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HomeMy WebLinkAboutStaff Report 2402-2584CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, April 15, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     10.Approval of Contract Amendment Number 2 to Seven On-call Consulting Contracts to Increase in the Amount by $500,000 to a Total Not to Exceed to $3.5 Million and Extend Term by Three Months to Provide Expertise for Long Range Planning Projects, Application Processing, Environmental Review, and Other Planning Analysis in the Planning and Development Services Department. Consent Questions City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: April 15, 2024 Report #:2402-2584 TITLE Approval of Contract Amendment Number 2 to Seven On-call Consulting Contracts to Increase in the Amount by $500,000 to a Total Not to Exceed to $3.5 Million and Extend Term by Three Months to Provide Expertise for Long Range Planning Projects, Application Processing, Environmental Review, and Other Planning Analysis in the Planning and Development Services Department. RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute an amendment for the following seven contracts for long range planning, application processing, historic and environmental review services in an amount not to exceed $500,000 and to extend the contract term for three months. This amendment results in a revised total contract not-to-exceed amount of $3.5 million through September 30, 2024. a. Contract Amendment No. 2 C20178879 with Arnold Mammarella Architecture and Consulting (Attachment A); b. Contract Amendment No. 2 C20178878 with Metropolitan Planning Group (Attachment B); c. Contract Amendment No. 2 C20178882 with Placeworks, Inc. (Attachment C); d. Contract Amendment No. 2 C20178877A with Lexington Planning (Attachment D); e. Contract Amendment No. 2 C20178891 with Michael Baker International, Inc. (Attachment E); f. Contract Amendment No. 2 C20178881 with Page Southerland Page AE (Attachment F), and; g. Contract Amendment No. 2 C20178884 with Urban Planning Partners, Inc. (Attachment G) EXECUTIVE SUMMARY The subject action extends the contract authority and term; no additional budget is requested at this time as budget to support this work has already been included in the approved FY2024 Operating Budget. No work will be assigned to consultants under these contracts unless there is sufficient operating budget to cover the costs. The Planning and Development Services department relies on the use of on-call service providers for project specific expertise and application processing for development activity. Additional contract capacity is required at this time to provide continuity of services for work related the current planning application processing, the parklet prototype study, the retail study, and projects related to the Housing Element implementation across five of the seven providers: Arnold Mammarella, Architecture and Consulting; Metropolitan Planning Group; Lexington Planning; Michael Baker International, Inc.; and Urban Planning Partners, Inc. In addition, staff expect to utilize available on call providers to assist with Council priorities and to initiate anticipated projects until September 2024. BACKGROUND In June 2020, the City Council approved1 eight planning services on-call contracts for a combined not-to-exceed amount of $1.5 million through June 30, 2024. Staff had previously completed a competitive solicitation process to identify the firms best suited to provide consultant support as needed. The original anticipated total not-to-exceed amount was for $5.0 million. Given the financial uncertainty at the time, staff requested a reduced initial amount of $1.5 million, including negotiated rate reductions, and notified Council that staff would need to return for additional contract authority before the end of the contract term. In April 2023, the City Council approved2 Amendment No. 1 which increased the not-to-exceed amount to $3.0 million, adjusted hourly rates for Lexington Planning, and omitted Rincon Consultants due to proposed rate increases. At that time, $1.4 million of the contract had been spent on long-range planning projects and current planning application processing, covering key City Council priorities identified throughout the year. While long-range planning is not fully fee- supported, fees from current planning projects offset consultant costs. On-call contracts are utilized as needed, contingent on available funding within the annual Adopted Operating Budget. ANALYSIS On-call contracts provide expert service that is efficient, responsive, and available as needed. The PDS Department relies on these contracts to provide necessary expertise to meet the fluctuating demand in long range planning, application processing, historic and environmental review. Generally, staff will develop a scope of work and issue the project to the firm best suited to execute on the work based on the qualifications such as experience, subject area expertise, and cost. Each of the firms offer varying skills and services, so not all firms are considered for all projects. To allow for continuity of services, staff is returning to the City Council to increase the