HomeMy WebLinkAboutStaff Report 128-10TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: UTILITIES
DATE: FEBRUARY 1, 2010 CMR:128:10
REPORT TYPE: CONSENT
SUBJECT:, APPROVAL OF AN ELECTRIC ENTERPRISE FUND CONTRACT
WITH DIVERSIFIED UTILITY SERVICES, INC. FOR A TOTAL
NOT TO EXCEED AMOUNT OF $3,000,000 FOR PROVIDING
OVERHEAD ELECTRIC TRANSMISSION AND DISTRIBUTION
SYSTEM CONSTRUCTION SERVICES -CAPITAL
IMPROVEMENT PROGRAM BUDGET EL 98003
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager or his designee to execute the attached contract
with Diversified Utility Services Incorporated for a period of twelve (12) months in the
amount of $1,000,000 to provide overhead construction services.
2. Authorize the City Manager or his designee to renew the contract for up to two additional 12
month periods at a cost of$l,OOO,OOO for the first renewal (FY 2010/2011) and $ 1,000,000
for the second renewal (FY 201112012) for a total contract price of $3,000,000 if the
contractor is responsive to the contract requirements, and the quality of the work is
acceptable during the first twelve months of the contract.
Project Description
The work to be performed under the contract is for providing overhead construction services on the
City of Palo Alto's (City) electric transmission and distribution system. The contractor will be asked
to provide two crews (one four-person crew and one two-person crew) to be used full time by the
City's Electric Operations for a period of twelve (12) months, with an option for City to extend the
term for two additional 12 month periods.
The contractor services mainly include replacements of poles, transformers, air switches, connectors,
insulators, overhead conductors, and any other miscellaneous work related with overhead line
construction. In addition, the crew will be available to assist Electric Operations for general
maintenance and restoration of power during emergency and storm situations.
CMR:128:10 Page 1 of3
Staff is recommending the use of a contractor to perform this work because the City's electric line
workforce does not have adequate staff to meet the current peak workload. Existing staff is barely
keeping up with the new business requests, underground construction, and some maintenance work.
The contractor will be asked to perform overhead services to assist city crews in meeting deadlines
of the different capital improvement projects. Furthermore, there is insufficient city staff to keep up
with the increased number of poles requiring replacement in the current fiscal year and the poles
planned to be replaced over the next three years.
Summary of Bid Process
Bid N amelNumber Overhead Construction ServiceslIFB-133837
Proposed Length of Project 1 year with option to extend for two additional years
Number of Bids Mailed to 7
Contractors
Number of Bids Mailed to Builder's I 1
Exchanges
Total Days to Respond to Bid 21
Pre-Bid Meeting? No
Number of Company Attendees at N/A
Pre-Bid Meeting
Number of Bids Received: 5*
Bid Price Range -Hourly Rate for 4 From $411 to $600
person crew
Bid Price Range -Hourly Rate for 2 From $187 to $300
person crew
*Bid summary provided in Attachment B.
Staff has reviewed all bids submitted and recommends that the bid submitted by Diversified Utility
Services Incorporated be accepted and that Diversified Utility Services Incorporated be declared the
lowest responsible bidder.
Diversified Utility Services Incorporated was selected because of its recent experience with related
projects, full understanding of the RFP, cost, and the foreman's qualifications and experience.
Staff checked references supplied by the contractor for previous work performed by Diversified
Utility Services Incorporated and found no complaints. Staff also checked the contractor's license
with the Contractor's State License Board and found that the contractor has an active license on file.
RESOURCE IMPACT
Funds for this capital improvement project are included in FY 2009-2010 Electric Capital
Improvement Program Budget EL 98003 -and Distribution Operation and Maintenance Budget.
CMR:128:1O Page 2 of 3
Continued work under this contract for FY 201012011 and FY 201112012 will be subject to
satisfactory performance by the contractor and appropriation of required funds in these fiscal years.
This action has no impact on construction work forces since it is being performed by an outside
contractor.
POLICY IMPLICATIONS
The approval of this contract is consistent with existing City policies, including the Council
approved Utilities Strategic Plan Key Strategy No.1, "Operate distribution system in a cost effective
manner" and; Strategy No.2, "Invest in utility infrastructure to deliver reliable service".
