Palo Alto City Council
October 6, 2025

Item 4
Attachment A - FY 2025 to FY 2026
Operating Reappropriation Requests

Item 4: Staff Report
Pg.
9 Packet Pg. 182 of 541

FY 2024 TO FY 2025 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund
Number Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
102 General Fund Non-Departmental Advancing Racial Equity This action reappropriates the remaining funds of the original $0.5 million appropriated for the advancement of racial equity and the associated workplan. The City is continuing efforts to educate and train staff, Council, and Boards and Commission members on Diversity, Equity, Inclusion, and Belonging (DEIB) topics.
$ 241,000
102 General Fund Planning and Development
Services
3225 El Camino Real - Deposit
Based Recovery Project
This cost-neutral action reappropriates the remainder of the budget related to the deposit based cost recovery project at 3225 El Camino Real.

This is a fully cost recoverable project that is tracked separately using deposit accounts. The funds do not comingle with other contract service budgets and funds are only accessible for this purpose. All costs will be reimbursed by the applicant.
$ 33,400 $ 33,400 102 General Fund Planning and Development
Services
Feasibility Study - Market,
Program, and Policy Analysis
This action reappropriates funding to support the Economic and Market Feasibility Study. The project was not under contract before the close of FY 2025 due to the City’s internal procurement timeline, which required a new purchase requisition to be issued in FY 2026. In addition to setting impact and in lieu fees that cover the City’s infrastructure costs to deliver services to new residents and businesses, the City also has an interest in ensuring that the fees set do not act as a deterrent to new development altogether.

As a result, a separate economic and market feasibility study is needed to ensure that development impact and in-lieu fees successfully support and sustain the City’s goals for growth. Based on the economic and market feasibility study’s findings, additional policy and program recommendations may be formed to provide the City and its development partners with alternative tools or pathways to meeting critical community infrastructure needs over time.
$ 175,000
102 General Fund Planning and Development
Services
Development Impact and In-Lieu
Fee Study
This action reappropriates funding to support the Development Impact and In-Lieu Fee Study. The project was not under contract before the close of FY 2025 due to the City’s internal procurement timeline, which required a new purchase requisition to be issued in FY 2026. Under Assembly Bill (AB) 602 (2021), a city’s development impact and in-lieu fees must be updated at least every eight years. The nexus study will create a legal basis for the fees the City will set and collect by comparing land use and population growth projects with an updated community infrastructure needs assessment. The fees must be set correctly to ensure that the monies collected from new land use development projects are sufficient to cover the costs of the additional community infrastructure needs they create.

This study will provide a comprehensive nexus analysis of all 13 city-wide development impact and in-lieu fees.
$ 275,000

Item 4
Attachment A - FY 2025 to FY 2026
Operating Reappropriation Requests

Item 4: Staff Report
Pg.
10 Packet Pg. 183 of 541

FY 2024 TO FY 2025 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund
Number Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
102 General Fund Public Works Sustainability S/CAP Studies This action reappropriates $55,000 remaining from the $0.6 million allocated in the FY 2024 Adopted Budget to perform S/CAP studies. The funds will allow Energy and Environmental Economics (E3) to complete studies critical to the implementation of S/CAP that were started but not completed in FY 2024 and FY 2025 : 1) the S/CAP Funding Source Survey, 2) the Building Sector Study, 3) the EV Charger Strategic Plan, and 4) the S/CAP Funding Study. All four studies are on track to be completed in FY 2026.
$ 55,000
102 General Fund Public Works Foothills Fire Management Plan This action reappropriates funding for the Foothills Fire Management Plan which includes roadside vegetation management and clearing, fuels and fire danger assessment, and fire prevention and preparedness. Work was unable to be completed in FY 2025 due to the inability to use in-house traffic control unlike prior year and delays in the purchasing process. This will provide funding to partner with the Santa Clara County Fire Safe Council for this work as approved by the City Council on 8/8/25 (Staff Report 2507-4923).
$ 91,400
102 General Fund Public Works San Francisco Airport (SFO) Ground Based Augmentation System
(GBAS) and Airplane Noise
This action reappropriates funding to continue engagement with SFO's Ground Based Augmentation System (GBAS) project and other potential opportunities to decrease airplane noise impacts (formerly CHS11). This action reappropriates $75,000 that had been allocated in the FY 2024 Adopted Budget for an on-call professional services contract to support work tasks resulting from engagement initiated but not completed in FY 2024 and 2025 with SFO on the GBAS project and other potential actions to decrease airplane noise.
$ 75,000
33,400$ 1,531,800$
526 Wastewater Treatment
Fund
Public Works Biosolids Screw Conveyors Repair This action reappropriates funding for repairs to the large screw conveyors in solids building at the Regional Water Quality Control Plant (WQCP).

Work was unable to be completed in FY 2025 due to delays in the purchasing process and repairs are needed to ensure the ability for the WQCP to treat and process biosolids.
$ - $ 105,100 Total General Fund Reappropriation

Item 4
Attachment A - FY 2025 to FY 2026
Operating Reappropriation Requests

Item 4: Staff Report
Pg.
11 Packet Pg. 184 of 541

FY 2024 TO FY 2025 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund
Number Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
524 Gas Fund Utilities Gas Cap and Trade Support for
Electrification Pilot Programs
This action reappropriates $1.4 million in Contract Services and General Expense within the Gas Cap and Trade Cost Center. This amount includes $746,000 in unencumbered spending authority from the Advanced Single Family Electrification Pilot Program approved by Council at its Tuesday, May 27, 2025 meeting as an amendment to the FY 2025 budget, and $654,000 related to the ongoing 1000-unit Advanced Heat Pump Water Heater Pilot Program. In October 2022, the Council approved a $5.9 million budget for a 1000-unit Advanced Heat Pump Water Heater Pilot Program.