not-to- exceed amount by $500,000 to allow for the completion of works in progress prior to the release of a new request for proposals (RFP) with an updated scope in March. Although staff anticipates completing the RFP process by July, an extension until September will allow staff to transition 1 City Council, June 22, 2020, Staff Report 11147: https://www.cityofpaloalto.org/files/assets/public/agendasminutes- reports/reports/city-manager-reports-cmrs/year-archive/2020/id-11147.pdf 2 City Council, April 3, 2023, Staff Report 2303-1145: https://cityofpaloalto.primegov.com/Portal/viewer?id=1892&type=0 any ongoing work and projects to the new set of approved on call consultants Approval of the recommended amendment will allow the department to continue utilizing consultants for specific expertise as the competitive solicitation and award process complete. To date, the City has spent or allocated $2.9 million of the contract to support long range planning, current planning application processing, historic and environmental review on projects such as the North Ventura Coordinated Housing Plan, Housing Element Development, Retail Ordinance Development, Parklet Design Standards, and other state mandated legislative updates. This will build capacity to allow for nimble response to Council priorities, assignments, and needs throughout the year. FISCAL/RESOURCE IMPACT Use of consultants for specific assistance is an efficient and effective use of resources, allowing the department to quickly access needed technical skills. The cost of the contracts is offset by fees collected by the department for application processing, consistent with the FY 2024 Adopted Municipal Fee Schedule. The budget for these contracts is contained in the PDS Department adopted budget. Use of contractors for planning work is contingent on (1) approved contracts with capacity to support the required scope; and (2) availability of funding in the department’s approved budget. Staff is only requesting an increase in contract capacity at this time. Corresponding budget requests to fund the increased contract capacity will be brought forward through the budget cycle. No work will be assigned to consultants under these contracts unless there is sufficient operating budget to cover the costs. STAKEHOLDER ENGAGEMENT Professional planners and managers in the PDS Department participated in the development of this recommendation given departmental workload. ENVIRONMENTAL REVIEW Approval of these contracts is not a project under the California Environmental Quality Act (CEQA) and therefore no environmental review is required. ATTACHMENTS Attachment A: Contract No. C20178879 with Arnold Mammarella Architecture and Consulting Attachment B: Contract No. C20178878 with Metropolitan Planning Group Attachment C: Contract No. C20178882 with Placeworks, Inc. Attachment D: Contract No. C20178877A with Lexington Planning Attachment E: Contract No. C20178891 with Michael Baker International, Inc. Attachment F: Contract No. C20178881 with Page Southerland Page AE Attachment G: Contract No. C20178884 with Urban Planning Partners, Inc. APPROVED BY: Jonathan Lait, Planning and Development Services Director Vers.: Aug. 5, 2019 Page 1 of 4 AMENDMENT NO. 2 TO CONTRACT NO. C20178879 BETWEEN THE CITY OF PALO ALTO AND ARNOLD MAMMARELLA ARCHITECTURE & CONSULTING This Amendment No. 2 (this “Amendment”) to Contract No. C20178879 (the “Contract” as defined below) is entered into as of April 1, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and ARNOLD MAMMARELLA ARCHITECTURE & CONSULTING, a sole proprietor, located at 1569 Solano Avenue, #411, Berkeley, CA 94707 (“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 on-call planning support services, as detailed therein. B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to- exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891), as detailed therein C. On April 3, 2023, the Contract was amended to increase the aggregate amount, not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024, across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891). D. The Parties now wish to amend all seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the contract term by three (3) months, from June 30, 2024 to September 30, 2024, and to increase the aggregate amount by Five Hundred Thousand Dollars ($500,000), from Three Million Dollars ($3,000,000.00), to a not to exceed compensation amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00), 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. C20178879 between CONSULTANT and CITY, dated June 22, 2020, as amended by: Amendment No.1, dated April 3, 2023 DocuSign Envelope ID: 8BBFC4EB-68F5-41D5-BC6D-E045B8C2AEE1 Vers.: Aug. 5, 2019 Page 2 of 4 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 September 30, 2024, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended to read as follows: The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit A, is in an aggregate amount that shall not exceed Three Million Five Hundred Thousand Dollars ($3,500,000.00) over the Term across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891), of which this is one. The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all seven consultants including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements, and will not exceed in aggregate Three Million Five Hundred Thousand Dollars ($3,500,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00) during the term of the agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit “C-1” so long as the changes do not increase the not to exceed amount. 