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HomeMy WebLinkAboutStaff Report 2404-2899CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, June 10, 2024 Council Chambers & Hybrid 4:00 PM     Agenda Item     11.Approval of Contract Amendment Number 1 to Contract Number C21181223A with Integrated Design 360, LLC. in the Amount of $100,000 and Extend Term by Six Months for Sustainability Services Related to Green Building, Energy Reach Codes, and Sustainability Climate Action Plan; CEQA Status: Not a Project. Consent Questions City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: June 10, 2024 Report #:2404-2899 TITLE Approval of Contract Amendment Number 1 to Contract Number C21181223A with Integrated Design 360, LLC. in the Amount of $100,000 and Extend Term by Six Months for Sustainability Services Related to Green Building, Energy Reach Codes, and Sustainability Climate Action Plan; CEQA Status: Not a Project. RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute Amendment No. 1 to Contract No. C21181223A (Attachment A) with Integrated Design 360, LLC. for sustainability services in an amount not to exceed $100,000 and a term extension of six (6) months. This amendment results in a revised total contract not-to-exceed amount of $850,000 for basic services and reimbursable expenses, through December 31, 2024. BACKGROUND On June 21, 2021, the City Council approved1 Contract Number C21181223A with Integrated Design 360, LLC, and Contract Number C21181223B with Integral Group Holdings, LLC, for a shared not-to-exceed amount of $750,000 to provide ongoing sustainability services for green building, energy reach code, and the Sustainability Climate Action Plan for a term of three years through June 2024. The City partnered with Integral Group Holdings, LLC, on a limited basis and spent $71,453 through Spring 2022. The City does not plan to use Integral Group Holdings, LLC's (Integral) services for the remaining duration of the contract period due Integral‘s internal staffing transitions, which resulted in the lack of expertise required to support this work. The City partners regularly with Integrated Design 360, LLC, and through Contract Number C21181223A has spent $557,913 to date. These firms were selected from a competitive solicitation (request for proposal, RFP #181223 Green Building Services), conducted in April 2020. Combined, roughly $630,000 of the shared $750,000 was utilized to date and will meet the contract threshold by June 2024. 1 CMR 12322: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2021/id-12322.pdf ANALYSIS The Planning and Development Services Department has two existing contracts with Integrated Design 360, LLC. The primary contract, C21181223A, includes ongoing work related to the development and administration of the Green Building and Energy Reach Code Program, assistance with sustainability and program metrics management and reporting, green building and energy reach code training, green building and energy reach code policy review and creation, ongoing development and administration of the green building special inspector program, and assistance with Sustainability Climate Action Plan implementation. This amendment is considered ongoing daily work associated with green building activities. On April 1, 2024, City Council approved2 a second contract, C24190818, with Integrated Design 360, LLC, for the development of the “One Margin” Reach Code. Although the work is similar, this secondary contract is distinct as the “One Margin” Reach Code work is for a unique specific project on an expedited timeline, with different expectations and deliverables, not included in the original scope of work in the primary contract. The contract amendment for primary ongoing services with Integrated Design 360, LLC, will align the end date of the ongoing sustainability support services with the broader Development Services On-Call contracts for building inspection, building plan check, project coordination, and other services offered at the Development Center. A RFP is expected to be released in Summer 2024 to secure new on-call contracts, including sustainability services, starting January 1, 2025. The results will be presented to City Council in late Fall 2024. Approval of this amendment will result in further efficiency in the procurement process and allow for continuity in services until updated vendor(s) are secured. FISCAL/RESOURCE IMPACT Approval of the recommended contract amendment will allow the department to continue utilizing consultants for specific expertise. The use of consultants provides an efficient and effective means of accessing the technical skills needed quickly. Fiscal Year 2025 contracts are budgeted in the Planning and Development Services Department, subject to City Council approval of the Fiscal Year 2025 Operating Budget. The use of contractors for development services work is contingent on (1) an approved contract with the capacity to support the required scope, and (2) availability of funding in the department’s approved budget. No work will be assigned to consultants under this contract unless there is sufficient operating budget to cover the costs. 2 CMR 2403-2709: https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=7f697cae-2d04-49a0- 8ad4-6adb9b459460 STAKEHOLDER ENGAGEMENT City staff from various departments contributed to the selection criteria development, RFP drafting, proposal review, and firm interviews for the original contract award. Recommendations for contract awards to multiple firms were made following internal panel assessment and discussion. 