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HomeMy WebLinkAboutStaff Report 2404-2878CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, June 10, 2024 Council Chambers & Hybrid 4:00 PM     Agenda Item     7.Approval of Construction Contract C24190538A with JJR Construction, Inc. in an Amount Not-to-Exceed $1,586,191 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 $158,619 for the Fiscal Year 2024 Sidewalk Repair ADA Improvement Project-REBID, Capital Improvement Program Projects PO-89003 and PO-12001; CEQA Status – exempt under section 15301(c) Consent Questions 4 4 7 5 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: June 10, 2024 Report #:2404-2878 TITLE Approval of Construction Contract C24190538A with JJR Construction, Inc. in an Amount Not- to-Exceed $1,586,191 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 $158,619 for the Fiscal Year 2024 Sidewalk Repair ADA Improvement Project-REBID, Capital Improvement Program Projects PO-89003 and PO-12001; CEQA Status – exempt under section 15301(c) RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute Construction Contract No. C24190538A with JJR Construction, Inc., in an amount not to exceed $1,586,191 for the Fiscal Year 2024 Sidewalk Repair ADA Improvement Project-REBID (Sidewalk Repairs (PO-89003) and Curb and Gutter Repairs (PO-12001) capital improvement projects); and 2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with JJR Construction, Inc. for related, additional but unforeseen work that may develop during the project, the total value of which shall not exceed $158,619. BACKGROUND The Public Works Engineering Services Division manages construction contracts for concrete sidewalk, driveway, curb ramp, curb and gutter repairs and maintenance at various locations throughout the City annually. The City completed its 30-year district by district repair program in 2017. That same year, the City contracted with Nichols Consulting Engineers (NCE) to evaluate the program and assess potential improvements.1 The study was completed in Spring 2019 and included surveying 20 percent of the City’s sidewalk network and nearly 60 percent of 1 City Council, November 06, 2017: Agenda Item# 11; SR #8611, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2017/id.-8611-sidewalk-assessment-study.pdf 4 4 7 5 the curb ramps. This data was used to determine trends for future repairs and determine funding needs to maintain the 30-year sidewalk district program. The City deferred its annual sidewalk maintenance program due to funding being reduced in FY 2021 and FY 2022 as a part of the FY 2021 Capital Improvement Program budget strategy. The remaining funding was used to perform emergency maintenance and spot repairs. Funding was restored in FY 2023 to support pre-pandemic maintenance schedules, however Public Works Engineering Services Division was not fully staffed and was unable to manage a project in FY 2023. With the staff vacancies now filled, staff is ready to implement a larger sidewalk project that would incorporate additional funding from the Community Development Block Grant (CDBG). The City will be resuming its sidewalk maintenance program and starting a new district by district repair cycle this fiscal year based on the data provided by the NCE study. The study renumbered the sidewalk districts in order of priority based on the quantity of repairs required. Based on this new ranking, repairs for this fiscal year’s project will primarily be focused on sidewalk districts 1 and 2 which encompasses the Downtown and Professorville neighborhoods. ANALYSIS Staff recommends approval of Contract No. C24190538A2 as part of the program to maintain and improve the condition of Palo Alto’s sidewalk network. Each year this project addresses one or two of the 23 sidewalk districts. The City will be starting a new rehabilitation cycle starting with sidewalk districts 1 and 2. The work to be performed under this concrete involves sidewalk, driveway, curb ramp, curb, gutter, and asphalt pavement repairs. Repair locations are shown in Attachment A. The scope of work includes the replacement of approximately 18,468 square feet of concrete sidewalk, 2,136 linear feet of curbs and gutters, and 3,759 square feet of driveways. Additionally, 84 new curb ramps will be installed, and 33 existing curb ramps will be retrofitted with truncated domes to conform to the Americans with Disabilities Act (ADA). A portion of this project is funded by the Community Development Block Grant (CDBG) program, administered by the U.S. Department of Housing and Urban Development (HUD). Funds of $300,000 were reallocated from the Ravenswood Family Health Network3 and funds of $211,673 were appropriated to align the FY 2024 Budget with the FY 2023-24 CDBG Action 2 JJR Construction, Inc.FY24 Sidewalk Repair ADA Improvement Project, Contract #C24190538A; www.cityofpaloalto.org/files/assets/public/v/1/public-works/engineering-services/cip-contracts/c24190538a-jjr- construction_5.20.2024_staff-report_rev1.pdf 3 City Council, April 17, 2023; Agenda Item #9; SR #2302-0991; https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/engineering-services/cip-contracts/sr2302- 0991-4.17.2023-cdbg-funds-for-sidewalk-cip-po-89003.pdf 4 4 7 5 Plan4 totaling $511,673. The transferred funds will be used to cover a part of the project’s improvements which equates to 59 new curb ramps and 4,704 square feet of sidewalk. Solicitation Process On March 13, 2024, a notice inviting formal bids for the FY 2024 Sidewalk Repair ADA Improvement Project was posted on OpenGov, the City’s eProcurement platform. The bidding period was 21 calendar days. The City received three (3) responsive bids over the approved budget, hence the City exercised its right to reject all bids. Subsequently, on April 17, 2024, a notice inviting formal bids for the FY 2024 Sidewalk Repair ADA Improvement Project-REBID was posted on OpenGov with adjustments made to the project scope. The rebidding period was 14 calendar days. Bids were received from three (3) qualified contractors on May 1, 2024, as listed on the attached Bid Analysis in Attachment B. Table #1: Summary of Invitations for Bid Project Bid Name/Number FY 2024 Sidewalk Repair ADA Improvement Project-REBID (IFB 190538A) Proposed Length of Project 210 calendar days # of Bid Packages Downloaded by Contractors 17 # of Bid Packages Downloaded by Builder’s Exchanges 1 Total Days to Respond to Bid 14 calendar days Mandatory Pre-Bid Meeting?No Number of Bids Received 3 Bid Price Range $1,481,791 to $2,373,045 Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto- ca/projects/90537 The apparent low bidder was selected based upon the base bid. The bids ranged from $1,481,791 to $2,373,045 and from 20% below to 28% above the engineer’s estimate of $1,856,815. Staff reviewed the submitted bids and recommends the acceptance of the base bid submitted by JJR Construction, Inc. in the amount of $1,481,791, and that JJR Construction, Inc. be declared the lowest responsible bidder. Staff also recommends awarding add alternates #1 and #2 in the amounts of $46,400 and $58,000 for additional sidewalk repairs. The total base bid plus the add alternates totals $1,586,191. The construction contingency amount of $158,619, which equals approximately 10% of the contract value, is requested for related, additional, but unforeseen work which may develop during the project, implemented via City-approved Change Order. Staff reviewed information and similar projects performed by the lowest bidder, JJR 4 City Council, February 12, 2024; Agenda Item #11; SR#2311-2233; https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/engineering-services/cip-contracts/sr2311- 2233-2.12.2024-cdbg-fy-2024-mid-year.pdf 4 4 7 5 Construction, Inc. and found them to be the lowest responsive and responsible bidder. Staff also checked with the Contractor’s State License Board and confirmed the contractor has an active license on file. FISCAL/RESOURCE IMPACT Funding for this contract is available in the Fiscal Year 2024 Adopted Capital Improvement Program Sidewalk Repairs project (PO-89003), and Curb and Gutter Repairs project (PO-12001). The funding allocation is as follows: Table #2: Funding Allocation Funding Source Contract Contingency Total Encumbrance PO-89003 $1,403,448 $140,345 $1,543,793 PO-12001 $182,743 $18,274 $201,017 Total $1,586,191 $158,619 $1,744,810 STAKEHOLDER ENGAGEMENT Notices of sidewalk and driveway closures will be distributed to impacted parties 72-hours to 120-hours prior to the start of work. “No Parking” signs will also be posted 72-hours in advance of all work. The latest construction schedule will be posted on the City website and will be updated as necessary. ENVIRONMENTAL REVIEW This project is categorically exempt from the California Environmental Quality Act (CEQA) under section 15301(c) of the CEQA Guidelines as the project scope involves the repair, maintenance, and/or minor alteration of existing facilities including. No further environmental review is necessary. ATTACHMENTS Attachment A: Project Location Maps Attachment B: Bid Analysis APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Middlefield Road Middlefield Road 293192, 193191 80 79758678 838795 6 84 T h e C i t y o fP a l o A l t o89 88 96 179 85180363 364292 351 353347366190367370 337336 369 371 365350246 354178 352 245 288 244166165 172 171 143 144 145 142 154 155 163 164 162227 226 228 160 161 231 232 Kipling Street Kipling Street 170 318 300 303 316 295 298 301 305 312 314 317 330 331306218334 335 Waverley Street Waverley Street Waverley Street 310263 299 302 304296 307 309 308 313 315239 240 333 332 175259256 258 257 Scott