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act (CEQA), pursuant to
CEQA guidelines section 1530 1 (operation, repair, maintenance of existing facilities), and section
15302 (replacement or reconstruction of existing facilities).
ATTACHMENTS
Attachment "A":
Attachment "B":
Attachment "C":
PREPARED BY:
APPROVED BY:
Contract
Bid Summary
Certification of Nondiscrimination
~ TOMM MARSHALL
Assistant Director of Utilities Engineering
DEPARTMENT HEAD:
;:Of VALERIE O. FONG
Director of Utilities
CITY MANAGER APPROV AL: ---A~~7:>t.L:-£=--i-O!1'1hf-_~r--__ -
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Cy
CMR:128:IO Page 3 of3
CONTRACT No. C10133837
(Public work)
Utilities Department
ATTACHMENT A
This Contract, number C1 0133837 dated __ is entered into by and between the City of Palo Alto, a California Charter
City and a municipal corporation of the State of California ("City") , and Diversified Utility Services, Inc. ("Contractor").
For and in consideration of the covenants, terms, and conditions ("the provisions") of this Contract, City and Contractor
("the parties") agree:
1. Term. This Contract shall commence and be binding on the parties on the Date of Execution of this Contract,
and shall expire on the date of recordation of the Notice of Substantial Completion. or, if no such notice is
required to be filed. on the date that final payment is made hereunder. subject to the earlier termination of this
Contract.
2. General Scope of Project and Work. Contractor shall furnish labor. services, materials and equipment in
connection with the construction ofthe Project and complete the Work in accordance with the covenants. terms
and conditions of this Contract to the satisfaction of City. The Project and Work is generally described as
follows:
Title of Project: 2009-2010 Overhead Construction Services, Invitation for Bids (IFB) No. 133837
Bid: $411/hour Four (4) person crew and $187/hour Two (2) person crew
3. Contract Documents. This Contract shall consist of the documents set forth below. which are on file with the City
Clerk and are hereby incorporated by reference. For the purposes of construing. interpreting and resolving
inconsistencies between and among the provisions ofthis Contract. these documents and the provisions thereof
are set forth in the following descending order of precedence.
a. This Contract.
b. Invitation for Bid.
c. Project SpeCifications.
d. Drawings.
e. Change Orders.
f. Bid.
g. Supplementary Conditions.
h. General Conditions.
I. City of Palo Alto Dept. of Public Works Standard Drawings and Specifications (2007).
j. Certificate of Insurance, Performance Surety Bond, labor & Materials (Payment) Surety Bond.
k. Other SpeCifications, or part thereof. not expressly incorporated in the Contract SpeCifications or the
City of Palo Alto Dept. of Public Works Standard Drawings and Specifications (2007).
I. Any other document not expressly mentioned herein which is issued by City or entered into by the
parties.
4. Compensation. In consideration of Contractor's performance of its obligations hereunder. City shall pay to
Contractor the amount set forth in Contractor's Bid in accordance with the provisions of this Contract and upon
the receipt of written invoices and all necessary supporting documentation within the time set forth in the
Contract SpeCifications and the City of Palo Alto Dept. of Public Works Standard Drawings and SpeCifications
(1992), or, if no time is stated. within thirty (30) Days of the date of receipt of Contractor's inVOices.
5. Insurance. On or before the Date of Execution. Contractor shall obtain and maintain the policies of insurance
coverage described in the Invitation For Bid on terms and conditions and in amounts as may be required by the
Risk Manager. City shall not be obligated to take out insurance on Contractor's personal property or the
personal property of any person performing labor or services or supplying materials or equipment under the
Project. Contractor shall furnish City with the certificates of insurance and with original endorsements affecting
coverage required under this Contract on or before the Date of Execution. The certificates and endorsements for
each insurance policy shall be signed by a person who is authorized by that insurer to bind coverage in its behalf.
