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HomeMy WebLinkAboutStaff Report 101-07City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL 7 FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE: SUBJECT: JANUARY 16, 2007 CMR: 101:07 APPROVAL OF AGREEMENT WITH THE PALO ALTO WEEKLY IN THE AMOUNT OF $150,000 FOR NEWSPAPER ADVERTISING SERVICES RECOMMENDATION Staff recommends that Council: ° Approve and authorize the City Manager to execute the attached agreement with the Palo Alto Weekly in an amount not to exceed $150,000 for legal and display advertising services for fiscal year 2006-07. Authorize the City Manager or his designee to exercise the option to renew the contract for the second and/or third year provided the proposed cost of the renewal contract does not exceed the Consumer Price Index for all urban consumers (San Francisco - Oakland - San Jose, CA), the contractor is responsive to the City’s needs, and the quality of the contractorls work is acceptable during the first year of the contract. DISCUSSION Scope of Services Description The scope of work to be performed under the contract is the publication of the City’s legal and public notices and display advertisements. The Palo Alto Weekly newspaper was selected because of its large circulation in and around the Palo Alto area and its competitive rates. It is delivered to all Palo Alto households, with a distribution covering the mid-peninsula area of San Francisco. The Palo Alto Weekly charges the City $38 per unit per day, compared to a charge of $86.86 with the San Jose Mercury News for the same service. The Weekly offers the CitY a special discount off its standard commercial rate of $68.30 per square inch per day. In addition, the Weekly is a free weekly publication whose target audience is the local Palo Alto community. It would be impracticable to bid for advertising in newspapers in surrounding regions that do not directly serve the target market and have a cost associated with distribution. CMR: 101:07 PAGE 1 OF 2 RESOURCE IMPACT Funding for this agreement is provided in the 2006-07 Budget. Individual blanket orders have been established with the following departments utilizing the terms in this agreement: Planning $30,000; City Clerk $29,000; Public Works Recycling $28,000; Utilities Marketing $20,000; Public Works Water Quality Control Plant $7,000; and Public Works Refuse $2,000. The individual blanket orders that have been established total $116,000, and may be increased up to a total amount of $150,000 as the year progresses. POLICY IMPLICATIONS This recommendation is consistent with current City policies ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act (CEQA). PREPARED BY: KATHY~ADLEY Contract Administrator DEPARTMENT HEAD: CITY MANAGER APPROVAL: D’r~ e~or,/kdministrative Services Assistant City Manager ATTACHMENTS Attachment A: Agreement CMR:101:07 PAGE 2 OF 2 ATTACHMENT A CITY OF PALO ALTO CONTRACT NO. CT07119987 MASTER AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE PALO ALTO WEEKLY FOR PROFESSIONAL SERVICES FOR ADVERTISING PUBLICATION SERVICES This AGREEMENT is entered into January 15, 2007, by and between the CITY OF PALO ALTO, a chartered city and a municipal corporation of the State of California ("CITY"), and THE PALO ALTO WEEKLY, a California Corporation, located at 703 High Street. PO Box 1610, Palo Alto, CA 94302 (PH) 650-326-8210 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Master Agreement. A. CITY may need to have published various legal notices, public notices, and/or display advertisements. The "CITYH desires to engage "CONSULTANT" to provide, on an as-needed basis, Advertising Publication Services as needed. ’ B. CONSULTANT has represented that it and any sub consultants have the necessary professional expertise’, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services on an as-needed basis, for the Office of the City Clerk, Planning and Community Environment Division, Legal Division, Public Works Division, as well as other Divisions within the CITY, as more fully described in the Scope of Service, ExhibitI "A", attached to and made a part of this Agreement. D. CONSULTANT has agreed to perform the Services on the terms and conditions contained in this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, this Agreement, the parties agree: AGREEMENT Section I. SCOPE OF SERVICES. CONSULTANT shall perform the type of Services generally described’in Exhibit "A", on as needed basis. Each request for publication (Task Order), shall have a specific scope of work established for that specific request .for publication on an as-needed basis, in accordance with the terms and conditions contained in this Agreement. Each request for publication will be 1 050310 assigned and authorized by the City’s Division Managers. The performance of all Services shall be to the reasonable satisfaction of the CITY. SECTION 2. TEP4~. The term of this Agreement shall be from the date of its full execution to December 31, 2007, unless terminated earlier pursuant to Section 20 of this Agreement. With the approval of both parties, this Agreement may be extended for up to two (2) additional one (i) year periods. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence, however, in no event will CONSULTANT be responsible for events beyond its reasonable control in the performance of Services under this Agreement. CONSULTANT shall completethe Services within the term of this Agreement and in accordance with the schedule set forth for each specific Task Order. Any Services, for which times for performance are not specified in this Agreement or within the scope developed for each Task Order, shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. City’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation, under this Master Agreement, to be paid to CONSULTANT for performance of the Services described in Exhibit A, which may or may not be authorized on a Task-by-Task basis, including both payment for professional services and reimbursable expenses, shall not exceed One Hundred and Fifty Thousand Dollars ($150,000.00). The applicable rates and schedule of payment are set out in Exhibit B, entitled "COMPENSATION," which is attached to and made a part of this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges, based upon the Consultant’s billing rates (set forth in Exhibit B). The information in Consultant’s payment requests shall be subject to verification by CITY. Invoices will reference~the applicable Purchase Order Number and the specific Division within the City for whom the Service was performed. