HomeMy WebLinkAbout2002-10-21 City Council (14)City of P
Manager’s
TO:HONORABLE CITY COUNCIL
FROM:
DATE:
SUBJECT:
CITY MANAGER
OCTOBER 21, 2002
APPROVAL OF CONTRACT
DEPARTMENT: UTILITIES
CMR:396:02
WITH CUPERTINO ELECTRIC,
INCORPORATED IN THE AMOUNT OF $70,000 FOR ELECTRIC
RELIABILITY SERVICES FOR COMMERCIAL UTILITY
CUSTOMERS
RECOMMENDATION
Staff recommends that Council:
Approve and authorize the Mayor to execute the attached contract with Cupertino
Electric, Inc. in the amount of $70,000 for electric reliability services for major
account and small commercial customers.
Authorize the City Manager or his designee to exercise the option to renew the
contract annually for up to two years provided the proposed cost of the renewal
contract does not exceed the Consumer Price Index for all urban consumers (San
Francisco - Oakland - San Jose, CA), the contractor is responsive to the City’s
needs, and the quality of the contractor’s work is acceptable during the first year of
the contract.
DISCUSSION
Contractor Services Description
Electric power quality events can significantly impact critical devices and systems within
major account and small commercial facilities. Major accounts represent commercial ,
institutional, and industrial customers with power demands in excess of 500 KW while
small commercial customers have electrical demands below 500 KW. Elevators, medical
equipment, and computer systems can be negatively impacted during outages, voltage
fluctuations, and power quality events. The electric reliability services performed under
the proposed contract support the City of Palo Alto Utilities (CPAU) Power Quality and
Reliability Program. CPAU provides high quality, high value services to its small
commercial, major accounts and institutional customers through innovative services to
Page 1 of 3
enhance electric service reliability within their facilities and improve customer
satisfaction.
The required contractor expertise will include electric reliability studies, power quality
auditing, project design and review, seminars, technical and economic analysis of
customer system performance, and related technical and specialized services. These
services will complement existing CPAU programs. To the extent electric service
reliability is improved, local business operations will benefit and unnecessary,
unproductive costs due to power problems can be avoided.
Selection Process
Staff sent a Request for Proposal (RFP) to five consulting firms on August 6, 2002.
Firms were given 21 days to respond to the request. Two firms submitted proposals.
Proposals ranged from $3,500 to $12,000 per task from Salas O’Brian and from $3,500 to
$10,000 per task from Cupertino Electric, Inc.
A selection advisory committee consisting of Utilities staff and program managers
reviewed the proposals. The committee carefully reviewed each firm’s qualifications and
submittal in response to the RFP relative to the following criteria: experience serving
major account and small commercial customer facilities with power quality resources
equipment specifications; reliability audits; project design review for reliability; training
and customer technical support; and web-based tools where needed. Staff has extensive
experience working with both firms. After an extensive and detailed review by staff,
Cupertino Electric, Inc. was selected. Staff recommends Cupertino Electric, Inc. as staff
believes they can provide more direct services to CPAU’s customers.
RESOURCE IMPACT
The required funds are included in the Electric Fund Operating Budget.
POLICY IMPLICATIONS
Provision of these services to CPAU’s major and small commercial customers supports
Strategic Plan Objective No.l; Enhance customer satisfaction by delivering reliable
services. It also supports Strategic Plan strategy No.4; Deliver products and services for
competitive markets.
ENVIRONMENTAL REVIEW
These services do not require CEQA assessment.
CMR:379:02 Page 2 of 3
ATTACHMENTS
Attachment A:
Attachment B:
PREPARED BY:
Contract
Evaluation of Consultant Firms
Anthony Enerio(~
Virginia Waik
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
of Utilities
BENEST
City Manager
CMR:379:02 Page 3 of 3
~ CONTRACT NO.
BETWEEN THE CITY OF PALO ALTO AND
CUPERTINO ELECTRIC, INC.
FOR POWER QUALITY AND RELIABILITY CONSULTXNG SERVICES
This Contract No.is entered intoby and between the CITY OF PALO ALTO, a chartered city and a~
municipal corporation of the State of California ("CITY"), and
CUPERTINO ELECTRIC, INC., a Delaware corporation authorized to do
business in California, located at 1132 N. Seventh Street, San
Jose, CA 95112 .("CONTRACTOR").
RECITALS :
WHEREAS, CITY desires certain power quality and
reliability c0nsulting services to be provided on an as needed
basis ("Services"), as more fully described in Exhibit "A"; and
WHEREAS, CITY desires to engage CONTRACTOR, including its
employees, if any, in providing the Services by reason of its
qualifications and experience in performing such Services, and
CONTRACTOR has offered to provide the Services on the terms and in
the manner set forth herein;
NOW, THEREFORE, in consideration of the covenants, terms,
conditions, and provisions of this Contract, the parties agree:
SECTION 1 - TERM
I.i This Contract will commence on the date of its
execution by CITY and shall expire one year from the commencement
date unless extended by mutual agreement of the parties. The city
manager may approve any agreement to extend the contract term for
up to two (2) additional one year periods, so long as, the City
Council has approved in each year’s budget an appropriation of
funds for this Contract, and the maximum compensation does not
exc@ed the amount authorized in section 5.2. below.
1.2 CONTRACTOR shall perform the Services in accordance
with a time schedule to be developed.between the parties on a per
task basis and set forth in a written task assignment (~Service
Order") for that task. Time is of the essence of this Contract.
In the event that the Services are not completed within the Service
Order time schedule on account of CONTRACTOR’s default, CITY’s
project manager will have the option of extending the time schedule
for any period of time. This provision will not preclude the
recovery of damages for delay caused by CONTRACTOR.