CITY OF PALO ALTO IFB 133837
rev. 12JOO
PAGE 1 OF'
Proof of insurance shall be mailed to the Project Manager to the address set forth in Section 16 ofthis Contract
6. Indemnification. Contractor agrees to protect, defend, indemnify and hold City, its Council members, officers,
employees, agents and representatives harmless from and against any and all claims, demands, liabilities,
losses, damages, costs, expenses, liens, penalties, suits, or judgments, arising, in whole or in part, directly or
indirectly, at any time from any injury to or death of persons or damage to property as a result of the willful acts or
the negligent acts or omissions of Contractor, or which results from Contractor's noncompliance with any Law
respecting the condition, use, occupation or safety of the Project site, or any part thereof, or which arises from
Contractor's failure to do anything required under this Contract or for doing anything which Contractor is required
not to do under this Contract, or which arises from conduct for which any Law may impose strict liability on
Contractor in the performance of or failure to perform the provisions of this Contract, except as may arise from
the sole willful acts or negligent acts or omissions of City or any of its Council members, officers, employees,
agents or representatives. This indemnification shall extend to any and all claims, demands, or liens made or
filed by reason of any work performed by Contractor under this Contract at any time during the term of this
Contract, or arising thereafter.
To the extent Contractor will use hazardous materials in connection with the execution of its obligations under
this Contract, Contractor further expressly agrees to protect, indemnify, hold harmless and defend City, its City
Council members, officers and employees from and against any and all claims, demands, liabilities, losses,
damages, costs, expenses, liens, penalties, suits, or judgments City may incur, arising, in whole or in part, in
connection with or as a result of Contractor's willful acts or negligent acts or omissions under this Contract, under
the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. ~~9601-6975, as
amended); the Resource Conservation and Recovery Act (42 U.S.C. ~~6901-6992k, as amended); the Toxic
Substances Control Act (15 U.S.C. ~~2601-2692, as amended); the Carpenter-Presley-Tanner Hazardous
Substance Account Act (Health & Safety Code, 3325300-25395, as amended); the Hazardous Waste Control
Law (Health & Safety Code, 3325100-25250.25, as amended); the Safe Drinking Water and Toxic Enforcement
Act (Health & Safety Code, 3325249.5-25249.13, as amended); the Underground Storage of Hazardous
Substances Act (Health & Safety Code, 3~25280-25299. 7, as amended); or under any other local, state or
federal law, statute or ordinance, or at common law.
7. Assumption of Risk. Contractor agrees to voluntarily assume any and all risk of loss, damage, or injury to the
property of Contractor which may occur in, on, or about the Project site at any time and in any manner, excepting
such loss, injury, or damage as may be caused by the sole willful act or negligent act or omission of City or any
of its Council members, officers, employees, agents or representatives.
8. Waiver. The acceptance of any payment or performance, or any part thereof, shall not operate as a waiver by
City of its rights under this Contract A waiver by City of any breach of any part or provision of this Contract by
Contractor shall not operate as a waiver or continuing waiver of any subsequent breach ofthe same or any other
provision, nor shall any custom or practice which may arise between the parties in the administration of any part
or provision of this Contract be construed to waive or to lessen the right of City to insist upon the performance of
Contractor in strict compliance with the covenants, terms and conditions of this Contract.
9. No Exoneration By Inspection: The City has the right, but not the duty, to inspect Contractor's Work. The right of
inspection is solely for the benefit of City. Contractor has the obligation to complete the Work in a satisfactory
manner in compliance with Contract requirements. The presence of a City inspector does not shift that obligation
to the City or relieve Contractor from its obligations to complete the Work in a satisfactory manner in compliance
with the Contract requirements.
10. Compliance with Laws. Contractor shall comply with all Laws now in force or which may hereafter be in force
pertaining to the Project and Work and this Contract, with the requirement of any bid security or fire underwriters
or other similar body now or hereafter constituted, with any discretionary license or permit issued pursuant to any
Law of any public agency or official as well as with any provision of all recorded documents affecting the Project
site, insofar as any are required by reason of the use or occupancy of the Project site, and with all Laws
pertaining to nondiscrimination in employment and hazardous materials.
