HomeMy WebLinkAboutStaff Report 2403-2746CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, May 20, 2024
Council Chambers & Hybrid
5:30 PM
Agenda Item
7.Approval of Purchase Order 4524000375 with Meiden American Switchgear for the
Purchase of Seven (7) 60KV Circuit Breakers for the Colorado Substation in an Amount
Not to Exceed $713,023 for FY 2024; CEQA Status: Exempt Under CEQA Guidelines
Section 15302 (Replacement of Existing Structures)
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: May 20, 2024
Staff Report: 2403-2746
TITLE
Approval of Purchase Order 4524000375 with Meiden American Switchgear for the Purchase of
Seven (7) 60KV Circuit Breakers for the Colorado Substation in an Amount Not to Exceed
$713,023 for FY 2024; CEQA Status: Exempt Under CEQA Guidelines Section 15302
(Replacement of Existing Structures)
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or designee to
execute Purchase Order 4524000375 with Meiden American Switchgear to procure seven (7)
replacement 60KV vacuum power circuit breakers for Colorado Substation in the amount of
$713,023 (Attachment A).
BACKGROUND
The circuit breaker is a device that interrupts high voltages and currents during switching or
fault conditions on the sub-transmission system. These devices require regular maintenance
and routine testing to ensure proper operation. The circuit breakers in Colorado Substation are
operational, however, they have exceeded their normal life of 30-40 years. Replacement parts
are no longer readily available, and one breaker of the same vintage experienced a major
component failure and required replacement in 2017. Additionally, these breakers utilize 1,000
gallons of mineral oil as the interrupting medium. This oil requires regular maintenance
pumping into temporary containers and extensive measures must be taken to prevent spills
that can enter the adjacent Matadero Creek. Replacing the existing oil circuit breakers with
vacuum breakers will permanently remove approximately seven thousand gallons of oil from
the substation and thus reduce the risk of environmental contamination or pollution. For these
reasons, staff recommends these breakers be replaced with modern circuit breakers that use
vacuum as interrupting mediums.
ANALYSIS
The City’s Utilities engineers evaluate the sub-transmission systems on an ongoing basis,
including replacement of existing facilities. After a comprehensive evaluation of the sub-
transmission system at the Colorado Substation and in alignment with the City's commitment
to electrification, staff recommends the replacement of the oil circuit breakers at the Colorado
Substation.
The City's long-term electrification goal demands a proactive approach to ensure the reliability
and efficiency of the transmission system. The outdated components at the Colorado
Substation pose a potential risk to the system's performance, especially considering the
anticipated increase in load as part of the City’s Sustainability and Climate Action Plan (S/CAP)
electrification initiative.
Through the modernization efforts, the City is not only safeguarding the integrity of the
substation but also future proofing infrastructure to meet the growing demands of an
electrified city. This strategic recommendation aligns with industry best practices and positions
the City to seamlessly integrate into the evolving energy landscape while upholding our
commitment to providing a reliable and sustainable energy source for the community.
Procurement Process
City staff posted a formal request for quotation on December 19, 2023 on the City of Palo Alto’s
e-procurement website (OpenGov), notifying 2,891 providers with a bid opening date on January
24, 2024.
The City received three (3) bids. DoubleTree Systems was rejected due to not meeting the
required specifications. Morgan Ingland and Meiden American Switch Gear both quoted the
same switch gear that met City specifications. Meiden American Switch Gear is the lowest bid.
Below is the procurement summary table:
FISCAL/RESOURCE IMPACT
Funding for the $713,023 to purchase the circuit breakers is available in the FY 2024 Electric CIP
Budget under Capital Improvement Project EL-89044 (Substation Facilities Improvements.)
STAKEHOLDER ENGAGEMENT
Procurement of new 60 KV circuit breakers for City’s substations does not involve or impact any
stakeholders.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act (CEQA)
pursuant to CEQA Guidelines 15301 (repair, maintenance, of existing facilities) and 15302
(replacement or reconstruction of existing facilities).
ATTACHMENTS
Attachment A: Circuit Breakers Purchase Order 4524000375
APPROVED BY:
Dean Batchelor, Director of Utilities
Staff: Rick Baptist, Principal Electric Engineer
Table 1: Summary of Request for Quotation
Project Bid Name/Number
RFQ 18 PURCHASE AND DELIVERY Purchase and Delivery
of Seven (7) 72.5KV Substation Circuit Breakers
RFQ 189908
Proposed Length of Project May 20, 2024 -May 8, 2025
Number of Bid Packages Downloaded by
Contractors
4
Total Days to Respond to Bid 26
Mandatory Pre-Bid Meeting No
Number of Company Attendees at Pre-Bid
Meeting
N/A
Number of Bids Received 3
Base Bid Price Range $713,022.77 -$768,725.60
Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto-
ca/projects/87752
Award in accordance with RFQ189908 dated January 24, 2024 and
Staff Report 2403-2746 May 6, 2024.
0010 72.5KV circuit breakers 7 EA 93,342.86 653,400.02
In accordance with specification for Outdoor, Vacuum, 72.5 KV,
Separate-Pole, Dead-Tank, Dead-Front Circuit Breaker dated
11/21/2023.
PM: Rick Baptist x6902 richard.baptist@cityofpaloalto.org
-------------------------
Sub-Total 653,400.02
Sales Tax 59,622.75
*** ORDERING VIA EMAIL ***
**** PRICE HAS BEEN QUOTED ****
Vendor Address
MEIDEN AMERICA SWITCHGEAR INC
2200 N OLD LAURENS RD
GRAY COURT SC 29645
Tel: (949)852-1006
Bill To:
Utilities Engineering
City of Palo Alto
1007 Elwell Court
Palo Alto CA 94303
Ship To:
Utilities Engineering
City of Palo Alto
1007 Elwell Court
Palo Alto CA 94303
Item Material/Description Quantity UM Net Price Net Amount
______________________________________
Chief Procurement Officer
Total 713,022.77
THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGESPECIFICATIONS - 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 4524000375
Date 03/07/2024
Vendor No.108196
Payment Terms Payment Due 30 days
FOB Point F.O.B Destination
Ship via Vendor to ship bestway
Required Date 05/08/2025
Buyer/Phone Renee Howard / 650-496-5900
Email renee.howard@cityofpaloalto.org
DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER
ARRANGEMENTS ARE INDICATED HEREIN
Page 1 of 1
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