HomeMy WebLinkAbout1996-03-11 City Council (18)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:
AGENDA DATE:
SUBJECT:
CITY MANAGER UTILITIES DEPARTMENT
MARCH 11, 1996 CMR:159:96
Approval of Contract with Theodore Barry and Associates for an
Organizational Review of the Utilities Department.
REQUEST
This report requests that Council approve the Utilities Advisory Commission (UAC)
recommendation and authorize the Mayor to execute a contract with Theodore Barry and
Associates (TBA) in the amount of $193,140 to conduct an organizational review of the
Utilities Department.
RECOMMENDATIONS
Staff recommends that Council:
1. Approve a Budget Amendment Ordinance (Attachment 1) in the amount of
$112,540 from the Electric $53,602, Water $19,964, Gas $27,451 and Wastewater
$11,523 Rate Stabilization Reserves for funding the organizational review.
Approve and authorize the Mayor to execute the attached contract with exhibits,
(Attachment 2) with Theodore Barry and Associates in the amount of $193,140 to
conduct an organizational review of the Utilities Department.
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
$19,400.
POLICY IMPLICATIONS
This contract does not represent any change to existing policies.
CMR:159:95 Page I of 4
EXECUTIVE SUMMARY
Project Description
The priorities of the Utilities Department are changing because of the changes in the
utilities industry; particularly in the gas and, more recently, in the electric utilities.
Competition for Palo Alto’s utility customers is an issue of the future. Exceeding customer
expectations and maintaining customer loyalty are paramount in keeping the Utilities’
customer base. This is an opportune time to conduct an organizational review of the
Department to ascertain if any changes are appropriate. The goal is to ensure that the
Utilities are prepared organizationally for the future competition in the industry and have
the ability to meet the customers’ service expectations efficiently while remaining
competitive. Additionally it is important to periodically review departmental structure to
ensure that the. most efficient and effective structure is in place.
In December 1994, the City Council approved the City .Manager’s recommendation to
perform an organizational review of the Utilities Department. On February 13 1995, the
Council assigned the administration of the Utilities Organizational Review to the Utilities ¯
Advisory Commission (UAC) with support from the City Manager’s Office. The Council also
directed the UAC to create a "Blue Ribbon" Task Force (Task Force) to review and
comment on the Request for Proposals (RFP) and aid in the selection of the consultant
to perform the study. The UAC selected the Task Force at the May 3, 1995 meeting. Over
the next several months the UAC, the Task Force, and the City Council edited and
reviewed the draft Scope of Services of the RFP.
Invitation for Proposals
Council approved the Scope of Services for the Organizational Review at the October 16,
1995 meeting. A request for proposals (RFP) for the Organizational Review was sent out
to 30 consultants on November 1, 1995. Proposals were received on November 28, 1995
from eight consultants, ranging from $149,800 to $259,580. One consultant sent a letter
to the project manager stating that his company was unable to bid at this time. At the
request of the UAC, the eight proposals submitted were initially evaluated by a staff
screening committee with the purpose of developing a "short list". The screening
committee included, the City Auditor, the Director of Public Works, the Director of Human
Resources, the Contracts Administrator, a Senior Accountant, the Assistant Director of
Engineering and Operations, the Assistant Director of Resource Management, the
Manager of Rates, and the Utilities Administrator. The committee met on November 20,
1995 to screen the proposals based on the criteria established in the RFP: the Executive
Summary, understanding of the review, the approach, the project schedule, cost, related
experience, and references. The recommended short list was presented to the UAC at the
December 1995 meeting. Members of the UAC and the Task Force also received copies
of all the proposals. At that meeting the UAC and the Task Force chose four firms to
interview. Interviews were scheduled for January 10, and 11, 1996 with the four
CMR:159:95 Page 2 of 4
consultants, R. W. Beck, Price Waterhouse/CH2MHill, Kiynveld Peat Marwick Goerdeler
(KMPG)/Barakat and Chamberlin, and Theodore Barry and Associates(TBA)/Resource
Management International (RMI).
After the interviews and under the guidance of the UAC and the Task Force, staff was
instructed to conduct a reference check on three consultants with the questions provided
by the UAC and the Task Force. The resulting information and a voting sheet were
distributed to all the Commissioners and members of the Task Force. The criteria used
were the same as those used in the RFP: qualifications and experience of the firm, quality
of the proposal, value of the work per cost, and soundness of the methodology. The votes
were tallied as seen on the attached bid evaluation summary (Attachment 3), with a point
score for each of the cdteria and a value assigned to each criterion. The combined scores
ranged from 45.62 for Price Waterhouse/CH2MHILL to a high of 62.65 for Theodore Barry
and Associates (TBA)/Resource Management International (RMI). R.W. Beck was second
with a score of 56.86.
The UAC and the Task Force met on February 7, 1996 and chose the firm of TBA for the
organizational review with Resource Management International (RMI) a subcontractor for
TBA on the project. The firm of R. W. Beck was selected as the backup consultant. The
UAC requested staff to begin the contract negotiations. The Organizational Review will
begin in April 1996, after approval of this contract by City Council.
Project Schedule
The consultant plans to begin work within two weeks after the contract is signed and
complete the project in four months. The UAC Commissioners at the February 7, 1996
meeting stated they believe the project may take longer, due to the interaction of the
consultant with the Commission and the timing of Commission meetings. However,
according to the consultant, the work will take 1,140 hours and the work plan designates
the following timeline:
Step One ( weeks one through five)
Initiation period
High level diagnostics
Data requests
Step Two (weeks four through twelve)
Detailed Analysis
G as/Wate r/Wastewate r
Competitive Evolution
Step Three (weeks twelve through sixteen)
Final Report and Implementation Plan
CMR:159:95 Page 3 of 4
FISCAL IMPACT
The $100,000 included in the adopted FY 1995-96 operating budget for this project is not
sufficient. All of the eight proposals received exceeded this amount, with proposals
rang ing from $149,800 to $259,580. TBA proposed $193,140 for the project. The attached
BAO (Attachment 1) requests that additional $112,540 be added to the Utilities
Administration budget to cover the costs of the contract and the contingency for the
organizational review of the Utilities Department.
ENVIRONMENTAL ASSESSMENT
This award of contract does not constitute a project for California Environmental Quality
Act purposes and, therefore, no Environmental Assessment is required.
ATTACHMENTS
Attachment 1.
Attachment 2.
Attachment 3.
