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HomeMy WebLinkAboutStaff Report 13434 City of Palo Alto (ID # 13434) City Council Staff Report Meeting Date: 6/20/2022 Report Type: Consent Calendar City of Palo Alto Page 1 Title: Approval of a Professional Services Agreement With Carollo Engineers, Inc. for Development of a One Water Plan for the City of Palo Alto Contract Number C23183089 in the Total Amount Not-to-Exceed $559,000 From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council approve and authorize the City Manager or their designee to execute the attached contract C23183089 (Linked Document) with Carollo Engineers, Inc. in an amount not-to-exceed $559,000 for the development of a One Water Plan for the City of Palo Alto. Executive Summary The goal of the One Water Plan is Council adoption of a One Water supply plan that is a 20-year adaptable roadmap for implementation of prioritized water supply and conservation portfolio alternatives. Carollo Engineers, Inc., will conduct evaluations, develop criteria, assist with engaging stakeholders, develop, analyze and evaluate water supply and conservation portfolio alternatives. Carollo Engineers Inc., will then deliver a standalone electronic report that can be used as an adaptable water supply plan as well as an Excel-based tool for evaluating and prioritizing the water supply and conservation portfolio alternatives. At the end of the project, City staff will have ownership of the tool, so City staff may continue to make updates as conditions change and more detailed data emerges in order to provide adaptive recommendations to the City Council. Upon completion, staff will present the One Water Plan report to the City Council for consideration of adoption. Background Palo Alto’s Water Supply and Conservation The City of Palo Alto (“City” or “Palo Alto”) receives 100% of its potable water from the San Francisco Public Utilities Commission (SFPUC) through the Regional Water System (RWS). The City also uses some recycled water produced at the Palo Alto-operated Regional Water Quality Control Plant (RWQCP) for irrigation of the municipal golf course, a park, and some other minor applications. A system of local groundwater wells and storage provide emergency water supply City of Palo Alto Page 2 service. The City partners with Valley Water to offer a wide-range of water conservation programs to residential and commercial customers. A key action in the Sustainability and Climate Action Plan (S/CAP) Update is to develop a plan for implementing a One Water portfolio, a water supply plan that will analyze the City’s potential water supply priorities and conservation opportunities. This action aligns with Council’s commitment to developing alternative water supplies to preserve and protect the Tuolumne River. Palo Alto Council Support of the Bay Delta Plan In December 2018, the State Water Resources Control Board (SWRCB) adopted amendments to the Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta Estuary (Bay Delta Plan Amendment) to establish water quality objectives to maintain the health of the Bay Delta ecosystem. Palo Alto Council expressed support for the Bay Delta Plan Amendment in its August 20, 2018 vote “to support the SWRCB Bay Delta Plan to have 30-50% of unimpaired flow in the San Joaquin Valley enter the Delta from February to June and associated Southern Delta salinity objectives; and send a letter expressing this policy position to Bay Area Water Supply and Conservation Agency (BAWSCA), California State Water Resources Control Board, San Francisco Public Utilities Commission (SFPUC), and other stakeholders Staff believes should receive the letter.”1 SFPUC projects that if the Bay Delta Plan Amendment is implemented, the SFPUC will be able to meet Palo Alto’s projected water demands in normal years but will experience supply shortages in single and multiple dry years and will require rationing in all dry years. Alternative water supplies including water reuse and water conservation are key components in Palo Alto’s local water supply planning in order to prepare for increased frequency and intensity of droughts and water shortages. The One Water Plan will evaluate water supply alternatives and include the impact of long-term water supply shortage on the water supply. One Water A key action in the S/CAP is to develop a plan for implementing a One Water portfolio. A One Water approach takes a broad comprehensive look at water supply options. The US Water Alliance, a national nonprofit organization whose mission is to drive One Water breakthroughs that positively transform our environment, economy, and society, explains that a One Water approach can take many forms, but all share some unifying characteristics: • The mindset that all water has value—from the water resources in our ecosystems to our drinking water, wastewater, and stormwater. • A focus on achieving multiple benefits, meaning that our water-related investments should provide economic, environmental, and societal returns. 1 August 20, 2018 City of Palo Alto City Council Minutes https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/00-archive/2018/08-20-2018-final-ccm-minutes.pdf City of Palo Alto Page 3 • Approaching decisions with a systems mindset that encompasses the full water cycle and larger infrastructure systems. • Utilizing watershed-scale thinking and action that respects and responds to the natural ecosystem, geology, and hydrology of an area. • Relying heavily on partnerships and inclusion, recognizing that real progress will only be made when all stakeholders have a seat at the table.2 The One Water Plan will consider Green Stormwater Infrastructure (GSI), recycled water and other non-potable water sources, as well as groundwater to supplement and preserve the potable water supply. The One Water Plan will also utilize and build on other completed plans and plans in progress. Two of these important building blocks include the Northwest County Recycled Water Strategic Plan and Green Stormwater Infrastructure (GSI) Plan. Both are described in detail in Attachment B. The One Water Plan will also consider uncertainties and external factors that will impact existing and potential water supply options. Among these are