Loading...
HomeMy WebLinkAbout1997-05-19 City Council (32)City of Pah) Alto Manager’s Rep }rt TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: UTILITIES AGENDA DATE: May 19, 1997 CMR:242:97 SUBJECT:Award of Contract to Price Technical Services for Installation of Phases 3-7 of the Fiber Optic Backbone System REOUEST This is a request for approval of a contract with Price Technical Services in the amount of $174,507.20 for Installation of Phase 3-7 of the Fiber Optic Backbone Systeml RECOMMENDATIONS Staff recommends that Council: Approve and authorize the Mayor to execute the attached contract with Price Technical Services in the amount of $174,507.20 for Installation of the Dark Fiber Optic Backbone System. Authorize the City Manager or her designee to negotiate and execute one or more change orders to the contract to cover additional related but unforeseen work which may develop during the project. The value of these change orders shall not exceed $17,500. POLICY IMPLICATIONS The award of this contract is consistent with existing polices. EXECUTIVE SUMMARY On May 8, 1995, the City Council approved funding for a Telecommunications Strategy Study (CMR:240:95). The overall goal of the study was to identify the best City strategy for accelerating the pace at which high quality, low cost, advanced telecommunications services are delivered throughout Palo Alto while limiting any negative impacts on Palo Alto’s physical environment. On August 5, 1996, Council approved staff’s recommendation for achieving this CMR:242:97 Page 1 of 3 goal by establishing a Telecommunications Program as a subfund of the Electric Utility and funding a strategy involving development of a Dark Fiber Optic Backbone in or around Palo Alto (CMR:361:96). Staffhas since completed the engineering necessary to install the Dark Fiber Optic Backbone around Palo Alto. Although the preliminary design involved a single 15-mile fiber optic ring with two fiber optic cables installed in parallel, Electric Utility staff have enhanced the design by incorporating feedback from prospective users into the design process. Without increasing the total cost of the project, staffwas able to modify the design to cover a total route of 26.5 miles with one or more 144-strand, single mode fiber optic cables (see Figure 1). The new City fiber optic network design is a custom-configurable network backbone consisting of a series of seven fiber rings that can be used individually or combined to form larger rings. Portions of rings can also be used for point-to-point connections. The end result will be a fiexible dark fiber optic network that can be tailored to meet the needs of many parties. The construction project has been divided into eight phases. Phase 1 was completed in March 1997. Construction for phase 2 is in progress and the cable installation, which will be performed by City’s crew, will begin shortly and is scheduled for completion in June 1997. Construction work for Phases 3-7 will be contracted. Phase 8 will be deferred so that it can be coordinated with the construction of the new underground utility district along Middlefield Road and Embarcadero Road that is plarm, ed for FY 1998-1999. Project Description The work to be performed under this contract is mainly to install the fiber optic cables for phase 3 thru 7. The cables will be installed in existing communication conduits or attached to utility poles in areas where there are no conduits. The contractor will be installing approximately 70 percent of the Dark Fiber Optic Backbone. The remaining 30 percent will be installed by the Electric Engineering staff. Also included in the contract as optional additional work are: - install inner ducts in existing conduits - install new messenger wire on utility poles to attach the fiber optic cable - perform limited splicing and testing to establish essential fiber optic ring continuity for monitoring the system. Bid Process Requests for bids for the fiber optic backbone system installation were sent out on March 21, 1997, to 13 contractors. The bidding period was 31 days. A mandatory pre-bid meeting was held on April 8, 1997; seven bidders attended the meeting. Bids were received from four qualified contractors on April 22, 1997, as listed on the attached bid summary (Attachment A). CMR:242:97 Page 2 of 3 Bids ranged from a high of $315,721.95 to a low bid of $174,507.20. Those contractors not responding indicated they were presently too busy to take on new projects and therefore are unable to be competitive in their bids. Staff has reviewed all the bids submitted and recommends the low bid of $174,507.20 submitted by Price Technical Services be determined by Council to be the lowest responsible bid and the bid awarded accordingly. The low bid is 8 percent below the engineer’s estimate of $190,000. The contingency amount of $17,500, which equals 10 percent of the total contract, is requested to cover additional related but unforeseen work which may develop during the project. Staff checked references supplied by the contractor for previous work performed by Price Technical Services and found no complaints. Staff checked the contractor’s license with the State of California, and it is active with no complaints on file. FISCAL IMPACT Funding for this project was approved as a Budget Amendment Ordinance to use $2,061,600 from the Electric Rate Stabilization Reserve.