Budget Amendment Ordinance
Contract with Exhibits
Bid Evaluation Summary
PREPARED BY: Rosemary Ralston, Utilities Administrator
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
FLEMING
Manager
CMR:159:95 Page 4 of 4
A TTA CHMENT ~
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1995-96 TO
PROVIDE AN ADDITIONAL APPROPRIATION TO CONDUCT AN
ORGANIZATIONAL REVIEW OF THE UTILITIES DEPARTMENT
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June
19, 1995 did adopt a budget for fiscal year 1995-96; and
WHEREAS, on June 19, 1995 Council approved $!00,000 in funding
to conduct an organizational review of the Utilities Department; and
WHEREAS, an organizational review will ensure the Utilities
Department’s ability to efficiently and effectively meet customer
service expectations in an increasingly competitive industry; and
WHEREAS, the Utilities Advisory Commission and the ~Blue
Ribbon" Task Force chose a firm on February 7, 1996 to conduct the
organizational review; and
WHEREAS, additional funding of $112,540 is requested
to execute the contract with the chosen firm, Theodore Barry and
Associates, and to cover potential change orders.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION i. The sum of One Hundred Twelve Thousand Five Hundred
and Forty Dollars(S112,540) is hereby transferred from the reserve
funds hereinafter described, to the appropriation for Utilities
Administration for additional expenses for the Utilities Department
Organizational Review. The amounts so transferred are from the
following reserve funds, which will be reduced by the amount listed:
Electric Rate Stabilization Reserve
Water Rate Stabilization Reserve
Gas Rate Stabilization Reserve
WastewaterCollection Rate Stabilization
Reserve
$53,602
19,964
27,451
11,523
SECTION 2. Non-salary expense and allocated revenues in
Utilities Administration wil! be increased by $112,540.
SECTION 3. The appropriation transfers approved by Section 1
will reduce the following Rate Stabilization Reserve (RSR) :
From:To:
Electric RSR
Water RSR
Gas RSR
Wastewater Collection RSR
$25,058,000
6,571,000
11,060,000
7,569,000
$25,004,398
6,551,036
11,032,549
7,557,477
SECTION 4. As specified in Section 2.28.080(a) of the Palo
Alto Municipal Code, a two-thirds vote of the City Council
required to adopt this ordinance.
is
SECTION 5. This project has been determined to be categorically
exempt under Section 15302 of the California Environmental Quality
Act.
SECTION 6. 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:
Senior Asst. City Attorney
City Clerk
APPROVED AS TO FORM:
APPROVED:
Mayor
City Manager
Deputy City Manager
Director of Utilities
A TTA CHMENT 2
CONTRACT NO.
BETWEEN THE CITY OF PALO ALTO AND
THEODORE BARRY AND ASSOCIATES
FOR CONSULTING 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
THEODORE BARRY AND ASSOCIATES, a California corporation, !ocated at
515 South Figueroa Street, #1500, Los Angeles, CA 90071
("CONSULTANT").
RECITALS:
WHEREAS, CITY desires certain professional consulting
services ("Services") and the preparation and delivery of, without
limitation, one or more sets of documents, drawings, reports, data,
calculations, surveys, schedules or other writings ("Deliverables")
(Services and De!iverables are, collectively, the "Project"), as
more fully described in Exhibit "A"; and
WHEREAS, CITY desires to engage CONSULTANT, including its
emp!oyees, if any, in providing the Services by reason of its
qualifications and experience in performing the Services, and
CONSULTANT has offered to complete the Project 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 !. TERM
!.I This Contract will commence on the date of its
execution by CITY, and will terminate upon the completion of the
Project, unless this Contract is earlier terminated by CITY. Upon
the receipt of CITY’s notice to proceed, CONSULTANT wil! commence
work on the initial and subsequent Project tasks in accordance with
the time schedule set forth in Exhibit "A". Time is of the essence
of this Contract. In the event that the Project is not completed
within the time required through any fault of CONSULTANT, 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 CONSULTANT.
SECTION 2.SCOPE OF PROJECT;CHANGES & CORRECTIONS
2.1 The scope of Services andDeliverables constituting
the Project will be performed, delivered or executed by CONSULTANT
under the phases of the Basic Services as described below.
1
960227 syn 0070921
2.2 CITY may order substantial changes in the scope or
character of the Basic Services, the Deliverables, or the Project,
either decreasing or increasing the amount of work required of
CONSULTANT. In the event that such changes are ordered, subject to
the approval of CITY’s City Counci!, as may be required, CONSULTANT
will be entitled to full compensation for all work performed prior
to CONSULTANT’s receipt of the notice of change and further will be
entitled to an extension of the time schedule. Any increase in
compensation for substantia! changes will be determined in
accordance with the provisions of this Contract. CITY wil! not be
liable for the cost or payment of any change in work, unless the
amount of additional compensation attributable to the change in
work is agreed to, in writing, by CITY before CONSULTANT commences
the performance of any such change in work.
2.3 Any and all errors, omissions, or ambiguities in the
De!iverables, which are discovered by CITY after the contract is
awarded by CITY, wil! be performed by CONSULTANT, as fol!ows: (a)
at no cost to CITY insofar as those Services, including the Basic
Services or the Additional Services, as described below, or both,
will result in minor or nonbeneficial changes in the work required
of the CONSULTANT; or (b) at CITY’s cost insofar as those Services,
including the Basic Services or the Additiona! Services, or both,
will add a direct and substantial benefit to the work required of
the CONSULTANT. The project manager in the reasonable exercise of
his or her discretion will determine whether the Basic Services or
the Additional Services, or both, will contribute minor or
substantial benefit to the work.
SECTION 3. QUALIFICATIONS, STATUS, AND DUTIES OF
CONSULTANT
3.1 CONSULTANT represents andwarrants that it has the
expertise and professional qualifications to furnish or cause to be
furnished the Services and De!iverables. CONSULTANT further
represents and warrants that the project director and every
individual, including any consultant (including CONSULTANTS),
charged with the performance of the Services 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, and
that the Project will be executed by them or under their
supervision. CONSULTANT will furnish to CITY for approval, prior
to execution of this Contract, a list of all individuals and the
names of their employers or principals to be employed as
consultants.
3.2 In reliance on the representations and warranties
set forth in this Contract, CITY hires CONSULTANT to execute, and
CONSULTANT covenants and agrees that it will execute or cause to be
executed, the Project.