Street17717617424323825560313539 40 41 42 572732, 33 34 Bryant Street Bryant Street 188189 36 37 38 43 291 272 Ramona Street Ramona Street Ramona Street Emerson Street High Street 266 Lane 12 W273Lane 15 E159 Emerson Street n StreetEmerso 242187LEGEND:185 Lane 5 E186194 202 203 204 This map is a product of the City of Palo Alto GIS# # # SIDEWALK REPAIR CURB RAMP - CDBG CURB RAMP 205 206183 8184 182 195 196 241197# RETROFIT CURB RAMP 7 17 18 15CURB/GUTTERREPAIR Alma Street 0'350' bleung, 2024-01-04 17:06:31(\\cc-maps\Encompass\Admin\Meta\View.mdb)This document is a graphic representation only of best available sources.The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto ad Middlefield Road Middlefield Road 217 94 61 22290 91 92 68 70 72 7481 6 T h e C i t y o fP a l o A l t o93 62 63 249 64 65 66 67 69 71 73 82221 216 356 357 361 340 343 344 345 36233953683416342 219 346 286 355 99 358 359 360 338 2204 289 290 285173 287 128 248 121 122 140135124 146 147 129 132 134 103 105 110 113 151152116 118137 139 229 150 141136117149 148 214 138 125 127 130 133102 104107106108 237 225 111112 153 114 115 119 1201231093126131233215Kipling Street 234 230324 169 322 326 329 Waverley Street Waverley Street Waverley Street 168 319 323 213 320 325 327 321 211 328 98 297 281167 282 21 2364421247 48 50 51 1920 235 25 26 224 274 29 30 54 55 21 22 23Bryant Street5646 5249 53 58 59 24 275 276 2845 268 269 eet W 265271264267270 278 277 Emerson Street Emerson Street 198 207 208 This map is a product of the City of Palo Alto GIS200 201High Street 210 209199 16 11 12 9 10 13, 14Alma Street 0'350' bleung, 2024-01-04 17:07:45 This document is a graphic representation only of best available sources.(\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o 97 156 251 Louis Road Barbara Drive This map is a product of the City of Palo Alto GIS 262 0'420' bleung, 2024-01-11 11:55:18(\\cc-maps\Encompass\Admin\Meta\View.mdb)This document is a graphic representation only of best available sources.The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 76, 77Byron Street Byron Street Byron Street 6 Webster Street 348 349 Webster Street T h e C i t y o fP a l o A l t o252 Tasso Street Cowper Street Cowper Street Waverley Street South Court Bryant Street Bryant Street Bryant Street Ramona Street 158 Emerson StreetEmerson Street Emerson Street 157 High Street High Street Hi Alma Street CalTrain ROW Mariposa Avenue Castilleja Avenue This map is a product of the City of Palo Alto GIS 253 254Escobita A venue StreetBirch 0'420' t bleung, 2024-01-11 11:58:34 This document is a graphic representation only of best available sources.(\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto Indian Drive 6 Greer Road T h e C i t y o fP a l o A l t o Burnham Way 101 Louis Road 294 y 280 279 Stelling Drive Rorke Wayn 100 Coastland Drive o Midtown Court This map is a product of the City of Palo Alto GIS Middlefield Road 0'420' bleung, 2024-01-11 12:00:00(\\cc-maps\Encompass\Admin\Meta\View.mdb)This document is a graphic representation only of best available sources.The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o Road Byron Street 250 Street 311 South Court 284 Street Ramona Street Emerson Street Emerson Street Alma Street Alma Street Alma Street This map is a product of the City of Palo Alto GISCalTrain ROW Park Boulevard 0'500' bleung, 2024-01-11 15:59:38(\\cc-maps\Encompass\Admin\Meta\View.mdb)This document is a graphic representation only of best available sources.The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto Alma Street 260 261 Park Boulevard Park Boulevard 6 T h e C i t y o fP a l o A l t o 247 ayle WrdaInteayin WTha 223 nueAvemoCle This map is a product of the City of Palo Alto GIS 283 0'550' bleung, 2024-01-11 13:11:27(\\cc-maps\Encompass\Admin\Meta\View.mdb)This document is a graphic representation only of best available sources.The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o 181 Dartmouth Street This map is a product of the City of Palo Alto GIS 0'262' bleung, 2024-01-11 16:18:44 This document is a graphic representation only of best available sources.(\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto Lane 5 E 6 T h e C i t y o fP a l o A l t o Lane 8 West Lane A A A This map is a product of the City of Palo Alto GIS 0'182' bleung, 2024-04-15 10:02:30 This document is a graphic representation only of best available sources.(\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto Bid Analysis 2024 Sidewalk Base Bid Traffic Control Public Notification Sidewalk Engineer JJR Total $ Spencon R&S TotalBid Item Name QTY UNIT LS Unit Price Total Unit Price Unit Price Total Unit Price 25,000.00 $ 430,000.001 2 3 4 5 6 7 8 9 1 1 $ 80,000.00 $ 20,000.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 80,000.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1.00 1.00 23.20 15.00 30.00 35.35 35.35 35.35 73.35 1.00 $ 25,000.00 1.00 $ 20,000.