HomeMy WebLinkAboutStaff Report 2302-102612.Approval of a Funding Agreement with the Santa Clara Valley Water District for
Reimbursement Costs Incurred in Support of the Purified Water Project, and a Budget
Amendment in the Wastewater Treatment Fund Advanced Water Purification Facility
capital project (WQ-19003)
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: April 10, 2023
Report #:2302-1026
TITLE
Approval of a Funding Agreement with the Santa Clara Valley Water District for Reimbursement
Costs Incurred in Support of the Purified Water Project, and a Budget Amendment in the
Wastewater Treatment Fund Advanced Water Purification Facility capital project (WQ-19003)
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager or their designee to execute an agreement
between the Santa Clara Valley Water District and the City for reimbursement of City
costs incurred in support of Valley Water’s Purified Water Project; and
2. Amend the Fiscal Year 2023 Budget Appropriation for the Wastewater Treatment Fund
by (requires a 2/3 vote):
a. Increasing the revenue estimate from other agencies by $500,000 in the
Advanced Water Purification Facility capital project (WQ-19003); and
b. Increasing the ending fund balance by $500,000.
EXECUTIVE SUMMARY
The Regional Water Quality Control Plant (RWQCP) treats wastewater from the City of Palo Alto
(Palo Alto), City of Mountain View (Mountain View), City of Los Altos, East Palo Alto Sanitary
District, Stanford University and Los Altos Hills. A small fraction of the effluent from the RWQCP
is further treated and then used for irrigation and toilet flushing.
In November 2019, Council approved the Agreement between the City of Palo Alto, City of
Mountain View and Santa Clara Valley Water District to Advance Resilient Water Reuse
Programs in Santa Clara County1 (Partnership Agreement). The Partnership Agreement includes
an option for the Santa Clara Valley Water District (Valley Water) to receive approximately half
1 City Council, November 18,2019; Agenda Item #17; SR #10627,
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2019/id-10627-mini-packet-11182019.pdf?t=60382.02
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of the treated wastewater produced by the RWQCP for use in the county south of Mountain
View.
BACKGROUND
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S/CAP Goals and Key Actions2. The S/CAP Goals and Key Actions include a goal to "Develop a
water supply portfolio which is resilient to droughts, changes in climate, and water demand and
regulations, that supports our urban canopy" and a key action to "Develop and implement
projects that result from a "One Water" Portfolio for Palo Alto, including but not limited to:
stormwater, recycled water, on-site reuse, conservation, groundwater.” The partnership with
Valley Water supports this objective by providing $16 million of funding towards Palo Alto’s
Local Salt Removal Facility. Additionally, the Council’s 2023 Objective of “Climate Change and
the Natural Environment” includes a Priority Objective to “Approve agreements with Valley
Water for the purified water facility at LATP Area B”.
Valley Water requires support services from various City departments, including Public Works –
Environmental Services Division, Engineering, Real Estate, Utilities, and City Attorney to
accomplish the various tasks in support of the Purified Water Project. Palo Alto staff currently
assist Valley Water with this effort and will continue to do so to ensure successful
implementation of the Purified Water Project. Assistance will include developing needed
agreements, such as a ground lease for the former LATP site; resolving technical and
operational issues such as tie-ins at the RWQCP for source water, pump station location,
pipeline alignments, and power; and resolving legal issues, including regulatory permitting
requirements. The foregoing will require the dedication of considerable amount of time from
Palo Alto staff and consultants.
ANALYSIS
Valley Water and the City must resolve several key issues before a Purified Water Project can
be constructed in Palo Alto, including but not limited to:
·A facilities and land lease on former Los Altos Treatment Plant (LATP) lands.
·Identification of diversion point of source water (tertiary-treated wastewater) to be
conveyed to the new Purified Water Project facility.
·Siting of pump stations, pipeline, and appurtenances on RWQCP property.
·Siting of pipeline for source water and RO concentrate within the City’s jurisdiction.
