Palo Alto City Council
February 28, 2022

1 City Council
Special Meeting
Monday, February 28, 2022
6:00 PM
Council Chambers & Virtual

AMENDED AGENDA
Supplemental Reports Added
Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda.

HOW TO PARTICIPATE

VIRTUAL PARTICIPATION
CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900-6833
The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and s t r e a m e d t o Midpen Media Center at https://midpenmedia.org.

IN PERSON PARTICIPATION REQUIREMENT:
• Provide Proof of Vaccination or negative COVID-19 test (taken within 48 hours) and a photo ID
• Wear a mask at all times
• Maintain social distancing
• If you cannot or do not wish to comply, you can still participate virtually

TIME ESTIMATES
Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.

PUBLIC COMMENTS
Public Comments will be accepted both in person and via Zoom meeting. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [email protected] and will be provided to the Council and available for inspection on the City’s website. Please clearly i ndicate which agenda item you are referencing in your email subject line.

CALL TO ORDER
2 Special Meeting February 28, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

STUDY SESSION

AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:00 – 6:20 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.

CONSENT CALENDAR (6:20 – 6:30 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.

2. Approve Minutes from the February 5, 2022 City Council Retreat, February 7, 2022 City Council Meeting, and the February 14, 2022 City Council Meeting

3. Adoption of a Resolution to Author ize the City Manager to Apply for an SB1383 Local Assistance Program Grant from the California Department of Resources Recycling and Recovery (CalRecycle) and Execute Related Program Agreements and Amendments

4. Appointment of 2022 Emergency Standby Council Late Packet Report

5. Approval for the Renewal of the Agreement Between the City of Palo Alto and the Palo Alto Art Center Foundation for Mutual Cooperation and Support to Facilitate the Foundation's Financial and Administrative Support of the City's Palo Alto Art Center

6. Approval of Amendment No. 2 to Professional Services Contract Number C20176858 Wit h Sandis Civil Engineers to Increase the Not - to-Exceed Compensation by $50,000 (to $171,000) and to Extend the Term of the Contract to October 2026 for the Completion of Final Plans and Design Support for the Churchill Avenue Enhanced Bikeway Project

7. Staff and Utilities Advisory Commission Recommend the Council Adopt a Resolution Amending Utilities Rule and Regulation 11 (Billing, Adjustments and Paymen t of Bills) to Set a $5,000 Limit on Fee -Free Credit Card Payments and Apply a Cost -Recovery Charge for Credit Card Payments in Excess of $5,000
Q&A
Q&A

1. Report and Discussion on Valley Water’s Purified Water Project Including Location of the Advanced Water Purification Facility at the Former Los Altos Treatment Plant Site, Reverse Osmosis Concentrate Management, Upcoming Agreements and Decisions
3 Special Meeting February 28, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

8. Approval of a Five -Year Contract C22181932 with Sierra Traffic Markings, Inc in the Amount of $850,000 to Pr ovide On -Call Minor Roadway Improvements

9. Approval of Contract C22182466 With Ranger Pipelines, Inc. in the Amount of $7,819,336 for Water Main Replacement Project 28 (WS - 14001) in the Barron Park, Oak Creek, Duveneck Francis, Charleston Meadows Neighborhoods and in the California Business District, and Authorization for the City Manager to Negotiate a nd Execute Related Change Orders Not -to-Exceed $781,934 for a Total Not -to-Exceed Amount of $8,601,270

10. Approval of Contract No. C22182372 with CSW/S tuber-Stroeh Engineering Group Inc. in the Amount of $164,852 for Design Services for the University Av enue Streetscape Update Capital Improvement Program Project, PE -21004 and Approval of Budget Amendments in the Capital Improvement Fund and the Stanford University Medical Center (SUMC) Fund
CITY MANAGER COMMENTS (6:30 – 6:50 PM)
BREAK (6:50 – 7:00 PM)

ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters.

11. PUBLIC HEARING: Objections to Weed Abatement and Adoption of a Resolution Ordering Weed Nuisance Abated (7:00 – 7:15 PM)

12. Discussion and Direction on Draft Response to the Santa Clara County Civil Grand Jury Report Published December 16, 2021 Pertaining to Affordable Housing and Potential Direction to Staff on Related Policies (7:15 – 9:00 PM) Supplemental Memo Added

13. California Avenue and Ramona Street Temporary and Permanent Closure: Direct Staff to Issue RFP for a Feasibility Study and Return for Contract Approval, and Provide Direction to Staff on Activities and Programming (Continued from the February 7, 2022 meeting) (9:00 – 9:45 PM)

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
Members of the public may not speak to the item(s)
Q&A
Q&A
Q&A
Public Comment
Presentation
4 Special Meeting February 28, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

ADJOURNMENT

OTHER INFORMATION
Standing Committee Meetings
Finance Committee Meeting March 1, 2021
Public Letters to Council
Schedule of Meetings

AMENDED AGENDA ITEMS
Items that have been added/modified from the original publication of the agenda are listed below. Any corresponding materials are appended to the end of the initial packet. If full it ems have been added to the Agenda, they will be denoted with a number staring with AA, meaning Amended Agenda item.

4. Appointment of 2022 Emergency Standby Council
Late Packet Report Added

12. Discussion and Direction on Draft Response to the Santa Clara County Civil Grand Jury Report Published December 16, 2021 Pertaining to Affordable Housing and Potential Direction to Staff on Related Policies Supplemental Memo Added
5 Special Meeting February 28, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

PUBLIC COMMENT INSTRUCTIONS

Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.

1. Written public comments may be submitted by email to [email protected].

2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom -based mee ting. Please read the following instructions carefully.

A. You may download the Zoom client or connect to the meeting in - browser. If using you r browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer.

B. You may be asked to enter an email address and na me. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

C. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in t urn. Speakers will be notified shortly before they are called to speak.

D. When called, please limit your remarks to the time limit allotted.

E. A timer will be shown on the computer to help keep track of your comments.

3. Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above.

4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 o n your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You wil l be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted.

CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833

City of Palo Alto (ID # 13951)
City Council Staff Report
Meeting Date: 2/28/2022
City of Palo Alto Page 1
Title: Report and Discussion on Valley Water’s Purified Water Project Including Location of the Advanced Water Purification Facility at the Former Los Altos Treatment Plant Site, Reverse Osmosis Concentrate Management, Upcoming Agreements and Decisions
From: City Manager
Lead Department: Public Works
Recommendation
This is a study session, and no action is required from Council at this time.

Background
The purpose of this study session is to provide the Council with a status update on the City’s efforts with Valley Water and the City of Mountain View to improve the quality of recycled water produced by the City and increase water reuse at the regional level.

Local Salt Removal Facility: Improving Existing Recycled Water Quality at the RWQCP The R egional Water Quality Control Plant (RWQCP) treats wastewater from six communitie s, including Palo Alto. Currently, much of the treated effluent is discharged into the Bay rather than being reused. The RWQCP produces and distributes approximately 230 million gallons per year of tertiary -treated recycled water to the City of Mountain View, several City -owned parks and facilities, and a commercial truck fill standpipe at the RWQCP . Following public concerns regarding the irrigation of redwood trees and other salt-sensitive species with recycled water, the City prepared an Environmental Impact Report (EIR) focused on water quality issues and salinity impacts. On January 25, 2010, Council approved the Recycled Water Salinity Reduction Policy ( Staff Report ID #111:10, Resolution 9035 ), including a goal of reducing the recycled water total dissolved solids level to 600 parts per million. In 2017, Valley Water, Palo Alto, and Mountain View finalized a feasibility study and the preliminary design report for a local s alt removal facility (Staff Report ID #10627) .

Highly treated water produce d by the local salt removal facility would benefit landscapes currently irrigated with recycled water in Palo Alto, enable Palo Alto to expand its non -potable distribution system, and/or provide a first step toward small -scale potable water production for direct or indirect potable reuse in Palo Alto. The local salt removal project was estimated in 2017 to cost approximately $20,000,000. Under the terms of the Agreement, Valley Water will 1 Packet Pg. 6

City of Palo Alto Page 2

contribute $16,000,000 ( Staff Report ID #10627 ) toward the design and construction of the facility with the balance split between Palo Alto and Moun tain View at 25% and 75%, respectively.

Partnership Agreement to Advance Resilient Water Reuse Programs in Santa Clara County In order to increase the quality of recycled water in Palo Alto and increase water reuse in Santa Clara County, a Partnership Ag reement to Advance Resilient Water Reuse Programs in Santa Clara County between Valley Water and the Cities of Palo Alto and Mountain View (Agreement) was executed at the end of 2019 (Staff Report ID # 10627). The Agreement includes three major components: Partial funding by Valley Water ($16 million) for a local salt removal facilit y at RWQCP; a Valley Water option to use about half of the effluent from the RWQCP to be treated at a regional purification facility and used elsewhere in the county ; and a water supply option for the cities of Palo Alto and Mountain View to request additi onal water supply if needed. Palo Alto agreed to assist with siting a regional purification facility in the city and to make best efforts to accommodate reverse osmosis concentrate (ROC) discharge to the wastewater treatment plant’s outfall. Per the terms of the Agreement, Valley Water has been making annual payments of $200,000 since 2020 for the effluent transfer option. Valley Water will provide an annual payment of $1 ,000,000 for the effluent. Another collaborative effort between Valley Water and Palo A lto was the Northwest County Recycled Water Strategic Plan (Strategic Plan), completed in 2019 and presented to Council on March 2, 2020 (Staff Report ID # 10913 ). The Strategic Plan included a preliminary design and business plan for a recycled water distribution system expansion to customers in the Stanford Research Park . Variations of the project, contemplating recycled water service to parts of Los Altos, Los Altos Hills, Mountain View, and East Palo Alto, were also evaluated and compared to potable reuse alternatives.

Proposed Regional Purified Water Project at the Former Los Altos Treatment Plant Site The Purified Water Project is part of Valley Water's water resources strategy to provide a reliable water supply from a diversity of sources consistent with its Water Supply Master Plan 2040. Valley Water’s objectives are to:
• Implement an indirect potable reuse supply project that provides 10 million gallons per day (MGD) production capacity (11,200 AFY, or acre-feet per year) of sustainable water supply for long-term and future demands.
• Design-construct-operate the project so that it reduces or minimizes environmental impacts.
• Deliver the project in a manner that is cost -effective and provides value to the ratepayers.

The Purified Water Project would include the construction of a new advanced regional water purification facility, pump station , and conveyance pipelines . Conveyance will be needed to move effluent from the RWQCP to the purification facility and from the fac ility to Valley Water’s existing Los Gatos Recharge System complex located in the City of Campbell. The Valley 1 Packet Pg. 7

City of Palo Alto Page 3

Water Board of Directors directed Valley Water staff in December 2021 to finalize agreements with Palo Alto to locate the facility at the former Los Altos Treatment Plant (LATP) site in Palo Alto.

Valley Water plans to implement the Purified Water Project via a Public-Private Partnership (P3) to harness private sector innovation. The benefits to Palo Alto include payments for treated wastewater and a land lease, as well as increased use of treated wastewater to further regional sustainability and climate adaptation goals.

Discussion
The Project includes several components and will require extensive coordination between the participating agencies. The following table outlines the components and the responsibilities of Valley Water and Palo Alto, respectively.

Project Component Valley Water Role Palo Alto Role Mountain View Role Local Salt Removal
Facility
-Funding
-Support Valley Water’s
goal to increase recycled
water use within the
County
-Design, construction,
operation, and
maintenance; Distribute
enhanced recycled water
-Funding
-offtake treated water
Regional Water Purification Facility

• Regional Water
Purification
Facility
-Funding, design,
construction, operation,
and maintenance of
project
-Provide effluent

-Receive and discharge
ROC
NA
• Site Location -Environmental review
and mitigation including
clean-up; wetland
mitigation
-Design
-Lessee for LATP site
-Property Owner
-Negotiate lease
agreement with Valley
Water
NA
• Pump Station Design, construction,
operation and
maintenance
-Designate location
-Negotiate lease and
operations and
maintenance agreement
with Valley Water
NA
• Conveyance
system
Funding, design, and
construction
Review and approval Review and approval
• Reverse -Co-negotiate with -Co-negotiate with NA
1 Packet Pg. 8

City of Palo Alto Page 4

Project Component Valley Water Role Palo Alto Role Mountain View Role Osmosis
Concentrate
(ROC)
regulators to discharge
at Palo Alto outfall
location
-Assume liability
associated with
discharge of ROC
regulators to discharge at
Palo Alto outfall location
-Determine where ROC will
enter effluent
Regulatory approvals Lead agency on permits
for the Regional
Purification Facility
Support Valley Water
efforts on receiving
regulatory approval
specifically from the
Regional Water Quality
Control Board
NA

Local Salt Removal Facility at the RWQCP
In 2021, the City of Palo Alto hired Black & Veatch to design the local salt removal facility (Staff Report ID # 11782 ). Re cently, staff received a cost estimate for the 30% design that is significantly higher than the original estimate developed in in 2017 . A comparison of the two estimates is shown in th e table below:

Table 1: SRF Application and 30% Design Cost Estimates
Estimate
SRF Application
(2017)
(10% Project
Definition)
B&V Design Submittal
(2021)
(30% Project
Definition)
Facility 1.125 MGD AWPS 1.125 MGD AWPS
Indexed Dollar Value 2020 2023
Construction Costs
Direct and Contractor Costs $13,904,000 $26,938,000
Design Contingency and Market Volatility $4,900,800 $9,052,000 Escalation $698,200 $3,492,000
Estimated Bid Price $19,503,000 $39,481,000
Other Project Costs
Owner Controlled Change Order
Contingency, Engineering Services,
Construction Management, and Program
Management
$2,850,000 $11,908,000
Total Project Costs $22,353,000 $51,390,000
AACE Estimate Class (Anticipated Bid Price
Accuracy) Class 3 (-20% to +30%) Class 4 (-30% to 50%)
1 Packet Pg. 9

City of Palo Alto Page 5

The updated cost estimate from Black & Veatch reflects th e volatility in construction prices .

Direct and construction costs include a 28% rise in material costs between April 2020 and August 2021. The 30% cost estimate includes some cost mark-ups that staff believes may result in an overstated total project cost, but it is clear that the cost will increase dramatically in comparison to the 10% project definition estimate. In May 2022, Black & Veatch will provide an updated cost estimate with the 60% design. Staff and the program management consultant will work closely with Black & Veatch to ensure fuller agreement on the resulting updated cost estimate. Because this project received some funding by Valley Water ($16 million ), the remainder of the project will be funded three quarters by Mountain View (approximately $26 million) and one quarter by Palo Alto (approximately $8 million) if the project moves forward .

Mountain View and Valley Water staff are part of the review proc ess during the design of this project. The 90% design and cost estimate is expected by the end of September 2022 , and the cost estimate will be evaluated prior to moving forward with construction . Staff will return to Council to discuss next steps and potential options before proceeding.

Site Location and Lease of the Regional Water Purification Facility The proposed site for the regional water purification facility in Palo Alto is the former LATP Area B site located at the end of San Antonio Road in Pa lo Alto. The environmental work has included the delineation of existing wetlands . T he geotechnical work include d a field exploration to determine soil conditions at the site. Valley Water and Palo Alto are negotiating a land lease of the 6.4 -acre portion of the larger 13.2 -acre LATP for construction of the facility and siting of a pump station at the RWQCP . The lease agreement and operations and maintenance agreements will be presented to Council for consideration at a future date ; a Comprehensive Plan ame ndment for a portion of Area B site and a parcel subdivision will also be needed. The project will be subject to discretionary review by the Architectural Review Board.

Reverse Osmosis Concentrate Management
Reverse Osmosis is a process that removes minerals, viruses, and other constituents; the same technology is used to convert seawater into fresh drinking water. The average efficiency of Reverse Osmosis is 85 percent. That means, for every 100 gallons of treated wastewater feedwater, the purification fa cility will produce 85 gallons of purified water and 15 gallons of Reverse Osmosis Concentrate ( ROC). ROC contains all the dissolved constituents that were in the feedwater already with no chemicals or other constituents added.

The ROC produced at Valley Water’s existing Silicon Valley Advanced Water Purification Center in San Jos e is blended with the wastewater effluent at the San Jos e-Santa Clara Regional Wastewater Facility (RWF) and discharged to the Bay under their existing wastewater permit.

This a pproach has been used without any negative environmental impact since 2014. Valley Water is working closely with the Palo Alto RWQCP staff and the regulators on an approach for discharging the ROC from the regional water purification facility in Palo Alto in a similar fashion.

1 Packet Pg. 10

City of Palo Alto Page 6

The San Francisco Bay Regional Water Quality Control Board (Regional Board), which issues the RWQCP’s discharge permit, has been very supportive of the proposed Water Purification Project and this blending approach. The Regional Board has concurred with a suite of technical studies that will be conducted by Valley Water to inform the renewal of the RWQCP’s permit required to support the ROC discharge. The Regional Board will require further studies and may require pretreatment of ROC through horizontal levees. Palo Alto will ensure risk associated with the discharge of ROC will be borne by Valley Water in the final ROC management agreement.

Future Homekey Project
As part of the planning process for the Project, the City recognizes a need to coordinate the construction and operation of any new facilities with the emergency shelter project that is also planned for development on another part of the LATP site (part of Area C).

City Council adopted a resolution authorizing the City Man ager to apply for California Project Homekey funds in conjunction with LifeMoves for an 88 -unit emergency shelter project at a portion of the LATP Area C site (1237 North San Antonio Road) ( Staff Report ID #13595 and Staff Report ID #13702).

Staff is working with Life Moves and Valley Water to ensure that both projects are compatible on the site. Project Homekey will be located on part of Area C of the LATP site whereas the purification project will be located on Area B (Figure 1 and 2). Staff is working to find a suitable construction staging area outside of the LATP site, or Valley Water will stage within Area B for the purification project . The staging area issue will require further discussion during the project’s design stage.

Staff believes these two projects are compatible since, unlike the RWQCP, the purification plant does not emit any odors and is relatively quiet; the primary concern is impacts caused during construction of the purification facility. The Homekey project will be adjacent to the Greenwaste operation yard which is another commercial (sorting) facility.

1 Packet Pg. 11

City of Palo Alto Page 7

Figure 1. Current use of the old Los Altos Treatment Plant s ite; Greenwaste and Project Homekey will share Area C ; Area B is anticipated for the future Valley Water Regional Purification Facility.

1 Packet Pg. 12

City of Palo Alto Page 8

Figure 2. Potential future layout of Area C with Project Homekey and Greenwaste Yard.

Timeline
Valley Water’s procurement process is ongoing. A Request for Qualification (RFQ) was released , and eight statements of qualifications were submitted. A Request for Proposal s (RFP) and the draft EIR will be released in early 2022. Valley Water’s preferred tentative timeline is as follows:

• Early 2022: Decisions by City Council on the LATP site for the regional AWPF and Reverse Osmosis Concentrate management
• Mid 2022: Initiate Comprehensive Plan amendment and parcel subdivision (City) • Mid 2022: Final EIR (Valley Water) and approval of lease agreement (City) • Late 2022: Selection and contract award (Valley Water) • 2022 – 2024: Design by selected entity with Valley Water oversight and Palo Alto site and design review
• 2024-2028: Construction and beginning of operations

Resource Impact
City of Palo Alto staff resources are required in support of the Purified Water Project . The project requires review from the City for the siting of the facility at the Former Los Altos Treatment Plant site; installing a new pump station at the Regional Water Quality Control Plant; 1 Packet Pg. 13

City of Palo Alto Page 9

installation of underground pipes to convey the effluent and reverse osmosis concentrate back and forth to the RWQ CP; and the negotiation with the Regulatory Agency to ensure that Palo Alto can comply with future permit requi rements. Staff is working with Valley Water on a Reimbursement Agreement with Valley Water to assist staff to comply with the added workload associated with this project.

Once Valley Water executes the portion of the Partnership Agreement to start treating effluent from the RWQCP; RWQCP will receive approximately $1,000,000 per year that will be divided by flow share amongst the cities that have committed their effluent , which are currently, Palo Alto, Mountain View, and Los Altos.

Stakeholder Engagement
Palo Alto and Valley Water staff meet regularly to collaborate on outreach for the project.

Valley Water s taff conducted virtual tours of the Silicon Valley Advanced Water Purification Center for stakeholder groups including the Oshman Family Jewish Community Center, the Palo Alto Fellowship Forum, and a public tour in partnership with the Palo Alto Library. Valley Water staff also held informational meetings with environmental stakeholders in Mountain View and Palo Alto, and faith-based organizations such as Spark Church, First Congregational Church , and Etz Chayim. In addition, Valley Water presented a Purified Water Project update at the September 2021 Parks and Recreation Committee meeting and hosted a private tour for Palo Alto’s Public Works staff. Palo Alto is working with LifeMoves on applying for Project HomeKey funding to locate an emergency homeless shelter project on a portion of the LATP Area C site.

Palo Alto, Valley Water , and LifeMoves staff are collaborating to ensure compatibility of thes e neighboring projects.

In addition, Palo Alto and Valley Water have coordinated on engaging stakeholders on the environmental review process for the proposed Water Purification Project. Valley Water, acting as the “lead agency”, has determined that an EI R is required to satisfy the requirements of the California Environmental Quality Act (CEQA). The draft EIR will evaluate the proposed project’s environmental conditions, range of alternatives, potential environmental impacts associated with the proposed project implementation, and provide mitigation measures. The Notice of Preparation (NOP) was released on March 19, 2021 and the public scoping meeting was held on March 29, 2021. Outreach was conducted to encourage attendance at the scoping meeting via an outreach mailer, announcements at tours of the Silicon Valley Advanced Purification Center, and continued engagements with staff from the cities of San Jos e and Palo Alto to reach key stakeholder groups. Prior to the release of the NOP, Valley Water staff and consultants met with the planning department staff of both Palo Alto and San Jos e as these cities will be the responsible agencies under CEQA. Currently, both City’s sites are being actively studied by Valley Water. The Valley Water Board directed staff to focus on Palo Alto at this time. In the future, Valley Water anticipates that an additional purification plant will be required to augment future drinking water supplies within Santa Clara County. Additional coordination will occur prior to release of the EIR. The next steps after the initial study which is the NOP will be a 1 Packet Pg. 14

City of Palo Alto Page 10

full environmental impact report , which will focus on the old Los Altos Treatment Plant Site ; Palo Alto will be the responsible agency.

Environmental Review
This study ses sion is presented for information and discussion purposes only and is therefore not a project as defined by section 15378 of the CEQA Guidelines.

Valley Water, acting as lead agency for the proposed Water Purification Project, has determined that an EIR is required to satisfy the requirements of the CEQA. Palo Alto will be a responsible party throughout the CEQA process. Valley Water is currently in the process of preparing the Draft EIR; which the City will review prior to release. 1 Packet Pg. 15

City of Palo Alto (ID # 14053)
Office of the City Clerk
City Council CAO Report

Meeting Date: 2/28/2022

Title: Approve Minutes from the February 5, 2022 City Council Retreat, February 7, 2022 City Council Meeting, and the February 14, 2022 City Council Meeting
From: Lesley Milton, City Clerk

Staff recommends Council to review and approve the minutes as presented.

ATTACHMENTS:
• Attachment2.a: Attachment A: 20220205amCCs (DOCX)
• Attachment2.b: Attachment B: 20220207amCCs (DOCX)
• Attachment2.c: Attachment C: 20220214amCCs (DOCX)
2 Packet Pg. 16

CITY COUNCIL RETREAT

DRAFT ACTION MINUTES

Special Meeting
February 5, 2022
The City Council of the City of Palo Alto met on this date in virtual teleconference at 9:00 A.M.

Participating Remotely: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka

Absent:

1. Roll Call and Welcome from Mayor

NO ACTION TAKEN

2. Council Retreat Discussion
City Council went on break at 11:22 A.M. and returned at 11:31 A.M.

MOTION: Council Member Cormack moved, seconded by Council Member Stone to select the following as the 2022 Council Priorities:

A. Economic Recovery and Transition;
i. Cohesive vision for our commercial cores;
B. Climate Change – Protection and Adaptation;
C. Housing for Social and Economic Balance; and
D. Community Health and Safety:
i. Crime, mental health, air quality, noise, sense of belonging.

MOTION PASSED: 7-0
The Council went on a lunch break at 12:30 P.M. and returned at 12:50 P.M.

MOTION: Mayor Burt moved, seconded by Vice Mayor Kou to refer to the Policy and Services Committee on:

A. Recommending to the Council a set of values that would continue over successive years as values of the city and the community; B. Considering the following topics, but not limited to:

2.a
Packet Pg. 17

DRAFT ACTION MINUTES

City Council Retreat
Draft Action Minutes: 02/05/2022
i. Fiscal Sustainability;
ii. Social Justice;
iii. Healthy City Healthy Community; and
iv. Environmental Sustainability.

MOTION PASSED: 6-1, Tanaka no
Adjournment: The meeting was adjourned at 2:02 P.M.

ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes a re prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section 2.04. 160(c). Beginning in January 2018, in accordance with Ordinance No. 5423 , the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.

2.a
Packet Pg. 18

CITY COUNCIL

DRAFT ACTION MINUTES

Special Meeting
February 7, 2022
The City Council of the City of Palo Alto met on this date in virtual teleconference at 5:00 P.M.

Participating Remotely: Burt, Cormack, Filseth, Kou, Stone, Tanaka

Absent: DuBois
Closed Session

1. CONFERENCE WITH CITY ATTORNEY Subject: Written Claim Against the City of Palo Alto By Strawn Construction Inc. regarding work performed on Palo Alto Fire Station No. 3 Authority: Government Code Section 54956.9 (e)(3).

2. CONFERENCE WITH LABOR NEGOTIATORS Cit y Designated
Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Rumi Portillo, Sandra Blanch, Nicholas Raisch, Tori Anthony, Molly Stump, and Terence Howzell) Employee Organization: Servi ce Employees International Union, (SEIU) Local 521, Utilities Management and Professional Association of Palo Alto (UMPAPA)Palo Alto Peace Officers’ Association (PAPOA), Palo Alto Police Management Association (PMA), International Association of Fire Fight ers (IAFF) local 1319, Palo Alto Fire Chiefs Association (FCA), Management and Professional Employees (MGMT) ; Authority: Government Code Section 54957.6 (a).

MOTION: Council Member Cormack moved, seconded by Vice Mayor Kou to go into Closed Session.

MOTION PASSED: 6-0, DuBois Absent
Council went into Closed Session at 5:06 P.M.

Council returned from Closed Session at 7:30 P.M.

Mayor Burt announced there was no reportable action.

2.b
Packet Pg. 19

DRAFT ACTION MINUTES

Sp. City Council Meeting
Draft Action Minutes: 02/07/2022
Agenda Changes, Additions and Deletions
None
Consent Calendar
Vice Mayor Kou registered a no vote on Agenda Item Number 9.

