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HomeMy WebLinkAboutStaff Report 2405-3100CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, September 09, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     5.Approval of Purchase Order with West Coast Energy Systems LLC (PO 4525000045) for a Total Not-to-Exceed Amount of $478,041 to Purchase two (2) Portable Power Generators for Water Pump Stations in the Amount of $458,031; and Authorize the City Manager or Their Designee to Negotiate and Execute Change Orders in the Amount of $20,000 for Related Additional but Unforeseen Work. CEQA Status: Exempt Under CEQA Guidelines Section 15301 (Minor Alteration of Existing Facilities) Consent Questions City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: September 9, 2024 Report #:2405-3100 TITLE Approval of Purchase Order with West Coast Energy Systems LLC (PO 4525000045) for a Total Not-to-Exceed Amount of $478,041 to Purchase two (2) Portable Power Generators for Water Pump Stations in the Amount of $458,031; and Authorize the City Manager or Their Designee to Negotiate and Execute Change Orders in the Amount of $20,000 for Related Additional but Unforeseen Work. CEQA Status: Exempt Under CEQA Guidelines Section 15301 (Minor Alteration of Existing Facilities) RECOMMENDATION Staff recommends that the City Council: 1. Approve and authorize the City Manager or their designee to execute purchase order 4525000045 with West Coast Energy Systems LLC (WCES) in the amount of $458,041 for the purchase of two (2) portable power generators for the foothills area water pump stations, utilizing a cooperative purchase agreement via Sourcewell, a cooperative purchasing agency serving government and not-for-profit organizations and 2. Authorize the City Manager or their designee to negotiate and execute one or more changes to purchase order 452500045 with WCES for related unforeseen permitting, start-up, and commissioning work, which may develop during the project. The total value of which shall not exceed $20,000 or 4.7% of the contract amount for a total not- to-exceed amount of $478,041. BACKGROUND The City’s 2020 Wildfire Mitigation Plan identified the need for an assessment of diesel- powered back-up generators for the water utility system. Water utility staff assessed the need in 2021 and identified specific sites to ensure proactive pumping of water to pressure zones susceptible to fire threat and power supply interruption events. Staff completed generator sizing and load calculations for the generators at two specific water facility sites located along Page Mill Road south of Highway 280: Dahl Reservoir Pump Station and Park Reservoir Pump Station. Back-up generator receptacles and transfer switches have been installed at these two pump station facilities, and the generators can be deployed to the sites upon delivery of the units from the material supplier. ANALYSIS Staff evaluated the back-up power generation needs for all the water facility sites, and as identified in the Utility Wildfire Mitigation Plan, two pump station facility sites in the upper pressure zones south of Highway 280 needed a power generator as a mitigation activity to restore power after a wildfire or a power grid de-energization event. Placing generators at critical pump station facilities is an established industry practice, referenced in the American Water Works Association Manual of Practice M31: Distribution System Requirements for Fire Protection and Manual of Practice M19: Emergency Planning for Water Utility Management from. The Park and Dahl pump station sites are the only remaining pump station facilities in the City’s water utility distribution without standby power generators. Both facilities are in higher risk fire areas and have a need for back-up power generation. The City currently has back-up generators at the other pumping facilities which have greater operational uses. This recommendation aligns the City with industry best practices and proactively responds to hazards and threats to the water distribution system’s reliability. Staff calculated power loads and generator sizing for the Dahl Reservoir Pump Station and Park Reservoir Pump Station, and prepared technical specifications for generator performance and maintenance requirements for the two power generation units. Procurement Process A comprehensive scope of work was prepared and a request for proposals was published on December 14, 2023, on the City of Palo Alto’s e-procurement website (OpenGov), with a bid opening date of January 19, 2024. The City received one (1) bid, which staff rejected as non- responsive. When competitive bids have been solicited and no bids meeting the requirements have been received, the project is not otherwise required to be formally bid under PAMC