3.3 CONSULTANT will assign THOMAS RESH as the engagement
manager to have supervisory responsibility for the performance,
progress, and execution of the Project. THOMAS RESH will be
assigned as the project coordinator who will represent CONSULTANT
960227 syn 0070921
during the day-to-day work on the Project. If circumstances
conditions subsequent to the execution of this Contract cause the
substitution of the engagement manager or project coordinator for
any reason, the appointment of a substitute engagement manager or
substitute project coordinator wil! be subject to the prior written
approval of the project manager°
3.4 CONSULTANT represents and warrants that it will:
3.4.1 Procure all permits~ and licenses, pay all
charges and fees, and give all notices which may be necessary and
incident to the due and lawful prosecution of the Project;
3.4.2 Keep itself fully informed of all existing and
future Federal, State of California, and loca! laws, ordinances,
regulations, orders, and decrees which may affect those engaged or
employed under this Contract and any materials used in CONSULTANT’s
performance of the Services;
3.4.3 At all times observe and comply with, and cause
its employees 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
3.4.4 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 the Deliverables.
3.5 Any Deliverables given to, or prepared or assembled
by, CONSULTANT or its consultants, if any, under this Contract will
become the proper~y of CITY and will not be made available to any
individual or organization by CONSULTANT or its consultants, if
any, without the prior written approval of the city manager.
3.6 CONSULTANT will provide CITY with ten (I0) copies of
the draft and thirty-five (35) copies of the final report,
including executive summary, findings, recommendations and
implementation plan.
3.7 If CITY requests additional copies of any documents
which are a part of the Deliverables, CONSULTANT will provide such
additional copies and CITY will compensate CONSULT~2~T for its
duplicating costs.
3.8 CONSULTANT will be responsible for employing or
engaging all persons necessary to execute the Project. All
consultants of CONSULTANT will be deemed to be directly controlled
and supervised by CONSULTANT, which will be responsible for their
performance. If any employee or consultant of CONSULTANT fails or
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 consultant will be discharged immediately from further
performance under this Contract on demand of the project manager.
3960227 syn 0070921
3.9 In the execution of the Project, CONSU~TANT and its
consultants, if any, wil! at all times be considered independent
contractors and not agents or employees of CITY.
3.10 CONSULTANT will perform or obtain or cause to be
performed or obtained any and all of the following Additional
Services, not included under the Basic Services, if so authorized,
in writing, by CITY:
3.10.1 Providing services as an expert witness in
connection with any public hearing or meeting, arbitration
proceeding,or proceeding of a court of record;
3.10.2 Incurring travel and subsistence expenses for
CONSULTANT and its staff beyond those normally required under the
Basic Services;
3.10.3 Performing any other Additional .Services that
may be agreed upon by the parties’subsequent to the execution of
this Contract; and
3.10.4 Other Additional Services now or hereafter
described in an exhibit, to this Contract.
3.11 CONSULTANT will be responsible for employing all
consultants deemed necessary to assist CONSULTANT in the
performance of the Services. The appointment of consultants must
be approved, in advance, by CITY, in writing, and must remain
acceptable to CITY during the term of this Contract.
SECTION 4. DUTIES OF CITY
4.1 CITY will furnish or cause to be furnished the
services listed in Exhibit "A" and such information regarding its
requirements applicable to the Project as may be reasonably
requested by CONSULTANT.
4.2 CITY will review and approve, as necessary, in a
timely manner the Deliverables and each phase of work performed by
CONSULTANT. CITY’s estimated time of review and approval will be
furnLshed to ~CONSULTANT at the time of submission of each phase of
work. CONSULTANT acknowledges and understands that the
interrelated exchange of information among CITY’s City Council,
Utilities Advisory Commission and various departments makes it
extremely difficult for CITY to firmly establish the time of each
review and approval task. CITY’s failure to review and approve
within the estimated time schedule will not constitute a default
under this Contract.
4.3 The city manager will represent CITY for all
purposes under this Contract. EDWARD J. MRIZEK, Director of
Utilities, designated as the project manager for the city manager.
The project manager wil! supervise the performance, progress, and
execution of the Project, and will be assisted by ROSEMARY RALSTON,
the Utilities Administrator.
960227 syn 0070921
4.4 If CITY observes or otherwise becomes aware of any
default in the performance of CONSULTANT, CITY will use reasonable
efforts to give written notice thereof to CONSULTANT in a timely
manner.
SECTION 5.COMPENSATION
5.1 CITY will compensate CONSULTANT for the following
services and work:
5.1.1 In consideration of the full performance of the
Basic Services, including any authorized reimbursable expenses,
CITY will pay CONSULTANT a fee not to exceed one hundred ninety-
three thousand one hundred forty dollars ($193,140). The amount of
compensation will be calculated in accordance with the hourly rate
schedule set forth in Exhibit "B", on a time and materials basis,
up to the maximum amount set forth in this Section. The fees of
the consultants, who have direct contractual relationships with
CONSULTANT, will be approved, in advance, by CITY. CITY reserves
the right to refhse payment of such fees, if such prior approval is
not obtained by CONSULTANT.
5.1.2 In consideration of the full performance of
Additional Services, the amount of compensation set forth in
Exhibit "B" will not exceed nineteen thousand three hundred dollars
($19,300). An employee’s time will be computed at a multiple of
one (i) time the employee’s direct personnel expense described
below. The rate schedules may be updated by CONSULTANT only once
each calendar year, and the rate schedules will not become
effective for purposes of this Contract, unless and until
CONSULTANT gives CITY thirty (30) days’ prior written notice of the
effective date of any revised rate schedule.
5.1.3 The full payment of charges for extra work or
changes, or both, in the execution of the Project will be made,
provided such request for payment is initiated by CONSULTANT and
authorized, in writing, by the project manager. Payment wil! be
made within thirty (30) days of submission by CONSULTANT of a
statement, in triplicate, of itemized costs covering such work or
changes, or both. Prior to commencing such extra work or changes,
or both, the parties will agree upon an estimated maximum cost for
such extra work or changes. CONSULTANT will not be paid for extra
work or changes, including, without limitation, any work or change
order preparation, which is made necessary on account of
CONSULTANT’s errors, omissions, or oversights.
5.1.4 Direct personnel expense of employees assigned
to the execution of the Project by CONSULTANT will include only the
work of the members of the project team and administrative staff,
in consultation, research and design, work ~in producing
Deliverables and other documents pertaining to the Project, and in
services rendered during work at the site, to the extent such
services are expressly contemplated under this Contract. Included
in the cost of direct personnel expense of these employees are
salaries and mandatory and customary benefits such as statutory
5960227 syn 0070921
employee benefits, insurance, sick leave, holidays and vacations,
pensions and similar benefits, airfare, meals, lodging, and
administrative costs.