Council Member Tanaka registered a no vote on Agenda Item Number 4.

3. Approve Minutes from the January 24, 2022 City Council Meeting.

4. Authorize and Approve a Three Million Dollars ($3,000,000) Loan From the Housing In Lieu and Impact Fee Funds for the Development of an Affordable Workforce Housing Project Located at 231 Grant Avenue; Approve the Budget Amendment in the Residential Housin g In -Lieu Fund; Authorize the City Manager to Execute Associated Agreements.

5. Policy and Services Committee Recommends Approval of the Office of the City Auditor Construction Project Controls Report.

6. Policy and Services Committee Recommends Approval of the Office of the City Auditor's Initial Public Safety Building Monitoring Report.

7. Policy and Services Committee Recommends Approval of the Office of the City Auditor's Task Order to Perform a Wire Payment Process and Controls Review.

8. Adoption of Resolution 10017 Authorizing Use of Teleconferencing for Council Meetings During Covid-19 State of Emergency.

9. Policy and Services Committee Recommendation that City Council Approve the 2022 Legislative Guidelines; Utilities Advisory Commission Recommendation that City Council Approve the 2022 Utilities Legislative Guidelines.

MOTION: Council Member Filseth moved, seconded by Council Member Cormack to approve the Consent Agenda items 3-9.

ITEM 4 OF MOTION PASSED: 5-1, Tanaka no, DuBois absent ITEM 9 OF MOTION PASSED: 5-1, Kou no, DuBois absent
ITEMS 3, 5-8 OF MOTION PASSED: 6-0, DuBois absent

2.b
Packet Pg. 20

DRAFT ACTION MINUTES

Sp. City Council Meeting
Draft Action Minutes: 02/07/2022
Action Items

10. Discuss the FY 2022 Mid-Year Budget Review and Approve the Following: 1) FY 2022 Budget Amendments in Various Funds, and 2) Amendments to the FY 2022 Table of Organization to Add 11.00 FTE Positions.

MOTION: Council Member Filseth moved, seconded by Council Member Cormack to:

A. Approve a Budget Amendment Ordinance for Fiscal Year (FY) 2022 in various funds, as identified in Attachment A;
i. Amendment: Amend the contribution to the Supplemental Pension 115 Trust in the General Fund from $2 Million to $1 Million and adjust the transfer from the General Fund to the General Benefit Fund to align. Adjust the use of the General Fund BSR from $3.6 Million to $2.6 Million;
B. Approve amendments to the FY 2022 Table of Organization in Attachment B consistent with the budget amendments in Attachment A; C. Review and accept this preliminary financial status report for the second quarter of FY 2022; and
D. Authorize City Manager to hire up to 5 FTEs in the Police Department.

PART A OF MOTION PASSED: 5-1, Tanaka no, DuBois absent PARTS B-D OF MOTION PASSED: 6-0, DuBois absent

11. California Avenue and Ramona Street Temporary and Permanent Closure: Direct Staff to Issue RFP for a Feasibility Study and Return for Contract Approval, and Provide Direction to Staff on Activities and Programming
Public Comment was accepted, and the item was continued to the February 28, 2022 meeting.

Adjournment: The meeting was adjourned at 11:20 P.M.

2.b
Packet Pg. 21

CITY COUNCIL

DRAFT ACTION MINUTES

Special Meeting
February 14, 2022
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:00 P.M.

Present: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka

Absent: None
Special Orders of the Day

1. Select Applicants to Interview for the Architectural Review Board.

MOTION: Council Member Cormack moved, seconded by Vice Mayor Kou to interview all new applicants for the Architectural Review Board.

MOTION PASSED: 7-0
AA1. Friends of the Palo Alto Libraries.

NO ACTION TAKEN
Agenda Changes, Additions and Deletions
None
Consent Calendar
Vice Mayor Kou moved, seconded by Council Member Stone, third by Mayor Burt to pull Item 5 from the Consent Calendar to be heard as Item 8A tonight.

Council Member Tanaka registered a no vote on Agenda Item Numbers 6, 7.

MOTION: Council Member DuBois moved, seconded by Council Member Cormack to approve the Consent Agenda items 2-4, 6-7.

2. Approve Minutes from the January 31, 2022 City Council Meeting.

3. Approval of Construction Contract Number C22181645 with Legion Contractors Inc., in the Amount of $494,723, and Authorization for the City Manager or their Designee to Negotiate and Execute Change Orders up to a Not -to-Exceed Amount of $74,208, for the Magical Bridge

2.c
Packet Pg. 22

DRAFT ACTION MINUTES

Sp. City Council Meeting
Draft Action Minutes: 02/14/2022
Playground Rubber and Synthetic Turf Resurfacing Capital Improvement Program Project (PE-21003).

4. Approval of Amendment Number 2 to the Agreement With Palo Alto Unified School District (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost-sharing to Extend the Term to June 30, 2022 with an Optional Extension for an Additional Two Years.

5. Approval of Amendment #4 to Contract C18171057 with AECOM to Increase the Not -to-Exceed Compensation by $722,170 for Additional Evaluation and Outreach of Railroad Grade Separation Alternatives for a Total Not -to-Exceed of $3,596,828. This Item was pulled and heard as Item 8A.

6. Approval of Meter Data Management System (MDMS) Contract C22184319 With N. Harris Corporation (SmartWorks) in the Amount Not to Exceed $1,804,055 Over a Five-Year Term.

7. SECOND READING: Adoption of Ordinance 5544 Amending Palo Alto Municipal Code Section 9.68 (Relocation Assistance for No -Fault Evictions) by Reducing the Threshold for Applicability from 50 Units to 10 Units or a Lower Threshold. Environmental Assessment: Exempt pursuant to CEQA Guidelines Section 15061(b)(3). (FIRST READING:

January 31, 2022 PASSED: 5-1-1, Tanaka no, Stone abstain).

ITEMS 2 AS AMENDED, 3, 4, OF MOTION PASSED: 7-0
ITEM 6 OF MOTION PASSED: 6-1, Tanaka No
ITEM 7 OF MOTION PASSED: 5-1-1, Tanaka No, Stone Recused Item 5 was pulled from the Consent Calendar to be heard as Item 8A. 8A. Approval of Amendment #4 to Contract C18171057 with AECOM to Increase the Not -to-Exceed Compensation by $722,170 for Additional Evaluation and Outreach of Railroad Grade Separation Alternatives for a Total Not-to-Exceed of $3,596,828.

MOTION: Vice Mayor Kou moved, seconded by Mayor Burt to refer this item to the Rail Committee.

PASSED: 4-3, Cormack, DuBois, Filseth no

2.c
Packet Pg. 23

DRAFT ACTION MINUTES

Sp. City Council Meeting
Draft Action Minutes: 02/14/2022
Action Items

8. Discuss and Provide Direction to Staff on: (1) Continuing the Cubberley Concept Plan; (2) the Temporary Relocation of Palo Verde and Hoover Elementary Schools to Cubberley; and (3) Potential Opportunity to Acquire Additional Land at Cubberley.

MOTION: Council Member DuBois moved, seconded by Council Member Cormack to:

A. Direct Staff to pause preparation of the Cubberley Concept Plan CEQA; B. Request a joint meeting with the PAUSD School Board and City Council prior to the June break;
C. Ask Staff return to Council with a work plan to include:
i. Exploring a land swap at Fletcher or financial framework for acquiring available land; and
ii. Scope the design process for Cubberley Community Center that is City owned once the acreage is determined.

MOTION PASSED: 7-0

9. Provide Direction to Staff on Negotiations with Pets in Need for Operations and Capital Improvements at the City's Animal Shelter.

MOTION: Mayor Burt moved, seconded by Council Member Filseth to direct Staff to:

A. That as a condition for continuing good faith negotiations, that Pets in Need would agree to extend the notice of termination six months beyond the current date;
B. Proceed with negotiations with Pets in Need for a long -term contract agreement for animal services in Palo Alto;
C. Evaluate the necessary kennel size for community partners that we serve;
D. Include some form of trap and neuter program;
E. Include a small animal area in the renovation plans;

2.c
Packet Pg. 24

DRAFT ACTION MINUTES

Sp. City Council Meeting
Draft Action Minutes: 02/14/2022
F. Assure that the contract agrees upon hours of operation and services provided;
G. That the parties agree to pursue a fundraising program to supplement existing capital commitments for the shelter; and
H. Explore the transition to a new database.

MOTION PASSED: 7-0
Adjournment: The meeting was adjourned at 9:35 P.M.

2.c
Packet Pg. 25

City of Palo Alto (ID # 13989)
City Council Staff Report

Meeting Date: 2/28/2022

City of Palo Alto Page 1

Title: Adoption of a Resolution to Authorize the City Manager to Apply for an SB1383 Local Assistance Program Grant from the California Department of Resources Recycling and Recovery (CalRecycle) and Execute Related Program Agreements and Amendments
From: City Manager
Lead Department: Public Works

Recommendation
Staff recommends that Council adopt the attached resolution (Attachment A) authorizing the City Manager or their designee to apply for an SB 1383 Local Assistance Program Grant from the California Department of Resources Recycling and Recovery (CalRecycle) and to sign related program agreements and amendments.

Background
CalRecycle offers a non -competitive Local Assistance Program grant to offset jurisdictions’ program costs associated with implem entation of Senate Bill (SB) 1383 Short Lived Climate Pollutant regulations, which impact the management of organic wastes throughout the State.

The approved resolution is due on March 1, 2022 and it is necessary to receive the funding from CalRecycle. A f ull description of the City’s obligations under SB 1383 including the recovered organic waste product options being considered for procurement is detailed in Staff Report ID # 13547 that was approved by Council on November 1, 2021.

Discussion
The City is qualified to receive up to $89,759 in funding assistance thro ugh CalRecycle’s non - competitive SB 1383 Local Assistance grant program. The amount of the grant is based on population and is available to all jurisdictions in the State. The grant will provide funding assistance to the City in its purchase of recovered o rganic waste products mandated by the SB 1383 procurement requirements, which require municipalities across the state, starting this calendar year to procure a certain amount of “recovered organic waste products” such as compost, mulch, renewable natural g as, or power from anaerobic digesters or biomass conversion.

Timeline
Staff submitted the SB 1383 grant application in February 2022. For the application to be 3 Packet Pg. 26

City of Palo Alto Page 2

deemed complete, a resolution must be attached by March 1, 2022. CalRecycle will send award notifications in April 2022 and the grant term will end April 2, 2024.

Resource Impact
The grant requires City expenditures of funds, which will be reimbursed by the State. If the grant is awarded, staff will return to Council to recognize the funds and inc orporate them into the Refuse Fund budget. In addition, the grant amount will supplement a portion of the cost of procuring the recovered organic waste product in order to fulfill the SB 1383 procurement requirement. Additional funding will be requested through the Fiscal Year 2023 budget development process for the remaining estimated procurement cost.

Policy Implications
This grant program is consistent with the City’s 2018 Zero Waste Plan and Sustainability and Climate Action Plan and does not represent any changes to existing City policies.

Stakeholder Engagement
The requirements for complying with SB 1383 are mandated by the State of California and have been incorporated into the City’s policies. Outreach and education to inform the residential and business community about the SB 1383 requirements has been conducted and will continue with continuous future outreach to the community. A webpage with information on the SB 1383 requirements is on the City’s website at www.cityofpaloalto.org/sb1383regulations.

Additionally, the application for grant funding in support of State mandates does not require increased stakeholder engagement.

Environmental Review
When developing the new regulations, CalRecycle completed the Final Environmental Report for the SB 1383 Regulations Short -Lived Climate Pollutants: Organic Waste Methane Emission Reduction, December 2019 (https://www2.calrecycle.ca.gov/Docs/Web/116058).

The CalRecycle grant application and procurement of recovered organic waste products are exempt from environmental review pursuant to CEQA Guideline Section 15061(b)(3), because it can be seen with certainty that the provisions contained therein do not have the potential for causing a significant effect on the environment, and also under CEQA Guidelines Sections 15307 and 15308, as actions tak en by regulatory agencies to assure the maintenance, restoration, or enhancement of natural resources and the environment.

Attachments:
• Attachment3.a: Attachment A: Palo Alto SB 1383 Grant Resolution 3 Packet Pg. 27
*Yet to be Passed*
Resolution of The City of Palo Alto
Authorizing Submittal of An Application for The CalRecycle SB 1383 Local Assistance Program Grant

R E C I T A L S

WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and

WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and

WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants.

NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE, as follows:

Section 1. The City Manager, or his/her designee, is authorized to submit an application to CalRecycle for the SB 1383 Local Assistance Program Grant.

Section 2. The City Manager, or his/her designee is hereby authorized and empowered to execute in the name of the City of Palo Alto all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project.

Section 3. These authorizations are effective for five (5) years from the date of adoption of this resolution.
//

//

//

//

//

//
//

3.a
Packet Pg. 28
*Yet to be Passed*
Section 4. The Council finds that the adoption of the CalRecycle grant application and procurement of recovered organic waste products are exempt from environmental review pursuant to CEQA Guideline Section 15061(b)(3), because it can be seen with certainty that the provisions contained therein do not have the potential for causing a significant effect on the environment, and also under CEQA Guidelines Sections 15307 and 15308, as actions taken by regulatory agencies to assure the maintenance, restoration, or enhancement of natural resources and the environment.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST: APPROVED:

________________________________ ________________________________ City Clerk Mayor

________________________________ ________________________________ Assistant City Attorney City Manager

________________________________
Director of Public Works

________________________________
Director of Administrative Services

3.a
Packet Pg. 29

City of Palo Alto (ID # 14072)
Office of the City Clerk
City Council CAO Report

Meeting Date: 2/28/2022

Title: Appointment of 2022 Emergency Standby Council
From: Lesley Milton, City Clerk

This report will be a special late packet release on Thursday, February 24th, 2022. 4 Packet Pg. 30

City of Palo Alto (ID # 13927)
City Council Staff Report

Meeting Date: 2/28/2022

City of Palo Alto Page 1

Title: Approval for the Renewal of the Agreement Between the City of Palo Alto and the Palo Alto Art Center Foundation for Mutual Cooperation and Support to Facilitate the Foundation's Financial and Administrative Support of the City's Palo Alto Art Center
From: City Manager
Lead Department: Community Services

Recommendation
Staff recommends that City Council approve the renewal of a Mutual Cooperation and Support Memorandum of Understanding (MOU) with the Palo Alto Art Center Foundation (Attachment A) th at extends the previous agreement for five years for a term beginning December 1, 2021 and ending September 30, 2026.

Background
The Palo Alto Art Center Foundation (Foundation) has played an integral role in the support and operation of the Palo Alto Ar t Center (PAAC) since its inception in 1973. (Note that from 1973 to 2000 the organization was identified as the Palo Alto Cultural Center Guild). The mission of the Foundation, a 501(c)(3) nonprofit organization, is to expand the reach and impact of the P alo Alto Art Center through fundraising and advocacy.

This MOU represents a five -year renewal of the previous mutual cooperation and support agreement between the City of Palo Alto and the Palo Alto Art Center Foundation approved by Council in 2016. The initial agreement was approved by Council in 2010 (CMR: 350:10). In addition, pre vious agreements between the City of Palo Alto and the Palo Alto Art Center Foundation were created to facilitate improvements of the Center facility (CMR 288:07, 107:08, 465:08, 168:09). The $9.1.M renovation of the Palo Alto Art Center building (the form er City Hall building) represented one of the largest public/private partnerships in the City’s history and relied upon $4.7M in contributions from the Palo Alto Art Center Foundation and community members. Similar public/private partnership agreements hav e been developed for the Friends of the Junior Museum & Zoo, Friends of the Children’s Theatre, and Palo Alto Recreation Foundation and Friends of the Palo Alto Parks.

5 Packet Pg. 31

City of Palo Alto Page 2

Discussion
This MOU is identical to the previous agreement developed in 2016 with two n otable exceptions. To enhance their efforts as a support organization, in 2010 City staff and the Foundation proposed a concept in which the partnership between the City and the Foundation would be strengthened through a written agreement that outlines ove rall responsibilities, procedures, and processes for decision making, use of funds, property, and facilities and staff management. The previous agreements approved by Council clarified the roles and responsibilities of both parties. In the new agreement, t wo additions have been made. The first is that the agreement memorializes the annual payment the Palo Alto Art Center Foundation makes to the City of Palo Alto to support staffing positions at the Art Center in the areas of children’s education in the amount of $81,000 annually ($20,000 to support the Director of Education position; $9,000 to support the Project Look Coordinator position; $9,000 to support the Children’s Fine Art Coordinator position; $43,000 to support the School and Teacher Programs Direc tor position). These generous payments have been consistently made by the Foundation every year over the past several years. In addition, this new agreement provides opportunities for the sharing of customer information between the City of Palo Alto and the Foundation to promote fundraising, for customers who provide authorization.

This agreement and the valued partnership with the Foundation has helped the City to leverage resources and work in collaboration with the community through its relationship with the Foundation. This renewal agreement will continue the important policies and processes outlined in the previous foundational agreements.

Timeline
The previous MOU expired in February of 2021. This agreement will also have a five- year term and will expire on October 1, 2026.

Resource Impact
Appropriation for this agreement was included in the FY 2022 Adopted Budget. The Palo Alto Art Center Foundation makes an annual cash contribution to the City in the amount of $81,000 to support staffing positions in the areas of children’s education at the Palo Alto Art Center. This agreement memorializes this contribution. In addition, the Palo Alto Art Center Foundation supports Art Center programs through direct expenses of more than $200,000 annually.

Policy Implications:

As outlined in the August 2007 Public/Private Partnerships Policy Statement, the relationship between the Foundation and the PAAC is that of an alliance: “This type o f public/private partnership involves organizations that have been created for the sole purpose of supporting a City program or array of City programs.”

This MOU is consistent with and furthers the intent of Comprehensive Plan Policy C-1.5:
5 Packet Pg. 32

City of Palo Alto Page 3

“Work with St anford University and other educational institutions, private, nonprofit, faith-based, public community service organizations and neighborhood associations, with the goal of enhancing the quality of life for Palo Alto’s student and residential communities. Increase opportunities for shared use among groups in the community at different times through public private partnerships and by developing programs, facilities and community services that ensure safe, non -discriminatory access to community services.”

Environmental Impact
Approval of this MOU is not a “project” within the meaning of CEQA.

Attachments:
• Attachment5.a: 2021 MOU with Art Center - Foundation (PAACF signed) 5 Packet Pg. 33

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF PALO ALTO AND

THE PALO ALTO ART CENTER FOUNDATION

FOR MUTUAL COOPERATION AND SUPPORT

This Memorandum of Understanding (the “MOU”), dated for convenience December 1, 2021, is entered into by and between the CITY OF PALO ALTO, a California chartered municipal corporation (the "City"), and the PALO ALTO ART CENTER FOUNDATION, a California public benefit corporation organized under the California Nonprofit Public Benefit Corporation Law (the "Foundation") (individually, a “Party” and, collectively, the “Parties”), in reference to the following facts and circumstances:

RECITALS:

A. The City owns and operates the Palo Alto Art Center (the “Art Center”), located at 1313 Newell Road, Palo Alto. The Palo Alto Art Center is the place to see and make art, activate your creativity and expand your community. The Center achieves this through exhibitions, studio experiences, classes, and related educational programs. The Art Center is a program of the City’s Division of Arts and Sciences, Community Services Department.

B. The Foundation is a § 501(c)(3) public benefit corporation, which was founded in 1973 with the mission of expanding the reach and impact of the Palo Alto Art Center through fundraising and advocacy. By its operations- and education-related programs, activities and opportunities, the Foundation has assisted the CSD’s Art Center Director (the “ Director”) and other staff in supporting and advocating on behalf of the Art Center’s operations, programs and activities over the past forty- eight years.

C. The Parties wish to more closely collaborate and mutually cooperate and support each other in the future, to improve, enhance, and sustain the capacity of the Art Center to develop and provide educational opportunities and related services to the Palo Alto community.

AGREEMENT:

NOW, THEREFORE, in consideration of the Recitals above, the following covenants, terms, conditions and provisions of this MOU, the Parties agree:

SECTION 1. TERM; TERMINATION

1.1 The term of this MOU will commence as of the date of full execution of this Agreement (“Effective date”), and shall continue through September 30, 2026 (the “Term”), unless it is earlier terminated by a Party as herein provided.

1.2 This MOU is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code (the “PAMC”). This MOU will terminate without penalty: (A) at the end of the fiscal year in the event that funds are not appropriated by the City for the Art Center’s programs for the following fiscal year or (B) at any time within a fiscal year in the event that funds are appropriated for a portion of the fiscal year and funds for this MOU are no longer available. This DocuSign Envelope ID: 5EAA4F74-CE8E-4986-9913-EB3EDED4BE7D

5.a
Packet Pg. 34

Section 1.2 will take precedence in the event of a conflict with any other covenant, term, condition, or provision of this MOU. Nothing in this Section 1.2 is intended to affect the Foundation’s rights and remedies as may be available under applicable laws.

SECTION 2. RESPONSIBILITIES OF THE PARTIES

2.1 Responsibilities of the City

A. The management of the Art Center's facilities, programs and the CSD staff employees assigned to the Art Center, including, without limitation, the Director, and any and all independent contractors, subcontractors, consultants and volunteers hired by the City. The City will hire, supervise, evaluate and otherwise exercise supervision and control of its employees at the Art Center; provided, however, the City may invite the Foundation to assist the City in the selection of key CSD employees, who are or may be directly involved in the Art Center's management, operations and programs;

B. The construction, alterations, repairs and maintenance of the Art Center building facilities and open air spaces;

C. The provision of furnishings, fixtures and improvements, the performance of landscaping at the Art Center, and the provision of utility services to the Art Center;

D. The selection of one or more individuals to serve as the City's liaison to the Foundation's board of directors and/or any board committee or subcommittee (the "Board") meetings, including (1) a Council Member, if any, who will serve as the official liaison of the City to the Board, and (2) the Director, whose duties may include providing assistance directly to the Foundation, including the Board, in selected fundraising activities, as may be directed or approved by the City Manager, or designee;

E. The review of all community-related activities that the Foundation may propose for inclusion in the Art Center's programs. All activities of the Foundation will be pre-approved by the Director, or designee;

F. Develop and provide educational programs relating to the Art Center's programs and activities and supervise community volunteers in connection therewith;

G. Manage the Art Center exhibition and education programs in accordance with City, CSD, California and federal laws, museum procedures and applicable professional standards;

H. Provide mailing services and volunteer staffing and supervision for certain bulk mailings to the Foundation's members, and including any assistance deemed reasonably necessary arising in connection with annual fundraising activities;

I. Provide supervisory assistance in connection with cash handling and credit card transaction handling services relating to the Foundation's fundraising events, all in accordance with the City's cash handling policies and procedures, Policy and Procedures 1-3; DocuSign Envelope ID: 5EAA4F74-CE8E-4986-9913-EB3EDED4BE7D

5.a
Packet Pg. 35

J. For customers who authorize it, share customer contact information with the Foundation for fundraising purposes.

K. Any other obligation that the City, the CSD or the Art Center may undertake in accordance with this MOU, upon reasonable notice to the Foundation; provided, however, any such undertaking will be memorialized, in writing, by an amendment to this MOU, in order that such undertaking will be binding upon the City.

2.2 Responsibilities of the Foundation

A. The supervision and management of its directors, officers, employees, volunteers, independent contractors, subcontractors and consultants, while they, and each of them, are exercising rights and/or performing obligations on behalf of the Foundation pursuant to this MOU; provided, however, the Parties acknowledge that, although certain Foundation employees, independent contractors, subcontractors, consultants and volunteers may be paid by the Foundation, to the extent such persons are also employees of the City and report to the Director, the City and not the Foundation shall be primarily responsible for the management and supervision of such persons.

B. The rendering of assistance to the Director (through the Board and/or staff), at the Director's request, including voluntary attendance and contribution of recommendations and advice at staff meetings of the Director;

C. Subject to the availability of adequate funding, the provision and staffing of activities to educate the public about the mission of the Art Center and its programs and amenities, and the mobilization of additional volunteers for the Art Center's projects and programs; D. The development of a fundraising strategy to solicit cash and in-kind contributions from individuals, businesses and other similar entities (such as partnerships and corporations) and the implementation of a grants writing program to seek out funds for the support of the Art Center's programs and activities, which may include both capital and non-capital projects;

E. The acquisition and maintenance of charitable donations database management software for the purpose of recording and monitoring pertinent information relating to the Foundation's supporters and donors;

F. The purchase and maintenance of bulk mail privileges with the United States Postal Service for the purpose of facilitating the Foundation's fundraising activities;

G. At the Foundation's discretion, the acquisition as appropriate of personal property for the benefit of the City and the CSD, in particular, which the Foundation will endeavor to acquire for the purpose of donating the same to the City, and with respect to which the City will exercise all rights and obligations relating thereto; and

H. The rendering of any other service beyond those included in the annual Art Center Plan and related to the preservation, protection and enhancement of the Art Center and the artworks contained therein, as may be approved, in writing, by the Director.

DocuSign Envelope ID: 5EAA4F74-CE8E-4986-9913-EB3EDED4BE7D

5.a
Packet Pg. 36

I. Subject to the availability of adequate funding and at the Foundation's discretion, the operation, management, staffing and implementation of programs designed to provide art and other creative resources and activities in classrooms in neighboring communities and Palo Alto schools; and

2.2.1 Rendering assistance to the Director and her successor, upon her request, as that assistance may relate to the integration of the Parties’ programs.

2.3 The responsibilities of the Parties will include the following:

A. Under the direction of the Director, develop a long-term strategic plan to enhance and improve the vision of the Art Center (the “Strategic Plan”); and

B. Under the direction of the Director and consistent with the Strategic Plan, develop on an annual basis, effective as of July 1 of each year, a work plan that among other things establishes program, budget, fundraising, and administrative and operational priorities and activities for the applicable fiscal year of operations (each, an “Art Center Plan”). Each Art Center Plan will delineate the rights and obligations of the Parties and identify each Party’s duly authorized representative who is responsible for executing such rights and duties in connection therewith.

2.4 Notwithstanding any provision of this MOU to the contrary, any and all funds received by the Foundation (through donations, grants, or otherwise) shall remain the property of and shall be solely under the control of the Foundation. To the extent that the Foundation conducts its own funding activities without the participation of the City at or in connection with the Art Center, the Foundation shall control the method and timing of such funding.

2.5. The Foundation shall donate $81,000 annually to the City for the purposes of partially funding the following City positions: Director of Education, CFA Coordinator, School and Teacher Program Director, and the Project Look Coordinator. If the City eliminates or reduces any of these positions, the Foundation and the City shall meet and confer about potentially changing the amount of the annual donation. The parties acknowledge that this formalizes the past practice of the Foundation making this donation and the City using it to partially fund these positions.