regulatory changes, climate change and the Agreement Between and Among Palo Alto, Mountain View, and the Santa Clara Valley Water District to Advance Resilient Water Reuse Programs in Santa Clara County (Effluent Transfer Agreement), all described in Attachment B. Discussion Staff plans to use a One Water approach, which takes a broad, comprehensive look at water supply options over a 20-year planning horizon. The One Water Plan will be an adaptable roadmap for implementation of prioritized water supply and conservation portfolio alternatives. Staff requires a consultant to conduct evaluations, develop criteria, assist with engaging stakeholders, develop, analyze and evaluate water conservation and supply portfolio alternatives. The One Water Plan project has the following main components: • Task 1.0 Project Coordination & Administration including Stakeholder Input; • Task 2.0 Become Familiar with Existing Components of the One Water Plan and Identify Gaps • Task 3.0 Complete Analysis and/or Gather Information on Missing Resources identified in Task 2.0 • Task 4.0 Develop Evaluation Criteria for Assessing Water Supply and Conservation Portfolio Alternatives; • Task 5.0 Develop and Evaluate Future Water Supply and Conservation Portfolio Alternatives; • Task 6.0 Final Deliverables to the City including a standalone report that can be used as an adaptable water supply plan for implementing a One Water portfolio for the planning horizon from calendar years 2023 through 2043; and an Excel-based tool for evaluating and prioritizing the Portfolio Alternatives using the criteria developed in Task 4.0. 2 http://uswateralliance.org/sites/uswateralliance.org/files/publications/Roadmap%20Executive%20Summary.pdf City of Palo Alto Page 4 The City released the Request for Proposals (RFP) for the One Water Plan on November 17, 2021 and received 5 proposals. Summary of Bid Process Bid Name/Number One Water Plan/RFP 183089 Proposed End Date of Project June 30, 2023 Number of Prospective Bidders on PlanetBids 28 Total Days to Respond to Bid 63 Date of Pre-Bid Meeting December 2, 2021 Number of Bids Received: 5 Bid Price Range $394,925 to $630,540 An evaluation committee consisting of staff from Public Works and Utilities Departments reviewed the proposals. Three firms were invited to participate in oral interviews on February 16, 2022. The proposals were judged on the following criteria: o Quality and completeness of the proposal; o Quality, performance and effectiveness of the solution, goods and/or services to be provided by the Proposer; o Proposer’s experience, including the experience of staff to be assigned to the project, the engagements of similar scope and complexity; o Cost to the City; o Proposer’s financial condition and stability; o Proposer’s ability to perform the work within the time specified; o Proposer’s prior record of performance with City or other local, county or state agency; o Proposer’s compliance with applicable laws, regulations, policies (including City Council policies), guidelines and orders governing prior or existing contracts performed by the contractor. Carollo Engineers, Inc. was selected as the preferred consultant team due to their demonstrated strong technical knowledge and experience as a national One Water thought leader. Carollo Engineers, Inc. has unmatched national One Water planning experience, including the completion of One Water plans for a variety of cities such as the City of Aspen, City of Santa Barbara, City of South Pasadena, Denver, and Los Angeles. Additionally, the One Water project leadership team that Carollo Engineers, Inc. proposed for Palo Alto has experience collaborating and leading One Water plans of other cities to a successful outcome. The quality of Carollo Engineers, Inc. proposal was exceptional in its proposed innovations to encourage and facilitate stakeholder engagement. Carollo Engineers, Inc. will also use Criterium Decision Plus software to present quick sensitivity analysis and visualization of alternatives. The City of Palo Alto Page 5 consulting team will develop comprehensive supply and conservation option fact sheets, as well as collaboratively develop a stakeholder engagement roadmap to provide for proactive engagement planning. Carollo Engineers, Inc. will develop an Excel-based tool that will evaluate and prioritize portfolio alternatives, facilitate weighted criteria decision making, and display dashboard-style outputs. At the end of the project, City staff will have ownership of the tool, so City staff may continue to make updates as conditions change and more detailed data emerges in order to be able to provide adaptive recommendations to the City Council. Carollo Engineers, Inc. will also deliver a report with a trigger-based implementation roadmap that will help Palo Alto make important and cost-effective water supply decisions. Staff negotiated with Carollo Engineers, Inc. and mutually agreed upon a scope of services not to exceed $559,000. Timeline Immediately upon execution of the contract, Carollo Engineers, Inc. will begin work on the project. The final deliverables described below will be completed within 12 months of the City’s Notice to Proceed. Optional subtasks will be completed within 6 months of written authorization to proceed from the City or a mutually agreed-upon completion date. The final deliverables are as follows: 1) A standalone electronic report that can be used as an adaptable water supply plan for implementing a One Water portfolio for the planning horizon from calendar years 2023 through 2043. Each water supply and conservation portfolio alternative will contain planning level life-cycle cost estimates to guide City investments, and priorities into the future as changes occur. 2) Excel-based tool for evaluating and prioritizing the Portfolio Alternatives using the criteria developed as part of this contract. 