5.2 The schedule of payments will be made as follows:
5.2.1 Payment of the Basic Services will be made in
monthly progress payments in proportion to the quantum of services
performed, or in accordance with any other schedule of payment
mutually agreed upon by the parties, as set forth in Exhibit
or within thirty (30) days of submission, in triplicate, of such
requests if a schedule of payment is not specified. Final payment
will be made by CITY after CONSULTANT has submitted all
Deliverables, including, without limitation, reports which have
been approved by the project manager.
5.2.2 Payment of the Additional Services will be
made in monthly progress payments for services rendered, within
thirty (30) days of submission, in triplicate, of such requests.
5.2.3 No deductions will be made from CONSULTANT’s
compensation on account of penalties, liquidated damages, or other
sums withheld by CITY from payments to general CONSULTANTS.
SECTION 6. ACCOUNTING, AUDITS, OWNERSHIP OF RECORDS
6.1 Records of the direct personnel expenses and
expenses incurred in connection with the performance of Basic
Services and Additional Services pertaining to the Project will be
prepared, maintained, and retained by CONSULTANT in accordance with
generally accepted accounting principles and will be made available
to CITY for auditing purposes at mutually convenient times during
the term of this Contract and for three (3) years fol!owing the
expiration or earlier termination of this Contract.
6.2 The originals of the Deliverables prepared by or
under the direction of CONSULTANT in the performance of this
Contract will become the property of CITY irrespective of whether
the Project is completed upon CITY’s payment of the amounts
required to be paid to CONSULTANT. These originals will be
delivered to CITY without additiona! compensation. CITY will have
the right to utilize any final and incomplete surveys, reports,
plans, and any other documents prepared hereunder by CONSULTANT,
but CONSULTANT disclaims any responsibility or liability for any
alterations or modifications of such documents.
SECTION 7. INDEMNITY
7.1 CONSULTANT 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 CONSULTANT’s,~ its
officers’, agents’, consultants’ or employees’ negligent acts,
errors, or omissions, or willful misconduct, or conduct for which
960227 syn 0~70921
6
applicable law may impose strict liability on CONSULTANT in the
performance of or failure to perform its obligations under this
Contract.
SECTION 8. WAIVERS
8.1 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 such covenant, term, condition,
provision, ordinance, or law or of any subsequent breach or
violation of the same or of any other covenant, term, 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 covenant, term, condition or provision of
this Contract or of any applicable law or ordinance.
8.2 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 9. INSURANCE
9.1 CONSULTANT, at its sole cost and expense, will
obtain and maintain, in full force and effect during the term of
this Contract, the insurance coverage described in Exhibit "C",
insuring not only CONSULTANT and its consultants, if any, but also,
with the exception of workers’ compensation, employer’s liability
and professional liability insurance, naming CITY as an additional
insured concerning CONSULTANT’s performance under this Contract.
9.2 All insurance coverage required hereunder will be
provided through carriers with Best’s Key Ratin~ Guide ratings of
A:X or higher which are admitted to transact insurance business in
the State of California. Any and all consultants of CONSULTANT
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.
9.2 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
the 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 liability, 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.
960227 syn 0070~r21
7
9.4 The procuring of such required policy or policies
of insurance will not be construed to limit CONSULTANT’s liability
hereunder nor to fulfill the indemnification provisions of this
Contract. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and tota! 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.
SECTION I0. WORKERS’ COMPENSATION
i0.i CONSULTANT, 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 Project.
PROJECT
SECTION ii TERMINATION OR SUSPENSION OF CONTRACT OR
ii.! The city manager may suspend the execution of the
Project, in whole or in part, or terminate this Contract, with or
without cause, by giving thirty (30) days’ prior written notice
thereof to CONSULTANT, or immediately after submission to CITY by
CONSULTANT of any completed item of Basic Services. Upon receipt
of such notice, CONSULTANT wil! immediately discontinue its
performance under this Contract.
11.2 CONSULTANT may terminate this Contract or suspend
its execution of the Project 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 Basic Services or the execution of the Project.
11.3 Upon such suspension or termination by CITY,
CONSULTANT will be compensated for the Basic Services and
Additional Services performed and Deliverables received and
approved prior to receipt of written notice from CITY of such
suspension or abandonment, together with authorized additional and
reimbursable expenses then due. If the Project is resumed after
being suspended, for more than 180 days, any change in CONSULTANT’s
compensation wil! be subject to renegotiation and, if necessary,
approval of CITY’s City Council. If this Contract is suspended or
terminated on account of a default by CONSULTANT, CITY will be
obligated to compensate CONSULTANT only for that portion of
CONSULTANT’s services which are of direct and immediate benefit to
CITY, as such determination may be made by the city manager in the
reasonable exercise of her discretion.
960227 syn 0070921
8
11.4 In the event of termination of this Contract
suspension of work on the Project by CITY where CONSULTANT is not
in default, CONSULTANT will receive compensation as follows:
11.4.1 For approved items of sez-vices, CONSULTANT wi!I
be compensated for each item of service fully performed in the
amounts authorized under this Contract.
11.4.2 For approved items of services on which a
notice to proceed is issued by CITY, but which are not fully
performed, CONSULTANT will be compensated for each item of service
in an amount which bears the same ratio to the total fee otherwise
payable for the performance of the service as the quantum of
service actually rendered bears to the services necessary for the
full performance of that item of service.
11.4.3 The total compensation payable under the
preceding paragraphs of this Section will not exceed the payment
specified under Section 5 for the respective items of service to be
furnished by CONSULTANT.
11.5 Upon such suspension or termination, CONSULTANT
will deliver to the city manager immediately any and all copies of
the Deliverables, whether or not completed, prepared by CONSULTANT
or its consultants, if any, or given to CONSULTANT or its
consultants, if any, in connection with this Contract. Such
materials wil! become the property of CITY.
11.6 The failure of CITY to agree with CONSULTANT’s
independent findings, conclusions, or reco~mmendations, 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 CONSULTANT to fulfill its obligations under this Contract.
SECTION 12. ASSIGNMENT
12.1 This Contract is for the personal services of
CONSULTANT, therefore, CONSULTANT 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 CITY 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 13.NOTICES
13.1 All notices hereunder will be given, in writing,
and mailed, postage prepaid, by certified mail, addressed as
follows:
960227 syn 0070921
To CITY:Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
To CONSULTANT: Attention of the project director
at the address of CONSULTANT recited above
SECTION 14. CONFLICT OF INTEREST
14.1 In accepting this Contract, CONSULTANT covenants
that it presently has no interest, and will not acquire any
interest, director indirect, financial or otherwise, which would
conflict in any manner or degree with the performance of the
Services.