2.6 To the extent that this Section 2 does not specifically identify the Party who will be primarily responsible for any action or decision in regard to the Art Center, the Parties agree that the City will be the party to assume all rights and obligations in connection with such decision.

SECTION 3. INDEMNITY

3.1 Each party will indemnify, defend and hold harmless the other party, and its respective governing body, employees, volunteers, and agents from and against any and all third party loss, liability, expense (including reasonable attorneys’ fees) or claims for injury or other damages (collectively “Claims”) arising out of the indemnifying party’s performance of this Agreement, but only in proportion to and to the extent such Claims are caused by or result from the negligent or intentional acts or omissions of the indemnifying party.

DocuSign Envelope ID: 5EAA4F74-CE8E-4986-9913-EB3EDED4BE7D

5.a
Packet Pg. 37

3.2 In the event of concurrent negligence of the parties, or the parties’ respective governing body, employees, volunteers, or agents, the liability for any and all Claims shall be apportioned under the California theory of comparative negligence as presently established or as may hereafter be modified.

Nothing in this Agreement shall constitute a waiver or limitation of any rights that the indemnifying party may have under applicable law in the event of concurrent negligence of per sons or entities other than the parties to this Agreement.

3.3 The parties intend and agree to cooperate with each other in the investigation and disposition of third -party liability claims arising out of the performance of this Agreement. Such cooperation may include joint investigation, defense and disposition of claims. The parties agree to promptly inform one another whenever an incident report, claim or complaint is filed or when an investigation is initiated concerning any service performed under t his Agreement. In the event of a conflict in interest, each party may conduct its own investigation and engage its own counsel.

3.4 The provisions of this Section 3 shall survive the termination or expiration of this MOU.

SECTION 4. INSURANCE

4.1 As of the Effective Date, the Foundation, at its sole cost and expense, will obtain and maintain the following insurance coverage, acceptable to the City's insurance risk manager (the "Risk Manager") in full force and effect during the Term, insuring not only the Foundation but, with the exception of worker's compensation and employer's liability insurance, naming the City as an additional insured, concerning the Foundation's participation under this MOU.

POLICY MINIMUM LIMITS OF LIABILITY
Worker’s Liability Statutory
Commercial Automobile Liability Bodily Injury: $1,000,000 each person

Property Damage: $1,000,000 each person,
including owned, hired, and non-owned
automobiles
Comprehensive General Liability Bodily Injury: $1,000,000 each person $1,000,000 each occurrence, $1,000,000
aggregate including products

Property Damage: $1,000,000 each occurrence
and completed operations

Personal Injury: $1,000,000 each occurrence
broad form contractual and personal injury.

4.2 Any deductibles must be declared to and accepted by the City’s Risk Manager. The Foundation's insurance will be carried in full force and effect on or before the Effective Date. The insurance provided by the Foundation shall satisfy the following requirements:

DocuSign Envelope ID: 5EAA4F74-CE8E-4986-9913-EB3EDED4BE7D

5.a
Packet Pg. 38

A. The Foundation shall deliver a certificate of insurance in which the party issuing the certificate shall endeavor to provide thirty (30) days' prior written notice of any proposed cancellation of the policy to: City of Palo Alto/Palo Alto Art Center Director, P.O. Box 10250, Palo Alto, CA 94303.

B. The City of Palo Alto shall be added by endorsement or otherwise as an additional insured as respects operations of the named insured at or from the Art Center.

C. Any insurance maintained by the City of Palo Alto will apply in excess of, and not contribute to, insurance provided by each policy provided by the Foundation."

4.3 Evidence of Insurance Coverage and/or Changes will be, as follows:

A. Certificate of Insurance. The Foundation agrees to deposit with the Director before the Effective Date, certificates of insurance necessary to satisfy the City that the insurance provisions of this MOU have been complied with, and to ensure that such insurance is kept in effect, with the certificates of deposit with the City, during the Term.

B. Review of Coverage. The City will retain the right, at any time, to review the coverage, form, and amount of the insurance required hereby. If, in the opinion of the Risk Manager, the insurance provisions in this MOU do not provide adequate protection for the City and for members of the public using the Art Center in connection with City-Foundation events and Foundation-only events, the City Manager, or designee, may require, and the City will endeavor to give the Foundation at least sixty (60) days' prior written notice, an amount to provide adequate protection as determined by the Risk Manager. The City's requirements shall be reasonable and shall be designed to assure protection from and against the kind and extent of risk which exists at the time a change in insurance is required. The Foundation may terminate this MOU upon thirty (30) days' prior written notice if the Foundation will not agree to pay for additional insurance coverage as required by the Risk Manager.

C. Reserved.

D. Limit of Liability. As long as the Foundation obtains and maintains the policy or policies of insurance required by this Section 4, the Foundation's obligation under Section 3.1 will be limited to the coverage(s) afforded by such policy or policies of insurance.

E. Acceptability of Insurers. Insurance shall be placed with insurers with a current A.M.

Best's rating of no less than A-VII.

DocuSign Envelope ID: 5EAA4F74-CE8E-4986-9913-EB3EDED4BE7D

5.a
Packet Pg. 39

SECTION 5. GENERAL LICENSE TO THE FOUNDATION

5.1 The City hereby grants the Foundation, its directors, officers, employees, contractors, subcontractors and consultants a nonexclusive license to enter upon and use the Art Center facilities in connection with the Foundation’s execution of its individual and/or joint responsibilities established by the Art Center Plan, including, but not limited to, organizing small group meetings and large group/community meetings and events, such as fundraising events, programs, and tours of the Art Center facilities, and using the office space provided to the Foundation, at no cost to the Foundation, under a license to use the Art Center’s facilities in connection with the exercise of its rights and responsibilities under this MOU. The City will not revoke this license while this MOU remains in effect. Any use of the Art Center facilities by the Foundation will be approved by the Director in regards to program scheduling, space availability, and the functionality of shared Art Center spaces for staff use. The City will provide to the employees of the Foundation security card access to the Art Center premises. These security cards may be revoked only for cause by the City; any additional cards will be approved by the Director, upon request, in writing.

SECTION 6. WAIVER

6.1 The waiver by either Party of any breach or violation of any covenant, term, or condition of this MOU or of the provisions of the Palo Alto Municipal Code or other City law, rule or regulation, will not be deemed to be a waiver of any such covenant, term, condition, or provision or of any subsequent breach or violation of the same or any other covenant, term, condition, or provision.

The subsequent acceptance by either Party of any consideration which may become due or payable hereunder will not be deemed to be a waiver of any preceding breach or violation by the other Party

SECTION 7. ASSIGNMENT

7.1 Neither Party may assign, transfer, or convey this MOU or any interest that it may have in this MOU without the other Party’s express consent or approval. Any attempted assignment by a Party without the required consent or approval of the other Party will be void and will confer no right, title, or interest in this MOU, or part thereof. In the event of an unauthorized assignment, at the option of the Party not making the assignment, this MOU may be terminated upon reasonable notice to the Party making the assignment.

SECTION 8. INDEPENDENT CONTRACTOR

8.1 In the exercise of its rights and responsibilities under this MOU, each Party acts at all times as an independent contractor and not as an employee of the other Party. Nothing in this MOU will be construed to establish a partnership, joint venture, group, pool, syndicate or agency between or among the Parties. No provision contained herein will be construed as authorizing or empowering any Party to assume or create any obligation or responsibility whatsoever, express or implied, on behalf, or in the name of, the other Party in any manner, or to make any representation, warranty or commitment on behalf of the other Party. In no event will either Party be liable for (a) any loss incurred by the other Party in the course of its performance hereunder, or (b) any debts, obligations or liabilities of the other Party, whether due or to become due.

DocuSign Envelope ID: 5EAA4F74-CE8E-4986-9913-EB3EDED4BE7D

5.a
Packet Pg. 40

SECTION 9. NOTICES

9.1 Any notice, request, consent or approval by a Party that is required to be furnished by this MOU, will be given, in writing, and delivered by personal service, the United States Postal Service, mailed, first class, postage prepaid, or by facsimile transmission, to the following:

To CITY: City Clerk
City of Palo Alto
P.O. Box 10250

Copy to: Director, Art Center
City of Palo Alto
P.O. Box 10250
Palo Alto, CA 94303

TO FOUNDATION: President
Palo Alto Art Center Foundation
1313 Newell Road
Palo Alto, CA 94303

SECTION 10. MISCELLANEOUS

10.1 This MOU will be governed by and construed in accordance with the laws of the State of California, the Charter of the City of Palo Alto and the Palo Alto Municipal Code. The Parties will comply with all applicable federal, state and local laws in the exercise of their rights and the performance of their obligations under this MOU.

10.2 All covenants, terms, conditions, and provisions of this MOU, whether covenants or conditions, will be deemed to be both covenants and conditions.

10.3 This MOU represents the entire agreement between the Parties and supersedes all prior negotiations, representations and contracts, written or oral. This MOU may be amended by an instrument, in writing, signed by the Parties. This MOU may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one and the same instrument. This MOU may also be executed using the City’s electronic signature service Docusign.

10.4 The Parties agree that the normal rule of construction to the effect that any ambiguity is to be resolved against the drafting party will not be employed in the interpretation of this MOU or any exhibit or amendment thereto.

10.6 In the event that an action is brought, the Parties agree that trial of such action will be vested exclusively in the state courts of California or in the United States District Court for the Northern District of California in the County of Santa Clara, State of California.

DocuSign Envelope ID: 5EAA4F74-CE8E-4986-9913-EB3EDED4BE7D

5.a
Packet Pg. 41

10.7 The prevailing Party in any action brought to enforce the provisions of this MOU may recover its reasonable costs and attorneys' fees expended in connection with that action.

10.8 If a court of competent jurisdiction finds or rules that any provision of this MOU or any exhibit or amendment thereto is void or unenforceable, the unaffected provisions of this MOU and any exhibit or amendment thereto will remain in full force and effect.

IN WITNESS WHEREOF, the Parties by their duly authorized representatives have executed this MOU as of the Effective Date.

CITY OF PALO ALTO

___________________________________
Edward Shikada
City Manager
Date:

APPROVED:

______________________________
Director of Administrative Services

______________________________
Director of Community Services

APPROVED AS TO FORM FOR CITY:

______________________________
Deputy City Attorney

PALO ALTO ART CENTER FOUNDATION

___________________________________
(Name)
President
Date:

DocuSign Envelope ID: 5EAA4F74-CE8E-4986-9913-EB3EDED4BE7D 1/18/2022

5.a
Packet Pg. 42

City of Palo Alto (ID # 13926)
City Council Staff Report

Meeting Date: 2/28/2022

City of Palo Alto Page 1

Title: Approval of Amendment No. 2 to Professional Services Contract Number C20176858 With Sandis Civil Engineers to Increase the Not -to- Exceed Compensation by $50,000 (to $171,000) and to Extend the Term of the Contract to October 2026 for the Completion of Final Plans and Design Support for the Churchill Avenue Enhanced Bikeway Project From: City Manager
Lead Department: Transportation Department

Recommendation:

Staff recommends that the City Council approve Amendment N o. 2 to Contract No. C20176858 with Sandis Civil Engineers Surveyors Planners (Attachment A) to increase the not -to-exceed compensation by $50,000 and extend the term to October 2026 in order to provide engineering design services to complete the final design plans and construction documen ts, technical specifications, and cost estimates for the Churchill Avenue Enhanced Bikeway Project (PL - 14000).

Background:

Churchill Avenue Enhanced Bikeway Project provides for the extension of the existing bike pathway that currently terminates at the Palo Alto High School driveway, to the west and terminating at El Camino Real . The traffic signal at El Camino Real and Churchill Avenue will be modified to accommodate users of the pathway crossing El Camino Real. In addition, it includes improvements enhancing pedestrian safety at various intersections within this segment.

Council awarded a one -year contract to Sandis Civil Engineers Surveyors Planners (Sandis) for design and environmental assessment of the Churchill Avenue Enhanced Bikeway Project (El Camino Real to Castilleja Avenue) on March 17, 2014 ( CMR 4372). The concept plans w ere approved by Council on January 20, 2015 (CMR 5421), for the Churchill Avenue Bikeway Project.

Since the project was in design by Sandis, Council approved on October 7, 2019 ( CMR 10491), an exemption from competitive solicitation under PAMC 2.30.330 Contract No. C20176858 to provide for the continuity of engineering design services and to complete the design of the environmental assessment, final plans, specifications, and cost estimates for the Churchill Avenue Enhanced Bikeway Project.

6 Packet Pg. 43

City of Palo Alto Page 2

The project design has been on hold since March 2020 as City staff has been working with PAUSD in obtaining the right-of-way and/or easements required to complete the final plans and specifications. However, during this time, the Sandis contract expired in September 2021 and has been extended until March 2022 to allow time to process this amendment. The amendment to Sandis Contract will allow staff to finalize the project design plans and complete the design process while continuing to work with PAUSD on finalizing the details of the project easements.

Discussion:

Churchill Avenue Enhanced Bikeway Proj ect provides improved facilities for all modes including bicycles, pedestrians, and motor vehicles using Churchill Avenue and for vehicles turning into Palo Alto High School. This corridor sees substantial use of bicycle and pedestrian activity as a Safe R oute to School and is also used by automobile commuters who travel north and south through Palo Alto. Below is a summary of the proposed improvements for the Churchill Avenue Enhanced Bikeway Project:

• The proposed design plan extends the existing bicycle path along Churchill Avenue up to the intersection with El Camino Real, where an improved crossing (at El Camino Real) would connect to the Stanford Perimeter Trail and onto the Stanford University campus.

The proposed concept plan line includes extending the existing pathway that currently terminates at the Palo Alto High School driveway, to the west and terminating at El Camino Real where the modified traffic signal would be designed to accommodate users crossing El Camino Real.

• The design also includes a new decorative traffic signal pole at the intersection of El Camino Real and Churchill Avenue, removal of the existing “pork chop” island, the addition of a pedestrian crosswalk across the north leg of the intersection, and the addition of a right -turn vehicle lane on westbound Churchill. Textured and color treatments, enhanced vehicle detection, and connection to Stanford University campus are also proposed as part of this modification, which also requires consultation with Caltrans, Palo Alto Unified School District (PAUSD), and Stanford.

• Improvements also include striping updates on Churchill including high visibility crosswalks. The intersection of Madrono and Churchill Avenue would also receive intersection modification treatments that include a rai sed enhanced crosswalk that would act as a speed table. In addition, a sidewalk extension (bulb -out) on the south corners of Castilleja Avenue is proposed in order to reduce the pedestrian crossing distance and accommodate the rectangular rapid flashing beacons.

The proposed amendment would extend the existing contract for another 4-years, with additional funding to allow Sandis engineers to complete the design and provide related design support services to the City during the construction of the project. The project is designed to a 6 Packet Pg. 44

City of Palo Alto Page 3

95% level and the City would like the consultant, Sandis, to complete the design and prepare construction documents for the project so that staff can move forward with final design and construction.

Since El Camino Real (Route 82) is a State highway, Caltrans is the lead agency and design plans on El Camino Real will need to be submitted for their review and approval in order obtain an encroachment permit needed for construction. As part of their review, Caltrans will re quire additional studies and will have to review and approve all proposed changes made to the intersection of El Camino. Funds are included as part of the additional services amount to cover any other efforts and studies required for design approval. Addi tionally, staff will continue to work with PAUSD on this project.

Policy Implications:

The approval of this contract is consistent with existing City policies, including the Council approved Bicycle + Pedestrian Transportation Plan goals and objectives. The plan objectives that are advanced by the accommodation of bicyclists along this corridor include:

• Objective 1: Double the rate of bicycling for both local and total work commutes by 2020 (to 15% and 5%, respectively).
• Objective 2: Convert discretionary vehicle trips into walking and bicycling trips to reduce City transportation-related greenhouse gas (GHG) emissions 15% by 2020. • Objective 3: Develop a core network of shared paths, bikeways, and traffic-calmed streets that connects business and residential districts, schools, parks, and open spaces to promote healthy, active living.
• Objective 4: Plan, construct, and maintain ‘Complete Streets’ that are safe and accessible to all modes and people of all ages and abilities. • Objective 5: Promote efficient, sustainable, and creative use of limited public resources through integrated design and planning.

In addition, the Comprehensive Plan goals, policies, and programs that support the accommodation of bicyclists on Embarcadero include:

Goal T-3: Facilities, Services, and Programs the Encourage and Promote Walking and Bicycling.

Prog. T-19: Develop, periodically update, and implement a Bicycle Facilities Improvement Program and a Pedestrian Facilities Improvement Program that identify and prioritize critical pedestrian and bicycle links to parks, schools, retail centers, and civic facilities.

Policy T-14: Improve pedestrian and bicycle access to and between local destination, including public facilities, schools, parks, open space, employment districts, shopping centers, and multi modal transit stations.
6 Packet Pg. 45

City of Palo Alto Page 4

Policy T-25: When constructing or modifying roadways, plan for usage of the roadway space by all users, including motor vehicles, transit vehicles, bicyclists, and pedestrians.

Policy T-29: Make effect ive use of the traffic -carrying ability of Palo Alto’s major street network without compromising the need of pedestrians and bicyclists also using this network.

Resource Impact:

Funding for the proposed Amendment 2 in the amount of $ 50,000 is budgeted in the FY 2022 Adopted Capital Budget for the Churchill Avenue Enhanced Bikeway Project (PL -14000). The total contract amount for this project is not to exceed $171,000, which includes $30,000 for project design services and $20,000 for additional services t o support Caltrans requirements, if needed. The term of the contract will also be extended for five years to include construction support for the duration of the construction of the project.

Timeline:

Upon Council approval, staff will continue to work wit h PAUSD staff to finalize the easement agreements so that Sandis Civil Engineers can finalize and complete the 95% design plans for City and Caltrans (State) review and will work with relevant stakeholders. Staff estimates a return to Council for the approval of a construction contract by Fall/Winter 2022.

Stakeholder Engagement
Since the approval of the Sandis contract in 2019, staff has presented this project at the PAUSD Board meeting, PABAC, City-School Traffic Safety Committee, and Safe Route to School staff. A community meeting will also be scheduled to present the final plans to the community, prior to finalizing the construction documents.

Environmental Review:

The contract approval does not require an environmental review; however, given the na ture of the proposed improvements for the project, the project qualifies for a Class 1 Categorical Exemption under California Environmental Quality Act (CEQA) Guidelines Section 15301. The Class 1 exemption covers minor alterations to existing facilities s o long as they involve no or negligible expansion of use.

Attachments:
• Attachment6.a: C20176858 Sandis Civil Engineer Amendment 2 6 Packet Pg. 46
Vers.: Aug. 5, 2019

AMENDMENT NO. 2 TO CONTRACT NO. C20176858

BETWEEN THE CITY OF PALO ALTO AND

SANDIS CIVIL ENGINEERS SURVEYORS PLANNERS

This Amendment No. 1 (this “Amendment”) to Contract No. C20176858 (the “Contract” as defined below) is entered into as of February 28, 2022, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and SANDIS CIVIL ENGINEERS S URVEYORS PLANNERS, a California corporation, located at 636 9th Street, Oakland, CA 94607 (“CONSULTANT”).

CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. T he Contract (as defined below) was entered into by and between the Parties hereto for the provision of engaging a consultant to develop impr ovements at the Churchill Avenue Corridor, as detailed therein.

B. The P arties now wish to amend the Contract in order to Extend the term of the contract to October 6, 2026 and to i ncrease the compensation by $50,000. Basic services will increase by $30,000 to complete the final design plans and construction documents, technical specifications, and cost estimates , and to add scope for design support during construction.

Additional services will increase by $20,000.

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 N o. C20176858 between CONSULTANT and CITY, dated October 7, 2019, as amended by:

Amendment No.1, dated September 6, 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:

“SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through October 6, 2026 unless terminated earlier pursuant to Section 19 of this Agreement.”

DocuSign Envelope ID: C816DBD1-CD6C-4809-8C6C-CE3B1941C90C

6.a
Packet Pg. 47
Vers.: Aug. 5, 2019

SECTION 3. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended to read as follows:

“The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable e xpenses, shall not exceed One Hundred Twenty Six Thousand Dollars ($126,000.00).

CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for Basic Services, Additional Services and reimbursable expenses shall not exceed One Hundred Seventy One Thousand Dollars ($171,000.00). The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY.

Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”.

SECTION 4. 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”, AMENDED, REPLACES PREVIOUS.

b. Exhibit “B” entitled “Schedule of Performance ”, AMENDED, REPLACES PREVIOUS.

c. Exhibit “C” entitled “_Compensation”, 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: C816DBD1-CD6C-4809-8C6C-CE3B1941C90C

6.a
Packet Pg. 48
Vers.: Aug. 5, 2019

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

SANDIS CIVIL ENGINEERS SURVEYORS

PLANNERS

Officer 1

By:

Name:

Title:

Attachments:

Exhibit A: Scope of Services (AMENDED, REPLACES PREVIOUS) Exhibit B: Schedule of Performance (AMENDED, REPLACES PREVIOUS) Exhibit C: Compensation (AMENDED, REPLACES PREVIOUS)

DocuSign Envelope ID: C816DBD1-CD6C-4809-8C6C-CE3B1941C90C President
Jeffery M. Setera

6.a
Packet Pg. 49
Vers.: Aug. 5, 2019

EXHIBIT “A”

SCOPE OF SERVICES

AMENDED, REPLACES PREVIOUS

The Scope of Services for this Agreement continues work that CONSULTANT previously provided as described in City of Palo Alto Contract C14150008, which were services for the development of the Churchill Avenue Corridor Improvements. Stages 1 through 3 are provided below as background information; these stages summarized the services provided in Contract C14150008. The Scope of Services for this Agreement is listed as “Stage 4” below.

Background – Previous Workplan (Stages 1-3)

Project Elements:

1. Plan Line Concepts and PEER/Encroachment Permit: CONSULTANT to determine the community preferred alignment and improvements along the corridor and to coordinate closely with Caltr ans and CITY for development of innovative intersection treatments at the El Camino Real & Churchill Avenue intersection. At the El Camino Real & Churchill Avenue intersection CITY seeks capacity improvements along Churchill Avenue as well as project elements to better facilitate bicycle and pedestrian movements across the intersection as well as transit improvements that will need to be coordinated by the CONSULTANT with the Valley Transportation Authority (VTA) - Bus Rapid Transit (BRT) program. The CONSULTANT will also be require to coordination with Stanford University to coordination of project improvements with their Stanford Perimeter Trail Project - El Camino Real segment and with the Palo Alto Unified School District for right -of-way interest and operations improvements to their district offices located at 25 Churchill Avenue and Palo Alto High School.

2. Environmental Analysis Study: CONSULTANT shall prepare an environmental analysis/assessment for the community-preferred project alignment developed as part of Task 1 including any studies required by CITY as part of the improvements for the El Camino Real & Churchill Avenue intersection. It is assumed that the Permit Engineering Evaluation Report (PEER) submitted to Caltrans during Stage 1 will be approved. The CONSULTANT shall prepare a focused traffic study to identify appropriate intersection capacity treatments including the need for a micro simulation model for use as part of the community outreach process for the project.

3. Development of Plans, Specifications & Engineer 's Estimate 's: CONSULTANT shall be responsible for the development of PS&E for project including: traffic signal modifications, street lighting improvements, sidewalk realignment and widening, drainage improvements, signage & striping, innovative bicycle treatments, traffic calming elements, landscaping, wayfinding, and transit improvements.

4. Additional Service: CONSULTANT shall provide as-needed support during the project life to assist CITY in implementation of the project including, but not limited to: grant writing support and bidding assistance should additional funding be identified for construction.

Stage 1 - Concept Plan Lines & Permit Engineering Evaluation Report/Encroachment Permit

CONSULTANT shall be responsible for the development of concept plan line alternatives for the Churchill Avenue Corridor Improvement Project for the consideration of the Palo Alto community . CONSULTANT shall participate in Community Outreach meetings to identify or further develop one of the alternatives into a Community Preferred Alignment Alternative. CITY anticipates identifying up to three alignment alternatives for consideration of the community before finalizing a Community Preferred Alignment that will be advanced and submitted with an Encroachment Permit and Permit Engineering Evaluation Report DocuSign Envelope ID: C816DBD1-CD6C-4809-8C6C-CE3B1941C90C

6.a
Packet Pg. 50
Vers.: Aug. 5, 2019

(PEER) toCaltrans.

CONSULTANT will be responsible for outreach to and organizing meetings with the following agencies: Palo Alto Community, Caltrans, Stanford University, and Palo Alto Unified School District.

CONSULTANT shall take into account the following Design Considerations as part of the development of Plan Line Concept Alternatives:

• Utilities (Above and Below Ground)
• Real Property Acquisition (Temporary Construction Easements and Design) • Safety
• Walk-ability, Bicycle Ride-ability, and Transit Connectivity • Adjacent Public Facilities or Facilities of Interest such as Palo Alto High School, Stanford University, Town & Country Shopping Center, and connection with existing and planned Bicycle Routes • Project Mitigations to protect the Quality of Life for existing residential properties adjacent to the proposed project area including the South Gate Neighborhood located south of Churchill Avenue between the Caltrain Tracks to the East, El Camino Real to the west, and Stanford Avenue to the South • Cost

After development of a Community Preferred Alignment Alternative for the Churchill Avenue Corridor Improvement project the CONSULTANT shall begin coordination with Caltrans. CONSULTANT is proposing to submit a Permit Engineering Evaluation Report (PEER) with the initial encroachment permit application.

Upon successful approval of the PEER with Caltrans the CONSULTANT will present the findings of the PEER to the Palo Alto Bicycle Advisory Committee (PABAC), Planning & Transportation Commission (PTC), Palo Alto Unified School District (PAUSD)-Board of Directors, andCITY Councilforfinal approval.

CONSULTANT shall be required to participate in the following community outreach meetings dur ing this stage:
• Three(3) community outreach meetings
• Two(2) Palo Alto Bicycle Advisory Committee meetings
• Two (2) Palo Alto Unified School District meetings
• One(1) City-School Traffic Safety Committee meeting
• Two (2) PTC meetings, and
• One (1) City Council meeting.

CITY will be responsible for securing community meeting facilities. CONSULTANT shall be responsible for the preparation of all outreach materials, including media ads to be coordinated for publication by CITY, meeting notice flyers for mailing to residents by CITY, and community meeting presentations. The CONSULTANT shall also serve as Scribe at all community.

Deliverables for Stage 1 should include the following items:
• 10% Design - Concept Plan Line Alignments
• Preliminary Cost Estimates for alignment alternatives • Identifying of Probable Impact and Mitigation Alternatives for neighborhood Quality of Life preservation
• Final Caltrans Approved Permit Engineering Evaluation Report (PEER)

Stage 2 - Environmental Analysis Study

Upon approval of the Permit Engineering Evaluation Report (PEER) by Caltrans, review and approval of required Environmental Analysis Studies will be transitioned over to CITY. CONSULTANT shall be responsible for the development of the appropriate Environmental Analysis Studies required by CITY. The CONSULTANT team includes an additional environmental CONSULTANT to provide oversight/input on Environmental Analysis component of project. CONSULTANT, as part of the Environmental Analysis, shall also be responsible DocuSign Envelope ID: C816DBD1-CD6C-4809-8C6C-CE3B1941C90C

6.a
Packet Pg. 51
Vers.: Aug. 5, 2019

for advancing the Community Preferred Concept Plan Line alternative intoa 35% design stage.

