HomeMy WebLinkAbout2004-10-04 City CouncilCity of Palo Alto
C ty Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: PUBLIC WORKS1 2
DATE:OCTOBER 4, 2004 CMR:392:04
SUBJECT:APPROVAL OF AMENDMENT NO. TWO TO EXISTING CONTRACT NO.
C2131552 WITH BLYMYER ENGINEERS, INC. IN THE AMOUNT OF
$93,200 FOR CONSTRUCTION MANAGEMENT AND TECHNICAL
SUPPORT SERVICES, AND ADDITIONAL WORK RELATED TO THE
DESIGN OF AN INTEGRATED FUELING FACILITY AT THE
MUNICIPAL SERVICES CENTER
RECOMMENDATION
Staff recommends that Council:
Approve and authorize the Mayor to execute the attached Amendment No. Two to
Contract C2131552 with Blymyer Engineers, Inc. (Attachment A) to increase the
contract amount by $93,200 to a total of $280,020; to amend the scope of work, and to
increase the term of the contract. This amendment is necessary to:
a.Cover the cost of additional but unforeseen work related to the design of the
Integrated Fueling Facility at the Municipal Services Center ($38,200); and
b.Cover the cost of design and technical support services during the construction
phase (which were not part of the original contract) ($55,000).
Authorize the City Manager or his designee to negotiate and authorize the
performance of additional but unforeseen work which may develop during the project,
including, but not limited to: soils testing, hazardous materials testing, and further
design revisions required as a result of unforeseen site conditions. The total value of
the additional work shall not exceed $9,000.
BACKGROUND
In July 2001, the City Council approved a contract for design services for the design of a new
Integrated Fueling Facility at the Municipal Services Center (MSC). The original scope of
work for this project included the design of a main automotive fueling facility (located inside
the MSC), and a separate, publicly accessible compressed natural gas (CNG) fueling facility
(to be located outside the MSC, on East Bayshore Road). The main facility will include new
underground storage tanks, a CNG compressor station and storage cascade, dispensing
CMR:392:04 Page t of 5
equipment, and associated driveways, fueling islands, canopy, piping, electrical systems, and
leak monitoring systems. This will allow for the storage and dispensing of unleaded
gasoline, diesel, CNG, and an alternative liquid fuel, such as synthetic diesel ("biodiesel") or
ethanol from one integrated facility. This new facility will replace an existing, 35-year old
gasoline and diesel fueling facility that is well beyond the end of its useful life. An existing,
10-year-old CNG compressor station will be replaced as well. The existing CNG compressor
station, while undersized, is still serviceable, and will relocated elsewhere within the City
through a separate project. The separate public CNG fueling facility was to include two
CNG fuel dispensers, a fueling island, control systems, and the piping necessary to connect
the dispensers to the main facility’s CNG storage cascade.
The original RFP and consultant proposals included services for all phases of the project,
including site surveys, environmental assessments, engineering services, bid document
preparation, and ARB support. Construction phase services, such as construction
management and technical support during facility start-up were included as well. Staffchose
not to include the construction phase services in the original contract, but rather to wait until
the design was complete, so the nature and extent of these services could be more accurately
projected. At this time, it is evident that construction management and technical support
services will be required in order to achieve successful completion of the project.
DISCUSSION
Since the original design for this project was completed, there has been a significant decline
in the availability of CNG and propane-fueled light trucks and automobiles. The first
production model CNG-fueled vehicles were introduced in 1996, and our expectation was
that the number and variety of CNG vehicles being produced would increase over
time. Ownership of CNG vehicles increased approximately 15% annually from 1998-2002
(Source: U.S. Department of Energy); however, the variety of vehicles being produced did
not. Since their introduction by the major automotive manufacturers, dedicated CNG fuel
systems have, with few exceptions, only been available on full-size pickups and vans, and
subcompact sedans. Even for those vehicles, applications are limited. This is particularly
true in cases where cargo carrying capacity is important, since CNG fuel storage cylinders are
normally installed in the trunk area of an automobile, or in the bed of a pickup truck. The
majority of CNG vehicles in the City’s fleet are cargo vans and stibcompact sedans.