3) Any and all other materials created such as workpapers, GIS layers, to produce the standalone electronic report and Excel based tool. Resource Impact Funding for year one is available in the FY 2022 operating budget from the following sources: Water Fund ($459,000), Stormwater Management Fund ($25,000), and Wastewater Treatment Fund ($25,000). Funding for year two is programmed in the FY 2023 Proposed operating budget, subject to City Council approval, in the Stormwater Management Fund ($25,000), and Wastewater Treatment Fund ($25,000). This contract is on the City’s professional services template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non-appropriation of funds or amending the contract to reduce the cost, for example, by reducing the scope of work. The contract may also be temporarily suspended by written notice of the City Manager. City of Palo Alto Page 6 Staff is advancing this recommendation as reflected in the City’s adopted budget. Should the City Council wish to defer this project in light of the current pandemic and other priorities related to community and economic recovery, this item may be removed from the Consent Calendar. Staff will then return to Council with this and other projects for reconsideration. Policy Implications The project is consistent with Council direction to reduce imported water supplies and limit or reduce diversions from the Tuolomne River. Additionally, the approval of this contract is consistent with existing City policies and is part of the implementation of a key action in the 2020 S/CAP Update to develop a plan for implementing a One Water portfolio. It is also consistent with the Council approved 2018 Utilities Strategic Plan, specifically Priority 4 “Financial Efficiency and Resource Optimization,” Strategy 4 “Achieve a sustainable and resilient energy and water supply to meet community needs,” and Action 3 “Evaluate recycled water, groundwater, and other non-potable water sources and integrate the results and outcomes with water supply plans.” The project also aligns with the City’s Comprehensive Plan, which contains Natural Environment Goal N-4: Water resources and infrastructure that are managed to sustain plan and animal life, support urban activities and protect public health and safety. Policy N-4.1 addresses the long- term water supply: maintain a safe, clean and reliable long-term supply of water for Palo Alto and Policy N-4.5 supports the development of a multi-faceted approach to ensure resilient supply and management of water in Palo Alto during significant periods of drought. Additionally, Program N4.17.3 addresses water reuse: investigate ways to reuse non-traditional water sources including recycled, gray, black and stormwater. Stakeholder Engagement On July 7, 2021, the Utilities Advisory Commission reviewed a draft scope for the One Water Plan (Staff Report #12332). Task 1.2 in the scope for the One Water Plan is stakeholder engagement; Carollo Engineers, Inc. will assist and support City staff in consistent, robust and meaningful stakeholder engagement throughout the development of the One Water Plan. Environmental Review The development of the One Water Plan is not a project requiring California Environmental Quality Act review, because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. Next Steps The goal of the One Water Plan is Council adoption of a One Water supply plan that is a 20-year adaptable roadmap for implementation of prioritized water supply and conservation portfolio alternatives. Upon completion of the One Water Plan report, staff will present it to the City Council for consideration of adoption. Attachments: • Attachment A: Carollo Engineers, Inc.; Contract C23183089 City of Palo Alto Page 7 • Attachment B: One Water Plan Considerations Professional Services Rev. Dec.15, 2020 Page 1 of 24 CITY OF PALO ALTO CONTRACT NO. C23183089 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND CAROLLO ENGINEERS, INC. This Agreement for Professional Services (this “Agreement”) is entered into as of the 20th day of June, 2022 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CAROLLO ENGINEERS, INC., a Delaware corporation, located at 2795 Mitchell Drive, Walnut Creek, CA 94598 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to award a contract for the One Water Plan (the “Project”) and desires to engage a consultant to provide a water supply plan that is a 20-year adaptable roadmap for implementation of prioritized water supply and conservation portfolio alternatives in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. 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 June 30, 2024 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the 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, entitled “SCHEDULE OF PERFORMANCE”. 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 DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 2 of 24 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 shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Five Hundred Fifty-Nine Thousand Dollars ($559,000). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. CONSULTANT agrees to complete all Services, including reimbursable expenses, listed in Exhibit A entitled “SCOPE OF SERVICES” within this amount including any additional services. 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, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess 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 subcontractors, if any, 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 Services to be furnished by CONSULTANT under this Agreement shall 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 Services under this Agreement, as amended from time to time. 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. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 3 of 24 SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to 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 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. 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 approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are: CONSULTANT shall be responsible for directing the work of any subcontractors and for any DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 4 of 24 compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Inge Wiersema as the CONSULTANT’s Project Manager, email: iwiersema@carollo.com, Mobile Phone number (626)393-7424 and Office Phone (213)489-1587 to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager 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 CONSULTANT 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 Services or a threat to the safety of persons or property. CITY’s Project Manager is Lisa Bilir, Utilities Department, Resource Management Division, 250 Hamilton Ave., Palo Alto, CA, 94301, Telephone: (650)329-2543. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 5 of 24 “Indemnified Party”) from and against any and all third party 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 attorney’s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. 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 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 32.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. 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, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will 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. 18.3. 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, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 6 of 24 days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. 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. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. 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 (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the 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 provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 32 and 33. 19.4. 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, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 7 of 24 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 Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing 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. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties 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, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 8 of 24 manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal 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 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 9 of 24 SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 10 of 24 Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 33 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. CITY-PROVIDED INFORMATION. The CITY shall furnish the CONSULTANT available studies, reports and other data it deems necessary for CONSULTANT's performances of Services under this Agreement, which CONSULTANT may use and rely upon to perform those Services, so long as CONSULTANT’s use of any Confidential Information complies with Section 28. SECTION 30. ESTIMATES AND PROJECTIONS. Other than cost estimates addressed in Section 9, CONSULTANT has no control over the cost of labor, materials, equipment or services furnished by others, over the incoming water quality and/or quantity, or over the way the CITY’s plant(s) and/or associated processes are operated and/or maintained. Data projections and estimates are based on CONSULTANT’s opinion based on experience and judgment. SECTION 31. THIRD PARTIES. The Services to be performed by CONSULTANT are intended solely for the benefit of the CITY. SECTION 32. MISCELLANEOUS PROVISIONS. 32.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 32.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 11 of 24 32.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 32.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 32.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 32.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 33) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control. 32.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 32.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 32.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 12 of 24 SECTION 33. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: EXHIBIT A: SCOPE OF SERVICES EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 13 of 24 CONTRACT No. C23183089 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ City Attorney or designee APPROVED: ____________________________ Utilities Director CAROLLO ENGINEERS, INC. Officer 1 By:_________________________________ Name:______________________________ Title:_______________________________ Officer 2 By:_________________________________ Name:_______________________________ Title:________________________________ DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Inge Wiersema Vice President Vice President Anne E Prudhel Professional Services Rev. Dec.15, 2020 Page 14 of 24 EXHIBIT A SCOPE OF SERVICES Scope of Services CONSULTANT will produce the One Water Plan, a water supply plan that is a 20-year adaptable roadmap for implementation of prioritized water supply and conservation portfolio alternatives, by providing the services outlined below. Task 1.0 Project Coordination & Administration • CONSULTANT will provide management of all task activities, including project team assignments; meeting preparation and attendance; maintenance and monitoring of the budget and schedule; quality assurance and quality control of all deliverables; and coordination of all sub-consultants. • CONSULTANT will attend and coordinate routine update meetings with the City and other stakeholders to occur quarterly throughout the project and which will be supplemented with up to eight (8) additional project meetings and twelve (12) project manager meetings between City staff and CONSULTANT. All meetings mentioned in this scope will take place virtually or in a hybrid format at City discretion with MS Teams, Zoom, or a similar platform. • CONSULTANT will develop and maintain a comprehensive overall project budget tracking system for the project and provide read-only access to the City. Task 1.1 Project Coordination & Administration Deliverables • CONSULTANT will produce a master schedule for the project including phasing of work, critical paths, and milestones. • CONSULTANT will provide meeting attendees with meeting agendas, summary minutes and supplemental materials used during the update meetings no later than seven (7) working days after the update meeting. • CONSULTANT will provide progress, schedule, and budget updates to City on a monthly basis and as requested by the City. • CONSULTANT will support City staff to collaboratively develop the stakeholder engagement roadmap. Task 1.2 Stakeholder