HomeMy WebLinkAboutStaff Report 131-08TO:
FROM:
City of Palo Alto
HONORABLE CITY COUNCIL ~
CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:FEBRUARY 11, 2008 CMR:131:08
SUBJECT:ADOPTION OF A RESOLUTION ESTABLISHING ONE OR MORE
DEDICATED SOURCES OF REVENUE FOR REPAYMENT OF A LOAN
PURSUANT TO THE FEDERAL CLEAN WATER ACT AMENDMENT AND
ADOPTION OF A RESOLUTION FOR ADMINISTERING A
WASTEWATER CAPITAL RESERVE FUND IN ACCORDANCE WITH
THE STATE WATER RESOURCES CONTROL BOARD’S
REQUIREMENTS FOR THE STATE REVOLVING FUND LOAN
PROGRAM FOR THE CONSTRUCTION OF THE ULTRA-VIOLET
DISINFECTIONFACILITY AT THE PALO ALTO REGIONAL WATER
QUALITY CONTROL PLANT
RECOMMENDATIONS
Staff recommends that Council:
Adopt a resolution (Attachment A) establishing one or more dedicated sources of revenue for the
repayment of the State Revolving Fund (SRF) loan from the State Water Resources Control
Board (SWRCB) for the construction of the ultra violet (UV) disinfection facility at the Palo Alto
Regional Water Quality Control Plant (RWQCP); and
2.Adopt a resolution (Attachment B) administering a wastewater capital reserve fund in accordance
with the SWRCB requirements of the SRF program.
BACKGROUND
On August 6, 2007, Council adopted Resolution 8742 authorizing the City Manager to file an
application for a SRF loan for the UV disinfection facility project, CMR:322:07 (Attachment C).
Subsequently, staff submitted the application, which initiated the SRF loan process.
DISCUSSION
The next step in the loan process is the submittal of the attached resolutions, Attachments A and B.
These resolutions are required by the SWRCB for a low-interest SRF loan. Submittal of these
resolutions does not complete the loan process. There are several remaining steps in the loan process
and Council will be making decisions on the remaining steps before the SRF loan can be secured. In
the future steps of the loan process, Council will make final decisions on the following:
Decision on specific project funding strategy;
Decision on the project and the bids; and
CMR:342:01 Page 1 of 2
Decision on the specific amount from each funding source.
The SWRCB will not execute any loan contract until the above steps are completed, and until
Council awards and executes a construction contract with a contractor for the project. Staff is
working with the RWQCP partners on the details of the funding strategy and agreements for the loan
repayment. Staff plans to obtain a preliminary loan commitment from the SWRCB prior to
solicitation for bids. Submittal of the resolutions is required in order to obtain a preliminary
commitment. Staff will return to Council with the detailed funding strategy and the partners’
agreement on loan repayment prior to the bid opening date.
PROJECT SCHEDULE
Preliminary loan commitment from SWRCB
Bid issuance
Bid opening
Firm loan commitment from SWRCB
Council decision on project
Complete SRF contract with SWRCB if project is awarded
May 2008
July 2008
September 2008
October 2008
November 2008
December 2008 - April 2009
RESOURCE IMPACT
Funds for the project have been appropriated in the Wastewater Treatment Enterprise fund. It is
expected that grants and the SRF loan will fund the estimated total project cost of $21.3 million.
POLICY IMPLICATIONS
Recommendations of this staff report are consistent with City Council’s Sustainability Policy by
reducing toxins discharge and greenhouse gas emissions.
ENVIRONNIENTAL REVIEW
Adoption of the resolutions does not constitute a project under the California Environmental Quality
Act.
ATTACHMENTS
Attachment A:Resolution
Attachment B:Resolution
Attachment C CMR:322:07
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
RICK WETZEL
GLENN S. ROBERTS
Director of Public Works
-
EMILY HAR~SON
Assistant City Manager
CMR:342:01 Page 2 of 2
NOT YET APPROVED
ATTACH1VgENT
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
ESTABLISHING ONE OR MORE DEDICATED SOURCES OF
REVENUE FOR REPAYMENT OF FUNDING PURSUANT TO
THE FEDERAL CLEAN WATER ACT AMENDMENTS
WHEREAS, the CITY OF PALO ALTO (the "Agency") desires to finance the costs
of constructing and!or reconstructing certain public facilities and improvements relating to its
water and wastewater system, including certain treatment facilities, pipelines and other
infrastructure (the "Project"); and
WHEREAS, the Agency intends to finance the construction and/or reconstruction of
the Project or portions of the Project with moneys ("Project Funds") provided by the State of
California, acting by and through the State Water Resources Control Board (the "Water Board");
and
WHEREAS, Section 603(d)(1)(C) of the Federal Clean Water Act Amendments
require each financing recipient to establish one or more dedicated sources of revenue for State
Revolving Fund (SRF) assistance; and
WHEREAS, Revenue will be considered dedicated when the municipality passes a
resolution committing a source of funds for repayment.