Although ownership data for the last two years is not yet available, it is evident that the CNG
vehicle market has been in decline for most of that time. This conclusion is supported by the
decline in City purchases of CNG vehicles, as shown in the following table:
CNG Vehicle Purchases 1998-2004
Model Year 2004 2003 2002 2001 2000 1999 1998
Quantity 2 0 2 7 11 11 7Purchased
CMR:392:04 Page 2 of 5
To make matters worse, Ford recently dropped its entire line of CNG-fueled vehicles, and
General Motors has discontinued pr6duction of CNG-fueled vans. Honda still produces the
Civic GX sedan, and General Motors continues to produce CNG-fueled pickup trucks,
although the future availability of these vehicles is far from certain. Propane-fueled light-
duty vehicles are no longer .available from any manufacturer
The automotive industry as a whole has shifted its alternative fuels research and development
efforts from CNG and battery-electric vehicles, to gasoline-electric hybrids and hydrogen
fuel cells. It is posSible that new City fleet vehicles could be converted to CNG fuel by third
party vendors; however, given the City’s poor experience with these conversions in the past,
they would only be considered on a limited, evaluation basis. There are still several CNG-
fueled medium and heavy-duty truck engines available, although the high cost premium (up
to $50,000 per vehicle) for the CNG fuel system installation necessitates purchase assistance
through grants from state and local air quality agencies. The bulk of these incentives are
awarded for the purchase of street sweepers, refuse trucks, and school buses. Grant
applications for these types of vehicles are more competitive than others due to the route-
based nature of those operations, and the attendant high fuel consumption. Given the City’s
small service area, and relatively low annual fuel consumption in operations where CNG
truck engines would be suitable, grant applications for the types of vehicles that comprise the
bulk of the City’s medium and heavy-duty truck fleet (dump trucks, crane trucks, service
trucks, aerial devices, etc.) have little chance of being funded. Since the City does not
operate refuse trucks (except indirectly, through PASCO) or school buses, and only eight
street sweepers, there are few opportunities for purchasing CNG-fueled trucks.
The circumstances described inprevious paragraphs have created a situation where the
number of CNG vehicles in the City’s fleet, and being purchased by the public, will be
decreasing over time. Another factor to consider is that buyers of the Honda Civic GX are
now provided with a home refueling appliance, which means that there will be no need to
Civic owners to refuel at our public CNG facility unless they are traveling beyond the
vehicle’s range,
Given this outlook, it is: clear that the proposed separate public CNG fueling facility is no
longer viable, and will offer little return on the investment. Therefore, it will be removed
from the design. Since the City does not operate any propane vehicles, and will not be able
to purchase any in the immediate future, all propane dispensing equipment will be removed
from the design as well. Removing these items from the project design will not affect our
ability to construct them at a later date if the availability of CNG and propane vehicles
happens to improve. These changes will reduce the cost of this project by approximately
$250,000. The design will be revised to reflect these changes, after which the project will be
ready to bid for construction.
Even without a separate public CNG fueling facility, public access to CNG fuel will be
assured. Commercial transaction capability will be added to the CNG dispensers at the new
CMR:392:04 Page 3 of 5
main fueling facility. In addition, a security policy that allows limited access to the MSC by
private CNG vehicle owners is currently under development, ..........
Regardless of the current state ofthe CNG vehicle market, it is imperative that we proceed
with the coflstruction of our new main fueling facility..The City’s fleet includes more than
570 motorized vehicles, 70 of which are CNG-fueled. We are also providing CNG fuel to
Palo Alto Unified School District (six buses), Mountain View-Whisman School District (four
buses - permit pending), and PASCO (four refuse trucks - permit pending). We are
anticipating award of a grant that will help fund the purchase of a CNG-fueled street
sweeper, and despite the bleak outlook for the light-duty CNG vehicle market, we will
continue to look for opportunities to add other CNG vehicles to the City’s fleet wherever
possible.
Consultant Services Description ......
The following additional services are included in this contract amendment:
Construction inspection coordination- observe the installed work for conformance
with the plans and specifications, and assist City staff in final permit cl0se-out with
the contractor.
Provide technical support during facility startup and testing~
Assist City staff in preparing necessary operation and maintenance manuals and
developing a maintenance program for the new facility.
Remove the separate public CNG fueling facility from the design; add commercial
transaction capability to the main fueling facility (to allow public fueling); evaluate
the impact of these changes on other areas of the design, and revise the drawing set
and specifications accordingly.
Remove all propane fueling equipment from the design; evaluate the impact of this
change on other areas of the design, and revise the drawing set and specifications
accordingly.
[]Address plan check comments that may result from the Building Division’s review
of the design changes.
Perform an extensive review of all project documents to insure compliance with all
currently applicable codes and regulations. This is necessary given the length of
time since project commencement.
[]Provide an updated engineer’s construction cost estimate after the design revisions
are complete.
