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HomeMy WebLinkAboutStaff Report 191-07City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE:APRIL 16, 2007 CMR: 191:07 SUBJECT:APPROVAL OF A BUDGET AMENDMENT ORDINANCE IN THE AMOUNT OF $250,000; AND APPROVAL OF A CONTRACT WITH RMC WATER & ENVIRONMENT, INC. IN THE AMOUNT OF $242,700 FOR COMPLETION OF A RECYCLED WATER FACILITY PLAN AND PREPARATION OF ENVIRONMENTAL .DOCUMENTS FOR CAPITAL IMPROVEMENT PROGRAM PROJECT WS-07001 RECOMMENDATION Staff recommends that Council: Approve the attached Budget Amendment Ordinance (BAO) in the amount of $250,000, transferring $85,000 from the Water Rate Stabilization Reserve and $165,000 from the water operations and maintenance (O&M) budget to Capital Improvement Project (CIP) WS-07001, Water Recycling Facilities. ,.Approve and authorize the City Manager to execute a contract with RMC Water & Environment, Inc. (Attachment B) in a not-to-exceed amount of $242,700 for planning and engineering design services for the Recycled Water Expansion Capital Improvement Program Project (WS-07001), including $220,700 for basic services and $22,000 for additional services. BACKGROUND The City of Palo Alto currently uses recycled water produced at the Palo Alto Regional Water Quality Control Plant (RWQCP) for certain uses. These uses include: irrigation at the municipal golf course, Greer Park, and around the RWQCP; certain processes at the RWQCP;/maintenance of the duck pond; and enhancement of Emily Renzel Marsh. All of these uses are at City-owned facilities. The City of Palo Alto Utilities and the partners/owners of the RWQCP examined the feasibility of expanding the use of recycled water to serve additional City and commercial customers in the RWQCP service area in 1991 and 1992. This examination concluded with the publication of the April 1992 report, "Water Reclamation Master Plan for the Regional Water Quality Control Plant" (Master Plan). CMR:191:07 Page 1 of 6 In April 1995, the Council certified the Program Enviromnental Impact Report (EIR) for the projects identified in the Master Plan [CMR:217:95]. At that time, the Council decided not to go forward with the new projects as they were not cost-effective. Council directed staff to re- evaluate the projects in case of changed conditions such as: 1) changes in the RWQCP discharge permit requirements; 2) increased mass loading to the RWQCP; 3) requests by partner agencies of other local agencies; 4) availability of federal or other funds; and 5) supply-side issues, which may lead to increases in the value of recycled water from a water supply perspective, such as water supply cost, water supply availability, regulatory and legislative initiatives and advanced treatment for potable reuse. Since that time, a segment of the project identified in the Program EIR, an extension of the RWQCP’s recycled water system to Mountain View and Moffett Field, is moving toward construction. In addition, the wholesale costs of water fron-i the San Francisco Public Utilities Commission (SFPUC), the City’s primary water supplier, are projected to increase dramatically as projects are completed to upgrade SFPUC’s regional water system. In response to these changed circumstances, in July 2006, the City completed a Recycled Water Market Survey (RWMS) to update the 1992 Master Plan and re-examine the feasibility of extending the recycled water system to deliver water to end uses in Palo Alto. The 2006 RWMS identified a total potential demand of about 1,700 acre-feet per year (AFY) in Palo Alto and identified a project to serve about 840 AFY of recycled water demand. The RWMS also determined that the estimated cost of the recycled water from the project is higher than the expected future cost of water from the SFPUC. Therefore, the project does not appear to be cost-effective unless outside funding can be secured. Before the project can be considered for state and federal funding, additional planning and design~ work must be completed. Specifically, state grant funds require the completion of a Recycled Water Facility Plan. Therefore, staff solicited proposals from qualified consultants to complete such a plan and submitted an application for a planning grant from the State Water Resources Control Board to cover part of the cost of the plan. On November 20, 2006, the Council authorized the City to file a Water Recycling Facilities Planning Grant application in the amount of $75,000 with the State Water Resources Control Board (SWRCB) [CMR:415:06]. The City’s application for this planning grant was approved by the state. Attachinent C is the funding commitment from the SWRCB. DISCUSSION Additional state grant funds are expected to become available, including those from the recently passed State Propositions 84 and 1E. Funding may also be available from federal governnaent programs, the SFPUC’s Water System Improvement Program and the Santa Clara Valley Water District. However, there will be intense competition for these funds. Therefore, the primary objective of the Recycled Water Facility Plan is to further develop the project plan so that it is ready to implement and, thus, the project will be well-positioned to receive any available outside funding. CMR: 191:07 Page 2 of 6 Scope of Services Description The scope of work to be performed under the contract is to prepare a Recycled Water Facility Plan that meets all the requirements of the SWRCB. This project generally consists of analyses of all of the essential components of a potential expanded recycled water system to serve additional users in the City of Palo Alto. The tasks include: 1.Site Investigation - Conduct thorough site investigations as the basis to develop recycled water project alternatives and accurate cost estimates for the project. This investigation will include meetings with major potential users to confirm requirements. 2.Analysis of Project Alternatives and Recommended Facilities Plam~ing Project Develop and evaluate recycled water distribution system alternatives to serve the service areas identified in Task 1, develop a "project plan" and complete preliminary design for the recommended facilities. 3.Preparation of Financial & Revelme Plan - prepare a construction financing and revenue plan for the facilities recommended under Task 2, develop a pricing policy, and identify all potential outside funding sources for design and construction. 4.Enviromnental Documentation - Prepare the environmental review for the recommended facilities so that the City can move forward with the design and construction of the facilities. 5.Public Outreach Prepare fact sheets, outreach materials, etc. to assist the City with public outreach; develop and conduct stakeholder and public meetings and workshops on the recycled water program. 6. Preparation of Facility Plan Reports - Prepare a Facilities Plmming Report that meets the SWRCB guidelines. 7. Development of User Agreements Assist in the development of elements that will become part of a user contract. The City will prepare the user agreement. 8. Project Management - Ensure coordination and communication between the consultant team and the City for the duration of the project, provide quality control on the study deliverables, and assure timely coordination with the SWRCB. The project is scheduled for completion by the end of FY 07-08. Summary of Solicitation Process A Request for Proposals (RFP) was issued on December 21, 2006 with proposals due February 6, 2007. The table below summarizes the solicitation process. CMR:191:07 Page 3 of 6 Proposal Description/Number Recycled Water Facility Plan and Preparation of Environmental Documents/RFP Number 120333 for Professional Services Proposed Length of Project 36 months Number of Proposals Mailed 17 (RFP also posted on the web) Total Days to Respond to Proposal 48 Pre-proposal Meeting Date None Number of Proposals Received:3 Company Name Location Selected for oral interview? 