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SECTION 2.SCOPE OF WORK; CHANGES & CORRECTIONS
2.1 The general scope of the CONTRACTOR’s Services, is
described in Exhibit "A". CITY and CONTRACTOR shall negotiate for
each particular assignment a Service Order specifying in detail:
(i) the CONTRACTOR’S Services, (2) the schedule of performance,
and, (3) the maximum CONTRACTOR compensation for those Services,
which shall be based on the rates attached hereto as Exhibit "B".
CITY’s project manager shall be authorized to execute each Service
Order. CITY will not be liable for the cost or payment of any
Services, unless CITY, in advance and in an authorized Service
Order, agrees to the amount of compensation attributable to the
Services before CONTRACTOR commences the performance of any such
change in work.
2.2 Where the Services entail the dr~afting and
submission of deliverables, for example, construction plans,
drawings, and specifications, any and all errors, omissions, or
ambiguities in the deliverables, which are discovered by CITY will
be corrected by CONTRACTOR at no cost to CITY, provided CITY gives
notice to CONTRACTOR.
SECTION 3
CONTRACTOR
-QUALIFICATIONS,STATUS, AND DUTIES OF
3.1 CONTRACTOR represents and warrants that it has the
expertise and~ professional qualifications to furnish or cause to be
furnished the Services. CONTRACTOR further represents and warrants
that the project director and every individual charged with the
performance of the Services under this Contract are duly licensed
or certified by the State of California, to the extent such
licensing or certification is required by law to perform the
Services.
3.2 In reliance on the representation and warranty set
forth in Section 3.1, CITY hires CONTRACTOR to perform, and
CONTRACTOR covenants and agrees that it will furnish or cause to be
furnished, the Services.
3.3 CONTRACTOR will assign STEVEN E. SCHUMER as the
project director to have supervisory responsibility for the
performance, progress, and execution of the Services. If
circumstances or conditions subsequent to the execution of this
Contract cause the substitution of the project director for any
reason, the appointment of a substitute project director will be
subject to the prior written approval of the project manager.
3.4 CONTRACTOR represents and warrants that it will:
3.4.1 Procure all permits and licenses, pay all
charges and fees, and give all notices which may be necessary and
incident to the due and lawful prosecution of the Segvices;
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3.4.2 ~ Keep itself fully informed of all existing and
future Federal, State of California, and local laws, ordinances,
regulations, orders, and decrees which may affect those engaged or
employed under this Contract, any materials used in CONTRACTOR’s
performance under this Contract, or the performance of the
Services;
3.4.3 At all times, observe and comply with, and cause
its employees and contractors (and consultants), if any, who are
assigned to the performance of this Contract to observe and comply
with, the laws, ordinances, regulations, orders and decrees
mentioned above; and
3.4.4 Will report immediately to the project manager,
in writing, any discrepancy or inconsistency it discovers in the
laws, ordinances, regulations, orders, and decrees mentioned above
in relation to any plans, drawings, specifications or provisions of
this Contract.
3.5 Any reports, information, data or other material
given to, or prepared or assembled by, CONTRACTOR or its
contractors, if any, under this Contract will become the property
of CITY and will not be made available to any individual or
organization by CONTRACTOR or its contractors, if any, without the
prior written approval of the city manager.
3.6 CONTRACTOR will provide CITY with four (4) copies of
the final report, if any, which may be required under this
Contract, upon completion and acceptance of each report by CITY.
3.7 If CITY requests additional copies of reports,
drawings, specifications or any other material which CONTRACTOR is
required to furnish in limited quantities in the performance of
the Services, CONTRACTOR will provide such additional copies and
CITY will compensate CONTRACTOR for its duplication costs.
3.8 CONTRACTOR will be responsible for employing or
engaging all persons necessary to perform the Services. All
contractors of CONTRACTOR will be deemed to be directly controlled
and supervised by CONTRACTOR, which will be responsible for their
performance. If any employee or contractor of CONTRACTOR fails or
refuses to carry out the provisions of this Contract Or appears to
be incompetent or to act in a disorderly or improper manner, the
employee or contractor will be discharged immediately from further
performance under this Contract on demand of the project manager.
SECTION 4 -DUTIES OF CITY
4.1 CITY will furnish or cause to be furnished the
specified services set forth in Exhibit "A", if any, and such other
information regarding its requirements as may be reasonably
requested by CONTRACTOR.
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4.2 The city manager will represent CITY for all
purposes under this Contract. VIRGINIA WAIK, Marketing Engineer, is
designated as the project manager for the city manager. The
project manager will supervise, the performance, progress, and
execution of the Sgrvices, and will be assisted by JERRY BROWN,
Assistant Project Manager.
4.3 If CITY observes or otherwise becomes aware of any
default in the performance of CONTRACTOR, CITY will use reasonable
efforts to give written notice thereof to CONTRACTOR in a .timely
manner.
SECTION 5 -COMPENSATION.
5.1 CITY shall pay CONTRACTOR a total sum not to exceed
the amount of Seventy Thousand dollars ($70,000) for all
professional services, including any reimbursable expenses,
provided by CONTRACTOR (and its subcontractors) under this
Contract. CONTRACTOR shall submit its itemized billings, in
triplicate, detailing the services provided, hours worked and
expenses incurred in accordance with the hourly fee schedule set
forth in Exhibit "B" and the compensation agreed to in a Service
Order. CITY shall pay the undisputed amounts of such itemized
billings within thirty (30) days of receipt. A Service Order
describing CONTRACTOR’s services and total not to exceed amount for
each task shall be executed according to the procedures set forth
in Exhibit "B" prior to Contractor’s commencement of work on that
task. Any hours worked for which payment would result in a total
exceeding the maximum task compensation in any Service Order shall
be at no cost to CITY. Any 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.