(CMR:361:96) ENVIRONMENTAL ASSESSMENT As required by the California Environmental Quality Act, an environmental assessment was prepared for the Electric Utility’s overall Dark Fiber Infrastructure project resulting in a Mitigated Negative Declaration. This environmental assessment (EIA-96-35) was presented to City Council on April 7, 1997 (CMR: 177:97) ATTACHMENTS Attachment A: Bid Summary Attachment B: Contract Attachment C: Fiber Ring Map (Fig. 1) PREPARED BY: Patrick Valath and Tomm Marshall DEPARTMENT HEAD APPROVAL: CITY MANAGER APPROVAL: EDWAR!~ J. MRIZEK . Director of Utilities Assistant City Manager CMR:242:97 Page 3 of 3 Municpal ~ervice Center AA H~. !01 AC STANFORD UNIVERSITY ~ 144-Strand Singlemode Fiber Optic Cable [] Indoor Splice Bay O Electric Substation-Based Splice CabinetoOutdoor Splice Cabinet .,,,_._.~"~;_7~:-~:-~--"-"::. :..Aerial or Underground Splice Enclosure (Tentative) :::,. ;.~!. .~,~ Figure 1 - Palo Alto "l~berNet" Backbone Design FORMAL CONTRACT- Utilities Department CONTRACT No. (public work) SECTION 500 This Contract, dated , 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 ’"", a ~re~~, ("Contractor"). "For and in consideration of the covenants, terms, and conditions ("the provisions") of this Contract, City and Contractor ("the parties") agree: ~L~r~. This Contract shall commence’and be binding on the parties on the Date of Execution of this Contract, and shall expire on the date of recordation of the Notice of Substantial Completion, or, if no such notice is required to be filed, on the date that final payment is made hereunder, subject to the earlier termination of this Contract. This Contract may be terminated for convenience by the City upon ten (10) days’ prior written notice. ~. Contractor shall furnish labor, services, materials and equipment in connection with the construction of the Project and complete the Work in accordance with the covenants, terms and conditions of this Contract to the satisfaction of City. The Project and Work is generally described as follows: Title of Project:Proiect: FiberNet Backbone Svstem Installation NO.; 95838 Total Bid;$ 174.507.20 ~. This Contract shall consist of the documents set forth below, which are on file with the City Clerk and are hereby incorporated by reference. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, these documents and the provisions thereof are set forth in the following descending order of precedence. a= g. h. i. k. I. This Contract. Invitation For Bid. Project Specifications. Drawings. Change Orders. Bid. Supplementary Conditions. General Conditions. Standard Drawings and Specifications (1992). Certificate of Insurance, Performance Bond. Affirmative Action Guidelines. Other Specifications, or part thereof; not expressly incorporated in the Contract Specifications or the Standard Drawings and Specifications (1992). Any other document not expressly mentioned herein which is issued by City or entered into by the parties. CITY of PALO ALTO: FiberNet Backbone System Installation (Rev.12/96)SECTION 500-1 of 8 FORMAL CONTRACT- Utilities Department SECTION 500 °4.~LOJ~I;~J3~t~. In consideration of Contractor’s performance of its obligations hereunder, City shall pay to Contractor the amount set forth in Contractor’s Bid in accordance with the provisions of this Contract and upon the receipt of written invoices and all necessary supporting documentation within the time set forth in the Contract Specifications and the Standard Drawings and Specifications (1992), or, if no time is stated, within thirty (30) Days of the date of receipt of Contractor’s invoices. J~l~lr.al3£&. On or before the Date of Execution, Contractor shall obtain and maintain the policies of insurance coverage described in the Notice Inviting Formal Bids on terms and conditions and in amounts as may be required by the Risk Manager. City shall not be obligated to take out insurance on Contractor’s personal property or the personal property of any person performing labor or services or supplying materials or equipment ¯ under the Project. Contractor shall furnish City with the certificates of insurance and with original endorsements affecting coverage required under this Contract on or before the Date of Execution. The certificates and endorsements for each insurance policy shall be signed by a person who is authorized by that insurer to bind coverage in its behalf. Proof of insurance shall be mailed to the Project Manager to the address set forth in Section 15 of this Contract. ~l~,~fj~,~j3. Contractor agrees to protect, defend, indemnify and hold City, its Council members, officers, employees, agents and representatives harmless from and against any and all claims, demands, liabilities, losses, damages, costs, expenses,, liens, penalties, suits, or judgments, arising, in whole or in part, directly or indirectly, at any time from any injury to or death of persons or damage to property as a result of the willful acts or the negligent acts or omissions of Contractor, or which results from Contractor’s noncompliance with any Law respecting the condition, use, occupation or safety of the Project site, or any