Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Staff Report 304-10
TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: AUGUST 2, 2010 CMR:304:10 REPORT TYPE: CONSENT SUBJECT: Approval of a Contract with Peterson Power Systems in a Total Amount not to Exceed $201,853 for the Overhaul of a Caterpillar Model 3412e Diesel Engine and the Installation of a Required Best Available Control Technology (BACT) Diesel Emissions Retrofit Device RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or his designee to execute a contract with Peterson Power Systems not to exceed $183,503, and $18,350 for additional services for the complete overhaul of a Caterpillar Model 3412E engine and the installation of a diesel particulate filter system (DPF) that will reduce the engine's particulate matter emissions in accordance with more stringent Bay Area Air Quality Management District (BAAQMD) regulations that will become effective on January 1,2013. DISCUSSION The City of Palo Alto's refuse disposal facility is owned and operated by the City of Palo Alto. The facility includes an active municipal solid waste landfill, an active landfill gas collection system, a landfill gas control system, and compo sting operations. A primary piece of equipment used in the composting operations is a 2001 Morbark Model 5600 horizontal wood grinder that is equipped with a Caterpillc;rr Model 3412E diesel engine. The City of Palo Alto took delivery of the grinder on March 15, 2002. The original purchase price was $354,761. The grinder is used to reduce wood material down to 'a compostable debris mixture. The grinder has the capacity and power to process whole trees, stumps, logs, lumber, and green waste. The grinder has been operated under severe service conditions for a total of 8,385 hours. Due to its age and condition, the Caterpillar engille that powers the grinder is in need of overhaul. The overhaul includes the removal, transportation and re-installation of the engine. All internal and external engine components will be machined, repaired or replaced so that the engine is restored to original factory specifications for performance and reliability. In addition, the power take-off unit will be repaired, and the clutches replaced. The Caterpillar 3412E is a very large (860 horsepower) industrial engine, which accounts for the relatively high cost of this overhaul. Repair of ihis equipment is necessary to ensure the continued viability of the compost operation in both short and long term scenarios. Given that the compost function is currently scheduled to CMR:304:1O Page 1 of3 continue until landfill closure, the repairs will be the most cost effective solution as further discussed in the following "Alternatives" section. Should a policy decision be made to continue composting after landfill closure, the cost of these repairs will be even further cost effective. Scope of Work The scope of work consists of three parts. The first part involves t4e engine overhaul and is priced at $91,523. The second part consists of optional repairs in the total amount of $56,202. The nece~sity for those repairs will not be known until the engine is reIlloved and this will not be performed until authorized by the City's Equipment Management. The third part of the scope is the installation of a Best Available Control Technology (BACT) diesel particulate filter (DPF) as required by the Bay Area Air Quality Man~gement District (BAAQMD). The BAAQMD was established in 1955 to regulate sources of stationary air pollution in the nine counties surrounding the San Francisco Bay. BAAQMD regulations require a reduction in the particulate matter (PM) emissions from the Caterpillar Model 3412E diesel engine by January 1,2013. The installation of a DPF system will reduce the PM emissions as required by the more stringent BAAQMD standards. Since this requirement does not go into effect until January 1,2013, this portion of the work will only be authorized if the Council directs the composting operation to continue beyond December 31, 2012. Bid Process A Request for Quotation (RFQ) for engine overhaul service and installation of a diesel emissions retrofit device, also known as diesel particulate filter, was sent to three vendors on May 12,2010. Bids were received from two qualified vendors on June 1, 2010 as listed on the attached bid summary (Attachment B). Only two bids were received. Peterson Power's bid was $183,503 (fot items A, B, and C). Pape Machinery's bid was $175,172. The bid submitted by Pape Machinery did not include item C (cost to install a diesel particulate filter), and thus is not responsive. Alternatives Public Works Operations and Equipment Management discussed the options for the grinder based on current and near-term needs, and concluded that overhauling the grinder's Caterpillar 3412E engine was the least expensive method to ensure continuous operation of the composting operation until the anticipated closure 'in 2012. The alternatives that were investigated were replacing the existing engine with a new engine, pwchasing a used wood grinder, leasing a new grinder, and subcontracting wood grinding services. The cost of a new