follows:
NOW, THEREFORE, the Council of the City of Pa!o Alto does RESOLVE as
SECTION 1. The City of Palo Alto hereby dedicates the following source of
revenue (Regional Water Quality Control Plant Operating Fund) to repayment of any and all
State Revolving Fund financing on Project No. C-06-5044-110. The operating fund will be
funded by sewer user fees. This dedicated source of revenue
//
//
//
//
//
//
//
080118jb 0130260
NOT YET APPROVED
shall remain in effect throughout the term of such financing unless modification or change of
such dedication is approved in writing by the State Water Resources Control Board.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Mayor
APPROVED:
Senior Asst. City Attorney City Manager
Director of Public Works
Director of Administrative
Services
080118jb 0130260
NOT YET APPROVED
ATTACH1VIENT
RESOLUTION NO
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
ESTABLISHING A WASTEWATER CAPITAL RESERVE FUND IN
ACCORDANCE WITH THE STATE WATER RESOURCES
CONTROL BOARD’S REQUIREMENTS OF THE STATE
REVOLVING FUND PROGRAM
WHEREAS, the Council of the City of Palo Alto (the "Agency") authorized the City
Manager to apply for State Revolving Fund (SRF) financing to fund all or a portion of the cost of
expansion and improvement of its water and wastewater system (Project No. C-06-5044-110),
including certain treatment facilities, pipelines and other infrastructure (the "Project"); and
WHEREAS, the State Water Resources Control Board requires, as a condition of
approval of the financing, the establishment of a Wastewater Capital Reserve Fund for future
expansion, major repair or replacement costs;
follows:
NOW, THEREFORE the Council of the City of Palo Alto does RESOLVE as
SECTION 1. A dedicated Wastewater Capital Reserve Fund exists, and,
SECTION 2. Said Wastewater Capital Reserve Fund shall be administered by the
Agency as required by the "Policy for Implementing The State Revolving Fund for Construction
of Wastewater Treatment Facilities" adopted by the State Water Resources Control Board on
February 16, 1995 and last amended in July 2007.
//
//
//
//
//
//
//
//
//
080205 jb 0130261
NOT YET APPROVED
SECTION 3. The Council finds that the adoption of this resolution does not
constitute a project under the California Environmental Quality Act, California Public Resources
Code section 21080, subdivision (b)(8).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Deputy City Attorney
Mayor
APPROVED:
City Manager
Director of Public Works
Director of Administrative Services
Department
080205jb 0130261
CITY OF PALO ALTO
16
Memorandum
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:AUGUST 6, 2007 CMR:322:07
SUBJECT:ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER
TO FILE AN APPLICATION FOR A STATE REVOLVING FUND LOAN IN
AN AMOUNT NOT TO EXCEED $25,000,000 AND APPROVAL OF
WASTEWATER TREATMENT ENTERPRISE FUND AMENDMENT NO. 1
TO CONTRACT NO. C06116829 WITH RMC WATER & ENVIRONMENT
IN THE AMOUNT OF $1,000,000 FOR DESIGN SERVICES FOR THE
ULTRA-VIOLET DISINFECTION SYSTEM AT THE REGIONAL WATER
QUALITY CONTROL PLANT - CAPITAL IMPROVEMENT PROGRAM
PROJECT #WQ-06014
The above-referenced City Manager’s Report (CMR:322:07) was distributed to the Council in the
July 30, 2007 packet.
J. ~!CHAEL SARTOR
A~ing Director of Public Works Assistant City Manager
City of Palo Alto
C ty Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:JULY 30, 2007 CMR:322:07
SUBJECT:ADOPTION OF A RESOLUTION AUTHORIZING THE CITY
MANAGER TO FILEAN APPLICATION FOR A STATE REVOLVING
FUND LOAN IN AN AMOUNT NOT TO EXCEED $25,000,000 AND
APPROVAL OF ENTERPRISE FUND AMENDMENT NO. 1 TO
CONTRACT NO. C06116829 WITH RMC WATER & ENVIRONMENT IN
THE AMOUNT OF $1,000,000 FOR DESIGN SERVICES FOR THE
ULTRA-VIOLET DISINFECTION SYSTEM AT THE REGIONAL
WATER QUALITY CONTROL PLANT -CAPITAL IMPROVEMENT
PROGRAM PRO~CT #WQ-06014
RECOMMENDATION
Staff recommends that Council:
Adopt the attached resolution (Attachment A) authorizing the City Manager or his
designee to apply for a State Revolving Fund (SRF) loan in an amount not to exceed
$25,000,000 for the construction of an ultra-violet (UV) disinfection system
o a)Authorize the City Manager or his designee to execute Amendment 1 (Attachment B) to
contract #C06116829 with RMC Water & Environment (RMC) in the amount of
$1,000,000 for the design services oft he UV disinfection system for the Regional Water
Quality Control Plant (RWQCP). The amended contract amount would total $1,299,940.
b) Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with RMC for additional meetings, value engineering, permit
assistance, and special services identified in Exhibit B of the contract, the total value of
which shall not exceed $350,000.
BACKGROUND
The RWQCP began planning for a sustainable future with the initiation of the Long-Term Goals
Study (LTGS) in 2000. Through a series of workshops, the RWQCP and stakeholders
established a set of goals for the Plant that meets the environmental and socio-economic needs of
the member communities. The UV disinfection system was the focus of the LTGS because of its
use of hazardous chemicals, and was identified for change as the ftrst step towards sustainability.
Subsequent studies and workshops with the stakeholders concluded that UV disinfection presents
the most viable alternative to replace the existing chemical disinfection system. On June 19,
2006 (CMR:266:06), Council authorized RMC to prepare the UV Facility Plan to assess the
feasibility of implementing a UV disinfection system to replace the existing disinfection system
at the RWQCP. The executive summary of the Plan is Attachment C.
