HomeMy WebLinkAboutStaff Report 2405-3016CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, June 17, 2024
Council Chambers & Hybrid
4:00 PM
Agenda Item
11.Approval of Contract Amendment Number 1 to Contract C24189570 with Downtown
Streets Team in the Amount of $548,958 to Combine Contracts to Increase Operational
Efficiency for a Revised Total Not-to-Exceed Amount of $1.1 Million Over Three Years ;
CEQA Status: Not a Project
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: June 17, 2024
Report #:2405-3016
TITLE
Approval of Contract Amendment Number 1 to Contract C24189570 with Downtown Streets
Team in the Amount of $548,958 to Combine Contracts to Increase Operational Efficiency for a
Revised Total Not-to-Exceed Amount of $1.1 Million Over Three Years ; CEQA Status: Not a
Project
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their
designee to execute Amendment Number 1 to Contract C24189570 with Downtown Streets
Team (Attachment A) in the amount of $548,958 to combine service contracts and increase
operational efficiency. This amendment results in a revised total contract not-to-exceed
amount of $1,077,367.
EXECUTIVE SUMMARY
City staff is recommending amending the C24189570 (cleaning services) agreement to combine
two existing contracts with this service provider into one contract to increase operational
efficiency. This results in increasing the not-to-exceed amount by $548,958 to $1,077,367 to
cover the three years of job readiness training and employment services scope previously under
a separate contract.
BACKGROUND
The Downtown Streets Team, a program founded in Palo Alto, provides street cleaning services
in cities throughout the Bay Area, conducted by individuals who are homeless or in danger of
becoming homeless, while also providing those individuals job training, employment
opportunities, and case management.
The University Avenue Business District attracts visitors, shoppers, diners, local residents, and
employees who expect a positive experience. To ensure this experience remains positive, the
district must be maintained in a safe, clean, and appealing manner. Cleanliness is essential to
maintaining a healthy and vibrant economic environment.
The City of Palo Alto has partnered with Downtown Streets Team since 2006. In 2010,
University Avenue stakeholders, which included the Palo Alto Business Improvement District
(BID) and Palo Alto Downtown Professional and Business Association (PADPBA), proposed a
combination of enhanced services that would raise the standards of cleanliness in the
University Avenue Business District. The enhanced services included reducing trash from
overflowing garbage receptacles, reporting graffiti and vandalism, removing litter in the
alleyways and in the five parking structures (S & L, R, J, Q and Civic Center), and reporting
suspicious vehicles and/or activities.
In 2020, the City developed the Car-Free Streets Program in response to the pandemic.
Businesses and residents have raised concerns regarding the cleanliness of the Car-Free Streets
locations (Ramona Street and California Avenue).
Besides having participants engage in cleaning services, the DST model strives to reduce
homelessness by encouraging participants to take an active role in their own development,
model positive behavior, and create long-term solutions for their participants. This portion of
the DST model incorporates both job readiness training and employment opportunities,
services previously provided under contract C23188369. In return, participants can work with a
case manager to obtain housing and other supportive services. Each participant is evaluated on
their individual performance and recognized for their accomplishments. The skills acquired
through this program can then be used to seek further employment.
The current not-to-exceed amount for Contract C24189570 (cleaning services) is $548,958 with
an expiration date of January 11, 2027.1 The current not-to-exceed amount for Contract
C23188369 (job readiness and employment opportunities) is $163,340 and set to expire shortly,
on June 30, 2024.2
Additionally, DST was awarded a Human Services Resource Allocation Process (HSRAP) grant in
the amount of $82,717 for peer-to-peer outreach with an expiration date of June 30, 2025.
HSRAP is a competitive process and non-profits propose various activities each granting a
period and are awarded varying sums of money. This differs from both current and historic
cleaning services contracts and job readiness and employment opportunities contracts, which
have been consistent over time and align with the integral program components that DST
provides to the Palo Alto community.
Under Palo Alto Municipal Code (PAMC) 2.30.360(b)(2), the City Manager has approved an
exemption from competitive solicitation as DST is the only local all-in-one service provider that
employs individuals who are homeless and at-risk of homelessness, providing job training and
1 City Council Staff Report, February 12, 2024,
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=4177&meetingTemplateType=2&comp
iledMeetingDocumentId=9079
2 City Council Staff Report, June 19, 2023,
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=2632&meetingTemplateType=2.
employment opportunities, case management and outreach while also providing cleaning
services.