5.2 If this Contract is extended by the parties
pursuant to section i.i, the rates for Services and expenses set
forth in Exhibit "B" as well as the total not to exceed amount of
compensation for Services shall be the previous year’s amounts plus
an amount not to exceed the change in the consumer price Index for
all urban consumers (San Francisco-Oakland-San Jose, CA) or three
(3%) percent,, whichever is lower.
SECTION 6 -AUDITS
6.1 CONTRACTOR will permit CITY to audit, at any
reasonable time during the term of this Contract and for three (3)
years thereafter, CONTRACTOR’s records pertaining to matters
covered by this Contract. CONTRACTOR further agrees to maintain
and retain such records for at least three (3) years after the
expiration or earlier termination of this Contract.
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SECTION 7 -INDEMNITY
7.1 CONTRACTOR agrees to protect, indemnify, defend and
hold harmless CITY, its Council members, officers, employees and
agents from any and all demands, claims, or liability of any
nature, including death or injury to anyperson, property damage or
any other loss, caused by or arising out of CONTRACTOR’s, its
officers’, agents’, subcontractors’ or employees’ negligent acts,
errors, or omissions, or willful misconduct, or conduct for which
applicable law may impose strict liability on CONTRACTOR in the
performance of or failure to perform its Obligations under this
Contract.
SECTION 8 -WAIVERS
8.1 The waiver by either party of any breach or
violation of any covenant, term, condition or provision of this
Contract, or of the provisions of any ordinance or law, will not be
deemed to be a waiver of any other term, covenant, condition,
provisions, ordinance or law, or of any subsequent breach or
violation of the same orof any other term, covenant, condition,
provision, ordinance or law. The subsequent acceptance by either
party of any fee or other money which may become due hereunder will
not be deemed to be a Waiver of any preceding breach or violation
by the other party of any term, covenant, condition or provision of
this Contract or of any applicable law or ordinance.
8.2 No payment, partial payment, acceptance, or partial
acceptance by CITY will operate as a waiver on the part of CITY of
any of its rights under this Contract.
SECTION 9 -INSURANCE
9.1 CONTRACTOR, at its sole cost and expense, will
obtain and maintain, in full force and effect during the term of
this Contract, the insurance coverage described in Exhibit "C"
insuring not only CONTRACTOR and its contractors, if any, but also,
with the exception of workers’ compensation, employer’s liability,
and professional liability insurance, naming CITY as an additional
insured concerning CONTRACTOR’s performance under this Contract.
9.2 All insurance coverage required hereunder will be
provided through carriers with Best’s Key Rating Guide ratings of
A:VII or higher which are admitted to transact insurance business
in the State of California. Any and all contractors of CONTRACTOR
retained to perform Services under this Contract will obtain and
maintain, in full force and effect during the term of this
Contract, identical insurance coverage, naming CITY as an
additional insured under such policies as required above.
9.3 Certificates of such insurance, preferably on the
forms provided by CITY, will be filed with CITY concurrently with
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the execution~of<:this Contract. The certificates will be subject
to the approval of CITY’s risk manager and will contain an
endorsement stating that the insurance is primary coverage and will
not be canceled or altered by the insurer except after filing with
CITY’s city clerk thirty (30) days’ prior written notice of .such
cancellation or alteration, and that the City of Palo Alto is named
as an additional insured except in policies of workers’
compensation, employer’s liability, and professional liability
insurance. Current certificates of such insurance will be kept on
file at all times during the term of this Contract with the city
clerk.
9.4 The procuring of such required policy or policies of
insurance will not be construed to limit CONTRACTOR’s liability
hereunder nor to fulfill the indemnification provisions of this
Contract. Notwithstanding the policy or policies of insurance,
CONTRACTOR will be obligated for the full and total amount of any
damage, injury, or loss caused by or directly arising as a result
of the Services performed under this Contract, including such
damage, injury, or loss arising after the Contract is terminated or
the term has expired.
SECTION i0 -WORKERS’ COMPENSATION
i0.i CONTRACTOR, by executing this Contract, certifies
that it is aware of the provisions of the Labor Code of the State
of California which require every employer to be insured against
liability for workers’ compensation or to undertake self-insurance
in accordance with the provisions of that Code, and certifies that
it will comply with such provisions, as applicable, before
commencing the performance of the Services.
SECTION ii -
SERVICES
TERMINATION OR SUSPENSION OF CONTRACT OR
ii.i The city manager may suspend the performance of the
Services, in whole or in part, or terminate this Contract, with or
without cause, by giving thirty (30~ days’ prior written notice
thereof to CONTRACTOR. Upon receipt of such notice, CONTRACTOR
will immediately discontinue its performance of the Services.
11.2 CONTRACTOR may terminate this Contract or suspend
its Performance of the Services by giving thirty (30) days’ prior
written notice thereof to CITY, but only in the event of a
substantial failure of performance by CITY or in the event CITY
indefinitely withholds or withdraws its request for the initiation
or continuation of the Services to be performed.
11.3 Upon such suspension or termination by CITY,
CONTRACTOR will be paid for the Services actually rendered to CITY
on or before the effective date of suspension or termination;
provided, however, if this Contract is suspended or terminated on
02101~ sdl 0100027 6
account of a default by CONTRACTOR, CITY will be obligated to
compensate CONTRACTOR only for that portion of the Services which
are of direct and immediate benefit to CITY, as such determination
may be made by the city manager acting in the reasonable exercise
of her discretion.