It is assumed that the following technical studies will be required as part of the Environment Analysis component of this project:
• Biological Resources
• Air Quality/Green House Gas
• Hazards & Hazardous Emissions Materials
• Preliminary Geotechnical
• Transportation/Traffic
• CulturalResources
• Hydrology/Water Quality
• Noise

The CONSULTANT's Team shall also identify any permits required from State and Federal Regulatory Agencies (e.g., Caltrans, State Fish & Wildlife, Army Corps of Engineers, etc.).

CONSULTANT will be required to participate in the following community outreach meetings during this stage:
• Three(3) Community Outreach Meetings
• One(1) Study Session Planning & Transportation Commission • One (1) Study Session City Council
• One (1) Presentation - Planning PAUSD Board of Directors • One (1) Presentation/Approval - Palo Alto City Council

CITY will be responsible for securing community meeting facilities. CONSULTANT shall be responsible for the preparation of all outreach materials, including media ads to be coordinated for publication by CITY, meeting notice flyers for mailing to residents by CITY, and community meeting presentations. The CONSULTANT shall also serve as Scribe at all community.

Deliverables for the Environmental Analysis stage for this project shall also include the following elements:
• Final Environmental Assessment reports required by CITY of Palo Alto • 35%PS&E
• Project architectural renderings of key improvements areas such as the El Camino Real & Churchill Avenue and Churchill Avenue & Castilleja intersections

Stage 3 - Development of Plans, Specifications and Engineer's Estimates

Upon approval of the Final Environmental Report for the Churchill Avenue Corridor Improvements project, the CONSULTANT shall proceed to prepare final plans, specifications, and engineer's estimates for the construction o f the project.

The improvement plans shall include the following civil details prepared by a Registered Professional Civil Engineer with good standing with the State of California:
• Cover Sheet
• Project Notes
• Project Plan and Profile
• Demolition Plans
• Plan Details for Improvements, including but not limited to:
o Multi-Use Trail Sections
DocuSign Envelope ID: C816DBD1-CD6C-4809-8C6C-CE3B1941C90C

6.a
Packet Pg. 52
Vers.: Aug. 5, 2019

o Enhanced Pedestrian Crossings
o Accessible Pedestrian Ramps
o Drainage Plans
o Transit Station Plans
o Landscape Improvement Plans
o Signage & Striping Plans
o Traffic Signal and Street lighting Improvement Plans
o UtilityPreservation and Connections
o Utility Plans
o Storm Water Pollution Prevention Plan
o Construction Staging Plan

• Project Specifications consistent with Palo Alto Standard Specifications and Special Provisions to match the Project Improvement Plan requirements
• CONSULTANT shall provide 35%, 65%, 95% and 100% Engineer's Estimates based on improvement plans and comparable bids for similar projects to ensure the project remains within the project budget (CITY may elect to hire an outside Construction Management (CM) finn for Value Engineering and outside PEER review. CONSULTANT shall be expected to work with CM cooperatively.)

CONSULTANT shall apply for and complete all forms required from Caltrans for design exemption and encroachment permits. CONSULTANT shall submit detailed schedule based on the improvements plans to CITY and should to include the following tasks:
• Base 35% Plans Revised from Environmental Process
o Community Outreach Meeting to Identify Landscape/Hardscape and Streetscape palette o Study Session with Architectural Review Board for approval of shrub and tree planting palettes and decorative pavement treatments recommended by the Project Landscape Architect and Project Engineer
• 65% Improvement Plans
o Final Community Outreach Meeting
• 95% Check Print Plan Set
o Presentation of Project to Parks & Recreation Commission o Presentation of Project to Planning & Transportation Commission • 100% Bid Set
o City Council Presentation of Final Project

Meetings with CITY staff for the review of design plans, specifications and construction staging shall be held on site on a monthly basis. CITY will be responsible for securing community meeting facilities. The CONSULTANT shall be responsible for the preparation of all outreach materials, including media ads to be coordinated for publication by CITY, meeting notice flyers for mailing to residents by CITY, and community meeting presentations. The CONSULTANT shall also serve as Scribe at all community meetings and provide CITY with Meeting Notes and Action Notes within 5- business days of each meeting.

CITY anticipates procurement of an outside Construction Management Firm during this stage to assist the CITY in reviewing plans prepared by the CONSULTANT and to conduct Value Engineering alternatives to ensure that the project remains on-budget. The CONSULTANT will be required to work with the CONSULTANT Management Firm during the development of the plans.

Deliverables for the Development of PS&E stage for this project shall also include the following elements:
• 100% PS&E Bid Package
• Procurement of all necessary encroachment permits to allow for the construction o f the project

DocuSign Envelope ID: C816DBD1-CD6C-4809-8C6C-CE3B1941C90C

6.a
Packet Pg. 53
Vers.: Aug. 5, 2019

Stage 4 - Remaining Tasks to Be Completed through Stages1 through 3 (as of October 2019) The project is currently split into two separate plan set submittals: Phase 1A, which includes improvements located within the Caltrans Right of-Way at the intersection of El Camino Real and Churchill Avenue; and Phase 1B, which includes pathway improvements along the northern edge of Churchill Avenue between the El Camino Real and Castilleja Avenue Intersections. Based on recent discussions, the Phases are to be combined into a single plan set for City review and bidding purposes. In addition, a series of design changes are requested including removal of the proposed bike signal at the Churchill/ECR intersection and modifications to the bulbo uts, new traffic signal at the Churchill/ECR, Churchill/Madrone, and Churchill/Castilleja intersections, and relocation of the City’ s electrical transformers located on Palo Alto High School’s property.

Design and Permitting
• Combine Phase 1A and Phase 1B plan sets and supporting documents into single package. • Revise Intersection of El Camino Real and Churchill Avenue design and submit Caltrans • Encroachment Permit Application including: Plans, Specifications, and Engineer’s Estimates • Revise/Reissue 65% PS&E Submittal for overall project based on City comments (including landscape plans).
• Prepare 100% PS&E (Bid Documents) submittal and resubmit to City and Caltrans • Prepare technical specifications and cost estimate
• Revise Plat Maps and Legal Descriptions for required easement documents. • Coordinate improvements with PAUSD.
• Attend up to two (2) meetings with City/agency staff.

Environmental Clearance Documents/CEQA Checklist
• Prepare CEQA Checklist for categorically exempt project. • If required, prepare the following cultural resources reports:
o Area of Potential Effects (APE) Map
o Archaeological Survey Report (ASR), including Native American consultation o Historic Resources Compliance Report (HRCR)
• Meet with Caltrans staff to coordinate CE process.

Public Meeting Attendance
• Attend up to five (5) public meetings, including
o One (1) council meeting
o One (1) Planning and Transportation Commission meeting o One (1) School Board meeting
o One City School Traffic Committee meeting
o One Community meeting
Bid Assistance
• Assist City staff in preparation of any additional bid documents required for Public bid process. • Assist City in review of public bids.

Assumptions/Exclusions
• The above scope of work includes design and coordination efforts up to the issuance of construction bid documents and bid support. Construction support services are not included as part of this effort.

Amendment Number 2
Amendment Number 2 adds to the scope of services to include design support during construction, including:
• Attend a pre-construction meeting.
• Provide four (4) site visits to observe the construction of the civil related site work. • Assist and respond to the owner/client in civil related requests for information (RFI ’S) and review and approve contractor submittals during construction.
• Review change orders when needed.
(Contractor shall not engage in any work subject to prevailing wage under the California Labor Code).

DocuSign Envelope ID: C816DBD1-CD6C-4809-8C6C-CE3B1941C90C

6.a
Packet Pg. 54
Vers.: Aug. 5, 2019

EXHIBIT “B”

SCHEDULE OF PERFORMANCE

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.

Milestones Completion From NTP

1. Project Restart Meeting Week of 10/15/2019

2. Revise design based on City comments/direction 10/15-11/5/2019 (3 weeks)

3. Submit PS&E and supporting documents to City for review 11/5/20219

4. Submit PS&E and supporting documents to Caltrans 11/5/2019

5. City/Caltrans Review Period 12/5/2019

6. Revise Plans and Resubmit (100% PS&E) 12/2021

7. City/Caltrans Review period 12/2021-2/2022

8. Incorporate final comments/Finalize Plan 3/2022

9. Design Completion 5/2022

10. Design Support during Construction 10/2026

DocuSign Envelope ID: C816DBD1-CD6C-4809-8C6C-CE3B1941C90C

6.a
Packet Pg. 55
Vers.: Aug. 5, 2019

EXHIBIT “C”

COMPENSATION

AMENDED, REPLACES PREVIOUS

The CITY agrees to compensate the CONSULTANT for professional 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 hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below.

CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement.

BUDGET SCHEDULE NOT TO EXCEED AMOUNT
Stage 4
Remaining Task to be completed through Stages 1 through 3 (as of October 2019)
$96,000.00
Amendment No. 2 $30,000.00
Subtotal Basic Services $126,000.00
Additional Services (Not to Exceed) $25,000.00
Amendment No. 2 – Additional Services (Not to Exceed) $20,000.00 Maximum Total Compensation $171,000.00

REIMBURSABLE EXPENSES
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: None

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 CONSULTANT’s proposed maximum compensation, including reimbursable expense, 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 and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement.

DocuSign Envelope ID: C816DBD1-CD6C-4809-8C6C-CE3B1941C90C

6.a
Packet Pg. 56
Certificate Of Completion
Envelope Id: C816DBD1CD6C48098C6CCE3B1941C90C Status: Completed Subject: Please DocuSign: C20176858_Amend No2_Sandis_final.pdf Source Envelope:

Document Pages: 10 Signatures: 1 Envelope Originator:

Certificate Pages: 2 Initials: 0 Mimi Nguyen
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
[email protected]
IP Address: 199.33.32.254
Record Tracking
Status: Original
2/15/2022 9:55:10 AM
Holder: Mimi Nguyen
[email protected]
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp
Jeffery M. Setera
[email protected]
President
SANDIS
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 174.241.41.222
Signed using mobile
Sent: 2/15/2022 9:58:26 AM
Viewed: 2/15/2022 10:17:49 AM
Signed: 2/15/2022 10:19:16 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Shahla Yazdy
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 2/15/2022 10:19:18 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Elizabeth Egli
[email protected]
Managment Analyst
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Sent: 2/15/2022 10:19:18 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Witness Events Signature Timestamp

6.a
Packet Pg. 57
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 2/15/2022 9:58:27 AM
Certified Delivered Security Checked 2/15/2022 10:17:49 AM Signing Complete Security Checked 2/15/2022 10:19:16 AM Completed Security Checked 2/15/2022 10:19:18 AM
Payment Events Status Timestamps

6.a
Packet Pg. 58

City of Palo Alto (ID # 13903)
City Council Staff Report

Meeting Date: 2/28/2022

City of Palo Alto Page 1

Title: Staff and Utilities Advisory Commission Recommend the Council Adopt a Resolution Amending Utilities Rule and Regulation 11 (Billing, Adjustments and Payment of Bills) to Set a $5,000 Limit on Fee -Free Credit Card Payments and Apply a Cost -Recovery C harge for Credit Card Payments in Excess of $5,000
From: City Manager
Lead Department: Utilities

Recommendation
Staff and the Utilities Advisory Commission (UAC) recommend that the Council adopt a resolution amending Utilities Rule and Regulation 11 (Bil ling, Adjustments and Payment of Bills) to set a $5,000 limit on fee -free credit card payments for monthly utility bills, and apply a cost - recovery charge for credit card payments in excess of $5,000.

Executive Summary
Utilities’ Rules and Regulations go vern utility services in the City of Palo Alto (City) and the fees charged for those services. They are updated as needed to ensure Utilities’ procedures meet industry practices, standards, and requirements. The recommended amendment adds policies and proc edures to Rule and Regulation 11 (Billing, Adjustments and Payment of Bills). The additions are as follows: customers will be able to make credit card payments without incurring cost-recovery fees, up to a maximum of $5,000 per monthly account, and the Cit y will apply a cost-recovery charge (up to 2.7%) to recover credit card merchant fees charged to the City for any amounts charged over the $5,000 limit. Customers with balances greater than $5,000 can pay their bills with no additional fees via bank draft , automated clearing house (ACH), check, or wire transfer (Attachment A – Updated Version and Attachment B – Redlined Version).

Background
In 2006, the City created a credit card policy (ASD 1 -47) to codify City practices and establish guidelines on the acceptance of credit card payments. As part of the policy, the City did not charge a convenience fee for credit card payments. However, the City of Palo Alto Utilities (CPAU) did not accept credit card payments of more than $10,000 per month from a single account. The credit card limit was added to control the credit card processing fees which were absorbed by CPAU.

7 Packet Pg. 59

City of Palo Alto Page 2

In 2013, the City retired that credit card policy because CPAU wanted to provide more payment flexibility to their large commercial customer s who preferred to pay by credit card. At that time, only 14 customers, comprising 6.7% of CPAU’s 209 large commercial customers, used credit cards to pay their utility bills. By eliminating the $10,000 credit card limit, the incremental credit card fees for accounts greater than $10,000 was approximately $22,440 in 2013. Since then, the number of utility customers who pay their bills by credit card, and the value of credit card fees CPAU pays as a result, has increased dramatically.

Discussion
Historically, the majority of credit card fees for municipal fee transactions, classes, fines, and utility payments have been paid by the City without being passed on to customers and residents. More recently, in order to reduce and recover some of the credit car d fees, the Administrative Services Department (ASD) began including the cost of credit card fees into some fees for services, and exploring alternative payment methods to ensure this cost of doing business is not impacting the availability of funds for se rvice delivery while ensuring a smooth experience for the customer. As a first phase, in fiscal year (FY) 2022, staff implemented a new service delivery model for the remittance of transient occupancy taxes (TOT) payment processing from hotels and motels to an online platform managed by, Avenu Analytics. This transition included a change in processing fees for credit card usage; a processing fee is now assessed on customers for credit card payments for remittance of TOT. With this change, based on figures from FY 2020, the City can expect to avoid $60,000 to $90,000 in credit card processing fees related to TOT payments annually. The City is also developing a broader policy to ensure that cost recovery of credit card payments is included in the evaluation of service costs and consequently the fees for those services.

Because CPAU has faced large increases in credit card fees for utility payments in recent years, it is prudent for CPAU to implement a policy promptly to manage this escalating cost, and ensure the cost of services for delivery of utility services is appropriately distributed to the full customer base. Credit card fees for utility payments have increased by 141% in the past five years from $472,217 in FY 2017 to $1,139,418 in FY 2021. More cu stomers (both residential and commercial) are paying their utility bills by credit card due to customer convenience and benefits received from their credit card reward programs. In addition, credit card companies are increasing their credit card charges. To address this growing cost, CPAU recommends implementing a maximum fee-free credit card payment of $5,000 per monthly utility account to reduce and manage the financial impact of credit card fees.

CPAU predicts that this new credit card maximum will a ffect approximately 1% of current payments. In November 2021, CPAU received 9,200 credit card payments ranging from $1 to $75,000. Of the 9,200 credit card payments, 9,100, or 98.9% of the payments, were less than $5,000, leaving an estimated 100 customer s potentially impacted by this new maximum fee - free credit card payment limit of $5,000. Over the past several months, CPAU has contacted large commercial customers paying via credit card and have converted some to bank draft or wire transfer (estimated r eduction of $100,000 in annual credit card fees), while others 7 Packet Pg. 60

City of Palo Alto Page 3

preferred to continue paying via credit card due to convenience. With the new maximum fee - free credit card amount of $5,000, approximately 100 utility customers will be impacted if they continue to pay utility bills via credit card. Staff will contact these customers to alert them of the credit card payment change and request that they switch to an alternative payment method (i.e., bank draft, ACH, check, or wire transfer) to avoid the cost re covery fee. This will potentially reduce the total credit card fee amount charged to the City by 50%, or $550,000. If these customers elect to continue to pay via credit card, CPAU will assess a credit card cost - recovery fee of up to 2.7%1 of the payment amount greater than $5,000.

Staff plans to have the customer portal, interactive voice response (IVR), and cashiering systems configured to limit payments to $5,000 per credit card payment per monthly account. System reconfiguration and programming may take several months to one year because it may require professional services and contract amendments with the respective vendors. Staff currently estimates one -time professional service costs ranging from $25,000 - $75,000 for system reconfiguration of th e various payment platforms in addition to 200 – 350 hours of staff time (or up to three months) to assist with testing and implementation. In the meantime, staff plans to monitor Utilities credit card payments on a routine basis to determine if customers are paying over $5,000 per account per invoice using a credit card. Staff plans to reach out to these customers over the phone or provide written notification to advise this is no longer possible without an additional cost -recovery fee. Should credit car d payments continue to exceed $5,000, effective March 1 , 2022, staff will assess a cost -recovery charge of up to 2.7% of the payment amount greater than $5,000 in order to recover credit card merchant fees charged to the City. Utilities -related credit card processing fees average between 0.5% and 2.7% of the total payment amount depending on the type of credit card used by the customer.

Timeline
CPAU will notify customers of the credit card change by direct mail and through the customer account management portal MyCPAU during February and March 2022. CPAU will implement the maximum credit card payment change effective on March 1, 2022.

Resource Impact
CPAU staff expects a reduction of approximately $550,000 in credit card fees on an annual basis as a resul t of the credit card limit and direct communication with customers. There are sufficient resources in the FY 2022 Operating Budget to enable these necessary changes. CPAU will continue to monitor credit card payment activity and fees. Staff currently estim ates one- time professional service costs ranging from $25,000 - $75,000 for system reconfiguration of the various payment platforms in addition to 200 – 350 hours of staff time (or up to three dedicated months) to assist with testing and implementation.

Stakeholder Engagement

1 Utilities-related credit card processing fees range between 0.5% and 2.7% of the total payment amount, depending on the type of credit card used by the customer.

7 Packet Pg. 61

City of Palo Alto Page 4

The UAC approved staff’s recommendation on January 5, 2022 ( Report #13866). The UAC was in agreement regarding recovering credit card fees passed through to the City and ratepayers.

There was discussion on whether the limit should be be set to a lower amount to rec over more credit card fees and the level of effort that would be needed to change the credit card limit in the future. Due to the high number of utility accounts with arrearages and balances greater than $1,000, UAC agreed with the $5,000 credit card limi t. System reconfiguration of the customer portal, IVR, and cashiering application may require professional services from vendors. After the configuration and programming algorithm is completed, the limit amount can be adjusted in the future.

Environmental Impact
The UAC’s recommendation on this change to Rule 11 does not require California Environmetnal Quality review since this action is not a project with a potential impact on the environment, under Public Resources Code section 21065.

City needs to be clear on whether it will impose the fee or not, otherwise legally this is too vague. This now works as written (with deletion).

Attachments:
• Attachment7.a: Attachment A: Rule and Regulation 11 (Billing, Adjustments and Payment of Bills)
• Attachment7.b: Attachment B: REDLINED Rule and Regulation 11 (Billing, Adjustments and Payment of Bills)
• Attachment7.c: Attachment C: Resolution
7 Packet Pg. 62

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS
RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 3-01-2022
Sheet No 1
A. BILLING UNITS
All metered billing units used for billing purposes shall be de termined to the nearest whole unit.

Such units may include, kW, kWh, kVA, kVar, hp, Therms, and/or ccf.

B. PAYMENT OF BILLS
CPAU issues bills to its Customers on a regular interval. Bill s shall be deemed received upon physical or electronic delivery to Customer, or three calendar days following the deposit of the bill in the United States Mail to the Customer’s billing address. Bill s for CPAU Services are due and payable 20 calendar days following issuance of the bill statement. Bills unpaid after the 20 day period are considered delinquent (“past due”). If a Customer’s payment is not received by CPAU after 25 days of bill issuance, the outstanding balance will be assessed a late payment Charge.

For the convenience of Customers there are a number of ways to pay CPAU bills:

1. By enclosing the bill stub and check and mailing to: CPAU, P.O. Box 10097, Palo Alto, CA 94303-0897.

2. By enrolling in auto-pay bank draft. Payments will be drafted from a Customer’s designated checking or saving account and automatically applied to the Customer’s Utility Account for each current Billing Period. Customers may enroll by calling Utilities Customer Service at 650-329-2161 or by signing up thr ough the “MyCPAU” on-line port al at https://mycpau.cityofpaloalto.org/portal/.

3. By establishing automated clear ing house and/or wire transfer payments. To do this, Customers may call Utilities Customer Service at 650-329-2161.

4. By paying in person at the Civic Center, Revenue Collections or the Utilities Customer Service Business counter, Ground Floor, 250 Hamilton Avenue, Palo Alto between the hours of 8:00 a.m. and 4:30 p.m.
a. Credit card payments are accepted at both Revenue Collectio ns and the Utilities Customer Service Business counter. Effective March 1, 2022, Customers are limited to a maximum credit card payment of $5,000 per account, per mon thly invoice, without incurring additional cost recovery fees. Customers may call Utilities Customer Service at 650-329-2161 for a current list of acceptable credit cards. b. Effective March 1, 2022, credit card payments over the $5, 000 limit listed in 4(a) Attachment A

7.a
Packet Pg. 63

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 3-01-2022
Sheet No 2

will be assessed a cost recovery fee of up to 2.7 percent 1 of the amount over $5,000,
to recover the merchant fees imposed upon CPAU for these payments. c. Customers can pay delinquent bills with a credit card by p hone by calling the Utilities Customer Service Center during business hours.

5. By depositing the payment in the walk-up Night Depository Box in the front of the City Hall building on the Civic Center Plaza, or at the drive-up Night De pository Box in the Civic Center Garage, on “A” Level.

6. By paying online through the “MyCPAU” on-line portal, accessib le from the Utilities’ website at https://www.cityofpalo alto.org/Departments/Utilities. Payment through the “MyCPAU” on-line portal may be made by credit card or by bank draft.

7. By enrolling at a financial institution or service company tha t can provide electronic payments to CPAU on behalf of the Customer.

8. By completing a “Revert to Owner (RTO) Agreement” in order to maintain Utilities Service to units during the interim period between tenants (this option is available to Customers who are property managers and landlords).

C. BUDGET BILLING PAYMENT PROGRAM

The Budget Billing Payment Program establishes equalized monthly payments and is available to all Residential Customers who qualify as set forth below:

1. Customers may join the Budget B illing Payment Program at any t ime providing the Customer Account balance is zero and the Customer has not been previously removed from the Budget Billing Program for non-payment.

2. A Customer electing to utilize the program shall agree to make monthly payments based on CPAU’s forward estimate of the Customers’ Charges for the subse quent twelve-month period.

3. CPAU does not guarantee that the total actual Charges will not exceed, or be less than, its original estimate. Customers should review their Account on an ongoing basis and request

1 Utilities-related credit card processing fees range between 0.5% and 2.7% of the payment amount, depending on the type of credit card used by the Customer.

7.a
Packet Pg. 64

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 3-01-2022
Sheet No 3

changes to the budget billing amount in response to changes in their household usage. CPAU may require that Customers pay a revised monthly amount as a condition to continuing participation in the plan, if CPAU determines that substantial changes in Customer usage patterns or consumption has occurred.

CPAU will perform an annual true-up on Customer Budget Billing Accounts every twelve months. This will result in either a Customer credit for CPAU over-collection or an outstanding bal ance due from the Customer for under-collection by CPAU during the prior twelve months.

D. DISCONTINUANCE OF BUDGET BILLING

The Customer’s Budget Billing Payment Program shall remain in e ffect, subject to review of the monthly payment amount, and shall terminate when:

1. The Customer notifies CPAU to t erminate participation in the Budget Billing Program;

2. CPAU notifies the Customer of the termination of its Budget Bi lling Payment Program:

3. The Customer no longer takes Se rvice at the Premises; or

4. The Customer owes an amount of tw o or more monthly payments. However, if the Customer eliminates the delinquency, removal from the program will not occur.

Upon termination of either Utilities Service or participation in the Budget Billing Payment Program, any amount owed by the Customer for actual Charges shall immediately become due and payable or any amount due to the Customer shall be refunded or credited.

E. INSUFFICIENT FUNDS FOR PAYMENT

1. A Service Charge will be made and collected by the City of Palo Alto for each check returned by a bank to CPAU for the reason of insufficient funds in accordance with Rate Schedule C-1.

2. Unsuccessful bank drafts due to insufficient funds will be sub ject to late payment fees in accordance with Rate Schedule C-1.

F. PRORATION OF BILLS

1. Bills for Utilities Services will be prepared for each Billing Period in accordance with the applicable Rate Schedules or CPAU contract applicable to the Premises served.

7.a
Packet Pg. 65

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 3-01-2022
Sheet No 4

2. Proration is intended to produ ce a uniform average unit cost for the commodity regardless of the number of days in the Service period. Services will be prorated if the number of actual Service days differs from the number of days in the applicable Billing Period. Electric Demand (kW) and Electric Power Factor Charges will not be prora ted. Proration will not occur for those Rate Schedules that contain Meter fees, connection fees, deposits, and other miscellaneous fees.

3. If Rate Schedules change during the Billing Period, Charges will be prorated on the basis of the number of days covered by the previous Rate Schedule and the number of days covered by the new Rate Schedule.

G. DELINQUENT BILLS AND LATE PAYMENT CHARGES

1. Utilities Charges incurred in the applicable Billing Period are due and payable by the “Due Date” indicated on the front of the bill statement. Bills unpaid by the due date are delinquent and a late payment Charge will be added to the outstanding bala nce as specified in Rate Schedule C-1.

2. Residential and commercial Accounts having unpaid balances older than 180 days shall be subject to collection action by the City. Collection action may result in notifications to credit reporting agencies.

3. Late payment Charges may be suspended by CPAU if the Customer is withholding full or partial payment pending final resolution of disputed bill. The late payment Charge may be waived by CPAU based upon the ultimate resolution of a disputed Charge.

4. Full or partial payments towards outstanding balances will be applied to the oldest outstanding Charges. Failure to pay outstanding balances will r esult in late fees and termination of Service for non-payment.

5. In the event that a Customer donating to the ProjectPLEDGE Pro gram has a delinquent bill, the late Charge percentage will not be applied to the amount of the Customer’s pledge.

However, the Customer’s participation in ProjectPLEDGE will be discontinued after three consecutive Billing Periods in which the Customer has not included their pledge amount in the bill.

