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
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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.)
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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)
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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.
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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.
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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.
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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.