ANALYSIS
The City has previously held separate contracts for (1) street cleaning and (2) job training and
employment opportunities with different contract managers, expiration dates, and
performance measures. As Downtown Streets Team does not operate these as discrete
activities, but as integrated aspects of its program, it can be challenging to oversee and manage
as separate contracts. Having contracts managed by different people in different departments
and different end dates adds layers of administrative work, with each administrator only
“seeing” a portion of the service delivery. Amending the existing street cleaning contract to
incorporate the other program aspects allows the City to better manage this relationship and
eliminate duplicative administrative work. It also enables the parties to negotiate contract
terms with a clearer understanding of the total dollar amount being spent.
Additionally, after some comments and questions from the public and at Council, City staff
closely monitored DST service provision, reviewed DST contracts in Palo Alto and other cities
and consulted with colleagues. From this effort, staff identified opportunities for clarifying the
contract language relating to street cleaning tasks and improving performance measures. The
proposed amended contract includes these clarifications and improved performance measures.
FISCAL/RESOURCE IMPACT
The recommended amendment reduces administrative burdens by decreasing contract
processing and staff time associated with multiple contracts leading to more efficient vendor
management. Funding for this amendment is included in the FY 2025 Proposed Operating
Budget as part of the non-departmental section of the General Fund. No additional resources
are required at this time. Funding for future years will be subject to the appropriation of funds
through the annual budget process.
STAKEHOLDER ENGAGEMENT
City staff coordinated meetings with all department staff who have managed agreements with
DST, including staff from Community Services, Planning and Development Services, Public
Works, and Economic Development to understand the various contracts and related
experiences.
Staff has also held discussions with University Avenue Business District Stakeholders regarding
the efforts of Downtown Streets Team to understand areas of success and potential areas for
improvement. Former DST staff, Santa Clara County staff, and colleagues from other cities
were contacted to discuss their experiences and what services DST provided for their respective
organizations.
ENVIRONMENTAL REVIEW
The approval of this amendment is CEQA-exempt pursuant to CEQA Guidelines Section
15061(b)(3) because it can be seen with certainty that there is no possibility of a significant
effect on the environment.
ATTACHMENTS
Attachment A: Downtown Streets Team C24189570 Amendment #1
APPROVED BY:
Ed Shikada, City Manager
Vers.: Aug. 5, 2019
Page 1 of 14
AMENDMENT NO. 1 TO CONTRACT NO. C24189570
BETWEEN THE CITY OF PALO ALTO AND
DOWNTOWN STREETS, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C24189570 (the “Contract”
as defined below) is entered into as of June 17, 2024, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and DOWNTOWN STREETS, INC., a California
public benefit non-profit corporation, located at 1671 The Alameda, Suite 301, San Jose, CA
95126 (“CONTRACTOR”). CITY and [CONSULTANT or CONTRACTOR] 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 Street Cleaning Services, as detailed therein.
B. The Parties now wish to amend the Contract in order to (1) increase the not to
exceed total by an additional Five Hundred Forty-Eight Thousand Nine Hundred Fifty-Eight Dollars
($548,958) to a new not to exceed amount of One Million Seventy-Seven Thousand Three
Hundred Sixty-Seven dollars and Nine Cents ($1,077,367.09), (2) update Exhibit A Scope of Work
to incorporate provision of job readiness training and employment opportunities, (3) update
Exhibit B Schedule of Performance and (4) add Exhibit C-1 Professional Services Type Payments
for job readiness training and employment opportunities, as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C24189570
between CONSULTANT and CITY, dated December 11, 2023, as amended
by:
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 5: COMPENSATION FOR ORIGINAL TERM” of the Contract is hereby
amended to read as follows:
The total maximum lump sum compensation of dollars ($); OR
The sum of dollars ($ ) per hour, not to exceed a total maximum
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compensation amount of dollars ($ ); OR
A sum calculated in accordance with the fee schedule set forth at Exhibit C and
Exhibit C-1, not to exceed a total maximum compensation amount of One
Million Seventy-Seven Thousand Three Hundred Sixty-Seven Dollars and Nine
Cents($1,077,367.09).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed the
total maximum compensation set forth above. Any hours worked or services performed
by CONTRACTOR for which payment would result in a total exceeding the maximum
amount of compensation set forth above for performance of the Services shall be at no
cost to CITY.
CITY has set aside the sum of dollars ($ ) for Additional Services.