CMR:392:04 Page 4 of 5
Staff has negotiated the cost of these services with the consultant and has limited the scope of
work for additional services to what is essential. The term of the contract will be extended so
that it expires coincident with the expiration of the warranty period for the completed facility.
RESOURCE IMPACT
Funds for this contract are available in Capital Improvement Project VR-01001 and GS-
000 ! 1.
POLICY IMPLICATIONS
This project will further the implementation of the Comprehensive Plan as follows:
Policy N-26 - (Support regional, state, and federal programs that improve air quality in the
Bay Area).
Program N-40 - (Expand the use of alternative fuels for City vehicles and establish a
program to encourage expanded use of such fuels in private vehicles) of the Comprehensive
Plan.
ENVIRONMENTAL REVIEW
The Planning Department has determined that the environmental review for this project can
be completed at the staff level, and that an Environmental Impact Report (EIR) will not be
required. The proposed design revisions will not affect the environmental impact of the
facility. Staff will obtain appropriate California Environmental Quality Act (CEQA)
clearance prior to the commencement of construction.
ATTACHMENTS
Attachment A: Amendment No. Two
Attachment B" Revised Fee Schedule
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
KEITH LAHAIE
GLENN S. ROBERTS
Director of Public Works
ssistant City Maffager
CMR:392:04 Page 5 of 5
ATTACHMENT A :
AMENDMENT NO. TWO TO AGREEMENT NO. C2131552
BETWEEN THE CITY OF PALO ALTO AND
BLYMYERENGINEERS, INC.
This Amendment No.Two to Agreement No. .C2131552
("Agreement") is entered into , by and between the
CITY OF PALO ALTO ("CITY"),and BLYMYER ENGINEERS, INC., a
California corporation, located at 1829 Clement Avenue, Alameda,
California 93501 ("CONTRACTOR").
RE C I TAL S:
WHEREAS, the Agreement was entered into between the
parties for the provision of .design and engineering of an
integrated fueling facility and of a separate publicly accessible
compressed natural gas ("CNG") rue! dispensing facility; and
WHEREAS, the parties desire to amend the contract to add
design services necessary to delete the separate public access CNG
facility and propane fueling equipment from the Project and to
incorporate a public access CNG dispenser into the integrated
fueling facility, ~to add design and technica! support services
during the construction phase of the integrated fueling facility,
to increase the amount of compensation for Basic Services by Ninety
Three Thousand Two Hundred Dollars ($93,200), and to extend the
term of the contract.
NOW, THEREFORE, in consideration of the covenants, terms,
conditions, and provisions of this Amendment, the parties agree:
SECTION I.. Section 1 entitled "TERM" is hereby amended
to read as follows:
i.I This Contract will commence on the date
of its execution by CITY, and will terminate
.upon the expiration of the Project
construction warranty period following
construction and acceptance of the Project by
CITY, unless this Contract is earlier
terminated by CITY.Upon the receipt of
CITY’s notice to proceed, CONSULTANT will
commence work on the initial and subsequent
Project tasks in accordance with the time
schedule set forth in Exhibit "A-2" to this
Amendment. Time is of the essence of this
Contract. In the event that the Project is
not completed within the time required through
any faul< of CONSULTANT, CITY’s city manager
will have the option of extending the time
040929 sm 0100293
schedule for any period of time. This
provision will not preclude the recovery of
damages for delay caused by CONSULTANT.
SECTION 2.Section 5 entitled
hereby amended to read as follows:
"COMPENSATION" is
SECTION 5. COMPENSATION
5.1 CITY will compensate CONSULTANT for the
following services and work:
5.1.1 In consideration of the full
performance of the Basic Services as set forth
in Exhibit A to the Agreement, and as amended
by Exhibit A-I to Amendment No.l and further
amended by Exhibit A-2 to this Amendment No.2,
CITY will pay CONSULTANT a lump sum fee of Two
Hundred Sixty Thousand One Hundred Dollars
($260,100). This sum shall constitute ful!
payment for all services and expenses provided
and expenses necessary for CONSULTANT to
provide the Basic Services as amended.
5.1.2 In consideration of the full
performance of the Services described in
Change Order No.l and Change Order No. 2,
("Change Order Services")CITY wil! pay
CONSULTANT a sum not to exceed Nineteen
Thousand Nine Hundred Twenty Dollars
($19,920.00) .
5.1.3 Total compensation for all authorized
Additional Services shall not exceed Nine
Thousand Dollars ($9,000.00). CITY’s project
manager shal! not authorize and~ CONSULTANT
shall not perform any Additional Services that
would result in a cost exceeding ’such amount.