1. Carollo Engineers Walnut Creek, CA Yes 2. RMC Water and Enviro~ment San Jose, CA Yes 3. RBF Consulting Walnut Creek, CA Yes Range of Proposal Amounts Submitted $197,000 to $343,000 An evaluation committee consisting of staff from the RWQCP and Utilities reviewed the proposals. Three finns were invited to participate in oral interviews on February 28 and March 1, 2007. The comlnittee carefully reviewed each finn’s qualifications and submittal in response to the criteria identified in the RFP: 1.Specialized experience in the type of work; 2.Past performance and record of the firm and the proposed project team on similar projects; 3.Familiarity with issues associated with the project; 4.Qualifications of the project manager, lead engineer, and team; 5.Ability to organize and present material; 6.Good understanding of the objectives as evidenced by the completeness and clarity of the proposal and the inclusion of specifics and details that are essential for proposal evaluation; 7.Ability to work with the public, city officials, and agencies~ and 8.Familiarity with the guidelines and requirements of the State Water Resourdes Control Board and other funding requirements. RMC Water & Environment, Inc. was selected because the firm displayed the best understanding of the project’s objectives. In addition, RMC Water & Environment, Inc. has experience in similar projects, is familiar with the City’s project, has exceptional team qualifications, and has had success with securing grant funds for other client’s similar projects. RESOURCE IMPACT Prior to receiving the proposals in response to the RFP, staff anticipated that the cost to complete the requested scope of work would be $150,000. A total of $165,000, which includes $15,000 for possible additional tasks, is budgeted. However, all three of the consultants that responded to the RFP advised that completing the scope 0fwork would cost more than staff anticipated. Staff’s decision to include preparation of environmental document in the scope of work was the main reason for the cost rising above the anticipated cost for completion of a facilities plan. However, this is the appropriate time to prepare the enviromr~ental documents for the project and having them complete will make the project more competitive when seeldng grants for CMR: 191:07 Page 4 of 6 construction of the project. The cost to complete the scope of work is estimated at $242,700. Staff recommends a total of $250,000 be allocated to this project, providing an additional $29,300 to cover contract contingencies and staff time related to managing the contract and coordinating grant applications. The plamaing grant comrnitment from the State Water Resources Control Board is for half of the cost of the project up to a maximum of $75,000. Therefore, the cost to the city for the project is $175,000. ¯There is $165,000 currently budgeted for this project in the (O&M) budget for FY 06-07. °A Budget Amendment Ordinance (BAO) is required in the anaount of $250,000 to create a recycled water CIP (WS-07001). To fund the project, $85,000 will be transferred from the Water Rate Stabilization Reserve and $165,000 will come from the O&M budget. ¯The FY 07-08 budget contains the expected revem~e from the SWRCB of $75,000. ¯No impact to the General Fund. POLICY IMPLICATIONS Continuing the exploration of expanding the use of recycled water in Palo Alto is consistent with Council policy. The Council has supported this goal by its approval of the Water Integrated Resonrces Plan (WIRP) Guidelines in December 2003 [CMR:547:03], specifically, WIRP Guideline #3: Actively participate in development of cost-effective regional recycled water plans. Council’s Sustainability Policy supports the development of recycled water, specifically in the Policy’s statement to "reduce resource use and pollution in a cost-effective manner while striving to protect and enhance the quality of the air, water, land, and other natural resources." The City’s Comprehensive Plan contains Natttral Enviromnent Goal N-4: Water resources that are prudently managed to sustain plant and animal life, support urban activities and protect public health and safety. Specifically, Program N-26 addresses the use of recycled water: Implement incentives for the use of drought-tolerant landscaping and recycled water for landscape irrigation. ENVIRONMENTAL REVIEW This project is exempt from the California Envirolmaental Quality Act. Environmental review will be conducted in COlmection with the facility plan. NEXT STEPS After the facility plan and enviromnental doculnents are complete, staff will develop a recommendation on whether to proceed towards construction of the required facilities. The recommendation will then go to the Council for action. ATTACHMENTS A: BAO B:Contract No. 7120333 - Agreement Between the City of Palo Alto and RMC Water & Environment, Inc. for Professional Services CMR:191:07 Page 5 of 6 C:Grant Funding Commitment from the State Water Resources Control Board Water Recycling Facilities Plmming Grant Program D:Bid Summary E:CIP 2007-09 Budget, Page 21 PREPARED BY: JANE RATCHYE Senior Resource Planner DEPARTMENT APPROVAL: CITY MANAGER APPROVAL: Director of Ut~]’ties City Manager CMR: 191:07 Page 6 of 6 Attachment A ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PAL0 ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2006-07 TO ESTABLISH CAPITAL IMPROVEMENT ~PROGRAM PROJECT NUMBER WS-07001, RECYCLED WATER DISTRIBUTION SYSTEM EXTENSION AND TO PROVIDE AN APPROPRIATION IN THE AMOUNT OF $250,000 The Council of the City of Palo Alto does ORDAIN as follows: SECTION i. The City Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 12, 2006 did adopt a budget for fiscal year 2006-07; and B. The City of Palo Alto (City) currently uses water produced (recycled water) at the Palo Alto Regional Water Quality Control Plant (RWQCP) to irrigate the municipal golf course and Greer Park, maintain the duck pond, enhance the Emily Renzel Marsh and provide for certain processes at the RWQCP. All existing recycled water uses are at City-owned facilities; and C. The City and the partners/owners of the RWQCP examined the feasibility of expanding the use of recycled water to serve additional city and commercial customers in the RWQCP service area. The examination was concluded with the publication of the April 1992 report ~Water Reclamation Master Plan for the Regional Water quality Control"(Master Plan); and D. In April 1995, the City Council certified the Program Environmental Impact Report (EIR) for the projects identified in the Master Plan. At that time, the City Council decided not to proceed with the new projects as they were not cost-effective. The City Council advised City staff to reevaluate the.projects in case of changes of conditions occur such as changes in the RWQCP discharge permit requirements, increase of mass loading to the RWQCP, re.quests by partner agencies, availability of federal and other grants, and supply-side issues, which may lead to increases in the value of recycled water; and E. Since April 1995, a segment of that project~ an extension of the RWQCP’s recycled water system to Mountain View and Moffett Field is moving toward construction. In addition, the costs of wholesale water from the San Francisco Public Utilities Commission (SFPUC), the City’s primary water supplier, are projected to increase dramatically due to the completion of the upgrades of SFPUC’s regional water system. In response to these changes, the City completed in July 2006 a Recycled Water Market Survey to update the 1992 Master Plan