CONTRACTOR shall provide Additional Services only by advanced, written
authorization from the City Manager or designee. CONTRACTOR, at the CITY’s
request, shall submit a detailed written proposal including a description of the
scope of services, schedule, level of effort, and CONTRACTOR’s proposed
maximum compensation, including reimbursable expense, for such services.
Compensation shall be based on the hourly rates set forth above or in Exhibit C
(whichever is applicable), or if such rates are not applicable, a negotiated lump
sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional
Services for which payment would exceed the amount set forth above for
Additional Services. Payment for Additional Services is subject to all requirements
and restrictions in this Agreement.
SECTION 3. The following exhibit(s) to the Contract is/are hereby amended or added, as
indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are
hereby incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO. 1”,
AMENDED, REPLACES PREVIOUS.
b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1”,
AMENDED, REPLACES PREVIOUS.
c. Exhibit “C-1” entitled “PROFESSIONAL SERVICES TYPE OF PAYMENTS (JOB
READINESS, AMENDMENT NO. 1”, ADDED
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
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SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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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
DOWNTOWN STREETS, INC.
Officer 1
By:
Name: Julie Gardner
Title: CEO
Officer 2
By:
Name: Marina Peterson
Title: CFO
Attachments:
Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS.
Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1”, AMENDED, REPLACES
PREVIOUS.
Exhibit “C-1” entitled “PROFESSIONAL SERVICES TYPE OF PAYMENT (JOB READINESS),
AMENDMENT NO. 1”, ADDED
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EXHIBIT A
SCOPE OF SERVICES, AMENDMENT NO. 1
AMENDED, AND REPLACES PREVIOUS
CONTRACTOR shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”.
CONTRACTOR shall 1.) Provide unhoused and/or extremely low-income individuals with job
readiness training and employment opportunities through job search skill instruction,
supportive, services, and direct employment placements with partnering companies and 2),
perform Street Cleaning Services. The scope of Street Cleaning Services shall include, but not be
limited to the tasks detailed under Tasks 1 and 2 for cleaning of the City’s five parking garages,
along University Avenue, and portions of Ramona Street, California Avenue , and Ash Street,
cleaning Downtown alleyways, reporting suspicious persons and/or vehicles to the proper
authorities, reporting safety hazards such as raised sidewalks and lights that are out, and
reporting cases of vandalism and graffiti.
CONTRACTOR will provide tangible local employment opportunities for motivated, previously
unhoused , or at‐risk of homeless individuals who have completed the CONSULTANT’s
Employment Development Course.
CONTRACTOR shall be responsible for providing all training, labor, and equipment required to
perform the tasks as specified in the contract, including the appropriate training and Personal
Protective Equipment (PPE) required for the collection of syringes (sharps). The CITY will
provide sharp waste containers and dispose of those containers once filled. It is the
responsibility of the CONTRACTOR to inform the Project Manager when sharp waste containers
are full and need to be replaced and disposed.
This program shall also provide counseling and training to assist participants to develop a plan
for self-sustainability by procuring housing or shelter, address physical/mental issues, receive
transportation assistance, or providing other services. Training will primarily focus on building
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successful work habits, job readiness skill, resume writing, and employment search skills.
CONTRACTOR shall use employees to encourage other unhoused individuals to explore other
options and explaining all of the services that are available to them.
Downtown Streets Team shall provide semi-annual activity reports related to this Scope of
Services, detailing adherence to Schedule of Performance, for the periods ending December 31
and June 30, within fifteen days after these dates. Each report shall cover the preceding six
month period, and other such information as the Project Manager may request, but at
minimum, including the below-listed stats. The final report shall be prepared in the form agreed
upon by the City and Downtown Streets Team.