This budget was supplemented by $846,000 in April 2024. About $3.45 million has been expended since program inception, leaving approximately $3.3 million in remaining program authority. Of this, $654,000 has not been encumbered. Six hundred and thirteen heat pump water heaters had been installed as of July 3, 2025.
$ - $ 1,400,000 - 1,505,100
248 SLES Fund Police National Opioid Settlement In April 2023, the City Council approved Staff Reports 2304-1253 and 2304- 1274 to accept proceeds from the National Opioid Settlement between Opioid distributors/manufacturers and subrecipients such as states, counties, and cities. As of now, the City has received $253,216 in settlement funds to be used for specific purposes defined and overseen by the State of California Department of Public Health. Of the amount received, $600 has been utilized in FY 2025. The Department is requesting the remaining unencumbered amount be reappropriated to FY 2026 for use in a treatment contract with Stanford University. The treatment contract aims to expand the clinical services offered at the Opportunity Center to include substance use treatment for residents with low or no income.
$ 253,215
248 SLES Fund Police Wellness Grant In March 2023, the City received $47,742 from the State of California Board of State and Community Corrections (BSCC) for the Officer Wellness and Mental Health Grant Program. This wellness grant provides funding for law enforcement agencies to improve officer wellness and expand mental health resources. The funds were not yet spent because the Department was researching and obtaining vendor quotes for wellness services. This action reappropriates the remaining funds to FY 2026 for training and department-wide comprehensive body scans used for early detection of illness and disease.
$ 46,500
- 299,715
682 Tech Fund Information Technology Infrastructure Maintenance This action reappropriates $181,800 to support the replacement and maintenance of core IT infrastructure that was unable to be completed in FY 2025. Planned expenditures include the replacement of network switches as well as associated maintenance and support services. $ - $ 181,800 Total Enterprise Fund Reappropriation
Total Special Revenue Fund Reappropriation

Item 4
Attachment A - FY 2025 to FY 2026
Operating Reappropriation Requests

Item 4: Staff Report
Pg.
12 Packet Pg. 185 of 541

FY 2024 TO FY 2025 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund
Number Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
682 Tech Fund Planning and Development
Services
PDS Tech Fee This action reappropriates $286,000 in Planning and Development Services Tech Fee budget. As part of the Adopted Municipal Fee Schedule, some PDS fees include a surcharge to support ongoing technology projects.

These projects include ongoing technical support of the City's Geographic Information System (GIS) and the ESRI platform, developing a permit wizard to guide applications of permitting needs, completing the development of an in house version of BuildingEye, and digitizing and storing plans and records.
$ - $ 286,000 -$ 467,800$
33,400$ 3,804,415$
Total Internal Service Fund Reappropriation
Total All Funds Reappropriation