CITY and CONSULTANT shall agree to the scope,
cost and schedule for performance of the
Additiona! Services in writing prior to
CONSULTANT commencing performance of such
Additional Services.
5.1.4 Total Compensation payable under this
Contract for the Basic Services (as amended),
Change Order Services and Additional Services
shall not exceed Two Hundred Eighty-Nine
Thousand Twenty Dollars ($289,020).
5.2 The schedule of payments will be as
040929 sm 0100293
follows:
5.2.1. Payment of the Basic Services (as
amended) will be made in monthly progress
payments in proportion to the quantum of
services performed, or in accordance with any
other schedule of payment mutually agreed
upon by the parties, as set forth in Exhibit
"B", .or within thirty (30) days of
submission, in triplicate, of such requests
if a schedule of payment is not specified.
CONSULTANT expressly agrees that it can
perform each item described in Exhibit B-2
for the revised fee amount for that item set
forth in Exhibit B-2.
5.2.2 Payment for the Additional Services
will be made in monthly progress payments for
services rendered, within thirty (30) days of
submission, in triplicate, of such requests.
5.2.3 No deductions will be made from
CONSULTANT’s compensation on account of
penalties, liquidated damages, or other sums
withheld by CITY from paL~ments to general
contractors.
SECTION 3. The scope of services and project schedule
contained in Exhibit A to the Agreement and amended by Exhibit A-I
to Amendment No. One, is further amended to include the services
~nd revised schedule set forth in Exhibit "A-2" attached to and
made a part of this Amendment No. 2
SECTION 4.Exhibit "B-I" entitled "Revised Contract
Fee Schedule" is replaced in its entirety and amended to read as
set forth in Exhibit "B-2" entitled "Second Revised Contract Fee
Schedule", attached to and made a part of this Amendment No. Two.
//
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3
SECTION 5. Except as herein modified, all other
provisions of the Agreement, including any exhibits and subsequent
amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have by their duly
authorized representatives executed this Amendment on the date
first above written.
ATTEST:CITY OF PALO ALTO
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
APPROVED:
Assistant City Manager
Director of Administrative
Services
Director of Public Works
Risk Manager
Attachments:
EXHIBIT "A-2":
EXHIBIT "B-2" :
Mayor
BLYMYER ENGINEERS, INC., a
California corporation
By:
Name:
Title:
By:
Name:
Title:
Taxpayer Identification No.
(Compliance with Corp. Code § 313 is
required if the entity on whose behalf
this contract is signed is a corporation.
In the alternative, a certified corporate
resolution attesting to the signatory
authority of the individuals signing in
their respective capacities is acceptable)
Amendment No. Two Scope of Services and Time
Line
Second Revised Contract Fee Schedule
040929 srn 0100293
CERTI~iCATE OF ACKNOWLEDGMENT
(Civi! Code § 1189)
STATE OF
COUNTY OF
)
)
)
On
notary public in and for
, before me, the undersigned, a
said County, personally appeared
personally known to me (or proved to me on the basis of
satisfactoryevidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument, and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature of Notary Public
040929 sm 0100293
CERTTFICATE OF ACKNOWLEDGMENT
Civil Code § 1189)
STATE OF
COUNTY OF
)
)
)
, on
notary public in and for
, before me, the undersigned, a
said County, ~ personally appeared
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument, and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature of Notary Public
040929 san 0100293
Exhibit "A-2"
CONTRACT C131552
SCOPE OF SERVICES
PART I:Work to be performed under Amendment No. Two to Contract
C131552:
Perform design changes necessitated by a change in project scope, to include:
Remove the separate public compressed natural gas (CNG) fueling facility
from the design; add commercial transaction capability to the main fueling
facility (to allow public fueling); evaluate the impact of these changes on other
areas of the design, and revise the drawing set and specifications accordingly.
Remove all propane fueling equipment from the design; evaluate the impact of
this change on other areas of the design, and revise the drawing set and
specifications accordingly.
o Address plan check comments that may result from the Building Division’s
review of the design changes and revise plans and Specifications accordingly.
Perform an extensive review of all project documents to insure compliance
with all currently applicable codes and regulations. This is necessary given the
length of time since project commencement.
°Provide an updated engineer’s construction cost estimate after the design
revisions are complete.
Provide Technical Support Services, which will include:
Construction Inspection Coordination
Observe the installed work for conformance with the plans and specifications,
and assist City staff in final permit close-out with the contractor. This task will
include weekly site visits for the duration of the construction phase (up to 12)
and shall include travel time and any travel-related costs.
Provide technical support during the startup and testing phase. This task will
include up to two site visits and shall include travel time and any travel-related
costs..
