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HomeMy WebLinkAboutStaff Report 2304-13759.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE-15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) Title Updated, Q&A City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: June 19, 2023 Report #:2304-1375 TITLE Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE-15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute: 1. A Purchase Order with Pivot Interiors Inc. (Attachment A) for the Public Safety Building Capital Project (PE-15001) in an amount not to exceed $756,021, including $687,292 for basic services and $68,729 for contingency; and 2. A Purchase Order with One Workplace (Attachment B) for the Public Safety Building Capital Project (PE-15001) in an amount not to exceed $480,229, including $436,572 for basic services and $43,657 for contingency. BACKGROUND On February 1, 2021, the Public Safety Building (PSB) general construction contract was authorized by Council1. Construction has been underway since March 2021 and is expected to complete in fall 2023. The general construction contract does not include most items designated as fixtures, furniture, and equipment (FF&E). It does include some built-in FF&E items such as wall-mounted video screens and computer server racks. Budget for other stand- alone FF&E has also been included in the project plan, and the overall debt funding plan anticipated these FF&E expenditures. The City-standard modular office furniture purchases 1 City Council, February 1, 2021; Agenda Item #4, SR #11752 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-11752.pdf included in this recommendation will be a key component of the final PSB to provide efficient and functional workspaces. The new PSB will house staff from the Police and Fire Departments, and the Office of Emergency Services. Spaces in the building include offices, staff workspaces, break rooms, meeting rooms, fitness rooms, and public lobbies. ANALYSIS In February 2021, Council directed staff to “examine the FF&E budget and remove all that are not necessary at time of completion.” Staff hired Single Source, Inc. to perform a survey of existing offices, conference rooms, and common areas in the Palo Alto Police Department on the first floor of City Hall and Fire Department administration offices on the sixth floor of City Hall. The survey indicated that 16 percent of furniture items were at the end of useful life, about half were not recommended for re-use, and 39 percent had potential for re-use but would require repairs. Repairs could be costly, especially if the item no longer has a warranty. In addition to the age and condition of the existing furniture, the new public areas and staff workspaces of the PSB are configured differently than at City Hall and direct re-use of existing modular furniture would not effectively use the new space. Most of the existing modular furniture in the old facility is also comprised of an earlier generation of Herman Miller cubicles that has been discontinued. Areas in the existing facility that do have the newer generation of the Herman Miller cubicles may be more suitable to reuse in-place under the City Hall Space Planning Capital Project (PE-19000), and avoid expenses associated with a mixed design and move of applicable furniture. As a result, virtually all furniture items will be replaced due to their condition and infeasibility of direct re-use. PSB offices and staff workspaces will be furnished with City-standard Herman Miller modular furniture with finishes matching recent tenant improvements at City Hall and the Municipal Services Center (MSC). If modifications are needed in the future due to changing needs, City staff will be able to source from the current in-house spare parts inventory where possible. Lobby, break area, and staff seating fabrics were selected to withstand public use over the years and for easy cleaning by the City’s maintenance staff. Typically, the selected furniture should last a minimum of 12 years with normal usage and occasional maintenance. In order to remove unnecessary furnishings, staff modified the original furniture plans from 2019 as follows: 1. Removed cubicle fabric tiles that were up against walls on the backside of cubicle walls. 2. Consolidated power in cubicles to avoid having additional powered raceways. 3. Removed standard under cabinet lighting where lighting was sufficient or rarely used by staff. 4. Removed unnecessary cubicle walls and overhead storage on the third-floor administrative counter area and replaced it with freestanding desks. 5. Removed overhead storage where no longer needed in offices on the first floor. As a result, and between the two purchase orders, the City will be purchasing the following items: •118 staff task chairs •59 cubicles and 27 furnished offices •12 staff workstations •56 chairs and 21 tables for staff break areas •28 chairs and 6 tables for public lobbies •61 tables for conference or multi-purpose areas •152 chairs for conference and multi-purpose areas •31 communal storage units •40 pieces of various electronics such as power modules for tables and desk lighting. Per Palo Alto Municipal code 2.30.360(j), the City can take advantage of cooperative purchasing agreements provided: (i) the services are solicited using methods substantially similar to those required under the Municipal Code, as determined by the Procurement Officer; and (ii) the contract is consistent with the requirements under the Municipal Code. OMNIA Partners (OMNIA) and Sourcewell provide discounts for government entities purchasing furniture from brands such as Herman Miller, Steelcase, and Coalesse. The cooperative purchasing agreement contracts were competitively solicited and publicly awarded through the cooperating purchasing organizations and the purchase orders are consistent with the requirements of the Municipal Code. Cooperative purchasing programs allow government organizations to use a single solicitation with the best value and favorable terms and conditions. Each purchase order includes a material cost for furniture and accessories, freight and installation of furniture, and project management fees including layout design from the vendor. Council authorization for a 10% contingency on these Purchase Orders is also included