14.2 CONSULTANT further covenants that, in the
performance of this Contract, it will not employ contractors or
persons having such an interest mentioned above. CONSULTANT
certifies that no one 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 Palo Alto Municipal Code and the Government Code
of the State of California.
SECTION 15.NONDISCRIMINATION
15.1 As set forth in the Pa!o Alto Municipal Code, no
discrimination will be made in the emp!oyment of persons under this
Contract because of the age, race, color, national origin,
ancestry, religion, disability, sexual preference or gender of such
person. If the value of this Contract is, or may be, five thousand
dollars ($5,000) or more, CONSULTANT agrees to meet al!
requirements of the Palo Alto Municipa! Code pertaining to
nondiscrimination in employment, including completing the requisite
form furnished by CITY and set forth in Exhibit "D"
15.2 CONSULTANT agrees that each contract for services
from independent providers will contain a provision substantially
as follows:
"[Name of Provider] will provide CONSULTANT
with a certificate stating that [Name of
Provider] is currently in compliance with all
Federal and State of California laws covering
nondiscrimination in employment; that [Name of
Provider] will pursue an affirmative course of
action as required by the Affirmative Action
Guidelines of the City of Pa!o Alto; 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."
960227 syn 0070921
10
15.3 If CONSULTANT 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
discrimination, as damages for breach of contract, or both. 0nly
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.
15.4 If CONSULTANT is found in default of the
nondiscrimination provisions of this Contract or the applicable
Affirmative Action Guidelines pertaining to this Contract,
CONSULTANT will be found in material breach of this Contract.
Thereupon, CITY will have the power to cance! or suspend this
Contract, in whole or in part, or to deduct from the amount payable
to CONSULTANT the sum of two hundred fifty dollars ($250) for each
calendar day during which CONSULTANT is not in compliance with this
provision as damages for breach of contract, or both.
SECTION 16.MISCELLANEOUS PROVISIONS
16.1 CONSULTANT represents and warrants that it has
knowledge of the requirements of the federa! 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. CONSULTANT will
comply with or ensure by its advice that compliance with such
provisions will be effected pursuant to the terms of this Contract.
16.2 Upon the agreement of the parties, any controversy
or claim arising out of or relating to this Contract may be settled
by arbitration in accordance with the Rules of the American
Arbitration Association, and judgment upon the award rendered by
the Arbitrators may be entered in any court having jurisdiction
thereof.
16.3 This Contract will be governed by the laws of the
State of California, excluding its conflicts of law.
16.4 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.
16.5 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 and attorneys’ fees expended in
connection with that action.
ii960227 syn 0070921
16.6 This document represents the entire and integrated
Contract between the parties and supersedes al! pribr negotiations,
representations, and contracts, either written or oral. This
document may be amended only by a written instrument, which is
signed by the parties.
16.7 All provisions of this Contract, whether covenants
or conditions, will be deemed to be both covenants and conditions.
16.8 The covenants, terms, conditions and provisions of -
this Contract will apply to, and wil! bind, the heirs, successors,
executors, administrators, assignees, and consultants, as the case
may be, of the parties.
16.9 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 ful! force and effect.
16.10 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.
16.11 This Contract may be executed in any number of
counterparts, each of which will be an original, but al! of which
together will constitute one and the same instrument.
16.12 This Contract is subject to the fiscal provisions
of the Charter of the City of Palo Alto and the Palo Alto Municipal
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 fol!owing 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 16.12 wil! 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
960227 syn 0070921
12
APPROVED:
Assistant City Manager
Director of Utilities
THEODO~AND ~SOCIATES
Its : Managing Director
Taxpayer’s I.D. No.95-23928!4
Deputy City Manager,
Administrative Services
Risk Manager
Attachments:
EXHIBIT "A" :
EXHIBIT "B" :
EXHIBIT "C" :
EXHIBIT "D" :
SCOPE OF PROJECT &TIME SCHEDULE
RATE SCHEDULE
INSURANCE
NONDISCRIMINATION COMPLIANCE FORM
960227 syn 0070921 13
CERTIFICATE OF ACKNOWLEDGM]~NT
(Civil Code § 1189)
STATE OF
COUNTY OF
)
)
)
On Y~£~ ~ /g~b before me, the undersigned, a
notary public in ~nd ’for said’ County, personally appeared
.... perse~alTy ~ne~.~ re--me (or proved to me on the basis of
satisfactory evidence) to be the person~) whose name(>T is/a~
subscribed to the within instrument, and acknowledged to me that
he/s~/tbe’y executed~ the same in his/he~r/th~fr authorized
capacity(~e~), and that by his/h~/tbe~r signature~s~ on the
instrument the person~, or the entity upon behalf of which the
person(i acted, executed the instrument.
WITNESS my hand and official seal.
14
960227 syn 0070921
EXHIBITA
PART II - SCOPE of WORK or SERVICES Cit~’ of Palo Alto
REQUEST FOR PROPOSAL (RFP)
TO
PERFORM AN
ORGANIZATIONAL REVIEW
OF THE
CITY OF PALO ALTO
UTILITIES DEPARTMENT
!.GENERAL
The City of Palo Alto, California (City) Council is seeking the services of a qualified
consultant to conduct an Organizational Review of the City’s Utilities Department
(Utilities). Utilities manages and operates the Electric, Gas, Water and Wastewater
Collection services. The primary objective of this review is to review how the
department is organized, determine if the Utilities is performing at a high level of
efficiency and effectiveness in providing responsive and reliable service expected
by the customers (electric, gas, water, wastewater collection). This determination
will address the current service levels being provided and whether they are being
achieved at the lowest possible cost appropriately balanced between operational
requirements, financial responsibilities and environmental considerations. The
review will also include an evaluation of how the Utilities is preparing for future
competition in the electric industry and if the Utilities has the ability to meet
customer’s service expectations efficiently while remaining competitive. A more
detailed discussion of the focus of the review is provided under Section IV, SCOPE
OF SERVICES of PART II of the RFP.
PART II - SCOPE of WORK or SERVICES City of Palo Alto
This RFP is intended to be used to select a firm to perform an Organizational
Review. The work will encompass the preparation of a report that addresses the
areas listed in the Scope of Work.
The City of Palo Alto is located approximately 35 miles south of San Francisco and
15 miles northwest of San Jose. The City is adjacent to the San Francisco Bay to
the east, extends laterally across the San Francisco Peninsula, and extends into
the foothills of the Coastal Range Mountains to the west. The City covers an area
of approximately 26 square miles and has a population of approximately 57,000.
