HomeMy WebLinkAbout1980-08-19; City Council; 6047-1; Modification Consulting Contract Price WaterhouseCITY OF CARLSBAD
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Ac.eNDABILLNo. &011-~.;1=.I l ·~f iJ~~
Initial: Dept.l!dJ-&-
DATE: August 19, 1980 C. Atty. r. ,
DEPARTHENT: Finance C. Ngr. a ------------------
Subject: Modification of Consulting Contract with Pl'ice Haterhouse
Statement of the Matter
On :lovember 6, 1979 the City Council approved a consulting co1'tract with Price
Waterhouse for the· purpose of selecting a computer system. This contract
included a 1 not to exceed price of $11,000'. The contract also referred to
the P/W proposal which indicated the scope of the project involved and a time
table for completion.
After numerous delays the process has gotten underway. However, the scope of
the evaluation and review process has been significantly expanded from the
original proposal. Primarily, the City required that 19 RFP's be sent out
whereas P/W 1 s r;ontract indicated 6 to 8. Of the 19 RFP's mailed out, 14 were
returned with vendors proposa 1 sys terns. This is two to three times the number
originally expected by P/W.
The number of RFP 1 s requiring review have expanded the need for P.H's services.
The staff is requesting that ths contract with Price Waterhouse be ammended to
reflect a 1 not to exceed price of $16,000', an increase of $5,000.
EXHIBITS
Meioo to City Manager Dated August l, 1980
Contract with Price Waterhouse
Price Waterhouse proposal (on file with City Clerk)
FISCAL IMPACT
The 1980-81 budget contains $31,000 appropriated for the computer project. The
use of $5,000 from this account bri,gs the total available to $2G ,000. A fiscal
impact of the computer purchase will not be known until a system is finally
selected. At that time a ful 1 report will be made to the Council.
RECOMMENDATIONS
Approve a change in the contract with Price Waterhouse increasing the contract
limit to $16,000.
Council Action:
8-19-80 council approved a change in the contract with Price Waterhouse increasing the
contract to a maximum of $16,000.
M E M O R A N O U M
Date:
To:
From:
Subject:
August 10, 1980
Frank Aleshire, City Manager '1·
Jim Elliott, Finance Directo,:..,-' .,
Modification of Contract with Pr ce Waterhouse
During the past few months, the Finance Department Staff has been working
closely with the Price Waterhouse consulting firm on the 5eler.tion ·'fa
computer system. During this time, it has become evident that the original
estimate of work required on the part of our consultant was underestimated.
This creates a problem in contract administration between the City and
Price Waterhouse which ~hould be resolved.
The i)roblem stems from the additional analysis and vendor contact required
due to the maning of 19 Requests for Proposal instead of the six to eight
originally spelled out in the Price Waterhouse proposal for services. Out
of the 19 RFP 1s, fourteen proposals were rec:eived. This is two to three
times the number originally expected.
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Considerable effort has been required to evaluate, review and rank thP.
fourteen proposals on both the part of the Staff and Price Waterhouse. At
this time, Price Waterhouse has invested 54 hours above the budgeted time
on these reviews.
I have prepared an Agenda Bill for the council meeting of August 19, 1980
to ask the City Council to amend the contract with P/W to allow payment for
those hours directly related to the expansion of scope of the subject. The
54 hours already invested plus the time required to visit computer sites of
about 20 hours total about 74 hours. At a rate of about $70/per hour, this
amounts to about $5000.
This increase~ the 'Not to Exceed 1 price of the consulting contract to $16,000
from the original $11,000.
AGREEMENT
1979, b~tween the CITY corporation of the ~tate
of California, hereinafter referred to as CITY, and Price Waterhouse
and Company hereinafter referred to as CONSULTANT.