·Identification of return point of RO Concentrate to the RWQCP.
·Management and disposal of reverse osmosis (RO) concentrate including an Operations
and Maintenance agreement and an RO concentrate agreement.
·Other requisite legal agreements (i.e., power, signage) associated with purified water
production on City-owned land.
·Potential connection of the Local Salt Removal Facility with the Project. CEQA
documentation preparation and review
2 City Council, September 27, 2022; Agenda Item #10; SR#14606
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81997
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·Parameters and expectations for communications and responsiveness of P3 entity to
City and the public during construction and ongoing operations.
The attached Funding Agreement (Attachment A) will enable Valley Water to provide
reimbursement for City of Palo Alto’s staff and consultant time on the Purified Water Project
for:
1) Meeting Attendance
2) Regulatory Coordination and Resolution of RO Concentrate Management and Disposal
3) Land Lease to Site Purification Facilities
4) Development of Agreements: O&M, lease, and RO Concentrate disposal
5) Technical Support and Coordination
The term of the Funding Agreement commences on its Effective Date and expires two years
after the Effective Date. The term of the Funding Agreement will be automatically extended for
additional annual periods up to four additional years unless Palo Alto or Valley Water provide a
notice of termination.
As part of the development of this Funding Agreement, Palo Alto staff identified a list of
expected positions and hourly rates (mainly from Public Works Department and Utilities) that
will support the Purified Water Project. The hourly rates were calculated using the maximum
hourly rate per the current Salary Schedule and a percentage for benefits based on the labor
group. These rates will be updated as new Salary Schedules are adopted by City Council.
In addition to City staff, Palo Alto requires consultant services to support specific technical
issues related to the Purified Water Project. In December 2022, Council approved a Professional
Services Contract3 with Woodard & Curran which includes a task to assist with the coordination
of technical issues related to the Purified Water Project. Woodard & Curran services covered
under this Contract related to the Purified Water Project, will be also reimbursed by Valley
Water.
City staff anticipates returning to Council for approvals and status updates on the project
deliverables and milestones listed above in due course.
Separately, Valley Water will submit a planning application with the City’s Planning and
Development Services Department for any land use approvals, planning entitlements, site and
design reviews and other environmental review under the California Environmental Quality
Act/National Environmental Policy Act. City’s staff time related to these items work is not
3,4 City Council, December 19, 2022; Agenda Item #15, SR#14685
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82021
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covered by this Funding Agreement. Valley Water has set up a deposit account with the
Planning and Development Services Department.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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AGREEMENT BY AND BETWEEN THE
SANTA CLARA VALLEY WATER DISTRICT AND
THE CITY OF PALO ALTO RELATING TO VALLEY WATER’S PAYMENT FOR CITY’S
SUPPORT SERVICES TO VALLEY WATER’S PURIFIED WATER PROJECT
This Master Agreement (Agreement) is made and entered this ____ day of ___________ 2023
(Effective Date), by and between the City of Palo Alto (City or Palo Alto), a California municipal
corporation, and the Santa Clara Valley Water District (Valley Water), an independent special
district of the State of California. The City and Valley Water may be referred to individually as a
Party, or collectively as Parties, to this Agreement.
RECITALS
A. The City is the owner and operator for the Palo Alto Regional Water Quality
Control Plant (RWQCP), which treats wastewater for the communities of Los Altos, Los Altos
Hills, Mountain View, Palo Alto, Stanford University, and the East Palo Alto Sanitary District.
B. In August 2017, Valley Water and Palo Alto executed a Memorandum of
Understanding for the purpose of developing plans and studies to expand the production and use
of recycled and purified water within the County.
C. In December 2019, Valley Water, Palo Alto, and the City of Mountain View
executed a Partnership Agreement to Advance Resilient Water Reuse Programs in Santa
Clara County to achieve the most cost effective, environmentally beneficial utilization of
treated wastewater in the County.