11.4 Upon such suspension or termination, CONTRACTOR will
deliver to the city manager immediately any and all copies of
studies, sketches, drawings, computations, and other data, whether
or nbt completed, prepared by CONTRACTOR or its contractors, if
any, or given to CONTRACTOR or its contractors, if any, in
connection with this Contract. Such materials will become the
property of CITY.
11.5 The failure -of CITY to agree with CONTRACTOR’s
independent findings, conclusions, or recommendations, if the same
are called for under this Contract, on the basis of differences in
matters of judgment, will not be construed as a failure on the part
of CONTRACTOR to fulfill its obligations under this Contract.
SECTION 12 -ASSIGNMENT
12.1 This Contract is for the personal services of
CONTRACTOR, therefore, CONTRACTOR will not assign, transfer,
convey, or otherwise dispose of this Contract or any right, title
or interest in or to the same or any part thereof without the prior
written consent of CITY: A consent to one assignment will not be
deemed to be a consent to any subsequent assignment. Any
assignment made without the approval of the city manager will be
void and, at the option of the city manager, this Contract may be
terminated: This Contract will not be assignable by operation of
law.
SECTION 13 -NOTICES
13.1 All notices hereunder will be given in writing and
mailed, postage prepaid, by certified mai!, addressed as follows:
To CITY:Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
To CONTRACTOR: Attention of the project director
at the address of CONTRACTOR recited above
SECTION 14 -CONFLICT OF INTEREST
14.1 In accepting this Contract, 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 the
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Services.
14.2 CONTRACTOR further covenants that, in the
performance of this Contract, it will not employ any contractor or
person having such an interest. CONTRACTOR certifies that no
person who has or will have any financial interest under this
Contract is an officer or employee of CITY; this provision will be
interpreted in accordance with the applicable provisions of the
Palo Alto Municipal Code and the Government Code of the State of
California.
SECTION 15 -,NONDISCRIMINATION
15.1 As set forthin the Palo Alto Municipal Code, no
discrimination will be made in the employment of any person under
this Contract because of the age, race, color, national origin,
ancestry, religion,, disability, sexual preference or gender of that
person. If the value of this Contract is, or may be, five thousand
dollars ($5,000) or more, CONTRACTOR agrees to meet all
requirements of the Palo Alto Municipal Code pertaining to
nondiscrimination in employment, including completing the requisite
form furnished by CITY and set forth in Exhibit "D".
15.2 CONTRACTOR agrees that each contract for services
with an independent provider will contain a provision substantially
as follows:
"[Name of Provider] will provide CONTRACTOR
with a certificate stating that [Name of
Provider] is currently in compliance with all
Federal and State of California laws covering
nondiscrimination in employment; and that
[Name of Provider] will not discriminate in
the employment of any person under this
contract because of the age, race, color,
national origin, ancestry, religion,
disability, sexual preference or gender of
such person."
15.3 If CONTRACTOR is found in violation of the
nondiscrimination provisions of the State of California Fair
Employment Practices Act or similar provisions of Federal law or
executive order in the performance of this Contract, it will be in
default of this Contract. Thereupon, CITY will have the power to
cancel or suspend this Contract, in whole or ih part, or to deduct
the sum of twenty-five dollars ($25) for each person for each
calendar day during which such person was subjected to acts of
discrimination, as damages for breach of contract, or both. Only a
finding of the State of California Fair Employment Practices
Commission or the equivalent federal agency or officer will
constitute evidence of a breach of this Contract.
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SECTION 16 -MISCELLANEOUS PROVISIONS
16.1 CONTRACTOR represents~ and warrants that it has
knowledge of the requirements of the Americans with Disabilities
Act of 1990, and the Government Code and the Health and Safety Code
of the State of California, relating to access to public buildings
and accommodations for disabled persons, and relating to facilities
for disabled persons. CONTRACTOR will comply with or ensure by its
advice~that compliance with such provisions will be effected in the
performance of this Contract.
16.2 This Contract will be governed by the laws of the
State of California, excluding its conflicts of law.
16.3 In the event that an action is brought, the parties
agree that trial of such action will be vested exclusively in the
state courts of California or in the United States District Court
for the Northern District of California in the County of Santa
Clara, State of California.
16.4 The prevailing party in any action brought to
enforce the provisions of this Contract may recover its reasonable
costs and attorneys’ fees expended in connection with that action.
16.5 This document represents the entire and integrated
agreement between the parties and supersedes all prior negotia-
tions, representations, and contracts, either written or oral.
This document may be amended only by a written instrument, which is
signed by the parties.
16.6 All provisions of this Contract, whether covenants
or conditions; will be deemed to be both covenants and conditions.
16.7 The covenants, terms, conditions and provisions of
this Contract will apply to, and will bind, the heirs, successors,
executors, administrators, assignees, and contractors, as the case
may be, of the parties.
16.8 If a court of competent jurisdiction finds or rules
that any provision of this Contract or any amendment thereto is
void or unenforceable, the unaffected provisions of this Contract
and any amendments thereto will remain in full force and effect.
i6.9 All exhibits referred to in this Contract and any
addenda, appendices, attachments, and schedules which, from time
to time, may be referred to in any duly executed amendment hereto
are by such reference incorporated in this Contract and will be
deemed to be a part of.this Contract.
16.10 This Contract may be executed in any number of
counterparts, each of which will be an original, but all of which
together will constitute one and the same instrument.
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16.11 This Contract is subject to the fiscal provisions
of the Charter of the City of Palo Alto and the Palo Alto Municipal
Code. This Contract will terminate without any penalty (a) at the
end of any fiscal year in the event that funds are not appropriated
for the following fiscal year, or (b) at any time within a fiscal
year in the event that fundsar~ only appropriated for a portion of
the fiscal year and funds for this Contract are no longer
available. This Section 15.11 shall take precedence in the event
of a conflict with any other covenant, term, condition, or
provision of this Contract.