RECitALS
WHEREAS, tha City has determined that it is necess~ry and in the
public interest to replace the existing computer system; and
WHEREAS, due to the technical nature of this piece of equipment
the City Council has decided to retain a professional consulting firm
to develop bid specifications or proposal criteria for the hardware
and software, evaluate oids or p1·oposals received and make recommenda-
tions thereon to the City Council; and
WHEREAS, the Consultant has the qualifications to evaluate said
proposals nnd make recommendations to the City Council; and
WHERilAS, the Consultant represents that neither he nor any member
of his staff has boen employed by a vendor of computer equipment within
two years past; and
WHEREAS, it is m1derstood that the Consultant shall be an inde-.
pendent contr.actor of tho CH,y;
NOW, ·mmrnFORE, in consideration of their mutunl convcnants and
conditions, ~h, parties hereto agree as follows:
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1. DUTIES OF THE CONSULTANT
Price Waterhouse and Company, the City's designated
consultant, agrees to provide the services as listed in
the attached Request foT Proposal. These services shaH
include, but not be limi:ted to, the following~
(a) Prepare bid specifications and,'or methodology £01"
selection of the computer hardware and software.
(b) Prepare review criteria to be used in evaluating
the bids or proposals received,
(c) Assist city staff in the presentation of specifi-
~atio~s and criteria to the city council for
approval.
(d) Review and evaluate vendor's proposals for the
(e)
(f)
(g)
computer system.
Negotiate as necessary with vendors.
Recommend to the city council a computer system.
Supervise the installation and initial testing of
the computer hardware and software.
2. DUTIES OF THE CITY
(a) The City ,-1ill make payment to the Consultant as
provided in this agreement.
(b) The City will make available to the Consultant any
records, studies, or other information in its
possession related to the proposed project.
(c) The Cit)' will designate to Consultant in w1·iti.ng
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the representatives authorized to act for it under
this agreement.
(d) The City will assist Consultant in arranging meetings
necessary to conduct the services herein.
(e) The City will examine documents submitted by the
Consultant, render decisions, aid advise Consultant
as promptly as possible to avoid unreasonable delay
in the progress of Consultant's work.
3. TERMINATION OF AGREEMENT
The City may terminate this agreement at any time by giving
written notice to the Consultant of such termination and
specifying the effective date thereof, at least fi-ftecn
days before the effective date of such termination. In that
event, all finished or unfinished documents and othei materials
prepared pursuant to this agreement shall, at the option of
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the City, become its property.
4. RELEASE OF INFORMATION BY CONSULTANT
Any reports, information or other data, prepared or assembled
by the Consultant under this agreement shall not be made
available to any individual or organization by the Consultant
without the prior wri tteu app1·oval of the City.
S. OWNERSHIP,_ PUBLICATION, REPRODUCTION /\ND USE OP REPORTS
AND 0'11,!!IB .MATERIAL
All documents and materials prepared pursuant to this agreement
are the property of the (:ity. The City shall have the unre-
stricted authority to publish, disclose, distribute and
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otherwise use, in whole or in part, any report, data, or
other materials prepared under this agreement.
6. PAYMENT
The Consultant will be paid a maximum of $11,000.00 for all
work necessary to carry out the requirements of this agreement.
Consultant shall bill the City for all services on a monthly
basis for services rendered during the previous calendar
month. Payment shall be made within fifteen days of receipt
by the City of the Consultant's invoice in proper form.
Invoices shall be in duplicate and shall include itemization
clearly showing the individual amount of each item of service.
7. TIME COMPLETION
Consultant shall agree to schedule completion of the services
provided in this agreement within sixty (60) days after the
installation of the ::omputer hardware.
8. LIMITS OF THE OBLIGATION
The limits of the obligation of the City under this agreement
is in the sum of $11,000.00 lv-hich amount is estimated to be
sufficient to compensate the Consultant for all services
performed hereunder during the terms of this agreement. In
the event at any time it appears to the Consultant that said
sum may not be sufficient, he shall immediately so notify the
City Manager. He will not perform any work or incur any
obljgation beyond said sum of $11,000.00 without appropriate
amendment to this ng1·ccment.