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. DocuSign Envelope ID: 8BBFC4EB-68F5-41D5-BC6D-E045B8C2AEE1 Vers.: Aug. 5, 2019 Page 3 of 4 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: 8BBFC4EB-68F5-41D5-BC6D-E045B8C2AEE1 Vers.: Aug. 5, 2019 Page 4 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 ARNOLD MAMMARELLA ARCHITECTURE & CONSULTING Officer 1 By: Name: Arnold Mammarella Title: Principal arnold@mammarellaarchitecture.com DocuSign Envelope ID: 8BBFC4EB-68F5-41D5-BC6D-E045B8C2AEE1 Vers.: Aug. 5, 2019 Page 1 of 4 AMENDMENT NO. 2 TO CONTRACT NO. C20178878 BETWEEN THE CITY OF PALO ALTO AND METROPOLITAN PLANNING GROUP This Amendment No. 2 (this “Amendment”) to Contract No. C20178878 (the “Contract” as defined below) is entered into as of April 1, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and METROPOLITAN PLANNING GROUP, a California corporation, located at 51 E. Campbell Ave #1247, Campbell, CA, 95009 (“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 on-call planning support services, as detailed therein. B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to- exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891). C. On April 3, 2023, the Contract was amended to increase the aggregate amount, not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024, across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891)as detailed therein. D. The Parties now wish to amend all seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the contract term by three (3) months, from June 30, 2024 to September 30, 2024, and to increase the aggregate amount by Five Hundred Thousand Dollars ($500,000), from Three Million Dollars ($3,000,000.00), to a not to exceed compensation amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00), 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. C20178878 between CONSULTANT and CITY, dated June 22, 2020, as amended by: Amendment No.1, dated April 3, 2023 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. DocuSign Envelope ID: B886EEE0-E8BA-467E-B911-7B0281F3D093 Vers.: Aug. 5, 2019 Page 2 of 4 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 September 30, 2024, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended to read as follows: The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit A, is in an aggregate amount that shall not exceed Three Million Five Hundred Thousand Dollars ($3,500,000.00) over the Term across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891), of which this is one. The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all seven consultants including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements, and will not exceed in aggregate Three Million Five Hundred Thousand Dollars ($3,500,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00) during the term of the agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit “C-1” so long as the changes do not increase the not to exceed amount. 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. DocuSign Envelope ID: B886EEE0-E8BA-467E-B911-7B0281F3D093 Vers.: Aug. 5, 2019 Page 3 of 4 (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: B886EEE0-E8BA-467E-B911-7B0281F3D093 Vers.: Aug. 5, 2019 Page 4 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 METROPOLITAN PLANNING GROUP Officer 1 By: Name: Geoff Bradley Title: President gbradley@m-group.us Officer 2 By: Name: Heather Bradley Title: Treasurer hbradley@m-group.us DocuSign Envelope ID: B886EEE0-E8BA-467E-B911-7B0281F3D093 Vers.: Aug. 5, 2019 Page 1 of 4 AMENDMENT NO. 2 TO CONTRACT NO. C20178882 BETWEEN THE CITY OF PALO ALTO AND PLACEWORKS, INC. This Amendment No. 2 (this “Amendment”) to Contract No. C20178882 (the “Contract” as defined below) is entered into as of April 1, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and PLACEWORKS, INC., a a California corporation, located at 3 MacArthur Place, Suite 1100, Santa Ana, CA 92707 (“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 on-call planning support services, as detailed therein. B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to- exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891). C. On April 3, 2023, the Contract was amended to increase the aggregate amount, not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024, across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) as detailed therein. D. The Parties now wish to amend all seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the contract term by three (3) months, from June 30, 2024 to September 30, 2024, and to increase the aggregate amount by Five Hundred Thousand Dollars ($500,000), from Three Million Dollars ($3,000,000.00), to a not to exceed compensation amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00), 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. C20178882 