and recommended for minor changes, additions, and for storage fees if there are unforeseen project delays that prevent delivery and installation during the specified calendar window. Furniture sourced through Pivot Interiors Inc. has a lead time of 10-16 weeks, and furniture sourced from One Workplace has a lead time of 18-20 weeks. Staff also expects manufacturing costs to increase on July 1, 2023 for Herman Miller and its subsidiaries. Project Timeline While the project is progressing well toward completion, it should be noted that construction contract substantial completion dates often change during construction as change orders can authorize additional time for various issues that affect the critical path. Staff and the construction manager believe that the PSB is on track for substantial completion in October. Following substantial completion, the “move-in” phase of the project will continue for several months for the installation and testing of several highly-technical and critical Public Safety, IT, Security, and Communications systems that will be housed at the new PSB. Activities that will be performed during the move-in phase, include: •Completion of punchlist items – minor issues identified during inspections to be corrected prior to final completion of the construction contract, but that do not necessarily impact substantial completion •Furniture Delivery and Installation •Installation, Testing and Commissioning of City / Police IT systems •Commissioning of 9-1-1 telephone and dispatch systems •Commissioning of Radio Systems and Equipment •Phased relocation of Dispatch Operations •Integration of the new facility with neighboring agencies, including Silicon Valley Regional Interoperability Authority (SVRIA) •Phased re-location of Police, Fire Department Administration and Office of Emergency Services staff from the existing facility to the new PSB site Some move-in items will occur during construction. The move-in phase is expected to continue for 3-4 months after substantial construction completion, with the new facility projected to become fully-operational in early 2024. FISCAL/RESOURCE IMPACT Funding for these Purchase Orders for a total of $1,236,250 is available in the Fiscal Year 2023 Adopted Capital Improvement Program budget for the Public Safety Building capital project (PE- 15001) and does not increase the overall PSB budget approved by Council when the construction contract was approved in early 2021. The Purchase Order for One Workplace includes furniture from Steelcase, Coalesse, Enwork, and Jasper Seating. The following totals including applicable taxes are shown below for One Workplace. Item Amount Furniture and accessories $359,338.40 Freight and Installation $45,805.22 Project Management $31,428.00 Contingency $43,657.16 Total $480,228.78 The Purchase Order for Pivot Interiors Inc. includes furniture from Herman Miller and its subsidiary companies including HAY, Geiger, and Naughtone. The following totals including applicable taxes are shown below for Pivot Interiors. Item Amount Furniture and accessories $526,261.33 Freight and Installation $121,956.77 Project Management $39,073.30 Contingency $68,729.14 Total $756,020.54 STAKEHOLDER ENGAGEMENT Public Works has coordinated the furniture design with key staff from departments whose operations will be dependent upon the PSB. ENVIRONMENTAL REVIEW An Environmental Impact Report for the PSB and the New California Avenue Area Parking Garage was prepared and certified by Council on June 11, 2018, by adoption of Resolution No. 9772.2 ATTACHMENTS Attachment A: Purchase Order with Pivot Interiors Inc. Attachment B: Purchase Order with One Workplace APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 2 Resolution 9772, 2018 https://www.cityofpaloalto.org/files/assets/public/city-clerk/resolutions/reso-9772.pdf?t=40475.53 This City of Palo Alto (City) Purchase Order agreement (PO) with Pivot Interiors pursuant and subject to Omnia agreement Contract 202000062 PH485, Sourcewell Contract no. 19Z08621 and Omnia agreement Contract R191819 & R191806 with Pivot Interiors for the project management, procurement of equipment and assembly services as detailed in this PO This PO is governed by California law without regard to conflict of law principles. The venue for any dispute under this PO is Santa Clara County, California. This PO by reference incorporates the following contract documents into this PO by reference as though fully set forth herein: 1. Omnia agreement Contract 202000062 PH485 2. Omnia agreement Contract R191819 & R191806 3. Sourcewell Contract 19Z08621 4. Pivot Interiors Quote 411901-01, 411901-02, 411901-03, 411901-04, 411901-05 and 411901-06 5. City of Palo Alto Purchase Order Terms and Conditions 0010 PIVOT Project Management PSB 1 USD 39,073.30 39,073.30 0020 PIVOT Freight & Install PSB 1 USD 121,956.77 121,956.77 Vendor Address PIVOT INTERIORS INC. 3355 SCOTT BLVD STE 110 Santa Clara CA 95054-3138 Tel: 408-432-5600 Fax: 408-432-5601 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Public Safety Building City of Palo Alto 250 Sherman Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4523000432 Date 05/30/2023 Vendor No.100165 Payment Terms Payment Due 30 days FOB Point F.O.B Destination Ship via Vendor to ship best method Required Date 07/31/2023 Buyer/Phone Saira Cardoza / 650-329-2327 Email Saira.Cardoza@CityofPaloAlto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 1 of 2 0030 PIVOT Materials PSB 1 USD 526,261.33 526,261.33 0040 PIVOT Contingency 1 USD 68,729.14 68,729.14 ------------------------- Sub-Total 756,020.54 *** ORDERING VIA EMAIL *** **** PRICE HAS BEEN QUOTED **** Vendor Address PIVOT INTERIORS INC. 3355 SCOTT BLVD STE 110 Santa Clara CA 95054-3138 Tel: 408-432-5600 Fax: 408-432-5601 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Public Safety Building City of Palo Alto 250 Sherman Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer Total 756,020.54 THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4523000432 Date 05/30/2023 Vendor No.100165 Payment Terms Payment Due 30 days FOB Point F.O.B Destination Ship via Vendor to ship best method Required Date 07/31/2023 Buyer/Phone Saira Cardoza / 650-329-2327 Email Saira.Cardoza@CityofPaloAlto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 2 of 2 CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE PAGE 1 OF 3 ACCEPTANCE/AGREEMENT: City of Palo Alto (City) reserves the right to reject any and all quotations, to waive any informalities, and, unless otherwise specified by Seller, to accept any item in a quotation. By accepting or filing this Purchase Order (P.O.), Seller agrees to the terms and conditions herein which shall prevail over any inconsistent provision in any form or other paper submitted by Seller. All shipments or services performed shall be deemed to have been made pursuant hereto. No other terms are acceptable. This P.O., including all specifications and drawings, shall constitute the entire agreement between the parties unless modified in writing by City. CITY'S PROPERTY: Seller agrees that the information, tools, jigs, dies, or materials, and drawings, patterns, and specification supplied or paid for by City shall be and remain City property and shall be held by Seller for City unless directed otherwise. Seller shall account for such items and keep them protected, insured, and in good working conditions without expense to City. DELIVERY: The terms of delivery are as stated on the reverse side hereof. The obligation of Seller to meet the delivery dates, specifications, and quantities set forth herein is of the essence of this P.O. No boxing, packing, or cartage charge will be allowed unless authorized by this P.O. Deliveries are to be made both in quantities and at times specified herein or, if not, such quantities and times are specified pursuant to City's written instruction. Items not delivered may be canceled without penalty to City. Shipments in greater or lesser quantity that ordered may be returned at Seller's expense unless written authorization is issued by City. PRICES: The price which Seller charges in filling this P.O. shall not be higher than Seller's most recent quote or charge to City for such materials, supplies, services and/or installations unless City expressly agrees otherwise in writing. Notwithstanding the prices set forth the P.O. City shall receive the benefit of any general reduction in the price of any item(s) listed herein which may be made by Seller at any time prior to the last delivery of goods or services covered by this P.O. TERMINATION: City shall have the right to terminate this P.O. or any part thereof upon ten (10) days notice in writing to Seller. (1) Without Cause. City may terminate all or any part of this P.O. without cause. Any claim by Seller for damages due to termination without cause must be submitted to City within thirty (30) days after effective date of termination. (2) For Cause. If Seller fails to make any delivery in accordance with the agreed delivery date, delivery schedule, or otherwise fails to observe or comply with any of the other instructions, terms, conditions or warranties applicable to this P.O., City may, in addition to any other right or remedy provided by this P.O. or by law, terminate all or any part of this P.O. in writing without any liability of City with respect to Seller at any time during the term of this P.O. In the event of termination for cause, City may purchase supplies or services elsewhere on such terms or in such manner as City may deem appropriate and Seller shall be liable to City for any cost and other expenses incurred by City, which is charged to City. CHANGES: City shall have the right at any time by written notice via P.O. Change Order to Seller to make changes in the specifications, the quantity of items called for, delivery schedules, and requirements covering testing, packaging, or destination. Any claim by Seller for adjustment under this clause shall be deemed waived unless made in writing with then (10) days after receipt by Seller of notice of such change. Price increases or extensions of time for delivery shall not be binding on City unless evidenced by a P.O. Change Order issued by City's Purchasing Manager. INSPECTION: City shall have the right to inspect and approve or reject any materials, supplies, services and/or installations upon arrival of notice of completion prior to payment without regard to the manner of shipment, completion, or any shipping or price terms contained in this P.O. All materials, supplies, services and/or installations must be furnished as specified. (1) Defective, damaged, and nonconforming materials and/or supplies may be returned for credit or refund, at Seller's expense. City may charge Seller for all expenses of unpacking, examining, repacking and reshipping of such materials and/or supplies. (2) Defective, incorrect and nonconforming services and/or installations may be returned for credit or refund, at Seller's expense. All of the above notwithstanding prior payment by City. WARRANTY: Seller expressly warrants that all materials, supplies, services and/or installations covered by this P.O. shall: (1) conform to the specifications, drawings, samples, or other descriptions specified by City or if none are so specified, to Seller's standard specification or the standards of the ASTM or ANSI or other national standard organizations; (2) be new and unless specified to the contrary on the face hereof, will be free from defects in material and workmanship and will be free of all liens and encumbrances and will conform to any affirmation of facts made on the container or label; (3) be adequately contained, packaged, marked, labeled and/or provided in compliance with all applicable federal and state laws and regulations (including materials deemed hazardous); (4) be performed within the rules and regulations of the Occupational Safety and Health Act of 1970 (as amended); (5) be produced or transferred or disposed of as required by federal and state laws and regulation under the conditions of the Toxic Substances Control Act; the Hazardous Materials Control and Hazardous Waste Regulations; and other toxic laws and programs. Seller further expressly agrees to protect, indemnify, and hold harmless City, its employees and agents for any loss, damage, fine, liability, fee (including reasonable charges and fees) or expense arising in connection with or resulting from Seller's failure to furnish materials or supplies or perform services that conform with any warranty contained herein. (6) have good marketable title. GOVERNING LAW: This P.O. shall be governed by the laws