Section 2.30.360(c). The City is a member of Sourcewell, a cooperative purchasing program for government agencies. Cooperative purchases are permitted under section 2.30.360(j) provided the Procurement Officer determines that the solicitation methods are substantially similar to the City’s, and the contract – here, the City’s standard purchase order - is consistent with the City’s requirements. A quote was received February 21, 2024, from WCES. Staff evaluated WCES and found the firm to be well qualified to procure, furnish to site, and maintain the two generator units. WCES has sufficient capacity and proper certifications to be a qualified vendor and maintenance technician, and their cost quote for the generator units was approximately 15% lower than the original engineer’s estimated cost. WCES is a qualified supplier under the Sourcewell program and will be procuring the generators through the Sourcewell program for a reduced market cost. Staff recommends award to WCES. Below is the procurement summary table, from the December 14, 2023, solicitation: TABLE 1: Summary of Bid Responses Project Bid Name/Number RFP189734 Purchase of Portable Generators Proposed Length of Project 3 years Number of Bid Packages Downloaded N/A Total Days to Respond to Bid 33 Mandatory Pre-Bid Meeting No Number of Company Attendees at Pre-bid Meeting N/A Number of Bids Received 1 Base Bid Price Range N/A Public Link to Solicitation https://procurement.opengov.com/portal/palo -alto-ca/projects/72555 FISCAL/RESOURCE IMPACT Funding of $428,740 to purchase the power generators and funding of $20,000 contingency are available in the FY 2025 Water System Supply Improvements CIP Budget WS-11004. STAKEHOLDER ENGAGEMENT Procurement of new power generators for City’s water system 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, or minor alteration of existing facilities) because the backup generators involve no expansion of the existing use and the pump facilities have pre-existing receptacles and switch gears to receive emergency generator power. ATTACHMENT Attachment A: West Coast Energy Systems LLC PO-4525000045 APPROVED BY: Dean Batchelor, Director of Utilities Staff: Patrick LaBruzzo, Principal Engineer Award in accordance with Sourcewell #43092. Also Report # 2405-3100 Meeting Date: September 9, 2024. PM: Patrick LaBruzzo x4527 patrick.labruzzo@cityofpaloalto.org All approval drawings/Submittals to be sent to Patrick LaBruzzo 0010 330kVA Mobile Generator 1 EA 144,138.00 144,138.00 Generac Mobile diesel engine-driven generator set MDE330, consisting of the following features and accessories: # Skidded Unit # Prime Duty Rating # CSA Certified # Standard Alternator o 277/480VAC Three Phase, 60Hz o 120/208VAC Three Phase, 60Hz # Permanent Magnet Generator (PMG) Excitation # 2 Position Linkboard with Voltage Switch # Buck Transformer # Main Output Connection Lugs # Convenience Receptacles o (2) 120V, 20A GFCI Duplex Receptacles NEMA 5-20R o (3) 120/240V, 50A 3-Pole 4-Wire Twistlock Receptacles CS6369 # Single Wall Fuel Tank Vendor Address WEST COAST ENERGY SYSTEMS LLC ENERGY SYSTEMS HOLDINGS INC 7100 S LONGE ST SUITE 300 STOCKTON CA 95206 Tel: 2099869826 Bill To: Utilities Engineering City of Palo Alto 1007 Elwell Court Palo Alto CA 94303 Ship To: MSC Stores Warehouse City of Palo Alto 3201 E. Bayshore Rd. Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer 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 4525000045 Date 07/25/2024 Vendor No.108249 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to ship bestway Required Date 07/10/2025 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 5 # Engine Fluid Containment # Engine Fluid Containment Sensor # Group 31, 950 CCA Batteries # Battery Charger, 30 Amp # Deep Sea Electronics 8610 MKII Controller # Block Heater, 2500 Watt, 120V # 50/50 Coolant (50% Ethylene Glycol) # RD0330XG229.3D18BPLY4 0020 570kVA Mobile Generator 1 EA 206,245.00 206,245.00 Generac Mobile diesel engine-driven generator set MDE570, consisting of the following features and accessories: Vendor Address WEST COAST ENERGY SYSTEMS LLC ENERGY SYSTEMS HOLDINGS INC 7100 S LONGE ST SUITE 300 STOCKTON CA 95206 Tel: 2099869826 Bill To: Utilities Engineering City of Palo Alto 1007 Elwell Court Palo Alto CA 94303 Ship To: MSC Stores Warehouse City of Palo Alto 3201 E. Bayshore Rd. Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer 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 4525000045 Date 07/25/2024 Vendor No.108249 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to ship bestway Required Date 07/10/2025 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 2 of 5 # Skidded Unit # 570kVA Rating # Prime Duty Rating # CSA Certified # 18.1L Perkins Engine o 6 Cylinder, Turbocharged/Aftercooled o EPA Tier 4 Final o CARB # Standard Alternator o 277/480VAC Three Phase, 60Hz o 120/208VAC Three Phase, 60Hz # Permanent Magnet Generator (PMG) Excitation # 2 Position Linkboard with Voltage Switch # Buck Transformer # Main Output Connection Lugs # Convenience Receptacles o (2) 120V, 20A GFCI Duplex Receptacles NEMA 5-20R o (3) 120/240V, 50A 3-Pole 4-Wire Twistlock Receptacles CS6369 # Single Wall Fuel Tank # Engine Fluid Containment # Engine Fluid Containment Sensor # Group 31, 950 CCA Batteries # Battery Charger, 30 Amp # Deep Sea Electronics 8610 MKII Controller # Block Heater, 2500 Watt, 120V # 50/50 Coolant (50% Ethylene Glycol) # RD0570XG22181D18BPLY4 Vendor Address WEST COAST ENERGY SYSTEMS LLC ENERGY SYSTEMS HOLDINGS INC 7100 S LONGE ST SUITE 300 STOCKTON CA 95206 Tel: 2099869826 Bill To: Utilities Engineering City of Palo Alto 1007 Elwell Court Palo Alto CA 94303 Ship To: MSC Stores Warehouse City of Palo Alto 3201 E. Bayshore Rd. Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer 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 4525000045 Date 07/25/2024 Vendor No.108249 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to ship bestway Required Date 07/10/2025 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 3 of 5 0030 Trystar Mobile Generator Cables 1 EA 12,272.00 12,272.00 Trystar Mobile Generator Cable Set # TSPC40BK75-MF-BOYWG-SET o Set of 5 Black UL 1650 Listed Power Cables o 4/0 75 Ft with Male / Female Cam Locks o Color Coded (Brown, Orange, Yellow, White, Green) o Labeled # Property of City of Palo Alto # TSPC40BK3-MB-BOYWG-SET o Set of 5 Black UL 1650 Listed Power Cables o 4/0 3 Ft with Male / Bare o Color Coded (Brown, Orange, Yellow, White, Green) o Labeled # Property of City of Pa 0040 Training on Generator functions 2 EA 3,100.00 6,200.00 0050 3 Year Maintenance Agreement 1 EA 28,635.00 28,635.00 0060 Rodent Proofing with metal screens 1 EA 10,100.00 10,100.00 Vendor Address WEST COAST ENERGY SYSTEMS LLC ENERGY SYSTEMS HOLDINGS INC 7100 S LONGE ST SUITE 300 STOCKTON CA 95206 Tel: 2099869826 Bill To: Utilities Engineering City of Palo Alto 1007 Elwell Court Palo Alto CA 94303 Ship To: MSC Stores Warehouse City of Palo Alto 3201 E. Bayshore Rd. Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer 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 4525000045 Date 07/25/2024 Vendor No.108249 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to ship bestway Required Date 07/10/2025 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 4 of 5 0070 BAAQMD Permitting by WCES 2 EA 5,975.00 11,950.00 0080 Preliminary Notice Filing Fee 1 EA 200.00 200.00 ------------------------- Sub-Total 419,740.00 Sales Tax 38,301.28 *** ORDERING VIA EMAIL *** **** PRICE HAS BEEN QUOTED **** Vendor Address WEST COAST ENERGY SYSTEMS LLC ENERGY SYSTEMS HOLDINGS INC 7100 S LONGE ST SUITE 300 STOCKTON CA 95206 Tel: 2099869826 Bill To: Utilities Engineering City of Palo Alto 1007 Elwell Court Palo Alto CA 94303 Ship To: MSC Stores Warehouse City of Palo Alto 3201 E. Bayshore Rd. Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer Total 458,041.28 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 4525000045 Date 07/25/2024 Vendor No.108249 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to ship bestway Required Date 07/10/2025 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 5 of 5 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 see staff responses below for questions from Council Member Tanaka on the Monday, September 9 Council Meeting. Item 3: Approval Request for Increased Carbon Permit Budget in Response to Rising Compliance Costs 1. Considering the recurring nature of our compliance costs, can you explain why the staff report does not propose a multi-year emission reduction strategy to mitigate the need for future budget increases? Specifically, what steps have been taken to ensure we won’t be in a similar position next year, facing another request for additional funds? Staff response: The Sustainability and Climate Action Plan (S/CAP) is the multi-year emissions reduction strategy intended to achieve the community’s climate goals, and it has the side effect of mitigating compliance costs for the carbon allowances the State requires us to purchase on behalf of our gas customers. In each year’s budget, staff updates its projections of compliance costs to reflect changing cap and trade program market conditions. 2. The staff report emphasizes immediate financial compliance, but why does it lack a detailed analysis of alternative strategies, such as investments in energy efficiency or renewable projects, that could reduce our carbon footprint and long-term costs? Can you clarify why these alternatives were not fully explored or integrated into the proposal, given their potential to lower our reliance on carbon permits? Staff response: These strategies are being pursued in parallel via the S/CAP. The ability to avoid the cost of purchasing carbon allowances is included in financial analyses of S/CAP programs. 