and re-examine .the feasibility of extending the recycled water system to deliver water to end users in Palo Alto. The survey identified a potential demand of recycled water; and F. A new CIP project will need to be created for the Recycled Water Distribution System Extension (Project). The estimated cost of planning and environmental review work of the Project is $250,000. Funding will be provided by the Water Fund rate stabilization reserve of $85,000 and by a transfer of the operating budget to the capital budget of $165,000. A grant of $75,000 from the State Water Resources Control Board, projected to be received in fiscal year 2007-08, will reimburse the drawdown from the Water Fund rate stabilization reserve; and G. City Council authorization is needed to amend the 2006-07 budget as hereinafter set forth. SECTION 2. Capital Improvement Project (CIP) WS-07001, Recycled Water Distribution System Extension is hereby created. SECTION 3. The sum of Two Hundred Fifty Thousand Dollars ($250,000) is hereby appropriated to Capital Improvement Project Number WS-07001. SECTION 4. Revenue in CIP Project Number WS-07001 is increased by a transfer from the Water Fund operating budget in the amount of One Hundred Sixty Five Thousand Dollars ($165,000). SECTION 5. Revenue in CIP Project Number WS-07001 is increased by a transfer from the Water Fund rate stabilization reserve in the amount of Eighty Five Thousand Dollars ($85,000). SECTION 6. The Water Fund rate stabilization reserve is reduced by $85,000 to $3,541,000. SECTION 7. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 8.This project is Exempt from CEQA. Environmental review will be conducted in connection with the facility plan. SECTION 9. AS provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager City Attorney Director Department of Utilities Director of Services Administrative ATTACHMENT B CITY OF PALO ALTO CONTRACT NO.C07120333 AGREEMENT BETWEEN THE CITY OF PALO ALTO AAID RMC WATER AND ENVIRONMENT FOR PROFESSIONAL SERVICES (RECYCLED WATER FACILITY PLAN AND PREPARATION OF EhIVIRONMENTAL DOCUMENTS) This AGREEMENT is entered into , by and between the CITY OF PALO ALTO, a California Charter City and a municipal corporation of the State of California ("CITY"), and RMC WATER AND ENVIRONMENT, a California corporation located at 2290 North First Street, Suite 212, San Jose, CA 95131 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to prepare a Facility Plan in accordance with the State Water Resources Control Board’s Water Recycling Program Guidelines and preparation of environmental documents to expand the recycled water distribution System in Palo Alto("Services") . B. CONSULTANT has represented that it and any subconsultants have the necessary professional expertise, qualifications, and I, and all required ............ provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Serv±ces as more ~fully described in Exhibit "A", attached to and made a part of this Agreement. D. CONSULTANT has agreed to perform the Services on the terms and conditions contained in this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, this Agreement, the parties agree: AGREEMENT SECTION i. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through completion of the services unless terminated earlier pursuant to Section 21 of this Agreement. SECTION 3. SCHEDULE OF PERFORMA2qCE. 1 Time is of the essence in the 050310 performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit "B~, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed Two Hundred Twenty Thousand Seven Hundred Dollars ($220,700). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed Twenty Two Thousand Dollars ($22,000). The applicable rates and schedule of payment are set out in Exhibit "C", entitled "COMPENSATION," which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit ~C". CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit ’~A~. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit "C"). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by 2 CONSULTANT under this 050310 agreement shal! meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Sea-vices under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services CONSULTANT shall report immediately to the CITY’s project manager, in writing, any discrepancy or inconsistency it discovers in the laws, ordinances, regulations, orders, and/or guidelines in relation to the Project of the performance of the Services. All documentation prepared by CONSULTANT shall use due professional care to provide that all documentation prepared by CONSULTANT shall provide for a completed project that conforms to all applicable codes, rules, regulations and guidelines that are in force at the time such documentation is prepared. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, ~rcvided ~ gives notice ~o CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project.This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY’s stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION i0. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the-Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. The manner and means of conducting the Services are the responsibility of and under the control of CONSULTANT, except to the extent they are limited by applicable law and the express terms of this Agreement. 050310 CONSULTANT will be responsible for employing or engaging all persons necessary to perform the Services. All contractors and employees of CONSULTANT are deemed to be under CONSULTANT’S exclusive direction and control. CONSULTANT shall be responsible for their performance. SECTION II. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the work to be performed under this~ Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning such compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or,addsubconsultants only with the prior approval of the city manager or hisdesignee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Tom Richardson as the project director to have supervisory responsibility for the performance, progress, and execution of the Services to represent CONSULTANT during the day-to-day work on the Project. If circumstances or conditions subsequent to the execution of this Agreement cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director, and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The city manager will represent CITY for all purposes under this Agreement. Jane Ratchye is designated as the project manager for the CITY. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. 050310 SECTION 14. DUTIES OF CITY. To assist CONSULTANT in the performance of the Services, CITY will furnish or cause to be furnished the specified services and/or documents described in Exhibit "A" and such other available information as may be reasonably requested by CONSULTANT. SECTION 15. OWNERSHIP OF MATERIALS. 15.1. All drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests (including all copyrightable interests arising under the 1990 Architectural Works Copyright Protection Act) developed or discovered by CONSULTANT or any other person engaged directly or indirectly by CONSULTANT to perform the services required hereunder shall be and remain the property of CITY without restriction or limitation upon their use. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written, approval of the city manager or designee. The CONSULTANT is not responsible for CITY’s use of plans on other projects. 15.2. In addition to the provisions of Subsection 15.1., above, the following shall apply to all plans, drawings, speclfications, and related reports and.documents, and electronic equivalents (collectively "Plans") developed pursuant to this Agreement: 15.1.1. CITY shall have the right to reproduce and use the Plans forpurposes of the Project that is the subject of this Agreement, including, but not limited to, any use associated with construction, reconstruction, modification, management, maintenance, and renovation of the Project. 