CONTRACTOR shall provide, at minimum, the following information in its semi-annual activity
reports:
• Number of sharps (syringes) collected
• Amount of debris removed
• Total number of current team members
• Total number of team members with employment
• Total number of team members housed
• Total number of team members who maintained employment
• Total number of volunteer hours
• Number of job placements
• Participants trained in job search
• Recipients of supportive services
• Unduplicated clients
• Expense report - program delivery in
o Salaries/employee benefits
o Overhead
o Rent/insurance
o Marketing/PR/Supplies
o Communications
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o Mileage
• Job placement by income
o Extremely low income
o Very low income
o Low income
o Moderate income
o Above moderate income
• Number of job placement by age group
o Youth (0 to 18)
o Adults (19-62)
o Seniors (63+)
o Disabled Individuals
• Clients by race/ethnicity
Task 1 – Street Cleaning Services
CONTRACTOR shall perform Street Cleaning Services, which includes cleaning of the City’s
five parking garages (S & L, R, J, Q and Civic Center), sidewalks, and alleyways in the
Downtown Palo Alto area. These services shall be performed according to the attached
schedule (Attachment B) and shall be performed at a minimum by a two-person crew. The
level of service provided shall include, but not be limited to, picking up litter, reducing trash
from overflowing trash receptacles, wiping down garbage can lids, reporting safety hazards
such as raised sidewalks and lights that are out, and reporting cases of vandalism and graffiti.
CONTRACTOR will wipe down the top of newspaper racks at least every two weeks.
CONTRACTOR shall be responsible for providing all training and equipment required to
perform the tasks as specified in the contract, including but not limited to, appropriate attire or
uniform with identifiable company logo, the appropriate training, and Personal Protective
Equipment (PPE) required for the collection of syringes (sharps). The CITY will provide sharp
waste containers and dispose of those containers once filled. It is the responsibility of the
CONTRACTOR to inform the Project Manager when sharp waste containers are full and need to
be replaced and disposed. CONTRACTOR shall also, through the use of their employees,
encourage other unhoused individuals to explore other options, and to explain all of the
services that are available to unhoused individuals. CONTRACTOR shall send teams daily to Palo
Alto City Hall to conduct outreach, pick up trash, and ensure that no individuals are violating
Palo Alto City Policy 4-07/MGR – Conduct in City Facilities.
The Downtown Streets Team (DST) Project Manager shall also attend quarterly meetings with
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the City’s Project Manager when deemed necessary. CONTRACTOR shall provide a monthly
report to Project Manager that reports weekly data for Task 1 and Task 2 separately on the
following:
• Number of Team members on morning shift and number of Team Members of
afternoon shift.
• Number of 5-gallon buckets of debris collected and disposed of per shift.
• Total number of gallons collected and disposed.
• Self-certification that all tasks were completed at each location per the schedule and
scope of work
• Number of homeless individuals found in each of the garages.
• Total number of interactions with homeless individuals.
• Number of homeless individuals who report that they do not want to engage in any
services offered.
• And other pertinent information that conveys the barriers that unhoused individuals
face in accessing, following up with and obtaining needed services.
• Include a monthly success story regarding their team members.
When requested, the DST Project Manager shall also attend monthly meetings with the Palo
Alto Downtown Business and Professional Association (PADBPA) to act as a liaison between
the business owners who have a vested interest in the services being provided, City staff who
manage the contract, and the Downtown Streets Team who runs the program. The DST Project
Manager shall make a brief presentation at these monthly PADBPA meetings to relay what
efforts have been undertaken since the last meeting.
Task 2– Car-Free Street Cleaning Services (Ramona Street and California Ave)
CONTRACTOR shall perform Street Cleaning Services in the Car-Free Streets portions of
Ramona St (from Hamilton Ave to University Ave) in downtown, and California Ave (from
El Camino Real to Birch St), plus a small portion of Ash Street (from Sherman Ave to
California Ave) within the California Ave Business District. These services shall be performed at
a minimum by a two-person crew. The level of services provided shall include, but not limited
to, picking up litter; removing leaves and debris from areas not accessible to street sweepers
(such as near gutters or tight corners); rearranging and resetting City-owned outdoor furniture
(such as small tables, foldable chairs, faux-carpeting, and game play areas); and ensuring
furniture is upright and clean (include cleaning and/or wiping down tables and chairs); reducing
trash from overflowing trash receptacles and wiping down garbage can lids along the Car-free
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streets; reporting safety hazards such as raised sidewalks and lights that are out; and reporting
cases of vandalism and graffiti. Tops of newspaper racks are to be wiped down every 2 weeks.
CONTRACTOR shall be responsible for providing all training and equipment required to
perform the tasks as specified in the contract, including but not limited to, appropriate attire or
uniform with identifiable company logo, the appropriate training, and Personal Protective
Equipment (PPE) required for the collection of syringes (sharps). The CITY will provide sharp
waste containers and dispose of those containers once filled. It is the responsibility of the
CONTRACTOR to inform the Project Manager when sharp waste containers are full and need to
be replaced and disposed.