IN WITNESS WHEREOF, the parties hereto have by their duly
authorized representatives executed this Contract on the date first
above written.
ATTEST:CITY OF PALO ALTO
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
APPROVED:
Assistant City Manager
Mayor
CUPERTINO ELECTRIC, INC.
By:
Name:
Title:
By:
Name:
Title:
Taxpayer Identification No.
Director of Administrative
Services
Director of Utilities
Risk Manager
Attachments :
EXHIBIT "A" :
EXHIBIT "B" :
EXHIBIT "C" :
EXHIBIT "D" :
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(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)
SCOPE OF SERVICES
RATE SCHEDULE
INSURANCE
NONDISCRIMINATION COMPLIANCE FORM
i0
CERTIFICATE OF ACKNOWLEDGEMENT
(Civil Code SI189)
STATE OF
COUNTY OF
On , 2002, before me,,
a Notary Public in and for said County and State, 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/heJ/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
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CERTIFICATE OF ACKNOWLEDGEMENT
(Civil Code § 1189)
STATE OF )
) ss.
COUNTY OF )
On , 2002, before me,,
a Notary Public in and for said County and State, 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
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EXHIBIT ~A"
SCOPE OF SERVICES FOR POWER QUALITY
AND RELIABILITY CONSULTING SERVICES
i.OBJECTIVES AND OVERVIEW
The City of Palo Alto desires to secure reliability
consulting services to support the City of Palo Alto (CITY)
Utilities Department "Power Quality and Reliability Program"
.for its small commercial, major account and institutional
customers. The services will support activities such as
electric reliability studies, power quality auditing,
project design review, seminars, technical and economical
analysis of.customer system performance, and related
technical and specialized services.
Services include turn-key reliability enhancements for
customers, evaluation of: customer facilities’ electrical
distribution system, back-up power systems, service panel
modifications to accommodate plug-in back-up generation,
demand-limiting control strategies, equipment replacement
and electrical system upgrade, monitoring, customer
presentations and informational materials related to
reliability. In addition, customers have also sought
information on how to protect their businesses and sensitive
equipment and processes from voltage sags which originate on
the utility distribution systems.
The services will be provided by the CONTRACTOR on an as-
requested basis,, when the need for services is determined by
the CITY. CONTRACTOR work will.be authorized by the CITY’s
Project Manager through the issuance of written Service
Orders. The scope andthe maximum compensation for each
Service Order will be negotiated between the CONTRACTOR and
the CITY’s Project Manager prior to commencement of the
requested work.
The type of services that shall be performed and delivered
by the CONTRACTOR can be on the customer meter and may
include, but shall not be limited to:
Provide turn-key reliability solutions
(construction capability) for critical systems.
found in a variety of businesses
Reliability Audits & Studies for customer
processes and equipment including, but not
limited to: elevators, clinic battery packs,
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data systems, and, service panel upgrades for
accommodating plug-in back-up generation
Facility and End Use Power Conditioning
(including voltage sag mitigation and grounding
recommendations)
Project Design Review
Customer Workshops
Project Economic Analyses (Life Cycle~Costing)
Technical Support and Training of Utility Staff
CONTRACT SCOPE
A.CITY Responsibilities shall include:
(i)
(2)
The CITY will perform all marketing and
screening for the services to be offered to
the utility customer. The CITY will provide
Consultant with contact information for the
accounts selected for services. The CITY
will also maintain a database of audited
customer accounts for follow-up visits.
The CITY will provide CONTRACTOR with
electrical distribution system diagrams
detailing utility service to the selected
site, and electric use history of each
customer.
Bo
(3)The CITY will work with CONTRACTOR to develop
all informational materials. The CITY must
approve all materials.
(4)The CITY. will contact the customer and
arrange meetings.
CONTRACTOR Responsibilities shall include but not
be limited to:
(i)
(2)
The CONTRACTOR will provide all equipment,
materials and personnel required to do the
work as specified.
The CONTRACTOR will perform either walk-
through or full-scale audits, and follow-up
visits, and provide copies of all customer
materials to the CITY. In addition,
CONTRACTOR will provide monthly status
reports, participate in quarterly program
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review meetings with the City, and prepare an
annual report summarizing all work done in
the previous 12 months.
(3)The CONTRACTOR will provide workshop ~.
presentations on an as- requested basis on a
variety of measures which customers can take
to enhance end use processes and equipment
operation. The CITY anticipates up to four
workshops annually focused on equipment and
processes within the small commercial, major
account and institutional customer
businesses. These include, but are not
limited to, elevators, service panel
modifications, and battery packs for small
medical uses.
(4)The CONTRACTOR will assist the CITY in the
preparation and review of reliability related
marketing material for the small commercial,
major account "and institutional customer.
B o At the request of the CITY’s Project Manager, the
CONTRACTOR shall provide Services on an as-needed
basis, including but not limited to the following:
(I)Seminars and Workshops
It is~anticipated that there would be up to
four seminars or workshops annually. Subjects
may.include the following:
a. Elevator reliability: Problems,
Analysis, and Solutions.
Service Panel Modifications: Problems,
Analysis, and Solutions.
c.Power System Basics,
do The use of Battery Packs and other back-
up devices for medical, dental, and
outpatient clinics.
(2)Informational Services
It is anticipated that the CITY will be
updating its web page services as needed.
