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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: February 5, 2024
Staff Report: 2312-2339
TITLE
Approval of Amendment Number 1 to Contract Number S21180652 With Eric Gouldsberry Art Design (EGAD), in the Amount of $170,000 for Graphic Design Services to Extend the Term for Additional Two Years; for a Total Not-to-Exceed Amount of $410,000 over the Five-year Term; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager or designee to execute Amendment No. 1 to contract S21180652 (Attachment B) with Eric Gouldsberry Art Design (EGAD) for the continued provision of on-call graphic design services, to extend the term for an additional two years in an amount not-to-exceed $170,000, for a revised total contract not-to-exceed amount of $410,000 over the five-year term of the agreement. There are no changes to compensation rates listed in Exhibit C-1 of the original contract (Attachment A).
On January 21, 2021, Staff entered into a contract agreement with Eric Gouldsberry Art Design (EGAD) for graphic design services for the Utilities Department. This was a three-year contract term in the amount of $80,000 per year for a total not to exceed amount of $240,000. The contract expires January 22, 2024. Staff recommend amending the contract and extending the term for another two years in the amount of $85,000 per year, with a total not to exceed amount $170,000, to continue graphic design services for the Utilities Department.
BACKGROUND
The City of Palo Alto Utilities (CPAU) is responsible for communication and outreach to its more than 29,000 utility customers for critical Utilities management and operations. This includes:
utility billing, capital improvement, infrastructure operations and maintenance, rates and financial information, and safety. Federal and State requirements and local City Council policies dictate the need for energy and water efficiency savings programs, as well as greenhouse gas emissions reductions through sustainability and climate action, electrification for homes and
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buildings, electric transportation (vehicles including cars, bikes, etc.), and educational programs such as workshops and community outreach events.
These programs and services are intended to reach all sectors of Palo Alto’s population including residents, businesses, institutional and industrial customers. Graphic design services required for these communication efforts include CPAU’s traditional outreach: utility bill inserts, flyers, brochures, and illustrative reports, print and digital ads, social media, newsletters, website; as well as dynamic media content including videos. The City does not have in-house staff capable of meeting these needs.
CPAU’s mission is to provide safe, reliable, cost-effective, and sustainable services. Safety is a top priority and CPAU is required by Federal and State agencies to implement robust public awareness plans and outreach campaigns for safety through its communication channels. Public information addresses the safety of operations and maintenance for our infrastructure, reliability, and quality of our resource supplies, and informs customers of their responsibilities to act safely around utilities infrastructure. Another primary area of focus is on CPAU’s financial costs, revenues, and utility rates. CPAU continually strives to communicate the value of safe, reliable, and quality utility resources CPAU procures and delivers to meet customer needs. CPAU is implementing new technologies that directly impact customers such as advanced metering infrastructure (AMI) for utility billing and efficiency, an enhanced power outage management system, and fiber-to-the-premises (FTTP) for residential and commercial customers.
In April 2016, the Palo Alto City Council adopted an aspirational greenhouse gas (GHG) emissions reduction goal of 80% below 1990 levels by 2030 (80x30). In October 2022, City Council passed an ambitious carbon neutrality by 2030 goal, building on 80x30. In June 2023, City Council adopted the 2022 Sustainability and Climate Action Plan (S/CAP), prioritizing several initiatives for community programs. As of 2021, Palo Alto’s GHG emissions were 54% below 1990 levels.
Primary paths utilized by the Utilities Department to contribute toward these sustainability goals include managing a progressive Renewables Portfolio Standard with a 100% carbon neutral electric supply, carbon neutral gas portfolio, energy and water efficiency programs, educational services, and programs for beneficial electrification of homes and buildings, and adoption of electric vehicles (EVs).
CPAU offers education and outreach about services and customer programs including but not limited to the following topics:
•Customer service, billing, and meter reading
•Utilities safety, infrastructure capital improvement, operations, and maintenance •Resiliency
•Utilities rates
•Energy (gas and electric) conservation and efficiency
•Water supply, quality, conservation, and efficiency
•Renewable energy
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•Electrification and sustainability
CPAU anticipates launching new programs in the next several years to achieve goals for sustainability and climate action. Several programs will target beneficial electrification for small-to-medium businesses, and commercial, institutional, and industrial customers. CPAU is continually evaluating ways to scale up or enhance existing programs to drive greater participation, allowing us to meet mandates or goals for energy and water efficiency and GHG reductions.
Regulatory requirements are expanding to increase public awareness about utilities safety, infrastructure projects, and resource supply management. Staff are finding it necessary to provide more outreach and notifications to customers on these issues. With the vast number of programs and services currently offered by CPAU, as well as augmented programs and public awareness requirements, professional graphic design services are critical to enable CPAU to meet these communication needs.
Bid Process
The City issued a Request for Proposal through PlanetBids on October 15, 2020 to identify providers with experience working with municipal utilities to provide graphic design services.
Proposals were due on November 2, 2020. Table 1 summarizes the solicitation process:
Table 1: Summary of Solicitation Process
Proposal Description Utilities Graphic Design Services
(RFP 180652)
Length of Service 3 years
Number of notices sent to vendors 283
Number of proposals downloaded by vendors 18
Bids received 12
Based on the evaluation, staff selected EGAD because of their municipal experience, skillset, and lowest cost proposal. The award of the contract does not guarantee EGAD will be assigned any dollar amount, quantity, or type of graphic design service projects.
FISCAL/RESOURCE IMPACT
Funding of $85,000 is available in the fiscal year 2024 Utilities Department Operating Budget.
Funding for subsequent years of the amendment is subject to Council’s approval of each fiscal year’s budget appropriation.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because approval of this contract amendment is an organizational or administrative activity of government that will not result in direct or indirect changes in the environment, under CEQA Guidelines section 15378(b)(5). 3 6
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ATTACHMENTS
Attachment A: Contract with Eric Gouldsberry Art Design (EGAD) Contract #S21180652 Attachment B: Contract with Eric Gouldsberry Art Design (EGAD) Contract #S21180652, Amendment No.1
APPROVED BY:
Dean Batchelor, Director of Utilities
Staff: Catherine Elvert, Utilities Communications Manager