The CITY reserves the right and at its sole discretion, to cancel Task 2 service at any time. The
CITY will provide CONTRACTOR a minimum of two weeks advance notice prior to initiating or
canceling these services.
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EXHIBIT B
SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1
AMENDED, AND REPLACES PREVIOUS
CONTRACTOR shall not perform services in cases of inclement weather (as determined by City
staff and the Downtown Streets Team Project Manager) or during observed DST holidays listed
below. The schedule and tasks can be modified during the term of the contract based on
operational needs through a written mutual agreement between CITY and the CONTRACTOR.
Tasks Schedule
Clean and conduct outreach along alleyways
(Downtown North and South), University
Avenue, Downtown South/City Hall
Daily Monday-Friday and Weekends, see
Detailed Schedule
Clean and conduct outreach of garage Twice Daily Weekends, see Detailed Schedule
Clean and conduct outreach of garage Twice Daily Monday-Friday, see Detailed
Schedule
Attain 15 job placements of unduplicated
individuals, through job training/employment
readiness classes and outreach to local
employers
Annual
Train 15 participants in job search Annual
Recruit 15 local employers to create/hold
positions or expedite the hiring process for
program participants
Annual
Achieve 75% of employers retaining new
employees beyond three months
Annual
Detailed Schedule:
Task 1 – Street Cleaning Services Schedule:
DAY TIME ACTIVITIES
Monday, Tuesday,
Wednesday, and
Friday
8-9 AM
9 -10 AM
10- 10:15 AM
10:15--11 AM
11-12 AM
12 PM
12-1 PM
1-2:30 PM
2:30-2:45 PM
2:45-4 PM
Garage cleaning and outreach
Alleyways (Downtown North and South) Shift change box
Break
University Ave
Downtown South/City Hall
Shift changes at box
Downtown North
Garage cleaning and outreach
Break
Garage cleaning and outreach
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DAY TIME ACTIVITIES
4 PM Dismissal at box
Thursday 8-8:30 AM
8:30-9 AM
9-10 AM
11:15-1 PM
Garage cleaning and outreach
Downtown South/City Hall and Alleyways
Downtown North and University Ave Alleyways
Lead Meeting and Success Meeting
Saturday and Sunday 9-10 AM
10-10:30 AM
10:30-11:30 AM
11:30-11:45 AM
11:45-1 PM
1 PM
Garage cleaning and outreach
Downtown South/City Hall/University Ave
Downtown North
Break
Garage cleaning and outreach
Dismissal at box
Task 2 Car-Free Street Cleaning Services (Ramona St and California Ave) Schedule:
DAY TIME ACTIVITIES
Monday 8-10AM Car-free street portion of California Ave (which
includes Ash St) and Ramona St (Ramona St. could be
done as part of Task 1 schedule).
Wednesday 8-10AM Car-free street portion of California Ave (which
includes Ash St) and Ramona St (Ramona St. could be
done as part of Task 1 schedule).
Friday 8-10AM Car-free street portion of California Ave (which
includes Ash St) and Ramona St (Ramona St. could be
done as part of Task 1 schedule).
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Actual dates will vary depending on the year. The listed holidays will be observed even if they
fall on a date that is different than the dates listed above.*
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EXHIBIT C-1
PROFESSIONAL SERVICES TYPE OF PAYMENTS (JOB READINESS), AMENDMENT NO.1
ADDED
CITY agrees to compensate CONSULTANT for the Services performed in accordance with the
terms and conditions of this Agreement, including Services, any specified reimbursable expenses,
and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate
schedule attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified
reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the
amount(s) stated 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:
Description Total
Employee Benefits/Taxes $164,900
Rent & Utilities $16,305
Communications, Mileage, and Supplies $1,781
TOTAL EXPENSES PER ANNUM $182,986
TOTAL NOT TO EXCEED $548,958
REIMBURSABLE EXPENSES
Unless specifically noted in Exhibit A, Scope of Services, the administrative, overhead, secretarial
time or secretarial overtime, word processing, photocopying, in-house printing, insurance, and
other ordinary business expenses are included within the scope of payment for services and are
not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable
expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: $0.00
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written authorization from
the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed
written proposal including a description of the scope of services, schedule, level of effort, and
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CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such
services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and
maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project
Manager and CONSULTANT prior to commencement of the services. Payment for additional
services is subject to all requirements and restrictions in this Agreement.
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