CMR:322:07 Page 1 of 5
6
DISCUSSION
The UV Facility Plan (Plan) builds upon the work done in previous studies, primarily the LTGS
and subsequent studies that spanned a period of several years. Two alternative projects were
evaluated by the Plan. Alternative 1 would replace the existing disinfection system with UV
disinfection. Alternative 2 would maintain the existing chemical disinfection at the RWQCP.
The Plan includes life-cycle environmental and economic review of the UV alternative versus
maintaining the existing chemical alternative, as well as technical analyses and the pre-design of
the UV system. The life-cycle assessment took into account manufacturing, processes, and
transportation associated with each alternative. As summarized in the table below, the UV
alternative releases fewer toxins, consumes less energy, and lowers the RWQCP’s greenhouse
gas emissions.
THMs (lb)
NDMA (lb)
Dioxin TEQ (lb)
Cyanide (lb)
Mercury (lb)
Ammonia (lb)
Greenhouse Gas, CO2 (lb/yr)
Energy Consumption (kWh)
20-year present worth costs
Life-Cycle Results
UV
Disinfection Alternative
0
0
1.3x10-7
0
1.4x 10-~
0
1,171,523
1,180,000
$26,95O,000
Existing Chemical
Disinfection Alternative
1570
8
5.6x10-7
190
1.0xl0-~
57,000
4,002,490
3,823,000
$12,556,000
Minimization of chemical use and emissions of toxins are the core elements of the RWQCP
long-term goals. The Council, at its January 2007 meeting, directed staff to reduce materials as
soon as possible to Sub-Title 19 thresholds. Implementation of the UV facility project will
accomplish both goals. In addition to reduction of toxins, the UV alternative also offers higher
reliability, fewer regulatory risks, and fewer risks of safety and health impact. While the
economic cost of UV treatment is greater than traditional chemical treatment, in view of the
many environmental and social advantages of UV disinfection, staff believes the higher cost is
justified.
Pursuing State and Federal low-interest loan and grants could minimize the financial impacts of
the project on rate-payers. Staff has made presentations to the State Water Resources Control
Board (SWRCB) on the ~ facility project. The project is listed on the SWRCB priority list for
a low interest State Revolving Fund (SRF) loan. Council authorization is a required part of the
loan application and must be submitted to the SWRCB before the application will be considered.
Once the application is submitted, there are several steps in the loan process that must be
completed, and Council will be making decisions in the subsequent steps, including the actual
loan amount, before the final loan approval by the SWRCB. Staff will return to Council as the
loan process progresses.
The UV disinfection facility is required to have sufficient capacity to treat the high wet-weather
flow that occurs each winter. During the lower flow summer months, the RWQCP plans to use
CMR:322:07 Page 2 of 5
the urmeeded UV capacity to generate additional recycled water to match the peak summer
irrigation requirement. This expanded recycled water capacity qualifies the RWQCP for a State
grant under the Water Recycling Program. Staff is monitoring State and Federal grants for the
project and will report to Council when the grant application process commences.
For the SRF loan and potential grant from the SWRCB, readiness to proceed is the highest-
ranking criteria for consideration of an award. Staff recommends proceeding with the design of
the UV system immediately to position the project favorably for financial assistance. The cost
for the design is retroactive for financial assistance. Under the basic contract, RMC completed
the UV Facility Plan. Amendment 1 would require RMC to perform the design services for the
UV facility including the backup system and auxiliaries.
Summary of Solicitation Process
A request for proposal (RFP) for the UV facility planning and the design services was sent to
nine consulting firms on April 10, 2006. The firms were given 29 days to respond to the request.
Two proposals were received on May 9, 2006. Those firms not responding indicated that they
did not submit a proposal because they are busy on other projects.
An evaluation committee consisting of representatives from the City of Los Altos, a Palo Alto
resident representing the stakeholders, and staff from Environmental Compliance and the
RWQCP reviewed the proposals and interviewed both ftrms. The committee carefully reviewed
each fn-m’s qualifications and submittal in response to the RFP relative to the following criteria:
specialized experience, past performance, qualifications, understanding of project goals, ability
to work with the public, familiarity with funding requirements, and other criteria. RMC was
selected because of its qualifications and experience, and the team communicated the best
understanding of the issues, challenges, and objectives of the project.
Council awarded the contract in an amount of $299,940 to RMC for the initial planning services.
in addition, the RFP provided that the contract could be modified to include additional detailed
design services. Staff recommends amending the contract with RMC for those additional design
services for the following reasons:
RMC’s proposed design team has completed six UV facility design projects and has
very good experience in the design and construction of UV facilities. Such record is
impressive since there are less than a handful of design firms that has a history of
successful wastewater UV design experience in the Bay area.
RMC showed clear understanding of the project issues including funding
requirements. RMC’s past records indicate that they would be instrumental to the
State and Federal funding processes.
RMC has worked with the stakeholders and regulatory agencies on the facility plan.
Their design team would provide continuity from planning to implementation for the
project.
RMC’s proposed fee is competitive for the type, amount, and complexity of work.
The following table provides a comparison of the design fee as a percentage of
construction costs for ~ system projects in the Bay Area.
CMR:322:07 Page 3 of 5
Agency Construction Design Design/construction
With UV system Cost Fee cost %
Watsonville Treatment Plant $24.7 million $1.89 million 7.65%
Novato Wastewater Treatment Plant $66.4 million $4.04 million 6.1%
Est.Proposed
Proposed RWQCP UV system $18.6 million $1 million 5.4%
RESOURCE IMPACT
Funds for this contract have been appropriated under the FY 2007-2008 Wastewater Treatment
Capital Improvement Program Project WQ-06014.