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9·. HOLD HARMLESS
The Consultant will indemnify t:!le City against and hold it
harmless from all and any cost, expense, or liability for
damages on account of injury or death to persons of damage
to property resulting from or arising out of or in any way
connected with the performance by Consultant of this agree-
ment, including the defense of any action arising therefrom.
Consultant will reimburse the City for all costs, expenses
and losses incurred by it in consequent of any claims, demands
and causes of action which may be brought against it by a
person arising out of the performance by Consultant of this
agreement.
10. MAINTAIN INSURANCE
Consultant shall, at all times that this agreement ls in
effect or the premises are occupied by Consultant, cause
to be maintained in force and effect an insurance pSlicy
or policies which will insure and indemnify both City and
Consultant against liability or financial loss resulting
from injuries ,occurring to persons or property in or about
the premises or occurring as a result of any acts or activity
of Consultant. The liability under such insurance policy
shall be not less than $100,000 for any one person injured
or .$300,000 for any one accident and $50,000 for property
damage. The policy shall be written by a responsible company
or companies to be approved by City, and shall be noncancelahle
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except on ten day's written notice to City. Su~h policy
shall name City as co-assured and a copy of such policy
shall be filed with the City Clerk.
11. INDEPENDENT CONTRACTOR
Consultant in accordance with his status as an independent
contractor, covenants and agrees that he will conduct himself
consistent with such status, that he will neither hold himself
out as nor claim to be an officer or employee of the City by
reason hereof, and that he will not by reason hereof, make
an)' _!aim, demand, or application to or for any right or
privilege applicable to an officer or employee 0£ the City
including, but not limited to, workmen's compensation coverage>
unemployment insurance benefits, social security coverage, or
retirement membership credit.
12. ASSIGNMENT OF CONTRACT
Consultant shall not assign this contract or any part thereof
or any monies due or to become due thereunder without the
prior wirtten consent of the City.
13. SUBCONTRACTING
The Consultant shall not subcontract any of the work to be
performed under this contract by Consultant, without prior
approval from the City Manage1·. If any subcontr.icting is
approved, the Consultant shall be fully responsible to the
City for the acts and omissions of it subcontractor and of
the persons either directly or indirectly employed by its
subcontractor, as it is for thn acts and omissions of persons
directly employed by it. Nothing contained in this c:mtract
shall create any contractual relationship between any sub-
contractor of Consultant and the City. The Consultant shall
bind every subcontractor of a subcontractor by the Lerms of
this contract applicable to its work unless specifically
noted to the contrary in the subcontract in question approved
in writing by the City.
14. PROHIBITED INTEREST
No official of the City who is authorized in such capacity
and on behalf of the City to negotiate, make, accept or
' approve, or to take part in negotiating, making, accepting
or approving any architectural, engineering, inspection,
construction, or material supply contract or any subcontract
in connection with the construction of the project, shall
become directly or indirectly interested personally in this
contract or in any part hereof. No officer, employ~e,
architect, attorney, engineer or,inspector of or for the
City who is authorized in such capacity and on behalf of
the City to exercise any executive, supervisory or other
similar functions in connection with the performance of this
contract shall become directly or indirectly interested
personally in this contract or any part thereof.
15. VERBAL AGREEMENT OR CONVERSATION
No verbal agreement or conversation with any officer, agent
or employee of the City, eithcT before, during or after
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the executing of this contract, shall affect or modify any
of the terms or obligations herein contained, nor such verbal
agreement or conversation entitle the Consultant to any
additional payment whatsoever under the terms of this contract.
IN WITNESS WHEREOF, the parties hereto have eY.ticuted this agreement
on the day and year first above written.
CITY OF CARLSBAD PRICE WATERHOUSE AND COMPANY
• PACKARD., Mayor ~n~~--~ ~ .. ~ ~a. ......... 'fi4.
APPROVED AS TO FORM:
ttorney_