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HomeMy WebLinkAboutStaff Report 2410-3550CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, October 21, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     10.Approval of 1) Increase of Construction Contingency for Contract No. C21178123B with Swinerton Builders in the Amount Not-to-Exceed $1,000,000; 2) Increase of Construction Contingency for Contract No. C23186775 with L.D. Strobel Co., Inc. in the Amount of $25,000; 3) Increase of Contingency for Purchase Order No. 4523000432 with Pivot Interiors in the Amount of $40,000 in the Capital Improvement Fund for the New Public Safety Building Capital Project (PE-15001); CEQA – Environmental Impact Report for the New Public Safety Building and New California Avenue Area Garage (Resolution 9772) City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: October 21, 2024 Report #:2410-3550 TITLE Approval of 1) Increase of Construction Contingency for Contract No. C21178123B with Swinerton Builders in the Amount Not-to-Exceed $1,000,000; 2) Increase of Construction Contingency for Contract No. C23186775 with L.D. Strobel Co., Inc. in the Amount of $25,000; 3) Increase of Contingency for Purchase Order No. 4523000432 with Pivot Interiors in the Amount of $40,000 in the Capital Improvement Fund for the New Public Safety Building Capital Project (PE-15001); CEQA – Environmental Impact Report for the New Public Safety Building and New California Avenue Area Garage (Resolution 9772) RECOMMENDATION Staff recommends that Council: 1. Approve an increase of construction contingency for Contract No. C21178123B with Swinerton Builders in the amount not to exceed $1,000,000 for a total contract contingency amount not to exceed $10,392,800; 2. Approve an increase of construction contingency for Contract No. C23186775 with L.D. Strobel Co., Inc. in the amount of $25,000 for a total contract contingency amount not to exceed $66,449; and 3. Approve an increase to the contingency for Purchase Order No. 4523000432 with Pivot Interiors, Inc in the amount of $40,000 for a total contingency amount not to exceed $132,169. BACKGROUND The New Public Safety Building (PSB) (PE-15001) and New California Avenue Area Parking Garage (PE-18000) projects are among ten key projects included in the 2014 Council Infrastructure Plan. The PSB was identified as the plan’s highest priority project and is tied together with the parking garage project with respect to the California Environmental Quality Act (CEQA). The parking garage opened in December 2020. On February 1, 2021, Council approved the award of the construction contract for the PSB to Swinerton Builders and authorized execution and delivery of one series of Certificates of Participation in an amount not to exceed $120 million to finance the PSB construction.1 The PSB construction is anticipated to receive a temporary certificate of occupancy (TCO) in December 2024. On March 6, 2023, Council approved a construction contract with L.D. Strobel Co., Inc. in the amount of $455,935 for the purchase and installation of radio antennas.2 On, June 19, 2023, Council approved a Purchase Order with Pivot Interiors in the amount of $756,021 to provide cubicle and office furniture for the new PSB.3 On June 17, 2024, Council approved additional contingencies to the construction contract with Swinerton Builders and the Purchase Order with Pivot Interiors in the amounts of $1,000,000 and $23,440, respectively.4 ANALYSIS The PSB is one of the most complex projects that the City has constructed to date. Given its complexity, since the PSB construction contract was awarded in early 2021, there have been change orders addressing issues of unforeseen site conditions, owner requested changes, design clarifications, and required changes due to authorities having jurisdiction, which are agencies that are responsible for enforcing codes and regulations. In addition, since change order costs are based on current construction costs rather than bid amounts, the significant escalation of construction costs over the past several years has impacted the project and the use of the contingency. On June 17, 20244, Council approved a $1,000,000 additional contingency amount for the PSB construction contract. As of September 2024, that contingency has been nearly used on multiple change orders including smoke control for the detention area, sally port coiling doors, and a number of other items needed to address code compliance and Americans with Disabilities Act (ADA) matters that are required to receive a TCO. Staff expects to receive a TCO in the next several weeks and an additional $1,000,000 is recommended to provide enough contingency authorization to continue to evaluate and process valid change orders needed for work required for TCO as the project nears completion. Due to the length of time it has taken to construct the PSB, additional funding authority is needed for existing contracts. •For the construction contract with L.D. Strobel Co., Inc., the original contract approved by Council on March 6, 2023 included base services of $414,486 and $41,449 for contingency. The existing contingency was used for the installation of additional lighting 1 City Council, February 1, 2021; Agenda Item #4, SR #11752, https://www.cityofpaloalto.org/files/assets/public/v/3/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-11752.pdf 2 City Council, March 6, 2023; Agenda Item #6, SR #2301-0886 