replacement engine would be $35,326 higher than the cost to rebuild the current engine and the cost of purchasing a used wood grinder would be approximately $250,000. The cost of leasing a new Morbark grinder would be $312,000 over the next two years. The cost of contract grinding services for the same two-year period would be $792,000. If the existing engine is rebuilt, no additional permitting would be required. The prOCess required to permit a new engine, or to purchase or lease another machine and permit it, would generate additional costs for contract grinding services. It could take three to six months to complete this process; during which time a contract grinder would need to be employed at a cost of $30,000 per month. Staff has reviewed all bids submitted and recommends that the bid submitted by Peterson Power Systems be accepted and that Peterson Power Systems be declared the lowest responsible bidder. CMR:304:10 Page 2 of3 Staff has checked references supplied by the. vendor for previous contracts and has found no significant complaints. RESOURCE IMPACT Funds have been budgeted for this purchase order in Vehicle Replacement Fund Capital Improvement Project VR-09000. \ POLICY IMPLICATIONS Authorization of the contract does not represent any change to the existing policy. , ENVIRONMENTAL REVIEW This work is exempt from the Comprehensive Environmental Quality Act (CEQA) under Class 1 categorical exemption, Article 19, Section 15301. This work involves maintenance of existing equipment and involves no expansion of the existing use. ATTACHMENTS Attachment A: Bid Summary Attachment B: Contract PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: CMR:304:10 JOHN MORAN GLENN S. ROijERTS Director of Public Works Page 3 of3 RFQ136458 BID SUMMARY A: Base Bid 1. 1 LT 2. 1 LT 3. LT 4. 1 LT 5. 1 LT 6. 1 LT 7. 1 LT Remove, transport, overhaul and reinstall Caterpillar 3412E engine as I $91,253.00 described in Part I. ScoDe of Work: $108,885.00 1 Ootion 2: Cost to re~lace cVI~nder head: (if necess~~): I Option 3: Cost to replace engine crankshaft (if necessary): I Option 4: Cost to replace radiator (if necessary): I Option 5: Cost to replace turbocharger cooler (if necessary): Cost to install a Diesel Particulate Filter System: Peterson offers a: Johnson Matthey Mod. CRT5-H-EIEO PAPE -"No Bid" on this item. Sub Total: Grand Total: $5,480.00 I $3,210.00 $8,406.00 I $11,866.00 $4,884.00 $16,375.00 $1,717.00 $2,059.00 $147.455.00 $175.172 $36,048.00 I $0.00 $183.503.00 $175.172 ~ > ATTACHMENT B CITY OF PALO ALto CONTRACT NO.: Cll136458 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the day of July, 2010, by and between the CITY OF PALO ALTO~ • California Charter~d Municipal Corporation ("CITY"), and PETERSON . POWER SYSTEMS, a corpOration in the State of California, with offices located at 2828 Teagarden Street, San Leandro, CA 94577, Telephone Number: 510-895-8400 ("CONTRACTOR"). In consideration of their mutual covenants, the parties hereto agree as follows: 1. SERVICES. CONTRACTOR shall provide or furnish the services ("Services'') descnbed in the Scope of Services, attached as Exhibit A. 2. EXHIBITS. The fonowing exhibits are attached to. and made a part of this Agreement: 181 "A" -Scope of Services 181 "a" -Schedule of Performance [8t "Cn -Compensation 181 "D" -Insurance Requirements B "En -Performance and/or Payment Bond (not required for this project) "P" -Liquidated Damages (Not applicable to 1his project) CONTRACT IS NOT COMPLETE UNLESS ALLEXHlBITSARE AITACOED. 3. TERM. The term of this Agreement shall be from the date of its full execution through December 31, 2012 or the completion of the services in accordance with the Schedule of Performance attached as Exhibit "a", subject to the provisions of Section Q and V of the General Terms and Conditions • . 4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attached as Exhibit B. Time is of the essence in this Agreement. 5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not to exceed coPIpenSation for the full performance of the Services and reimbursable expenses, if any: The total maximum lump sum compensation of dollars ($ );OR Li The sum of dollars ($ ) per hour, not to exceed a total maximum compensation amount of dollars ($ ); OR Rl A sum calculated in accordance with the fee schedule set forth in Exlnbit C, not to exceed a total maximum compensation amount of one hundred eighty-three thousand five hundred three dollars (5183,503.00). .. CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shan be at no cost to CITY. The City has set aside the sum of eigbteen thousand three hundred fifty dollars ($18,350.00) for Additional Services. CONTRACTOR shall provide Additional Services only by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the CITY~s request, shall submit a detailed written proposal 1 Rev. December 1, 2009 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposa1s\RFQ\RFQ136458 CatapiUar 3412E Engine OverbauOContract CII1364S8 PETERSON POWER SYSTEMS.doe CITY OF PALO ALTO CONTRACT NO.: CII136458 including a description of the scope of services, schedule, level of effort, and CONTRACTOR's proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. 