between CONSULTANT and CITY, dated June 22, 2020, as amended by: Amendment No.1, dated April 3, 2023 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. DocuSign Envelope ID: 011C2A97-6C91-4B1C-8DB2-5CE9066B3C1B Vers.: Aug. 5, 2019 Page 2 of 4 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 September 30, 2024, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended to read as follows: The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit A, is in an aggregate amount that shall not exceed Three Million Five Hundred Thousand Dollars ($3,500,000.00) over the Term across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891), of which this is one. The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all seven consultants including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements, and will not exceed in aggregate Three Million Five Hundred Thousand Dollars ($3,500,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00) during the term of the agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit “C-1” so long as the changes do not increase the not to exceed amount. 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. DocuSign Envelope ID: 011C2A97-6C91-4B1C-8DB2-5CE9066B3C1B Vers.: Aug. 5, 2019 Page 3 of 4 (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: 011C2A97-6C91-4B1C-8DB2-5CE9066B3C1B Vers.: Aug. 5, 2019 Page 4 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 PLACEWORKS, INC. Officer 1 By: Name: Kara L Kosel Title: Vice President kkosel@placeworks.com Officer 2 By: Name: Keith McCann Title: Secretary kmccann@placeworks.com DocuSign Envelope ID: 011C2A97-6C91-4B1C-8DB2-5CE9066B3C1B Vers.: Aug. 5, 2019 Page 1 of 4 AMENDMENT NO. 2 TO CONTRACT NO. C20178877A BETWEEN THE CITY OF PALO ALTO AND LEXINGTON PLANNING LLC This Amendment No. 2 (this “Amendment”) to Contract No. C20178877A (the “Contract” as defined below) is entered into as of April 1, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and LEXINGTON PLANNING LLC, a Vermont limited liability company, located at P.O. Box 832, Middlebury, VT, 05753 (“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 on-call planning support services, as detailed therein. B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to- exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891). C. On April 3, 2023, the Contract was amended to increase the aggregate amount, not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024, across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) as detailed therein D. The Parties now wish to amend all seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the contract term by three (3) months, from June 30, 2024 to September 30, 2024, and to increase the aggregate amount by Five Hundred Thousand Dollars ($500,000), from Three Million Dollars ($3,000,000.00), to a not to exceed compensation amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00), 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. C20178877A between CONSULTANT and CITY, dated June 22, 2020, as amended by: Amendment No.1, dated April 3, 2023 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. DocuSign Envelope ID: 9378E04B-B934-4405-A826-02AB63496D69 Vers.: Aug. 5, 2019 Page 2 of 4 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 September 30, 2024, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended to read as follows: The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit A, is in an aggregate amount that shall not exceed Three Million Five Hundred Thousand Dollars ($3,500,000.00) over the Term across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891), of which this is one. The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all seven consultants including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements, and will not exceed in aggregate Three Million Five Hundred Thousand Dollars ($3,500,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00) during the term of the agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit “C-1” so long as the changes do not increase the not to exceed amount. 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. DocuSign Envelope ID: 9378E04B-B934-4405-A826-02AB63496D69 Vers.: Aug. 5, 2019 Page 3 of 4 (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: 9378E04B-B934-4405-A826-02AB63496D69 Vers.: Aug. 5, 2019 Page 4 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 LEXINGTON PLANNING LLC Officer 1 By: Name: Jean Eisberg Title: Principal jean@lexingtonplanning.com DocuSign Envelope ID: 9378E04B-B934-4405-A826-02AB63496D69 Vers.: Aug. 5, 2019 Page 1 of 4 AMENDMENT NO. 2 TO CONTRACT NO. C20178891 BETWEEN THE CITY OF PALO ALTO AND MICHAEL BAKER INTERNATIONAL, INC. This Amendment No. 2 (this “Amendment”) to Contract No. C20178891 (the “Contract” as defined below) is entered into as of April 1, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MICHAEL BAKER INTERNATIONAL, INC., a Pennsylvania corporation, located at 100 Airside Drive Moon Township, PA 15108 (“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 on-call planning support services, as detailed therein. B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to- exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891). C. On