D. Valley Water desires to develop a process and facilities to purify treated
wastewater for potable reuse, including (1) using purified water to replenish groundwater basins,
an outcome commonly referred to as Indirect Potable Reuse, and/or (2) delivering the purified
water with additional treatment directly to Valley Water's raw water or treated water sources and
subsequent delivery to potable water consumers, an outcome commonly referred to as Direct
Potable Reuse.
E. In September 2020, Valley Water’s Board of Directors (Board) approved a design-
build-finance-operate-maintain procurement process under a public/private partnership to expand
potable water reuse and delivery to the Los Gatos Recharge System (Purified Water Project).
F. The Parties desire to cooperate with one another to construct the Purified Water
Project, including pipelines, pump station, and related appurtenances, on City-owned property,
using treated effluent from the Palo Alto RWQCP as source water for the advanced water
purification facilities and the Palo Alto RWQCP outfall to discharge the reverse osmosis
concentrate produced by the purification process
G. Valley Water requires support services from various City departments, including
Public Works – Environmental Services Division, Engineering, Real Estate, Utilities, and City
Attorney to accomplish the various tasks in support of the Purified Water Project.
Now, therefore, in consideration of the mutual promises set forth below, the Parties agree
as follows:
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AGREEMENT
1. Purpose
The purpose of this Agreement is to establish the basis and procedure for reimbursement
by Valley Water for the costs and expenses incurred by City in the performance of
support services in connection with the Purified Water Project, including services
performed during the period from July 1, 2022 through the effective date of this
Agreement.
2. Scope of Agreement
A. The Parties have agreed that the City will provide support services generally
described in Scope of Services, attached hereto as Exhibit A and incorporated
into the Agreement by this reference (Scope of Services); the Parties furthermore
agree that City shall provide such services to the extent necessary in its
professional judgment and discretion to complete the tasks described in the
Scope of Services, and to satisfy any regulatory, technical or similarly applicable
requirements.
B. This Agreement does not apply to services performed by the City’s Planning and
Development Services Department for any land use approvals or entitlements
required by the City of Palo Alto and environmental review under the California
Environmental Quality Act/National Environmental Policy Act.
C. Nothing in this Agreement commits either Party to the implementation of any
project, including without limitation, the City's provision of land or permission to
discharge into the RWQCP outfall.
D. Nothing in this Agreement modifies the terms of any existing Agreement between
the City and Valley Water.
3. Agreement Term; Termination
A. Term. The term of this Agreement commences on its Effective Date and expires
two years after the Effective Date. The term of this Agreement shall be
automatically extended for an additional period of one (1) year, not to exceed four
(4) additional years, unless either party provides written notice of termination at
least 30 days prior to the immediately preceding one-year renewal period.
B. Termination. Any Party may terminate this Agreement by providing thirty (30)
days written notice to the other Party. The City shall send Valley Water a final
invoice within sixty (60) days of the effective date of termination of this
Agreement.
4. Reimbursement
A. Services Performed by City Prior to Effective Date of this Agreement. Within thirty
(30) days of the effective date of this Agreement, Valley Water agrees to reimburse
City for services performed in connection with the Purified Water Project for the
period from July 1, 2022 through January 31, 2023, as detailed in Exhibit D.
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B. Services Performed by City After January 31, 2023. The City shall provide Valley
Water with an initial written invoice for work performed from February 1, 2023
through March 31, 2023. Thereafter, commencing on or around July 1, 2023, the
City, on a quarterly basis, shall provide Valley Water a written invoice for the work
performed during the immediately previous three months. The invoice shall set
forth the relevant period, the number of hours worked and the applicable hourly
rates, a description of the reimbursable expenses incurred and the amount of
such expenses, and documents supporting the reimbursable expenses.
C. Within 45 days of receipt of an invoice, Valley Water shall remit payment to City,
subject to review and approval of Valley Water. Such approval shall not be
unreasonably withheld.
5. Responsibilities of the Parties
A. Valley Water agrees to:
1. Ensure sufficient staff resources and consultant services are devoted to
development and pursuit of the Scope of Services.