Item 4
Attachment A - FY 2025 to FY 2026
Operating Reappropriation Requests

Item 4: Staff Report
Pg.
13 Packet Pg. 186 of 541

Fund Number and Name Project Title Proj. No. Adopted Exp Reapp Final Exp Reapp Total Exp Reapp Adopted Rev Reapp Final Rev Reapp Total Rev Reapp 471-Capital Improvement Fund Americans With Disabilities Act Compliance PF-93009 200,000 - 200, 000 - - - Animal Shelter Renovation PE-19002 2,420,239 300, 000 2, 720,239 - - - Art In Public Spaces AC-86017 1,657,951 52, 587 1, 710,538 - - - Athletic Courts Resurfacing PG-06001 139,290 14, 305 153, 595 - - - Baylands Boardwalk Piling Repair PE-24000 33,787 100, 105 133, 892 - - - Baylands Comprehensive Conservation Plan PG-17000 43,100 - 43, 100 - - - Baylands Interpretive Signage Program OS-24001 47,343 - 47, 343 47, 343 ( 5,525) 41, 818 Baylands Nature Preserve Entrance Gate OS-24000 1,374 ( 1,374) - - - - Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities PG-06003 78,298 79, 393 157, 691 - - - Bicycle and Pedestrian Transportation Plan Implementation PL-04010 1,937,186 1, 191,416 3, 128,602 - 86, 300 86, 300 Boulware Park Improvements PE-17005 143,174 18, 070 161, 244 - 188, 979 188, 979 Building Systems Improvements PF-01003 65,000 899, 753 964, 753 - - - California Avenue District Gateway Signs PE-17004 123,382 - 123, 382 - - - California Avenue Parking District Parking Improvements PF-25000 - 100, 000 100, 000 - 100, 000 100, 000 California Avenue Streetscape Update PL-23000 - 140, 823 140, 823 - - - Charleston Road/Alma Street Railroad Crossing Safety Improvements PL-25002 - 31, 395 31, 395 - 479, 541 479, 541 Charleston/Arastradero Corridor Project PE-13011 - - - - 4, 834 4, 834 Children's Theatre Facility Upgrade/Repair AC-28002 125,000 - 125, 000 - - - Churchill Avenue Enhanced Bikeway PL-14000 200,000 275, 849 475, 849 - - - Churchill Avenue Rail Grade Separation and Safety Improvements PL-24001 - - - - 91, 165 91, 165 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements PL-20000 - 2, 645,652 2, 645,652 - 3, 530,647 3, 530,647 City Bridge Improvements PE-20001 1,508,071 1, 312 1, 509,383 - - - City Hall Space Planning PE-19000 486,400 - 486, 400 - - - Civic Center Electrical Upgrade & EV Charger Installation PE-17010 1,265,872 70, 001 1, 335,873 - 174, 000 174, 000 Civic Center Fire Life Safety Upgrades PE-18016 131,741 18, 256 149, 997 - - - Civic Center Waterproofing Study and Repairs PE-15020 427,537 - 427, 537 - - - Curb and Gutter Repairs PO-12001 - 121, 606 121, 606 - - - Downtown Automated Parking Guidance Systems PL-15002 - 62, 444 62, 444 - - - El Camino Park Turf Replacement PG-24000 639,550 21, 217 660, 767 - - - Electric Charger Infrastructure Installation PF-23000 - 183, 229 183, 229 - - - Electrification of City Facilities PE-24001 - 876, 179 876, 179 - - - Facility Interior Finishes Replacement PF-02022 457,517 ( 63,268) 394, 249 - - - Fire Equipment Replacement FD-25000 - 93, 353 93, 353 - 16, 480 16, 480 Fire Station 4 Replacement PE-18004 - 13, 931,569 13, 931,569 - - - Fire Training Facility Replacement FD-24000 49,988 - 49, 988 - - - Foothills Nature Preserve Boronda Lake Dock Replacement OS-18000 102,000 48, 325 150, 325 - - - Foothills Nature Preserve Dam Seepage Investigation and Repairs PE-20000 18,463 ( 319) 18, 144 - - - Foothills Nature Preserve Improvements PE-21000 692,744 2, 074 694, 818 - - - Golf Course Net and Artificial Turf Replacement PG-18000 770,000 - 770, 000 - - - Golf Reconfiguration & Baylands Athletic Center Improvements PG-13003 97,906 47, 577 145, 483 - - - Heritage Park Site Amenities Replacement PG-21000 40,000 62, 835 102, 835 - - - Homekey Facilities PE-24005 - 2, 337,867 2, 337,867 - - - JMZ Renovation AC-18001 398,024 41, 837 439, 861 - - - Library Automated Material Handling LB-21000 324,586 ( 3,251) 321, 335 - - - Lucie Stern Community Theater Mechanical Equipment Replacement PE-24002 2,199,713 - 2, 199,713 - - - Lucie Stern Community Theatre Fire Curtain AC-24001 200,000 - 200, 000 - - - Lucie Stern Community Theatre Theatrical and House Lighting System Replacement PE-24003 - 276, 350 276, 350 - - - Meadow Drive and Charleston Road Rail Grade Separation and Safety Improvements PL-24000 - - - - 179, 537 179, 537 Mitchell Park Library Repair PE-24006 151,192 - 151, 192 - - - Municipal Service Center Lighting, Mechanical, and Electrical Improvements PF-16006 6,365,504 - 6, 365,504 - - - New California Avenue Area Parking Garage PE-18000 743,876 3, 136 747, 012 - - - New Downtown Parking Garage PE-15007 13,106,958 - 13, 106,958 13, 106,958 - 13, 106,958 New Public Safety Building PE-15001 - 68, 773 68, 773 - - - Newell Road/San Francisquito Creek Bridge Replacement PE-12011 - 1, 031,715 1, 031,715 - 11, 009,430 11, 009,430 Off-Road Pathway Resurfacing And Repair OS-09001 - 253, 096 253, 096 - - - Open Space Lakes And Pond Maintenance OS-00002 74,430 - 74, 430 - - - Open Space Trails and Amenities OS-00001 91,773 1, 526 93, 299 - - - Expenses Revenues
Attachment B