15.2.2. CITY shall have the right to reproduce, use and modify the PLANS, or portions thereof, in the design and construction of any other future CITY project. CITY acknowledges that CONSULTANT does not warrant the suitability of the PLANS for reuse, other than as needed ~or the Project that is the subject of this AGREEMENT. 15.2.3. The right of the CITY to modify and reuse the PLANS pursuant to this Subsection 15.2. is subject tO the provisions of California Business and Professions Code Sections 5536.25, 6735, 6735.3 or 6735..4, whichever is applicable. 050310 SECTION 16. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 17. INDEMNITY. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or.liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. Notwithstanding the above, nothing in this Section 17 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. The acceptance of CONSULTANT’s services and duties by CITY shall not .operate as a waiver of the right of indemnification. The provisions of this Section 17 shall survive the expiration or early termination of this Agreement. SECTION 18. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, Will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or ~of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 19. INSURANCE. 19.1.CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement,~ the insurance coverage described in Exhibit "D" CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or .automobile policy or policies. 19.2.All insurance coverage required hereunder shall be provided through carriers with Best’s Key Rating Guide ratings of A-:VII or higher which are admitted to transact insurance business in the State of California. Any and-al! contractors of CONSULTANT retained to perform Services under this Agreement will 050310 obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 19.3.Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation, CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Purchasing Manager during the entire term of this Agreement. 19.4.The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. SECTION 20. WORKERS’ COMPENSATION. CONSULTANT, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers’ compensation or to underzake self’insurance in accordance Wlth the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. SECTION 21.TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 21.1.The city manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (I0) days’ prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 21.2.CONSULTANT may terminate this Agreement or suspend, its performance of the Services by giving ten (i0) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 21.3.Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and al! copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 21.4 .Upon such suspension or termination by CITY, 0503107 CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., i0 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion 21.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 22. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY:Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager. .To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 23. CONFLICT OF INTEREST. 23.1.In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 23.2.CONSULTANT further covenants that, in the performance of this Agreement, it willnot employ subconsultants, contractors" or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an.officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 23.3. If the Project Manager determines that CONSULTANT is a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees, to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. 050310 SECTION 24. NONDISCRIMINATION. As set forth in Palo Alto Municipa! Code section 2.30.510, CONSULTANT agrees that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Chapter 2.28 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Chapter 2.28 pertaining to nondiscrimination in employment, including completing the form furnished by CITY and set forth in Exhibit "E". SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2.In the event that an action is brought, the parties agreethat trial of such action will be vested exclusively in the state courts of California or in the United States District Court for the Northern District of California in the County of Santa Clara, State of California. 25.3.The prevailing party in any action brought ~o enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. 25.4.This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. Thisdocument may be amended only by a written instrument, which is signed by the parties. 25.5.The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and CONSULTANTs, as the case may be, of the parties. 25.6.[f a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto wil! remain in full force and effect. 25.7.All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules ~to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8.This Agreement is subject to the fiscal 050310 9 provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fisca! year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section 25.8 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. APPROVED AS TO FOR94: Senior Asst. City Attorney APPROVED: CITY OF PALO ALTO Assistant City Manager Director of Administrative Services RMC Water and Environment By: Name (If corporation: Secretary or Treasurer) Taxpayer Identification No. (Compliance with Corp. Code § 313 is required if the entity on whose behalf this contract is signed is a corporation. In the alternative, a certified corporate resolution attesting to the signatory authority of the individuals signing in their respective capacities is acceptable) Attachments: Exhibit A: Scope of Work Exhibit B: Schedule of Performance Exhibit C: Compensation Exhibit D: Insurance Certificate Exhibit E: Nondiscrimination Form 10 050310 Exhibit "A" SCOPE OF WORK In general, the consultant shall prepare analyses of all of the essential components of a potential expanded recycled water system to serve the designated area in the City of Palo Alto. Consultant’s responsibilities, work requirements, and scheduIe shall be as outlined herein and shall be in accordance with any requirements of the State Water Resources Control Board (SWRCB) Planning Grant to prepare this facility plan. BACKGROUND INFORNIATION The Palo Alto Regional Water Quality Control Plant (RWQCP) provides treatment and disposal of wastewater for the Cites of Palo Alto, Mountain View, and Los Altos; the Town of Los Altos Hills; the East Palo Alto Sanitary District; and Stanford University, known collectively the RWQCP Partners. The RWQCP is an advanced treatment facility with a designed average dry weather flow (ADWF) capacity of 3 8 million gallons per day (MGD), and a current flow of about 23 MGD. The RWQCP effluent is predominantly discharged to the San Francisco Bay (Bay) through an effluent out-fail. Additional information can be found on the RWQCP’s web site www.PARWOCP.0r~. The effluent from the RWQCP meets the requirements of"restricted use" as defined by the C~V~.-~o n.