https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/engineering-services/cip-contracts/sr2301- 0886-3.6.2023-psb-radio-antenna-contract.pdf 3 City Council, June 19, 2023; Agenda Item #9, SR #2304-1375, https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/engineering-services/cip-contracts/sr2304- 1375-6.19.2023-pivot-one-workplace-purchase-orders.pdf 4 City Council, June 17, 2024; Agenda Item #17, SR #2404-2929, https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/engineering-services/cip- contracts/s1b9gof.pdf and ground bars (electrical connections that divert undesirable current to protect humans and equipment). The additional $25,000 is needed for additional coordination and ground bars installation. •For the Purchase Order with Pivot Interiors (Attachment A), the original contract approved by Council on June 19, 2023 included base services of $687,292 and $68,729 for contingency. On June 17, 2024, Council authorized an additional $23,440 in contingency for prevailing wage increase and additional storage fees through June 2024. The additional $40,000 contingency request is for additional costs for increased rates after July 1, 2024, project management and onsite lead coordination fees, and stair- carrying and double handling due to constricted space onsite. Staff is currently working on a contract amendment with the construction manager Cumming Group, formally known as Nova Partners, Inc., for construction management services through the end of the project and will bring that contract amendment to Council in November. FISCAL/RESOURCE IMPACT The Public Safety Building project (PE-15001) has remained within the design and construction budget of $115,632,064 stated at the time of the construction contract award. The recommendations in this report also are within that stated total project cost for design and construction. There have been overages against this project for salary and benefits costs that have affected the total project budget of $118.6 million as of the FY 2025 Adopted Budget. These additional salary and benefit charges total $937,000 and will increase the total project budget to $119.5 million. These charges will be corrected as part of CMR#2405-3061, Approval of Fiscal Year 2024 Reappropriation Requests to Fiscal Year 2025, scheduled for Council approval on October 21, 2024. Once this technical corrective action is approved, the project will be appropriately budgeted for design and construction expenses of $115,632,064, allowing for sufficient funding for the recommendations included in this report. Salary and benefits costs for capital projects are fully budgeted in the Capital Improvement Fund and any additional salary and benefit needs for this project will be addressed at Fiscal Year 2025 year-end through the Capital Improvement Fund Administration project (AS-10000). STAKEHOLDER ENGAGEMENT Staff provides monthly updates on PSB construction through the PSB’s project webpage and newsletter. ENVIRONMENTAL REVIEW An Environmental Impact Report for the PSB and the New California Avenue Area Parking Garage was prepared and was certified by Council on June 11, 20218, by adoption of Resolution No. 9772.5 5 Resolution 9772, https://www.cityofpaloalto.org/files/assets/public/v/1/city-clerk/resolutions/reso- 9772.pdf?t=40475.53 ATTACHMENTS Attachment A: Pivot Purchase Order #4523000432 APPROVED BY: Brad Eggleston, Director Public Works/City Engineer "This Second Amended and Restated Purchase Order with Pivot Interiors, Inc., effective as of 10/21/2024, hereby amends and restates the Amended and Restated Purchase Order No. 4523000432 dated 06/30/2023 with Pivot Interiors, Inc. This Second Amended and Restated Purchase Order hereby supersedes that Amended and Restated Purchase Order dated 06/20/2023." 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 procurement of Herman Miller Office furniture, project management, procurement of equipment and assembly services as detailed in this PO. Pivot Interiors, Inc. is an authorized dealer and sub-contractor of Herman Miller, Inc. All the furniture is fabricated specifically for the PSB. Installation is part of the original PO. However, due to delays in the completion of the Public Safety Building, Contractor has not been able to deliver any furniture in accordance with the PO and has been storing the furniture. Storage costs were not covered under the original PO. In addition, due to the delay in completing the PSB, there is a labor surcharge due to an increase in prevailing wages from the previous quote for the PO in 2023. Pivot Interiors, Inc. Department of Industrial Relation Registration Number is 1000018735. 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: ASD City of Palo Alto 250 Hamilton Avenue Palo Alto CA 94301 Ship To: Public Works Engineering City of Palo Alto 250 Hamilton Ave., 6th Floor Palo Alto CA 94301 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 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 03/11/2024 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 7 This Project is subject to prevailing wages and related requirements as a "public works" under California Labor Code Sections 1720 et seq. and related regulations. Contractor is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the City has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations ("DIR"). Copies of these rates may be obtained at the City's Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, website (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. Contractor shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.), including, but not limited to, Sections 1720, 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.), as amended from time to time. DIR Registration and Other Requirements. 