Item 4
Attachment B - FY 2025 to FY 2026 Capital
Reappropriation Requests

Item 4: Staff Report
Pg.
14 Packet Pg. 187 of 541

Fund Number and Name Project Title Proj. No. Adopted Exp Reapp Final Exp Reapp Total Exp Reapp Adopted Rev Reapp Final Rev Reapp Total Rev Reapp Expenses Revenues
471-Capital Improvement Fund Palo Alto Art Center Ceramics Equipment AC-28003 - 3, 961 3, 961 - - - Park and Open Space Emergency Repairs PG-09002 95,161 109, 060 204, 221 - - - Park Restroom Installation PG-19000 173,898 467, 943 641, 841 - 353, 770 353, 770 Parking District Implementation PL-15003 163,900 - 163, 900 - - - Performing Arts Venues Seat Replacement AC-18000 53,289 107, 079 160, 368 - - - Railroad Grade Separation and Safety Improvements PL-17001 - - - - 93, 843 93, 843 Ramos Park Improvements PG-14000 1,010 43, 185 44, 195 - - - Rinconada Park Improvements PE-08001 - 101, 150 101, 150 - - - Rinconada Pool Family Changing Room PE-24004 1,181,202 - 1, 181,202 371, 165 - 371, 165 Robles Park Improvements PE-18015 641,308 650 641, 958 - - - Roofing Replacement PF-00006 - 722, 800 722, 800 - - - Roth Building Rehabilitation Phase 1 PF-23001 - - - - 572, 673 572, 673 Safe Routes To School PL-00026 888,000 553, 067 1, 441,067 388, 000 500, 000 888, 000 San Francisquito Creek Joint Powers Authority Ongoing Creek Projects PE-22000 150,652 29, 126 179, 778 - - - Sidewalk Repairs PO-89003 100,000 10, 926 110, 926 - - - Sign Reflectivity Upgrade PO-11000 - 20, 000 20, 000 - - - Stanford Palo Alto Community Playing Fields Turf Replacement PG-26000 - 306, 419 306, 419 - - - Street Lights Condition Assessment PE-13014 220,000 - 220, 000 - - - Street Lights Improvements PO-05054 108,422 117, 774 226, 196 - - - Street Maintenance PE-86070 218,549 305, 187 523, 736 - 16, 544 16, 544 Thermoplastic Lane Marking and Striping PO-11001 125,000 ( 86,258) 38, 742 - - - Traffic Intersection Accessibility Improvement Project PL-25001 250,000 250, 000 500, 000 250, 000 250, 000 500, 000 Traffic Signal and Intelligent Transportation Systems PL-05030 - 2, 608,269 2, 608,269 - 2, 348,721 2, 348,721 Transportation and Parking Improvements PL-12000 250,000 39, 842 289, 842 250, 000 168, 277 418, 277 University Avenue Parking Improvements PF-14003 - 126, 527 126, 527 - - - University Avenue Streetscape Update PE-21004 151,443 623, 557 775, 000 - - - 471-Capital Improvement Fund Total 42,330,803 31,795,675 74,126,478 14,413,466 20,159,217 34,572,683 472-Cubberley Fund Cubberley Community CB-26000 - 78, 764 78, 764 - - - Cubberley Community Center Master Plan CB-16001 - 23, 515 23, 515 - - - Cubberley Field Restroom CB-17002 27,697 - 27, 697 - - - Cubberley Roof Replacement CB-16002 100,000 ( 1,104) 98, 896 - - - 472-Cubberley Fund Total 127,697 101,175 228,872 - - - 530-Airport Fund Airport Layout Plan AP-21000 - - - - 58, 393 58, 393 Automated Weather Observation System AP-19000 1,340,237 - 1, 340,237 1, 291,050 - 1, 291,050 530-Airport Fund Total 1,340,237 - 1,340,237 1,291,050 58,393 1,349,443 523-Electric Fund 115 kV Electric Intertie EL-06001 - 137, 155 137, 155 - - - Colorado Distribution Feeder Outlet Replacement EL-22002 379,109 - 379, 109 - - - Colorado Power Station Equipment Upgrades EL-19001 2,725,339 - 2, 725,339 - - - Colorado Substation Site Improvements EL-19002 1,041,142 64, 544 1, 105,685 - - - Electric Utility Geographic Information System EL-02011 - 250, 000 250, 000 - - - Foothills Rebuild (Fire Mitigation) EL-21001 1,599,239 ( 1,206,587) 392, 652 - - - Grid Modernization for Electrification EL-24000 - - - 50, 000,000 50, 000,000 Hanover Substation Upgrade Project EL-24001 14,779,014 ( 496,172) 14, 282,842 - - - Inter-substation Line Protection Relay EL-17005 616,645 - 616, 645 - - - Smart Grid Technology Installation EL-11014 876,335 ( 268,050) 608, 285 - - - Substation Breaker Replacement EL-17002 2,748,481 ( 7,911) 2, 740,570 - - - Substation Facility Improvements EL-89044 645,606 - 645, 606 - - - Substation Physical Security EL-16003 2,476,728 393, 426 2, 870,154 - - - Underground System Rebuild EL-16001 - 308, 270 308, 270 - - - Wood Pole Replacement EL-19004 328,950 - 328, 950 - - - 523-Electric Fund Total 28,216,588 (825,326) 27,391,262 - 50,000,000 50,000,000 533-Fiber Optics Fund Fiber Optic Customer Connections FO-10000 153,100 ( 23,690) 129, 410 - - - Fiber Optic Network System Improvements FO-10001 540,325 - 540, 325 - - - Fiber-to-the-Premise FO-24000 10,946,450 - 10, 946,450 - - - 533-Fiber Optics Fund Total 11,639,875 (23,690) 11,616,185 - - - 524-Gas Fund Gas Equipment & Tools GS-13002 - 47, 124 47, 124 - - - Attachment B