part thereof, or which arises f~om Contractor’s failure to do anything required under this Contract or for doing anything which Contractor is required not to do under this Contract, or which arises from conduct for which any Law may impose strict liability on Contractor in the performance of or failure to perform the provisions of this Contract, except as may arise from the sole willful acts or negligent acts or omissions of City or any of its Council members, officers, employees, agents or representatives. This indemnification shall extend to any and all claims, demands, or liens made or filed by reason of any work performed by Contractor under this Contract at any time during the term of this Contract, or arising thereafter. To the extent Contractor will use hazardous materials in connection with the execution of its obligations under this Contract, Contractor further expressly agrees to protect, indemnify, hold harmless and defend City, its City Council members, officers and employees from and against any and all claims, demands, liabilities, losses, damages, costs, expenses, liens, penalties, suits, or judgments City may incur, arising, in whole or in part, in connection with or as a result of Contractor’s willful acts or negligent acts or omissions under this Contract, under the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § §9601-6975, as amended); the Resource Conservation and Recovery Act (42 U.S.C. § §6901-6992k, as amended); the Toxic Substances Control Act (15 U.S.C0 §§2601-2692, as amended); the Carpenter-Presley-’[anner Hazardous Substance Account Act (Health & Safety Code, § §25300-25395, as amended); the Hazardous Waste Control Law (Health & Safety Code, § §25100-25250.25, as amended); the Safe Drinking Water and Toxic Enforcement Act (Health & Safety Code, §§25249.5-25249.13, as amended); the Underground Storage of Hazardous Substances Act (Health & Safety Code, § §25280-25299.7, as amended); or under any other local, state or federal law, statute or ordinance, or at common law. o ’ . Contractor agrees to voluntarily assume any and all risk of loss, damage, or injury to the property of Contractor which may. occur in, on, or about the Project site at any time and in any manner, excepting such loss, injury, or damage as may be caused by the sole willful act or negligent act or omission of City or any of its Council members,, officers, employees, agents or representatives. CITY of PALO ALTO: FiberNet Backbone System Installation (Rev.12196)SECTION 500-2 of 8 FORMAL CONTRACT - Utilities Department SECTION 500 "8.~.aJY.~. The acceptance of any payment or performance, or any part thereof, shall not operate as a waiver by City of its rights under this Contract. A waiver by City of any breach of any part or provision of this Contract by Contractor shall nc~t operate as a waiver or continuing waiver of any subsequent breach of the same or any other provision, nor shall any custom or practice which may arise between the parties in the administration of any part or provision of this Contract be construed to waive or to lessen the right of City to insist upon the performance of Contractor in strict compliance with the covenants, terms and conditions of this Contract¯ 10. o Contractor shall comply with all Laws now in force or which may hereafter be in force pertaining to the Project and Work and this Contract, with the requirement of any bond or fire underwriters or ¯ other similar body now or hereafter constituted, with any discretionary license or permit issued pursuant to any Law of any public agency or official as well as with any provision of all recorded documents affecting the Project site, insofar as any are required by reason of the use or occupancy of the Project site, and with all Laws pertaining to nondiscrimination and affirmative action in employment and hazardous materials. j~;~. As a condition precedent to City’s obligation to pay compensation to Contractor, and on or before the Date of Execution, Contractor shall furnish to the Project Manager the Bonds as required under the Notice. Inviting Formal Bids. 11." . In the supply of any materials and equipment and the rendering of labor and services during the course and scope of the Project and Work, Contractor represents and warrants: aQ Any materials and equipment which shall be used during the course and scope of the Project and Work shall be vested in Contractor; bo Any materials and equipment which shall be used during the course and scope of the Project and Work shall be merchantable and fit to be used for the particular purpose for which the materials are required; Any labor and services rendered and materials and equipment used or employed during the course and scope of the Project and Work shall be free of defects in workmanship for a period of one (1) year after the recordation of the Notice of Substantial Completion, or, if no such notice is required to be filed, on the date that final payment is made hereunder; do Any manufacturer’s warranty obtained by Contractor shall be obtained or shall be deemed obtained by Contractor for and in behalf of City. eo Any information submitted by Contractor prior to the award of Contract, or thereafter, upon request, whether or not submitted under a continuing obligation