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under Consultant’s ~supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and sub consultants have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature 2 050310 that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. CONSULTANT shall report immediately to the City’s project manager, in writing, any discrepancy or inconsist@ncy it discovers in the laws, ordinances, regulations, orders, and/or guidelines in relation to the Project of the performance of the Services. All documentation prepared by CONSULTANT shall provide for a completed project that conforms to all applicable~codes, rules, regulations and guidelines that are in force at the time such documentation is prepared. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, all errors, omissions, or ambiguities in the work product submitted to CITY, to the extent arising out of or resulting from the work performed or to be performed under this Agreement due to the willful or negligent acts or omissions by Consultant’s officers, employees and.agents, provided CITY gives notice to CONSULTANT.~- SECTION 9. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. The manner and means of conducting the Services are the responsibility of and under the control of CONSULTANT, except to the extent they are limited by applicable law and the express terms of this Agreement. CONSULTANT will be responsible for employing or engaging all persons necessary to perfor~ the Services. All contractors and employees of CONSULTANT are deemed to be under CONSULTANT’S exclusive direction and control. CONSULTANT shall be responsible for their performance. SECTION i0.ASSIGN~IENT. The parties agree that the expertise and 3 050310 experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of Consultant’s obligations hereunder without the prior written consent of the city manager. Consent to ~one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION Ii. SUBCONTRACTING. Notwithstanding Section i0 above, CITY agrees that sub consultants may be used to complete the Services required to complete the Tasks which may be assigned. The sub consultants authorized by CITY to perform work on any specific Task, shall be identified in the Scope for that Task. CONSULTANT shall be responsible for directing the work of the sub consultants and for any compensation due to sub consultants. CITY assumes no responsibility whatsoever concerning such compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a sub consultant. CONSULTANT shall change or add sub consultants only with the prior approval of the city manager or his designee. SECTION 12. PROJECT MANAGE~IENT. CONSULTANT will assign Blanca Yok, as the project director to have supervisory responsibility for the performance, progress, and execution of the Services. If circumstances or conditions subsequent to the execution of this Agreement cause the substitution of the ’project director or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the City’s project manager. CONSULTANT, at City’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The city manager will represent CITY for all purposes under this Agreement. Each Division within the City will assign a specific individual to act as Consultant’s point of contact with respect to performance, progress and execution of the Services. SECTION 13. DUTIES of CITY. To assist CONSULTANT in the performance of the Services, CITY will furnish or cause to be furnished the specified services and/or documents described in Exhibit "A" and such other available information as may be reasonably requested by CONSULTANT, on a task-by-task basis. SECTION 14. OWNERSHIP OF MATERIALS. All drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed or discovered by CONSULTANT or any other person engaged directly or indirectly by CONSULTANT to perform the services required hereunder shall be and remain the 050310 property of CITY without restriction or limitation upon their use. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the city manager or designee. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, Consultant’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including reasonable attorneys fees, experts fees, court costs and disbursements ("Claims") resulting in any way from the work performed or to be performed under this Agreement due to the willful or negligent acts or omissions by CONSULTANT, its officers, employees, agents or contractors under this Agreement. The acceptance of Consultant’s services and duties by CITY s’hall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ~ordinance or law, or of any subsequent breach or violation of the .same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1.CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy or policies. 18.2.All insurance coverage required hereunder shall be provided through carriers with Best’s Key Rating Guide ratings of A-: VII or higher which are admitted to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of 5 050310 this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3.Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. 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 materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification, CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to City’s Purchasing Manager during the entire term of this Agreement. 18.4. 