The design could lead to subsequent implementation of the UV system. The construction cost of
the UV project is currently estimated at $18.6 million. With a low-interest SRF loan, the
annualized cost of the project (design plus construction costs with no grant funding) would be
approximately $1.4 million for twenty years, which would be partially offset by operational
savings. Staff will return with cost details when the design is fmalized.
TIMELINE
Submit SRF loan application package
Start design
State approval of SRF loan
Construction start
Full facility on-line
August 2007
August 2007
August 2008
November 2008
August 2009
POLICY IMPLICATIONS
Recommendations of this staff report are consistent with City Council’s Sustainability Policy, by
reducing toxins discharge and greenhouse gas emissions.
ENVIRONMENTAL REVIEW
The Palo Alto Department of Planning and Community Environment determined that the project
is a replacement facility, which is categorically exempt from the California Environmental
Quality Act (CEQA) review pursuant to section 15302 of the California Code of Regulations
Guidelines for implementation of CEQA.
ATTACHMENTS
Attachment A:Resolution
Attachment B:Amendment No. 1 to Contract C06116829 with RMC Water & Environment
Attachment C:Executive Stmlmary
Copies of the attachments to this CMR:322:07 may be viewed at the Public Works Department
counter located at 250 Hamilton Avenue, 6th Floor, Palo Alto or by contacting Senior Engineer
Daisy Stark at 650-329-2287.
CMR:322:07 Page 4 of 5
PREPARED BY:Daisy Stark, Senior Engineer RWQCP
Richard Wetzel, Manager RWQCP
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
GLENN S. ROBERTS
Director .of Public
EMILY HARRISON
Assistant City Manager
CMR:322:07 Page 5 of 5
ATTACHMENT A
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO
ALTO AUTHORIZING THE CITY MANAGER TO SIGN AND
FILE A FINANCIAL ASSISTANCE APPLICATION FOR A
STATE REVOLVING FUND LOAN IN AN AMOUNT NOT TO
EXCEED TWENTY-FIVE MILLION DOLLARS FROM THE
STATE WATER RESOURCES CONTROL BOARD ON BEHALF OF
THE PALO ALTO REGIONAL WATER QUALITY CONTROL
PLANT FOR THE DESIGN AND CONSTRUCTION OF THE UV
DISINFECTION FACILITY
WHEREAS, the State Water Resources Control Board
provides !ow-interest loan funding through the State Water
Pollution Control Revolving Fund for construction of publicly-
owned wastewater treatment facilities, local sewers, sewer
interceptors, water reclamation facilities, as well as expanded
use projects such as implementation of nonpoint source (NPS)
projects or programs, development and implementation of estuary
Comprehensive Conservation and Management Plans, and storm water
treatment; and
WHEREAS, the Palo Alto Regional Water Quality Control
Plant (PARWQCP) staff has reviewed the application for loan
funding and other supporting information for the water recycling
project and has determined that the project complies with the
Water Resource Fund Guidelines; and
WHEREAS, the PARWQCP operates a disinfection facility
and treats the wastewater prior to discharge. The existing
facility needed replacement; and
WHEREAS, the State Water Resources Control Board
presently has loan funding available in the State Water
Pollution Control Revolving Fund to provide low-interest loan
funding for construction to assist in funding the costs of the
waste water treatment facilities construction project.
NOW, THEREFORE, the Council of the City of Palo Alto
does RESOLVE as follows:
SECTION i. The Council hereby authorizes and directs the
City Manager or his designee to sign and file, for and on behalf
of the City of Palo Alto, a Financial Assistance Application for
a loan from the State Water Resources Control Board in an amount
not to exceed twenty-five million dollars ($25,000,000.00) for
the design and construction of the UV Disinfection Facility
Project (the "Project").
070622 jb 0130146
SECTION 2. The City of Palo Alto hereby agrees and
authorizes the City Manager or his designee to certify that the
City has and will comply with all applicable state and federal
statutory and regulatory requirements related to any federal and
state loans received.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Mayor
APPROVED:
Senior Asst. City Attorney City Manager
Director of Public Works
Director of Administrative
Services
070622 jb 0130146
ATTAC~[IV~EN% ~
CITY OF PALO ALTO CONTRACT NO. C06116829
AMENDMENT NO. 1 TO CONTRACT NO. C06116829
BETWEEN THE CITY OF PALO ALTO AND
RMC WATER AND ENVIRONMENT
This Amendment No. i to contract No. C06116829 (~Contract") is
entered into , by and between the CITY OF PALO
ALTO, a California Charter City ("CITY"), and RMC WATER AND
ENVIRONMENT, a California Corporation located at 2290 North First
Street, Suite 212, San Jose, CA 95131 ("CONSULTANT").
RECITALS:
WHEREAS, the Contract was entered into between the
parties for the provision of professional consulting services
relating to the Disinfection Facility Plan ("Project"); and
WHEREAS, the parties wish to amend the Contract to
increase the scope of services and compensation;
NOW, THEREFORE, in consideration of the covenants, terms,
conditions, and provisions of this Amendment, the parties agree:
SECTION !. Section i, SCOPE OF SERVICES, is hereby
amended to add the following:
"The scope of services and deliverables constituting the Project
("Basic Services") will be performed, delivered or executed by
CONSULTANT in accordance with the schedule and the requirements of
Exhibit ~A" and Exhibit "A-I" for the additiona! scope of
services."