021015 nra 0100027,1
(3)
The CITY ~m’~y seek to offer information
services to its customers through the
CITY web page. The CONTRACTOR shall on
request provide information, and
possibly develop tools, for this format.
b o The CITY may require periodic updates to
the tools and information provided by
the CONTRACTOR for display on its CITY
web page.
Reliability Audits
The scope of audits may range from phone
consultations with review of field monitoring
results, recommendations, review of equipment
plans, site walk-through, to detailed
engineering analysis of electrical systems.
The CONTRACTOR shall submit all audit
materials and associated calculation
methodologies el~ectronically in addition to
two hard copies for review by the CITY. The
audit tasks may include, but are not limited
to:
a o An executive summary of report findings,
Review of and description of existing
systems
C ¯Proposed options for reliability
enhancements (cut sheets, specifications
and wiring diagrams detailing equipment
installation configuration, and quality
assurance) ,
Data Collection (may include monitoring,
may range in monitoring period from a
single day to several months or more),
e o
f o
Data Analysis and Correlation (analyze
data for any
significant phenomenon),
Recommendations for cost-effective
preventive measures, mitigation,
control, and/or monitoring, including
economic evaluation of options to
determine the most cost effective
approach for customer implementation,
021015 nra 0100027.1 4
no
Review and creation of single-line
diagrams of customer’s electric
distribution system,
Evaluation of reliability improvement
options (UPS, generator options,
controls and switches). Reports shall
include the following:
® An executive summary
Risk assessment for impact of
outages to customers
A description and assessment of
the customer’s existing
protection/reliability systems
including a description of
proposed controls and systems
UPS system type (static, rotary
or continuous power supply)
Power Conditioning Options
(ferro-resonant transformers,
small and large-scale flywheels,
and other commercially available
technologies)
Automatic Transfer Switches
(subject to utility distribution
configuration and modification
options)
System life cycle cost (initial
and maintenance costs over the
equipment life)
Sequence of operation (for
controls and alarms)
System performance and
reliability
® UPS citing considerations
including room climate control
and sound attenuation
021015 nra 0100027.1
System fuel storage
requirements
Distribution system separation
Ancillary switchgear and switch
gear modifications
Power Quality impacts of
reliability improvement
equipment
CONTRACTOR reports shall include
appendices with information on customer
history (provided by the CITY) and
sample equipment specifications’ sheets
for recommendations,
The work will be done in a timely manner
as agreed between CITY Project Manager
and CONTRACTOR and set forth in the
Service Order.
(4).Project Design Review
Tasks include making recommendations for cost-
effective preventive measures, voltage mitigation,
power quality improvements, control, and/or
monitoring of power quality, reliability, or
voltage sag conditions. Project design review may
also involve the following:
a.Reviewing electrical diagrams
b.Data Analysis and correlation
c.Customer briefings.
Technical Support
Tasks include:
a. Phone, Fax and E-mail consultations with
Utilities staff and customers
b o Performing economic analysis of power
quality, reliability and voltage sag
mitigation options (including life cycle
021015 nra 0100027.1 6
C o
comparlsons of two or more options for
enhancement s)
Performing short term monitoring and
performance evaluations
Reviewing electrical system plans or
monitored data and making
recommendations for further
investigation and/or
voltage sag mitigation measures
Assistance with equipment specifications
for electrical system solutions on the
customer side of the meter, including
service panel upgrades, transfer
switches, voltage regulators and
conditioners, and other enhancements
Assistance in performing, designing,
delivering and analyzing formal and
informal surveys of voltage sag
mitigation, power quality, and
reliability service potentials in the
City of Palo Alto.
4.TASK ASSIGNMENT PROCEDURE
The following procedure shall be utilized to assign
tasks to CONTRACTOR:
A°The CITY’S Project Manager will, ifnecessary,
obtain the customer’s cooperation, define the task
and provide a written description of the task, or
Scope of Work, to CONTRACTOR.
CONTRACTOR shall, if necessary, visit the customer
site, and prepare and provide CITY a written,
fixed price’quotation for the requested Services
along with an hourly rate (based on Exhibit "B"),
number of hours and an estimate of the cost and
date for completion of the task. CONTRACTOR shall
provide the written quotation within 7 days or
such other amount of time as may be agreed to by
CONTRACTOR and the Project Manager. CONTRACTOR
may include a reasonable fee for the time required
for the visit to the customer’s site.
021015 nra 0100027.1
Co
Do
E °
F °
If t~he CONTRACTOR declines to perform the work on
an offered task, the CITY’S Project Manager should
be notified within five working days after receipt~
of the Project Manager’s proposed Scope of Work.
Based on. the price quotation, CITY’s Project
Manager will authorize the work with a written
"Service Order," or redefine the tasks associated
with the assignment. The Service Order shall
describe the work, including deliverables, ~he
maximum compensation for the work and the time for
completion of the work.
CONTPJACTOR shall complete the work and provide the
CITY with the deliverables within the time
specified for completion in the Service Order. A
95% complete draft report must be submitted at
least I0 working days before the project deadline
for CITY review and comment. If earlier phase
reports are required, they will be identified in
the task assignment at the initiation of ~the
project.
A final report will be completed for all audits
(including those receiving only a walk-through
audit) two weeks after audit completion. The
final report will include all findings of the
audit in a clear, concise format, along with
appropriate informational materials. The audit
will be considered completed only after the final
report is submitted and accepted foreach site.