11. Bid Security Bonds. As a condition precedent to City's obligation to pay compensation to Contractor, and on or
before the Date of Execution, Contractor shall furnish to the Project Manager the Bid Security as required under
the InVitation For Bid.
CITY OF PALO ALTO IFB 133837 PAGE 2 OF i>
rev. 12100
12. Representations and Warranties. In the supply of any materials and equipment and the rendering of labor and
services during the course and scope of the Project and Work, Contractor represents and warrants:
a. Any materials and equipment which shall be used during the course and scope of the Project and Work
shall be vested in Contractor;
b. Any materials and equipment which shall be used during the course and scope of the Project and Work
shall be merchantable and fit to be used for the particular purpose for which the materials are required;
c. Any labor and services rendered and materials and equipment used or employed during the course and
scope of the Project and Work shall be free of defects in workmanship for a period of one (1) year after
the recordation of the Notice of Substantial Completion, or, if no such notice is required to be filed, on
the date that final payment is made hereunder;
d. Any manufacturer's warranty obtained by Contractor shall be obtained or shall be deemed obtained by
Contractor for and in behalf of City.
e. Any information submitted by Contractor prior to the award of Contract, or thereafter, upon request,
whether or not submitted under a continuing obligation by the terms of the Contract to do so, is true and
correct at the time such information is submitted or made available to the City;
f. Contractor has not colluded, conspired, or agreed, directly or indirectly, with any person in regard to the
terms and conditions of Contractor's Bid, except as may be permitted by the Invitation For Bid;
g. Contractor has the power and authority to enter into this Contract with City, that the individual executing
this Contract is duly authorized to do so by appropriate resolution, and that this Contract shall be
executed, delivered and performed pursuant to the power and authority conferred upon the person or
persons authorized to bind Contractor;
h. Contractor has not made an attempt to exert undue influence with the Purchasing Manager or Project
Manager or any other person who has directly contributed to City's decision to award the contract to
Contractor;
I. There are no unresolved claims or disputes between Contractor and City which would materially affect
Contractor's ability to perform under the Contract;
j. Contractor has furnished and will furnish true and accurate statements, records, reports, resolutions,
certifications, and other written information as may be requested of Contractor by City from time to time
during the term of this Contract;
k. Contractor and any person performing labor and services under this Project are duly licensed by the
State of California as required by California Business & Professions Code Section 7028, as amended;
and
I. Contractor has fully examined and inspected the Project site and has full knowledge of the physical
conditions of the Project site.
13. ASSignment. This Contract and the performance required hereunder is personal to Contractor, and it shall not be
assigned by Contractor. Any attempted assignment shall be null and void.
14. Claims of Contractor. All claims pertaining to extra work, additional charges, or delays within the Contract Time
or other disputes arising out of the Contract shall be submitted by Contractor to City in writing by certified or
registered mail within ten (10) Days after the claim arose or within such other time as may be permitted or
required by law, and shall be described in sufficient detail to give adequate notice of the substance of the claim
to City.
15. Audits by City. During the term of this Contract and for a period of not less than three (3) years after the
CITY OF PALO ALTO IFB 133837 PAGE 3 OF6
rev. 12100
expiration or earlier termination of this Contract, City shall have the right to audit Contractor's Project-related and
Work-related writings and business records, as such terms are defined in California Evidence Code Sections 250
and 1271, as amended, during the regular business hours of Contractor, or, if Contractor has no such hours,
during the regular business hours of City,
16, Notices. All agreements, appointments, approvals, authorizations, claims, demands, Change Orders, consents,
designations, notices, offers, requests and statements given by either party to the other shall be in writing and
shall be sufficiently given and served upon the other party if (1) personally served, (2) sent by the United States
mail, postage prepaid, (3) sent by private express delivery service, or (4) in the case of a facsimile transmission,
if sent to the telephone FAX number set forth below during regular business hours of the receiving party and
followed within two (2) Days by delivery of a hard copy of the material sent by facsimile transmission, in
accordance with (1), (2) or (3) above. Personal service shall include, without limitation, service by delivery and
service by facsimile transmission.