SECTION 2. Section 4, NOT TO EXCEED COMPENSATION, is
hereby amended to read as fol!ows:
"The compensation to be paid to CONSULTANT for performance of the
Services described in Exhibits "A" and "A-!", including both
payment for professiona! services and reimbursable expenses, shall
not exceed one million two hundred ninety-nine thousand nine
hundred and forty dollars ($1,299,940.00). In the event Additiona!
Services are authorized, the tota! compensation for services and
reimbursable expenses shall not exceed one million six hundred
seventy-nine thousand nine hundred and thirty dollars
($1,679,930.00). The applicable rates and schedule of payment are
set out in Exhibits "C", "C-I and "C-2", which are 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 Exhibits "C", "C-I and "C-2".
S:ATT/USERSiOFFICE FORMS/City Approved Contracts 3/20/07 (REV)
CITY OF PALO ALTO CONTRACT NO. C06116829
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 Exhibits
"A" and "A-! ....
SECTION 3. The following exhibit(s) to the Contract are
hereby set forth as attachment(s) to this Amendment, which are
incorporated in full by this reference:
EXHIBIT "A-I": ADDITIONAL SCOPE OF SERVICES
EXHIBIT "C-2": ADDITIONAL COMPENSATION
2
S:ATT/USERS/OFFICE FORMS/City Approved Contracts 3/20/07 (REV)
CITY OF PALO ALTO CONTraCT NO. C06116829
SECTION 3. Except as herein modified, all other
provisions of the Contract, including any exhibits and subsequent
amendments thereto, shall remain in fu!l force and effect.
IN WITNESS WHEREOF, the parties have by their duly
authorized representatives executed this Amendment on the date
first above written.
9~PROVED AS TO FORM:CITY OF PALO ALTO
Senior Asst. City Attorney Assistant City Manager
APPROVED:RMC WATER AND ENVIRONMENT
Director of Administrative
Services
By
Title :
Taxpayer Identification
(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).
S,ATT/UEEBS/OPF~C~ FOP.MS/City Approved Contracts 3/20/09 (REV)
CITY OF PALO ALTO CONTRACT NO. C06116829
Exhibit A-I
Additional Scope of Services
UV Disinfection Facility
Final Design
Consultant shall prepare fina! design documents for a UV
disinfection facility at the Palo Alto Regional Water Quality
Control Plant (RWQCP). The scope of work includes preparation
of the Basis of Design report, final design, and project
management.
The RWQCP currently uses chlorine gas to disinfect its treated
water and sulfur dioxide gas to dechlorinate the water prior
to discharge to the Bay. Minimization/elimination of toxic
chemicals such as gaseous chlorine and sulfur dioxide is a
core element of the RWQCP’s long-term goals that were
established in 2002.During the fall of 2004 the RWQCP
embarked on a project entitled the Disinfection Alternatives
Work Plan Study in which the RWQCP and its stakeholders
collaborated to identify,develop and screen candidate
disinfection techno!ogies.Through the Work Plan Study, it
was concluded that UV disinfection techno!ogy presented the
most viable alternative to gaseous chlorine and sulfur dioxide
use at the RWQCP. The Disinfection Facility Plan, completed
in 2007, built upon the work of the previous studies and
evaluated UV disinfection versus the no-project alternative in
more detail. The Facility Plan concluded that UV technology
was the preferred alternative for disinfection at the RWQCP.
This scope of work includes development of contract documents
for bidding and construction of a [IV facility, including the
auxiliary system, in accordance with the recommended project
from the Disinfection Facility Plan. The Consultant shall
perform, on parallel track, the design of (!) The
hypochlorite-bisulfite system as the auxiliary system for non-
disinfection uses; and (2) The UV disinfection system.
Consultant shall fast-track the design, and assist with the
expedition of the installation of the auxiliary system so that
the RWQCP can utilize the auxiliary system while the W system
is being finalized and constructed.
Amendment One Page 1 of ii
CITY OF PALO ALTO CONTRACT NO. C06116829
CONSULTANT SCOPE OF SERVICES
This Scope of Work defines the tasks that Consultant will
perform in completing the Project:The major task headings
are as follows:
Task I
Task 2
Task 3
Task 4
Basis of Design report
Design of Sodium Hypochlorite/Bisulfite System
Design of the UV system
Project Management
Task 1 Basis of Design Report
Consultant shall prepare a basis of design report to finalize
the design concepts presented in the Facility Plan report.
The primary objective of the basis of design report is to
present information and to receive feedback sufficient to
"freeze" the major design criteria and configurations.The
basis of design planning report shal!:
Finalize the overall treatment processes and
configuration
Define discipline engineering design and operating
criteria
~ Define basic facility layout
~ Define equipment requirements and procurement methods
The Basis of Design report shall include the following topics:
I.I Sodium hypochlorite/sodium bisulfite design criteria
The system shall be designed to serve as an auxiliary system
for non-disinfection plant uses, as well as providing
disinfection during the construction of the UV system. Review
the RWQCP pre-design information. Finalize the strategy to
fast track the design, bidding, and installation of the
system. Develop the design criteria, facility sizing, and
facility layout for a sodium hypochlorite/bisulfite system as
the auxiliary system for the non-disinfection chlorine uses at
the plant, and to provide disinfection during the construction
of the UV system. The TM shall develop design criteria,
facility sizing, and facility layout for a sodium
hypochlorite/bisulfite system. The sodium
hypochlorite/bisulfite system shall be sufficiently sized so
that it can serve as the primary disinfectant during
construction of the UV facilities, when it is anticipated that
the existing disinfection facility wilI be demolished to make
room for the LIV system.