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: ASD City of Palo Alto 250 Hamilton Avenue Palo Alto CA 94301 Ship To: Public Works Engineering City of Palo Alto 250 Hamilton Ave., 6th Floor Palo Alto CA 94301 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 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 03/11/2024 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 7 General Notice to Contractor. City requires Contractor and its Subcontractors to comply with all applicable requirements of the California Labor Code including but not limited to Labor Code Sections 1720 through 1861, and all applicable related regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Additional information regarding public works and prevailing wage requirements is available on the DIR website (see e.g. http://www.dir.ca.gov) as amended from time to time. Labor Code section 1771.1(a). City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads: "A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded." DIR Registration Required. 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: ASD City of Palo Alto 250 Hamilton Avenue Palo Alto CA 94301 Ship To: Public Works Engineering City of Palo Alto 250 Hamilton Ave., 6th Floor Palo Alto CA 94301 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 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 03/11/2024 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 3 of 7 City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its Subcontractors are registered with the California Department of Industrial Relations ("DIR") to perform public work, subject to limited exceptions. Posting of Job Site Notices; Compliance Monitoring. City gives notice to Contractor and its Subcontractors that Contractor is required to post all job site notices prescribed by law or regulation and Contractor is subject to compliance monitoring and enforcement by DIR. Certified Payroll. Contractor shall furnish certified payroll records directly to the Labor Commissioner (DIR) in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section 16461). City requires Contractor and its Subcontractors to comply with the requirements of Labor Code section 1776, including but not limited to: (i)Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, Contractor and its Subcontractors, in connection with the Project. 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: ASD City of Palo Alto 250 Hamilton Avenue Palo Alto CA 94301 Ship To: Public Works Engineering City of Palo Alto 250 Hamilton Ave., 6th Floor Palo Alto CA 94301 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 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 03/11/2024 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 4 of 7 (ii)The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its Subcontractors, respectively. (iii)At the request of City, acting by its Project Manager, Contractor and its Subcontractors shall make the certified payroll records available for inspection or furnished upon request to the City's Project Manager within ten (10) days of receipt of City's request. 0 City requests Contractor and its Subcontractors to submit the certified payroll records to the City's Project Manager at the end of each week during the Project. (iv)If the certified payroll records are not provided as required within the 10-day period, then Contractor and its Subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof. (v)Inform the City's Project Manager of the location of Contractor's and its Subcontractors' payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the City's Project Manager within five (5) business days of any change of location of those payroll records. 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: ASD City of Palo Alto 250 Hamilton Avenue Palo Alto CA 94301 Ship To: Public Works Engineering City of Palo Alto 250 Hamilton Ave., 6th Floor Palo Alto CA 94301 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 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 03/11/2024 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 5 of 7 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 39,073 USD 1.00 39,073.30 0020 PIVOT Freight & Install PSB 121,957 USD 1.00 121,956.77 0030 PIVOT Materials PSB 526,261 USD 1.00 526,261.33 0040 PIVOT Contingency 108,729 USD 1.00 108,729.14 0050 Addtl Strg Fees & Prvlng Wage 21,480 USD 1.00 21,480.00 ------------------------- Sub-Total 817,500.54 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 Works Engineering City of Palo Alto 250 Hamilton Ave., 6th Floor Palo Alto CA 94301 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 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 03/11/2024 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 6 of 7 Sales Tax 1,960.05 *** 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 Works Engineering City of Palo Alto 250 Hamilton Ave., 6th Floor Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer Total 819,460.59 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 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 03/11/2024 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 7 of 7 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