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 430,000.00 5,000.00 646,380.00 4,960.00 LS SF SF SF SF LF SF LF LF LF EA SF EA SF EA LS 20,000.00 369,360.00 2,480.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 20,000.00 424,764.00 1,240.00 15,800.00 124,047.00 213,600.00 127,200.00 61,500.00 104,130.00 8,400.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5,000.00 35.0018468 248 632 3759 2136 5088 492 534 42 84 396 28 203 30 1 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 20.00 10.00 35.00 25.00 65.00 428,457.60 3,720.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 23.00 5.00 25.00 33.00 100.00 25.00 125.00 195.00 200.00 6,000.00 175.00 150.00 25.00 Sidewalk Removal 20.00 30.00 40.00 55.00 35.00 85.00 90.00 35.00 Brick/Paver Specialty Finish Driveway Type A curb Gutter Pan Type A curb, 1' Buried Type B 22,120.00 93,975.00 138,840.00 330,720.00 63,960.00 96,120.00 10,500.00 504,000.00 31,680.00 14,000.00 4,060.00 18,960.00 132,880.65 75,507.60 179,860.80 36,088.20 66,402.90 4,743.90 465,276.00 13,068.00 4,200.00 18,960.00 150,360.00 117,480.00 178,080.00 41,820.00 48,060.00 1,470.00 672,000.00 29,700.00 4,200.00 65.00 130.00 180.00 250.00 6,000.00 80.00 500.00 20.00 2,000.00 10 11 12 124.35 112.95 5,539.00 33.00 150.00 17.75 Valley Gutter 3' Curb Ramp 13 Detectable Warning Surface 504,000.00 69,300.00 4,200.00 8,000.00 75.00 150.00 25.00 150.00 15,000.00 14 15 16 17 Adjust Utility Box AC Pavement Reset Catch Basin Misc. Improvements 3,603.25 34,020.00 5,075.00 60,000.00 15,000.00 5,075.00 4,500.00 15,000.00 60,000.00 1,134.00 2,000.00 $ 15,000.00 15,000.00 $ 15,000.00 15,000.00 $ 15,000.00 $ 1,856,815.00 $1,481,790.90 ‐20% $ 1,783,256.00 $ 2,373,045.00 28%‐4% UNDER UNDER OVER Add Alt Name Sidewalk Sidewalk Engineer JJR Total Spencon R&S Total $ $ $ Bid Item QTY 2000 2500 UNIT Unit Price Total Unit Price Unit Price $ $ Total Unit Price 1 2 SF SF $ $ 20.00 20.00 $ $ $ 40,000.00 50,000.00 90,000.00 $ $ 23.20 23.20 $ $ $ 46,400.00 58,000.00 104,400.00 35.00 35.00 $ $ $ 70,000.00 87,500.00 157,500.00 $ $ 40.00 40.00 80,000.00 100,000.00 180,000.00 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, June 10 Council Meeting. Item 6: Approval of Contract for Long-Range Facilities Plan Update at RWQCP 1. Given the substantial investment of $2,742,774 for the Long Range Facilities Plan update, what specific, detailed contingency plans and risk mitigation strategies have been put in place to address potential implementation challenges? What metrics or historical data demonstrate the effectiveness of similar contingency plans in past projects of this scale and complexity? Additionally, how can we ensure that these plans are robust enough to handle unforeseen delays or cost overruns, and what are the projected impacts on the project timeline and budget if such issues arise? Staff response: Contingency planning for an advanced planning consultant contract was unnecessary, as significant implementation challenges are not anticipated. There was no need for contingency planning on the prior Long Range Facilities Plan completed in 2012. Standard tools for addressing implementation issues include the use of additional services funding, amendments to the contract for time extensions or additional fees, and so forth. 2. How does the current Long Range Facilities Plan update ensure that the new technologies and infrastructure will remain effective and compliant with future regulatory requirements and environmental standards? What detailed projections and scenarios consider potential increases in wastewater flow, changes in pollutant loads, and emerging contaminants? What specific strategies and investments are planned to adapt to these future challenges and to ensure the plant’s operations are sustainable and resilient in the long term? Staff response: The Long Range Facilities Plan Update report will answer this question; the report will inform on the specific strategies and investments needed to meet future challenges. As part of advanced planning, the consulting firm, Carollo Engineers, will evaluate potential future regulatory requirements and advise the City with experienced engineering staff on the infrastructure options to meet those requirements. The Long Range Facilities Plan Update would be followed by additional planning and design analyses before committing to a particular pathway. The Long Range Facilities Plan Update is not the only planning and design study that will be used to ensure the City’s infrastructure will have a useful life beyond the investment. The main projection components will be for population, per capita flow assumptions, and pollutant loading projections. 