3. Given Palo Alto’s reputation as a leader in sustainability, why doesn’t the staff report address the potential reputational risks of relying heavily on permit purchases without a corresponding increase in direct emission reduction initiatives? How does the proposal align with our city’s long-term environmental goals and the expectations of our community and partners, who look to us for leadership in climate action? Staff response: As long as the community still uses natural gas, and as long as the enabling legislation is in place, the California Air Resources Board will require the City’s gas utility to purchase these allowances. This is unavoidable. The City will continue to aggressively seek to reduce emissions via its S/CAP programs. Future reports on the topic of carbon allowance purchases can note this. Item 5: Approval for Purchase of Emergency Portable Generators for Water Utility Backup in High-Risk Zones 1. The staff report indicates that the city plans to invest nearly $480,000 in diesel-powered generators, yet there is no clear analysis of their alignment with Palo Alto’s aggressive climate action goals or potential financial risks due to future emissions regulations. Can the city manager clarify why renewable options, such as solar or hybrid generators, weren’t seriously considered, especially given the evolving regulatory landscape around diesel emissions? How does this decision prepare us for future environmental obligations and potential carbon taxes? Staff response: The project aligns with Climate Goal S7 of the City of Palo Alto 2022 Sustainability and Climate Action Plan (Collaborate on Reducing Wildfire Hazards) and the project aligns with the City of Palo Alto Utilities Wildfire Mitigation Plan. Emission and fuel regulations and requirements have been identified and portable trailer generators were selected instead of permanent generators based on compliance requirements. The project includes emission permitting and equipment maintenance for a 3-year period. The purchase price for the generators is less than the cost to rent the generators for the same 3-year period. Staff considered alternative solutions, however, the alternatives are either not feasible at the site (such as solar) or not cost effective (such as batteries). Generators are for emergency standby and as part of emergency handling it is important that equipment is aligned citywide for response efficiency (for example, the City owns a diesel tanker that can be used for emergency refueling if needed). 2. The staff report does not mention any public consultations or outreach to environmental groups, particularly given the size of this investment and its long-term implications for the community. Can you explain why there wasn’t a formal public engagement process, especially with residents living in areas that would be directly affected by the generator deployment? What mechanisms does the city have to ensure community input is factored into large-scale decisions like this, especially in a city as committed to environmental leadership as Palo Alto? Staff response: This project was included in the City of Palo Alto Utilities Wildfire Mitigation Plans and follows industry best practices. The two sites are abutting park land, residents will experience no additional impact when the equipment is used. There are no residents within ¼-mile of site #1; a standby generator is already leased and on standby at Site #2,. The impact to residents for not doing the project is water loss during an extended public safety power shutoff (PSPS) and reduced wildfire protection. Alternative Long-term implication would be no back-up power supply and loss of water in an emergency to two pressure zones 3. The staff report mentions West Coast Energy Systems as the contractor of choice, yet it omits a detailed analysis of their qualifications for handling public utility infrastructure projects of this magnitude. Given their limited reviews, prior licensing issues, and unclear experience with projects critical to public safety, what guarantees does the city have that they are equipped to manage this effectively? Additionally, what specific performance metrics, penalties, or contingencies are built into the contract to ensure accountability and protect the city from delays, cost overruns, or performance failures? Staff response: West Coast Energy Systems exceeds qualifications for this work. In 2011, Water Utility Engineering Staff obtained letters of recommendation for a similar generator projects from other utilities and have since successfully completed multiple generator projects