To City:
Copy to:
To Contractor:
City of Palo Alto
City Clerk
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, CA 94303
City of Palo Alto
Dept -Utilities
Division -Engineering
Address -1007 Elwell Court
Palo Alto, CA 94303
Jim Thompson, Project Manager
Diversified Utility Services, Inc
3105 Unicorn Road
Bakersfield, CA 93380
Attn: Leigh Ann Anderson
17. Appropriation of City Funds. This Contract is subject to the fiscal provisions of Article III, Section 12 of the
Charter of the City of Palo Alto, Any charges hereunder for labor, services, materials and equipment may accrue
only after such expenditures have been approved in advance in writing in accordance with applicable Laws. This
Contract shall terminate without penalty (I) at the end of any fiscal year in the event that funds are not
appropriated for the following fiscal year, or (ii) 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 17
shall control in the event of a conflict with any other provision of this Contract.
18. Miscellaneous.
a. Bailee Disclaimer. The parties understand and agree that City does not purport to be Contractor's
bailee, and City is, therefore, not responsible for any damage to the personal property of Contractor.
b, Consent. Whenever in this Contract the approval or consent of a party is required, such approval or
consent shall be in writing and shall be executed by a person having the express authority to grant such
approval or consent.
c. Controlling Law. The parties agree that this Contract shall be governed and construed by and in
accordance with the Laws of the State of California.
d. Definitions. The definitions and terms set forth in Section 1 of the City of Palo Alto Dept. of Public
Works Standard Drawings and Specifications (1992) of this Contract are incorporated herein by
reference.
CITY OF PALO ALTO IFB 133837
rev. 12100
PAGE 4 OFt
e. Force Majeure. Neither party shall be deemed to be in default on account of any delay or failure to
perform its obligations under this Contract which directly results from an Act of God or an act of a
superior governmental authority.
f. Headings. The paragraph headings are not a part of this Contract and shall have no effect upon the
construction or interpretation of any part of this Contract.
g. Incorporation of Documents. All documents constituting the Contract documents described in Section 3
hereof and all documents which may, from time to time, be referred to in any duly executed amendment
hereto are by such reference incorporated in this Contract and shall be deemed to be part of this
Contract.
h. Integration. This Contract and any amendments hereto between the parties constitute the entire
agreement between the parties concerning the Project and Work, and there are no other prior oral or
written agreements between the parties that are not incorporated in this Contract.
I. Modification of Agreement. This Contract shall not be modified or be binding upon the parties, unless
such modification is agreed to in writing and signed by the parties.
j. Provision. Any agreement, covenant, condition, clause, qualification, restriction, reservation, term or
other stipulation in the Contract shall define or otherwise control, establish, or limit the performance
required or permitted or to be required of or permitted by either party. All provisions, whether
covenants or conditions, shall be deemed to be both covenants and conditions.
k. Resolution. Contractor shall submit with its Bid a copy of any corporate or partnership resolution or
other writing, which authorizes any director, officer or other employee or partner to act for or in behalfof
Contractor or which authorizes Contractor to enter into this Contract.
I. Severability. If a court of competent jurisdiction finds or rules that any provision ofthis Contract is void
or unenforceable, the provisions of this Contract not so affected shall remain in full force and effect.
m. Status of Contractor. In the exercise of rights and obligations under this Contract, Contractor acts as
an independent contractor and not as an agent or employee of City. Contractor shall not be entitled to
any rights and benefits accorded or accruing to the City Council members, officers or employees of
City, and Contractor expressly waives any and all claims to such rights and benefits.
n. Successors and Assigns. The provisions of this Contract shall inure to the benefit of, and shall apply to
and bind, the successors and assigns of the parties.
o. Time of the Essence. Time is of the essence of this Contract and each of its provisions. In the
calculation of time hereunder, the time in which an act is to be performed shall be computed by
excluding the first Day and including the last. If the time in which an act is to be performed falls on a
Saturday, Sunday, or any Day observed as a legal holiday by City, the time for performance shall be
extended to the following Business Day.