Amendment One Page 2 of ii
CITY OF PALO ALTO CONTRACT NO. C06116829
1.2 UV Design criteria and process configuration
Review comments from City of Palo Alto Planning Department
Site/Design review. Update the UV TM from the Facility Plan,
finalize design criteria, process schematics, facility
layouts, and equipment procurement method.
1.3 Site Plan, yard piping, construction constraints and
sequencing
Develop the facility site plan taking into account the need to
maintain existing process functions in operation during
construction. TM will include the following:
o Overall site plan showing all process structures and
access roadways
o Location of major yard piping in the vicinity of the UV
system, i.e. pipes greater than 24 inches in diameter
Identify corridors for other yard piping and for electrical
duct banks.
1.4 Electrical and controls strategies
Update the electrical and controls strategy presented in the
Facility Plan report. It will include an updated analysis of
the electrical requirements and standby power for the UV
system and the hypochlorite/bisulfite system, and an
electrical/control room layout assuming it will be located in
the existing chlorine storage room
Building.Instrumentation and control
interface with the existing computer
software.P&ID diagrams for the new
included in the TM.
of the Chlorination
will be designed to
system and control
facilities will be
1.5 Implementation schedule
Develop an implementation schedule for the project, which will
include the following milestonesi
I. Fast track design, bidding and installation of the backup
system
2. Financing
3. Development and review of contract documents
4. Permitting process
5. Bid Period for the UV system
6. Construction Period including specific milestones for
construction sequencing
7. Substantial Completion
8. Fina! Completion
Amendment One Page 3 of ii
CITY OF PALO ALTO CONTRACT NO. C06116829
1.6 Cost Estimate
Update the construction cost estimate from the Facility Plan
report based on the process sizing and facilities presented in
the basis of design report. The estimate wil! be based on
vendor price quotes for major equipment, detailed cost
estimates for similar facilities, published construction cost
estimating guides, and in-house construction cost data. All
cost resources will be adjusted for work in the San Francisco
Bay Area and a bid in the summer of 2008. The American
Association of Cost Engineers defines this as a Budget level
estimate which is expected to be accurate within plus 30
percent or minus 15 percent.
1.7 Workshops
It is anticipated that three planning workshops with RWQCP
staff will be held as follows to present information and to
receive feedback:
o Workshop 1 UV and Hypochlorite/Bisulfite Systems
®Workshop 2 Construction Sequencing
~Workshop 3 Electrical and Controls Strategies
Deliverables
! electronic file and 5 copies of Draft and Final Basis
of Design report
Workshop agendas and minutes as listed above.
Task 2 Design of the Sodium hypochlorite/bisulfite System
The final design will be based on the design concepts
deve!oped in Task I, the Basis of Design Report. Consultant
shall perform fast-track design of the sodium
hypoch!orite/bisulfite system.The RWQCP will prepare
specifications based on the criteria developed in Task 1 and
procure major equipment. Consultant shall prepare bid
documents suitable for competitive bidding by the RWQCP for
the installation of the system based on the agreed upon
schedule between the RWQCP and Consultant.
Consultant shall incorporate appropriate comments from the
RWQCP, and prepare a final set of drawings and specifications
that will be stamped and signed by a licensed professional
engineer.
Amendment One Page 4 of ii
CITY OF PALO ALTO CONTP~ACT NOo C06116829
Deli verabl es :
15 copies - Specifications and Half size drawings for
installation of the system
1 copy - Mylars (22" x 34") of all drawings, wet signed
and stamped.
! copy - Electronic files of specifications and drawings
in CD
Task 3 Design of the UV System
The final design will be based on the design concepts
developed in Task i, the Basis of Design Report. Services
provided include surveying, performing engineering analyses,
and preparing drawings and specifications representing
approximately a mid-point, 90% and 100% level of design
completion. The RWQCP will review all submittals in a timely
manner and provide a consolidated list of comments to
Consultant.
The design package for the UV system shall address all of the
Planning Department’s site/design review comments including flood
zone and structural requirements, complete for submittal to Building
Department by the RWQCP. Consultant shal! prepare the UV system bid
documents to meet the RWQCP’s plan to convert to UV disinfection as
soon as possible.
3.1 Permitting
Consultant shall provide plans and calculations per City of
Palo Alto Planning Dept. comments. The RWQCP will prepare
permit application package, coordinate, and submit application
package for the UV system to the City of Palo Alto Building
Dept.
Deli verabl es :
Permit application plans and calculations for City of Palo
Alto Building dept.
3.2 Geotechnical Analysis
Consultant shall provide geotechnical analyses to enhance and
expand the existing geotechnical reports available for the
RWQCP.
Amendment One Page 5 of ii
CITY OF PALO ALTO CONTRACT NO.C06116829
3.3 Surveying
Consultant shall provide site surveying
site within the RWQCP boundaries.
for the proposed UV
3.4 UV Process Equipment Procurement Proposals
As recommended by the Consultant, the scope of work shall
assume that a "competitive proposal method" will be used for
the procurement of the UV equipment. The RWQCP understood
that the Consultant’s recommendation is based on the
following:
UV process equipment is a key to plant performance, and
reliability, safety, and maintenance.