Input CONSULTANT will: • Hold two (2) meetings for City staff from other Divisions and Departments at 50% and 75% project completion o CONSULTANT will present project progress results to stakeholders o CONSULTANT will incorporate feedback provided o Stakeholders include, but are not limited to, staff in Utilities, Public Works, Planning, Urban Forestry, Administrative Services, and Legal. • Provide ongoing communication and coordination of key information with City staff with an effort to avoid duplication and be consistent with work efforts in other departments while identifying and focusing on gaps and opportunities that provide water supply benefits. • Hold three (3) stakeholder meetings for general public, including active community-based organizations and community members at project outset, and approximately 80% and 95% DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 15 of 24 project completion. o CONSULTANT will present project scope and approach at project outset and project progress results at approximately 80% and 95% project completion o CONSULTANT will incorporate feedback provided o Stakeholders include, but are not limited to, residents, nongovernmental organizations, the RWQCP partner agencies, Valley Water, and the SFPUC. o CONSULTANT is not responsible for coordinating the arrangements for meeting venues for stakeholder meetings o CONSULTANT is not responsible for Other Direct Charges related to stakeholder meetings such as venue rent, refreshments, equipment rental, etc. • Provide periodic communication and coordination of key information with relevant staff from stakeholder agencies or individuals with an effort to avoid duplication and be consistent with work efforts in stakeholder organizations and regional planning efforts, while identifying and focusing on gaps and opportunities that provide water supply benefits, as appropriate for Palo Alto. Task 1.3 Optional Task Upon Request by City, Stakeholder Input • Upon request by City, CONSULTANT will: o Support City staff with the preparation of a survey for Palo Alto customers seeking feedback on the One Water Plan; gathering, analysis, and summarizing the result is not included in this task. o Hold one (1) additional stakeholder meeting with City staff and one (1) additional stakeholder meeting with the general public. Task 1.4 Optional Task Upon Request by City, Palo Alto Process Support • Upon request by City, CONSULTANT will support staff through City approval process of the One Water Plan including assistance with presentation preparation and attendance and responding to questions at o One (1) Utilities Advisory Commission (UAC) meeting or UAC subcommittee meetings, if applicable o One (1) Council meeting Task 2.0 Become Familiar with Existing Components of One Water Plan and Identify Gaps • CONSULTANT will: o Review the following documents  2017 WIRP after resource costs are updated by City staff  2019 Effluent transfer agreement with Valley Water and the City of Mountain View  Phase III Recycled Water Expansion project business case  Groundwater basin study  2020 Northwest County Recycled Water Strategic Plan  Technical memos on basement dewatering, using emergency wells to irrigate parks, and increasing flow to RWQCP by diverting permanent dewatering water to plant  Draft 2020 S/CAP chapter on water  Palo Alto Sea Level Rise Policy and consultant scope of work  Green Stormwater Infrastructure Plan and Implementation DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 16 of 24  SFPUC’s climate change impact study “Long Term Vulnerability and Adaptation Plan for the SFPUC Water Enterprise” (once it is released, expected in summer 2021)  Palo Alto 2020 Urban Water Management Plan  Palo Alto Urban Forestry Master Plan  Palo Alto Tree Technical Manual  Palo Alto Green Building Ordinance and any other relevant ordinances  Existing water conservation Programs and Rebates o Identify and review missing information for inclusion in One Water Plan. Task 3.0 Optional Task Upon Request by City, Complete Analysis and/or Gather Information on Missing Resources Identified in Task 2.0 Upon request by City, CONSULTANT will gather information on missing resources and/or complete additional analysis identified in Task 2.0. Task 4.0 Develop Evaluation Criteria for Assessing Water Supply and Conservation Portfolio Alternatives CONSULTANT will develop evaluation criteria for assessing water supply and conservation portfolio alternatives that at a minimum consider the following: • Planning level cost, capital, O&M and replacement of asset (life cycle costs), avoided costs and unit cost • Possible sources and availability of funding • Normal year reliability • Drought resiliency • Contribution to canopy health • Water Quality • Sustainability • Equity • Flexibility to adapt to changing conditions including SFPUC activities, state actions regarding environmental flows or water reuse regulations, Valley Water activities, and climate change • Complexity • Alignment with other City and regional initiatives including S/CAP, green stormwater program, sea level rise policy, and Comprehensive Plan • Ease of implementation • Speed of implementation • Public acceptance • Customer impact (e.g., bill impact and mandatory water restrictions) • Other criteria, as directed by City These evaluation criteria are assumed to be consolidated into up to 8 categories for the DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 17 of 24 evaluation. The supply options screening criteria used will consist of a subset of the portfolio evaluation criteria. The evaluation criteria metrics will be qualitative, with the exception of criteria such as cost. Project benefits will not be monetized but will be evaluated qualitatively or using other quantitative comparison methods. Task 5.0 Develop and Evaluate Future Water Supply and Conservation Portfolio Alternatives CONSULTANT will develop basic water supply and conservation descriptions for all supply options to inform the screening process, including planning level cost estimates. New planning level cost estimates will be prepared for up to seven (7) water supply and/or water conservation options. It is assumed that the remaining planning level cost estimates of the remaining options