6. Customers whose Utility bills include payments of principal and/or interest on loans from CPAU which are secured by deeds of trust on real property shall be charged a late payment Charge when any current Utility bill includes an unpaid installment on such loan from a prior

7.a
Packet Pg. 66

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 3-01-2022
Sheet No 5

bill. Nothing in this Rule and Regulation shall be construed to alter in any way the duty of the Customer to pay any installment on a loan from CPAU when due, or to alter the rights of CPAU to enforce the payment of such installments.

H. DISPUTED BILLS

If bill accuracy is questioned or disputed by the Customer, Customers shall request an explanation from CPAU within the current Billing Period or as soon as reasonably possible. After reviewing the disputed bill, CPAU will:

1. Issue a corrected bill to the Cus tomer or reflect the correcti on on the bill in a subsequent Billing Period.

2. Determine if an amortization period (“payment arrangement”) fo r the Charge-in-question shall be provided by CPAU. If a payment arrangement is offered by CPAU and agreed to by the Customer, Utility Services will not be discontinued for nonpayment while the Customer complies with the payment arrangement for the “past due” balance , and subsequent Utilities bills are paid on time during the payment arrangement period.

3. Advise the Customer that the bill is correct as presented. The Customer may choose, at the Customer’s option, to have the Meter removed for testing under the Provisions of Rule 15 “Metering” and payment of the applicable fee found in Rate Schedule C-1 “Exchange Meter for Accuracy Test”.

I. METERED SERVICE BILLING ERRORS AND ADJUSTMENTS

Where a Customer has been undercharged or overcharged for metered Service, the date and cause of which can be reliably established by CPAU, the retroactive billing adjustment (back bill or refund) shall not exceed three years. The maximum bill adjustment for u ndercharges shall be $500 per Account, per incident.

1. When, as a result of either a CPAU or a Customer-initiated accuracy test, an Electric or Gas Meter is found to register more than two percent (2%) fast or a Water Meter is found to register more than one and a half percent (1.5%) fast, CPAU will refund the Customer the overcharge based upon the corrected Meter readings for the period the Meter was in use, or three years, whichever is less. Any applicable late payment will be waived.

2. When, as a result of a test, a Customer’s Electric or Gas Meter is found not to register or to register more than two percent (2%) slow, or a Water Meter is f ound not to register or to register more than one and half percent (1.5%) slow, CPAU may bill the Customer for the

7.a
Packet Pg. 67

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 3-01-2022
Sheet No 6

undercharge base on an average bill. The bill will be computed based on an estimate of the Customer’s consumption during a prior month in the same season or on the consumption in the same period of the prior three years.

3. When, a billing or consumption pro blem has been investigated and verified, Utilities will attempt to notify the Customer within 30 working days or a reasonable amount of time depending on the complexity of the error.

4. When CPAU is the cause of an error that results in an overcharge, CPAU will refund the full amount of the overcharge, subject to the three year retroactive billing adjustment period described above. Back bills for undercharges will be determined and approved by the General Manager of Utilities, or delegate, and may be waived in an amount up to $2,500 per Customer Account, per incident, subject to the three year retro active billing adjustment period described above.

J. UNMETERED SERVICE BILLING ERRORS AND ADJUSTMENTS

Where a Customer has been undercharged or overcharged for unmetered Service, the date and cause of which can be reliably established where a customer has been undercharged or overcharged, the retroactive billing adjustment (back bill or refund) shall not exceed three years.

K. THEFT OF SERVICE

Where there is evidence that meter tampering or theft of Utility Service has occurred, CPAU will retroactively bill, and collect any underpayment or nonpayment of Charges as well as any labor or material costs related to investigating the theft and making any required corrections. The applicable period to assess Charges shall commence from the date it can be reasonably established the theft began to the date in which the underpayment was discovered and initially established. The labor and material costs related to investigating the theft will be calcu lated in accordance with Utility Rate Schedule C-1 and/or any other a pplicable Utility Rate schedules . All underpayments or non- payments shall become immediately due and payable. Customers committing theft of Utility Service may also be subject to legal action pursuant to Rule 1, California Penal Code sections 487,496, 498, 591, 592, 593 and California Civil Code sections 1882 through 1882.6.

Customers billed for theft of service can dispute the charges by following the process described in Rule and Regulation 11.H. If that process does not resolve the matter, customers billed for theft of service may, within thirty (30) calendar days, request (by telephone, in writing, or in person) an administrative hearing. If a hearing is requested, the city manager or his designee shall schedule a date and time for said hearing as soon as possible after the request is filed, but no later than ten (10) business days after the filing of such request for hearing.

7.a
Packet Pg. 68

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 3-01-2022
Sheet No 7

At the hearing, the customer billed for theft of service may offer evidence in person or in the form of a written statement, setting forth the reasons why the customer believes the determination of theft is incorrect. Utilities personnel shall also be allowed to offer whatever evidence they may have as to why they have established the customer engaged in utilities theft. The city manager or his designee shall make a determination as to whether the customer is liable for the charges for theft of service.

L. WATER LEAK CREDITS

The General Manager of Utilities, or delegate, may approve Water leak adjustments for Customer’s Water and Wastewater Accounts (when Wastewater charges are based on Water consumption) under the following conditions:

1. Customers having higher-than-average Water consumption for a particular billing period due to leaks may request a Water and/or Wastewater Leak bill adjustment, as applicable.

2. Applications for Water and Wastewater leak bill adjustments must be submitted to the Utilities Department within 60 days from the bill’s due date, for the bill covering the period in which the higher-than-average Water consumption occurred.

3. Customers are restricted to one Water and/or Wastewater leak billing adjustment in each 36-month period.

4. Higher-than-average Water consumption is defined as the volume of water greater than 100% of the Customer’s normal consumption compared to the Customer’s historical consumption over the prior three years, calculated by CPAU using prior averages for the relevant billing period(s).

5. Leaking systems must be repaired before the Customer receives a Water or Wastewater leak bill adjustment, to ensure future bills are not impacted by the same leak.

Shutting off the source of the leak is not considered a repair. Undetermined or general high water consumption is not eligible for adjustment.

6. Water leak bill adjustments will be applied to Customer bills based on the higher-than- average water volumes calculated by CPAU. Water leak bill adjustments will be applied to 50% of the calculated higher than average water volume, to a limit of $2,500, using the Tier 1 Commodity Rate cost of the appropriate residential or commercial Water Rate Schedule.

7. Wastewater bill adjustments related to Water leaks will be made based upon the adjusted Water volume, and are not included in the $2,500 Water leak bill adjustment limit.

8. Utility User Tax (UUT) billing adjustments related to Water leaks will be made based upon the adjusted Water volume and are not included in the $2,500 Water leak bill adjustment limit.

7.a
Packet Pg. 69

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 3-01-2022
Sheet No 8

9. Administrative decisions regarding Water and Wastewater leak bill adjustments, including eligibility, volume calculations, and adjustment costs will be made by the General Manager of Utilities, or delegate, and are final.

M. REFUSE BILLING ERRORS, DISPUTES AND ADJUSTMENTS

1. Adjustments to the Refuse bill s hall be requested to the City’ s Collector. Customers with adjustments unresolved by the City’s Collector, may dispute the ir claim with the City’s Public Works Department, Refuse. Billing adjustments will be re solved by following the City’s Rules and Regulations, Chapter 5.20 of the Palo Alto Mun icipal Code and specific regulations promulgated by the City Manager pursuant to the aut hority established in Chapter 5.20.

2. When an error in billing has occurred, the date and cause of which can be reliably established where a Customer has been undercharged or overcharged, the retroactive billing adjustment shall not exceed three years.

(END)

7.a
Packet Pg. 70

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS
RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 4-2-20183-01-2022
Sheet No 1
A. BILLING UNITS
All metered billing units used for billing purposes shall be de termined to the nearest whole unit.

Such units may include, kW, kWh, kVA, kVar, hp, Therms, and/or ccf.

B. PAYMENT OF BILLS
CPAU issues bills to its Customer s on a regular interval. Bills shall be deemed received upon physical or electronic delivery to Customer, or three calendar days following the deposit of the bill in the United States Mail to the Customer’s billin g address. Bills for CPAU Services are due and payable 20 calendar days following issuance of the bill statement. Bills unpaid after the 20 day period are considered delinquent (“past due”). If a Customer’s payment is not received by CPAU after 25 days of bill issuance, the outstanding balance will be assessed a late payment Charge.

For the convenience of Customers there are a number of ways to pay CPAU bills:

1. By enclosing the bill stub and check and mailing to: CPAU, P.O. Box 10097, Palo Alto, CA 94303-0897.

2. By enrolling in the Utilities Bank Draft Program.auto-pay bank draft. Payments will be drafted from a Customer’s designated checking or saving account and automatically applied to the Customer’s Utility Account for each current Billing Period. Customers may enroll by calling Utilities Customer Service at 650-329-2161 or by signing up through the “MyCPAU” on-line portal at https://mycpau.cityofpaloalto.org/portal/.

3. By establishi
ng enrolling through automated clearing house and/or wire transfer payments.

To do this, Customers may contactcall Utilities Customer Service at 650-329-2161.

4. By paying in Personperson at the Ci
vic Center, Revenue Collections , 1st or the Utilities
Customer Service Business counter, Ground Floor, 250 Hamilton Avenue, Palo Alto between the hours of 8:00 a.m. and 4:30 p.m. The City offices are closed on alternate Fridays. Customers should call 650-329-2317 to ensure the office is open. a. Credit card payments are accepted at both Revenue Collections. Aand the Utilities Customer Service Business counter. Effective March 1, 2022, Customers are limited to make a maximum credit card payment of $5,000 per account, per monthly invoice, without incurring additional cost recovery fees. Customers should may call Utilities Customer Service at 650-329-2161 for a current list of acceptable to see which credit cards are accepted.
b. Effective March 1, 2022, credit card payments over the $5,000 limit listed in 4(a) Attachment B

7.b
Packet Pg. 71

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 4-2-20183-01-2022
Sheet No 2

will be assessed a cost recove ry fee of up to 2.7 percent 1 of the amount dueover $5,000, to recover the merchant fees imposed upon CPAU for these payments. c. Customers can pay delinquent bills w ith a credit card by phone by calling the UtilityUtilities Customer Service Center during business hours.

45. By depositing the payment in the walk-up Night Depository Box in the front of the City Hall building on the Civic Center Plaza, or at th e drive-up Night Depository Box in the Civic Center Garage, on “A” Level.

6. By paying online through the “My Utilities Account” applicationMyCPAU” on-line portal, accessible from the Utilities’ website at
https://www.cityofpaloalto.org/Departments/Utilities. Payment through the “My Utilities Account”MyCPAU” on-line portal may be made by credit card or by bank draft.

7. By enrolling at a financial institution or se rvice company that can provide electronic payments to CPAU on behalf of the Customer.

By Property Managers8. By completing a “Revert to Owner (RTO) Agreement” in order to maintain utility serviceUtilities Service to units during the interim period between tenants. (this option is available to Customers who are property managers and landlords).

C. BUDGET BILLING PAYMENT PROGRAM

The Budget Billing Payment Program establishes equalized monthly payments and is available to all Residential Customers who qualify as set forth below:

1. Customers may join the B udget Billing Payment Program at any time providing the Customer Account balance is zero and the Customer has not been previously removed from the Budget Billing Program for non-payment.

2. A Customer electing to utilize the program sh all agree to make monthly payments based on CPAU’s forward estimate of the Customers’ Charges for the subsequent twelve-month period.

3. CPAU does not guarantee that the total actual Charges will not exceed, or be less than, its

1 Utilities-related credit card processing fees range between 0.5% and 2.7% of the payment amount, depending on the type of credit card used by the Customer.

7.b
Packet Pg. 72

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 4-2-20183-01-2022
Sheet No 3

original estimate. Customers should review their Account on an ongoing basis and request changes to the budget billing amount in response to changes in their household usage. CPAU may require that Customers pay a revised monthly amount as a condition to continuing participation in the plan, if CPAU determines that substantial changes in Customer usage patterns or consumption has occurred.

4. CPAU will perform an annual true-up on Customer Budget Billing Accounts every twelve months. This will result in either a Customer credit for CPAU over-collection or an outstanding balance due from the Customer for under-collection by CPAU during the prior twelve months.

D. DISCONTINUANCE OF BUDGET BILLING

The Customer’s Budget Billing Payment Program shall remain in effect, subject to review of the monthly payment amount, and shall terminate when:

1. The Customer notifies CPAU to terminate pa rticipation in the Budget Billing Program;

2. CPAU notifies the Customer of the termina tion of its Budget Billing Payment Program:

3. The Customer no longer takes Service at the Premises; or

4. The Customer owes an amount of two or more monthly payments. However, if the Customer eliminates the delinquency, removal from the program will not occur.

Upon termination of either UtilityUtilities Service or participation in the Budget Billing Payment Program, any amount owed by the Customer for actual Charges shall immediately become due and payable or any amount due to the Customer shall be refunded or credited.

E. INSUFFICIENT FUNDS FOR PAYMENT

1. A Service Charge will be made and collected by the City of Palo Alto for each check returned by a bank to CPAU for the reason of insufficient funds in accordance with Rate Schedule C-1.

2. Unsuccessful bBank dDrafts due to insufficient funds will be subject to late payment fees in accordance with Rate Schedule C-1.

F. PRORATION OF BILLS

7.b
Packet Pg. 73

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 4-2-20183-01-2022
Sheet No 4

1. Bills for UtilityUtilities Services will be prepared for each Billing Period in accordance with the applicable Rate Schedules or CPAU contract applicable to the Premises served.

2. Proration is intended to produ ce a uniform average unit cost for the commodity regardless of the number of days in the Service period. Services will be prorated if the number of actual Service days differs from the number of days in the applicable Billing Period. Electric Demand (kW) and Electric Power Factor Char ges will not be prorated. Proration will not occur for those Rate Schedules that contain Meter fees, connection fees, deposits, and other miscellaneous fees.

3. If Rate Schedules change during the Billing Peri od, Charges will be prorated on the basis of the number of days covered by the previous Rate Schedule and the number of days covered by the new Rate Schedule.

G. DELINQUENT BILLS AN D LATE PAYMENT CHARGES

1. Utilities Charges incurred in the applicable Billing Period are due and payable by the “Due Date” indicated on the front of the bill statement. Bills unpaid by the due date are delinquent and a late payment Charge will be added to th e outstanding balance as specified in Rate Schedule C-1.

2. Residential and commercial Accounts having unpaid balances older than 180 days shall be subject to collection action by the City. Collection action may result in notifications to credit reporting agencies.

3. Late payment Charges may be suspended by CPAU if the Customer is withholding full or partial payment pending final resolution of disputed bill. The late payment Charge may be waived by CPAU based upon the ultimate resolution of a disputed Charge.

4. Full or partial payments towards outstandi ng balances will be ap plied to the oldest outstanding Charges. Failure to pay outstanding balances will result in late fees and termination of Service for non-payment.

5. In the event that a Customer donating to th e ProjectPLEDGE Program has a delinquent bill, the late Charge percentage will not be applie d to the amount of th e Customer’s pledge.

However, the Customer’s participation in ProjectPLEDGE will be discontinued after three consecutive Billing Periods in which the Customer has not included their pledge amount in the bill.

7.b
Packet Pg. 74

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 4-2-20183-01-2022
Sheet No 5

6. Customers whose Utility bills include payments of principal and/or interest on loans from CPAU which are secured by deeds of trust on real property shall be charged a late payment Charge when any current Utility bill includes an unpaid installment on such loan from a prior bill. Nothing in this Rule and Regulation shall be construed to alter in any way the duty of the Customer to pay any installment on a loan from CPAU when due, or to alter the rights of CPAU to enforce the payment of such installments.

H. DISPUTED BILLS

If bill accuracy is questioned or disputed by the Customer, Customers shall request an explanation from CPAU within the current Billing Period or as soon as reasonably possible. After reviewing the disputed bill, CPAU will:

1. Issue a corrected bill to the Customer or refl ect the correction on the bill in a subsequent Billing Period.

2. Determine if an amortizati on period (“payment arrangement”) for the Charge-in-question shall be provided by CPAU. If a payment arrangement is offered by CPAU and agreed to by the Customer, Utility Services will not be discontinued for nonpayment while the Customer complies with the payment arrangement for the “past due” balance , and subsequent Utilities bills are paid on time during the payment arrangement period.

3. Advise the Customer that the bill is correct as presented. The Customer may choose, at the Customer’s option, to have the Meter removed for testing under the Provisions of Rule 15 “Metering” and payment of the applicable fee found in Rate Schedule C-1 “Exchange Meter for Accuracy Test”.

I. METERED SERVICE BILLING ERRORS AND ADJUSTMENTS

Where a Customer has been undercharged or overcharged for metered Service, the date and cause of which can be reliably established by CPAU, the retroactive billing adjustment (back bill or refund) shall not exceed three years. The maximum bill adjustment for undercharges shall be $500 per Account, per incident.

1. When, as a result of either a CPAU or a Customer-initiated accuracy test, an Electric or Gas Meter is found to register more than two pe rcent (2%) fast or a Water Meter is found to register more than one and a half percent (1.5%) fast, CPAU will refund the Customer the overcharge based upon the corrected Meter readings for the period the Meter was in use, or three years, whichever is less. Any applicable late payment will be waived.

7.b
Packet Pg. 75

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 4-2-20183-01-2022
Sheet No 6

2. When, as a result of a test, a Customer’s Electric or Gas Meter is found not to register or to register more than two percen t (2%) slow, or a Water Meter is found not to register or to register more than one and half percent (1.5%) slow, CPAU may bill the Customer for the undercharge base on an average bill. The bill will be computed based on an estimate of the Customer’s consumption during a prior month in the same season or on the consumption in the same period of the prior three years.

3. When, a billing or consumption problem has been investigated and verified, Utilities will attempt to notify the Customer within 30 working days or a reasonable amount of time depending on the complexity of the error.

4. When CPAU is the cause of an error that results in an overcharge, CPAU will refund the full amount of the overcharge, subject to the thr ee year retroactive bill ing adjustment period described above. Back bills for undercharges will be determined and approved by the General Manager of Utilities, or delegate, and may be waived in an amount up to $2,500 per Customer Account, per incident, subject to th e three year retroactive billing adjustment period described above.

J. UNMETERED SERVICE BILLING ERRORS AND ADJUSTMENTS

Where a Customer has been undercharged or overcharged for unmetered Service, the date and cause of which can be reliably established where a customer has been undercharged or overcharged, the retroactive billing adjustment (back bill or refund) shall not exceed three years.

K. THEFT OF SERVICE

Where there is evidence that meter tampering or theft of Utility Service has occurred, CPAU will retroactively bill, and collect any underpayment or nonpayment of Charges as well as any labor or material costs related to investigating the theft and making any required corrections. The applicable period to assess Charges shall comm ence from the date it can be reasonably established the theft began to the date in which the underpayment was discovered and initially established. The labor and material costs related to investigating the theft w ill be calculated in accordance with Utility Rate Schedule C-1 and/or any other applicable Util ity Rate schedules. All underpayments or non- payments shall become immediately due and payable. Customers committing theft of Utility Service may also be subject to legal action pursuant to Rule 1, California Penal Code sections 487,496, 498, 591, 592, 593 and California Civil Code sections 1882 through 1882.6.

Customers billed for theft of service can dispute the charges by following the process described in Rule and Regulation 11.H. If that process does not resolve the matter, customers billed for theft of service may, within thirty (30) calendar days, request (by telephone, in writing, or in person) an

7.b
Packet Pg. 76

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 4-2-20183-01-2022
Sheet No 7

administrative hearing. If a hearing is requested, the city manager or his designee shall schedule a date and time for said hearing as soon as possible after the request is filed, but no later than ten (10) business days after the filing of such request for hearing.

At the hearing, the customer billed for theft of service may offer evidence in person or in the form of a written statement, setting forth the reasons why the customer believes the determination of theft is incorrect. Utilities personnel shall also be allowed to offer whatever evidence they may have as to why they have established the customer engaged in utilities theft. The city manager or his designee shall make a determination as to whether the customer is liable for the charges for theft of service.

L. WATER LEAK CREDITS

The General Manager of Utilities, or delegate, may approve Water leak adjustments for Customer’s Water and Wastewater Accounts (when Wastewater charges are based on Water consumption) under the following conditions:

1. Customers having higher-than-average Water consumption for a particular billing period due to leaks may request a Water and/or Wastewater Leak bill adjustment, as applicable.

2. Applications for Water and Wastewater leak bill adjustments must be submitted to the Utilities Department within 60 days from the bill’s due date, for the bill covering the period in which the higher-than-average Water consumption occurred.

3. Customers are restricted to one Water and/or Wastewater leak billing adjustment in each 36-month period.

4. Higher-than-average Water consumption is defined as the volume of water greater than 100% of the Customer’s normal consumption compared to the Customer’s historical consumption over the prior three years, calculated by CPAU using prior averages for the relevant billing period(s).

5. Leaking systems must be repaired before the Customer receives a Water or Wastewater leak bill adjustment, to ensure future bills are not impacted by the same leak.

Shutting off the source of the leak is not considered a repair. Undetermined or general high water consumption is not eligible for adjustment.

6. Water leak bill adjustments will be applied to Customer bills based on the higher-than- average water volumes calculated by CPAU. Water leak bill adjustments will be applied to 50% of the calculated higher than average water volume, to a limit of $2,500, using the Tier 1 Commodity Rate cost of the appropriate residential or commercial Water Rate Schedule.

7. Wastewater bill adjustments related to Water leaks will be made based upon the adjusted Water volume, and are not included in the $2,500 Water leak bill adjustment limit.

7.b
Packet Pg. 77

BILLING, ADJUSTMENTS AND PAYMENT OF BILLS

RULE AND REGULATION 11

CITY OF PALO ALTO

UTILITIES RULES AND REGULATIONS
Issued by the City Council
Effective 4-2-20183-01-2022
Sheet No 8

8. Utility User Tax (UUT) billing adjustments related to Water leaks will be made based upon the adjusted Water volume and are not included in the $2,500 Water leak bill adjustment limit.

9. Administrative decisions regarding Water and Wastewater leak bill adjustments, including eligibility, volume calculations, and adjustment costs will be made by the General Manager of Utilities, or delegate, and are final.

M. REFUSE BILLING ERRORS, DISPUTES AND ADJUSTMENTS

1. Adjustments to the Refuse bill shall be reque sted to the City’s Collector. Customers with adjustments unresolved by the City’s Collector , may dispute their claim with the City’s Public Works Department, Refuse. Billing adju stments will be resolved by following the City’s Rules and Regulations, Chapter 5.20 of the Palo Alto Municipal Code and specific regulations promulgated by the City Manager pursuant to the authority established in Chapter 5.20.

2. When an error in billing has occurred, the date and cause of which can be reliably established where a Customer has been undercharged or overcharged, the retroactive billing adjustment shall not exceed three years.

(END)

7.b
Packet Pg. 78
6055595

Attachment C
*Yet to be Passed*
Resolution No.

Resolution of the Council of the City of Palo Alto Amending Utilities Rule and Regulation 11 (Billing, Adjustments and Payment of Bills)

R E C I T A L S

A. In 2006, the City of Palo Alto created a credit card policy (ASD 1-47) to establish guidelines on the acceptance of credit card payments. The City did not charge a convenience fee for credit card payments. To limit credit card processing fees absorbed by the City of Palo Alto Utilities (CPAU), CPAU did not accept credit card payments of more than $10,000 per month from a single account.

B. The $10,000 payment limit was lifted in 2013, in order to provide more payment flexibility to CPAU’s large commercial customers.

C. Since then, more customers have been paying their utility bills by credit card. In addition, credit card companies have been increasing their credit card charges.

Credit card fees for utility payments have increased by 141% in the past five years from $472,217 in FY 2017 to $1,139,418 in FY 2021.

D. In November 2021, CPAU received 9,200 credit card payments ranging from $1 to $75,000. Of the 9,200 credit card payments; 9,100, or 98.9%, of the payments were less than $5,000.

E. S
taff recommends amending Utility Rule and Regulation 11 to set $5,000 as the maximum amount customers may charge when paying their utility bill via credit card without an additional cost recovery fee of up to 2.7% of the amount charged over $5,000. With the new maximum fee-free credit card amount of $5,000, staff will contact approximately 100 utility customers and recommend they switch to an alternative payment method, which would potentially reduce the total credit card fee amount charged to the City by 50%, or $550,000.

NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rule and Regulation 11 (Billing, Adjustments and Payment of Bills) is hereby amended as attached and incorporated. Utility Rule and Regulation 11, as amended, shall become effective March 1, 2022.

//

//

//

7.c
Packet Pg. 79
6055595

//

SECTION 2. The Council finds that the adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21065 or CEQA Guidelines Section 15378(b)(2), thus, no environmental assessment under the California Environmental Quality Act is required.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST: APPROVED:

City Clerk Mayor

APPROVED AS TO FORM:

City Manager

Assistant City Attorney

Director of Utilities

7.c
Packet Pg. 80

City of Palo Alto (ID # 13852)
City Council Staff Report

Meeting Date: 2/28/2022

City of Palo Alto Page 1

Title: Approval of a Five -Year Contract C22181932 with Sierra Traffic Markings, Inc in the Amount of $850,000 to Provide On -Call Minor Roadway Improvements
From: City Manager
Lead Department: Transportation Department

Recommendation
Staff recommends that the City Council authorize the City Manager or his designee to execute contract C22181932 with Sierra Traffic Markings, Inc. (Attachment A), for a period of five years in an amount not to exceed $850,000 for on -call general street services, including installing traffic and parking signs, curb painting, and other minor maintenance.

Background
The contract for On -Call General Street Services provides for minor roadway improvements identified in response to community service requests such as sign installat ions, roadway markings, curb paintings, and other miscellaneous safety improvements on an as -needed basis throughout the term of the contract.

Since adoption of the Palo Alto 311 service request tracking system in April 2015, the Office of Transportation has closed out more than 1,500 transportation-related service requests. These community-submitted requests include, but are not limited to, the installation of traffic control signage, curb marking/painting, parking signage, improvements to school walkin g and bicycling routes, new crosswalk and pedestrian crossing sign age, bicycle detection symbols at traffic signals, new conflict markings in bicycle lanes, turn -lane modifications, and traffic calming on local streets.

On August 22, 2016, City Council a pproved a five-year contract for On -Call Traffic Safety Services (CMR 6885) to support Office of Transportation staff with tasks for various small spot improvement projects throughout the City. At that time, staff awarded a five-year contract to Sierra Traffic Markings, Inc. The existing contract ended in September 2021 and staff has extended the contract until March 202 2 to ensure enough time to be able to issue a new Request For Quotation (RFQ) without any gaps in the service provided by the contractor.

Discussion
8 Packet Pg. 81

City of Palo Alto Page 2

RFQ for Professional Services Contract Solicitation Process A RFQ for the project was posted twice in PlanetBids, the City’s eProcurement platform. In the first posting, 683 vendors were notified, and the solicitation period was posted for 39 days.