Selection of the UV process equipment through a
"competitive proposal method" will enable the RWQCP to
make a selection based on relevant factors of
construction cost, annual O&M cost, reliability, and
energy efficiency.
It will allow the detailed design to address the specific
features of the chosen equipment. Otherwise, due to the
wide differences in facility requirements among the
vendors, multiple designs would need to be done for each
alternative process vendor, significantly increasing the
level of design effort.
Consultant shall devise the competitive proposal method to
enable the RWQCP to receive competitive pricing, and select
based on qualifications. Consultant shal! attend a meeting
with the RWQCP to present the procurement method to the
State Water Resources Control Board (SWRCB) and obtain the
SWRCB’s approval on the process. The portions of design
that are dependent on this procurement process shall not
begin until approval is received from the SWRCB. In the
event that the SWRCB does not approve the procurement
process, Consult shall immediately strategize with the RWQCP
to modify the design/procurement method and to proceed with
an efficient design.
Consultant shall
deliverables:
provide the following services and
Prepare technica! sections of the Request for Proposals
Define Basis of Determination (Selection Criteria)
Amendment One Page 6 of Ii
CITY OF PALO ALTO CONTRACT NO. C06116829
Revise Equipment Specifications
Prepare General Arrangement drawings
Attend pre-proposal Meeting with Vendors
Answer Vendor Questions
Evaluate Vendor Proposals
Prepare Selection TM
Selection Workshop with City
Assist City’s Purchasing Dept. with the negotiation of
terms with selected vendors
3.5 Preparation of Contract Documents
This subtask includes the technical work necessary to develop
biddable plans and specifications for the project.
Construction drawings shall be prepared using the latest
version of AutoCAD and specifications will be prepared in the
CSI format using Microsoft Word. Consultant shall be
responsible for the preparation of technical specifications.
Consultant shall also be responsible for the review of City’s
boiler plate "Section i, Division 0" specifications and
provide recommendations to City for any modifications needed
to ensure a complete and functional bid document as intended.
The instrumentation and contro! work shall also include
development of process loop control descriptions to be used in
the PLC programming by RWQCP staff.
Mid-point Design Submittal
Mid-point design package shall consist of:
Drawings:
General drawings (abbreviations, legends, symbols)
Hydraulic profile and plant f!ow schematics
Project P&IDs
Grading, drainage and roadway work
Yard piping plans showing major pipelines
Mechanical drawings for each process
Equipment layouts for all major facilities
Electrical single line drawings
Control system architecture block diagram
Equipment data sheets for all major equipment
An updated list of drawings remaining to be prepared
Amendment One Page 7 of Ii
CITY OF PALO ALTO CONTRACT NOo C06116829
Specifications:
Draft Construction Sequencing and Special Constraints
section
® Technical Provision specification sections on selected
major equipment.
® An updated list of specification sections remaining to be
prepared
® A list of specific items requiring RWQCP decisions
Drawings and specifications shall be submitted on a work-in-
progress basis, and work to prepare for value engineering
shall begin while the Mid-point Submittals are being reviewed
by the RWQCP and the SWRCB. Following RWQCP review of the
Mid-point design review submitta!, Consultant shall hold a
half-day workshop with the RWQCP staff to discuss the review
comments on the submittal. Consultant shall attend and assist
the RWQCP with a presentation to the SWRCB on the design.
Deliverables:
copies of the Mid-point drawings - half size
copies of the Mid-point specifications
90% Design Submittal
The 90% design shall incorporate comments from the RWQCP, the
SWRCB, and value engineering. The 90% submittal package shall
contain a complete set of all drawings and specifications for
the project components, updated construction schedule, updated
construction cost estimate, and summary of changes from the
Mid-point design submitta!. Following RWQCP review of the
90% design review submittal, a half-day workshop will be held
involving the project team and the RWQCP to discuss the review
comments on the submittal.
Deliverables:
5 copies of the 90% drawings - half size
5 copies of the 90% specifications
Memorandum presenting the 90% design cost estimate
Meeting minutes from the half day review workshop
100% Design Submittal
Consultant shall incorporate comments from the 90% submittal
into a final set of drawings and specifications and will
submit them for review by the RWQCP and the SWRCB. The
Amendment One Page 8 of II
CITY OF PALO ALTO CONTRACT NO. C06116829
purpose of the 100% submittal
approval.
Del i verabl es :
is to obtain the SWRCB’s
copies of the 100% drawings - half size
copies of the 100% specifications
Final Bid Documents Submittal
Consultant shall incorporate appropriate comments from the
100% submitta! into a fina! set of drawings and specifications
that will be stamped and signed by a licensed professional
engineer.
Deli verabl es :
50 copies - Specifications and Half size drawings
1 copy - Mylars (22" x 34") of all drawings, wet signed
and stamped.
1 copy - Electronic files of specifications and drawings
in CD
Task 4 Project Management
Project management shall be an integral part of the
Consultant’s scope of work. Consultant shall provide project
management to monitor al! activities, schedule, and budgets of
the project. The Project Management activities will include
the following:
4.1 Project Progress Meetings
Consultant shall prepare for and conduct monthly project
progress meetings with the RWQCP. Project progress meetings
between Consultant and the RWQCP shall communicate progress on
the project, obtain review comments, discuss upcoming work
activities, identify and resolve project issues, obtain
endorsement for the design decisions, and/or discuss permits
and easements.