can be prepared using existing documents with Engineering News-Record (ENR) index adjustments. CONSULTANT will develop up to seven (7) water supply/conservation option factsheets for up to seven (7) supply options that pass the screening process. These detailed factsheets will include location maps, flow schematics, detailed cost estimates, potential project partners, benefits, implementation challenges, timeline and other information required for the portfolio evaluation). As the CONSULTANT develops and evaluates future water supply and conservation portfolio alternatives as described in the first two paragraphs of Task 5.0, CONSULTANT will consider the following: • Additional demand-side management activities (up to two (2) types of additional demand-side management activities will be identified and described in the plan) o Including the impact of conservation on required drought cutbacks; o Examining Palo Alto’s rules and regulations regarding the ease of customer implementation of gray water • Up to 10 types of water supply options, including the new water supply enhancement options, but excluding the 2 water conservation options/Demand Management Measure activities listed above and CONSULTANT will consider, at a minimum, screening the following water supply resource options: o SFPUC water o Groundwater o Basement dewatering water o Valley Water treated water o Demand management programs (passive and active conservation) - baseline demand equal to most recent BAWSCA demand study projections based upon a Demand Side Management Least Cost Planning Decision Support System (DSS model) in combination with an Econometric Model. o Water reuse alternatives, potable and non-potable o Stormwater and rain capture and Green Stormwater Infrastructure o On site (customer) water capture and or reuse projects, gray and black o Storage (local or regional) o Transfers with other agencies o Desalination, distributed and centralized DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 18 of 24 o Atmospheric water generators o Other options as may be identified by the Consultant or City, • All possible options to enhance and preserve Palo Alto’s potable water supply, including but not limited to: o Examining alternatives for serving the needs of Foothills Nature Preserve, including irrigation and filling of Boronda Lake; o Examining alternatives for irrigating City parks and playing fields and other city facilities; o Evaluating locally-controlled water supply and demand management projects and identify potential collaboration and regional project opportunities with a particular focus on evaluating any relevant economies of scale from regional project opportunities, if appropriate; o Evaluating water supply portfolio options that go beyond SFPUC’s LOS of no more than 20% cutbacks during water supply shortage to provide a higher level of water service reliability, if possible. • The following unknowns o Bay Delta Plan or Voluntary Settlement Agreements o SFPUC LOS goal achievement and cost o Valley Water effluent transfer option exercised o Climate change impacts o Demand growth - range of demand projections equal to most recent DSS model output o Senate Bill 606 (Hertzberg) and Assembly Bill 1668 (Friedman) known as “Making Conservation a California Way of Life” legislation requires implementation of water conservation and drought planning by Palo Alto through guidelines and regulations under development o Direct potable reuse regulation timing o Renegotiation outcome of revised method of calculating Tier 2 Allocations • One Water is focused on long-term water supply reliability and not focused on short-term system resilience and emergencies. • One Water may make recommendations that feed into the development/ refinement of green building policies, requirements or mandates. However, One Water is not focused on development of city policies regarding expanded green building requirements. Task 5.1 Develop a Methodology and an Excel-Based Model for Evaluating and Prioritizing Portfolio Alternatives • CONSULTANT will develop an Excel-based model for evaluating and prioritizing the Portfolio Alternatives developed in Task 5.0 using the criteria developed in Task 4. The model will allow portfolio analysis of various supply options for a specified planning year demand condition under DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 19 of 24 average and dry year conditions. CONSULTANT will produce a portfolio analysis that develops, evaluates and prioritizes up to four (4) portfolios, including a “Do Nothing” benchmark alternative. CONSULTANT will compare the portfolios based on the planning horizon only. However, CONSULTANT will also conduct interim planning year model runs to phase projects for the recommended portfolio. The model methodology may include decision analysis or some other means of identifying expected outcomes and funding likelihood for various scenarios. Specifically, CONSULTANT will prepare and utilize Criterion DecisionPlus to conduct a sensitivity analysis of the criteria used in the supply portfolio evaluation. • CONSULTANT will adjust any numbers (especially costs) from documents in Task 2 or other sources as needed. Task 5.2 Optional Task Upon Request by City, Funding Identification & Assistance • Upon request by City, CONSULTANT will research and identify possible funding sources for the top priority projects identified under this scope of work. Task 6.0 Final Deliverables to the City • CONSULTANT will produce a standalone electronic report that can be used as an adaptable water supply plan for implementing a One Water portfolio for the planning horizon from calendar years 2023 through 2043. Each water supply and conservation portfolio alternative should contain planning level life-cycle cost estimates to guide City investments, and priorities into the future as changes occur. • CONSULTANT will prepare a detailed outline of the One Water Plan. • CONSULTANT will produce an Excel-based tool described in Task 5.1. • CONSULTANT will produce any and all other materials created such as workpapers, GIS layers, to produce the standalone electronic report and Excel-based tool described in Task 5.1. DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 20 of 24 EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of months specified below. The time to complete each milestone may be increased 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 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY. Milestones Completion Number of Months from NTP or written authorization to proceed for optional tasks; approximate hours, if applicable 1. Task 1.0 12 months (Project Coordination & Administration) 2. Task 1.2 12 months (Stakeholder Input) 3. Optional Task 1.3 6 months from written authorization to proceed from (Stakeholder Input) the City or a mutually agreed-upon completion date 4. Optional Task 1.4 6 months from written authorization to proceed from (Palo Alto Process Support) the City or a mutually agreed-upon completion date 5. Task 2.0 12 months (Familiarize with Existing Components & Identify Gaps) 6. Optional Task 3.0 6 months from written authorization to proceed from (Analysis and Info. On Missing Resources) the City or a mutually agreed-upon completion date; up to approximately 140 hours. 7. Task 4.0 12 months (Develop Evaluation Criteria) 8. Task 5.0 12 months (Develop and Evaluate Portfolio Alternatives) 9. Task 5.1 12 months; for budgeting purposes, the development of (Develop Methodology and Excel-Based Model) the Excel-based model is limited to approximately eighty (80) hours 10. Optional Task 5.2 6 months from written authorization to proceed from (Funding Identification) the City or a mutually agreed-upon completion date; for budgeting purposes the funding identification work is limited to approximately sixteen (16) hours 11. Task 6.0 12 months (Final Deliverables to the City, except Detailed Outline) 12. Task 6.0 (Detailed Outline of the One Water Plan) Within 1 month after the project kickoff meeting DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 21 of 24 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services, additional services, and reimbursable expenses shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services and Additional Services, including reimbursable expenses, within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay Area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup documentation and information. Any expense anticipated to be more than $100.00 shall be approved in advance by the CITY’s project manager. DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 22 of 24 EXHIBIT C-1 SCHEDULE OF RATES Hourly Rate Schedule The hourly rates set forth below are applicable to calendar year 2022. In subsequent years, rates shall be adjusted by a percentage equal to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco-Oakland-Hayward area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable calendar year, which shall be compared with the CPI published most immediately preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONSULTANT’s compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding term, and in no event shall CPI rate adjustments cause the contract price to exceed the amount described in Section 4, "Not to Exceed Compensation". PALO ALTO ONE WATER PLAN (2022 Rate Schedule) Engineers/Scientists Hourly Rate Assistant Professional $185.00 Professional 200.00 Project Professional 225.00 Lead Project Professional 275.00 Senior Professional 300.00 Technicians Technicians 150.00 Senior Technicians 225.00 Support Staff Document Processing / Clerical 135.00 Other Direct Expenses Subconsultant cost + 10% Expert Witness Rate x 2.0 Other Direct Cost, Travel and Subsistence, and Mileage is included in the hourly rate schedule. This fee schedule is subject to annual revisions due to labor adjustments as described above. DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 23 of 24 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS 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 AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $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 PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Professional Services Rev. Dec.15, 2020 Page 24 of 24 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS 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 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: 9D1B4341-C2DC-4E66-9E49-411F722C506B Certificate Of Completion Envelope Id: 9D1B4341C2DC4E669E49411F722C506B Status: Completed Subject: Please DocuSign: C23183089 Clean One Water contract final.pdf Source Envelope: Document Pages: 24 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Annmarie Romero AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 annmarie.romero@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 6/1/2022 12:17:55 PM Holder: Annmarie Romero annmarie.romero@cityofpaloalto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Inge Wiersema iwiersema@carollo.com Vice President Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Signed by link sent to iwiersema@carollo.com Using IP Address: 66.214.47.98 Sent: 6/1/2022 12:21:39 PM Viewed: 6/1/2022 12:33:40 PM Signed: 6/1/2022 12:33:57 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Anne E Prudhel aprudhel@carollo.com Vice President Carollo Engineers, Inc. Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Signed by link sent to aprudhel@carollo.com Using IP Address: 4.15.122.74 Sent: 6/1/2022 12:33:58 PM Viewed: 6/1/2022 2:46:57 PM Signed: 6/1/2022 2:48:00 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Tabatha Boatwright Tabatha.Boatwright@CityofPaloAlto.org Utilities Administrative Assistant City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/1/2022 2:48:01 PM Viewed: 6/1/2022 3:02:10 PM Carbon Copy Events Status Timestamp Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/1/2022 12:21:39 PM Certified Delivered Security Checked 6/1/2022 2:46:57 PM Signing Complete Security Checked 6/1/2022 2:48:00 PM Completed Security Checked 6/1/2022 2:48:01 PM Payment Events Status Timestamps Attachment B One Water Plan Considerations: Existing Plans, External Factors, and the Effluent Transfer Agreement This attachment provides additional background on completed plans and plans in progress that the One Water Plan will utilize and build on. Additionally, it provides additional information about uncertainties and external factors that will