF A BUDGET AMENDMENT ORDINANCE IN THE AMOUNT OF $60,000 FOR ADDITIONAL OVERHEAD MAINTENANCE WORK AND APPROVAL OF AMENDMENT NO. 1 OF CONTRACT WITH UTILITY CONSTRUCTORS FOR PROVIDING OVERHEAD CONSTRUCTION SERVICES REPORT IN BRIEF This report requests that Council approve a Budget Amendment Ordinance (BAO) in the amount of $60,000 for additional overhead maintenance work required on the electric system and approve an amendment to an existing construction services contract (C8101269) with Utility Constructors, to increase the contract amount by $60,000 for this additional maintenance work. CMR:227:98 Page 1 of 3 RECOMMENDATION Staff recommends that Council: Adopt the attached BAO in the amount of $60,000 for additional overhead maintenance work required on the electric system. Approve and authorize the Mayor to execute the attached amendment to contract C8101269 with Utility Constructors, to increase the contract amount by $60,000. The new total contract price will be $373,872. DISCUSSION In February 1998, the City entered into a contract with Utility Constructors, in the amount of $313,872 for providing overhead construction services .on the City’s overhead electric transmission and distribution system (Reference CMR: 129:97). The contractor was asked to provide an overhead crew to be used full time by the City’s Electric Operations (Electric Operations) for a period of six months, subject to renewal for another six months. Utility Constructors was selected in response to a formal request for proposals (RFP) that staffhas issued on November 13, 1997. A total of seven fLrms submitted proposals. A selection advisory committee consisting of Utility Engineering and Operations Division personnel reviewed the proposals, and four firms were invited to participate in oral interviews on January 6, 1998. The committee carefully reviewed each firm’s qualifications and submittal in response to the RFP relative to the following criteria: a combination of experience relating to the requirements, the references, the fees, the apparent understanding of the RFP, the ability to respond in a timely manner, the qualifications of the Crew Foreman, and the completeness of the proposal. 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. The contractor services mainly include: replacement of deteriorated poles on the overhead electrical system, replacements of transformers, air switches, connectors, insulators, conductors, and other miscellaneous equipment. As a result of an ongoing overhead line inspection program required by General Order 95 of the State of California, several potential problems and safety hazards have been identified. Utilities Engineering and Operations proposes to have the contractor onboard (Utility Constructors) perform this .high priority maintenance work to maintain the safety of the overhead electric system. CMR:227:98 Page 2 of 3 Utility Constructors has agreed to perform the additional maintenance work under the existing contract. Funding for this additional work was not included in the price of the original contract which will require an additional $60,000. The attached amendment will increase the contract amount by $60,000 for a total contract price of $373,872. " RESOURCE IMPACT A BAO in the amount of $60,000 is requested, to come from the Electric Utility Fund Rate Stabilization Reserve to the Electric Operations O&M Operating Budget. POLICY IMPLICATIONS This report does not represent any change to existing City policies. ENVIRONMENTAL REVIEW Categorically exempt from CEQA. ATTACHMENTS Attachment A: Attachment B: PREPARED BY: Sager Farraj DEPARTMENT HEAD: CITY MANAGER APPROVAL: Budget Amendment Ordinance Amendment No. 1 to Contract C8101269 Jo Director of Utilities CMR:227:98 Page 3 of 3 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1997-98 TO PROVIDE AN ADDITIONAL APPROPRIATION IN THE AMOUNT OF $60,000 FOR OVERHEAD MAINTENANCE WORK ON THE ELECTRIC SYSTEM WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 23,1997 did adopt a budget for fiscal year 1997-98; and WHEREAS, the City entered into a contract to provide overhead construction services on the City’s overhead electric transmission and distribution system; and WHEREAS, as a result of system inspections, additional high priority maintenance work needs to be performed during 1997-98 in order to maintain service reliability to utility Customers; and WHEREAS, the maintenance work will cost $60,000 and an additional appropriation is needed in the Distribution Operations and Maintenance budget; and WHEREAS, City Councilauthorization is needed to amend the 1997-98 budget as hereinafter set forth. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION I. The sum of Sixty Thousand dollars ($60,000) is hereby appropriated to the non-salary expenses in the Dis- tribution Systems Operations & Maintenance Functional Area in the Electric Fund. SECTION 2. This transaction will reduce the Electric Fund Rate Stabilization Reserve from $21,451,871 to $21,391,871. SECTION 3. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City-Council is required to adopt this ordinance. SECTION 4. This project has been determined to be categorically exempt under Section 15302 of the California Environmental Quality Act. SECTION 5. As provided in Section’2.04.350 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED: Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director, Administrative Services Department Director of Utilities AMENDMENT NO. ONE TO CONTP~ACT NO. C8101269 BETWEEN THE CITY OF PALO ALTO ~ UTILITY CONSTRUCTORS This Amendment No.One to Contract No. C8101269 ("Contract") 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 St., Suite 15, Redding, California 96002 ("CONTRACTOR"). RECITALS: WHEREAS, the Contract was entered into between the parties for the provision of providing overhead construction services; and WHEREAS, the parties wish to amend the Contract; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: follows: SECTION I.Section 4 is hereby amended to read as "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 Seventy-Three Eight Hundred Seventy-Two Dollars ($373,872) 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 2. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. 980417 syn 0071404 1 IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. ATTEST:CITYOF PALO ALTO City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: Mayor UTILITY CONSTRUCTORS By: ? Taxpayer I.D. No. 68-0328862 Assistant City Manager Director of Utilities Acting Director of Administrative Services Purchasing/Insurance Review 2 9g0417 s),n 0071404 CERTIFICATE OF ACKIqOWLEDGMENT (Civil Code § 1189) STATE OF COUNTY On $~.o~ ~’: /©©~ , before me, the undersigned, a notary publi~z in and for ~said County,, personally appeared perso,na~ly known ~6 me /o~_r ~roved to m___~_~ on ~h__e__~asis of__ satisfactory evidence[ to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official sea!. ~’ ~[’~Hota~y P~cI~c -- Ca~Ifc~’ga 9g0417 syn 0071404