HomeMy WebLinkAbout2022-11-15 Finance Committee Action MinutesFINANCE COMMITTEE
ACTION MINUTES
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Special Meeting
November 15, 2022
The Finance Committee of the City of Palo Alto met on this date in the
Community Meeting Room and by virtual teleconference at 5:30 P.M.
Present In-Person: Burt, Filseth, Kou
Present Virtually:
Absent: DuBois (Chair)
Agenda Items
1. Approval of a Construction Contract With Anderson Pacific Engineering
Construction (APEC) in the Total Amount of $161,846,500; Approval of
Three Amendments to Existing Agreements with: 1) Stanford University,
2) East Palo Alto Sanitary District, and 3) Mountain View and Los Altos;
Approval of Amendment #2 to Contract Number C19171565 with Brown
& Caldwell to Add Services, to Increase Compensation by $1,484,689
for a New Maximum Compensation Not-to-Exceed $5,908,791, and to
Extend the Contract Term through March 31, 2028; Approval of
Amendment #2 to Contract Number C21176592C with Carollo Engineers
to Add Construction Management Services, to Increase Compensation
by $8,237,021; approval of a resolution to increase Clean Water State
Revolving Fund financing to $193,000,000; approval of a budget
appropriation increasing revenue and expenses; and approval of an
exception to Debt Policy 1-65 for the Secondary Treatment Upgrades
Project (WQ-19001) at the Regional Water Quality Control Plant.
MOTION: Council Member Filseth moved, seconded by Mayor Burt to
recommend the City Council:
1. Approve and authorize the City Manager or their designee to execute
the construction contract (Contract) with Anderson Pacific Engineering
Construction, Inc. (APEC), in the amount of $161,846,500 for the
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Sp. Finance Committee Meeting
Action Minutes: 11/15/2022
Secondary Treatment Upgrades (STU) project, funded in Wastewater
Treatment Enterprise Fund Capital Improvement Program (CIP) project
WQ-19001, at the Regional Water Quality Control Plant;
2. Authorize the City Manager or their designee to execute one or more
change orders to the contract with APEC for related, additional but
unforeseen work that may develop during the project, the total value of
which shall not exceed $16,184,650 or 10% of the contract amount, for
a total not-to-exceed amount of $178,031,150;
3. Approve Amendment No. 8 to the agreement between Palo Alto and
Stanford University (Attachment A); Addendum No. 1 to the Agreement
between Palo Alto and the East Palo Alto Sanitary District (Attachment
B); and Addendum No. 11 to the agreement among Palo Alto, Mountain
View, and Los Altos (Attachment C);
4. Approve and authorize the City Manager or their designee to execute
Amendment No. 2 to Contract No. C19171565 with Brown and Caldwell
(BC) (Attachment D) to increase the contract amount by $1,484,689 to
provide design engineering services beyond the original scope of the
contract for the design of the STU Project (CIP WQ-19001), and to
extend the term through March 31, 2028. The revised total contract
amount is not to exceed $5,908,791 including $5,371,628 for basic
services and $537,163 for additional services;
5. Approve and authorize the City Manager or their designee to execute
Amendment No. 2 to Contract No. C21176592C with Carollo Engineers
(Attachment E) to increase the contract amount by $8,237,021 to
provide construction management and inspection services during
construction for the STU Project (CIP WQ-19001). The revised total
contract amount is not to exceed $8,841,268 including $8,037,516 for
basic services and $803,752 for additional services;
6. Approve a resolution amending Resolution 9945 (Attachment F) to
increase the reasonably expected maximum principal amount of funding
to $193,000,000 for design and construction of the Secondary
Treatment Upgrades (CIP WQ-19001) and authorizing reimbursement
of such funding from the Clean Water State Revolving Fund (SRF);
7. Approve an amendment to the FY 2023 Budget Appropriation for the
Wastewater Treatment Fund (requires a 2/3 majority vote) by:
a. Increasing revenue from Other Agencies estimate from a State
Revolving Fund Loan by $44,200,400
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Sp. Finance Committee Meeting
Action Minutes: 11/15/2022
b. Increasing the Secondary Treatment Upgrades capital project
(WQ-19001) appropriation by $44,200,400; and
8. Authorize an exception to City Policy and Procedures Debt Policy 1-65
Guideline V.A.6 to allow the Wastewater Treatment Enterprise Fund to
use a debt limit exceeding 15 percent of annual Wastewater Treatment
Enterprise Fund operating expenses.
MOTION PASSED: 3-0
2. Staff and the Utility Advisory Commission Recommend that the Finance
Committee Recommend the City Council Adopt a Resolution Amending
the EHRA (Electric Hydro Rate Adjuster) Rate Schedule, Increasing the
Current EHRA Rate to $0.026/kwWh Effective January 1, 2023
NO ACTION TAKEN: Item continued to the November 29, 2022 Finance
Committee Meeting
Future Meetings and Agendas
Adjournment: The meeting was adjourned at 6:38 P.M.