The high technological industry for the San Francisco Peninsula is centered in the
City of Palo Alto, partly because of its proximity to Stanford University. The 650-
acre Stanford Research Park, which is provided utilities service by the City
includes headquarters for Hewlett Packard, and Varian Associates. The City is a
major employment center with approximately 68,000 jobs. Palo Al~o residents
place a high priority on the quality of City services and in protecting the character
of residential neighborhoods.
.CITY ORGANIZATION
The City of Palo Alto was incorporated in 1894, and operates uncer a charter
granted by the State of California in 1909. The City operates unCer the Council-
manager form of government with nine council members elected ~-. large for four-
year terms. The Mayor and Vice-Mayor are selected from among -..-.e council
members annually. The City Manager is responsible for all munici~,~’, functions
except the offices of the City Attorney, City Auditor and City Clerk. These officials
are appointed by and report directly to the City Council.
A five person Utilities Advisory Committee is appointed by the CiTz Council to
review and make recommendations to the Council on long range L~lity Planning
issues.
Approximately 205 employees work in Utilities.
2
PART II - SCOPE of WORK or SERVICES City of PaloAIto
~BUDGET AND FINANCIAL INFORMATION
The FY1995-96 budget for Utilities reflects total revenues of $109,354,000 with
$21,143,000 dedicated to capital improvement projects, .$35,801,000 dedicated
to electric purchases, $10,304,000 dedicated to natural gas purchases and
$4,606,000 dedicated to water purchases. Based on the current policy and rate of
return levels adopted by the Council, the Electric, Gas and Water budgets include
a transfer to the General Fund totaling $10,791,000. The budget shows the
following Enterprise Fund breakdown:
Electric
Water
Gas
Wastewater (Collection)
$71,156,000
13,331,000
19,984,000
10.674.000
Total budget $! !5.145.000
II.PROJECT TEAM/MEETINGS
"PROJECT TEAM
The Utilities Advisory Committee (UAC) with the support of the C~ Manager has
been assigned as the administrator of this Review. Work specifiec ’~nder this
request for proposal shall begin on or about February 5, 1996, aff.er the notice to
proceed has been issued and will be completed by October, 199~ ~ which time
the final report and UAC recommendations are reviewed by the C.- Council.
This project is supported by a five member UAC appointed Selec;cr, Committee
(Task Force) comprised of one member of the UAC and two commercial and two
residential utilities customers. The Task Force serves as an Intervew/Selection
Committee and will make recommendations to the UAC. The UAC z/ill make a final
recommendation on the Consultant selection to the City Council. ~3on approval of
a contract by the City Council, the consultant will work directly v,t.-.~-, the UAC.
The UAC and the Task Force are an integral part of the selection :rocess. As
such, consultants interested in submitting a proposal are asked no.’. :o contact
members of the UAC and Task Force.
PART II - SCOPE of WORK or SERVICES City of Palo Alto
The Task Force will .interview the most qualified respondents at the City’s offices
at a date and time to be determined later.
The selected consultant shall meet with the UAC during the Orientation Phase and
with the UAC and the City Council for their input on the Work Plan during the
Review Criteria Phase. The consultant may also meet with the UAC periodically to
discuss progress and issues identified to date. Upon completion of the project, the
final report will be presented to the UAC and the City Council. The selected
consultant will prepare an oral presentation of findings and recommendations to
the UAC and the City Council.
The following will be the minimum number of meetings to be scheculed by the
Consultant.
~Orientation session with the UAC.
*Presentation of Organizational Review criteria with the UAC.
~Presentation of Organizational Review criteria with the City Council.
Review of Draft Report with the UAC.
Review and Presentation of Final Report with the UAC.
Review and Presentation of Final Report with the City Counc:.:..
III.DELIVERABLES
The consultant is responsible for the following deliverables in kee.~:-.g with the
schedule described in Section iV below:
1. Monthly written progress report to the UAC (available for the U~C packet the
Friday before the first Wednesday of each month) including:
*A summary of work completed during the previous month.
* Discussion of any significant problems encountered or issues ~rising from
the project.
*Percentage of project completed.
4
PART II - SCOPE of WORK or SERVICES
2. Periodic meetings as required by the UAC.
City of Palo Alto
3. Ten (10) copies of the draft report including Executive Summary, findings,
recommendations and implementation plan.
4. Thirty five (35) copies of the final report including Executive Summary, findings,
recommendations and implementation plan.
5. Oral presentation of findings and recommendations to the UAC and the City
Council. Additional meetings/presentations with employee groups may be required.
IV. TARGET SCHEDULE
The following are key dates for the Utilities Organizational Review for the City of
Palo Alto:
City issues RFP: November, 1995
Consultant selection: November, 1995 - January, 1996
Award of Contract: February, 1996
Organizational Review: February - October, 1996
Project Progress Reports: Monthly
Meetings: Upon Request
Work Plan to UAC: Three weeks from project initiation date.
Work Plan to Council: Three weeks after UAC review.
Draft Report to UAC for comments: 18-20 weeks from project initiation date.
Final Report to UAC: 24-28 weeks from project initiation date.
Final Report and UAC recommendations to Council: 32 weeks from project
initiation date.
PART II - SCOPE of WORK or SERVICES
V. GENERAL COMMENTS
City of Palo Alto
Although the objectives and scope of this review may include many aspects of
traditional organizational reviews, the City is seeking a consultant that will involve
City management and employees in developing new and innovative approaches to
improving operations and providing Utility services. Based on the results of the
review, the consultant should provide realistic recommendations. Benefits from
implementing the recommendations, including improved service levels or cost
savings, should be described. Additionally, the consultant will wor~< with City staff
in developing a plan for implementing these recommendations. "This plan should
address the timing and personnel for implementation as well as ~he related cost
and service impacts.
To control consultant’s fees, every effort should be made to utilize available
information, including in-house data, reports, and documents. The consultant’s
efforts should focus on analyzing and interpreting this information..
A budgeted amount has not been established for this organizatio~,al review.
PART !i - SCOPE of WORK or SERVICES
Vl. SCOPE OF SERVICES
City of Palo Alto
Upon direction by the UAC and the City Manager, the selected consultant will be
expected to provide the City with all services specified in this proposal. An
Overview of the Consultant Services to be provided is presented below followed
by a detailed Scope of Work.
OVERVIEW OF CONSULTANT SERVICES TO BE PROVIDED
PHASES
I. Orientation
I1. Review Criteria
!11. Draft Report
IV. Final Report
DELIVERABLES
Detailed Work Plan
Report and presentation to the UAC and
Council
Draft Report
Final Report
Scope of Work: The primary objectives of this review are 1) to cJetermine if
Utilities are performing at the optimum level of efficiency and effectiveness in
providing responsive and reliable service expected by the customers (electric, gas,
water, wastewater collection), 2) to propose any recommendations to improve
service levels and/or identify cost savings, 3) to prepare for the c.qanging electric
utility regulatory environment and 4) to determine the best organizational structure
to accomplish the above. These objectives must also balance operational
requirements, financial responsibilities and environmental consicerations.