6. COMPENSATION DURING ADDITIONAL TERMS. D CONTRACTOR'S compensation rates for each additional term shall be the same as the original term; OR D CONTRACTOR's compensation rates shall be adjusted effective on the commencement of each Additional Term. The lump sum compensation amount, hourly rates, or fees, whichever is applicable as set forth in section 5 above, shall be adjusted by a percentage equal to ~e change in the Consumer Price Index for Urban Wage Earners and Clerical Workers' for the San Francisco-Oakland-San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable Additional Term, which shall be compared with the CPI published most immediately preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONTRACTOR's compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding term. Any adjustment to CONTRACTOR's compensation rates shall be reflected in a written amendment to this Agreement. 7. INVOICING. Send all invoices to the CITY, Attention: Project Manager. The Project Manager is: John Moran, Public Works Department, Equipment Management Division, at 3201 East Bayshore Road,CA 94303, Telephone: 650-496-6935. Invoices shall be submitted in arrears for Services performed. Invoices shall not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt. GENERAL TERMS AND CONDITIONS A. AC;:CEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections 1 through 6 above, these general terms and conditions and the attached exhibits. B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled "SERVICES," and that every individual charged with the performance of the services under this Agreement has sufficient skill and experience and is duly licensed or certified, to the extent such licensing or certification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR's representations regarding its skills, knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, including all federal, state, and local operation and safety regulations. C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement. 2 Rev. December 1, 2009 \\CC-TERRA\jarreol\PURCHDOC\sAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract Cl 1 136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: Cl1136458 D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR's business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR's performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR's performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR's request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. H. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided) by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. I. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR's work is completed in a satisfactory manner and complies with the provisions of this Agreement. J. CITY'S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager. K. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of fmal payment, CONTRACTOR's records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. L. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. M. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described in Exhibit D. Insurance must be provided by companies with a Best's Key rating of A-:VII or higher and which are otherwise acceptable to the City'S Risk Manager. The City's Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a 3 Rev. December I, 2009 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract CI 1 136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: CI I 136458 policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the City's Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to CITY's Risk Manager, together with the req\1ired endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the CITY's Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR's liability or obligation to indemnify CITY under this Agreement. N. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section M relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fmes and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney's fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. The CONTRACTOR's obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that the CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of the CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Contract. O. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR certifies 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. CONTRACTOR acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. P. WORKERS' COMPENSATION. CONTRACTOR, 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. Q. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days' prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY, CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination if for cause, CITY may deduct from such payment the amount of actual damage, if any, sustained by CITY due to Contractor's failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. 4 Rev. December 1, 2009 \\CC-TERRA\jarreo!\PURCHDOC\sAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract Cll136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: Cl1136458 R. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of the CITY. No amendments, changes or variations of any kind are authorized without the written consent ofthe CITY. S. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR 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 this Contract. CONTRACTOR further covenants that, in the perfonnance of this Contract, it will not employ any person having such an interest. CONTRACTOR certifies that no City Officer, employee, or authorized representative has any financial interest in the business of CONTRACTOR and that no person associated with contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Contract. CONTRACTOR agrees to advise CITY if any conflict arises. T. GOVERNING LAW. This contract shall be governed and interpreted by the laws of the State of California. U. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not ¥feet the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. V. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following 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 shall take precedence in the event of a contlict with any other covenant, term, condition, or provision of this Contract. W. ENVIRONMENTALLY PREFERRED PURCHASING. CONTRACTOR shall comply with the City's Environmentally Preferred Purchasing policies which are available at the City's Purchasing Department which are incorporated by reference and may be amended from time to , time. X. AUTHORITY. The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Y. CONTRACT TERMS: All unchecked boxes do not apply to this Contract. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO City Manager or Designee (Required on contracts $85,000 and over) Name ___ ----. ..... ' =I:-the_' ,.....w ..... G.,.-e_o_rg--",-' _e __ General Manager Title ___ I"'9~~~lUu~stl.l-lrilOaHI EI;;I, n-J!,gl+linI-HQ~Siit1'e~'r~v.il€ce-e- Telephone: 5'/(> -8"f<;""~2c/~O Sr. Assistant City Attorney 5 Rev, December 1, 2009 \\CC-TERRA \jarreol\PURCHDOC\SAP Bids and Proposals\RFQ\RFQI36458 Catapillar 3412E Engine Overhaul\Contcact CI 1 136458 PETERSON POWER SYSTEMS,doc r CITY OF PALO ALTO CONTRACT NO.: Cll136458 EXHIBIT A SCOPE OF SERVICES Caterpillar 3412E Engine Overhaul The Contractor shall remove, transport, rebuild and reinstall the CAT Model 3412 Engine, Serial No. BDT00505 Modification No. 184-5369 Performance Spec 188-8709 ADV 860 HP on the 2001 Morbark grinder Model 5600 Serial No. 169- 1096 located at the City of Palo Alto landfill facility. All internal and external components will be repaired, overhauled, or replaced as required to return the function, condition, performance, and appearance of the engine to O.E.M specifications. The Contractor shall provide a warranty for the engine repair (parts and labor) for a period of no less than two years or 4,000 hours from the date of completion. The engine bell housing and the two clutch bell housings will be repaired or replaced. The clutch assembly will be replaced. The cooling system radiator and the turbocharger system after-cooler will be disassembled, cleaned, and repaired. Note: The engine has been operated a total of 8,381 hours. The price shown in Task #1 (A: Base Bid Item 1) shall represent the cost to perform all of the repair work described above, including travel, machining, fabrication, welding, core charges, shipping, shop supplies, environmental fees, service charges, freight, taxes, and any other charges that will appear on the final invoice. The final invoice will not exceed the cost quoted. All work hereunder shall begin on the date specified on the City's Notice to Proceed, and shall be completed within thirty (30) calendar days after the commencement date specified in the City's Notice to Proceed, with the exception of the Diesel Particulate Filter installation. Items as 02 through 06 on B: Optional Add Bid Items schedule are contingency items that mayor may not be necessary. The need for these items may not become apparent until teardown. If any of these items do become necessary, the City's project manager or his designee will be contacted for authorization of the additional repairs. Item 07 listed on C: Optional Add Bid Item schedule, Diesel Particulate Filter (OPF) is a contingency item that City representatives mayor may not determine will be installed. The Diesel Particulate Filter (OPF) system quoted that will reduce engine weighted particulate matter pollution (soot) to less than .25 grams per brake horsepower hour (glbhp-hr) in accordance with BAAQMD standards effective 01/01/13. The DPF system will be warranted for 5 years (parts and labor). If City representatives determines that the DPF system will be installed, the installation will occur subsequent to the engine overhaul. The Contractor shall perform data log monitoring to ensure that the proposed DPF device is appropriate for the engine application. Note: Current standards require particulate matter pollution to be less than .54 grams glbhp-hr for this engine. 