April 3, 2023, the Contract was amended to increase the aggregate amount, not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024, across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) as detailed therein D. The Parties now wish to amend all seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the contract term by three (3) months, from June 30, 2024 to September 30, 2024, and to increase the aggregate amount by Five Hundred Thousand Dollars ($500,000), from Three Million Dollars ($3,000,000.00), to a not to exceed compensation amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00), 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. C20178891 between CONSULTANT and CITY, dated June 22, 2020, as amended by: Amendment No.1, dated April 3, 2023 DocuSign Envelope ID: 2C539EA7-359A-4AED-9171-794ED3A824AB Vers.: Aug. 5, 2019 Page 2 of 4 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 September 30, 2024, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended to read as follows: The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit A, is in an aggregate amount that shall not exceed Three Million Five Hundred Thousand Dollars ($3,500,000.00) over the Term across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891), of which this is one. The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all seven consultants including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements, and will not exceed in aggregate Three Million Five Hundred Thousand Dollars ($3,500,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00) during the term of the agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit “C-1” so long as the changes do not increase the not to exceed amount. 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. DocuSign Envelope ID: 2C539EA7-359A-4AED-9171-794ED3A824AB Vers.: Aug. 5, 2019 Page 3 of 4 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: 2C539EA7-359A-4AED-9171-794ED3A824AB Vers.: Aug. 5, 2019 Page 4 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 MICHAEL BAKER INTERNATIONAL, INC. Officer 1 By: Name: Christopher Alberts Title: Vice President calberts@mbakerintl.com Officer 2 By: Name: Richard Beck Title: Asst. Secretary rbeck@mbakerintl.com DocuSign Envelope ID: 2C539EA7-359A-4AED-9171-794ED3A824AB Vers.: Aug. 5, 2019 Page 1 of 4 AMENDMENT NO. 2 TO CONTRACT NO. C20178881 BETWEEN THE CITY OF PALO ALTO AND PAGE SOUTHERLAND PAGE, INC. dba PAGE SOUTHERLAND PAGE AE, INC. This Amendment No. 2 (this “Amendment”) to Contract No. C20178881 (the “Contract” as defined below) is entered into as of April 1, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and PAGE SOUTHERLAND PAGE, INC. dba PAGE SOUTHERLAND PAGE AE, INC., a Delaware corporation, located at 1100 Louisiana, Suite One, Houston, TX 77002 (“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 on-call planning support services, as detailed therein. B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to- exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891). C. On April 3, 2023, the Contract was amended to increase the aggregate amount, not-to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024, across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) as detailed therein. D. The Parties now wish to amend all seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the contract term by three (3) months, from June 30, 2024 to September 30, 2024, and to increase the aggregate amount by Five Hundred Thousand Dollars ($500,000), from Three Million Dollars ($3,000,000.00), to a not to exceed compensation amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00), 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. C20178881 between CONSULTANT and CITY, dated June 22, 2020, as amended by: Amendment No.1, dated April 3, 2023 DocuSign Envelope ID: 4193CCDB-8CBC-430C-8290-A57344A876DB Vers.: Aug. 5, 2019 Page 2 of 4 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 September 30, 2024, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended to read as follows: The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit A, is in an aggregate amount that shall not exceed Three Million Five Hundred Thousand Dollars ($3,500,000.00) over the Term across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891), of which this is one. The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all seven consultants including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements, and will not exceed in aggregate Three Million Five Hundred Thousand Dollars ($3,500,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00) during the term of the agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit “C-1” so long as the changes do not increase the not to exceed amount. 