2. Provide all necessary studies, reports, plans, specifications, maps, and
other documents to City in a timely manner, and allow the City at least 2
weeks for detailed review and comments, unless mutually agreed
otherwise by the Parties.
3. Schedule meetings with 2 weeks advance notice and cognizant of City
availabilities unless mutually agreed to otherwise by the Parties.
4. In collaboration with the City, review and respond to subsequent requests
for additional information to complete the Scope of Services.
5. Work collaboratively with City staff and consultants retained by City to
ensure timely discussion and review of the Purified Water Project tasks.
B. City agrees to:
1. Ensure sufficient staff resources and consultant services are devoted to
City's responsibilities with respect to the Scope of Services, subject to the
appropriation of funds by City's Council.
2. Review and provide comments on the Scope of Services and any
amendments thereto within a timeframe mutually agreed to by the
Parties.
3. Work collaboratively with Valley Water and its consultant, contractors,
and agents (including the private entity) to ensure timely discussion and
review of Purified Water Project tasks associated with design and
construction.
4. Once per quarter, submit invoices documenting costs incurred by the
City and any consultants retained by City for review and approval by
Valley Water.
6. Records Retention and Audit
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A. The City agrees to make available for examination by Valley Water, subject to
limitations established by state law, its authorized agents, officers, or employees, any
and all ledgers, books of accounts, invoices, vouchers, cancelled checks, and other
records or documents evidencing or relating to the expenditures and disbursements
invoiced to Valley Water or amounts deducted from the Funding Account. City
shall also furnish to Valley Water, its authorized agents, officers or employees such
other evidence or information as Valley Water may request with regard to any
such expenditure or disbursement charged by City.
B. The City shall maintain full and adequate records to document the actual costs it
incurs which are subject to reimbursement of the City's costs pursuant to this
Agreement. City shall provide such assistance as may be reasonably requested in
the course of such inspection.
7. Notices
Any and all notices required to be given to a Party hereunder shall be deemed to have
been delivered upon deposit in the United States mail, postage prepaid, addressed to
either of the Parties at the following address or such other address, or via e-mail with a
written confirmation of receipt at the address(es) below, as is provided by either Party in
writing:
City:
City of Palo Alto
Public Works Department
Attention: Karin North, Assistant Director of Public Works
2501 Embarcadero Way
Palo Alto, CA 94303
Phone: (650) 329-2104
Email address: Karin.North@cityofpaloalto.org
Valley Water:
Santa Clara Valley Water District
Water Utility Enterprise
Attention: Kirsten Struve, Assistant Officer
5750 Almaden Expressway
San Jose, CA 95118
Phone: (408) 630-3138
Email address: kstruve@valleywater.org
8. Severability
If a court of competent jurisdiction holds any provision of this Agreement to be illegal,
unenforceable, or invalid in whole or in part for any reason, the validity and enforceability of the
remaining provisions, or portions of them, will not be affected, unless an essential purpose of
this Agreement would be defeated by the loss of the illegal, unenforceable, or invalid provision.
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9. Mutual Indemnification
In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be
imposed between the Parties pursuant to Government Code Section 895.6, the Parties agree that
all losses or liabilities incurred by a Party shall not be shared pro rata but, instead, Valley Water
and City agree that, pursuant to Government Code Section 895.4, each of the Parties hereto shall
fully indemnify and hold each of the other Party, including its officers, board members,
employees, and agents, harmless from any claim, expense or cost, damage or liability imposed
for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent
acts or omissions or willful misconduct of the indemnifying Party, its officers, employees, or
agents, under or in connection with or arising out of any work, authority, or jurisdiction delegated
to such Party under this Agreement. No Party, nor any officer, board member, or agent thereof
shall be responsible for any damage or liability occurring by reason of the negligent acts or
omissions or willful misconduct of the other Party hereto, its officers, board members, employees,
or agents, under or in connection with or arising out of any work authority or jurisdiction delegated
to such other Party under this Agreement.