When the CONTRACTOR provides any of the following
services to CITY customers: seminar, workshop,
project design review, or technical support,
CONTRACTOR shall prepare a document to record the
services. The document will be submitted both
electronically and in hard copy to the CITY. The
document must include the following information:
A customer business name
Customer contact name, position title
and phone number
A brief paragraph outlining the work
performed
The date(s) when the services were
rendered
021015 nra 0100027.1 8
If ~pplicable, the document must include the
following information:
® A short paragraph describing the
problem(s) and the operational impact on
the customer (this is just a short
description of the problem and what
possible solutions were recommended)
o A short paragraph describing the
problem(s) and the fiscal impacts, on the
customer. This is the quantified value
(in US dollars) to the customer on a per
event basis of the implementation of the
recommended solution(s). This
information will be provided by the
customer as to how much the problem was
costing before it was solved or
remedied. The customer will have already
agreed with the CITY’s Project Manager
to provide th~ financial impact
information, prior to the assignment of
work to the CONTRACTOR.
These short form summaries shall be submitted to
the CITY within two weeks of completion of the
service rendered°
5.DELIVERABLES
The deliverables will be determined on a task-by-task basis~
Deliverables include data transmitted electronically, on
disk, or written reports, a summary of site walk-through
recommendations, power conditioning and power quality
calculations, or presentations. Oral presentations and
staff training sessions may be video recorded by CITY.All
reports and written materials must be provided to and
approved byCITY’s Project Manager prior to delivery to the
customer. .The CITY requires that material be delivered in
electronic format. The software used by the CITY includes
WORD, EXCEL, and POWER POINT and MICROSOFT PROJECT. The
CITY also anticipates updates to its web page presentation
of reliability material. Any material developed by the
CONTRACTOR for this effort should be in html format.
021015 nra 0100027.1
CUPERTINO~I_E~CTF:t I r, INC,
EXHIBIT "B"
RATE SCHEDULE
1.0 MANAGEMENT
2.0
o
o
o
o
Rudy Bergthold, PE, Senior Vice President, Engineering $150.00 per hour
Steven F.. Schumer, PE, Vice President, Technical Support $150.00 per hour
John Curcio, PE, Vice President, Projects $150.00 per hour
Jack D. Todd, PE, Director of Engineering and Design
Fred Proffitt, PE, Manager of Engineering
Earl Martin, Service Department Manager
Steven Balbo, Project Manager
$125.00 per hour
$100.00 per hour
$110.00 per hour
$95.00 per hour
FIELD LABOR and SUPERVISION
2.1 Standard Operations Rates
Billed rates will be as quoted below plus six percent (6%), total, for overhead and
profit.
Straight Time Overtime Overtime
@ Time &@ Double
One-Half Tkme
Journeyman $69.,_~$94.63 $11g.Sg
General Forem~$88.96 $!2i.05 $I52.66
,.z Emergency Cali-Out Rates
Billed raes wi!l be as quoted below.
Straight Time Overtime
@ Time &
One-Hal~
Overtime
@ Double
Time
Journeyman $86.48 $i b.6o ,140.a.~
Foreman $96.95 $128.19 $!58.89
General Foreman $107.41 $142.72 $177.42
CUI~I~RTINO
ELE(3TRIO INC,
3.0
4.0
5.0
SUBCONTRACTOR MARKUP
Ten percent (10%) of invoiced amount
TEST EQUIPMENT RENTAL
RPM Omega, Dranetz/BMI PowerPlatform, with Current Probes - $85.00 per
¯ daY, $400.00 per week, $1200.00 per month
ADMINISTRATIVE, MATERIALS, and OTHER
Designer $65.00 per hour
CAD Operator $50.00 per hour
Administrative Assistant $35.00 per hour
Markup on Miscellaneous Construction Materials - End Column Plus Ten Percent
(10%)
Power Quality & Reliability Consulting Services to Major and Small Commercial
Customers Evaluation.
RFP #144314
Carolynn Bissett, Contract Administrator September 3, 2002
The two bidders were extremely close in their performance capabilities, 247 to 269
points.
Anthony Enerio who is the Small Commercial Account Representative and Jerry Brown
who is the Major Account Representative have looked over the proposals that were
submitted for evaluation. We would like to select the proposal from Cupertino Electric on
the basis of the point selection and feel that they would best serve our customer base with
the capability of turnkey solutions for the small and major commercial market.
Respectfully,
Jerry
Utility Marketing Services
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C ty of Palo
Manager’s Re
CITY OF PALO ALTO
Memorandum
October 21, 2002
TO:
SUBJECT:
City Council Members
Agenda Item No. 10: Approval of Contract with Cupertino Electric,
Incorporated in the Amount of $70,000 for Electric Reliability Services
For Commercial Utility Customers
This packet contains Attachment A: Contract Signature page and Signature of
Acknowledgement which were inadvertently left out of the above listed CMR:396:02.
This attachment is part of agenda item No. 10 on the Council agenda for 10/21/02.
of City of Palo Alto Utilities
FRANK BENEST
City Manager
16,11 This contract is subject to the fiscal provisions
of the Charter of the ’City of Pale Alto and the Pale Alto Mtt~icipal
code. This Contract will terminate without any penalty (a) at the
end. of any fiscal yea~ in ~he event that funds are ~ot appropriated
for the following fiscal, year, or (b) at any time within a fiscal
year in the event that futnds are only appropriated for a portion of
the fiscal year amd funds for this Contract are no longer
available. This Section 15,11 shall take precedence in the event
of a conflict with any other covenant, texm, condition, or
provision of this Cong~act.
IN WITNESS WHEREOF, the parties hereto have by their duly
authorized representatives executed this Comtract on the date first
above written.
ATTEST CITY OF PALO ALTO
City Clerk
APPROVED AS TO FORM:
Sen/or Asst. City Attorney
APPROVED:
Ass.istan£ city Manager
¯ Mayor
CUPERTINO, ELECTRIC, iNC.