p. Alternative Dispute Resolution. The parties shall endeavor to resolve any disputes or claims ariSing out
of or relating to this Contract by mediation, which, unless the parties agree otherwise, shall be
conducted under the auspices of the JudiCial Arbitration and Mediation Service (JAMS), San Jose,
Califomia. The intent of the parties is that the mediation shall proceed in advance of litigation; however,
if any party should commence litigation before the conclusion of mediation, such litigation, including
discovery, shall be stayed pending completion of mediation, and by executing this Contract the parties
stipulate to mediation in accordance with Santa Clara County Superior Court Local Rule 1.15 or Rule 2-
3(b) of the ADR Local Rules of the U.S. District Court for the Northern District of California, as such
rules may be amended from time to time. The parties shall share the cost of the mediation, including
the mediator's fee, equally. Any written agreement reached in mediation shall be enforceable pursuant
to California Code of Civil Procedure § 664.6, as amended.
q. Venue. Unless the parties mutually agree otherwise, mediation shall take place in San Jose, California.
CITY OF PALO ALTO IFB 133837 PAGE 5 OF Ii
rev. 12100
In the event that litigation is commenced by any party hereunder, the parties agree that such action
shall be vested exclusively in the state courts of California in the County of Santa Clara or in the United
States District Court for the Northern District of California.
r. Recovery of Costs. Each Party shall bear its own costs, including attorney's fees, through the
completion of mediation. If the claim or dispute is not resolved through mediation, or if litigation is
necessary to enforce a settlement reached at mediation pursuant to California Code of Civil Procedure
§ 664.6, as amended, then the prevailing party in any subsequent litigation may recover its reasonable
costs, including attorney's fees, incurred subsequent to conclUSion of the mediation.
s. Flow-down. Contractor agrees to include provisions of this Contract relating to Alternative Dispute
Resolution, Venue. and Recovery of Costs in any subcontracts or major material purchase agreements
which it enters into in connection with this Contract, and to require its subcontractors to include those
provisions in any SUb-contracts or major material purchase agreements, such that any mediation or
litigation of any claim or dispute asserted by a subcontractor or major material supplier will be
consolidated with any related claim or dispute between the Contractor and the City. Should the
Contractor fail to do so, such that the City is required to defend an action brought by a subcontractor or
material supplier inconsistent with the Alternative Dispute and Venue provisions of this Contract,
Contractor shall indemnify City for City's costs of defense, including reasonable attorney's fees.
IN WITNESS WHEREOF, the parties have by their duly apPOinted representatives executed this Contract in the city of
Palo Alto, County of Santa Clara, State of California on the date first stated above.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
Senior Asst. City Attorney
CITY OF PALO ALTO IFB 133837
rev. 12100
DIVERSIFIED UTILlTIY SERVICES, INC.
8y: __________________________________ _
Title: ___________________ _
PAGE 6 OF'
ATTACHMENT B
BID SUMMARY CITY OF PALO ALTO
r Invitation for Bid \133837 ~-
Title: . 2009-2010 Overhead Construction Services I CB 12/08/09 ~
List of Bidders (Company Name) Base Bid Total Alternate #1 Alternate #2 I Alternate #3 Grand Total I i ,
I -
Diversified Utility Services $411.001Hr $187/Hr
Pacheco Utility Line Builders, Inc. $459.001Hr $209/Hr
Michels Power $470/Hr $2051Hr
r--. •
PAR Electncal Contractors $553.39/Hr $273.45IHr
International Line Builders, Inc $6001Hr $3001Hr
.-
i ~
!
i ,
I
~. _ ..
ATTACHMENT C
n
CERTIFICATlON OF NONDISCRIMINATION FORM 410
PROJECT: 2009· 2010 Overhead Construction Services
Certification of Nondiscrimination: As suppliers of goods and/or services to the City of Palo Alto in excess
of $5,000, the firm, contractor or individual(s) listed below certify that: they do not and in the performance of
this contract they will not discriminate in employment of any person because of race, skin color, gender, age,
religion, disability, national origin. ancestry. sexual orientation, housing status. marital status, familial status,
weight or height of such person; and further certify that they ar~ in compliance with all Federal, State and local
directives and executive orders regarding nondiscrimination in employment.
Firm: Diversified utility Services, ,Inc. Date: December 4, 2009
Officer
",