10. Governing Law and Compliance with Laws
The Parties agree that California law governs this Agreement. In the performance of this
Agreement each Party will comply with all applicable laws, ordinances, codes and regulations of the
federal, state, and applicable local government.
11. Disputes
The Parties agree that they will work together in good faith to achieve the intent of this
Agreement. In the event that a dispute arises as to the proper interpretation of the respective
obligations and responsibilities of the Parties as described herein, or as to any other aspect of this
Agreement, Valley Water and the City agree that they each will assign the appropriate individuals
to meet and make good faith efforts to negotiate in order to arrive at a resolution of the dispute. If
any legal action or other proceeding is commenced to enforce or interpret any provision of, or
otherwise relating to, this Agreement, each Party shall bear the entirety of its owns costs and
expenses including but not limited to attorneys’ fees.
12. Venue
In the event that suit is brought by any Party to this Agreement, the Parties agree that
venue will be exclusively vested in the state courts of the County of Santa Clara, or if federal
jurisdiction is appropriate, exclusively in the United States District Court, Northern District of
California, San Jose, California.
13. Assignability
Parties will not assign this Agreement or any portion thereof to a third party without the
prior written consent of the other Party.
14. Ownership of Materials
All reports, documents, technical data, findings, or other materials (collectively, the Work
Product") developed by City as part of this Agreement shall be the property of the City. Valley
Water shall have right to the Work Product for Valley Water business, including, without limitation,
further development of its water supply infrastructure.
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This section shall not apply to any Work Product or documents or communications
covered by attorney-client privilege.
15. Entire Agreement
This Agreement constitutes the entire agreement between the City and Valley Water
with respect to the subject matter hereof and supersedes all prior offers and negotiations, oral
and written. This Agreement may not be amended or modified in any respect except by an
instrument in writing signed by authorized representatives of the Parties.
16. Counterparts and Electronic Signatures
This Agreement may be executed in any number of counterparts, each of which, when
executed and delivered, will be deemed to be an original, and all of which, taken together, will
be deemed to be one and the same instrument. Unless otherwise prohibited by law or policy
of a Party, the Parties agree that an electronic copy of a signed contract, or an electronically
signed contract, has the same force and legal effect as a contract executed with an original
ink signature. The term “electronic copy of a signed contract” refers to a writing as set forth in
Evidence Code Section 1550. The term “electronically signed contract” means a contract that
is executed by applying an electronic signature using technology approved by the City.
17. Nonwaiver
A Party's waiver of any term, condition, or covenant, or breach of any term, condition or
covenant will not be construed as a waiver of any other term, condition or covenant.
18. Third Parties
This Agreement is entered into only for the benefit of the Parties executing this
Agreement and not for the benefit of any other individual, entity, or person.
19. Debt Limitation
The City and Valley Water are both subject to laws or policies which limit their ability to
incur debt in future years. Nothing in this Agreement shall constitute an obligation of future
legislative bodies of the City or Valley Water to appropriate funds for purposes of this
Agreement.
20. No Partnership or Agency
Nothing in this Agreement is intended to constitute a partnership between the Parties, or
authorize either party to act as agent for the other, or authorize a party to act in the name or on
behalf of or otherwise to bind the other in any way.
21. Exhibits
The following listed Exhibits are incorporated herein by this reference as though set forth in
full:
Exhibit A - Scope of Services
Exhibit B - Schedule of Performance
Exhibit C – Compensation
Exhibit D – Initial Statement
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IN WITNESS WHEREOF, the City and Valley Water have executed this Agreement on the Effective Date
as defined in the introductory paragraph of this Agreement.