~o~-+ ,,~’~o1,~ q~,-,,;~ (cr~) !n addition, th~ ~WQ~ ~ ~ ~ MGD ~,c-~ pc~ year) recycled water facility that further filters and disinfects the effluent. The recycled waer from this facility meets the req~rements %r "~estricted use". The RWQCP is autho~zed by the California Regional Water Quality Control Board, San Francisco Bay Region, as a generator of recycled water suitable for "u~estricted" use. The RWQCP cu=ently delivers approximately 1 MGD of recycled water to various reuse sites for i=igation during the su~er months. There are also hydrants installed in two locations for contractors ~d CalTrans to fill ta~er tracks with recycled water for dust control and i=igation. The RWQCP and the City of PaIo Alto Utilities completed a Water Reclamation Master Plan in April 1992. In 1995, Palo Alto’s City Council certified a Program EIR that provided a framework for developing recycled water storage and distribution facilities to the RWQCP service area. At the same time, the City Council decided not to proceed with the projects identified in the Master Plan as the estimated costs did not outweigh the benefits as known at the time. The Council further directed that the project should be examined again if changes occurred to make the project more feasible. Since that time a segment of that project, an extension of the RWQCP’s recycled water system to Mountain View and Moffett Field, is going forward toward construction. In addition, the costs of wholesale water from the San Francisco Public Utilities Commission (SFPUC), the City’s primary water supplier, are proj ected to increase dramatically as projects are completed to upgrade SFPUC’s regional water system. In response to these changed circumstances, in July assessment will be performed of potential users’ response and willingness to use recycled water, and evaluate the incentives that would be necessary to "secure" the recycled water market. These incentives will include, but not be limited to, on-site retrofit grants, reduced price, water quality improvements, service reliability, and service pressure. The potential benefits of a recycled water ordinance will also be considered. The logical service areas to be targeted in the near-term, mid-term and long-term that were identified in the 2006 RWMS will be confirmed. The Preferred Project pipeline alignment identified in the RWMS witl be used as the basis for site investigation Task 1.1" Data collection Reconfirm specific potential uses of recycled water and locations, as needed after review of the 2006 RWMS. Conduct a customer workshop to ascertain conditions including: demand characteristics, statistics on water use for irrigation and industrial use, future water requirements, and water quality requirements. Conduct a site visit to identify areas of heavy traffic conditions along the pipeline alignment, high utility congestion, bike path, sensitive habitat, or other potential roadblocks or fatal flaws on the pioposed alignment. Task 1.2: Reuse site retrofits Inves~.ifia~ce on-site trea~..ment or ph.~mbin.g retrotSts needed to accept recycled water. Info..rm the City and customers of water quality management strategies and retrofit requirements through the customer workshop. Evatuate retrofit aitematives and estimate retrofit costs (to be included in i as~ 2.2). Deliverables: Draft~qeld investigation summary and recommendations. Comments will be addressed in the Draft Facilities Planning Report Draft customer workshop summary and recommendations. Comments will be addressed in the Draft Facilities Planning Report. Task 2’ Analysis of Project Alternatives and Recommended Facilities Planning Proj eci The objective of this task is to develop and evaluate recycled water distribution system alternatives to serve the service areas identified in Task 1, develop a "project ptan" and complete preliminary design for the recommended facilities. This task will build upon the work already .completed as part of the RWMS. In particular, the RWMS’s Preferred Project will be revisited to optimize the user market, refine the required facilities, update cost estimates, and incorporate a long-term, phase approach for the recycled water system. Task 2.1 : Alternative Analysis The RWMS evaluated two alternate alignments, which satisfy the alternative analysis requirements of the SWRCB plarming grant and environmental review document. Consultant Task 3: Preparation of Financial & Revenue Plan The objective of this task is to prepare a construction financing and revenue plan for the facilities recommended under Task 2. Consultant shall refine the pricing policies, funding sources, and financial plans developed in the RWMPS for the Recommended Facilities Project. Task 3.1 - Pricing Policy Consultant shall assist the City in developing a recycled water pricing policy. This will include documentation of the projected recycled water pricing policy. Consultant shall analyze al! potential elements of a policy, including connection fees, retrofit requirements, requirements for new developments, fraction of potable costs, recycled water surcharges (paid by all water users), and any other feasible elements. Task 3.2 - Financiai and Revenue Plan Consultant shall assist the City in developing the financial plan, identifying funding sources, and obtaining funds for the design and construction of the recommended facilities. Consultant shall perform cash flow analysis and sensitivity analysis, and prepare a construction financing plan and a revenue program for the recommended facilities. Consultant shall prepare sensitivity ana!y.~es to the failure of users to connect to the system or use less recycled water than estim.ated, ~’-....’ ......: ’- funding, changes in avoided cost o~ ~rrut_, water, and increases in capital costs. All potential outside funding sources potentially available for design and construction and associated requirements will be considered. Sources may include: ¯State grant funding ¯State Revolving Fund Loan ¯Funding source from other agencies (USBR, USEPA) The plans shall have adequate information, broken down in appropriate format, for use by the City to pursue funding for the design and construction of the recommended facilities from various funding sources. Requirements for each potential funding source shal! be provided. The plans shall also include consideration of project financing for each phase of the project if it were constructed in phases. De~iverables: Draftpricingpolicy strategies, financial and revenue approaches, including funding opportunities. Comments will be addressed in the Draft Facilities 2Ianning 2eport. Task 4: Environmental Documentation The objective of this task is to prepare the environmental review for the recommended facilities so that the City can move forward with the design and construction of the facilities. Task 5 Public Outreach Consultant shall prepare fact sheets, outreach materials, and assist the City with public outreach and conduct two workshops on recycled water program. The RWQCP has an on-going program that engages a focused group of stakeholders in workshops to discuss the tong-term goals for the KWQCP. The stakeholders include local environmental groups, local businesses, agencies, community groups, and the Partners. Wastewater recycling is one of the main goals that the stakeholders have set for the RWQCP. Workshops and stakeholder involvement in alternatives evaluation shall be conducted in conjunction with the CEQA review process. The outreach will also include the potential end users, affected agencies, the general public, SCVWD, and CalTrans. Other agencies that may be contacted include Bay Conservation Development Commission, California Regional Water Quality Control Board, and California Department offish and Game. Consultant shall also make presentations and attend meetings as required by the SWRCB (included in Task 8). Deliverables: ¯Draft meeting agenda, materials, and summary. Comments will be addressed in the Dr@ Facilities Planning Report. This objective of this task is to prepare a Facilities Planning Report that meets the SWRCB guideiines. Per the WRYP Guideiines, "the