by the terms of the Contract to do so, is true and correct at the .time such information is submitted or made available to the City; Contractor has not colluded, conspired, or agreed, directly or indirectly, with any person in regard to the terms and conditions of Contractor’s Bid, except as may be permitted by the Notice Inviting Formal Bids; Contractor has the power and authority to enter into this Contract with City, that the individual executing this Contract is duly authorized to do so ’by appropriate resolution, and that this Contract shall be executed, delivered and performed pursuant to the power and authority conferred upon the person or persons authorized to bind Contractor; CITY of PALO ALTO: FiberNet Backbone System Installation (Rev.12/96)SECTION 500-3 of 8 FORMAL CONTRACT - Utilities Department SECTION 500 Contractor has not made an attempt to exert undue influence with the Purchasing Manager or Project Manager or any other person who has directly contributed to City’s decision to award the contract to Contractor; There are no unresolved claims or disputes between Contractor and City which would materially affect Contractor’s ability to perform under the Contract; Contractor has furnished and will furnish true and accurate statements, records, reports, resolutions, certifications, and other written information as may be requested of Contractor by City from time to time during the term of thisContract; Contractor and any person performing labor and services under this Project are duly licensed by the State.of California as required by California Business & Professions Code Section 7028, as amended; and Contractor has fully examined and inspected the Project site and has full knowledge of the physical conditions of the Project site. ¸12.~. This Contract and the performance required hereunder is personal to Contractor, and it shall not be assigned by Contractor. Any attempted assignment shall be null and void. 13. 14. ~. All claims pertaining to extra work, additional charges, or delays within the Contract Time or other disputes arising out of the Contract shall be submitted by Contractor to City in writing by certified or registered mail within ten (10) Days after the claim arose or within such other time as may be permitted or required by law, and shall be described in sufficient detail to give adequate notice of the substance of the claim to City. ~g~. During the term of this Contract and for a period of not less than three (3) years after the expiration or earlier termination of this Contract, City shall have the right to audit Contractor’s Project-related and Work-related writings and business records, as such terms are defined in California Evidence Code Sections 250 and 1271, as amended, during the regular business hours of Contractor, or, if Contractor has no such ¯ hours, during the regular business hours of City. 15.~. All agreements, appointments, approvals; authorizations, claims, demands, Change Orders, consents, designations, notices, offers, requests and statements given by either party to the other shall be in writing and shall be sufficiently given and served upon the other party if (1) personally served, .(2) sent by the United States mail, postage prepaid, (3) sent by private express delivery service, or (4) in the case of a facsimile transmission, if sent to the telephone FAX number set forth below during regular business hours of the receiving party and followed within two (2) Days by delivery of a hard copy of the material sent by facsimile transmission, in accordance with (1), (2) or (3) above. Personal service shall include, without limitation, service by delivery and service by facsimile transmission. To City:City of Palo Alto ¯ City Clerk250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 CITY of PALO ALTO: FiberNet Backbone System Installation (Rev.12/96)SECTION 500-4 of 8 FORMAL CONTRACT- Utilities Department Copy to: To Contractor: City of Palo Alto Department of Utilities 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 (415) 329- 2116 " FAX: (415) 329- 2608 . ATTN: Patrick Valath, Project Manager Price Technical Services L.P. 6644 Sierra Lane Dublin, CA 94568 5(3.!_0_) 833-8447 FAX: ~ 833-8448 ATTN:Gary Getchell, Regional VP SECTION 500 16. 17. Appropriation of city Funds. This Contract is subject to the fiscal provisions of Article III, Section 12 of the Charter of the City of Palo Alto. Any charges hereunder for labor, services, materials and equipment may accrue only after such expenditures have been approved in advance in writing in accordance with applicable Laws. This Contract shall terminate without penalty (i) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (~ 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 16 shall control in the event of a conflict with any other provision of ,this Contract. Miscellaneous. Bailee Disclaimer. The parties understand and agree that City does not purport to be Contractor’s bailee, and City is, therefore, not responsible for any damage to the personal property of Contractor. Consent. Whenever in this Contract the approval or consent of a party is required, such approval or consent shall be in writing and shall be executed by a person having the express authority to grant such approval or