APPROVED AS TO FORM FOR CITY:
_______________________________
MOLLY STUMP
City Attorney
CITY OF PALO ALTO
By_______________________________
ED SHIKADA
City Manager
Date_____________________________
APPROVED AS TO FORM FOR
VALLEY WATER:
_______________________________
ANTHONY FULCHER
Sr. Assistant District Counsel
Date_____________________________
Date_____________________________
SANTA CLARA VALLEY WATER DISTRICT
By_______________________________
RICK L. CALLENDER, ESQ
Chief Executive Officer
Date_____________________________
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EXHIBIT A
SCOPE OF SERVICES
A. Background: The Purified Water Project
The Purified Water Project is part of Valley Water's strategy to respond to the multi-year
drought and is consistent with Board direction to expand the County's recycled water
supply. Valley Water’s 2040 Water Supply Master Plan (W SMP) recommends developing
at least 24,000 AFY of potable water reuse (above the current target of 33,000 AFY of non-
potable reuse). Valley Water has developed a Countywide Water Reuse Master Plan
(CoRe Plan) that has evaluated potable reuse expansion throughout Santa Clara County,
including identifying options for achieving the WSMP’s water reuse target.
In September 2020, the Board approved a Design-Build-Finance-Operate-Maintain
procurement process under a Public/Private Partnership (P3) to expand potable water
reuse and delivery to the Los Gatos Recharge System (Purified Water Project). The Board
directed Valley Water staff to launch a P3 procurement process once all necessary
elements for an advanced water purification project were secured. Valley Water will
implement the Board’s potable reuse directive through a North County production facility to
begin operation in 2028. The Purified Water Project will purify water for potable reuse to
supplement groundwater recharge from existing sources such as imported and local water
supplies. Implementation of the Purified Water Project will also mitigate the risk of land
subsidence, which could significantly impact the infrastructure and economy of Santa Clara
County.
Valley Water and the City must resolve several key issues before a Purified Water Project
can be constructed in Palo Alto, including but not limited to:
1. A facilities and land lease on former Los Altos Treatment Plant (LATP)
lands.
2. Identification of diversion point of source water (tertiary-treated wastewater).
3. Siting of pump stations, pipeline, and appurtenances on RWQCP property.
4. Management and disposal of reverse osmosis (RO) concentrate including
an Operations and Maintenance agreement and a RO concentrate
agreement.
5. CEQA document preparation and review.
6. Siting of pipeline for source water and RO concentrate within the City’s
jurisdiction.
7. Potential connection of the Local Salt Removal Facility with the Project.
8. Identification of return point of RO Concentrate to the RWQCP.
9. Other requisite legal agreements (i.e., power, signage) associated with
purified water production on City-owned land.
10. Parameters and expectations for communications and responsiveness of P3
entity to City and the public during construction and ongoing operations.
B. General Provisions
The Parties acknowledge the complexity of the project and the need for ongoing
coordination of efforts; the Parties further agree to work in good faith to resolve the issues
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enumerated above and complete the tasks described below.
Valley Water agrees to provide adequate funding to reimburse the City for approved costs
incurred in connection with the implementation of the project.
City agrees to use Valley Water funds only for direct project costs.
C. Description of Tasks
Task 1 - Attendance of Meetings
City will attend meetings with Valley Water, federal and state regulatory staff, and the
private entity to identify, discuss, and resolve issues, to establish priorities, and to review
progress. This includes development of a schedule for the execution of the needed
agreements for Valley Water’s planning purposes. These meetings will be used to further
refine the principal terms to be included in various agreements that will establish
commitments for the above-listed key issues and legal aspects of a water purification
facility.
Task 2 – Regulatory Coordination and Resolution of RO Concentrate Management
and Disposal
City, Valley Water, and applicable consultants will develop strategies for regulatory
compliance with pertinent regulatory agencies, including the Regional Water Quality
Control Board (RWQCB) on various permitting items including application of existing permit
conditions and agency issues regarding RO concentrate management, NPDES permitting,
and IPR facility permitting.