Staff received two proposals and decided to rebid the project with additi onal outreach to solicit more responses. In the second posting, 698 vendors were notified and the solicitation period was posted for 14 days and two proposals were received. The solicitation closed on November 1, 2022.

Table 1: Summary of Request for Quotation
Proposal Description On-Call General Street Services, RFP#181932 Proposed Length of Project  5-year term
Number of Vendors Notified  698
Number of Proposal Packages
Downloaded  10
Total Days to Respond to Proposal  14
Pre-Proposal Meeting No
Pre-Proposal Meeting Date  None
Number of Proposals Received  2
Proposal Price Range $2,028 to $8,200 (based on lump sum per unit cost) Public Link to Solicitation https://pbsystem.planetbids.com/portal/25569/bo/bo- detail/87785

The quotes were reviewed and resulted in a recommendation that the quote submitted by Sierra Traffic Markings, Inc. be accepted, and declared as the lowest responsive bidder. The City has verified the Sierra Traffic Markings, Inc. contractor license and has checked with their listed references and standing with the State. Sierra Traffic Markings, Inc. also has experience working in the City and is familiar with all required City Standards and Specifications , as well as the California Manual of Uniform Traffic Control Devices.

This contract is needed in order to address the work orders resulting from the community- submitted requests which include, installation of traffic control signage, c urb marking/painting, parking signage, improvements to school walking and bicycling routes and traffic calming on local street s, and to avoid long delays by having to go out to bid each time, when work is needed.

Timeline
Upon approval of this contract, Sierra Traffic Markings, Inc. will begin to complete work orders issued by the Office of Transportation. These work orders are issued each month in packages in order to minimize mobilization costs and maximize efficiency.

8 Packet Pg. 82

City of Palo Alto Page 3

Resource Impact
No additional f unding is needed. Funding for year one of these contracts is available in the FY 2022 Adopted Capital and the FY 2022 Adopted Operating Budgets to cover the work. Funding would be drawn from the following projects and programs as they require on -call support: Safe Routes to School (PL-00026), Bicycle & Pedestrian Transportation Plan Implementation (PL- 04010), Transportation & Parking Improvements (PL-12000), and Traffic Signal and Intelligent Transportation Systems (PL- 05030). Funding for future fiscal yea rs is subject to City Council approval through the annual budget process.

Policy Implications
The City’s Comprehensive Plan recommends that the City strive to accommodate all modes of travel on its street system. This contract is consistent with the following goals and policies:

Goal T -4: An efficient roadway network is provided for all users, including motor vehicles, transit vehicles, bicyclists and pedestrians

Goal T-6: A high level of safety for motorists, pedestrians, and bicyclists on Palo Alto streets

Stakeholder Engagement
Stakeholder engagement for this contract consisted of the RFQ and bidding process described above. Staff will conduct additional community/stakeholder engagement for any projects that result from this on-call contract.

Environmental Review
The work to be performed under this contract is categorically exempt under CEQA regulation 15301 as it consists of repair, maintenance, and minor alternation of existing facilities.

Attachments:
• Attachment8.a: Attachment A: Sierra Traffic Markings, Inc., Contract C22181932 8 Packet Pg. 83
City of Palo Alto General Services Agreement 1 Rev. March 29, 2018

CITY OF PALO ALTO CONTRACT NO. C22181932

GENERAL SERVICES AGREEMENT

THIS AGREEMENT made and entered into on the 28t h day of February, 2022, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and SIERRA TRAFFIC MARKINGS, INC. (DIR#1000002783), a Ca lifornia corporation, located at 9725 Del Road, Suite B, Roseville, California, 95747, Telephone Number: (916) 774-9080 (“ CONTRACTOR”). In consideration of their mutual covenants, the parties hereto agree as follows:

1. SERVICES. CONTRACTOR shall provide or furnis h the services (the “Services”) described in the Scope of Services, attached at Exhibit A.

Optional On-Call Provision (This provis ion only applies if checked and only applies to on-call agreements.)
Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The tota l price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 5 of this Agreement. CONTRACTOR shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section

5. 2. EXHIBITS. The following exhibits are attached to and made a part of this Agreement:

“A” - Scope of Services
“A-1” - On-Call Task Order (Optional)
“B” - Schedule of Performance
“C” - Schedule of Fees
“D” - Insurance Requirements
“E” - Technical Requirements

CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.















 

 

8.a
Packet Pg. 84
City of Palo Alto General Services Agreement 2 Rev. March 29, 2018

3. TERM.

The term of this Agreement is from February 28, 2022 to February 28, 2027 inclusive, subject to the provisions of Sections R and W of the General Terms and Conditions.

4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction co mmunicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attached at Exhibit B. Time is of the essence in this Agreement.

5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not-to-exceed compensation for the full performance of the Services and reimbursable expenses, if any:

The total maximum lump sum compensation of Eight Hundred Fifty Thousand dollars ($850,000.00).

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.

6. COMPENSATION DURING ADDITIONAL TERMS.

CONTRACTOR’S compensation rates for each additional term shall be the same as the original term.

7. CLAIMS PROCEDURE FO R “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 7, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. Public Contract Code Section 9204 mandates certain claims procedures for Public Works Projects, which are set forth in “Appendix A: Claims for Public Contract Code Section 9204 Public Works Projects”.

This project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Appendix A, attached hereto and incorporated herein.

8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project Manager is: Shahla Yazdy, Office of Transportation Department, Telephone:
(650) 617-3151. Invoices shall be submitted in arrears for Services performed. 













 

 

8.a
Packet Pg. 85
City of Palo Alto General Services Agreement 3 Rev. March 29, 2018

Invoices shall not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt.

GENERAL TERMS AND CONDITIONS

A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections 1 thro ugh 8 above, these general terms and conditions and the attached exhibits.

B. QUALIFICATIONS . CONTRACTOR represents and warrants that it has the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled “SERVICES,” and that every individual charged with the performance of the services under th is Agreement has sufficient skill and experience and is duly licens ed or certified, to the extent such licensing or certification is required by law, to perf orm the Services. CITY expressly relies on CONTRACTOR’s representations regarding its skills, knowledge, and certifications.

CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance sta ndards of the industry, including all federal, state, and local operation and safety regulations.

C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONT RACTOR and any person employed by CONTRACTOR shall at all times be cons idered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement.

D. SUBCONTRACTORS. CONTRACTOR may not use subc ontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors.

E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or ch arges applicable to the conduct of CONTRACTOR’s business.

F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders.















 

 

8.a
Packet Pg. 86
City of Palo Alto General Services Agreement 4 Rev. March 29, 2018

G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONTRACTOR shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060.

H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR’s performance of the Servic es. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defect ive work not remedied or other damage to the CITY occurring in connection wi th CONTRACTOR’s pe rformance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR’s request. When the grounds described above are removed, payment shall be made for amounts withheld because of them.

I. WARRANTIES. CONTRACTOR expressly warrants th at all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to prompt ly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or def ective materi al or service, at no further cost to CITY. The warranties set forth in this section shall be in effect fo r a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement.

J. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONT RACTOR’s work is completed in a satisfactory manner and complies with the provisions of this Agreement.

K. CITY’S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will beco me the property of CITY without 













 

 

8.a
Packet Pg. 87
City of Palo Alto General Services Agreement 5 Rev. March 29, 2018

restriction or limitation upon their use a nd will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager.

L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of final payment, CONTRACTOR’s reco rds pertaining to matters covered by this Agreement. CO NTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement.

M. NO IMPLIED WAIVER. No payment, partial paym ent, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement.

N. INSURANCE. CONTRACTOR, at its sole cost, sh all purchase and maintain in full force during the term of this Agreement, the insurance coverage described at Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A- :VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and conten t. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will no t be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall provide certificates of such policies or ot her evidence of coverage satisfactory to the Risk Manager, together with the required endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance cove rages and endorsements to the Risk Manager. CONTRACTOR shall include a ll subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement.

O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section N relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any 













 

 

8.a
Packet Pg. 88
City of Palo Alto General Services Agreement 6 Rev. March 29, 2018

other loss and including without limitatio n all damages, penalties, fines and judgments, associated investigation a nd administrative expenses and defense costs, including, but not limited to reasonable attorney’s fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performanc e of this Agreement. CONTRACTOR’s obligations under this Section apply rega rdless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification.

The provisions of this Section surviv e the completion of the Services or termination of this Agreement.

P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR certifies that in the performance of this Agreement, it shall not discriminate in the employment of any pe rson because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person.

CONTRACTOR acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relati ng to Nondiscrimination Requirements and the penalties for violat ion thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.

Q. WORKERS' COMPENSATION . CONTRACTOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of Califor- nia which require every empl oyer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comp ly with such provisions, as applicable, before commencing and during the performance of the Services.

R. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days’ prior writte n notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other reme dies provided by la w, the City Manager may terminate this Agreement immediately upon written notice of termination.

Upon receipt of such notice of term ination, CONTRACTOR shall immediately discontinue performance. CITY shall pay CO NTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination is for cause, CITY may deduct from such payment the amount of actual damage, if any, sustained by CITY due to CONTRACTOR’s failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copi es of studies, sketches, drawings, computations, and other material or products, whether or not completed, 













 

 

8.a
Packet Pg. 89
City of Palo Alto General Services Agreement 7 Rev. March 29, 2018

prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY.

S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Ag reement. This Agreement shall not be assigned or transferred without the prior written consent of CITY. No amendments, changes or variations of any kind are authorized without the written consent of CITY.

T. CONFLICT OF INTEREST. In accepting this Agreem ent, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Agreement. CONTRACTOR further covenants that, in the performance of this Agreement, it will not employ any person having such an interest. CONTRACTOR certifies that no CITY officer, employee, or authorized representative has any financial interest in the business of CONTRACTOR and that no person associated with CONTRACTOR has any interest, direct or indirect, which could conflict with the faithful perfor mance of this Agreement. CONTRACTOR agrees to advise CITY if any conflict arises.

U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws of the State of California.

V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with resp ect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written.

W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the fo llowing fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.

X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally Preferred Purchasing policies which are av ailable at CITY’s Purchasing Division, which are incorporated by reference and may be amended from time to time. 













 

 

8.a
Packet Pg. 90
City of Palo Alto General Services Agreement 8 Rev. March 29, 2018

CONTRACTOR shall comply with waste re duction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONT RACTOR shall comply with the following zero waste requirements:
x All printed materials provided by CO NTRACTOR to CITY generated from a personal computer and printer includi ng but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double- sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-con sumer material and printed with vegetable based inks.
x Goods purchased by Contractor on be half of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including, but not limited to, Extended Producer Resp onsibility requirements for products and packaging. A copy of th is policy is on file at the Purchasing Division’s office.
x Reusable/returnable pallets shall be taken back by CONTRCATOR, at no additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.

Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.

Z. PREVAILING WAGES

Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the Californi a Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of Ca lifornia, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the Agreement for th is Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any st aff or subcontractor hired, and shall pay the adopted prevailing wage rates as a mi nimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages















 

 

8.a
Packet Pg. 91
City of Palo Alto General Services Agreement 9 Rev. March 29, 2018

AA. DIR REGISTRATION. In regard to any public work construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONTRACTOR and its listed subcontractors to comply with the requirements of SB 854.

CITY provides notice to CONTRACTOR of the requirements of California Labor Code section 1771.1(a), which reads:

“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the Agreement is awarded.”

CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRACTOR is required to post all job site notices prescribed by law or regulation and CONTRACTOR is subject to SB 854-compliance monitoring and enforcement by DIR.

CITY requires CONTRACTOR and its listed subcontractors to comply with the requirements of Labor Code section 1776, including:

Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONTRACTOR and its listed subcontractors, in connection with the Project.

The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONTRACTOR and its listed subcontractors, respectively.

At the request of CITY, acting by its project manager, CONTRACTOR and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of CITY’s request.














 

 

8.a
Packet Pg. 92
City of Palo Alto General Services Agreement 10 Rev. March 29, 2018

[For state- and federally-funde d projects] CITY requests CONTRACTOR and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project.

If the certified payroll records are not produced to the project manager within the 10-day period, then CONTRACTOR and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONTRACTOR.

Inform the project manager of the location of CONTRACTOR’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records.

BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the case of any conflict between the terms of this Agreement and the exhibits hereto or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONTRACTOR’s proposal, the exhibits shall control.

IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written.

CITY OF PALO ALTO SIERRA TRAFFIC MARKINGS, INC.

_____________________________ By: ________________________________________ City Manager or Designee
Name: _____________________________________
Title: ______________________________________
Telephone: _________________________________

Approved as to form: By: _______________________________________

Name: ____________________________________
___________________________ Title: _____________________________________ City Attorney or Designee Telephone: ________________________________















 

 


 


















 

8.a
Packet Pg. 93
City of Palo Alto General Services Agreement 11 Rev. March 29, 2018

EXHIBIT A

SCOPE OF SERVICES

Consistent with Section 1 of this Agreement, the City shall negotiate with the CONTRACTOR at the start of each month, the amount of work to be completed based on city-furnished "work order'' type improvement plans. The CONTRACTOR shall provide cost estimates on the work orders.

The City shall review cost estimates and if approved provide written authorization to the CONTRACTOR to proceed. The CONTRACTOR shall complete the work during the issued month or time specified on the written authorization.

(Task A) Standard Highway Signs- New Sign Installation onto Existing Sign Post The CONTRACTOR shall install a standard highway sign(s) onto existing sign post and/or an existing Caltrans Type 15 Pole Standard. Existing City sign posts might require the addition of a riser onto the existing sign post to accommodate new sign(s). Addition of a riser shall include the threading of the existing sign post, installation of a coupling bracket, and pole extension to support the new sign. The CONTRACTOR shall be responsible for providing a cost to include all labor and material, including all necessary sign bracketing and banding material.

(Task B) Standard Highway Signs- New Sign & New Sign Post Installation The CONTRACTOR shall install a standard highway sign(s) onto CONTRACTOR furnished and installed sign post. Installation of a new sign post shall include coordination with U.S.A. underground, the use of a core drill with a 6-inch bit to cut through existing concrete, installation of a new 2-inch (I.D.) sign post, and the use of a portland cement to secure post and finishing to grade. Signs shall be installed a minimum of 7-ft from bottom of new sign to the sidewalk or existing grade. New sign post installations shall not use any pole risers to accommodate the new sign installation(s). The CONTRACTOR shall be responsible for providing a cost to include all labor and material, including all required sign bracketing material. Upon completion of the pole installation, CONTRACTOR shall remove all USA or other type markings from the roadway, curb or sidewalk.

(Task C) Curb Painting
The CONTRACTOR shall paint existing street curb as directed by the City. The City shall mark the beginning and ending limits of paint in the field using white chalk paint. The CONTRACTOR shall paint red, green, yellow, blue, or white curb paint as directed by the City. Prior to painting curb, the contractor shall remove any debris or vegetation that may conflict with the painting of the curb. Paint material used for street curbs shall be Ennis Paint Company - Standard Dry paint, or approved equal, that meets Federal specification TTP-1952B. CONTRACTOR shall be responsible for providing a cost per linear foot (LF) of curb paint, to include all labor and material, and adequate traffic control during installation and curing.

(Task D) Curb Painting Removal
The CONTRACTOR shall remove existing curb painting as directed by the City. The City shall mark the beginning and ending limits of the area where paint is to be removed. The CONTRACTOR shall not use any unapproved chemicals or solvents; if used the CONTRACTOR shall provide a reclamation system to capture spillage, preventing contaminates from flowing into the sewer or storm drain system. The City prefers a wet or dry vacuum type system. CONTRACTOR shall provide a cost per linear foot (LF) including all labor and material for curb paint removal and adequate traffic control during the removal process.















 

 

8.a
Packet Pg. 94
City of Palo Alto General Services Agreement 12 Rev. March 29, 2018

(Task E) Traffic Lane Lines- Grinding Removal
The CONTRACTOR shall grind existing center lane lines or traffic lane lines as directed by the City. The City shall mark in the field the beginning and ending limits of grinding operations.

CONTRACTOR shall take extra caution not to damage the pavement. The CONTRACTOR shall be responsible or furnishing, installing, and maintain adequate traffic control during Grinding removal operations may be used for the removal of existing paint or thermoplastic material and require field collection and disposal. Other methods, such as use of an Eraser, are also acceptable.

The CONTRACTOR shall provide a cost per LF for providing all labor and material, and adequate traffic control during the removal process.

(Task F) Roadway Stencils/Thermoplastic Pavement Markings The CONTRACTOR shall install, using thermoplastic roadway material, Caltrans standard pavement arrows and legends including Type IV turn arrows, Type VI lane drop arrows, Bike Lane symbols, Bicycle Loop Detector symbols, Bike Sharrows, and Numerals. CONTRACTOR shall check with City to make sure stencils used match existing stencils used throughout the City.

Prior to installation the CONTRACTOR shall clean the roadway using a mechanical blower and apply primer to the roadway to ensure proper adhesion to the pavement. The CONTRACTOR shall be responsible for providing a cost per square foot (SF) to include all labor and material, and adequate traffic control during installation. Caltrans standard plans will be used to determine actual square footages for each roadway stencil marker.

(Task G) 12-inch White and/or Yellow Thermoplastic Limit Line or Crosswalk Lines The CONTRACTOR shall cat-track for review and approval by the City the location of 12-inch white/yellow thermoplastic limit line or crosswalk lines based off of City work-order details.

Prior to installation the CONTRACTOR shall clean the roadway using a mechanical blower and apply primer to the roadway to ensure proper adhesion to the pavement. After written approval from the City on the location of cat-track markings, the CONTRACTOR shall install the 12-inch white/yellow thermoplastic limit lines or crosswalk lines. The CONTRACTOR shall be responsible for providing a cost per LF for all material, labor and adequate traffic control during installation.

(Task H) Green Thermoplastic Bike Lane Material
CONTRACTOR shall install green thermoplastic material bike lanes, using Ennis Flint green thermoplastic material. CONTRACTOR may also propose other materials for City review and approval. CONTRACTOR shall apply materials as per manufacturers recommended direction for quality placement. CONTRACTOR shall be responsible for providing a cost per SF for all required material and labor and adequate traffic control during installation.

(Task I) Labor Rates
CONTRACTOR to provide labor rate, per hour, for miscellaneous work such as striping, curb painting, and other work, etc.

(Task J) Traffic Control
CONTRACTOR shall provide a cost per hour to include for 1 to 2 men, all flagging, equipment and all required signs/ set up requirements as per the Caltrans MUTCD traffic control set up.

ADDITIONAL SERVICES
The need for additional types of General Street services may be required during the term of this contract for work that’s not listed in the line items above. Hourly labor rates, materials and traffic control as stated for Tasks I and J shall be applied.















 

 

8.a
Packet Pg. 95
City of Palo Alto General Services Agreement 13 Rev. March 29, 2018

EXHIBIT “A-1”

GENERAL SERVICES TASK ORDER
Contractor hereby agrees to perform the work detail ed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A be low. All exhibits referenced in Item 8 are incorporated into the Agreement by this referenc e. The Contractor shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

C O N T R A C T N O . I S S U E D A T E Purchase Requisition No.

1A. MASTER AGREEMENT NUMBER
1B. TASK ORDER NO.
2 . C O N T R A C T O R

3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCEREMAINING IN MASTER AGREEMENT $__________________________________

5. BUDGET CODE: _______________
COST CENTER_________________ COST ELEMENT______________ WBS/CIP___PHASE___

6. CITYPROJECTMANAGER’SNAME/DEPARTMENT_____________________________________

7. DESCRIPTION OF SC OPE OF SERVICES
MUST INCLUDE:
ƒ WORK TO BE PERFORMED
ƒ SCHEDULE OF WORK
ƒ BASIS FOR PAYMENT & FEE SCHEDULE
ƒ DELIVERABLES
ƒ REIMBURSABLES (with “not to exceed” cost)

8. ATTACHMENTS: A: Scope of Services B: __________________________________ ---------------------------------------------------------------------------------------------------------------------------------

I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Contractor.

APPROVED: APPROVED:

CITY OF PALO ALTO COMPANY NAME: ______________________

BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________















 

 

8.a
Packet Pg. 96
City of Palo Alto General Services Agreement 14 Rev. March 29, 2018

EXHIBIT B

SCHEDULE OF PERFORMANCE

Schedule of Performance shall conform to the Task Orders issued under this Agreement. 













 

 

8.a
Packet Pg. 97
City of Palo Alto General Services Agreement 15 Rev. March 29, 2018

EXHIBIT C

SCHEDULE OF FEES

CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses, shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement.

Any services provided or hours worked for whic h payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY.

(Task A) Standard Highway Signs- New Sign Installation onto Existing Sign Post

Lump Sum Cost that includes all labor and materials costs for the installation of one 24”x30” standard highway sign onto an existing standard 2- inch galvanized sign post or Caltrans Type 15 pole
$200.00 each

Lump Sum Cost that includes all labor and materials costs for the installation of one 24”x30” double – sided standard highway sign onto an existing standard 2-inch galvanized sign post or Caltrans Type 15 pole.
$290.00 each

Lump Sum Cost to remove any size sign from an existing pole. Sign shall be returned to the City Public Works Department.
$100.00 each

(Task B) Standard Highway Signs- New Sign & New Sign Post Installation

Lump Sum Cost that includes all labor and materials costs for the installation of one new standard 2-inch (I.D.) galvanized sign post and one 24”x30” standard highway sign. $400.00 each

Lump Sum Cost that includes all labor and materials costs for the installation of one new standard 2-inch (I.D.) galvanized sign post and one double - sided 24”x30” standard highway sign. $490.00 each

Lump Sum Cost to remove sign(s) and pole. Sign/pole shall be returned to City Public Works Department.
$200.00 each

(Task C) Curb Painting

Lump Sum Cost that includes all labor and materials, per linear foot, for the installation of street curb paint from 0 to 100 linear feet.
$10.00/LF

Lump Sum Cost that includes all labor and materials, per linear foot, for the installation of street curb paint for quantities of 100 linear feet and higher. $3.00/LF















 

 

8.a
Packet Pg. 98
City of Palo Alto General Services Agreement 16 Rev. March 29, 2018

(Task D) Curb Painting Removal
Lump Sum Cost that includes all labor and materials, per linear foot, for the removal of street curb paint.
$25.00/LF

(Task E) Traffic Lane Lines- Grinding Removal
Lump Sum Cost that includes all labor and materials, per linear foot, for the removal of traffic lane lines.
$2.00/LF

(Task F) Roadway Stencils/Thermoplastic Pavement Markings Lump Sum Cost that includes all labor and material, per square foot, for the installation of roadway stencils.
$10.00/SF

(Task G) 12-inch White and/or Yellow Thermoplastic Limit Line or Crosswalk Lines Lump Sum Cost that includes all labor and material, per-linear cost for the installation of 12-inch white thermoplastic limit lines or crosswalk lines. (Note: When 24-inch limit lines or crosswalk lines are requested by the City, the 12-inch limit line per linear foot cost shall be used as a base cost.)
$6.00/LF

(Task H) Green Thermoplastic Bike Lane Material
Lump Sum Cost that includes all labor and material, per square ft cost for the installation of Ennis Flint Thermoplastic Green Bike lane material.
$12.00/SF

(Task I) Labor Rates
Hourly Cost for labor rate for striping, painting, and other miscellaneous work etc. $140.00/hr

(Task J) Traffic Control
Hourly Cost for traffic control services
$140.00/hr















 

 

8.a
Packet Pg. 99
City of Palo Alto General Services Agreement 17 Rev. March 29, 2018

EXHIBIT D

INSURANCE REQUIREMENTS

CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM

OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR

HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW:

REQUIRED TYPE OF COVERAGE REQUIREMENT

MINIMUM LIMITS
EACH

OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY

STATUTORY

STATUTORY

YES

GENERAL LIABILITY, INCLUDING

PERSONAL INJURY, BROAD FORM

PROPERTY DAMAGE BLANKET

CONTRACTUAL, AND FIRE LEGAL

LIABILITY

BODILY INJURY

PROPERTY DAMAGE

BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

YES AUTOMOBILE LIABILITY,

INCLUDING ALL OWNED, HIRED,

NON-OWNED

BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE

PROPERTY DAMAGE

BODILY INJURY AND PROPERTY

DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000

NO

PROFESSIONAL LIABILITY,

INCLUDING, ERRORS AND

OMISSIONS, MALPRACTICE (WHEN

APPLICABLE), AND NEGLIGENT

PERFORMANCE

ALL DAMAGES $1,000,000

YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED : CONTRACTOR, AT

ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND

EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE

INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.

I. INSURANCE COVERAGE MUST INCLUDE:

A CONTRACTUAL LIABILIT Y ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.

II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE.

III. ENDORSEMENT PROVISIONS, WITH RESP ECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS”

A. PRIMARY COVERAGE















 

 

8.a
Packet Pg. 100
City of Palo Alto General Services Agreement 18 Rev. March 29, 2018

WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,

INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR

CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.

B. CROSS LIABILITY

THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE

POLICY SHALL NOT, FOR THAT REASON AL ONE, EXTINGUISH ANY RIGHTS OF THE INSURED

AGAINST ANOTHER, BUT THIS ENDORSEMENT , AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.

C. NOTICE OF CANCELLATION

1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY

REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-

PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

NOTICES SHALL BE MAILED TO:

PURCHASING AND

CONTRACT ADMINISTRATION

CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303















 

 

8.a
Packet Pg. 101
City of Palo Alto General Services Agreement 19 Rev. March 29, 2018

EXHIBIT E

TECHNICAL REQUIREMENTS

CITY APPROVED HARDWARE
Provided in Attachment A is a list of Sign Bracketing Hardware as well as all other types of hardware used by the City of Palo Alto. The CONTRACTOR shall be required to use the same sign bracketing, Hardware material and stencils/ pavement markings, as specified on projects to ensure compatibility with existing field hardware. All pipe installed in concrete islands to have the Snap-n-Safe breakaway device. "No Parking" signs shall be placed by CONTRACTOR 72 hours prior to job, as required. "No Parking" signs will be provided by City of Palo Alto.

x Typical Sign Hardware used by the City of Palo Alto
x Typical Standard bolts for sign installations – 5/16” –Hawkins # M2G-BHX x Typical Theft-proof bolts for sign installations – 5/16” – Hawkins # M2G - BTP x Typical 2” U-Clamp with side brackets to mount signs perpendicular to 2”sign pole for double-sided signs – Hawkins # M2G-C2WB1
x Typical 2” Clamp to mount signs flush on 2” sign pole for single-sided signs – Hawkins # M2G-C2B
x Typical Type K marker and base (often used on islands) – # OM2-1H for the 3-lite reflector
x Typical Side Mount Bracket used with banding to mount sign perpendicular to pole for double-sided signs. Hawkins # M2G-1-SWS
x Typical Flared Leg Bracket used with banding to mount sign flush with pole for single- sided signs. Hawkins # M2G-UBF
x Typical Threaded 2” L-Bracket for mounting double sided signs on top of a threaded 2” sign pipe. Hawkins # M2G-2LBT
x Typical Straight Leg Bracket used with banding to mount sign flush to pole for single- sided signs. Hawkins # M2G-UB
x Typical Non-threaded 2” L-Bracket for mounting double sided signs on top of a threaded 2”sign pipe. Hawkins # M2G-2LBT
x Typical Bracket used to mount street name signs off of a light standard or traffic signal pole. Banding must be used to attach bracket to source. Hawkins # V14(HD)SL-105 x Typical 2” Pipe Cap to mount street name sign on top of 2”sign pipe – Hawkins # V14(HD)SL
x Typical 2” Cross-Bracket for mounting street name signs perpendicular to each other.