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: Amendment No. 1 with Integrated Design 360 (C21181223A) APPROVED BY: Jonathan Lait, Planning and Development Services Director Vers.: Aug. 5, 2019 Page 1 of 6 AMENDMENT NO. 1 TO CONTRACT NO. C21181223A BETWEEN THE CITY OF PALO ALTO AND INTEGRATED DESIGN 360, LLC. dba ID360 This Amendment No. 1 (this “Amendment”) to Contract No. C21181223A (the “Contract” as defined below) is entered into as of June 3, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and INTEGRATED DESIGN 360, LLC. dba ID360, a California corporation, located at 809 Laurel Street, #308, San Carlos, California 94070 (“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 updates to Title 16 of the Palo Alto Municipal Code, as detailed therein. B. The Parties now wish to amend the Contract in order to extend the term by six months, increase compensation by One Hundred Thousand Dollars ($100,000) from Seven Hundred Fifty Thousand Dollars ($750,000) to a new total not to exceed compensation of Eight Hundred Fifty Thousand Dollars ($850,000). 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. C21181223A between CONSULTANT and CITY, dated May 14, 2021. 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 December 31,2024, unless terminated earlier pursuant to Section 19 (Termination) 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 shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Eight Hundred Fifty Thousand Dollars ($850,000). The hourly schedule of rates, if DocuSign Envelope ID: 3F6B68A5-9835-4FB2-A5A2-B09F94B5AB41 Vers.: Aug. 5, 2019 Page 2 of 6 applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. SECTION 4. Section 12 SUBCONTRACTING of the Contract is hereby amended to read as follows: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that additional subcontractors may be used to complete the Services with prior approval, documented in writing, including Scope of Services, cost, and schedule of performances. The use of subcontractors cannot increase compensation pursuant to Section 4 of this Agreement. CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee SECTION 5. The following exhibit(s) to the Contract is/are hereby amended, as indicated below, to read as set forth in the attachment(s) to this Amendment, which are hereby incorporated in full into this Amendment and into the Contract by this reference: b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS. c. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS. d. Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES PREVIOUS SECTION 5. 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 6. 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: 3F6B68A5-9835-4FB2-A5A2-B09F94B5AB41 Vers.: Aug. 5, 2019 Page 3 of 6 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 INTEGRATED DESIGN 360, LLC Officer 1 By: Name: Melanie Jacobson Title: Principal melanie@integrateddesign360.com Officer 2 By: Name: Cindy Mack Title: Administrative Leader cindy@integrateddesign360.com Attachments: Exhibit B – Schedule of Performance, Amendment No.1 (Amended, Replaces Previous) Exhibit C – Compensation, Amendment No.1 (Amended, Replaces Previous) Exhibit C-1 – Schedule of Rates, Amendment No. (Amended, Replaces Previous) DocuSign Envelope ID: 3F6B68A5-9835-4FB2-A5A2-B09F94B5AB41 Vers.: Aug. 5, 2019 Page 4 of 6 EXHIBIT B SCHEDULE OF PERFORMANCE, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY. Tasks Description Completion Number of Days/Weeks (as specified below) from NTP Task 1 Ongoing Development and Administration of the Green Building and Energy Reach Code Program December 31, 2024 Task 2 Sustainability and Program Metrics Management and Reporting December 31, 2024 Task 3 Green Building and Energy Reach Code Training December 31, 2024 Task 4 Green Building and Energy Reach Code Policy Review and Creation December 31, 2024 Task 5 Ongoing Development and Administration of the Green Building Special Inspector Program December 31, 2024 Task 6 Sustainability Implementation Plan Support December 31, 2024 Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. DocuSign Envelope ID: 3F6B68A5-9835-4FB2-A5A2-B09F94B5AB41 Vers.: Aug. 5, 2019 Page 5 of 6 EXHIBIT C COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. BUDGET SCHEDULE TASK NOT TO EXCEED AMOUNT Task 1 to Task 6 $850,000.00 Sub-total for Services $850,000.00 Reimbursable Expenses (if any) $0.00 Total for Services and Reimbursable Expenses $850,000.00 Additional Services (if any, per Section 4) $0.00 Maximum Total Compensation $850,000.00 REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00. DocuSign Envelope ID: 3F6B68A5-9835-4FB2-A5A2-B09F94B5AB41 Vers.: Aug. 5, 2019 Page 6 of 6 EXHIBIT C-1 SCHEDULE OF RATES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT’s schedule of rates is as follows: ID360 Rates: Position/Title FY2022 Rates FY2023 Rates FY2024 Rates FY2025 Rates Principal $205.00 $212.00 $218.00 $246.00 Program Manager $168.00 $173.00 $178.00 $201.00 Project Manager II $130.00 $134.00 $138.00 Not Applicable Project Manager I $107.00 $110.00 $113.00 Not Applicable Technician $91.00 $93.00 $96.00 Not Applicable Position/Title FY2025 Rates Associate Principal $232.00 Project Manager $128.00 Associate $109.00 CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed amount as noted in Section 4 of the Agreement. CONSULTANT will apply a twenty percent (20%) mark up to SUBCONTRACTOR invoices. DocuSign Envelope ID: 3F6B68A5-9835-4FB2-A5A2-B09F94B5AB41 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.