Study Areas to be included in review include:
*Utilities Organizational Structure.
"General Administration.
~Administrative Services & Customer Service.
*Distribution (Water, Gas & Electric) and Collection (Was:ewater).
*Resource Management (Supply, Transmission and Dema.~C Side
Management) for the Water, Gas & Electric.
*Support services from other Departments.
*Support Services from Joint Action Agencies.
PART I! - SCOPE of WORK or SERVICES
Specific tasks include:
Cit~, of Palo Alto
1. Orientation/Review of Past Studies and Plans: Review the various studies,
evaluations, strategic plans, and other audits performed by or for the Utilities
during the last four years, or currently in progress. Determine the Effectiveness
with which the Utilities have implemented and addressed recommendations and
findings of these studies. Meet with the UAC in an Orientation session for input.
2.Identification of Organizational/Review Criteria: Develop a Project Work Plan.
A. Give the City Council and other interested City officials an opportunity to
discuss their concerns with the Utilities’ operations to insure that those issues
are being addressed in the review.
B. Identify, explain and justify the criteria used to evaluate the current Utilities
organizational structure and use of personnel resources and functions.
C. Identify, explain and justify the criteria used to evaluate the Utilities’
performance. Focus on major cost factors broken down into various unit
measurements, such as cost per customer, cost per employee, cost per mile
(electric circuit or gas main or water main, etc.) and overtime per activity.
Include operating ratios, benchmarking and best practices it, at compare the
Utilities with other utility services of similar size and opera;ion.
3.Performance of Organizational Review/Draft Report
A. Benchmark key measures of performance such as reliai3iiity standards or
level of service. Examples of the latter include understandin~c customers’
energy requirements and options, response times for various customer
requests; the length and frequency of various types of out~es; and surveys of
other types of customer satisfaction. Comment on which areas of superior
customer service are cost-effective.
PART II - SCOPE of WORK or SERVICES Cib! of Palo Alto
B. Recognizing the increasing deregulated environment 4n which the Utilities is
operating; primarily in the gas industry and more recently in the electric
industry, evaluate the organizational and planning actions taken by the Utilities
to meet these competitive issues and recommend any needed additional
actions.
C. Compare the Utilities transfers to the General Fund with Municipal Utilities
transfers in other California cities.
D. Compare the Utilities rates by customer classes with other Municipal and
Investor owned Utilities in California.
E. Review and evaluate cost factors for services paid-by Utilities and provided
by the City General Government, Such areas include, but are not limited to"
Legal Services, Finance, Accounting, Purchasing, Fleet Maintenance,
Information Systems and Tree Trimming services.
F. Review, evaluate and benchmark the Utilities organization structure and
performance.
4.Conclusions and Recommendations/Final Report
A. Identify the areas in which the Utilities are performing well and those in
which opportunities for improvements exist. Base perforrr~nce on key
performance measures relative to practices and standards of other utilities.
When making comparisons with other Utilities, identify key differences which
may account for performance measure variability. Provide recommendations
and alternatives for improving the Utilities operations and services.
B. Identify factors that are most likely to affec,t the Utilities’ competitive
position with respect to other suppliers. Recognizing the increasing deregulated
environment in which the Utilities is operating, which factors will cause
increased competition in the future and the potential eros;on of critical
revenue resources? Evaluate the Utilities, current and antic:0ated expenditures
relative to heightened competition with other utilities and servicesl
PART II - SCOPE of WORK or SERVICES City of Palo Alto
C. Evaluate the current organization. Clearly explain the pros and cons of the
recommendation and relationship to other programs, departments and agencies
and capabilities as they exist today and for the future.
VII. RFP RESPONSE REQUIREMENTS
1. The proposal shall be as brief as possible and bound in a single volume.
¯ Supplementary information, brochures, and so on, may be submitted if desired,
but should be provided in a separate package. In addition to the Purchasing and
Contract Administration requirements outlined in Addendum A, the following
format and proposal content shall be adhered to by each firm and presented in the
following order:
A. Executive Summary: An Executive Summary (letter) not to exceed two
pages in length should include key elements of the respondents’ proposal. The
letter must be signed by the individual authorized to bind the respondent. The
letter must stipulate that the proposed price will be valid for a period of 90
days. Indicate the address and telephone number of the respondent’s office
located nearest to Palo Alto, California, and the office from which the project
will be managed.
B. Background and Understanding of Review: The Background and
Understanding of Review Section should describe your understanding of the
City, the work to be done, and the objectives to be accomplished in the
Organizational Review.
1) Methodologv/ies): This section should clearly describe :iqe methodology
or methodologies you plan to use to carry out the specific tasks described
in the Work Plan.
2) ~: Describe the sequential tasks you plan to carry out in
accomplishing this project. Indicate all key deliverables ar, their contents.
Identify how much of the work will be done on site.
]0
PART II - SCOPE of WORK or SERVICES City of Palo Alto
3) Pro!ect Organization and Staffing: Describe your approach and methods
for managing the project. Provide an or.ganization chart showing all
-proposed project team members. Describe the responsibilities of each
person on the project team. Identify the Project Director and/or Manager
and the person who will be the key contact with the City. Indicate how
many hours each team member will devote to the project by task, along
with.a statement indicating the availability of the members of the project
team for the duration of the project. Include resumes of each member of
the project team. List the portion of the work to be subcontracted and
information describing the qualifications and relative experience of any
proposed subcontractors. Include information that consultants would
require from City staff.
D. Project Schedule: Provide a schedule for completing each task in the work
program, including deadlines for preparing all project deliverables.
E. ~: Indicate the total cost for which you will conduct the project by
phase. Identify by project team. member: name, classification, and the number
of hours each member will spend on each task. Indicate separately, total cost
for fees and expenses, including proposed fee discount.
F. Related Experience,: Describe recent, directly related experience. Include on
each listing the name of the client, description of the wor~done, primary
client contact, address and telephone number,, dates of the ~roject, samples of
progress reports, and the name of the Project Director anc.,or Manager and
members of the project team who worked on the project, ~s well as their
respective responsibilities, in addition to the above description, copies of
recently completed relevant reports should be provided.
At least five references should be included. Additional references may be
requested and contacted. For each reference, indicate the reference’s name,
organization affiliate, title, complete mailing address and teiephone number.