facilities pianvJng grant must result in a final facilities plarming report. The final report must inctude an analysis of all of the essential components of potential project alternatives." Task (5.1" Draft Facilities Planning Report Preparation Consultant shall prepare a Draft Facilities Planning Report, based on the development of the recommended facilities. The report shall follow the format and guideline of the SWKCB, comply with the policies and procedures in the WRFP Guidelines, and the recommended outline in the Guidelines should be considered. The report shall include all information and task outcomes per this scope of work. The Draft wi!l be provided to the SWRCB for review. Task 6.2: Final Facilities Planning Report Preparation Consultant shall review and respond to all review comments from the SWRCB and the City. Consultant shall incorporate all appropriate or required changes and shall prepare a Final Facilities Planning Report. DeliverabIes." Dr@ Facilities Planning Report Final Facilities Planning Report respond to all review comments, incorporate comments as appropriate, and submit thirty (30) copies of the draft environmental documents to the City and distribute as many as needed for agencies review per CEQA Plus requirements. Consultant shall deliver twenty (20) bound, one (1) unbound final environmental documents, and final Facility Plan reports to City for use by City. Consultant shall also provide the City with the electronic files of the final Facility Plan report and the final CEQA documents. ADDITIONAL SERVICES Consultant may be required to perform additional services listed below. Consultant shall perform the additional services upon written authorization by the City. Payment for the additional services shall be time and expense based on the schedule of charges but not to exceed a pre-negotiated maximum. The maximum limit for each additional task shall be negotiated and agreed upon prior to providing the service. Consultant shall provide a schedule of charges with the fee information. Additional services may include: A1.Prepare environmental document beyond the expectation of an amendment to the existing Program EIR, or a mitigated negative declaration. A2. A3. Assist with compliance with NEPA, if required, including assistance in pursuing sponsorship, working and coordinating with the Federal government, and preparation or review of the NEPA documents...... iro~,...o ,~ o, are not including in the basicA~en~/conduct a!ditional meetings or ....~ .....~ ...... scope ’of services. PROJECT SCHEDULE The project shall start in April 2007. The schedule of the project shall be staged to accommodate the public and interested parties. The final report and environmental document shall be complete before June 30, 2008. Consultant shall establish a detailed schedule showing the critical path and time line for each task at the beginning of the project. The Consuhant shall update and maintain the schedule throughout the proj ect. *** END *** Exhibit "B" SCHEDULE OF PERFOI~IANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days specified below. The number of days t0 complete each milestone may be increas4ed or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 10 days of receipt of the notice to proceed. Milestone Completion Number of Days from NTP 1.Report for Task 1’ Draft field investigation and customer workshop summaries and recommendations 90 days Report for Task 2: Draft summary of preliminary Facilities Project, cost estimates and potential phasing Report for Task 3: Draft pricing policy strategies, ililailUlal allti r~V~i].’ti~, approaclies RepolntS for Task 4: a. Administrative Draft, Draft, Administrative Final and Final IS/MND or EIR addendum b.Administrative Draft, Draft and Final Archaeological Survey Reports c. Draft BiologicalAssessment d. Draft CulturalAssessment Report for Task 5: Draft irieeting agenda, materials and s umm ary. Draft and Final Facilities Planning Report Montlnly Budget and Schedule Tracldng Summaries 180 days 270 days ¯ 390 days 390 days 420 days Monthly until final report completed 0 0 2007 RMC RATE SCHEDULE Classification Principal 3 Principal 2 Principal 1 Sr Project Manager 3 Sr Project Manager 2 Sr Project Manager 1 Project Manager 3 Project Manager 2 Project Manager 1 Project Engineer 3 Project Engineer 2 Project Engineer 1 Assistant Engineer Project Planner 3 Project Planner 2 Project Planner 1 Environmental Scientist 3 Environmental Scientist 2 Environmental Scientist 1 Sr.CAD Designer Sr.Graphic Designer/Artist Sr.Project Accountant Sr.Administrator CAD Designer Graphic Designer/Artist Project Accountant Administrator Assistant CAD Designer Assistant Graphic Designer/Artist Assistant Project Accountant Assistant Administrator 2007 Hourly Billing Rate $226 $218 $210 $206 $202 $198 $192 $184 $174 $164 $154 $138 $116 $158 $148 $134 $!58 $148 $134 $128 $116 $116 $1o8 $116 $1o8 $108 $96 $108 $96 $96 $88 1. The individual hourly rates include salary, overhead and profit. The hourly rates also include ordinary expenses, including telecommunications, computer usage, and regular reproduction jobs. Other direct costs (ODCs) such as large reproduction jobs, mileage, and travel expenses, will be charged at actual cost plus 10%. Subconsultants will be billed at actual cost plus 10%. Mileage rates will be those allowed by current IRS guidelines. 2. RMC reserves the right to adjust its hourly rate structure at the beginning of the calenSar year for all ongoing contracts. RMC will 3rovide advance notice of any rate changes affecting current contracts. EXHIBIT D INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH A BEST’S KEY RATING OF A-:Vii, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS.IN THE STATE OF CALIFORNIA. AWARDIS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH OCCURRENCE AGGREGATE YES WORKER’S COMPENSATION STATUTORY YES .AUTOMOBILE LIABILITY STATUTORY BODILY INJURY YES COMMERCIAL GENERAL LIABILITY, INCLUDING PERSONAL INJURY,BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY COMPREHENSIVE AUTOMOBILE LIABILITY, INCLUDING, OWNED, HIRED, NON-OWNED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE). AND NEGLIGENT PERFORMANCE YES PROPERTY DAMAGE BODILYINJURY&PROPERTYDAMAGE COMBINED. BODILYINJURY EACH PERSON EACH OCCURRENCE PROPERTYDAMAGE BODILYINJURYANDPROPERTY DAMAGE, COMBINED ALL DAMAGES $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: PROPOSER, AT ITS SOLE COST AND EXPENSE, S, ,,-,,.,_,_,,.,,,-,,,~ ,-.,~. MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RtE_SULrANI" AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY PROPOSER AND ITS SUBCONSULTANS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSURES CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I1. INSURANCE COVERAGE MUST INCLUDE: A.A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF COVERAGE CANCELLATION; AND B.A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY - SEE SAMPLE AGREEMENT FOR SERVICES. SUBMIT CERTIFICATE(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE, OR COMPLETE THIS SECTION AND IV THROUGH V, BELOW. A.NAME AND ADDRESS OF COMPANY AFFORDING COVERAGE (NOT AGENT OR BROKER): B.NAME, ADDRESS, AND PHONE NUMBER OF YOUR INSURANCE AGENT/BROKER: C.POLICY NUMBER(S): City of PaiD Alto - RFP 120333 Page 1 of 2 EXHIBIT D INSURANCE REQUIREMENTS D.DEDUCTIBLE AMOUNT(S) (DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL): 1tl. IV. Vo AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AND PROPOSER’S SUBMITTAL OF CERTIFICATES OF INSURANCE EVIDENCING COMPLIANCE WITH THE REQUIREMENTS SPECIFIED HEREIN. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSURES" A.PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICYIS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTINGWITH ANY OTHER INSURANCE CARRIEDBY OR FOR THE BENEFIT OF THE ADDITIONAL INSURES. B.CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSURES UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C.NOTICE OF CANCELLATION IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT QF PREMIUM, TI~E ~SSUING COMPANY S~4.&LL PROV!DE C!TY AT LEAST A THIRTY (30) DAY WRI’FTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREiviiUM, THE iSSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. PROPOSER CERTIFIES THAT PROPOSER’S INSURANCE COVERAGE MEETS THE ABOVE REQUIREMENTS: THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. sIGNATURE(S) MUST BE SAME SIGNATURE(S) AS APPEAR(S) ON SECTION II, ATTACHMENT A, PROPOSER’S INFORMATION FORM. Signature: Name: (Print or type name) (Print or type name) Signature: Name: NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O, BOX 10250 PALO ALTO CA 94303. City of Palo Alto - RFP 120333 Page 2 of 2 Exhibit E Certification of Nondiscrimination As suppliers of goods or services to the City of PaiD Alto, the firm and individuals listed below certify that they do not discriminate in employment of any person because of race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person; that they are in compliance with all Federal, State and local directives "and executive orders regarding nondiscrimination in employment. 1.If Proposer is INDIVIDUAL, sign here: Date: Proposer’s Signature Proposer’s typed name and title If Proposer is PARTNERSHIP or JOINT VENTURE, at least (2) Partners or each of the Joint Venturers shall sign here: Partnership or Joint Venture Name (type or print) Date: Date: Member of the Partnership or Joint Venture signature The undersigned certify that they are respectively: and Title Member of the Partnership or Joint Venture signature If Proposer is a CORPORATION, the duly authorized officer(s) shall sign as follows: Title Of the corporation named below; that they are designated to sign the Proposal Cost Form by resolution (attach a certified copy, with corporate seal, if applicable, notarized as to its authenticity or Secretary’s certificate of authorization) for and on behalf of the below named CORPORATION, and that they are authorized to execute same for and on behalf of said CORPORATION. Corporation Name (type or print) By:. Title: By:. Title: Date: Date: City of Palo Alto - RFP " ATTACHMENT C DIVISION OF FINANCIAL ASSISTANCE PRELIMINARY GRANT FUNDING COMMITMENT WATER RECYCLING FACILITIES PLANNING (WRFP) GRANT PROGRAM WATER RECYCLING PROJECT NO,: WRFP-3229-010 ITEM NO.: DFA-2007-006 RECIPIENT: CITY OF PALO ALTO (CITY) PROJECT DESCRIPTION: CITY OF PALO ALTO RECYCLED WATER FEASIBILITY STUDY (STUDY) WATER RECYCLING FACILITY PLANNING GRANT REQUEST:$75,000 PROJECT MANAGER: Bob Pontureri (341-5828) SUBJECT The City has submitted an application for a WRFP Grant Program grant for performing the proposed Study. On January 23, 2007, the Division of Financial Assistance (Division) approved the Plan of Study to initiate and complete the Study. Division staff requests the Deputy Director of the Division to approve a preliminary funding commitment for the proposed Study. AUTHORITY On March 7, 2000, the voters added the Safe Drinking Water, Clean Water, Watershed Protection and Flood Protection Act (2000 Bond Law, designated Proposition 13on the ballot) to the Water Code. Section 79143 of the Water Code provides authorization forthe State Water Resources Control Board (State Water Board) to issue water recycling facilities planning study grants from monies in the 2000 Bond Law Water Recycling Subaccount. This authorization continues the WRFP Grant Program that was started under the Safe, Clean, Reliable Water Supply Act of 1996. The State Water Board approved the Water Recycling Funding Program Guidelines (Guidelines) on October 21, 2004, governing the Water Recycling Construction Program and the Facilities Planning Grant Program (FPGP). The FPGP is authorized to cover 50 percent of eligible costs up to a maximum grant of $75,000 per study: Grant disbursements do not take place until the State Water Board has executed a grant agreement. On January 18, 2007, the State Water Board, in Resolution No. 2007-0004, authorized the Executive Director, the Chief Deputy Director, or the Deputy Director of the Division of Financial Assistance to make preliminary financial assistance commitments for loans and grants for routine, non-controversial projects that are (1) consistent with the policies, regulations, and agreements that the State Water Board has adopted governing the internal management of the loan and grant programs, and (2) on a priority funding list adopted by the State Water Board. BACKGROUND On December 6, 2006, the City submitted a funding application, including a Plan of Study (POS), to initiate and complete the Study. The estimated total proposed Study.cost is $150,000 and the grant requested is $75,000. The Division approved the City’s POS on January 23, 2007, with a deadline to submit the Final Study report by June 30, 2008. The City provides wastewater services to the.residences, businesses and industrial customers within its limits. The wastewater is treated at the City’s Regional Water Quality Control Plant (RWQCP). The City currently provides recycled water for landscape irrigation to users in close proximity to the RWQCP. The City is expected to begin construction in August 2007, on the Mountain View/Moffett Area recycled water pipeline to provide approximately 1500 acre-feet per year of recycled water to users in the City of Mountain View. The Study will determine the feasibility of expanding the use of recycled water by providing recycled water from the RWQCP to additional users within the City. The Study area, as indicated in the PQS, is located within the City’s limits. The proposed Study is routine and non-controversial based on staff’s consideration of the documents and information provided by the City. There has been no indication thr6ugh communication with the City of a protest or controversy regarding the proposed Study. PROJECT LOCATION The Study area is located within the jurisdiction of the San Francisco Bay Regional Water Quality Control Board. The proposed Study will be conducted within the Palo Alto City limits in the county of Santa Clara. PROPOSED STUDY The scope of work for the City’s Study includes the following major tasks. The Study will: (1.).conduct a recycled ’water market assessment; (2) provide an alternative analysis; (3) determine the recommended Project alternative for implementation; (4) develop a construction finance plan; (5) develop environmental documentation; and (6) complete a Facilities Planning Report. The City’s Study will determine the feasibility of providing recycled water from the City’s RWQCP to area schools, parks and other potential users for landscape irrigation. The potential use of recycled water by potential users identified in the Study could augment both state and local water supplies. The grant funds will be used to complete a Facilities Planning Report, which includes evaluation of economic factors, environmental factors, and technical feasibility for each of the potential recycled water uses identified in the study. The study will: 1) update the City’s existing recycled water master plan to address new users, 2) develop funding strategies, and 3) determine the best Project alternative for implementation. REGIONAL WATER BOARD IMPACT None. FISCAL IMPACT A total of approximately $113 million was initially made available in the 1996 and 2000 Bond Law Water Recycling Subaccounts for water recycling funding. Of this amount, 41 percent ($46.3 million) was designated for planning grants and construction loans with 40 percent of this amount ($18.5 million) specified for