3. Given the significant financial commitment required for this project, what is the detailed cost-benefit analysis that justifies the expenditure of $2,742,774, including specific metrics on the anticipated environmental, operational, and community benefits? How do these benefits compare to alternative, potentially less costly solutions? Additionally, what assurances can you provide that this investment will deliver the projected outcomes, and how will we measure and report on the project’s success to ensure accountability to our constituents? Staff response: The Wastewater Treatment Fund has a significant long-term capital program and is currently planning, designing, and constructing approximately $350 million in capital work. The level of financial commitment for this project is in line with the size of the capital program and the complex nature of a 24/7 industrial wastewater treatment facility. The project itself has many benefits. It answers Council questions about whether the Wastewater Treatment Fund has a need to use the Measure E site and it provides a technical basis for the evaluation of the fixed and operating flow shares between partner agencies. It also provides needed space planning analysis and prioritizes needed capital improvements going forward. These benefits are worth the expense required. Specific metrics for environmental, operational, and community benefits were not developed, and it is unclear how such a metric would be determined. Item 7: Approval of JJR Construction Contract for 2024 Sidewalk, Curb, and Gutter Repairs 1. Given the significant impact of the sidewalk repair project on local residents and businesses, what is the comprehensive breakdown of the methods used to solicit and incorporate stakeholder feedback? Specifically, what were the primary concerns raised by these stakeholders, and how have these concerns been addressed in the project plan? Without clear evidence of robust stakeholder engagement, how can we ensure that the community's needs and preferences are being adequately met? Staff response: The locations in this project were compiled through surveying, input from stakeholders via email and phone call, and 311 Requests submitted by the community. Primary concerns raised by stakeholders included tripping hazards, cracked sidewalks, and drainage issues. To address all these concerns, the project expanded its work area to go beyond sidewalk districts 1 and 2 (limits are from Palo Alto Avenue to Embarcadero Road and from Alma Street to Middlefield Road). The project also includes add-alternate bid items to support additional sidewalk repairs to address community requests received during construction that meet repair requirements, in addition to other locations that staff determine need to be repaired. 2. Given the scope of the sidewalk repair project, could you provide a detailed construction timeline that includes specific phases, key milestones, and expected completion dates? Additionally, what comprehensive measures are being implemented to minimize disruptions to residents and businesses, particularly in high-density areas? How will these measures be monitored and adjusted based on community feedback during the construction period? Staff response: The project is organized into two phases, differentiating between improvements that are funded by the Community Development Block Grant (CDBG) program and improvements funded through the Capital Improvement Fund. Due to grant invoice deadlines, the project will address all locations funded by the CDBG program first, before moving on to repair other locations. It is expected that all of the work will be completed in about seven months. Staff understands the impact construction has to the community, especially in high-density areas. Work adjacent to food businesses will be paused during lunch hours from 11 am to 2 pm to help minimize the inconvenience, and access to businesses will be provided at all times. Item 8: Approval of Funding Increase and Contract Extension for Local Advanced Water Purification System Project 1. In light of the proposed budget increase for the Local AWPS project, what detailed analysis has been conducted to ensure that this expenditure is prioritized over other critical infrastructure and service needs within the city? Could you elaborate on the criteria and metrics used to determine this project's precedence, and how this aligns with our long-term financial sustainability goals? Additionally, what are the potential opportunity costs associated with this allocation, and how will they impact other essential city services and projects? Staff response: The report does not propose an increase to the budget for the Local AWPS project. A financial plan for this project was approved unanimously by Council on October 16, 2023, including directions to proceed with securing the construction management services recommended in this report. This capital project’s funding sources are entirely funded from outside agencies and it was therefore not necessary to compare against the City’s long-term financial goals. Staff is working with Mountain View to provide adequate funding, including up-front cash, to ensure there are no cashflow impacts to the City of Palo Alto during construction. 