of the State of California. INDEPENDENT CONTRACTOR, INSURANCE: Seller certifies, by acceptance, that he/she is an independent contractor. Seller shall protect, defend, and indemnify and hold City harmless against all damages, liability, claims, losses and expenses (including attorney's fees) arising out of , or resulting in any way from Seller's negligence in providing the goods or services purchased hereunder or from any act or omission of Seller, its agents, employees, or subcontractors, Seller shall maintain such public liability insurance, including contractual liability, automobile and general public liability, (including non-owned automobile liability) Worker's Compensation, and employer's liability insurance as well adequately protect City against such damage, liabilities, claims, losses, and expenses (including attorney's fees). Seller agrees to submit certificates of insurance, evidencing its insurance coverage when requested by City. EQUAL OPPORTUNITY CLAUSE: By acceptance of this P.O., Seller certifies it is in compliance with the Equal Opportunity Clause required by Executive Order 11246, as amended, and the Palo Alto Municipal Code, as amended, including Affirmative Action Compliance Programs for Veterans; Handicapped; and Minority Business, and other equal opportunity programs. FORCE MAJEURE: City may delay delivery or acceptance occasioned by causes beyond its control. Seller shall hold such materials, supplies, services and or installations at the direction of City and shall deliver them when the cause affecting the delay has been removed. City shall be responsible only for Seller's direct additional costs in holding the goods or delaying performance of this P.O. and City's request. Seller shall also be excused if delivery is delayed by unforeseen events beyond its reasonable control, provided Seller notifies City as soon as they occur. City may cancel this P.O. if such delay exceeds thirty (30) days from the original delivery date. Seller shall use its best efforts to grant preference to this P.O. over those of other customers, which were placed after this P.O. AUTHORITY OF AGENT OR FACTOR: Seller represents that, whenever it executes this P.O. on behalf of a third party as an agent or factor, it shall disclose the existence of the agency or factor relationship to City. Seller shall be deemed to have the legal authority to enter into this P.O. with City on behalf of the third party. INTERPRETATION OF CONTRACT DOCUMENTS: In the event of a conflict between the terms of this P.O. and the attached specification with respect to any obligation of Seller, the provision which impose the greater obligations upon Seller shall prevail. CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE PAGE 2 OF 3 ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS: Seller agrees to comply with the City's Environmentally Preferred Purchasing Requirements. (1) Hazardous Waste: Seller shall take-back all spent or otherwise discarded hazardous products sold to the City by the Seller if the spent or discarded products are classified as hazardous or universal wastes by State or Federal regulations. Seller shall provide convenient collection and recycling services (or disposal services if recycling technology is unavailable) for all universal wastes, which originate from the Vendor. Hazardous waste manifests or bills of lading must be provided to City staff upon request. Recycling and reuse of hazardous wastes must occur within the United States. Universal waste lists and information are available www.dtsc.ca.gov/HazardousWaste/UniversalWaste/. A hazardous waste list is available at http://www.calrecycle.ca.gov/LEA/Training/wasteclass/yep.htm. Additional information can be obtained by contacting the City of Palo Alto Hazardous Waste Department at (650) 496-6980. (2) Zero Waste and Pollution Prevention: Per Palo Alto City Council policy, the City is targeting to achieve Zero Waste by 2021. The City must also meet Municipal Regional Stormwater Permit requirements requiring no visible impact from litter via stormdrains by 2022. To that end the vendor, manufacturer and or contractor must individually or collaboratively comply with the waste reduction, reuse and recycling requirements of the City's Zero Waste and Pollution Prevention Programs. Seller acknowledges and agrees that if Seller fails to fully and satisfactorily comply with these requirements, the City will suffer, as a result of Seller's failure, substantial damages which are both extremely difficult and impracticable to ascertain. Therefore, the Seller agrees that in addition to all other damages to which the City may be entitled, in the event Seller fails to comply with the below requirements Seller shall pay City as liquidated damages the amounts specified below. The liquidated damage amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer as a result of such non-compliance. Sellers shall adhere to the standard that all printed materials provided to the City that are generated from a personal computer and printer including, proposals, quotes, invoices, reports, and public education materials shall be double-sided, printed on a minimum of 30% post-consumer content paper or greater unless otherwise approved by the City's Environmental Services Division (650) 329-2117. Materials printed by a professional printing company shall be a minimum of 30% post-consumer material or greater and printed with vegetable based inks. Liquidated damages of $30 per document will be assessed by City for failure to adhere to this requirement. All paper packaging must be Forest Stewardship Council (FSC) Certified. All primary, secondary and shipping (tertiary) packaging be minimized to the maximum extent feasible while protecting the product being shipped. All primary, secondary and shipping packaging shall be recyclable in the City's recycling program. A complete list of items accepted for recycling are found at www.zerowastepaloalto.org or by calling (650) 496-5910. If any portion is received that does not meet this requirement, liquidated damages of $235 or a minimum of $50 if the combined product and shipping cost is $235 or less will be assessed by City for failure to adhere to this requirement. Expanded foam plastics (e.g., foam or cushion blocks, trays, packing 'peanuts'), such as but not limited to