City’s work under this task may include, but is not limited to:
a) fulfillment of data requests and site access coordination,
b) review of studies prepared by Valley Water or its consultants pertaining to RO
concentrate management including, but not limited to, assessing the feasibility
of using the existing RWQCP outfall for RO concentrate discharge within the
constraints of continued compliance with the City’s National Pollutant Discharge
Elimination System (NPDES) limitations, and
c) participation in the evaluation and discussions of regulatory options for
addressing RO concentrate management.
This task may require City, at City’s sole discretion, to provide peer review, responding to
regulatory agencies, consultant support services, and attendance at meetings, as
appropriate, to discuss study outcomes.
Task 3 - Land Lease for Purification Facilities
City and Valley Water will develop an executable lease agreement option for buildable land
at the site of the former Los Altos Treatment Plant (LATP) to accommodate the Project and
associated facilities. The lease agreement will include an option for additional facilities for
educational outreach and training activities associated with purified water. In addition to
development of the lease, City work under this task may include, but is not limited to:
support and coordination regarding remediation of hazardous materials at the LATP site,
regulatory permitting support, coordination of site entry, permission to sample, and support
of materials registration.
Task 4 – Development of Agreements
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City will review legal memoranda developed by Valley Water and/or its consultants in
support of Project development and implementation. These activities will provide the legal
foundation for agreements supporting purified water facility construction and production,
including but not limited to the following:
1. A facilities and land lease on RWQCP or City lands,
2. Specifications for diversion point of source water (tertiary treated wastewater),
3. Management and disposal of reverse osmosis (RO) concentrate,
4. Return point to RWQCP for RO Concentrate; and
5. Revised legal agreements (i.e., O&M, power, signage) associated with purified
water production on City’s lands.
6. Development and review of the present Funding Agreement
7. Support related to Palo Alto City Council and Valley Water Board approval of
these Agreements
Task 5 – Technical Support and Coordination
City shall provide technical support and coordinate with Valley Water and the private entity
to support the Project development and implementation. City, with necessary consultant
services, will review engineering, environmental, regulatory, and technical memoranda and
reports developed by Valley Water and/or its consultants in support of P3 Purified Water
Project development. This task includes general project coordination during the design-
build and post-construction phases and work activities and coordination associated with but
not limited to:
1. Tie-in Connections at RWQCP for RO concentrate and tertiary effluent pipelines
2. Abandonment of existing monitoring well at the former LATP site
3. Former LATP site boundaries and survey
4. Project Homekey
5. RWQCP water quality sampling, as needed
6. Existing utility identification and connections
7. Current and historical water quality information
8. Effluent water samples for additional testing
9. As-Built drawings of the RWQCP, if available.
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EXHIBIT B
SCHEDULE OF PERFORMANCE
The Parties will mutually agree to the schedule to perform tasks under this Agreement. Parties
agree to perform tasks in a reasonable amount of time.
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EXHIBIT C
COMPENSATION
Not to Exceed Amount: $500,000. Valley Water funding for this Agreement will not exceed $500,000, unless
increased through a written amendment to this Agreement signed by both parties.
Hourly Rates: Valley Water will compensate City at the hourly rates in Exhibit C.1 of this
Agreement. Notwithstanding anything to the contrary, these hourly rates are valid at the time of
execution but may be subject to increase following each new fiscal year.
Reimbursable Expenses: Valley Water will reimburse for expenses subject to the following:
The following expenses are reimbursable to the extent City documents to Valley Water's
satisfaction that they were incurred in performing the work required by Exhibit A:
o the cost of City’s Consultant services supporting the Purified Water Program.
o the cost of mailing, shipping and/or delivery of documents or products to Valley Water.
o the cost of photographing, reproducing and/or copying.
o telephone and fax charges.
o the rental of any specialized equipment to the extent Valley Water has preapproved,
in writing, the cost of such rental.
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EXHIBIT C.1
SCHEDULE OF CHARGES
The following City staff positions are anticipated to be necessary to provide support
services under this Agreement. Additional or alternative positions may be necessary
throughout the Agreement. The rates will be subject to change based on City’s salary
schedules approved by City Council.