Title: Chief Opera~iuf~ Officer
Dimector of Administrative
Director of Utilities
Risk Manager
Taxpayer Zdentlfication NO~
9~-1403967
Attachments
EXHIBIT
~XHIBIT "B
EXHIBIT "C".;
(compliance with c~rp. Code "~ 5~S is
required if the entity on whose behalf
this contract ks signed i~ ~ c~rpora~ion,
authority of ~he individuals si~in9 £n
SCOPE’0F SEKVICES
KATE SCHEDULE
INSURANCE
NONDISC~IMINATION COMPLIANCE FOPS~
I0
appeargd .~¯
’,. ., personally known to me
or 9roved to m~s of sa~isfactozy evidence to be the
person6s~whose name,s+ is~subscrlbed to the within insSr~en.t
a~d ac~owledged to me tha~. ~she~ executed the same in
~hex~r authorized capacity(lee), and that by.~her~
-sig~ture(~+ on ~he instr~ent, the person~, oz the entity upon
’behalf ~f which the person~ acted, executed the instrument.
W~TNRSS my hand ~d official seal,
cOMM. 1329709
~ of Notary Public
O~tOlSisdl 0100~.7 12
)
On ~, ~002, before me, ~_~h~’m~ ~-~e~% _.,
a Notary Public in and. for said C~nty ~--~ate,. personally
appeared ~t ~ ~, personally known to me
or proved~h~. ~asls of satisfactory evidence to be ~he
person~ whose n~e~ is~ subscribed to the within in, truant.
and ac~owlsdged io. me tha~ he~’exscu~ed £he s~e in
his~ authori’zed capagi~y~), and that by hls~
s!~ature~ on the inst~ment the person~, oz the entity upon.
behalf of which the person~) acted, executed the instz~ent,
WITNESS my hand and. official seal.
~naltur~ of Notary Public
021015 ~dl 010002?11
N~.ON OF NONDI$ .(;:=RIMINATIO SECTION 4t0
PROJECT: ~ITY AND RELIABILITY ONSULT!NG SERVICIF.S
Certlg~atlon of Nondiscrimination:
As su~ppl!ers of’goods or s~rvlces tothe City ot’ Pale Alto, the firm and indlvtdual~ listed below
certify that they do not discriminate In employment with. regards to age,race, color, religion, sex,.
national origin, anc.astry0 disability, or. sexual preference; that they are in compliance with all
Federal, State, arid local directivem and executive o.rders regarding nondiscrimination in
ernpleyment. ’
THE~ INFORMATION HEREIN IS .CERTIFIED CORR~SCT BY SIGNATURE(S) BELOW.
Flrm:
Slgndtum:
Name:
,TiUe:Chief Operating Officer’
NareS:
’ (PRINT.OR TYPE NAME.)
Title:OEN’. COUNSEL & ,(;O~,!~OT,.K~; SECP,~TAR¥
(PRINT OR TYPE NAME)
The City of Pale Alto, pumuant to California C’orpora~ions Code Section 313, requires two
corporate officers to execute contracts.
~The signature ~f First Officer* ~.g2J be one of ~he following: Chairman of the
Board; President; or Vice President,
’**The signature of the Second Officer~ mus_=_._t be one of the following; 8eemt~ty;
Assistant Secre~ry; Chief Financial Officer; or Asslstant Treasurer,
(In the alternative, a certifisd, t:orporate resolution attesting to the signatory
authority of the indlvldual~ ~lgnlng in their resp~ctlv.e capacities ts acceptable)
C|TYIOF PALO ALTO PAGE ~ OF 1
PRODUCER
Aon Risk Services, Into O~ Noffhem Califomla
Insurance Service~
99 Almaden Blvd., Suite
San Jo~, CA 95113
Cupertino EfeGtri¢,
1132 N, 7th St.
San Jose, CA 95112-4427
Attn: Josie Canson
Phone: (408) 28B-B000
¯ Fa~, (408) 534-6330
t0/21/2002THI~ CERI’tFI~AT~ I~ 1$8UEDA$ A ~/~,’ri~R OF INFORMATION
ONLY AND CONFERS NO ~6HT~ UPON THE CERi’IFICATE
HOLDER. THIS CERTIFICAT~ DOES NOT AMENDj I~Q’END OR
ALTER THE COVFJ~AGE AFFORDED BY THE POLICIES BELOW,
COMPANIE~ AFFORDING COVERAGE
COMPANY C
COMPANY D
BAP34361189,O0 12/3~!01 12J31/02
BEFORi~ THEEXPIBAT1ON DATE THER~O~, THE ISSUING COMPANY VVILL MAIL 30 DAYS
WRITTEN NOI~CE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT
THIS ENDORSEMENT CHANGES THE POLICY, PLEASE R,I~AD IT CAREFULLY,
ADDITIONAL INSURED -OWNERS, LESSEES OR
CONTRACTORS (FORM B)
This ®ndo~semenI; modifies insuPance provided under the following:
COMMERCIAL GENERAL UABILITY coVERAGE PART.
Name of Pa~on or Organ~atlon;
SCHEDULE
City ~ Polo Alto GEl Job#
City of Polo AIl:o Power Qualityand
R~liability Consulting Services
(If no entry appears above, informa~on required to complete this endorsement will be shown in the
Declarations as applicable to this endorsement,)
WHO IS AN INSURED (Secdon II) iS amended to include as an insur~t the person or organization
shown in the Schedule, but only with respeu-=t to liability arising of "your work" for that insured by or for
you,
Such insurance as is afforded by the General Liability policy is primary insurance and no other
insurance of the additional Insured will be called upon to contribute to a loss,
CG2o loll 85
Copyright, Inr~Jran¢~ ~NI~eS Office,