Hawkins # V14(HD)SL105
x Typical 2” ID Galvanized Schedule 40 sign pipe used for mounting signs x Typical 2” Pipe Coupling for joining two pieces of 2” Schedule 40 pipe x Typical 201 Stainless Steel Banding Buckle – Band-It brand # UB256 x Typical 201 Stainless Steel Banding – Hawkins # M2G-345 (UG) x Breakaway Coupler for mounting sign pipe in medians, traffic circles and other locations where there may be frequent repairs. – Designovations Snapnsafe Breakaway Coupler #S238R8














 

 

8.a
Packet Pg. 102
City of Palo Alto General Services Agreement 20 Rev. March 29, 2018

Appendix A:

Claims for Public Contract Code Section 9204 Public Works Projects

The provisions of this this Appendix are provided in compliance with Public Contract Code Section 9204; they provide the exclusive procedures for any claims related to the Services performed under this Agreement.

1. Claim Definition. “Claim" means a separate demand by the Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:

(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City.
(B) Payment by the City of money or damages arising from the Services performed by, or on behalf of, the Contractor pursuant to the Agreement and payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled.
(C) Payment of an amount that is disputed by the City.

2. Claim Process .

(A) Timing. Any Claim must be sub mitted to City in compliance with the requirements of this Appendix no later than fourteen (14) days following the event or occurrence giving rise to the Claim. This time requirement is mandatory; failure to submit a Claim within fourteen (14) days will result in its being deemed waived.

(B) Submission. The Cla im must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Appendix, and must include reasonable documentation substantiating the Claim. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Agreement, and a chronology of relevant events. Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost. Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts.

(C) Review. Upon receipt of a Claim in compliance with this Appendix, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days from receipt, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of a Claim, the City and Contractor may, by mutual agreement, extend the time period provided in this paragraph 2.















 

 

8.a
Packet Pg. 103
City of Palo Alto General Services Agreement 21 Rev. March 29, 2018

(D) If City Council Approval Required. If the City needs appr oval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.

(E) Payment. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. If the City fails to issue a written statement, paragraph 3, below, shall apply.

3. Disputed Claims

(A) Meet and Confer. If the Contractor disputes the City 's written response, or if the City fails to respond to a Claim submitted pursuant to this Appendix within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement.

(B) Mediation. Any remaining disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing by the Contractor. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to any other remedies authorized by the Agreement and laws.

(i) For purposes of this paragraph 3.B, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.

(ii) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation, 













 

 

8.a
Packet Pg. 104
City of Palo Alto General Services Agreement 22 Rev. March 29, 2018

if any, under Public Contract Code Section 20104.4 to mediate after litigation has been commenced.

4. City’s Failure to Respond. Failure by the City to respond to a Claim from the Contractor within the time periods described in this Appendix or to otherwise meet the time requirements of this Appendix shall result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Appendix, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor.

5. Interest . Amounts not paid in a timely manner as required by this section shall bear interest at seven (7) percent per annum.

6. Approved Subcontractor Claims. If an approved subcont ractor or a lower tier subcontractor lacks legal standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the Contractor present a Claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the Claim be presented to the City shall furnish reasonable documentation to support the Claim.

Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the claim to the City and, if the Contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so.

7. Waiver of Provisions. A waiver of the rights gran ted by Public Contract Code Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Public Contract Code Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.















 

 

8.a
Packet Pg. 105

City of Palo Alto (ID # 13763)
City Council Staff Report

Meeting Date: 2/28/2022

City of Palo Alto Page 1

Title: Approval of Contract C22182466 With Ranger Pipelines, Inc. in the Amount of $7,819,336 for Water Main Replacement Project 28 (WS -14001) in the Barron Park, Oak Creek, Duveneck Francis, Charleston Meadows Neighborhoods and in the California Busines s District, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not -to- Exceed $781,934 for a Total Not -to-Exceed Amount of $8,601,270 From: City Manager
Lead Department: Utilities

Recommendation
Staff recommends that Council:

1. Approve and authorize the City Manager or their designee to execute the attached contract C22182466 (Linked Document) with RANGER PIPELINES, Inc. in an amount not - to-exceed $7,819,336 for the Water Main Replacement Project 28 (WMR Project 28) Capital Improvement Program (WS -14001) in the Barron Park, Oak Creek, Duveneck Francis, Charleston Meadows neighborhoods and in the California Business District.

2. Approve and authorize the City Manager or their designee to negotiate and execute one or more changes to the contract with RANGER PIPELINES, Inc. for related additional but unforeseen work, which may develop during the project, the total value of which shall not exceed $781,934 or 10% of the contract amount.

The total not -to-exceed amount is $8,601,270, which includes the contract amount of $7,819,336 and a 10% contingency of $781,934.

Background
In 2015 the City completed a master plan water study to review the replacement priority of existing water pipelines in the distribution system. The study updated and replaced the previous master plan water study from the 1999. The 2015 master plan attempted to minimize costs by focusing on the most vulnerable sections of pipelines and prioritizing these sections for replacement during the City’s Capital Improvement Projects. The plan identified 11.64 miles of pipelines for replacemen t, including 1.77 miles of deteriorated and 9.87 miles of seismically 9 Packet Pg. 106

City of Palo Alto Page 2

vulnerable pipe lines. Since 2015, the City has completed four Water Main Replacement Projects (WMR), with the first three WMR projects focusing on the 1990’s plan and the most recent WM R project focusing on the 2015 plan. Moving forward the City will use the 2015 master plan to assist with identifying and prioritizing water distribution pipelines for replacement.

The WMR Project 28 will replace approximately 3.5 miles of water distribu tion main, of which 1 mile is identified in the 2015 master plan study as seismically vulnerable. The remaining 2.5 miles on this project will be replaced due to their material properties and potential impact on water quality. These sections include repla cement of cast iron (CI) and asbestos cement (AC) pipelines. Approximately 8% of the City’s existing water distribution system is comprised of CI pipelines (average age is 74 years old), while AC pipelines account for approximately 56% (average age is 61 years old). These pipelines are being replaced, as they become subject to pipeline breaks and contribute to poor water quality after 50 to 81 years in service. The City is reviewing aging infrastructure and will be replacing these materials, in addition to pipelines identified in the 2015 master plan, to improve system reliability. After analyzing the risk of pipeline failures, staff has prioritized replacement of these water pipelines within the distribution system as part of the WMR Project 28.

All ex isting CI, AC and PVC water distribution mains in the project area will be replaced with High Density Polyethylene (HDPE) pipe. Replacing the water distribution mains with HDPE pipe, with fused joints, will eliminate leaks in the project area, increase th e reliability of the water distribution system, protect the quality of supplied water, and provide more reliable flow and pressure for fire protection. The existing 6” ductile iron pipe (DIP) segment attached to the side of Matadero Bridge near Matadero an d Tippawingo intersection will be replaced with new 6” DIP. The existing pipe is 41 years old. It was included in the project scope due to its age and conditions. The 6” DIP City-owned pipe segment is located within the limits of Valley Water right-of-way and a permit has already been approved. Since this segment is a City owned and operated pipeline, within Valley Water’s right -of-way, it is the City’s responsibility for replacement. This is similar to City gas and water pipelines within Caltrans and Cou nty right-of- way, where the City is responsible for 100% of replacement costs.

Discussion
Project Description
The scope of this contract includes installation of approximately 18,763 linear feet of new HDPE water mains, 256 new HDPE water services, 40 new fire hydrants, 82 gate valves and installation of approximately 34 linear feet of new 6” DIP and related components within the limits of the City of Palo Alto. Any landscaping that may be removed as part of the work will be restored in kind when construction is completed.

The project is located in five City neighborhoods. Work in California Business District (Birch Street between Cambridge and California Avenue), work in Duveneck Francis neighborhood (Edgewood Drive between Jefferson and 1945 Edgewoo d, Patricia Lane, Jefferson Drive and 9 Packet Pg. 107

City of Palo Alto Page 3

Edgewood Court) and work in Barron Park neighborhood (Matadero between Laguna and El Camino Real, La Mata Way, Julie and Emma Courts, Josina between Barron Avenue and Matadero, Tippawingo Street between Matadero and Ch imalus, excluding El Camino Real between Hansen Way and Matadero) are included in Base Bid of the IFB. Work in Charleston Meadows neighborhood (Dinah’s Court/Parksquare Apartment Complex, and El Camino Real at Dinah’s Court) and work in Oak Creek neighborh ood are included in Bids Alternate. El Camino Real (between Hansen Way and Matadero) is also included in Bid Alternate. Some of the installation work will be within existing utility easement s located on private property of Parksquare Apartment Complex , on a portion of Dinah Ct., and at the Oak Creek Apartment Complex. Staff will work with property owners to ensure necessary easements are documented and recorded prior to installation of new infrastructure.

Water pipelines included in the WMR Project 28 a re located near the following watersheds:

Matadero Creek watershed in Barron Park area, San Francisquito Creek watershed in both Oak Creek and Duveneck Francis areas, and within Adobe Creek watershed in Charleston Meadows area. The project includes replac ement of existing 6” Polyvinyl Chloride (PVC) pipelines on Matadero Avenue along Matadero Creek. Project locations are shown on Attachment A (Linked Document).

The City will provide written notification to all affected property occupants prior to the start of construction. The Contractor will also provide two written notifications of the w ork to all abutting property occupants, at least 15 days prior to the commencement of work at their specific locations, and a second 24-hour notification prior to mobilization.

As part of the planning and design process, staff coordinated this project w ith other City Departments, Stanford, Caltrans, and Valley Water to minimize interference with other contractors and their schedules. To minimize disruption during construction, work will generally be performed from 8:00 AM to 5:00 PM, Monday through Frida y; work in California Business District will be performed between 9:00 AM and 4:00 PM Monday through Friday; work on majority of streets in Barron Park and Duveneck Francis neighborhoods will be performed between 8:45 AM and 5:00 PM Monday through Friday; and work on El Camino Real will be performed between 9:00 AM and 4:00 PM Monday through Friday.

No construction work will be allowed in any part of the City during the two -week period between December 19, 2022 and January 2, 2023 and during Thanksgivin g week between November 21 and November 28, 2022 unless approved by the City due to necessity to accelerate the schedule to prevent delays for the subsequent potential Utilities and/or Public Works projects. No construction activities will be allowed with in the California Business District area (Birch Street) between Thanksgiving and New Year’s day, due to the impact on retailers during the holiday season. The construction period for each location will vary depending on the extent of work to be done; resid ents/business can expect construction in their area lasting a minimum of two months.

9 Packet Pg. 108

City of Palo Alto Page 4

Bid Process
On October 26, 2021, the City posted a notice inviting formal bids (IFB) for the Water Main Replacement Project 28 on the City’s electronic procurement syste m, PlanetBids. The bidding period was 29 calendar days. The City received three (3) bids from qualified contractors on November 24, 2021 as listed on Attachment B Bid Summary (Linked Document).

BID SUMMARY
Bid Name/Number
Water Main Replacement Project 28, CIP WS-
14001, IFB Number 182466
Proposed Length of Project 379 Working Days
(for base bid and four bid alternates)
Number of Bids Mailed to Contractors 0 (electronic documents were available in PlanetBids)
Number of Bid Notices Emailed to Contractors
and Builder’s Exchanges 1,631
Total Days to Respond to Bid 29
Pre-Bid Meeting? Yes (Mandatory)
Number of Company Attendees at Pre-Bid
Meeting
12 (virtual meeting via MS Teams)
Number of Bids Received: 3
Bid Price Range $7,819,336-$10,596,455

Staff has reviewed the submitted bids and recommends that the bid of $7,819,336 submitt ed by RANGER PIPELINES, Inc. be accepted and that RANGER PIPELINES, Inc. be declared the lowest responsible and responsive bidder. The bid is approximately 23 percent below the staff engineer's estimate of $11,212,168. The Staff engineer’s estimate for WMR 28 accounted for the following factors: recent increases in the cost of materials and labor for this type of work; large demand for construction work in the Bay Area , and supply issues. For these reasons, unit prices in engineer’s estimate were higher than they were for previous project WMR 27.

The contingency amount of $781,934, which equals 10 percent (10%) of the total contract amount, is requested for additional unforeseen work that may develop during the project.

Additional work is possible with construction projects because during construction there may be previously unknown obstructions or ground conditions that require changes in how construction will proceed, leading to change orders that may create additional expenses. A contingency fund is necessary to prevent significant delays in the project to handle these unforeseen conditions, which could otherwise result in longer road closures and disruptions.

Any unspent contingency funds are returned to reserves at the end of the project.

Staff confirmed with the Contractor's State License Board that RANGER PIPELINES, Inc. and their subcontractors, have active licenses on file. Staff checked references provided by RANGER PIPELINES, Inc. for previous work performed and received positive feedback f rom other agencies. Staff also confirmed that both RANGER PIPELINES, Inc. and their subcontractor are 9 Packet Pg. 109

City of Palo Alto Page 5

registered and in good standing with the Department of Industrial Relations (DIR). In addition, RANGER PIPELINES, Inc. has contracted with the City in t he past for other Utilities CIP projects, including recent Water Main Replacement Project 27 and Upgrade Downtown project, and has demonstrated the knowledge and ability needed to complete this project (WMR 28) on schedule and within budget.

Resource Impact
Budget Appropriation
In 2017, under the Water Main Replacement Project 27 (WMR Project 27), staff budgeted for the replacement of water pipelines in Oak Creek, which runs alongside the San Francisquito Creek watershed. Due to time constraints, staff removed this section of pipeline from WMR Project 27 and added to WMR Project 28.

Funds for the construction co ntract of $7,819,336 including the contingency amount of $781,934 are available in the FY 2022 Adopted Capital Budget for the WMR Project 28, WS- 14001. The size of this project significantly exceeds the City’s in -house construction resources making it necessary to contract out the work.

This contract is on the City’s construction contract template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. O ther options include termination due to non -appropriation of funds or amending the contract to reduce the cost, for example, by reducing the scope of work

Staff is advancing this recommendation as reflected in the City’s adopted budget. Should the City C ouncil wish to defer this project in light of the current pandemic and other priorities related to community and economic recovery, this item may be removed from the Consent Calendar. Staff will then return to Council with this and other projects for reconsideration.

Policy Implications
The approval of this contract is consistent with existing City policies including the Council approved 2018 Utilities Strategic Plan -Strategic Objectives, Priority 4 - Strategy 1 “Establish a proactive infrastructure replacement program, based on planned replacement before failure to support reliability and resiliency.” Facing an evolving utility business environment, aging infrastructure needs, and sustainability objectives, CPAU must maintain a competitive position in the market. Remaining financially sustainable and competitive in the market while optimizing our resources is key to maintaining and enhancing our value to customers. Strategies in this Priority focus on proactively renewing and managing CPAU’s infrastruct ure, continuously improving financial processes, enhancing infrastructure maintenance programs, defining CPAU’s role in community resiliency, and achieving sustainable energy resource and water supply plans.

9 Packet Pg. 110

City of Palo Alto Page 6

Stakeholder Engagement
The City will provide wr itten notification to all affected property occupants prior to the start of construction. The Contractor will also provide two written notifications of the work to all abutting property occupants, at least 15 days prior to the commencement of work at thei r specific locations, and a second 24 -hour notification prior to mobilization. To minimize disruptions during construction, work in California Business District will be performed between 9:00 AM and 4:00 PM Monday through Friday; work on majority of street s in Barron Park and Duveneck Francis neighborhoods will be performed between 8:45 AM and 5:00 PM Monday through Friday; and work on El Camino Real will be performed between 9:00 AM and 4:00 PM Monday through Friday.

Environmental Review
This project is categorically exempt from California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines 15301 (repair, maintenance of existing facilities) and 15302 (replacement or reconstruction of existing facilities).

Attachments:
• Attachment9.a: ATTACHMENT A: Location Maps
• Attachment9.b: ATTACHMENT B: Bid Summary
9 Packet Pg. 111

ATTACHMENT A
PAGE 1 OF 2
LEGEND
Water Main Replacement
Area I

MATADERO AREA
WMR 28
� SWAI
\470
15�0
,�
��
poo
J74�
\766
"Ul
/
Area II
/
/

OAK CREEK AREA

PROJECT LOCATION MAP (AREAS I AND II)

NOT TO SCALE
_J ~ I I ~ ~PORTAGE AW
~--~ _--~ -~ -- ~ -= -~ ___.L- -_ - _ , ~
~I HANSEN WAY I \l i
~ ~ II .• LAMBERT A'
~ z ~

CHIMALUS DR
o"' "'"' 0
;:,
,,<S'k / MATADERO AVE
:; .~e
I

FERNANDO
T~ ~ ~ [J
A

MATADERO A MARGARITA'
=4C~ ~ i'i l~~ I r ~~~'o~ ~ L
U m ~ ~ MATADERO
~ JOSINA AVE KENDALL AW ~ ol~
m cl nc...
s: s: c... -
)> 0
0 ~ r --j ..:
): '" ): ,~ """'"
<
7' KENDALLAVE l~L~·~~]'
D IL'.!'Q!LAY!1 BARRON AW u gi
1r ihl7r7 ~ MAGNO}JADR~1~ ~
r
BARRC
re arfm
.,~1 s
" '
~
'

SAND HILL RD
.-~- ~ )
CLARK ~ /, l~.
\,~
~\\
I

9.a
Packet Pg. 112
LEGEND

ATTACHMENT A
PAGE 2 OF 2
Water Main Replacement
Area IV

EDGEWOOD DR AREA
WMR 28
PROJECT LOCATION MAP (AREAS 111,IV AND V)

NOT TO SCALE

9.a
Packet Pg. 113

ATTACHMENT B

CITY OF PALO ALTO
BID SUMMARY Copied from Rev10
WATER MAIN REPLACEMENT PROJECT 28; CIP WS-14001 Bid Published 10/26/2021 Bid Date: 11/24/2021 Updated: 11/29/2021 Item Quantity Unit Description Unit Extended Unit Extended Unit Extended Unit Extended No. Price ($) Price ($) Price ($) Price ($) Price ($) Price ($) Price ($) Price ($)