impact existing and potential water supply options including regulatory changes, climate change and the Agreement Between and Among Palo Alto, Mountain View, and the Santa Clara Valley Water District to Advance Resilient Water Reuse Programs in Santa Clara County (Effluent Transfer Agreement). Northwest County Recycled Water Strategic Plan The City Council accepted the Northwest County Recycled Water Strategic Plan in 2020 (Council Report #10913). The Northwest County Recycled Water Strategic Plan represents a collaboration between the City of Palo Alto and Valley Water that presents the feasibility of various potable and non-potable opportunities to reuse water from the RWQCP within the plant’s service territory (Palo Alto, Mountain View, Los Altos, Los Altos Hills, Stanford University and East Palo Alto Sanitary District). The report summarizes and ranks water reuse alternatives based on cost and non-cost criteria; it does not recommend specific projects. The study also includes a robust evaluation of the groundwater aquifer in Northwest Santa Clara County. The Northwest County Recycled Water Strategic Plan evaluated a potential expansion of the recycled water pipeline for non-potable reuse called “Phase 3 Pipeline.” Phase 3 would expand the recycled water system to South Palo Alto to serve landscape irrigation demands and potential dual-plumbed systems mainly within the Stanford Research Park area. An EIR, business plan and preliminary design report for this pipeline are also complete for the Phase 3 Pipeline. For more information, see the City's website on Palo Alto’s Recycled Water Pipeline & Strategic Plan. The Northwest County Recycled Water Strategic Plan also examined a variety of indirect and direct potable reuse options, and the same work effort developed three technical memorandums examining other possible water sources including: 1. The possible use of groundwater from temporary dewatering systems for irrigation. 2. The possible use of groundwater to irrigate city parks. 3. Increasing flow to RWQCP by redirecting existing permanent dewatering systems at Oregon Expressway and City Hall to increase flows at the RWQCP for a future potable reuse project. More information about these technical memorandums and findings are also available on the City's website. Green Stormwater Infrastructure Plan In a natural environment, rain is absorbed and filtered by plants and soils. But in densely populated urban areas like Palo Alto, impervious surfaces (that make up our buildings, streets, and parking lots) disrupt this natural water cycle. Stormwater collects pollutants when it washes Attachment B over impervious surfaces, which then flows into our local creeks and the San Francisco Bay, causing negative impacts on water quality and wildlife. This stormwater may also cause flooding and erosion, harming properties and wildlife habitat. By using vegetation, soils, and natural processes, GSI may be built into our urban environment to collect, slow, and clean stormwater runoff. The purpose of the GSI Plan is to describe how the City will gradually integrate GSI features into its urban landscape and stormwater conveyance systems over several decades. While the primary purpose for GSI is pollution control, GSI also represent a water supply option. The One Water Plan will consider this possibility. Water Supply Reliability and Climate Change Since the City relies on the SFPUC’s RWS for its potable water supplies, the City’s current water supply reliability mirrors that of the RWS. Palo Alto needs to carefully consider the vulnerabilities and resilience of the Regional Water System in its own water supply planning efforts. The One Water Plan will consider uncertainties, such as the outcome of the Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta Estuary (Bay Delta Plan Amendment or Bay Delta Plan). SFPUC’s 2020 UWMP projects that if the Bay Delta Plan is not implemented, SFPUC has sufficient supplies to meet projected demands. However, if the Bay Delta Plan is implemented, this would result in system-wide shortages of up to 54% for Wholesale Customers (the 26 agencies, including Palo Alto, that purchase water from the SFPUC) during multiple years of drought by 2045. Alternative water supply projects undertaken by the SFPUC to close this gap may take many years to implement and may be costly. In 2020, the SFPUC began implementation of an Alternative Water Supply Planning Program to acquire additional water supplies and explore other projects that would increase overall water supply resilience. SFPUC has budgeted $264 million over the next 10 years to fund water supply projects. One Water Planning will also consider the effects of climate change. The SFPUC partnered with the Water Research Foundation to complete the “Long Term Vulnerability Assessment and Adaptation Plan for the SFPUC Water Enterprise – Phase I” in December 2021. The findings and tools developed as part of this assessment will be used by the SFPUC to inform water supply reliability projections over the 50-year time horizon. Palo Alto’s One Water Plan will use the latest information from this assessment to help frame the issue of climate change impacts on the water supplies delivered via the RWS. Effluent Transfer Agreement In 2019, Council approved an Effluent Transfer Agreement with Valley Water and the City of Mountain View (Council Report #10627). The 76-year agreement enables an effluent transfer from the RWQCP to Valley Water to be reused in Santa Clara County, likely south of Mountain View. Under the agreement, Valley Water has approximately 20 years to start using the effluent. The agreement also provides funding from Valley Water for a salt removal facility in Palo Alto to Attachment B improve the quality of recycled water used in Palo Alto and the City of Mountain View and an at- cost water supply option for Palo Alto. Palo Alto hired Black & Veatch to design the local salt removal facility.1 The cost estimate for the 30% design increased significantly compared with a 2017 cost estimate. Staff will return to Council to discuss next steps and potential options before proceeding. 1 In March 2021, Council approved this project’s design services contract with Black & Veatch (Council Report #11782).