at Palo Alto water utility facilities, over the past 13 years. Performance metrics for power supply and voltage drop and overall performance are specified by manufacturer. Performance failures are covered by manufacturers warranties and guarantees. Failure to furnish generators to site, test, and permit generators will result in no payment to West Coast Energy Systems. Item 7: Approval of Southern Palo Alto Bicycle and Pedestrian Railroad Crossing Project Contract 1. Considering the limited exploration of alternative solutions in the staff report, can you specify what other approaches, such as enhanced at-grade crossings or different location options, were evaluated for improving safety and connectivity in Southern Palo Alto? How did the city ensure that the chosen solution is the most strategically sound and cost- effective, particularly considering long-term urban planning and infrastructure needs? Staff response: The work of this alternatives analysis is the exploration of alternatives, including an evaluation of enhanced at-grade crossings and different location options. The City has not chosen a solution, and this project will engage with the public to identify possible solutions for community and Council consideration. 2. The staff report doesn't provide a detailed projection of long-term maintenance costs for the proposed grade-separated crossings. Can you provide specific figures or estimates on these future costs and explain how they align with the city’s broader fiscal strategy? How does the city plan to mitigate the risk of these ongoing expenses potentially diverting funds from other critical infrastructure needs or services? Staff response: Long-term maintenance costs and other expenses will be evaluated in Task 4.2 (Evaluation Framework and Criteria) and further detailed in Task 5.4 (Implementation Plan), once design concepts for the grade-separated crossings are developed. 3. Given that the staff report emphasizes the project’s benefits for Southern Palo Alto without addressing broader citywide impacts, how has the city assessed the potential risk of public perception issues, particularly in areas that may feel underserved by this decision? What strategic measures are in place to ensure this project does not inadvertently create or exacerbate perceived inequities across different neighborhoods in Palo Alto? Staff response: The analysis builds on citywide planning studies showing that crossing opportunities are more abundant in northern areas, particularly downtown. This project aims to address the geographic imbalance disadvantaging Southern Palo Alto. Item 10: Approval of Construction Contract for Cubberley Field Restroom and Repairs 1. The staff report mentions initial community engagement, yet it does not account for the strategic importance of re-engaging the public now that the project details are clearer. How do we ensure that moving forward without additional consultation won’t lead to strategic misalignment with community expectations, potentially resulting in delays or increased project costs due to subsequent revisions or public dissatisfaction? Staff response: Staff conducts community engagement to receive community input that helps to determine the scope of a project. Once the scope of the project is approved by Council, staff’s further engagement is focused on communicating the impacts and progress of the work. 2. In light of the significant cost variability, the lack of a comprehensive risk assessment on the contractor's capability to handle this project, and the missed opportunity for strategic community re-engagement, how can we proceed with this approval without exposing the city to unnecessary financial and reputational risks? What strategic measures have been put in place to address these potential vulnerabilities, and how do we justify moving forward under these conditions? Staff response: While the bids do exhibit variability, soliciting multiple bids is intended to save the City money, as is the case in this instance. Staff does not see potential vulnerabilities as stated in the question. 3. Given the substantial discrepancies in cost estimates for key components such as mobilization and demolition, which deviate significantly from industry standards and other bids, how confident are we that the lowest bid accurately captures the true scope of work? Specifically, what safeguards are in place to prevent these potential underestimations from resulting in costly change orders or budget overruns later in the project? Staff response: It is very common for individual components of bids to deviate substantially from the Engineer’s bid estimates. Staff does not believe that this bid requires any additional safeguards as the contractor is required to complete the scope of work within the bid amount.