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Home My WebLink AboutStaff Report 2303-11931 9 3 5 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: June 12, 2023 Report #: 2303-1193 TITLE Authorize Amendment No. 2 to Contract No. C20175537 with Kennedy Jenks Consultants, Inc. to extend the term of the contract for the Primary Outfall Line Project (WQ-19002) through December 31, 2027 RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute Amendment No. 2 to Contract No. C20175537 with Kennedy Jenks Consultants (Kennedy Jenks) (Attachment A) to extend the term of the contract for the Primary Outfall Line (Outfall) Project (WQ-19000) four years through December 31, 2027. BACKGROUND The Regional Water Quality Control Plant (RWQCP) discharges treated effluent to the San Francisco Bay through a 54-inch diameter outfall line installed in 1964 that passes beneath the Palo Alto Airport. The RWQCP’s Long Range Facilities Plan accepted by Council in July 20121 identified the need for a capital project to replace and rehabilitate the outfall pipeline due to insufficient capacity in the existing outfall line. On October 16, 2016, after completion of a request for proposals process, Council approved a professional services contract2 for design services with Kennedy Jenks Consultants for the RWQCP Primary Outfall Line Project (WQ- 19000). On December 14, 2022, the contract was amended (Amendment No. 1) to extend the contract duration six months through June 30, 2023, with no cost impact. 1 City Council, July, 2 2012; Agenda Item #7; SR# 2914, https://www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2012/id-2914.pdf 2 City Council, October,16,2016; Agenda Item #4; SR#7245, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2016/101716-7245-design-services-for-wqcp-primary-outfall-line-design.pdf Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 1 Packet Pg. 139 of 461 1 9 3 5 ANALYSIS A number of issues related to approvals from regulatory bodies (e.g., State Lands Commission and the Federal Aviation Administration) require significant redesign work for the outfall project, and therefore staff recommends extending the term of the professional services contract with Kennedy Jenks. The contract with Kennedy Jenks is expiring June 30, 2023 and requires amendment for a new contract expiration date. A further amendment increasing the not-to-exceed value of the contract will also be required when the precise project timeline and scope of new services are determined. The not-to-exceed value of the design contract is $279,660, of which $193,603 has been spent to date. Kennedy Jenks completed design on the outfall pipeline in September 2020. All permits were obtained, except from the Federal Aviation Administration (FAA). In parallel with the Outfall Pipeline project design, Public Works Department staff had been working with regional and federal agencies on a new elevated flood protection levee, protecting low-lying areas including the airport and the RWQCP. Reconciliation of these issues requires redesign of the outfall. In addition, some project permit applications need to be re-filed. Council approval of the Kennedy Jenks contract term extension will support the redesign and re-permitting efforts for a safer, deeper pipe. Design and re-permitting are anticipated to take an estimated two years, followed by construction. Construction of the Outfall project is estimated to be completed by December 31, 2027, with engineering services during construction scheduled to be completed by the same date. FISCAL/RESOURCE IMPACT While there is no fiscal impact associated with the contract amendment, redesign of the outfall pipeline to be deeper is expected to increase construction cost. Staff cannot provide a precise estimate of ultimate project construction cost at this time, but for context, the pipeline construction cost estimate from the initial design work was approximately $11 million. The design and construction of the project are included in the Wastewater Treatment Enterprise Fund, Capital Improvement Program using Outfall Design (WQ-19002) and Outfall Pipeline Construction (WQ-19000), respectively. The project costs are shared among the City’s partner agencies, with Palo Alto’s share being 38.16%. STAKEHOLDER ENGAGEMENT This project is part of the Plant’s major capital improvement program funded by Palo Alto and its five additional partner agencies. The five partner agencies are regularly updated about both the need for and the progress on wastewater treatment capital work. Updates are provided each year at an annual meeting and at other periodic meetings established to inform partner agency Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 2 Packet Pg. 140 of 461 1 9 3 5 staff about the major capital improvement program. With respect to Palo Alto itself, the open meetings on the budget process serve as the main vehicle for engaging the community on both new projects such as this and associated rate impacts. ENVIRONMENTAL REVIEW Because the new outfall alignment will be constructed near the sensitive Baylands environmental habitat, environmental review under CEQA was completed through preparation of an Initial Study/Mitigated Negative Declaration. This project was evaluated in the Outfall Project Mitigated Negative Declaration adopted by Council on May 21, 20183. Although the pipeline alignment will not change with this re-design, the pipe profile will be deepened. As a result of the deeper profile, a CEQA amendment may be required as part of the re-permitting effort for the project. ATTACHMENTS Attachment A: C20175537 Kennedy Jenks Contract Amendment No. 2 APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 3 City Council, May 21, 2018; Agenda Item #4; SR# 