Item 4
Attachment B - FY 2025 to FY 2026 Capital
Reappropriation Requests

Item 4: Staff Report
Pg.
15 Packet Pg. 188 of 541

Fund Number and Name Project Title Proj. No. Adopted Exp Reapp Final Exp Reapp Total Exp Reapp Adopted Rev Reapp Final Rev Reapp Total Rev Reapp Expenses Revenues
524-Gas Fund Gas Line Repair at Arastradero Creek GS-25001 999,558 - 999, 558 - - - Gas Main Replacement-Project 25 GS-15000 8,728,324 ( 154,935) 8, 573,389 - - - Gas Meters and Regulators GS-80019 516,000 ( 67,520) 448, 480 - - - Gas System Improvements GS-11002 - 88, 989 88, 989 - - - 524-Gas Fund Total 10,243,882 (86,342) 10,157,540 - - - 528-Stormwater Fund Corporation Way System Upgrades SD-21000 - 261, 253 261, 253 - - - Green Stormwater Infrastructure SD-22001 1,239,330 519, 875 1, 759,205 1, 215,562 ( 157,516) 1, 058,046 Storm Drain Pump Station to Adobe Creek SD-20000 - 25, 727 25, 727 - - - Storm Drain System Repl & Rehab SD-06101 1,183,015 - 1, 183,015 - - - Trash Capture Device Installation SD-22002 - 77, 642 77, 642 - 161, 837 161, 837 W Bayshore Rd Trunk Line Improvements SD-23000 - 25, 519 25, 519 - - - 528-Stormwater Fund Total 2,422,345 910,016 3,332,361 1,215,562 4,321 1,219,883 527-Wastewater Collection Fund Sewer Lateral/Manhole Rehabilitation and Replacement WC-99013 - 587, 313 587, 313 - - - Wastewater Collection System Rehabilitation/Augmentation Project 32 WC-20000 1,000,000 - 1, 000,000 - - - Wastewater General Equipment and Tools WC-13002 - 64, 328 64, 328 - - - Wastewater System Improvements WC-15002 - 152, 760 152, 760 - - - 527-Wastewater Collection Fund Total 1,000,000 804,402 1,804,402 - - - 526-Wastewater Treatment Fund Advanced Water Purification Facility WQ-19003 - 7, 472,470 7, 472,470 - 63, 821,151 63, 821,151 Headworks Facility Replacement WQ-16002 1,638,974 1, 500,000 3, 138,974 - 4, 757,000 4, 757,000 Joint Intercepting Sewer Rehabilitation WQ-24000 - 2, 800,406 2, 800,406 - 2, 800,406 2, 800,406 Laboratory & Environmental Svcs Bldg WQ-14002 16,472,600 ( 43,769) 16, 428,831 - 16, 410,000 16, 410,000 Outfall Line Construction WQ-19000 10,605,800 - 10, 605,800 - 10, 582,800 10, 582,800 Plant Master Plan WQ-10001 - 440, 000 440, 000 - - - Primary Sedimentation Tank Rehabilitation WQ-14003 - - - - 2, 329,807 2, 329,807 Secondary Treatment Upgrades WQ-19001 811,320 300, 000 1, 111,320 - 81, 805,709 81, 805,709 526-Wastewater Treatment Fund Total 29,528,694 12,469,107 41,997,801 - 182,506,873 182,506,873 522-Water Fund Seismic Water System Upgrade WS-09000 - 1, 512,037 1, 512,037 - - - Water Distribution System Improvement WS-11003 - 150, 000 150, 000 - - - Water Fusion & Gen Equipt/Tools WS-13002 - 50, 000 50, 000 - - - Water Main Replacement-Project 30 WS-16001 - 746, 279 746, 279 - - - Water Meters WS-80015 - 60, 955 60, 955 - - -
Water Supply System Improvement WS-11004 3,307,792 - 3, 307,792 - - - 522-Water Fund Total 3,307,792 2,519,270 5,827,062 - - - 682-Technology Fund City Council Chamber TE-19001 1,483,737 178, 900 1, 662,637 - - - Computer Aided Dispatch TE-23000 320,000 266, 000 586, 000 - - - Enterprise Resource TE-19000 230,000 1, 207 231, 207 - - - Infrastructure Management TE-13004 285,906 72, 632 358, 538 - - - IT Data Center Upgrade TE-25000 850,000 150, 000 1, 000,000 - - - 682-Technology Fund Total 3,169,643 668,739 3,838,382 - - - 681-Vehicle Fund Emergency Repair and Replacement VR-15001 158,194 - 158, 194 - - - Scheduled Vehicle and Equipment Replacement - Fiscal Year 2020 VR-20000 30,000 - 30, 000 - - - Scheduled Vehicle and Equipment Replacement - Fiscal Year 2021 VR-21000 16,981 - 16, 981 - - - Scheduled Vehicle and Equipment Replacement - Fiscal Year 2023 VR-23000 712,277 ( 681,383) 30, 894 - - - Scheduled Vehicle and Equipment Replacement - Fiscal Year 2024 VR-24000 3,296,275 ( 283,047) 3, 013,228 - - - Scheduled Vehicle and Equipment Replacement - Fiscal Year 2025 VR-25000 3,398,584 220, 248 3, 618,832 - - - 681-Vehicle Fund Total 7,612,311 (744,182) 6,868,129 - - - Grand Total 140,939,867 47,588,845 188,528,711 16,920,078 252,728,804 269,648,882 Attachment B

Item 4
Attachment B - FY 2025 to FY 2026 Capital
Reappropriation Requests

Item 4: Staff Report
Pg.
16 Packet Pg. 189 of 541

CAPITAL IMPROVEMENT PLAN FY 2025 TECHNICAL CLEAN-UP ACTIONS ATTACHMENT C Fund Name Department Project No. Project Title Description Revenue Expense Capital Improvement Fund Public Works PF-23001 Roth Building Rehabilitation Phase I Due to higher-than-budgeted salary and benefit costs in prior years, the remaining funds in this
project are insufficient to cover the moving,
furniture, fixtures, and equipment costs of $0.1
million which were programmed in the FY 2025-
2029 Capital Improvement Plan. This action will
increase appropriation by $0.1 million in FY 2026 to
restore the full amount of funding required for
those costs and maintain the overall project scope.
$ - $ 100,000
Capital Improvement Fund Public Works PE-26003 Emergency Gate at Foothill and Miranda At a Neighborhood Town Hall meeting on June 11, 2025, residents expressed concerns about
emergency evacuations. In response, staff
recommends a new capital project with initial
funding of $50,000 to evaluate the feasibility of
installing an emergency gate near the end of
Miranda Avenue to Foothill Expressway. Factors to
be evaluated include property ownership, right-of-
way issues, utility and tree conflicts, and access
restrictions. Staff will also coordinate with Santa
Clara County permitting staff.
$ - $ 50,000
Item 4
Attachment C - Capital Improvement
Plan FY 2026 Technical Clean-up
Actions