2. The staff report mentions the current use of recycled water for irrigation and industrial purposes. What specific deficiencies were identified in these applications that necessitate the proposed quality improvements? What limitations are currently being faced with the 800 ppm TDS level, and how will reducing this to approximately 450 ppm address these issues? Please include detailed data or case studies illustrating these points. Staff response: The RWQCP recycled water TDS level of 800 mg/L significantly impacts salt sensitive plants. Mountain View has cut down many of their trees in the Shoreline area due to salt from the recycled water and has paused the expansion of their recycled water system while waiting for the outcome of this project. These impacts were described in more detail in the October 16, 2023 Council report. 3. What empirical evidence supports the assertion that reducing TDS levels in recycled water will have a significant, positive impact on the daily lives of Palo Alto residents? What were the findings in projections on how these changes will enhance community well-being or provide economic benefits, particularly in areas currently relying on potable water for applications that could utilize improved recycled water? Staff report: The report does not make such a claim about the impact on the daily lives of Palo Alto residents. The October 16, 2023 Council report states that the project benefits Palo Alto by providing higher quality recycled water for the Golf Course and Greer Park, reducing conversion of marsh near the RWQCP outfall, and reducing discharge to the Bay. The project also furthers our collaborative efforts with treatment plant partner agencies and sets up potential for future recycled water customers within Palo Alto. 4. Have enhanced water conservation programs been considered as a more cost-effective alternative to the significant investment in the Local AWPS project? What detailed projections on the potential water savings and efficiency gains from these programs, supported by data from similar initiatives in other cities, can be provided? How do these projected benefits compare to the expected outcomes of the AWPS project, and what cost-benefit analysis has been conducted to evaluate these options? Staff report: Both Palo Alto and Mountain View have evaluated water conservation against other projects to reduce potable water consumption as part of citywide feasibility studies. Again, the October 16, 2023 Council report reviewed the history of the development of the project, and its recommendation to proceed with the project was approved unanimously by Council. Item 10: Palo Alto Electric Grid Modernization Project Approval 1. Considering the substantial investment of up to $350 million in the grid modernization project, what detailed analysis can be provided on how the benefits will be distributed across different neighborhoods, particularly those that have historically been underserved? Specifically, what criteria are being used to prioritize areas for upgrades, and how will the project ensure equitable service improvements for all residents, not just corporate areas like Stanford Research Park? Staff response: The pilot serves as a testbed to refine engineering designs and construction methods, ensuring efficient resource deployment and minimizing community disruption. The grid modernization project includes major upgrades of the citywide distribution infrastructure and improvements at multiple substations, ensuring that enhancements are spread across all residential areas of the city. Prioritization is based on factors such as current infrastructure conditions, projected load increases, and the need for enhanced reliability and resiliency. 2. Given the projected timeline of 2024 to 2032 for the grid modernization project, what specific technological advancements are anticipated during this period, and how does the project plan to integrate these advancements without causing significant disruptions or additional costs? Can you provide scenarios or case studies where similar long-term projects successfully adapted to technological changes? Staff response: Grid modernization allows the City to advance technological assets and improve grid functionality over time. Specifically, Palo Alto intends to utilize “smart grid” automation by installing two-way communication and enhanced control systems, allowing enhancements to demand reduction efforts. There will be new capabilities, such as providing nearly real time data on energy consumption and voltage information through advanced metering. Additional benefits from real time data includes improving fault detection and isolation, thus improving response time for restoration, and overall reliability. In future stages of the Grid Mod project Utilities will evaluate and implement viable tested technologies that are introduced to the market. The City will also be tracking the progress and technological advancements of the Grid Resilience and Innovation Partnerships (GRIP) Program recipients. 