polystyrene (aka Styrofoam[tm]), polypropylene, or polyurethane shall not be used as primary, secondary or tertiary/shipping packaging with the following exceptions: o Primary packaging made from these materials may be used if the vendor, manufacturer, contractor individually or collaboratively does one of the following: (a) takes the material back at the City's convenience and at no cost to the City, or (b) pays the City of Palo Alto's disposal costs via payment of liquidated damages of $235, or a minimum of $50 if the combined product and shipping cost is $235 or less. o Bioplastics that meet ASTM D6400 standards for compostability may be accepted with approval from the City's Environmental Services Division subject to local municipal compost facility requirements. o If approved by the City's Environmental Services Division, a packaging requirement may be waived if no other viable packaging alternative exists. Reusable/returnable pallets shall be used and taken back by the Seller, at no additional cost to the City. Seller shall provide documentation upon request ensuring reuse of pallets and/or recycling of broken pallets. Liquidated damages of $262 or a minimum of $50 if the combined product and shipping cost is $262 or less will be assessed by City for failure to adhere to this requirement. (3) Energy and Water Efficiency: Seller shall provide products with an ENERGY STAR, Water Sense or State of California standard rating, whichever is more efficient, when ratings exist for those products. A life cycle cost analysis shall be provided to the City upon request and shall at minimum include: first cost, operating costs, maintenance costs, and disposal costs. Contacts for additional information about City of Palo Alto Hazardous Waste, Zero Waste and Utilities programs: Hazardous Waste Program (Public Works) (650) 496-6980 Zero Waste Program (Public Works) (650) 496-5910 Watershed Protection (650) 329-2117 Energy Efficiency (650) 496-2244 (4) Liquidated Damages: Seller agrees that failure to comply with the City's Environmentally Preferred Purchasing Requirements will result in Liquidated Damages, according to the table marked Liquidated Damages on page 3 of this P.O. Event of Non-Performance Recycled Paper Use Failure to use 30% recycled content paper Recyclable Packaging Materials Failure of Seller to use secondary and shipping packaging that is recyclable in the City's recycling program. Expanded Foam Plastics Unapproved use of expanded foam plastics for secondary or shipping packaging Pallet Use Failure of Seller to take-back and reuse pallets, recycling only broken pallets, at no additional cost to the City. Acceptable Performance Level (Allowed events per Fiscal Year) 1 1 0 1 Liquidated Damage Amount $30 per each document $235 or a minimum of $50 if the combined product and shipping cost is $250 or less will be incurred if this is not adhered to. $235 or a minimum of $50 if the combined product and shipping cost is $235 or less $262 or a minimum of $50 if the combined product and shipping cost is $2 or less CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE NONCOMPLIANCE WITH ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS, LIQUIDATED DAMAGES: The following table lists the events that constitute breaches of the Agreement's standard of performance warranting the imposition of liquidated damages; the acceptable performance level, and the amount of liquidated damages for failure to meet the contractually required standards of performance. PAGE 3 OF 3 This City of Palo Alto (City) Purchase Order agreement (PO) with One Workplace is made pursuant and subject to Sourcewell Contract #19Z08621 and Omnia agreement Contract R191819 & R191806 with One Workplace for the procurement of the equipment detailed in this PO. This PO is governed by California law without regard to conflict of law principles. The venue for any dispute under this PO is Santa Clara County, California. This PO by reference incorporates the following contract documents into this PO by reference as though fully set forth herein: 1. Sourcewell Contract No. 19Z08621 2. Omnia agreement Contract R191819 3. Omnia agreement Contract R191806 4. Quote 701689 5. City of Palo Alto Purchase Order Terms and Conditions 0010 Project Management PSB PE-15001 1 USD 31,428.00 31,428.00 0020 Freight and Installation 1 USD 45,805.22 45,805.22 0030 Materials 1 USD 359,338.40 359,338.40 Vendor Address ONE WORKPLACE L.FERRARI, LLC 2500 DE LA CRUZ BLVD. Santa Clara CA 95050 Tel: 415-357-2200 Fax: 415-357-2201 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Public Safety Building City of Palo Alto 250 Sherman Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4523000434 Date 05/30/2023 Vendor No.106158 Payment Terms Payment Due 30 days FOB Point F.O.B Destination Ship via Vendor to ship best method Required Date 07/31/2023 Buyer/Phone Saira Cardoza / 650-329-2327 Email Saira.Cardoza@CityofPaloAlto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 1 of 2 0040 Contingency 1 USD 43,657.16 43,657.16 ------------------------- Sub-Total 480,228.78 *** ORDERING VIA EMAIL *** **** PRICE HAS BEEN QUOTED **** Vendor Address ONE WORKPLACE L.FERRARI, LLC 2500 DE LA CRUZ BLVD. Santa Clara CA 95050 Tel: 415-357-2200 Fax: 415-357-2201 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Public Safety Building City of Palo Alto 250 Sherman Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer Total 480,228.78 THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4523000434 Date 05/30/2023 Vendor No.106158 Payment Terms Payment Due 30 days FOB Point F.O.B Destination Ship via Vendor to ship best method Required Date 07/31/2023 Buyer/Phone Saira Cardoza / 650-329-2327 Email Saira.Cardoza@CityofPaloAlto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 2 of 2 CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE PAGE 1 OF 3 ACCEPTANCE/AGREEMENT: City of Palo Alto (City) reserves the right to reject any and all quotations, to waive any informalities, and, unless otherwise specified by Seller, to accept any item in a quotation. By accepting or filing this Purchase Order (P.O.), Seller agrees to the terms and conditions herein which shall prevail over any inconsistent provision in any form or other paper submitted by Seller. All shipments or services performed shall be deemed to have been made