Item 4: Staff Report
Pg.
17 Packet Pg. 190 of 541

City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 6, 2025
Report #:2507-5009
TITLE
Approval of Construction Contract No. C25195264 with Precision Engineering, Inc. in the Amount Not-to-Exceed $6,842,121 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not-to-Exceed Amount of $684,212 for the Hamilton Avenue Capacity Upgrades Project (SD-25000), and Approval of a Budget Amendment in the Stormwater Management Fund; CEQA Status – Exempt under CEQA Guidelines Section 15301(c)

RECOMMENDATION
Staff recommends that the City Council:

1. Approve and authorize the City Manager or their designee to execute Construction Contract No. C25195264 with Precision Engineering, Inc. in the amount not-to-exceed $6,842,121 for the Hamilton Avenue Capacity Upgrades Project (SD-25000);

2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Precision Engineering, Inc. for related additional but unforeseen work that may develop during the project, the total value of which shall not exceed $684,212; and

3. Amend the Fiscal Year 2026 Budget Appropriation for the Stormwater Management Fund (requires a 2/3 vote) by:
a. Increasing the expense appropriation for the Hamilton Avenue Capacity Upgrades project (SD-25000) by $625,000; and
b. Decreasing the Stormwater Management Fund balance by $625,000.

EXECUTIVE SUMMARY
Hamilton Avenue from Center Drive to Rhodes Drive is prone to flooding due to an undersized storm drain system. The 2015 Storm Drain Master Plan identified upsizes to the storm system at Hamilton Avenue as a high priority project, and this project is included among the 13 high Item 5
Item 5 Staff Report

Item 5: Staff Report
Pg.
1 Packet Pg. 191 of 541

priority capital projects in the 2017 Stormwater Management ballot measure. The Hamilton Avenue Capacity Upgrades project will install larger storm pipes and manholes to convey the storm runoff from a 10-year storm event. Construction bids were solicited through OpenGov and four bids were received. The construction contract is being awarded to the lowest responsible bidder. A budget amendment in the Stormwater Management Fund is needed to fully fund the contract.

BACKGROUND
The 2015 Storm Drain Master Plan identified projects throughout the City to convey a 10-year storm event. In 2017, voters approved a ballot measure to continue the Stormwater Management Fee to implement 13 new storm drain Capital Improvement Program (CIP) projects to upgrade and improve the storm drain system in Palo Alto. Three of the 13 projects are completed. Loma Verde Avenue Trunk Line Improvement Project (SD-19000) was completed in 2020, and East Meadow Drive Capacity Upgrades (SD-22000) and East Meadow Circle Connection to Adobe Creek Pump Station (SD-26000) were both completed in June 2024.

Three projects, Corporation Way System Upgrades and Pump Station (SD-21000), West Bayshore Road Pump Station (SD-20000), and West Bayshore Road Trunk Line Improvements (SD-23000) started construction in June 2025 and will be completed by Fall 2026.

The Hamilton Avenue Capacity Upgrades Project (SD-25000), the seventh project, extends from Center Drive to Rhodes Drive and was identified as a high-priority improvement. Currently, runoff from the 1400 block of Hamilton Avenue is collected through the storm drain network and flows west through pipes on Newell Road towards the Channing Avenue storm drain.

Runoff from 1500 through 1700 blocks flows south towards Greer Road. The existing storm drains on Hamilton Avenue vary from 12 to 21 inches in diameter. This network is undersized and lacks the capacity to convey the runoff from a 10-year storm event. In addition, a section of the 1500 block of Hamilton Avenue does not have any storm drains or inlets. Runoff from this area flows along the gutter pan to the nearest inlet on Madison Way.

The project will upsize the existing 12-inch pipe, between Center Drive and Newell Drive and replace associated manholes and catch basins. At Newell Road the project will introduce a bypass. A new, deeper 48-inch pipe will intercept runoff and direct it to the south on Hamilton Avenue rather than west toward Channing Avenue. The project will install new 48-inch pipes between Newell Road and Madison Way. The 48-inch pipes continue past Madison Way and direct runoff towards the 96-inch line near Greer Road. The proposed upgrades and re-direction of flows at Newell Road intersection will reduce the flooding that occurs during large storm events. While the project is not specifically designed to accommodate potential flood waters from any overflowing of San Francisquito Creek, it does significantly increase the storm drain system’s capacity to convey such water to the San Francisquito Creek pump station. The pump station, completed in 2011 with a pumping capacity of 300 cubic feet per second (cfs), allows stormwater to be pumped into San Francisquito Creek even during high tide events. The Item 5
Item 5 Staff Report

Item 5: Staff Report
Pg.
2 Packet Pg. 192 of 541

current capacity of the Hamilton Avenue storm drain line is 15-20 cfs, while the new system will have a capacity of 90 cfs. Following the New Year’s Eve 2022 San Francisquito Creek flooding event, staff reprioritized the project to be built sooner, in recognition of its ability to partially mitigate the impacts of any future Creek flooding that may occur before the Reach 2 flood control project is completed.

The project includes installing 100 linear feet of 36-inch pipe on Center Drive starting at Hamilton Avenue going towards Dana Avenue. This segment is part of the Center Drive Capacity Upgrades project, another of the projects approved by voters that is currently scheduled for Fiscal Year 2027. The segment was advanced to coordinate with the Office of Transportation’s project to construct new concrete median islands and redesign the traffic circle at the Hamilton Avenue, Southwood Drive and Center Drive intersection.

Due to pipe upgrades, the directly connected catch basins will have to be removed and replaced. The large increases in pipe size include possible utility relocations of the street light conduits due to their proximity to the proposed gravity storm drain lines.