°Assist City staff in preparing necessary operation and maintenance manuals
and deve!oping a maintenance program for the new facility.
Contract C131552 (Amendment #2) - Scope of Services - Page 1 of 3
Remaining Work from the original Contract Scope of Services,:
#8 - Construction Mana_~ement Services
This task has not yet been completed and is described in the original scope of
work (Exhibit A to the Agreement).
#9 - CEOA Initial Study and Negative Declaration
This task has not yet been completed and is described in the. original scope of work
(Exhibit A to the Agreement)
PART II: Project Schedule
Work on the design changes described in section I above will commence within 10 days
of execution of this Amendment No. Two. All of the design changes and code review
will be completed, and all deliverables submitted, within 60 days of the commencement
of work. The Technical Support Services will commence as soon as construction begins.
The scheduling of these tasks will be subject to the construction schedule, and the
progression of that work. The City’s project manager will furnish a copy of the
construction schedule to Blymyer as soon as it is available.
PART III: Deliverables
Blymyer Engineering will furnish the following items in accordance with the .schedule
noted in Part II above:
o
Ten sets of 24" X 36" plans and specifications at 100% design completion.
One set of specifications, which will reflect the design revisions. The
specification documents will include General Conditions and Technical
Specifications, and will be in CSI format. The specification documents will be
submitted electronically, in a Microsoft® Word 2000 compatible format.
The complete plan set will be submitted electronically, in AutoCAD® 2002 or
2004 format.
Contract C131552 (Amendment #2) - Scope of Services-Page 2 of 3
PART IV: Summary of Work completed on this Contract to date:
Contract Amendment No. One ($18, 000)
This contract amendment was initiated to cover additional and unforeseen costs related to
the design and permitting of the public CNG fueling facility. All work was completed as
of July 31, 2003.
Change Order #2 ($11,800)
This change order was issued to cover the cost of additional engineering design related to
the electrical supply for the entire fueling facility. Funds were encumbered from the
contingency to cover the cost of these services. All work was completed as of June 30,
,00~.
Change Order #1 ($8.120)
During the course of the design work, it was determined that previous soils studies
completed for the MSC site were inadequate; meaning that a geotechnical survey specific
to the location of the fueling facility needed to be conducted. Funds were encumbered
fi:om the contract contingency to cover the cost of this service. All work was completed
as of May 31, 2002.
Original Contract Scope ole Services
The origina! contract scope of services included the design of an integrated (gasoline,
diesel, biodiesel, CNG and propane) automotive fueling facility, and a separate public
CNG fueling facility. The design, engineering and post-bid work for the integrated
fueling facility was divided into eight core tasks. The same work for the public CNG
facility was divided into 11 core tasks. All work on the public CNG facility has been
completed. The tasks for Construction Management Services and environmental
assistance remain to be completed for the integrated fueling facility.
Contract C 131552 (Amendment #2) - Scope of Services - Page 3 of 3
Exhibit "B-2"
Second Revised Contract Fee Schedule
Contract C131552
Table 1 - Integrated Fueling Facility
Item Description Original Fee Contract Contract Revised Fee
Amendment , Amendment
#1 #2
!$117,750 $2,000 $0 $119,750
2 $12,150 $0 $0 $12,150
3 $1,900 $0 $0 $1,900
4 ’$900 $2,600 $0 $3,500
5 $0 $0 $24,800 $24,800
6 $0 $0 $13,400 $13,400
Core Tasks
Construction
Management
Environmental
Assessment Support
ARB Support
Redesign based on
change in project scope
Perform an extensive
review of all project
documents to insure
compliance with all
currently applicable
codes and regulations1
Technical Support during
Construction and Facility
Startup
7 $0 $0 $55,000 $55,000
Fee Total $132,700 $4,600 $93,200 $230,500
Table 2 - Public CNG Facility
Item Description Original Fee Contract Contract Revised Fee
Amendment Amendment
#1 #2
1 Core Tasks $16,200 $13,400 $0 $29,600
Fee Total $16,200 $13,400 $0 $29,600
Table 3 - Contract Summary
Item Description Original Fee Contract Amendment Revised Fee
or C/O Amount
Integrated Fueling Facility $132,700 $97,800 $230,500
Public CNG Facility $16,200 $13,400 $29,600 -
Soils Study $8,120 $8,120
Electrical Design $11,800 $11,800
$148,900 $131,120 $280,020
Table 1
Table 2
C/O #1
C/O #2
Fee Total
Notes:
1.This is necessary given the time that has passed since the original project design was completed.