pursuant hereto. No other terms are acceptable. This P.O., including all specifications and drawings, shall constitute the entire agreement between the parties unless modified in writing by City. CITY'S PROPERTY: Seller agrees that the information, tools, jigs, dies, or materials, and drawings, patterns, and specification supplied or paid for by City shall be and remain City property and shall be held by Seller for City unless directed otherwise. Seller shall account for such items and keep them protected, insured, and in good working conditions without expense to City. DELIVERY: The terms of delivery are as stated on the reverse side hereof. The obligation of Seller to meet the delivery dates, specifications, and quantities set forth herein is of the essence of this P.O. No boxing, packing, or cartage charge will be allowed unless authorized by this P.O. Deliveries are to be made both in quantities and at times specified herein or, if not, such quantities and times are specified pursuant to City's written instruction. Items not delivered may be canceled without penalty to City. Shipments in greater or lesser quantity that ordered may be returned at Seller's expense unless written authorization is issued by City. PRICES: The price which Seller charges in filling this P.O. shall not be higher than Seller's most recent quote or charge to City for such materials, supplies, services and/or installations unless City expressly agrees otherwise in writing. Notwithstanding the prices set forth the P.O. City shall receive the benefit of any general reduction in the price of any item(s) listed herein which may be made by Seller at any time prior to the last delivery of goods or services covered by this P.O. TERMINATION: City shall have the right to terminate this P.O. or any part thereof upon ten (10) days notice in writing to Seller. (1) Without Cause. City may terminate all or any part of this P.O. without cause. Any claim by Seller for damages due to termination without cause must be submitted to City within thirty (30) days after effective date of termination. (2) For Cause. If Seller fails to make any delivery in accordance with the agreed delivery date, delivery schedule, or otherwise fails to observe or comply with any of the other instructions, terms, conditions or warranties applicable to this P.O., City may, in addition to any other right or remedy provided by this P.O. or by law, terminate all or any part of this P.O. in writing without any liability of City with respect to Seller at any time during the term of this P.O. In the event of termination for cause, City may purchase supplies or services elsewhere on such terms or in such manner as City may deem appropriate and Seller shall be liable to City for any cost and other expenses incurred by City, which is charged to City. CHANGES: City shall have the right at any time by written notice via P.O. Change Order to Seller to make changes in the specifications, the quantity of items called for, delivery schedules, and requirements covering testing, packaging, or destination. Any claim by Seller for adjustment under this clause shall be deemed waived unless made in writing with then (10) days after receipt by Seller of notice of such change. Price increases or extensions of time for delivery shall not be binding on City unless evidenced by a P.O. Change Order issued by City's Purchasing Manager. INSPECTION: City shall have the right to inspect and approve or reject any materials, supplies, services and/or installations upon arrival of notice of completion prior to payment without regard to the manner of shipment, completion, or any shipping or price terms contained in this P.O. All materials, supplies, services and/or installations must be furnished as specified. (1) Defective, damaged, and nonconforming materials and/or supplies may be returned for credit or refund, at Seller's expense. City may charge Seller for all expenses of unpacking, examining, repacking and reshipping of such materials and/or supplies. (2) Defective, incorrect and nonconforming services and/or installations may be returned for credit or refund, at Seller's expense. All of the above notwithstanding prior payment by City. WARRANTY: Seller expressly warrants that all materials, supplies, services and/or installations covered by this P.O. shall: (1) conform to the specifications, drawings, samples, or other descriptions specified by City or if none are so specified, to Seller's standard specification or the standards of the ASTM or ANSI or other national standard organizations; (2) be new and unless specified to the contrary on the face hereof, will be free from defects in material and workmanship and will be free of all liens and encumbrances and will conform to any affirmation of facts made on the container or label; (3) be adequately contained, packaged, marked, labeled and/or provided in compliance with all applicable federal and state laws and regulations (including materials deemed hazardous); (4) be performed within the rules and regulations of the Occupational Safety and Health Act of 1970 (as amended); (5) be produced or transferred or disposed of as required by federal and state laws and regulation under the conditions of the Toxic Substances Control Act; the Hazardous Materials Control and Hazardous Waste Regulations; and other toxic laws and programs. Seller further expressly agrees to protect, indemnify, and hold harmless City, its employees and agents for any loss, damage, fine, liability, fee (including reasonable charges and fees) or expense arising in connection with or resulting from Seller's failure to furnish materials or supplies or perform services that conform with any warranty contained herein. (6) have good marketable title. GOVERNING LAW: This P.O. shall be governed by the laws of the State of California. INDEPENDENT CONTRACTOR, INSURANCE: Seller certifies, by acceptance, that he/she is an independent contractor. Seller shall protect, defend, and indemnify and hold City harmless against all damages, liability, claims, losses and expenses (including attorney's fees) arising out of , or resulting in any way from Seller's negligence in providing the goods or services purchased hereunder or from any act or omission of Seller, its agents, employees, or subcontractors, Seller shall maintain such