6 Rev. December 1, 2009 \\CC-TERRA\jarreol\PURCHDOC\sAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract Cll136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: Cll136458 Additional Services, if any, shall be authorized in accordance with and subject to the provisions of this contract based on the hourly rate listed in Exhibit "C". Contractor shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". 7 Rev. December 1,2009 \\CC-TERRA\jarreo1\PURCHDOC\sAP Bids and Proposa1s\RFQ\RFQ136458 Catapillar 3412E Engine Overhau1\Contract C11136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: Cll136458 EXHIBITB SCHEDULE OF PERFORMANCE CONTRACTOR shall perform the Services so as to complete each task within the time period specified below. The time to complete each task may be increased or decreased by mutual written agreement of the project managers for CONTRACTOR and CITY so long as all work is completed within the term of the Agreement. Upon request CONTRACTOR shall provide a detailed schedule of work consistent with the schedule below. Task 1. 2. 3. Contractor to remove, transport, overhaul and reinstall Caterpillar 3412E engine per the specifications and requirements provided in the scope of work: Optional Add Bid Items 02 through 06 if necessary: Optional Add Bid Item -Diesel Particulate Filter System: 8 Complete _x_Days or Weeks FromNTP 30 60 by December 31, 2012 Rev. December 1,2009 \\CC-TERRA\jarreol\PURCHDOC\sAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract Cl 1 136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: CII136458 EXHIBITC SCHEDULE OF FEES CONTRACTOR shall perform the tasks as described and budgeted below. Any services provided or hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to City. DESCRIPTION OF TASK NOT TO EXCEED COMPENSATION PER TASK INCLUDING REIMBURSABLES Task 1 $91,253.00 (Remove, transport, overhaul and reinstall Caterpillar 3412E engine per the specifications and requirements provided in the scope of work -RFQ item #1 -Sch A) Task 2* $35,715.00 (provide and replace Opti«malltem #1: Engine Block (if necessary) RFQ item #1 -Sch B, includes labor, parts, and sales tax) Task 3* $5,480.00 (Provide and replace Optional Add Item #2: Cylinder Heads (if necessary) RFQ item #2 -Sch B, includes labor, parts, and sales tax) Task 4* $8,406.00 (provide and replace Optional Add Item #3: Engine Crankshaft (if necessary) RFQ item #3 -Sch B, includes labor, parts, and sales tax) Task 5* $4,884.00 (Provide and replace Optional Add Item #4: Radiator (if necessary) RFQ item #4 -Sch B, includes labor, parts, and sales tax) Task 6* $1,717.00 (Provide and replace Optional Add Item #5: Turbocharger Cooler (if necessary) RFQ item #5 -Sch B, includes labor, parts, and sales tax) Task 7* $36,048.00 (provide and install Option Add Item: Diesel Particulate Filter System by Johnson Matthey Model #CRT5-H-EIEO (if necessary) RFQ item #1 -Sch C, includes labor, parts, and sales tax) TOTAL NOT TO EXCEED $183,503.00 *Task 2 through 6 will only be authorized by CITY if during the process of performing Task 1 it is determined that replacement is necessary by CONTRACTOR. Replacement shall be at the quoted prices for labor and parts, plus sales tax as noted. Item 7 is subject to City authorization. The maximum amount of compensation to be paid to Contractor, including both payment for services and reimbursable expenses for all repairs, shall not exceed one hundred eighty-three thousand five hundred three dollars ($183,503.00). 9 Rev. December 1,2009 \\CC-TERRA\jarreo1\PURCHDOC\sAP Bids and Proposa1s\RFQ\RFQ136458 Catapillar 3412E Engine Overhau1\Contract Cll136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: Cll136458 In the event Additional Services are authorized, beyond the tasks identified above, compensation for additional services shall not exceed eighteen thousand three hundred fifty dollars ($18,350.00). The applicable hourly rate (in-shop rate) shall be at one hundred forty-three dollars ($143.00) as quoted. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of this contract. CONTRACTOR shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. 10 Rev. December 1, 2009 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract Cll136458 PETERSON POWER SYSTEMS.doc EXHIBIT D ACORD® CERTIFICATE OF LIABILITY INSURANCE OP 10 2C I DATE (MM/DDIYYYY) ~ PETER-6 03/23/10 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION James C Jenkins Ins Srvc Coned ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE License No. 0545478 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR P.O. Box 5668 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Concord CA 94524 Phone: 925-798-3334 Fax: 925-609-5381 INSURERS AFFORDING COVERAGE NAlC# INSURED INSURER A; National Union Fire Ins Co PA Peterson Holding Company Peterson Tractor Company INSURERB: ACE American Insurance Company Peterson Power Systems, Inc. INSURERC: Peterson Machinery Co. P.O. Box 5258 INSURER 0: San Leandro CA 94577 I INSURERE: COVERAGES THE POLICIES OF INSl!RANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIODINDICATE[). NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECTTO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY MAVE BEEN REDUCED BY PAID CLAIMS. i'r¥R 'NsR[ TYPE OF INSURANCE POLICY NUMBER ~x.I;!CY EFF~~ OATE(MM/DD .!::C?~!?