ANALYSIS
Project Description
The project limits are Hamilton Avenue from Center Drive to Rhodes Drive, depicted on the attached Location Map (Attachment A). Staff recommends the approval of Contract No.

C251952641 for the construction of the Hamilton Avenue Capacity Upgrades Project.

The work under this contract includes the installation of 2,084 linear feet of 48-inch diameter pipe, and 1,604 linear feet of dual parallel storm drains consisting of 24-inch and 36-inch pipes on Hamilton Avenue. Pipe replacement in the streets requires additional contract work such as pavement restoration, striping, replacement of sidewalk, curb and gutter, and curb ramps due to the location of the work. Although the project has been designed to avoid utilities conflicts, the contract includes an allowance for the cost of potential utility service relocations in locations where the existing utilities services (water, gas, cable, electric and sanitary sewer) may conflict with the installation of the new storm drain pipes. The project will also remove six small storm drain manholes, and replace them with either larger junction boxes or larger manholes, and modify one existing junction box located near the intersection of Rhodes Drive and Hamilton Avenue.

The work on Center Drive includes the installation of 100 linear feet of 36-inch pipe and two manholes. The project also includes removal and replacement of one curb ramp, and segments 1 Precision Engineering, Inc. Hamilton Avenue Capacity Upgrades Project Contract No. C25195264 https://www.paloalto.gov/files/assets/public/v/1/public-works/staff-reports-all/2025/precision-engineering- hamilton-ave-capacity-upgrades-c26195264.pdf
Item 5
Item 5 Staff Report

Item 5: Staff Report
Pg.
3 Packet Pg. 193 of 541

of curb and gutter, and sidewalk.

Solicitation Process
On July 25, 2025, an Invitation for Bids (IFB) for the Hamilton Avenue Capacity Upgrades Project was posted on OpenGov. A non-mandatory pre-bid meeting was held on August 4, 2025, within the 21-day bidding period. Nine bidders attended the pre-bid meeting to discuss the project.

The invitation for bids was structured to select the lowest bidder using the base bid. Bids were received from four qualified contractors on August 15, 2025, as listed on the attached Bid Summary (Attachment B).

Table 1: Summary of Invitation for Bids
Project Bid Name / Number Hamilton Avenue Capacity Upgrades Project SD-25000, IFB No. 195264
Proposed Length of Project 10 Months (303 Calendar Days) Pre-Bid Meeting Yes
Number of Company Attendees at Pre-Bid Meeting 9
Number of Bids Received 4
Base Bid Price Range $6,842,121 - $13,356,000
Public Link Solicitation https://procurement.opengov.com/portal/palo-alto- ca/projects/186570
Bids ranged from $6,842,121 to $13,356,000 and from 1% to 98% over the engineer’s estimate of $6,745,897. Staff reviewed the bids submitted and recommends acceptance of the base bid submitted by Precision Engineering, Inc. in the amount of $6,842,121, and that Precision Engineering, Inc. be declared the lowest responsible bidder. The construction contingency amount of $684,212, which equals 10% of the contract value, is requested for related, additional, but unforeseen work which may develop during the project, implemented via City- approved Change Order.

The solicitation included an add-alternate bid item to rehabilitate the storm drain system along Alester Avenue and between Hamilton and Dana Avenue. Precisions Engineering, Inc.’s bid for the add-alternate work was 257% over the engineer’s estimate. This scope of work is not included in the recommended contract. Staff will bid this work separately in the winter to allow the work to be performed in summer while school is not in session.

Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff also contacted the listed references for Precision Engineering, Inc. and found that they performed satisfactorily on past construction projects for other clients and the City.

Item 5
Item 5 Staff Report

Item 5: Staff Report
Pg.
4 Packet Pg. 194 of 541

FISCAL/RESOURCE IMPACT
Partial funding for the contract recommended in this report is available in the Fiscal Year 2026 Adopted Stormwater Management Fund Capital Budget for the Hamilton Avenue Capacity Upgrades project (SD-25000). To fully fund the contract, staff recommends increasing the appropriation for Fiscal Year 2026 in the Hamilton Avenue Capacity Upgrades Project (SD- 25000) by $625,000 and decreasing the balance of the Stormwater Management Fund by $625,000.

Staff has reviewed funding in the Stormwater Management Fund and anticipates being able to complete the remaining 6 of the 13 ballot measure projects with the projected funding through the duration of the ballot measure. However, if projects come in higher than the 2015 Storm Drain Master plan estimates that were included in the ballot measure, staff may need to consider adjusting funding for annual rehabilitation and replacement projects and reprioritizing the remaining 6 projects that have not started design, as well as assessing other non-capital budget appropriations in this fund.

STAKEHOLDER ENGAGEMENT
Staff presented to the Stormwater Management Oversight Committee on the progress of the design of the Hamilton Avenue Capacity Upgrades project. Once the construction contract is awarded, staff will continue to notify and update the Storm Water Management Oversight Committee during construction.

Extensive public outreach will be conducted before and during the construction phase to keep the community informed throughout the process, including flyers sent to adjacent residences, schools, and businesses, and notices posted online on Nextdoor and the City’s website.

ENVIRONMENTAL REVIEW
This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15301 (d) (repair, maintenance and/or minor alteration of existing facilities and 15302 (c) (replacement of existing structures) of the CEQA Guidelines and no further environmental review is necessary.