public liability insurance, including contractual liability, automobile and general public liability, (including non-owned automobile liability) Worker's Compensation, and employer's liability insurance as well adequately protect City against such damage, liabilities, claims, losses, and expenses (including attorney's fees). Seller agrees to submit certificates of insurance, evidencing its insurance coverage when requested by City. EQUAL OPPORTUNITY CLAUSE: By acceptance of this P.O., Seller certifies it is in compliance with the Equal Opportunity Clause required by Executive Order 11246, as amended, and the Palo Alto Municipal Code, as amended, including Affirmative Action Compliance Programs for Veterans; Handicapped; and Minority Business, and other equal opportunity programs. FORCE MAJEURE: City may delay delivery or acceptance occasioned by causes beyond its control. Seller shall hold such materials, supplies, services and or installations at the direction of City and shall deliver them when the cause affecting the delay has been removed. City shall be responsible only for Seller's direct additional costs in holding the goods or delaying performance of this P.O. and City's request. Seller shall also be excused if delivery is delayed by unforeseen events beyond its reasonable control, provided Seller notifies City as soon as they occur. City may cancel this P.O. if such delay exceeds thirty (30) days from the original delivery date. Seller shall use its best efforts to grant preference to this P.O. over those of other customers, which were placed after this P.O. AUTHORITY OF AGENT OR FACTOR: Seller represents that, whenever it executes this P.O. on behalf of a third party as an agent or factor, it shall disclose the existence of the agency or factor relationship to City. Seller shall be deemed to have the legal authority to enter into this P.O. with City on behalf of the third party. INTERPRETATION OF CONTRACT DOCUMENTS: In the event of a conflict between the terms of this P.O. and the attached specification with respect to any obligation of Seller, the provision which impose the greater obligations upon Seller shall prevail. CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE PAGE 2 OF 3 ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS: Seller agrees to comply with the City's Environmentally Preferred Purchasing Requirements. (1) Hazardous Waste: Seller shall take-back all spent or otherwise discarded hazardous products sold to the City by the Seller if the spent or discarded products are classified as hazardous or universal wastes by State or Federal regulations. Seller shall provide convenient collection and recycling services (or disposal services if recycling technology is unavailable) for all universal wastes, which originate from the Vendor. Hazardous waste manifests or bills of lading must be provided to City staff upon request. Recycling and reuse of hazardous wastes must occur within the United States. Universal waste lists and information are available www.dtsc.ca.gov/HazardousWaste/UniversalWaste/. A hazardous waste list is available at http://www.calrecycle.ca.gov/LEA/Training/wasteclass/yep.htm. Additional information can be obtained by contacting the City of Palo Alto Hazardous Waste Department at (650) 496-6980. (2) Zero Waste and Pollution Prevention: Per Palo Alto City Council policy, the City is targeting to achieve Zero Waste by 2021. The City must also meet Municipal Regional Stormwater Permit requirements requiring no visible impact from litter via stormdrains by 2022. To that end the vendor, manufacturer and or contractor must individually or collaboratively comply with the waste reduction, reuse and recycling requirements of the City's Zero Waste and Pollution Prevention Programs. Seller acknowledges and agrees that if Seller fails to fully and satisfactorily comply with these requirements, the City will suffer, as a result of Seller's failure, substantial damages which are both extremely difficult and impracticable to ascertain. Therefore, the Seller agrees that in addition to all other damages to which the City may be entitled, in the event Seller fails to comply with the below requirements Seller shall pay City as liquidated damages the amounts specified below. The liquidated damage amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer as a result of such non-compliance. Sellers shall adhere to the standard that all printed materials provided to the City that are generated from a personal computer and printer including, proposals, quotes, invoices, reports, and public education materials shall be double-sided, printed on a minimum of 30% post-consumer content paper or greater unless otherwise approved by the City's Environmental Services Division (650) 329-2117. Materials printed by a professional printing company shall be a minimum of 30% post-consumer material or greater and printed with vegetable based inks. Liquidated damages of $30 per document will be assessed by City for failure to adhere to this requirement. All paper packaging must be Forest Stewardship Council (FSC) Certified. All primary, secondary and shipping (tertiary) packaging be minimized to the maximum extent feasible while protecting the product being shipped. All primary, secondary and shipping packaging shall be recyclable in the City's recycling program. A complete list of items accepted for recycling are found at www.zerowastepaloalto.org or by calling (650) 496-5910. If any portion is received that does not meet this requirement, liquidated damages of $235 or a minimum of $50 if the combined product and shipping cost is $235 or less will be assessed by City for failure to adhere to this requirement. Expanded foam plastics (e.g., foam or cushion blocks, trays, packing 'peanuts'), such as but not limited to polystyrene (aka Styrofoam[tm]), polypropylene, or polyurethane shall not be used as primary, secondary or tertiary/shipping packaging with the following exceptions: o Primary packaging made from these materials may be used if the vendor, manufacturer, contractor individually or collaboratively does one of the following: (a) takes the material back at the City's convenience and at no cost to the City, or (b) pays the City of Palo Alto's disposal costs via payment of liquidated damages of $235, or a minimum of $50 if the