BASE BID
1 8,980 LF Install 8" HDPE pipe by HDD or open cut method $300.00 $2,694,000.00 $282.00 $2,532,360.00 $301.00 $2,702,980.00 $335.00 $3,008,300.00 2 1,369 LF Install 10" HDPE pipe by HDD or open cut method $410.00 $561,290.00 $350.00 $479,150.00 $330.00 $451,770.00 $410.00 $561,290.00 3 12 LF Install 8" PVC pipe by open cut method at tie-in locations $220.00 $2,640.00 $465.00 $5,580.00 $400.00 $4,800.00 $600.00 $7,200.00 4 36 LF Install 12" PVC pipe by open cut method at tie-in locations $250.00 $9,000.00 $482.00 $17,352.00 $360.00 $12,960.00 $750.00 $27,000.00 5 34 LF Replace in place 6" DI pipe crossing Matadero Bridge) $465.00 $15,810.00 $436.00 $14,824.00 $1,020.00 $34,680.00 $850.00 $28,900.00 6 211 EA Install 2" HDPE services to 5/8" or 1" meter by HDD or open cut method (LEGEND ITEM 1) $4,000.00 $844,000.00 $4,000.00 $844,000.00 $5,900.00 $1,244,900.00 $5,000.00 $1,055,000.00 7 2 EA Install 2" HDPE services to 1-1/2" or 2" meter by HDD or open cut method (LEGEND ITEM 2) $4,500.00 $9,000.00 $4,000.00 $8,000.00 $6,110.00 $12,220.00 $6,500.00 $13,000.00 8 6 EA Install 2" HDPE services to meters (up to 2") manifold by HDD or open cut method (LEGEND ITEM 12-11A) $5,000.00 $30,000.00 $5,000.00 $30,000.00 $6,600.00 $39,600.00 $9,000.00 $54,000.00 9 6 EA Reconnect existing 2" HDPE service (LEGEND ITEM 3) $4,200.00 $25,200.00 $3,000.00 $18,000.00 $5,900.00 $35,400.00 $500.00 $3,000.00 10 3 EA Install 4 " HDPE service to 2" meter (LEGEND ITEM 8) $9,000.00 $27,000.00 $5,000.00 $15,000.00 $14,500.00 $43,500.00 $10,000.00 $30,000.00 11 2 EA Install 4 " HDPE service to 2" meter manifold (LEGEND ITEM 9) $10,000.00 $20,000.00 $5,000.00 $10,000.00 $14,900.00 $29,800.00 $10,000.00 $20,000.00 12 1 EA Install 8" HDPE FS and connection to existing FS at PL (LEGEND ITEM 6) $8,000.00 $8,000.00 $7,000.00 $7,000.00 $19,000.00 $19,000.00 $15,000.00 $15,000.00 13 1 Install 10" HDPE service to pump station and connection to existing service at PL (LEGEND ITEM 10) $10,000.00 $10,000.00 $10,000.00 $10,000.00 $19,500.00 $19,500.00 $15,000.00 $15,000.00 14 19 EA Install new fire hydrant assembly, abandon/remove existing fire hydrant assembly (LEGEND ITEM 4) $15,500.00 $294,500.00 $9,000.00 $171,000.00 $17,350.00 $329,650.00 $16,000.00 $304,000.00 15 3 EA Install 2" blow-off assembly $6,000.00 $18,000.00 $2,000.00 $6,000.00 $6,600.00 $19,800.00 $1,000.00 $3,000.00 16 11 EA Perform 6" water main tie-in/abandonment $8,000.00 $88,000.00 $4,000.00 $44,000.00 $8,500.00 $93,500.00 $8,000.00 $88,000.00 17 5 EA Perform 8" water main tie-in/abandonment $9,000.00 $45,000.00 $6,000.00 $30,000.00 $9,300.00 $46,500.00 $9,000.00 $45,000.00 18 2 EA Perform 12" water main tie-in/abandonment $11,000.00 $22,000.00 $7,000.00 $14,000.00 $10,500.00 $21,000.00 $11,000.00 $22,000.00 19 7 EA Install 6" line stop $9,000.00 $63,000.00 $8,000.00 $56,000.00 $10,700.00 $74,900.00 $8,000.00 $56,000.00 20 3 EA Install 8" line stop $11,500.00 $34,500.00 $9,000.00 $27,000.00 $13,500.00 $40,500.00 $9,000.00 $27,000.00 21 1 EA Install 12" line stop $14,900.00 $14,900.00 $11,000.00 $11,000.00 $14,600.00 $14,600.00 $14,000.00 $14,000.00 22 36 EA Install 8" gate valve $4,000.00 $144,000.00 $2,000.00 $72,000.00 $1,250.00 $45,000.00 $3,000.00 $108,000.00 23 5 EA Install 10" gate valve $6,000.00 $30,000.00 $2,500.00 $12,500.00 $1,250.00 $6,250.00 $4,500.00 $22,500.00 24 1 EA Install 12" gate valve (Mueller on Laguna at Matadero) $7,000.00 $7,000.00 $4,000.00 $4,000.00 $3,800.00 $3,800.00 $6,000.00 $6,000.00 25 200 EA Exchange 5/8" or 1" meter $250.00 $50,000.00 $300.00 $60,000.00 $755.00 $151,000.00 $250.00 $50,000.00 26 9 EA Exchange 1-1/2" or 2" meter $300.00 $2,700.00 $500.00 $4,500.00 $865.00 $7,785.00 $260.00 $2,340.00 27 1 LS Perform GPS survey $50,000.00 $50,000.00 $12,000.00 $12,000.00 $25,500.00 $25,500.00 $48,000.00 $48,000.00 Subtotal of Section A: Base Bid (Items 1 through 27 only, with all applicable taxes included) $5,119,540.00 $4,515,266.00 $5,530,895.00 $5,633,530.00 B: OPTIONAL/ADD ALTERNATE BID 1 MISCELLANEOUS
28 17,200 LF Install sheeting and shoring $5.00 $86,000.00 $0.50 $8,600.00 $3.50 $60,200.00 $4.00 $68,800.00 29 150 CY Recycle asphalt w/ Petro Mat $25.00 $3,750.00 $40.00 $6,000.00 $101.50 $15,225.00 $25.00 $3,750.00 30 300 LF Perform removal of existing ACP water main $30.00 $9,000.00 $10.00 $3,000.00 $80.00 $24,000.00 $20.00 $6,000.00 31 3 EA Perform removal of existing tee or cross at tie-in locations $1,800.00 $5,400.00 $500.00 $1,500.00 $700.00 $2,100.00 $2,000.00 $6,000.00 32 10 EA Install 2" temporary blow-off/sample station $1,000.00 $10,000.00 $1,000.00 $10,000.00 $3,175.00 $31,750.00 $500.00 $5,000.00 33 6 EA Install 1" air/vacuum valve combo (LEGEND ITEM 14) $5,500.00 $33,000.00 $1,500.00 $9,000.00 $17,900.00 $107,400.00 $1,800.00 $10,800.00 34 3 EA Install 2" air/vacuum valve combo $6,000.00 $18,000.00 $3,000.00 $9,000.00 $14,000.00 $42,000.00 $2,400.00 $7,200.00 35 20 LF Install 10" PVC pipe by open cut method at tie-in locations $200.00 $4,000.00 $510.00 $10,200.00 $320.00 $6,400.00 $600.00 $12,000.00 36 20 LF Install 8" DI pipe by open cut method at tie-in or other locations $400.00 $8,000.00 $480.00 $9,600.00 $320.00 $6,400.00 $650.00 $13,000.00 37 10 EA Relocate existing water meter due to immovable obstruction (greater than 5-feet) $300.00 $3,000.00 $300.00 $3,000.00 $1,200.00 $12,000.00 $700.00 $7,000.00 38 1 LS Install/remove stem into existing line stop saddle on existing main (10") $4,100.00 $4,100.00 $16,000.00 $16,000.00 $9,700.00 $9,700.00 $4,000.00 $4,000.00 39 1 EA Reconnect existing fire service (up to 6") pipe at the main $1,800.00 $1,800.00 $4,500.00 $4,500.00 $1,200.00 $1,200.00 $6,000.00 $6,000.00 40 1 EA Replace existing meter box with new Armorcast 11"x21"x12" box assembly $300.00 $300.00 $2,500.00 $2,500.00 $4,000.00 $4,000.00 $500.00 $500.00 41 1 EA Replace existing meter box with new Armorcast 17"x30"x12" box assembly $500.00 $500.00 $3,000.00 $3,000.00 $4,055.00 $4,055.00 $600.00 $600.00 42 1 EA Replace existing meter box with new Armorcast 24"x36"x12" box assembly $600.00 $600.00 $4,000.00 $4,000.00 $4,185.00 $4,185.00 $800.00 $800.00 43 2 EA Replace existing meter box with new 30”x48”x18” Polymer Concrete box assembly $700.00 $1,400.00 $5,000.00 $10,000.00 $5,025.00 $10,050.00 $1,000.00 $2,000.00 44 1 EA Replace existing utility vault and bypass assembly $15,000.00 $15,000.00 $4,500.00 $4,500.00 $4,000.00 $4,000.00 $3,000.00 $3,000.00 45 8 EA Install 4" bollards per WGW Utility Standard Detail $500.00 $4,000.00 $600.00 $4,800.00 $1,300.00 $10,400.00 $800.00 $6,400.00 46 1,500 SF Install additional concrete pavement $15.00 $22,500.00 $5.00 $7,500.00 $21.50 $32,250.00 $10.00 $15,000.00 47 1,500 SF Install additional asphalt concrete pavement $15.00 $22,500.00 $7.00 $10,500.00 $8.80 $13,200.00 $7.00 $10,500.00 48 500 LF Install additional curb $25.00 $12,500.00 $10.00 $5,000.00 $93.00 $46,500.00 $20.00 $10,000.00 49 500 LF Install additional gutter $25.00 $12,500.00 $10.00 $5,000.00 $94.00 $47,000.00 $20.00 $10,000.00 50 500 SF Install additional sidewalk $15.00 $7,500.00 $5.00 $2,500.00 $70.00 $35,000.00 $12.00 $6,000.00 51 10,000 Inch/SF Install additional pavement (thickness) $1.00 $10,000.00 $0.25 $2,500.00 $4.80 $48,000.00 $0.75 $7,500.00 52 10,000 Inch/LF Sawcut additional pavement (thickness) $0.25 $2,500.00 $0.05 $500.00 $1.25 $12,500.00 $0.15 $1,500.00 53 500 LF Perform additional sawcutting $2.00 $1,000.00 $1.00 $500.00 $5.00 $2,500.00 $1.00 $500.00 54 25,000 SF Install slurry seal $2.50 $62,500.00 $0.50 $12,500.00 $1.14 $28,500.00 $0.75 $18,750.00 55 66 EA Abandon existing valve $120.00 $7,920.00 $40.00 $2,640.00 $82.00 $5,412.00 $100.00 $6,600.00 56 10 EA Remove unused meter boxes $60.00 $600.00 $25.00 $250.00 $500.00 $5,000.00 $100.00 $1,000.00 57 10 EA Additional pothole due to USA mismark $1,500.00 $15,000.00 $50.00 $500.00 $700.00 $7,000.00 $1,000.00 $10,000.00 58 4 Remove/Reinstall Monuments including 2 recordations with SCC before and after installation of main $500.00 $2,000.00 $1,200.00 $4,800.00 $2,470.00 $9,880.00 $3,000.00 $12,000.00 59 10 Ton Disposal of excavated soils at Class 1 landfill $350.00 $3,500.00 $150.00 $1,500.00 $300.00 $3,000.00 $150.00 $1,500.00 60 10 Ton Disposal of excavated soils at Class 2 landfill $250.00 $2,500.00 $75.00 $750.00 $320.00 $3,200.00 $80.00 $800.00 Subtotal of Section B: Optional/Add Alternate Bid 1 (Miscellaneous Items 28 through 60 only, with all applicable taxes included) $392,870.00 $176,140.00 $654,007.00 $274,500.00 B: OPTIONAL/ADD ALTERNATE BID 2 DINAH'S COURT/WILKIE LOOP 61 1,379 LF Install 8" HDPE pipe by open cut method (Dinah's Court/Wilkie Loop area) $300.00 $413,700.00 $270.00 $372,330.00 $286.00 $394,394.00 $335.00 $461,965.00 62 773 LF Install 10" HDPE pipe by open cut method (Dinah's Court/Wilkie Loop area) $410.00 $316,930.00 $280.00 $216,440.00 $305.00 $235,765.00 $410.00 $316,930.00 63 9 EA Install 2" HDPE services to 1-1/2" or 2" meter by HDD or open cut method (Dinah's Court/Wilkie Loop area) (LEGEND ITEM 2) $4,500.00 $40,500.00 $4,000.00 $36,000.00 $5,650.00 $50,850.00 $6,500.00 $58,500.00 64 1 EA Install 4" HDPE services to 2" meter by HDD or open cut method (Dinah's Court/Wilkie Loop area) (LEGEND ITEM 8) $9,000.00 $9,000.00 $5,000.00 $5,000.00 $13,350.00 $13,350.00 $10,000.00 $10,000.00 65 1 EA Install 4 " HDPE service to 2" meter manifold (LEGEND ITEM 9) $10,000.00 $10,000.00 $5,000.00 $5,000.00 $13,750.00 $13,750.00 $10,000.00 $10,000.00 66 1 EA Install 6" HDPE FS and connection to existing FS at PL (LEGEND ITEM 5) $7,000.00 $7,000.00 $6,000.00 $6,000.00 $17,540.00 $17,540.00 $10,000.00 $10,000.00 67 1 EA Install 8" HDPE FS and connection to existing FS at PL (LEGEND ITEM 6) $8,000.00 $8,000.00 $7,000.00 $7,000.00 $17,540.00 $17,540.00 $15,000.00 $15,000.00 68 6 EA Install new fire hydrant assembly, abandon/remove existing fire hydrant assembly (Dinah's Ct/Wilkie Loop) (LEGEND ITEM 4) $15,500.00 $93,000.00 $9,000.00 $54,000.00 $16,000.00 $96,000.00 $16,000.00 $96,000.00 69 5 EA Install 8" gate valve $4,000.00 $20,000.00 $2,000.00 $10,000.00 $2,400.00 $12,000.00 $3,000.00 $15,000.00 70 6 EA Install 10" gate valve $6,000.00 $36,000.00 $2,500.00 $15,000.00 $2,800.00 $16,800.00 $4,500.00 $27,000.00 71 1 EA Perform 6" water main tie-in/abandonment $8,000.00 $8,000.00 $4,000.00 $4,000.00 $7,925.00 $7,925.00 $8,000.00 $8,000.00 72 4 EA Perform 8" water main tie-in/abandonment $9,000.00 $36,000.00 $6,000.00 $24,000.00 $8,640.00 $34,560.00 $9,000.00 $36,000.00 73 1 EA Install 6" line stop $9,000.00 $9,000.00 $8,000.00 $8,000.00 $9,890.00 $9,890.00 $8,000.00 $8,000.00 74 1 EA Install 8" line stop $11,500.00 $11,500.00 $9,000.00 $9,000.00 $11,300.00 $11,300.00 $9,000.00 $9,000.00 75 1 LS Perform GPS survey $10,000.00 $10,000.00 $5,000.00 $5,000.00 $9,415.00 $9,415.00 $13,000.00 $13,000.00 Total of Section B: Optional/Add Alternate Bid 2 (Dinah's Ct/Wilkie Loop Items 61 through 75 only, with all applicable taxes included) $1,028,630.00 $776,770.00 $941,079.00 $1,094,395.00 B: OPTIONAL/ADD ALTERNATE BID 3 EL CAMINO REAL
76 940 LF Install 8" HDPE pipe by open cut method on El Camino Real $360.00 $338,400.00 $290.00 $272,600.00 $290.00 $272,600.00 $335.00 $314,900.00 77 1,593 LF Install 10" HDPE pipe by open cut method on El Camino Real $480.00 $764,640.00 $300.00 $477,900.00 $295.00 $469,935.00 $410.00 $653,130.00 78 20 LF Install 6" DIP by open cut method on El Caminor Real $400.00 $8,000.00 $250.00 $5,000.00 $400.00 $8,000.00 $650.00 $13,000.00 79 20 LF Install 8" DIP by open cut method on El Caminor Real $500.00 $10,000.00 $250.00 $5,000.00 $421.00 $8,420.00 $700.00 $14,000.00 80 10 EA I nstall 2" HDPE services to 5/8" or 1" meter by open cut method on El Camino Real (LEGEND ITEM 1) $4,500.00 $45,000.00 $4,000.00 $40,000.00 $5,450.00 $54,500.00 $5,000.00 $50,000.00 81 3 EA Install 2" HDPE services to 1-1/2" or 2" meter by open cut method on El Camino Real (LEGEND ITEM 2) $4,550.00 $13,650.00 $5,000.00 $15,000.00 $5,650.00 $16,950.00 $6,500.00 $19,500.00 82 1 EA I nstall 4" HDPE services to 2" meter by open cut method on El Camino Real (LEGEND ITEM 8) $9,500.00 $9,500.00 $6,000.00 $6,000.00 $5,650.00 $5,650.00 $10,000.00 $10,000.00 83 1 EA Install 2" copper service to up to 2" water meter $5,000.00 $5,000.00 $6,000.00 $6,000.00 $9,830.00 $9,830.00 $5,000.00 $5,000.00 84 5 EA I nstall new fire hydrant assembly, abandon/remove existing fire hydrant assembly (LEGEND ITEM 4) $15,700.00 $78,500.00 $10,000.00 $50,000.00 $16,050.00 $80,250.00 $16,000.00 $80,000.00 85 7 EA Install 8" gate valve $7,000.00 $49,000.00 $3,000.00 $21,000.00 $2,400.00 $16,800.00 $3,000.00 $21,000.00 86 9 EA I nstall 10" gate valve $6,000.00 $54,000.00 $3,500.00 $31,500.00 $2,800.00 $25,200.00 $4,500.00 $40,500.00 87 1 EA Install 6" Mueller gate valve $7,000.00 $7,000.00 $4,000.00 $4,000.00 $3,130.00 $3,130.00 $3,000.00 $3,000.00 88 1 EA Install 8" Mueller gate valve $7,200.00 $7,200.00 $5,000.00 $5,000.00 $3,560.00 $3,560.00 $5,000.00 $5,000.00 89 5 EA
Perform 6" water main tie-in/abandonment $8,100.00 $40,500.00 $5,000.00 $25,000.00 $7,925.00 $39,625.00 $8,000.00 $40,000.00 90 7 EA Per form 8" water main tie-in/abandonment $9,100.00 $63,700.00 $7,000.00 $49,000.00 $8,640.00 $60,480.00 $9,000.00 $63,000.00 91 7 EA Install 6" line stop $9,000.00 $63,000.00 $8,000.00 $56,000.00 $9,890.00 $69,230.00 $8,000.00 $56,000.00 92 8 EA I nstall 8" line stop $11,500.00 $92,000.00 $9,000.00 $72,000.00 $11,250.00 $90,000.00 $9,000.00 $72,000.00 93 1 EA Install 1" air/vacuum valve combo (LEGEND ITEM 14-12A) $6,000.00 $6,000.00 $2,000.00 $2,000.00 $16,600.00 $16,600.00 $1,500.00 $1,500.00 94 1 EA R econnect existing 4" HDPE fire service to 8" HDPE main (LEGEND ITEM 7) $1,800.00 $1,800.00 $4,000.00 $4,000.00 $2,060.00 $2,060.00 $4,000.00 $4,000.00 95 1 LS Perform GPS survey $36,000.00 $36,000.00 $3,000.00 $3,000.00 $9,415.00 $9,415.00 $9,000.00 $9,000.00 Total of Section B: Optional/Add Alternate Bid 3 (ECR Items 76 through 95 only, with all applicable taxes included) $1,692,890.00 $1,150,000.00 $1,262,235.00 $1,474,530.00 B: OPTIONAL/ADD ALTERNATE BID 4 OAK CREEK DRIVE
96 3,647 LF Install 12" HDPE pipe by open cut method (Oak Creek Drive and Appartment Complex) $450.00 $1,641,150.00 $280.00 $1,021,160.00 $290.00 $1,057,630.00 $500.00 $1,823,500.00 97 1 EA
Install 6" HDPE service to 3" meter by HDD or open cut method and connect to meter flange (service to 1824 Sand Hill Road at Oak Creek Apartments) (LEGEND ITEM 16-13A) $10,000.00 $10,000.00 $6,000.00 $6,000.00 $13,790.00 $13,790.00 $16,000.00 $16,000.00 98 2 EA
Install 6" HDPE service to 4" meter by HDD or open cut method and exchange meter. Include assembly per Standard Detail (Tennis Ct @Oak Creek@1540 and @1400 Sand Hill Rd) (LEGEND ITEM 15-14A) $18,000.00 $36,000.00 $10,000.00 $20,000.00 $23,100.00 $46,200.00 $16,000.00 $32,000.00 99 10 EA Install new fire hydrant assembly, abandon/remove existing fire hydrant assembly (Oak Creek) (LEGEND ITEM 4) $16,500.00 $165,000.00 $9,000.00 $90,000.00 $16,000.00 $160,000.00 $15,000.00 $150,000.00 100 7 EA Install 12" gate valve $7,000.00 $49,000.00 $4,000.00 $28,000.00 $2,800.00 $19,600.00 $6,000.00 $42,000.00 101 2 EA Perform 12" water main tie-in/abandonment $11,000.00 $22,000.00 $7,000.00 $14,000.00 $9,815.00 $19,630.00 $10,000.00 $20,000.00 102 2 EA Install 10" line stop $12,900.00 $25,800.00 $10,000.00 $20,000.00 $11,300.00 $22,600.00 $12,000.00 $24,000.00 103 1 LS Perform GPS survey $10,000.00 $10,000.00 $2,000.00 $2,000.00 $14,125.00 $14,125.00 $12,000.00 $12,000.00 Total of Section B: Optional/Add Alternate Bid 4 (Oak Creek Area Items 96 through 103 only, with all applicable taxes included) $1,958,950.00 $1,201,160.00 $1,353,575.00 $2,119,500.00 Total Base Bid+4-Bid Alt $10,192,880.00 $7,819,336.00 $9,741,791.00 $10,596,455.00 10% Contingency $1,019,288.00 $781,933.60 $974,179.10 $1,059,645.50 Grand Total: $11,212,168.00 $8,601,270 $10,715,970.10 $11,656,100.50

BID SUMMARY ENGINEER'S ESTIMATE RANGER PIPELINES, INC CON-QUEST CONTRACTORS CRATUS

9.b
Packet Pg. 114

City of Palo Alto (ID # 13609)
City Council Staff Report

Meeting Date: 2/28/2022

City of Palo Alto Page 1

Title: Approval of Contract No. C22182372 with CSW/Stuber -Stroeh Engineering Group Inc. in the Amount of $164,852 for Design Services for the University Avenue Streetscape Update Capital Improvement Program Project, PE-21004 and Approval of Budget Amendme nts in the Capital Improvement Fund and the Stanford University Medical Center (SUMC) Fund From: City Manager
Lead Department: Public Works

Recommendation
Staff recommends that Council:

1. Approve and authorize the City Manager or their designee to execute Contract No.

C22182372 (Attachment A), with CSW/Stuber Stroeh Engineering Group Inc. in a not-to- exceed amount of $164,852 for design services including $149,866 for basic services and $14,986 for additional services for the University Avenue Streetscape U pdate (Capital Improvement Program project (PE-21004); and

2. Amend the Fiscal Year 2022 budget appropriation (by a 2/3 vote) for the:
a. Capital Improvement Fund by:
i. Increasing the transfer from the Stanford University Medical Center (SUMC) Fund by $25,000; and
ii. Increasing the University Avenue Streetscape Update Project (PE -21004) appropriation by $25,000.
b. Stanford University Medical Center (SUMC) Fund by:
i. Increasing the Transfer to the Capital Improvement Fund from Expansion Cost Mitigation by $25,000; and
ii. Decreasing the Ending Fund Balance by $25,000.

Background
University Avenue is a two -lane street that provides access from Highway 101 through the downtown area and continues to Stanford University. University Avenue is a regional and local public destinat ion for shopping, dining, and entertainment. Due to the COVID -19 pandemic impacts and to support local businesses and the community, the City closed portions of University Avenue to vehicular traffic in 2020 and 2021 through the “Uplift Local” program , enabling outdoor dining and retail experience s. To facilitate people -centric activities and to create a more vibrant and inclusive space to support residents and local businesses, staff issued 10 Packet Pg. 115

City of Palo Alto Page 2

a Request for Proposals (RFP) in September 2021 for University Ave nue to transform the streetscape by repurposing streets, sidewalks, curbs , and parking areas. The goal of the project is to adapt the public realm to maximize pedestrian and bicycle use, and accentuate and enhance the retail environment, while maintaining vital two -way vehicular access, parking opportunities, delivery and loading zones, ride share spaces, and other amenities including performance space.

On March 1, 2021, Council approved a new project, University Avenue Streetscape Update PE - 21004 (Staff Report ID #11872) as directed as part of the City Council approved workplan for Community and Economi c Recovery (CMR #11877). This workplan approved $150,000 of seed funding for this project recommended to be allocated from the Stanford University Medical Center Fund Expansion Cost Mitigation allocation of funding. On September 13, 2021, staff provided the RFP scope of services for Council’s feedback (Staff Report ID #13540). The RFP for Phase 1 of the project included site analysis and field survey work, preliminary environmental studies including a traffic study and arborist report, and public meetings to develop a community preferred plan line, cost estimates, and an assessment analysis to allocate the costs to businesses and property owners who would benefit from the expanded space.

Council directed staff to proceed with the University Avenue Streetscape Design RFP including stakeholder input , sales tax data analysis, and consultant’s recommendations based on the learning experiences from re-opening of University Avenue for vehicular traffic in October 2021.

Discussion
CSW/Stuber-Stroeh Engineering Group Inc. – Scope of Services The scope of services for the contract with CSW/Stuber-Stroeh Engineering Group Inc. (Attachment A) consists of Phase 1 of the 4 phases outlined in the RFP , which are summarized as follows:

Phase 1: Conceptual Design, Public Outreach, Preliminary Environmental Stu dies and Financial Assessment Analysis
Phase 2: Preliminary Design, Environmental Assessment, Value Engineering and Cost Estimates
Phase 3: Final Design, Construction Documents and Bidding Phase 4: Construction Administration

At this time, staff recommends authorizing the proposed contract for Phase 1 services only.

Subject to the City Council’s further review and consideration upon completion of the conceptual design under Phase 1, the contract would be amended to include services und er Phases 2 through 4.

The Phase 1 scope of services is briefly summarized below. • Stakeholder coordination and public outreach (City staff, residents, retail/businesses, Pedestrian and Bicycle Advisory Committee (PABAC), Planning and Transportation 10 Packet Pg. 116

City of Palo Alto Page 3

Commission (PTC), and Council).
• Data collection, field analysis, and surveys.
• Preliminary environmental studies including traffic and arborist reports. • Streetscape conceptual design alternatives and community preferred p lan line development.
• Cost estimate, funding and assessment planning.

Request for Proposal (RFP) Process
On September 1, 2021, the City released an RFP (No. 182372) for University Avenue Streetscape Design Project (PE -21004) for professional services. A total of 38 vendors downloaded the RFP and three proposals were received. An evaluation committee comprised of staff from the Public Works Department, Planning and Development Services Department , Office of Transportation, and City Manager’s Office reviewed the proposals in response to the crite ria identified in the RFP.

TABLE 1: SUMMARY OF SOLICITATION PROCESS
Proposal Description/ Number
University Avenue Streetscape Design Project
(PE-21004) RFP (Number 182372)
Proposed length of project Phase 1 – approximately 1 year; Phases 2 through 4 – approximately 4 years.

Number of websites 1 (PlanetBids)
Number of days to respond 42
Number of proposals received 3
Company Name Location
Selected for
Interview?
CSW/Stuber-Stroeh Engineering Group Inc. Novato, CA Yes BKF Engineers Redwood City, CA Yes
Wallace Roberts and Todd, LLC San Francisco, CA Yes
Submitted Basic Services Fee Range Phase 1: $149,742 to $150,000

On November 10, 2021, the evaluation committee interviewed all three firms that submitted proposals and recommended CSW/Stuber -Stroeh as the top -scoring proposer. Staff recommends awarding the contract to CSW/Stuber -Stroeh based on their experience with renovating streetscapes, public outreach, and understanding of the project goals and needs. In addition, CSW/Stuber -Stroeh’s environmental assessment and public outreach subconsultant, Gates and Associates, has extensive experience with Palo Alto community outreach and Boards and Commissions approval process es, which is important for successful project execution and timely completion.

The RFP requested pricing for services in phases 2 through 4 for the project. CSW/Stuber-Stroeh provided a total estimated cost of $870,000 for work in phases 2 through 4; however, the scope and estimate for future phases of work will be refined based on the selected conceptual design 10 Packet Pg. 117

City of Palo Alto Page 4

option in Phase 1.

The contract is on the City’s professional services template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non -appropriation of funds or amending the contract da te to reduce the cost, for example, by reducing the scope of work. The contract may also be temporarily suspended by written notice of the City Manager.

Timeline and Next Steps
Staff anticipates that Phase 1 services for conceptual design and preliminary engineering will take approximately one year to complete. Staff will return to Council in early 2023 to present the preferred plan line alternative for approval prior to proceeding with preliminary design and authorization for future phases of the design.

Resource Impact
Council approved $150,000 for this project on March 1, 2021 funded by the Stanford University Medical Center (SUMC) Fund Expansion Cost Mitigation allocation of funding . Based on the recommendations above, a n additional appropriation of $25,000 from the SUMC Fund Expansion Cost Mitigation allocation is required. This would result in the SUMC Fund Expansion Cost Mitigation allocation having a remaining balance of approximately $ 1.05 million in unallocated funding . The addit ional funding in cludes $14,986 for additional services and $10,014 for administrative costs for printing and outreach. Additional funding needed to support Phases 2 through 4 will be appropriated in future fiscal years to coincide with the design and construction schedule . CSW/Stuber-Stroeh provided a total estimated cost of $870,000 for work in phases 2 through 4 ; however, the scope and estimate for future phases of work will be refined based on the selected conceptual design option in Phase 1.

Policy Implications
The project is consistent with the Comprehensive Plan goals, policies and programs.

Policy L-4.7 Maintain and enhance the University Avenue/Downtown area as a major commercial center of the City, with a mix of commercial, civic, cultural, recreational and r esidential uses. Promote quality design that recognizes the regional and historical importance of the area and reinforces its pedestrian character.

Policy L-4.8 Ensure that University Avenue/Downtown is pedestrian -friendly and supports bicycle use. Use public art, trees, bicycle racks and other amenities to create an environment that is inviting to pedestrians and bicyclists.

10 Packet Pg. 118

City of Palo Alto Page 5

Policy B-6.1 Support and enhance the University Avenue/Downtown area as a vital mixed-use area prioritizing retail, personal se rvice, small office, start-ups, restaurant, residential and arts and entertainment uses. Recognize the importance of an appropriate retail mix, including small local businesses, to the continued vitality of Downtown.

Stakeholder Engagement
The scope of services under this contract includes public outreach and stakeholder engagement to develop a community preferred plan line alternative for the University Avenue streetscape design. Planned community meetings include meetings with residents, retail/businesse s, PABAC, PTC, and Council.

Environmental Review
CSW/Stuber-Stroeh will complete a preliminary environmental assessment including traffic study and arborist reports under the Phase 1 scope of services. Once a plan line alternative is developed for preli minary design, CSW/Stuber -Stroeh will complete an environmental assessment for evaluation under CEQA. It is anticipated that the initial study will conclude that an Environmental Impact Report or Mitigated Negative Declaration may be required for the project.

Attachments:
• Attachment10.a: Attachment A: CSW/Stuber Stroeh Engineering Group Inc., Contract C22182372
10 Packet Pg. 119

Professional Services
Rev. Dec.15, 2020

CITY OF PALO ALTO CONTRACT NO. C22182372

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND
CSW/STUBER-STROEH ENGINEERING GROUP INC.

This Agreement for Professional Services (this “Agreement”) is entered into as of the 28th day of February 2022 (the “Effective Date”) , by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CSW/STUBER-STROEH ENGINEERING GROUP INC., a California corporation, located at 45 Leveroni Court, Novato, CA 94949 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS

A. CITY intends to repurpose University Avenue Streetscape to facilitate people-centric activities and community programming (the “Project”) and desires to engage a consultant to provide professional design and engineering services in connection with the Project ( the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.

C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.

NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:

SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.

SECTION 2. TERM. 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. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.

DocuSign Envelope ID: 06003111-3850-4CFE-A077-1A9A38D783A4

10.a
Packet Pg. 120

Professional Services
Rev. Dec.15, 2020

CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.

SECTION 4. NOT TO EXCEED COMPENSATION . 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 One Hundred Forty Nine Thousand Eight Hundred Sixty-Six Dollars ($149,866.00). The hourly schedule of rates, if 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.

Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)

In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of Fourteen Thousand Nine Hundred Eighty -Six Dollars ($14,986.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C , shall not exceed One Hundred Sixty -Four Thousand Eight Hundred Fifty-Two Dollars ($164,852.00), as detailed in Exhibit C.

“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not require d to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section . Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.

Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and r eturn it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulati ve total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section

4. CONSULTANT shall only be compensated for Additional Services performed under an DocuSign Envelope ID: 06003111-3850-4CFE-A077-1A9A38D783A4

10.a
Packet Pg. 121

Professional Services
Rev. Dec.15, 2020

authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY.

CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.

SECTION 6. QUALIFICATIONS/STANDARD OF CARE . All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.

SECTION 7. COMPLIANCE WITH L AWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.

SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.

SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shal l submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendation s to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to DocuSign Envelope ID: 06003111-3850-4CFE-A077-1A9A38D783A4

10.a
Packet Pg. 122

Professional Services
Rev. Dec.15, 2020

CITY.

SECTION 10. INDEPENDENT CONTRACTOR . CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, worker s’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT.

Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained.

SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall no t assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect . Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties.

SECTION 12. SUBCONTRACTING.

Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are:

Gates and Associates, 2671 Crow Canyon Road, San Ramon, CA 94583 Fehr and Peers, 100 Pringle Avenue, Suite 600, Walnut Creek, CA 94596 LSA Associates, 20 Executive Park, Suite 200, Irvine, CA 92614

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 13. PROJECT MANAGEMENT. CONSULTANT will assign Michael Vidra, PE, QSD/QSP, LEED AP, Telephone (925) 787-4982, Email: [email protected] as the CONSULTANT’s Project DocuSign Envelope ID: 06003111-3850-4CFE-A077-1A9A38D783A4

10.a
Packet Pg. 123

Professional Services
Rev. Dec.15, 2020