consent. Controlling Law. The parties agree that this Contract shall be governed and construed by and in accordance with the Laws of the State of California. Definitions. The definitions and terms set forth in Section 1 of the Standard Drawings and Specifications (1992) of this Contract are incorporated herein by reference. eo Force Majeurs. Neither party shall be deemed to be in default on account of any delay or failure to. perform its obligations under this Contract which directly results from an Act of God or an act of a superior governmental authority. CITY of PALO ALTO: FiberNet Backbone System Installation (Rev~12196)SECTION 500-5 of 8 FORMAL CONTRACT- Utilities Departrnent SECTION 500 go Headings. The paragraph headings are not a part of this Contract and shall have no effect upon the construction or interpretation of any part of this Contract. Incorporation of Documents. All documents constituting the Contract documents described in Section 3 hereof and all documents which may, from time to time, be referred to in any duly executed amendment hereto are by such reference incorporated in this Contract and shall be deemed to be part of this Contract. Integration. This Contract and any amendments hereto between the parties constitute the entire agreement between the parties concerning the Project and Work, and there are no other prior oral or written agreements between the parties that are not incorporated in this Contract. Modification of Agreement. This Contract shall not be modified or be binding upon the parties, unless such modification is agreed to in writing and signed by the parties. Provision. Any agreement, covenant, condition, clause, qualification, restriction, reservation, term or other stipulation in the Contract shall define or otherwise control, establish, or limit the performance required or permitted or to be required of or permitted by either party. All provisions, whether covenants or conditions, shall be deemed to be both covenants and conditions. Resolution. Contractor shall submit with. its Bid a copy of any corporate or partnership resolution or other writing, which authorizes any director, officer or other employee or partner to act for or in behalf of Contractor or which authorizes Contractor to enter into this Contract. Severability. If a court of competent jurisdiction finds or rules that any provision of this Contract is void or unenforceable, the provisions of this Contract not so affected shall remain in full force and effect. Status of Contractor. In the exercise of rights and obligations under this Contract, Contractor acts as an independent contractor and not as an agent or employee of City. Contractor shall not be entitled to any rights and benefits accorded or accruing to the City Council members, officers or employees of City, and Contractor expressly waives any and all claims to such rights and benefits. Successors and Assigns. The provisions of this Contract shall inure to the benef’~ of, and shall apply to and bind, the successors and assigns of the parties; Time of the Essence. Time is of the essence of this Contract and each of its provisions. In the calculation of time hereunder, the time in which an act is to be performed shall be computed by excluding the first Day and including the last. If the time in which an act is to be performed falls on a Saturday, Sunday, or any Day observed as a legal holiday by City, the time for performance shall be extended to the following Business Day. go qo Venue. In the event that suit is brought by either party hereunder, the parties agree that tdal of such action shall be vested exclusively in the state courts of California in the County of Santa Clara in the City of San Jose or in the United States District Court for the Northern District of California in the City of San Jose. Recovery of costs. The prevailing party in any action brought to enforce the terms of this Contract or arising out of this Contract may recover its reasonable costs, including reasonable attorney’s fees, incurred or expended in connection with such action against the non-prevailing party.- CITY of PALO ALTO: FiberNet Backbone System Installation (Rev.12/96)SECTION 500-6 of 8 FORIVI"AL CONTRACT,- Utilities Department SECTION 500 "IN WITNESS WHEREOF, the parties have by their duly appointed representatives executed this Contract in the city of Palo Alto, County of Santa Clara, State of California on the date first stated above. ATTEST:CITY OF PALO ALTO By: City Clerk Its: Mayor APPROVED:CONTRACTOR:, " Price Technical Services L.P, City Manager By: Name: Director of Utilities Title: Director of Administrative Services Taxpayer I.D. No. 36-404848~8 Manager, Contract Administration (for: Risk) APPROVED ASTO FORM: Senior Asst. City Attorney CITY of PALO ALTO: FiberNet Backbone System Installation (Rev.12/96)SECTION 500-7 of 8 FORM~,L CONTRACT- Utilities Department SECTION 500 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF ) COUNTY OF ) On , before in and for said County, personally appeared__ me,, a notary public personally known to me (or proved to me on the basis 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 seal. Signature (Seal) END OF SECTION CITY of PALO ALTO: FiberNet Backbone System Installation (Rev.12/96)SECTION 500-8 of 8