~ EXPI~. DATE MM/DO LIMITS GENERAL LIABILITY EACH OCCURRENCE $1/000,000 -04/01/10 04/01/11 PREMISES (E~~~~nce) B X X COMMERCIAL GENERAL LIABILITY PMI G23860685 003 $1,000,000 J CLAIMS MADE [!] OCCUR MED EXP (Anyone person) $N/A ~ STOP GAP $1,000,000 LIMIT PERSONAL & ADV INJURY $1,000,000 X Excess.of SIR -GENERAL AGGREGATE $ 2 ,000 ,000 $2,000,000 GEN'LAGGREGATE LIMIT APPLIES PER: PRODUCTS -COMP/OP AGG tl POLICY !Xl ~~ n LOC Pol.ieyAgg 5 000,000 AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT I--$1,000,000 B X ANY AUTO ISAH08245101 04/01/10 04/01/11 (Ea accident) c-- ALL OWNED AUTOS BODILY INJURY I--(Par person) $ SCHEDULED AUTOS f-- HIRED AUTOS BODILY INJURY I--(Par accident) $ NON·OWNED AUTOS f-- -PROPERTY DAMAGE $ (Per accident) ... ..... _. . --" . . ... ----_ .... -.. _., .. . ..... .. ". --" ... . ... .. . -----.--.~ ...... ," -... GARAGE LIABIUTY AUTO ONLY -EA ACCIDENT $ R'ANYAUTO OTHER THAN EAACC $' AUTO ONLY: AGG $ EXCESS I UMBRELLA LIABILITY EACH OCCURRENCE . $5,000,000 A !J OCCUR o CLAIMS MADE BE77710210 04/01/10 ·04/01/11 AGGREGATE $5,000,000 $ ~ DEDUCTIBLE $ X RETENTION $10,000 $ WORKERS COMPENSATION XJT~~v"'~I~if's J IU~~' AND EMPLOYERS' LIABIUTY YIN B ANY PROPRIETORIPARTNERlEXECUTITI WLRC44348792 04/01/10 04/01/11 EL EACH ACCIDENT $1,000,000 OFFICER/MEMBER EXCLUDED? EXCLUDING OREGON we (Mandatory in NH) E.!.. DISEASE -EA EMPLOYEE $1,000,000 If yes, describe under E.!.. DISEASE -POLICY LIMIT $1,000,000 SPECIAL PROVISIONS below OTHER DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS 10 day NOC app~ies if cancelled for non-payment of premium. Tile City of Palo Al.to, its Officers, Employees., Agents and Volunteers are named as Additional Insured per the attached endorsement. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBeD POLICIES BE CANCELLED BEFORE THE EXPIRATIO City of Palo Al.to Public Works Engineering PALOA-6 DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL ~ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. Division 285 Hamilton Ave. Palo Alto CA 94301 I ACORD 25 (2009/01) .© 1988·2009 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD ,f " POLICY NUMBER: PMI G23860683 003 ENDORSEMENT NUMBER: •• NAMED INSURED: Peterson Holding Co.; (per policy) COMMERCIAL GENERAL LIABILITY CG 20100704 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS -SCHEDULED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): Location(s) Of Covered' Operations Any owner, Lessee or Contractor whom you have \, Per written contract or agreement. agreed to include as an ~dditional insured under a written contract or agreement. provided such contract was executed prior to the date of loss. , • w •• . .. .... .. ., M. • .... • ........ ~_ M.. ... .. . .... _.. . ~ . .. . .. .... .... , .. . .. -... --.. .... ..... .. .. , .. . .. .. ..... • w •• . .. " .. . . \ . ... '. . .. .. . .... Information reQuired to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section II -Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injurY', "property damage" or "personal and advertising injury" caused, in Whole or in part, by: 1. Your acts or omissions; or 2. The acts or omissions of those acting on your behalf; in the performance of y~ur ongoing operations for the additional insured(s) at the location(s) desig nated above. B. With respect to the insurance afforded to these additional insureds, the following additional exclu sions apply: This insurance does' not apply to "bodily injury" or "property damage" occurring after: 1. All work, including materials, parts or equip ment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or 2. That portion of "your work" out of which the injqry or damage arises has been put to its in tended use by any person or organization other than another contractor or subcontractor en-. gaged in performing operations for a principal as a part of the same project. CG20 10 07 04 © ISO Properties, Inc., 2004 Page 1 of'1 o POLICY NUMBER: PMI G23860685 003 ENDORSEMENT NUMBER: -- COMMERCIAL GENERAL LIABILITY CG 20 37 0704 NAMED INSURED: Peterson Holding Co., (per policy) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS -COMPLETED OPERATIONS This endorsement modifies insurance provided under the following: . COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): Location And Description Of Completed Qperations Any owner, Lessee or Contractor whom' you have Per written contract or agreement. ag~eed to include as an additional insured under a written contract or agreement, provided such con- tract was executed prior to the date of loss. .. . . .. ... " .... , . .... .. .. .~. .-.... . .. . . -.. .. . . . .. .. . .-.... _ .... _. ----,'; ...... : .. ..:: ..... ...;..,~ :..:,... .•.... .. --.. ' .. - -... __ . '. --""-. . . _--... --- Information required to complete this Schedule, if not shown above, will be shown in the Declarations. Section II -Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury" or "property dam age" caused, in whole or in part, by "your work" at the location designated and described in the sched ule Of this endorsement performed for that additional insured and included in the "products-completed operations hazard". CG 20 370704 © ISO Properties, Inc., 2004 Page 1 of 1 o