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. DocuSign Envelope ID: 4193CCDB-8CBC-430C-8290-A57344A876DB Vers.: Aug. 5, 2019 Page 3 of 4 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: 4193CCDB-8CBC-430C-8290-A57344A876DB Vers.: Aug. 5, 2019 Page 4 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 PAGE SOUTHERLAND PAGE, INC. dba PAGE SOUTHERLAND PAGE AE, INC. Officer 1 By: Name: Barbara Maloney Title: Vice President bmaloney@pagethink.com Officer 2 By: Name: Catherine Britt Title: Chief Financial Officer cbritt@pagethink.com DocuSign Envelope ID: 4193CCDB-8CBC-430C-8290-A57344A876DB Vers.: Aug. 5, 2019 Page 1 of 4 AMENDMENT NO. 2 TO CONTRACT NO. C20178884 BETWEEN THE CITY OF PALO ALTO AND URBAN PLANNING PARTNERS, INC. This Amendment No. 2 (this “Amendment”) to Contract No. C20178884 (the “Contract” as defined below) is entered into as of April 1, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and URBAN PLANNING PARTNERS, INC., a California corporation, located at 388 17th Street, Suite 230, Oakland, CA 94612 (“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 on-call planning support services, as detailed therein. B. On June 22, 2020, the Contract was entered into as an aggregate amount, not-to- exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) over a four-year term through June 30, 2024, across a total of eight (8) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178883, C20178884, and C20178891), as detailed therein C. The Parties entered into Amendment No. 1 to increase the aggregate amount, not- to-exceed Three Million Dollars ($3,000,000.00) over a four-year term through June 30, 2024, across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891), as detailed therein. D. The Parties now wish to amend all seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891) to extend the contract term by three (3) months, from June 30, 2024 to September 30, 2024, and to increase the aggregate amount by Five Hundred Thousand Dollars ($500,000), from Three Million Dollars ($3,000,000.00), to a not to exceed compensation amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00), 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. C20178884 between CONSULTANT and CITY, dated June 22, 2020, as amended by: Amendment No.1, dated April 3, 2023 DocuSign Envelope ID: 92620F8B-691F-4582-A1E6-AC9F38C4E947 Vers.: Aug. 5, 2019 Page 2 of 4 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 September 30, 2024, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended to read as follows: The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit A, is in an aggregate amount that shall not exceed Three Million Five Hundred Thousand Dollars ($3,500,000.00) over the Term across a total of seven (7) consultant agreements (C20178877A, C20178878, C20178879, C20178881, C20178882, C20178884, and C20178891), of which this is one. The seven contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. CONSULTANT acknowledges and agrees that the CITY is hiring seven (7) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all seven consultants including CONSULTANT, will not exceed in aggregate, across all seven (7) consultant agreements, and will not exceed in aggregate Three Million Five Hundred Thousand Dollars ($3,500,000.00). CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00) during the term of the agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates in Exhibit “C-1” so long as the changes do not increase the not to exceed amount. 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. DocuSign Envelope ID: 92620F8B-691F-4582-A1E6-AC9F38C4E947 Vers.: Aug. 5, 2019 Page 3 of 4 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: 92620F8B-691F-4582-A1E6-AC9F38C4E947 Vers.: Aug. 5, 2019 Page 4 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 URBAN PLANNING PARTNERS, INC. Officer 1 By: Name: Lynette Dias Title: Principal ldias@up-partners.com Officer 2 By: Name: Carla Violet Title: Associate Principal cviolet@up-partners.com DocuSign Envelope ID: 92620F8B-691F-4582-A1E6-AC9F38C4E947 Dear Mayor and Council Members, On behalf of City Manager Ed Shikada, please see staff responses below for questions from Council Member Tanaka on the Monday, April 15 Council Meeting. Item 5: Approval of Construction Contract C24190225 with Graham Contractors, Inc. in an Amount Not-to-Exceed $1,594,195 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that may Develop During the Project Up to a Not-to-Exceed Amount of $159,420 for the Fiscal Year 2024 Streets Preventive Maintenance Project, Capital Improvement Program Projects PE- 86070, and PO-11001; CEQA status – exempt under CEQA Guidelines Section 15301(c) 1. In light of Graham Contractors, Inc.'s legal dispute detailed in the case of Graham Contracting, Ltd. v. City of Federal Way, which has exposed vulnerabilities in managing contractual obligations and dispute resolutions that ultimately resulted in a lawsuit as a result of contractual delays, how does the city propose to mitigate these risks in the administration of the Fiscal Year 2024 Streets Preventive Maintenance Project? Please provide detailed strategies that will be employed. Staff response: First, it should also be noted that the contract award pertains to Graham Contractors, Inc., a California corporation, and not Graham Contracting, Ltd., a Washington corporation, as referenced in the legal case. In the Graham Contracting, Ltd. v. City of Federal Way case, a court found against Graham Contracting and in favor of the City of Federal Way because Graham did not follow the dispute resolution procedures included in the relevant contract. As is common practice in staff’s administration of all construction contracts, in the event of a dispute staff will insist that the contract dispute resolution procedures are followed and will not waive the City’s rights under the contract. 