9096, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2018/id-9096-council-approval-of-an-mnd-and-design-of-rwqcp-new-outfall-line.pdf Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 3 Packet Pg. 141 of 461 Vers.: Aug. 5, 2019 Page 1 of 4 AMENDMENT NO. 2 TO CONTRACT NO. C20175537 BETWEEN THE CITY OF PALO ALTO AND KENNEDY/JENKS CONSULTANTS, INC. This Amendment No. 2 (this “Amendment”) to Contract No. C20175537 (the “Contract” as defined below) is entered into as of June 12, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and KENNEDY/JENKS CONSULTANTS, INC., a California corporation, located at 1500 NE Irving Street, Suite 200, Portland, OR 97232 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of providing engineering design and support services for a new outfall pipeline at the Regional Water Quality Control Plant (RWQCP), as detailed therein. B. The Parties entered into Amendment No. 1 to extend the contract term by six (6) months through June 30, 2023, at no additional cost to the City, as detailed therein. C. The Parties now wish to amend the Contract in order to extend the contract term by fifty-five (55) months through December 31, 2027, at no additional cost to the City, as detailed herein. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C20175537 between CONSULTANT and CITY, dated August 12, 2019, as amended by: Amendment No. 1, dated December 14, 2022 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through the earlier of December 31, 2027, or completion of the services in accordance with the Schedule of Performance attached at Exhibit “B” unless terminated earlier pursuant to Section 19 of this Agreement.” DocuSign Envelope ID: 196CE771-E0D9-4AE5-9657-EBD606D28C35 Item 5 Attachment A - C20175537 Kennedy Jenks Contract Amendment No. 2 Item 5: Staff Report Pg. 4 Packet Pg. 142 of 461 Vers.: Aug. 5, 2019 Page 2 of 4 SECTION 3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2”, AMENDED, REPLACES PREVIOUS. SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: 196CE771-E0D9-4AE5-9657-EBD606D28C35 Item 5 Attachment A - C20175537 Kennedy Jenks Contract Amendment No. 2 Item 5: Staff Report Pg. 5 Packet Pg. 143 of 461 Vers.: Aug. 5, 2019 Page 3 of 4 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO ______________________________ City Manager APPROVED AS TO FORM: ______________________________ City Attorney or Designee KENNEDY/JENKS CONSULTANTS, INC. Officer 1 By:___________________________ Name:________________________ Title:_________________________ Officer 2 By:___________________________ Name:________________________ Title:__________________________ Attachments: Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2” (AMENDED, REPLACES PREVIOUS) DocuSign Envelope ID: 196CE771-E0D9-4AE5-9657-EBD606D28C35 Mark Minkowski, Vice President Vice President Vice President Patrick Huston, Assistant Secretary Item 5 Attachment A - C20175537 Kennedy Jenks Contract Amendment No. 2 Item 5: Staff Report Pg. 6 Packet Pg. 144 of 461 Vers.: Aug. 5, 2019 Page 4 of 4 EXHIBIT “B” SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete each milestone within the number of weeks 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). Milestones Completion No. of Weeks from NTP (NTP issued on August 21, 2019) 1. Design Re-Kickoff Meeting 02 2. Submit 100% Design (Bid Documents) 10 3. Services During Bidding 290 4. Services During Construction 436 DocuSign Envelope ID: 196CE771-E0D9-4AE5-9657-EBD606D28C35 Item 5 Attachment A - C20175537 Kennedy Jenks Contract Amendment No. 2 Item 5: Staff Report Pg. 7 Packet Pg. 145 of 461 Certificate Of Completion Envelope Id: 196CE771E0D94AE59657EBD606D28C35 Status: Completed Subject: Complete with DocuSign: C20175537 Kennedy Jenks-Amendment #2 (REV3) Source Envelope: Document Pages: 4 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 O'Brien, Nanette AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Nanette.OBrien@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 5/30/2023 12:44:19 PM Holder: O'Brien, Nanette Nanette.OBrien@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 Mark Minkowski, Vice President markminkowski@kennedyjenks.com Vice President Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 50.226.164.82 Sent: 5/30/2023 12:45:37 PM Viewed: 5/30/2023 1:28:24 PM Signed: 5/30/2023 1:28:45 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Patrick Huston, Assistant Secretary patrickhuston@kennedyjenks.com Vice President Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 72.111.117.192 Sent: 5/30/2023 1:28:47 PM Viewed: 5/30/2023 4:37:15 PM Signed: 5/30/2023 4:37:34 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 Tom Kapushinski Tom.Kapushinski@CityofPaloAlto.org Project Engineer City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 5/30/2023 4:37:35 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Item 5 Attachment A - C20175537 Kennedy Jenks Contract Amendment No. 2 Item 5: Staff Report Pg. 8 Packet Pg. 146 of 461 Carbon Copy Events Status Timestamp James Allen james.allen@cityofpaloalto.org Manager Water Quality Control Plant City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 5/30/2023 4:37:36 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Karin North karin.north@cityofpaloalto.org Manager Watershed Protection City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 5/30/2023 4:37:37 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Xiangquan Li XiangquanLi@kennedyjenks.com Security Level: Email, Account Authentication (None) Sent: 5/30/2023 4:37:38 PM 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 5/30/2023 12:45:37 PM Certified Delivered Security Checked 5/30/2023 4:37:15 PM Signing Complete Security Checked 5/30/2023 4:37:34 PM Completed Security Checked 5/30/2023 4:37:38 PM Payment Events Status Timestamps Item 5 Attachment A - C20175537 Kennedy Jenks Contract Amendment No. 2 Item 5: Staff Report Pg. 9 Packet Pg. 147 of 461