The City reserves the right to contact any organizations or individuals listed.
PART il - SCOPE of WORK or SERVICES City of Palo Alto
G. Statement of Compliance: Respondents must submit a Statement of
Compliance with all parts of the Request for Proposal terms and conditions, or
a listing of exceptions and suggested changes, along with a description of any
cost implications or schedule changes the exception and/or changes cause.
The Statement of Compliance must declare that either:
1) this proposal is in strict compliance with the Request for Proposal and
no exceptions are proposed; or
2) this proposal is in strict compliance with the Request for Proposal
except for the items listed.
3) For each exception gnd/or suggested change, the respondent must
include"
a) The suggested change in the RFP or rewording of the contractual
obligations.
b) Reasons for submitting the proposed exception or change.
c) Any impact the change or exception may have on project costs,
scheduling or other considerations.
PART II - SCOPE of WORK or SERVICES
VIii. EVALUATION CRITERIA
,,, Cib/of Palo Alto
Proposals will be evaluated on the basis of their response to all provisions of this
RFP. The City may use some or all of the following criteria in its evaluation and
comparison of DroDosals submitted. These are the major criteria and the order in
which they appear is not intended to indicate their relative importance.
Qualifications and experience of firm including:
*The organization structure of the proposed project team.
*Qualifications of the specific individuals assigned to this project.
*Demonstrated record of success performed previously by the consultant on
projects of similar scope, complexity and magnitude.
Quality of proposal:
*A demonstrated understanding of the project’s objectives and scope
~Responsiveness to the requirements of the project as set forth in the RFP.
*Demonstrated familiarity with the policies and procedures and the
benchmarking of service level standards of comparable utilities.
The quality of the team, presentation and interview if an interview is
requested. The consultant must bring to the interview the Project Manager
as well as the person who will be the key manager.
Value of work per cost:
Reasonableness of the fee requested to complete this work within the
approved schedule.
Soundness of methodology:
*A logical, proven methodology for carrying out the tasks described in the
proposal and developing project deliverables.
5. The financial stability of the respondent.
6. Items and documents required by the RFP.
End of Section
CHAPTER V
Project Schedule & Staffing
Based upon our understanding of the scope of work and our proposed approach, we are prepared
to begin the project within two weeks of notification of project award. The schedule provided in
Figure 1 indicates duration of steps and milestone dates for deliverables. In keeping to this
proposed schedule, we request that Department personnel give proper priority to study activities
and respond promptly to requests for interviews, data, and deliverable review. We will keep the
Department project management apprised of any issues which could adversely impact the project
schedule. This schedule is shorter than that proposed in the RFP. Based on our prior experience,
we believe that it is more efficient to concentrate our efforts over a shorter period, rather than to
draw-out the project. The Department will also benefit from having the results of the study
sooner.
Step I
5 Weeks
Initiation
High Level
Diagnostics
Data Requests
Figure 1
Project Schedule
WEEKS
2 3 4 5 6 7 . 8 9 10 11 12 13 14 15 16
A
Step II
8 Weeks
Detailed Analysis
Gas/Water/Wastewater
Competitive Evolution
Step IH
4 Weeks
Final Report and
Implementation Plans
A A A
Cnmaa
Re’,’~ew
A ¸A
Monthly Monthly
Repor~Rel~n
A REPORT
I
Interim Final
Re,oort Retmrt
PROJECT STAFFING AND SUBCONTRACTORS
Detailed staffing plans--including hours worked by each consultant--are available in
Chapter VI. Each consultant will be available for discussion with the Department throughout the
project. The structure of the consulting team is detailed below.
58800001P City of Palo Alto Organization Review 51127 15
EXHIBIT B
CHAPTER Vl
Project Cost
Figure 2 provides the detailed breakout of fees and hours, by person, by phase for the study.
Because TB&A only bills for time and expenses actually incurred on the project, actual fees may
be less if the project is completed with fewer resources than expected.
Figure 2
Staffing Fees
,TB&A-1LMI Hourly
Team Level Rate Step 1 Step 2 Step 3 Total
’Torn Resh Managing Director $220 20 50 30 I00
,Ken Buckstaff Managing Director $220 30 30 0 60
Tim Szybalski Managing Associate $165 30 80 40 150
Ron Oechsler Principal Consultant $173 40 140 40 220
i Betsy Aylin Executive Consultant $163 20 110 30 160
!Harold Morgan Principal Consultant $150 t0 130 20 160
Richard Lamb Associate $135 50 50 50 150
Kosch/Oyadomari Analyst $70 20 100 20 140
Hours per Step 220 690 230 1,140
Fees per Step $35,780 $106.200 $36,160 $178,140
Consulting Fees $178,140
Expenses 15.000
Total Costs $193,140
This estimate is based on our experience with similar projects where client-site work is required.
We bill expenses without markup. Expenses include airfare, meals, lodging, and administrative
costs. TB&A’s standard practice is to bill monthly for time and expense incurred in the previous
month.
58800001P City of Palo Alto Organization Review 51127 18
EXHIBIT C
JOHNSON & NIGGINS
Im
C27Y OF PALO AL’/’O
EXHIBIT D
CERTIFICATION of NONDISCRIMINATION SECTION 410
Certfficl~tion of Nondi_s~rlmlnatlon_: As suppliers of goods or services to the City of Palo Alto,
the firm ~nd individuals listed below certifies that they do not discriminate in employment with
regards to age, race, color, rellg;on, sex, national origin, ancestry, disability, or sexual
preference; that they are in compliance with 811 Federal, State and local directives and
executive orders regarding nonBiscrimination in employment; and that they agree to
¯ demonstrate positively and aggressively the principle of equal opportunity in employment.
The Bidder agrees specifically:
1.0 To establish or observe employment pollc~es which affirmatively promote
opportunities for minority persons at all job levels.
2.0 To communicate this policy to all persons concerned, including all employees,
outsi~e recruiting servi¢es, esl~ecially those serving minority communities, and
to the minority communities at large.
3.0 TO take affirmative action steps tO hire minority employees within the
organize[ion.
1"o be knowledgeable of the local, state, and federal laws and regulations
concerning affirmative action policies =nd provide opportunities for employees.
Firm: Theodore Barry and A,,ssoci~tes .bATE:f1/30/95
Please =nclu0e any additional information available regarding equal opportunity employment
programs now =n eltect within your company.
END OF SECTION
CITY of PALO ALTO: Non4is=~mination (6/~{)SECTION 410.1
A TTA CHMENT 3
m
0 0 O~ O0 O~ 0 ~