combined product and shipping cost is $235 or less. o Bioplastics that meet ASTM D6400 standards for compostability may be accepted with approval from the City's Environmental Services Division subject to local municipal compost facility requirements. o If approved by the City's Environmental Services Division, a packaging requirement may be waived if no other viable packaging alternative exists. Reusable/returnable pallets shall be used and taken back by the Seller, at no additional cost to the City. Seller shall provide documentation upon request ensuring reuse of pallets and/or recycling of broken pallets. Liquidated damages of $262 or a minimum of $50 if the combined product and shipping cost is $262 or less will be assessed by City for failure to adhere to this requirement. (3) Energy and Water Efficiency: Seller shall provide products with an ENERGY STAR, Water Sense or State of California standard rating, whichever is more efficient, when ratings exist for those products. A life cycle cost analysis shall be provided to the City upon request and shall at minimum include: first cost, operating costs, maintenance costs, and disposal costs. Contacts for additional information about City of Palo Alto Hazardous Waste, Zero Waste and Utilities programs: Hazardous Waste Program (Public Works) (650) 496-6980 Zero Waste Program (Public Works) (650) 496-5910 Watershed Protection (650) 329-2117 Energy Efficiency (650) 496-2244 (4) Liquidated Damages: Seller agrees that failure to comply with the City's Environmentally Preferred Purchasing Requirements will result in Liquidated Damages, according to the table marked Liquidated Damages on page 3 of this P.O. Event of Non-Performance Recycled Paper Use Failure to use 30% recycled content paper Recyclable Packaging Materials Failure of Seller to use secondary and shipping packaging that is recyclable in the City's recycling program. Expanded Foam Plastics Unapproved use of expanded foam plastics for secondary or shipping packaging Pallet Use Failure of Seller to take-back and reuse pallets, recycling only broken pallets, at no additional cost to the City. Acceptable Performance Level (Allowed events per Fiscal Year) 1 1 0 1 Liquidated Damage Amount $30 per each document $235 or a minimum of $50 if the combined product and shipping cost is $250 or less will be incurred if this is not adhered to. $235 or a minimum of $50 if the combined product and shipping cost is $235 or less $262 or a minimum of $50 if the combined product and shipping cost is $2 or less CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE NONCOMPLIANCE WITH ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS, LIQUIDATED DAMAGES: The following table lists the events that constitute breaches of the Agreement's standard of performance warranting the imposition of liquidated damages; the acceptable performance level, and the amount of liquidated damages for failure to meet the contractually required standards of performance. PAGE 3 OF 3 Dear Mayor and Council Members, On behalf of City Manager Ed Shikada, please find below the staff responses to questions from Councilmember Tanaka on the Monday, June 19 Council Meeting consent agenda items. Consent Calendar Item 4: Approval of Construction Contract Number C23187877 with Casey Construction, Inc. in the amount of $410,604, Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $41,060, and approval of a FY 2023 Budget Amendment in the Stormwater Management Fund for the Trash Capture Device Installation Project, Capital Improvement Program Project SD-22002; CEQA status – exempt under CEQA Guideline Section 15303. 1.When comparing the hourly rate of the staff’s salary to the average hourly rate of these jobs in California, the staff is receiving more than double the salary than the average employee. For example, the 75th percentile of the hourly rate of a senior engineer and engineer is $58 and $51.31 respectively. However, this is only 41% and 50% of what the staff proposed, which is $140 for a senior engineer and $102.09. Why is this discrepancy so vast? Staff response: The staff rates provided in the Agreement in the Staff Report are higher than California averages because they represent the full cost of each position, in addition to geographic differences. This rate is comprised of the base hourly rate for the employee plus the cost of all benefits (i.e., pension, medical, dental, vision, etc.). 2.The document states that an additional $230,578.00 is allotted to consultant support but does not mention the specifics. What is the breakdown of this cost? Staff response: On August 15, 2022, Council approved a design contract in the amount of $230,578 (base contract) with Schaaf & Wheeler for the design and construction administration support for the Trash Capture Device Installation project. A detailed scope of work and task order cost breakdown can be found in Exhibit A and Exhibit C in the contract https://www.cityofpaloalto.org/files/assets/public/public-works/engineering-services/cip- contracts/id.-14424-schaaf-wheeler-c22184896.pdf. Consent Calendar Item 9: A Purchase Order with One Workplace (Attachment B) for the Public Safety Building Capital Project (PE-15001) in an amount not to exceed $480,229, including $436,572 for basic services and $43,657 for contingency. 1.Why are manufacturing costs for Herman Miller and its subsidiaries set to increase on July 1, 2023, and will the City face increased costs on our end because of this? Staff response: Staff noted the pending price increase and wanted to take advantage of the lower costs as it is more economical for the City. Approval of the staff recommendation will allow the Purchase Order to be placed in time to avoid the annual cost increase that Herman Miller typically has at the beginning of July. 2.How was the report conducted to determine the quantity of FF&E needed for the PSB, and did the report account for increased remote work post the COVID-19 pandemic? Staff response: The quantity of FF&E needed for the PSB is based on the programs and budgeted FTE for staff who will be assigned to the building from Police, Fire Adm inistration, and the Office of Emergency Services. Increased remote work was not considered for this facility because these work groups have limited remote work options given the assignments they perform.