HomeMy WebLinkAbout2001-05-07 City CouncilCity of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
4
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:
SUBJECT:
MAY 7, 2001 CMR:208:01
APPROVAL OF AMENDMENT NO. 2 TO CONTRACT WITH
UTILITY CONSTRUCTORS IN THE AMOUNT OF $400,000 FOR
PROVIDING OVERHEAD CONSTRUCTION SERVICES AND
INCIDENTAL UNDERGROUND ELECTRICAL WORK, CONTRACT
NO. C9111693
RECOMMENDATION
Staff recommends that Council approve and authorize the Mayor to execute the attached
amendment to contract C9111693 with Utility Constructors, to increase the contract amount
by $400,000 for a total contract price of $3,023,856.
BACKGROUND
In February 1999, the City entered into a contract with Utility Constructors in the amount of
$370,832 for providing overhead construction services on the City’s overhead electric
transmission and distribution system (CMR: 146:99). The contractor was asked to provide
two overhead crews (four-man crew and two-man crew) to be used full time by the City’s
Electric Operations Division for a period of five months, with an option to extend the term
for two additional 12-month periods. The contractor services mainly include: replacement
of deteriorated poles on the overhead electrical system, replacement of transformers, air
switches, connectors, insulators, conductors, and other miscellaneous equipment; and
overhead maintenance work required on the electric system to assure compliance with
standards meeting General Order 95 guidelines. In addition, the contractor’s crews will be
available to assist Electric Operations in the restoration of power during emergency and
storm events.
Utility Constructors was selected because of its recent experience with related projects,
understanding of the scope of services to be provided, commitment of firm pricing for the
entire contract period, and the foreman’s qualifications and experience. Utility Constructors
CMR:208:01 Page 1 0f3
has been: working under that contract and has performed in an outstanding manner.
The existing contract allows the City and Utility Constructors to extend the contract for up
to two additional twelve-month periods, through July 31, 2001. In July 1999, staff issued
contract Change Order No. 1 to extend the performance through July 31, 2000 and increase
the contract amount by $ 876,512 for a total contract price of $1,247,344. In April 2001, the
City issued Amendment No. 1 to contract (CMR: 193:00), to increase the contract amount by
$100,000 for the remainder of the second twelve month period for a total contract price of
$1,347,344. The additional funds were to cover the cost of an additional four-man crew to
perform high priority maintenance work.
Finally, in July 2000, staff issued contract Change Order No. 3 to exercise the option of final
contract performance period extension, through July 31, 2001, and increase the contract
amount by $1,276,512 for a total contract price of $2,623,856.
DISCUSSION
Due to current workload, the City has been utilizing Utility Constructors to perform more
work than originally anticipated. The contractor has been asked to perform overhead and
underground services to assist city crews in meeting deadlines of the different projects,
including customer service connectionsand the Fiber To The Home (FTTH) project. In
addition, as a result of ongoing overhead line and underground system inspection programs
required by General Order 165 of the State of California, an increasing number of additional
problems that could lead to safety hazards have been identified. These problems could affect
the reliability of the electric system if not fixed as soon as possible. Utilities Engineering and
.Operations proposes to have the contractor, Utility Constructors, perform this high priority
maintenance work to maintain the safety of the overhead and underground electric system.
Utility Constructors has agreed to provide an additional four-man crew to perform the
additional work under the existing contract. Funding for this additional work was not
included in the price of the original contract, and will require an additional $400,000 for the
remainder of the contract. The attached amendment will increase the contract amount to
cover additional work that will be performed by the contractor.
RESOURCE IMPACT
This amendment will increase the contract amount by $400,000. for the remainder of the
contract final performance period through July 31, 2001. Funds for this contract are
available in the fiscal year 2000-01 Electric Capital Improvement Program Budget. This
action has no impact on construction work forces since it is being performed by an outside
contractor.
POLICY IMPLICATIONS
This report does not represent any change to existing City policies.
CMR:208:01 Page 2 of 3
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act (CEQA).
ATTACHMENTS
Amendment No.2 to Contract No. C9111693
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
%~¢fg er°’Far~j, S enl~or Power E n~i~er
~,¢ctor of Utilities
E~I~~ "ItAliRISON
Assistant City Manager
CMR:208:01 Page 3 of 3
AMENDMENT NO. TWO TO CONTRACT NO. C9111693
BETWEEN THE CITY OF PALOALTOAND
~UTILITY CONSTRUCTORS
This Amendment No.2 to Contract No. C9111693
("Contract") is entered into , by and between the
CITY OF PALO ALTO, a chartered city and a municipal corporation of
the State of California ("CITY"), and UTILITY CONSTRUCTORS, a
9artnership, located at 7039 Ceres Court, Redding, California 96002
"CONTRACTOR").
RE C I TAL S:
WHEREAS, the Contract was entered into between the
parties for the provision of providing overhead construction
services and incidental underground electrical work; and
WHEREAS, the parties wish to amend the Contract;
NOW, THEREFORE, in consideration of the covenants, terms,
conditions, and provisions of this Amendment, the parties agree:
SECTION I. Section 4 -is hereby amended to read as
follows:
"SECTION 4 - COMPENSATION
010423 syn 0072021
4.1 In consideration of the full
performance of .the Services by CONTRACTOR,
CITY will pay CONTRACTOR a total sum not to
exceed Three Million Twenty-Three Thousand
Eight Hundred Fifty-Six Dollars ($3,023,856)
payable within thirty (30) days of submission
by CONTRACTOR of its itemized billings, in.
triplicate, in accordance with the .following
fee schedule set forth in Exhibit ’B’ Payment
of the services will be made in monthly
progress payments in proportion to the quantum.
of Services performed, as set forth in
Exhibit ’A’."
1
SECTION 2. An amendment to the Scope of Services,
Exhibi~ "A", is hereby attached.
SECTION 3. Except as-herein modified, all other
provisions of the Contract, 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:
Mayor
UTILITY CONSTRUCTORS
Senior Asst. City Attorney
APPROVED:
By:
Its:
Taxpayer I.D. No. 68-0328862
Assistant City Manager
Director of Utilities
Acting Director of
Administrative Services
Purchasing/Insurance Review
Attachment:
¯ EXHIBIT "A":SCOPE OF PROJECT AND TIME SCHEDULE
010423 syn 0072021
2
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)
STATE OF
COUNTY OF
)
)
)
On
notary public in and
, before me, the undersigned, a
for 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.
010423 syn 0072021