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 Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligate’d for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. WORKERS’ COMPENSATION. CONSULTANT, by executing this Agreement, 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 and during the performance of the Services. SECTION 20.TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 20.1.The city manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (i0) days’ prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 20.2.CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving ten (i0) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 20.3.Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if 6 050310 any, or given to CONSULTANT or its contractors, if any, in connection with ~this Agreement. Such materials will become the property of CITY. 20.4.Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., i0 days after giving notice) of suspension or termination; provided, however, if this Agreement 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 acting in the reasonable exercise of his/her discretion 20.5. 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 Agreement. SECTION 21. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY:Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager. To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 22.CONFLICT OF INTEREST 22.1.In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 22.2.CONSULTANT further covenants that, in the performance of this Agreement, it will not employ sub consultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of th6 Palo Alto Municipal Code and the Government Code o.f the State of California. 22.3. If the Project Manager determines that CONSULTANT is a "Consultant" as that term is defined by the Regulations of the 7 o~o3~o Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 23. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT agrees that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Chapter 2.28 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Chapter 2.28 pertaining to nondiscrimination in employment, including completing the form furnished by CITY and set forth in Exhibit E. SECTION 24.MISCELLANEOUS PROVISIONS. 24.1. This Agreement will be governed by the laws of the State of California. 24.2.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. 24.3.The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. 24.4.This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 24.5.The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and CONSULTANTs, as the case may be, of the parties. 24.6.If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 24.7.All exhibits referred to in this Agreement and 8 050310 any addenda, appendices, attachments, and schedules to this ~-:g¢c:em~nt whlch~ from time ’to time, may be referred to in an.y duly ez~{cuted amen~ktwmt hereto are hy such r~ferenoe incorporated ..in this Agreement and will be deemed to be a o.~rt of this Agreement. 24 ~ 8.This Ag=eement is subject tc the fiscal prev.Lsicns of the Charter of the City of Pale A!to and mhe Pale Alto M<~.qicipal Cede. This Agreement wi!l terminate without any penalty (~) az the end of any fiscal year it: <he event that funds are not agprcpr].a=ed for the following fiscal year, or (b) at any time withi= a fisca! .year in the event that funds are only appropriated for a portion of the fi’scal year anti funds for this Agreement are no longer available. This Section 24.8 shal! take precedence in t:ho event of a conflict with any other covena:lt, term~ condition, or provisicn of this Agreement. IN WITNESS WHEREOF, the parties hereto have by their duly atlr~ho£1zed representatives ezecuted this Agreement on the date first above written~ CITY OF ’PALe ALTO A[:I?~{()VED AS TO FORM: City Attorney Sy:~ Assis~:ant City Manager rector of Administrative Servi¢:(.~s la×paTee Identification NO. Purchas~mg ~anager Contract Manager ;~X.{[II3 !~~ "A" : EX.qI B IT "B": SCOPE OF WORK CON [:ENSA,PION cT ’--t ,- z-t,o t (Compliance wi~.h Corp. C<:,,.",o ~ 313 i~ required i[ the 8nti~y on who~e bahalf this contract is signed £s a corpora<ion. Z~] the a!ternative, the ~£g~.&to~y authori%~ O~ the individuals EXHIBIT A SCOPE OF SERVICE AGREEMENT #CT07119987 1.Proiect Description Consultant shall independently provide publication services in the weekly circular, known as The Palo Alto Weekly, of legal and public notices and advertising displays as needed by the City of Palo Alto’s Office of the City Clerk, Planning and Community Environment Division, Legal Division, Public Works Division and potentially other Divisions within the City. Services, if required, will be authorized on a Task-by-Task basis, via requests for publication in the form of purchase orders, as needed. Tasks will be assigned and authorized by the various Division Managers. Task scopes, budgets, and completion schedules will be negotiated as needs arise. 2. Scope of Services Services performed by the contractor may include, but shall not be limited to: A) Publication of LegalNotices B) Publication of Public Notices ¯C) Display Advertisements o Requests for Publication (Task Orders) A Task Specific Purchase Order will be issued for each requested publication. Details for each Task, (request for publication) will be included with the request. EXHIBIT B COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement. Compensation for each Task, shall be calculated based on the rate schedule attached as Exhibit B-1. The compensation to be paid to CONSULTANT under this Agreement for all services performed shall not exceed $150,000.00. CONSULTANT agrees to complete all assigned Tasks which it agrees to and accepts, within this amount. Any Tasks performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be negotiated and approved in advance of the work performed or shall be at no cost to the CITY. EXHIBIT B-1 COST SHEET and SCHEDULE OF RATES Notices and Advertising Displays to be published at the Rate of $38.00 per unit per day. (Unit equals 1-7/8" x 1-1/2 "). Effective July 1,2006 .Rates subject to annual adjustment (To Be approved by CITY) 12 o5o3zo