2. Given the current economic climate and the pressing needs of our community in other critical areas such as housing, how does the city justify prioritizing this particular street preventive maintenance project over other potentially more urgent community needs? Furthermore, what comprehensive assessment confirms that the current condition of the streets involved in this project indeed warrants this level of immediate investment, or could these funds be more effectively allocated to address other immediate challenges facing our community? Staff response: The prioritization of funding for City needs is conducted by the City Council through the annual budget process. The City Council has budgeted an annual amount in the capital improvement program’s Street Maintenance project to further the City’s goal of maintaining an average citywide pavement condition index score of 85. As described in the staff report, staff conducts biennial surveys of all City streets to determine pavement condition index scores that, along with planned utility work and bicycle facilities, are used to prioritize which streets are selected for this annual project as well as the annual street resurfacing project. 3. In light of the discrepancy between Graham Contractors, Inc.'s bid and the engineer's estimate, which suggests a significant undervaluation or possible oversight in the project's complexity and required resources, can you explain how the city plans to ensure that this contract will not encounter unforeseen cost overruns or require additional funding beyond the allocated budget? Specifically, what measures are in place to prevent the project from exceeding its financial boundaries due to the initial underestimation, and how will these measures protect the city's financial interests without compromising on the quality and timeline of the project? Staff response: The engineer’s estimate is based on previous project pricing with consideration to inflation to come up with an estimated total project cost. In this instance, the bid from Graham Contractors, Inc. came in 5% below the engineer’s estimate. The budgeted contract amount will be fixed to the amount of $1,753,615 which includes a 10% contingency amount to account for any unforeseen circumstances. Historically for this annual project, staff has not encountered issues staying within these financial boundaries. For any adjustments to the Contract Value, the contractor is required to follow City processes outlined in the construction contract. Requests are reviewed by project staff and approved or rejected accordingly. Item 6: Staff Recommends Increasing the Budget for the Advanced Heat Pump Water Heater Pilot Program by $846,000 to Increase Participation with Higher Rebates, and Amend the Fiscal Year Budget Appropriation for the Gas Fund; CEQA Status: Not a Project under CEQA Guidelines Section 15378(b)(5) 1. Considering the significant allocation of $846,000 from the Gas Fund's Cap and Trade Reserve for the HPWH Pilot Program, could you elaborate on how this investment compares, in terms of projected environmental impact and cost-effectiveness, with other potential uses of these funds? Specifically, how does this initiative align with our broader sustainability goals compared to alternative projects that these funds could support, ensuring we maximize the environmental benefit and equity per dollar spent across the community? Staff Response: To meet the City’s S/CAP goals, staff is working to implement a number of programs targeting GHG emissions reductions in both residential and nonresidential building sectors as well as the transportation sector. Within the residential building sector, water heating in single family homes accounts for 40% of the GHG emissions and is the second most cost-effective GHG emissions potential, behind central HVAC system with cooling, which accounts for only 10% of the GHG emissions in single family homes (see chart below). While there are other strategies that are more cost effective than electrification of water heating in single family homes, the City will not be able to meet its 80x30 goals by solely relying on GHG emission reductions in the transportation sector. source: 2022 Sustainability/Climate Action Plan 2. Considering that nearly 44.1% of Palo Alto's population are renters and may face barriers to participating in the HPWH Pilot Program, how does the city plan to ensure equitable access to the program's benefits across all income levels and housing situations, particularly for those who may not have the authority to make such installations in their homes? Staff Response: Staff agrees that renters should have equal access to electrification programs and their benefits. The current turnkey HPWH program is open to participation by renters with consent by their landlords. Because the program is designed to provide the service of a pre-screened contractor that can cover the electrical and plumbing work as well as the permit coordination, with an upfront cost to replace a gas water heater with a HPWH that is lower than a like-for-like gas water heater replacement, this makes the program attractive from a landlord perspective. Low-income residents in single-family homes are eligible to participate in the Residential Energy Assistance Program (REAP), which offers a HPWH retrofit at no cost, in addition to other no cost efficiency retrofits. The City continues to receive generous state incentives for HPWH retrofits for income-qualified customers, with up to $4,885 for each HPWH installed plus an additional $4000 for electrical upgrades. 