Consultant shall also prepare for and give up to three (3)
presentations to external parties (CITY Council, SWRCB,
external stakeholders, etc.)
Amendment One Page 9 of Ii
CITY OF PALO ALTO CONTB.ACT NO. C06116829
4.2 Monthly Progress Reports
Consultant shall furnish monthly progress reports to the RWQCP
to keep the RWQCP informed regarding the project work
progress, issues, and financial status.These reports will
include:
Invoices by task and by individual
Scope Report - A narrative progress report of specific
accomplishments during the reporting period, problems
encountered or anticipated, project decision log, and
work scheduled for the next reporting period.
Cost Report - A report that shows the current period and
accumulated expenditures to date by task, the approved
not to exceed fee, the estimated cost of completion, and
a comparison of the latter two to show any variation.
The planned expenses will be provided for comparison.
4.3 Quality Assurance and Quality Control Reviews
Quality assurance and quality control (QA/QC) activities shall
include detailed review of project design documents, drawings,
and calculations.
De!iverables:
Monthly progress report
Monthly invoice by task and by individual
Agenda, Preparation Materials, and Minutes for Project
Meetings
ADDITIONAL SERVICES
Consultant may be required to perform additional services
listed below. Consultant shall perform the additional services
upon written authorization by the RWQCP. Payment~ for the
additional services shal! 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. Additiona! services may include:
AI.Field services and assistance with installation of the
sodium hypochlorite/bisulfite system
A2.Additional design as an unexpected outcome of task 3.4
A3.Additional workshops and meetings that are not part of
the basic scope of work
Amendment One Page i0 of II
CITY OF PALO ALTO CONTRACT NO. C06116829
A4.
AS.
A6.
Assistance with permitting
Attendance or assistance with Value engineering
Services during bid phase
PROJECT SCHEDULE
The project shall start in August 2007. The consultant shall
perform work on the Project in accordance with the schedule
included as Exhibit "A-I" to this scope of work.
PAYMENT
Progress payments for consultant services shall reflect the
amount of effort and percent completion. The cumulative
payment shall not exceed the completed percent of the total
project fee based on the completed tasks or deliverables, and
the attached Schedule of Charges.
*** END ***
Amendment One Page Ii of ii
CITY OF PALO ALTO CONTRACT NO. C06116829
EXHIBIT "~C-2"
ADDITIONAL COMPENSATION
The CITY agrees to compensate the CONSULTANT for
professional services performed in accordance with the
terms and conditions of this Agreement, and as set
forth in the budget schedule below. Compensation shall
be calculated based on the hourly rate schedule
attached this agreement as exhibit C-I up to the not to
exceed budget amount for each task set forth below.
The compensation to be paid to CONSULTANT under this
Agreement for all services described in Exhibit
("Additional Scope of Services") and reimbursable
expenses shall not exceed $i,000,000.00. CONSULTANT
agrees to complete al! Additional Scope of Services,
including reimbursable expenses, within this amount.
In the event CITY authorizes any Additional Services,
the maximum tota! compensation shall not exceed
$1,350,000.00. Any work performed or expenses incurred
for which payment would result in a total exceeding the
maximum amount of compensation set forth herein shall
be at no cost to the CITY.
CONSULTANT shal! perform the tasks and categories of
work as outlined and budgeted be!ow. The CITY’s project
manager may approve in writing the transfer of budget
amounts between any of the tasks or categories listed
below provided the total compensation for Basic
Services, including reimbursable expenses, does not
exceed $I,000,000.00 and the total compensation for
Additional Services does not exceed $350,000.00.
BUDGET SCHEDULE NOT TO EXCEED AMOIINT
Task I
(Basis of Design)
$100,400
Task 2 $127,500
(Design of Sodium Hypochlorite/Bisulfite System)
Task 3
(Design of UV System)
$739,200
Task 4
(Project Management)
$32,700
Amendment One 1
CITY OF PALO ALTO CONTRACT NO. C06116829
Sub-total Basic Services
Reimbursable Expenses
Total Basic Services and Reimbursable expenses
Additional Services (Not to Exceed)
Maximum Total Compensation
REIMBURSABLE EXPENSES
$999,800
$2oo
$i,000,000
$350,000
$1,350,000
CITY shall reimburse CONSULTANT for reimbursable
expenses including, postage, mileage and other
miscellaneous costs, at cost plus 10%.All requests
for payment of expenses shal! be accompanied by
appropriate backup information.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only
by advanced, written authorization from the CITY. The
CONSULTANT, at the CITY’s project manager’s request,
shall submit a detailed written proposal including a
description of the scope of services, schedule, level
of effort, and CONSULTANT’s proposed maximum
compensation, including reimbursable expense, for such
services based on the rates set forth in Exhibit C-I.
The additional services scope, schedule and maximum
compensation sha!l be negotiated and agreed to in
writing by the CITY’s project manager and CONSULTANT
prior to commencement of the services. Payment for
additiona! services is subject to all requirements and
restrictions in this Agreement
Work required because the following conditions are not
satisfied or are exceeded shall be considered as
additional services:
AI.
A2.
Field services and assistance with installation
of the sodium hypochlorite/bisulfite system
Additional design as an unexpected outcome of
task 3.4
A3.Additional workshops and meetings that are not
part of the basic scope of work
Amendment One 2
CITY OF PALO ALTO CO.N-TP~ACT NOo C06116829
A4.
A5.
A6.
Assistance with permitting
Attendance or assistance with value engineering
Services during bid phase
Amendment One 3