Northern California. This fund is continuously appropriated. This planning grant will be funded from the Northern California allocation. POLICY ISSUE Should the Deputy Director of the Division: 1. Approve a facilities I~lanning grant for 50 percent of the eligible costs but not to exceed $75,000 to the City for the proposed Study? In accordance with the Guidelines, condition this approval by withdrawing the WRFP Preliminary Funding Commitment if the City does not submit the Final Report by June 30, 2008, for the proposed Study? The Division staff may approve an extension of up to 12 months from the expiration date for good cause without further action by the Division Deputy Director. STAFF RECOMMENDATION The Deputy Director of the Division should: Approve a facilitiesplanning grant for 50 percent of the eligible costs but not to exceed $75,000 to the City for the proposed Study. Include a condition that this Preliminary Funding Commitment will be withdrawn if the City does not submit the Final Report by June 30, 2008, for the proposed S{udy. The Division staff may approve an extension of up to 12 months from the expiration date for good cause without further action by the Division Deputy Director. Legal Review ~Date Fiscal Review ~."~Date DIVISION OF FINANCIAL ASSISTANCE PRELIMINARY GRANT FUNDING COMMITMENT WATER RECYCLING FACILITIES PLANNING (WRFP) GRANT PROGRAM WATER RECYCLING PROJECT NO.: WRFP-3229-010 ITEM NO.: DFA-2007-006 FINDINGS 1.On March 7, 2000, the voters approved the Safe Drinking Water, Clean Water, Watershed Protection and Flood Protection Act, and provided authorization for the State Water Resources Control Board (State Water Board) to issue WRFP grants; 2. The State Water Board revised guidelines governing the Facilities Planning Grant Program by adoption of the Water Recycling Funding Program Guidelines (Guidelines) on October 21,2004; 3. The State Water Board, on January 18, 2007, authorized in Resolution No. 2007-0004 the Executive Director, the Chief Deputy Director, or the Deputy Director of the Division of Financial Assistance to make preliminary financial assistance commitments for loans and grants for routine, non-controversial projects that are (1) consistent with-the policies, regulations, and agreements that the State Water Board has adopted governing the internal management of the loan and grant programs, and (2) on a priority funding list adopted by the State Water Board; 4.City of Palo Alto (City) submitted a grant application dated December 6, 2006, requesting grant funding for the Palo Alto Recycled Water Facil~ities Planning Study (Study); 5.Division staff reviewed the application and other supporting information for the Study and determined that the submitted documents comply with the Guidelines. Subsequently, a Plan of Study approval letter was issued to the City o.n.January 23, 2007; 6. This Study is a routine, non-controversial project that is consistent with the policies,.regulations and agreements the State Water Board has adopted for implementation.of the Water Recycling Funding Program; and 7. The City is a signatory, to the Memorandum of Understanding with the California Urban Water Conservation Council. Additionally, the City has prepared and adopted an Urban Water Management Plan and submitted the plan to the Department of Water Resources. APPROVALS AND CONDITIONS Using the authority delegated by the State Water Board on June 18, 2003, in Resolution No. 2003-0042, I hereby: 1)Approve a Facilities Planning Grant for 50 percent of the eligible costs but not to exceed $75,000 to the City for the Study. 2) Include a condition that this Preliminary Funding commitment will be withdrawn if the City does not submit the Final Report by June 30, 2008, for the proposed Study. The Division staff may approve an extension of up to 12 months from the expiration date for good cause without further action by the Division Deputy Director. Barbara L. Evoy, Deputy Director Division of Financial Assistance Date Recycled Water Facility Plan Consultant Selection Written Proposal Specialized experience in this type of work Past performance and record, of the firm an d the proposed project team, on similar projects Familiarity with issues associated with the project Qualifications of the project manager, lead engineer, and team Good understanding of the objectiyes as evidenced by the completeness and clarity of the proposal, and the inclusion of specifics and details that are essential for proposat evaluation Attachment D Maximum Carollo RBF Points Engineers RMC Consulting 10 7.8 9.2 6.6 5 3.6 4.2 2.3 10 7.4 9.4 5.5 10 7.8 9.6 7.2 Ability to work with the public, city staff and city officials Familiarity with the guidelines and requirements of the SWRCB and other funding requirements Presentation Demonstrated understanding of the project Ability to organize and present material Answers to Questions from the panel Demonstrated understanding of the project Ability to think on feet, communicate thoughts plainly 10 7.8 9.2 5.8 5 4.2 4.4 2.6 10 7.2 9.8 7.1 10 7.8 9.8 5.4 10 8.6 9.8 6.8 10 8.2 9.6 5.4 10 9 9.6 7.4 100 79.4 94.6 62.1 CityWorks NEW ATTACHMENT E RECYCLED WATER D STRIBUT ON SYSTEM EXTENSION (WSo07001) Description: This project extends the existing recycled water distribution system to serve customers in Palo Alto. The primary new infrastructure will be a pipeline to deliver recycled water for irrigation and other nonpotable uses such as for processes and cooling towers to City-owned facilities and commercial customers. The target service area is the Stanford Research Park and the project will serve City parks and other users along the pipeline route. Justification: Recycled water is a locally controlled water resource that is available even in water shortages such as droughts. Water resources are constrained in the Bay Area and there are ongoing pressures to maximize the use of locally available supplies. There are adequate supplies of recycled water produced at the Palo Alto Regional Water Quality Control Plant to meet this project’s needs. In addition, the cost of imported water supplies from San Francisco is projected to triple in the next 10 years. Consultant Services Scope: Completion of a Recycled Water Facilities Plan and preparation of environmental documents in 2007. Supplemental Information: This project does not look financially feasible if viewed only from the City of Palo Alto perspective. State grant funds are available for recycled water projects. In addition, funds may be available from the Santa Clara Valley Water District and the San Francisco Public Utilities Commission. Since the project must receive outside funds to be feasible, getting the project in the "ready to go" stage is vital. For state grant funds, being "ready to go" means having completed a facilities plan and environmental review. ClP FACTS: o Project Status: NEW ° Timeline: FY 2008-2012 ¯ Managing Department: Utiliites ¯ Comprehensive Plan: Supports Comprehen- sive Plan Policy N-20 - Maximize the conserva- tion and efficient use of water in and existing residences, businesses, and industries. ¯ Board/Commission Review: PTC, UAC IMPACT ANALYSIS: ¯ Environmental: Project will require environ- mental review. ° Design Elements: Any above ground stru(~- tures will go through the appropriate review pro- cess. ° Operating: Project will increase utilities operat- ing costs. PY Budget PY Actuals as of 12/31/2006 Pre-Design Costs Design Costs Construction Costs Other $250,000 $250,000 Revenues:$75,000 Source of Funds:Water Rate Stabilization Reserve with reimbursement from State Board Grant of $75,000 Consistent with the Water Integrated Resource Plan Guidelines, adopted by Council inCouncil Policy Direction:December 2003. 2007-09 Budget City of Palo Alto 21