3. What specific contingency plans does the city have to ensure project continuity in the event of unforeseen external factors, such as economic downturns or changes in regulatory requirements? How will these plans be activated, and what metrics will be used to evaluate their effectiveness? Staff response: The project’s phased approach allows for adjustments in response to economic or regulatory changes. By issuing new solicitations for subsequent phases, the City can adapt to budget constraints or new compliance requirements. The City can also reallocate resources, adjust project scope, and modify timelines depending on the situation. The City has implemented contingency plans and risk mitigation strategies to navigate global supply chain challenges for the Grid Modernization Project. These include prequalifying and diversifying suppliers, adding new procurement resources, and leveraging local utilities if needed. In addition, strategic vendor partnerships and regular communication with suppliers help anticipate and address potential disruptions. Project success and effectiveness of contingency plans can be measured by adherence to project timeline and budget, successful integration of new technologies, and conversion rate to fully electrification. Item 11: Approval of Contract Amendment for Integrated Design 360, LLC: Additional $100,000 Funding and Six-Month Extension for Sustainability Services 1. Considering the proposed additional expenditure of $100,000 for the contract amendment with Integrated Design 360, LLC, provide a comprehensive financial breakdown detailing how these funds will be allocated across various activities and services? Specifically, what are the anticipated costs for each segment of their work, such as policy development, training, and program administration? Moreover, what safeguards are in place to ensure that this additional funding is utilized efficiently and without leading to cost overruns? Staff response: A significant portion of the associated contract capacity is associated with providing applicants and design professionals technical support on the enhanced green building and energy compliance standards. The secondary priority will be policy development, more specifically, the upcoming building code outreach and development cycle, expected to begin later this year. Funding for this program will be allocated as part of the FY2025 Operating Budget approved by Council, and no additional budget will be allocated without Council consideration and approval. 2. Regarding the performance metrics and key performance indicators (KPIs) for Integrated Design 360, LLC, detail the specific metrics used to assess their effectiveness in delivering sustainability services? How frequently are these metrics reviewed, and what have the evaluations revealed about their performance to date? Furthermore, are there any independent audit reports or comprehensive performance reviews available that could substantiate the contractor’s contributions towards our sustainability goals? Staff response: Integrated Design 360, LLC’s services augment in-house staff knowledge of green building services and the majority of the work is associated with policy development, code updates, and compliance. Due to the collaborative effort and type of service provided, there are no direct metrics associated solely with this firm. However, some of their contributions can be reflected in general permit activity, such as the increase in electrification permits over the last few years. 3. What contingency plans have been developed to address potential failures or underperformance by Integrated Design 360, LLC? Outline the specific risk management strategies that will be implemented to mitigate any adverse impacts arising from this contract extension? Additionally, could you provide historical examples of how similar risk management approaches have been effectively applied to past contracts? Staff response: The Department does not expect any adverse impacts arising from this minor contract extension. Staff will be pursuing a request for proposal (RFP) this summer associated with green building support at the Development Center, and the procurement process is one of the risk management approaches to evaluate and deploy the most appropriate and cost-effective consultant for ongoing services.