City Department Title Hourly Rate (Funding
Agreement)
Public Works Administrative Associate I $63
Public Works Administrative Associate II $68
Public Works Administrative Associate III $73
City Attorney Assistant City Attorney $192
Public Works Assistant Director Public Works $199
Utilities Assistant Director - UTL $210
Utilities Assistant Director (WGW) $215
Public Works Assistant Manager WQCP $165
Public Works Associate Engineer $108
Utilities Associate Resource Planner $105
City Attorney Deputy City Attorney $151
Public Works Director of Public Works $245
Public Works Engineer $122
Utilities Engineering Manager $188
Public Works Management Analyst $116
Public Works Manager Environmental Control $155
Administrative Services Manager Real Property $149
Public Works Manager WQCP $186
Utilities Principal Engineer $164
Public Works Project Engineer $131
Utilities Project Engineer $131
Public Works Project Manager $131
Public Works Sr. Engineer $178
Utilities Sr. Engineer $178
Administrative Services Sr. Management Analyst $135
Utilities Sr. Resource Planner $168
Utilities Supervising Project Engineer $147
Utilities Sr. Resource Planner $168
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EXHIBIT C.2
SCHEDULE OF CHARGES
The following consultant support positions are anticipated to be necessary to provide support
services under this Agreement and are subject to change per consultant agreements between the
City and Woodard & Curran.
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EXHIBIT D
INITIAL STATEMENT JULY 1, 2022
TO JANUARY 31, 2023
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MEMORANDUM
FROM: Karin North, Assistant Director of Public Works
Diego Martinez Garcia, Associate Engineer
TO: Kirsten Struve, Assistant Officer Water Supply Division
PROJECT: Regional Water Purification Facility
DATE: January 31, 2023
SUBJECT: Progress Report #1
The project report for this invoice is provided for the period July 1, 2022 through January 31,
2023.
ACTIVIES THIS PERIOD BY TASK
Task 1. Attendance of Meetings
City staff attended meetings with Valley Water related to the development of
Agreements, ROC Management, Regulatory Strategies, Tie-ins and special studies.
Task 2. Regulatory Coordination and Resolution of RO Concentrate Management and
Disposal
Review and editing Toxicity Pilot Study Plan and Effluent Hauling Memos
Coordination related to Toxicity Pilot Study
Preparation for meetings with Regional Board
Review and editing of technical memo’s: Reasonable Potential Analysis, Selenium
TMDL and Hydraulic Modeling
Task 3. Land Lease for Purification Facilities
No activities performed this period
Task 4. Development of Agreements
Development and review of the Funding Agreement
Development and review of reimbursement statements forms
Development of strategy to fund Planning Account and Public Works staff time
Onboard Consultant to support City on Agreement’s development and review
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Task 5. Technical Support and Coordination
Final effluent data request (5 years of minute flow data)
Recycled Water data request (5 years of hourly flow data)
Internal discussions about tie-in connections at the RWQCP
RWQCP effluent sampling coordination
Responded to RWQCP requests for information (as-builts, process information).
Initial support to setup a Planning Account
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City Support Services for the Period July 1, 2022 to January 31, 2023
Job Classification Employee Department Hours Total Cost
Assistant Director Public Works Karin North Public Works 33.50 $ 6,119.52
Senior Engineer Samantha Engelage Public Works 37.50 $ 5,907.69
Manager RWQCP James Allen Public Works 3.00 $ 500.40
Associate Engineer Diego Martinez Garcia Public Works 99.50 $ 10,779.53
Senior Engineer Tom Kapushinski Public Works 6.00 $ 945.23
Assistant Director Utilities Karla Dailey Utilities 0.00 $ -.--
Senior Resource Planner Lisa Bilir Utilities 0.00 $ -.--
Manager Real State Sunny Tong Administrative
Services
0.00 $ -.--
Assistant City Attorney Caio Arellano City Attorney 13.75 $ 2,569.10
GRAND TOTAL 193.25 $26,821.48
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