3. How does the city justify the expectation to double the program's installation rates from 350 to 700 participants with the proposed incentives, which are notably less generous than those offered after November 1, 2023? Specifically, what strategies are in place to ensure that the reduced incentives will still effectively motivate a significant increase in participant uptake, despite the increased financial commitment required from them? Staff Response: The new incentives, while slightly lower than the previous incentives that included the state's TECH funds before they were expended, will continue to offer a new HPWH retrofit that is price-competitive with a like-for-like gas water heater replacement. With the new incentive level, the average customer cost for a new permitted HPWH will be $2,300, or $1,100 if they choose the zero interest on bill financing option. After taking into account the 30% federal tax credit for heat pump installation, the net customer cost is just $1,600. By comparison, a gas tank water heater replacement is between $2,000 to $2,500 before the permit cost. This means the customer will continue to get substantial savings by choosing the turnkey HPWH program. Item 10: Approval of Contract Amendment Number 2 to Seven On-call Consulting Contracts to Increase in the Amount by $500,000 to a Total Not to Exceed to $3.5 Million and Extend Term by Three Months to Provide Expertise for Long Range Planning Projects, Application Processing, Environmental Review, and Other Planning Analysis in the Planning and Development Services Department 1. Given the proposal to increase the budget for on-call consulting contracts by $500,000, the staff report fails to provide a precise, itemized breakdown of this allocation, offering only broad implications of its use across various projects and services. Considering the importance of fiscal responsibility and transparency to our constituents, what is a detailed justification for this increase? Specifically, how will each segment of the increase directly contribute to the city's strategic priorities and deliver tangible benefits to our community? We are seeking more specifics rather than the broad strokes provided in the staff report. Staff response: The proposed amendment seeks to augment contract capacity only, without the need for an additional increase to the budget. The budget to support this work has already been approved in the FY2024 Operating Budget. The additional contract capacity will support: current planning application processing, the next phase of the parklet prototype study, continuation of the retail study, Housing Element program implementation, and any Council priorities that are initiated between now and September 2024. Approval of this item is directly in support of providing planning services to the community and addressing the City’s strategic priorities. The budget and work associated with these contracts have already been approved by Council, and no additional budget will be allocated without Council consideration and approval. 2. Given the proposed $500,000 increase in the budget for on-call consulting contracts, and recognizing the critical need for the city to maintain and develop its internal planning and development expertise, how does the city plan to address the potential long-term negative impacts of this dependency on external consultants? Specifically, how will the city mitigate the erosion of in-house expertise, manage escalating costs associated with prolonged consultant use, and ensure operational consistency amid potential risks introduced by relying heavily on external entities? Is there a strategic plan in place to balance the benefits of external expertise with the development of our city staff's capabilities to safeguard our fiscal health and strategic autonomy? Staff response: The use of on-call consultants offers a flexible solution to the City’s evolving needs, enabling staff to respond to the changing needs of the community while maintaining fiscal prudence. Through the use of on-call consultants, the City has the ability to scale services up or down based on workload, staffing level, technical expertise, and economic conditions. This approach ensures the continuity of services during staffing vacancies or peak application volume and provides specialized expertise required for policy consideration as it relates to Council priorities. Utilizing on-call consultants allows the department to avoid overstaffing for peak application volume and specialized technical support, thereby contributing to the City’s financial health and operational flexibility.