ATTACHMENTS
Attachment A: Location Map
Attachment B: Bid Summary
APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
Item 5
Item 5 Staff Report

Item 5: Staff Report
Pg.
5 Packet Pg. 195 of 541

DANA AVENUE

ASHBY DRIVE

CENTER DRIVE CENTER DRIVE
PITM

AN AVENUE

CENTER DRIVE

CHANNING AVENUE

HUTCHINSON AVENUE

SOUTHWOOD DRIVE
HAM

ILTON AVENUE

ARCADIA PLACE

SHARON COURT
GREENW

OOD AVENUE

NEWELL ROAD

NEWELL ROAD

LOUISA COURT
NEW

ELL PLACE
W

ALTER H

AYS DRIVE
IRIS W
AY
W

ALTER HAYS DRIVE

CHANNING AVENUE

ALESTER AVENUE

DANA AVENUE

STANLEY WAY

CHANNING AVENUE

DE SOTO DRIVE

DE SOTO DRIVE

DE SOTO DRIVE

GREER ROAD

CHANNING AVENUE

GREER ROAD

TULIP LANE

IVY LANE

SOUTHWOOD DRIVE

ISLAND DRIVE

KINGS LANE
HAM

ILTON AVENUE

DANA AVENUE

NEWELL ROAD

NEWELL ROAD

NEWELL ROAD
PITM

AN AVENUE

NEWELL ROAD

DANA AVENUE

MADISON WAY

ALESTER AVENUE

RHODES DRIVE

EDGEWOOD DRIVE

WEST BAYSHORE ROAD

RHODES DRIVE

HILBAR LANE

ALANNAH COURT

EAST BAYSHORE ROAD

CHANNING AVENUE

BAYSHORE FREEWAY

BAYSHORE FREEWAY
I V E

E D G E W O O D D R I V E
E
D
G
E
W
O
O
D

D
R
I
V
E
E
D
G
E
W
O
O
D

D
R
I
V
E
E
D
G
E
W
O
O
D

D
R
I
V
E
E
D
G
E
W
O
O
D

D
R
I
V
E
M
A
D
I
S
O
N

W
A
Y
H
AM

I L T O N
A
V
E
N
U
E
H A M

I L T O
N
A
V
E
N
U
E
H
A
M
I
L
T
O
N

A
V
E
N
U
E

JEFFERSON
DRIVE

PATRICIA

LANE
J
A
C
K
S
O
N
DRIVE
JACKSO
N
DRIVE

RHODES DRIVE

P H I L L I P
S

R
O
A
D
531
1862
508
1181
960
1491
780
1490
1494
1498
1480
1486
1476
1483
1487
1491
1495
1499
1420
1426
1432
1438
1444
1450
1458
1464
1470
1476
1482
1488
1494
1491
1471
1451
1431
1411
1400
1410
1430
809
1507
1418
1457
1462
14581453
1470
1466
965
1205
1245
1305
1315
1325
1335
1345
1355
1401
1431
1451
1471
1491
960
234
941
240
961 981
246
249
235
228
940920
189
187
179
181
169
191
185
183
798
753
975
1636
1630
1624
1616
1610
196
194
192
190
755
1607
1613
1621
1629
751
771
1403
1450
1470
1490
861
853
850
870
869 877
885
893
890
901
1240
1302
945
930
1470
910
1450
1430
1402
1350
1340
1330
1320
1310
897
1515
1525867
873
879
1535861
849
825
725
727
1515
1505
1516
777
721
715
170
174
180
1021
197
195
193
365
359
355
349
345
339
335
329
325
319
305
166
199
195
191
1748 350
1736
360
356
1724
1712
366
368
212
1701
1717
680
660640
1796
1772
1748
1595
765
25 201
205
14 222
216
210
204
976
930
1586
1578
1568
1560
1550
925
785
773
1517
711
1536
707
745
755
1170
801
851
1408
841
1516
1526
1514
1524
1532
901 921
1542
896
890
860 880
1475
1465
1435
1449
1443
1437
1431
1421
1417
1413
1407
746
742
738
734
1466
1470
1457
1463
14691474
1482
1486
1487
1481
14751478
1467
1471
1475
1479
1462
1463
1724
1700
1682
1698
1668
585
591
1733
1765
1795
586
1690
1696
215
211
207
203
1820
1796
1808 326
330
340
3361784
1776
1760 346
554
705
1601
1585
749
747
758
754
750
746
742
738
735
737
739
741
1684
1676
1670
1664
1656
1650
1644 188
186
184
182
728
742
770
784
745
1580
1590
1600
1610
714
700
743
705
756
300
298 290
194
190
855
709
1510
723
1537
757
763
761
759
781
1527
730
726
718
722
762
734
719
717
713
663
665
1518
1533
1529
1525
670
1540
1536
1530
1524
725
729
735
543
549
555
544
538
550
556
561
562
568
579
573
567
563
557
20 40
60 80
65 25
539
533
45 528
530
527
525
1646
531
519
577
583
558
562
566
570
555
557
1863
1855
1847
1841
559
561 1831
1823
563
1807
1815
587
581
651
681
1863
1853
1843
1829
1813
1797
1781
1765
1870
1860
1850
1844
1840
1836
1822
1814
1810
580
574
1832 312
320
3061844
1856
1868
1880
621
575
1566
1576
1586
1596
1602
1610
690
1601
1591
1581
1571
1565
1561
1555
1551
1547
1543
1539
1537
579
1607
554
570
561
562
569
1595
578
575
1575
14 570
580
1545
1537
1531
1558
1550
1542
1530
601
1526
1570
1560
1550
1544
733
731
555
547
532
538
544
550
558
571
566
572
582
1625
563
522
529
528
534
540
546
552
558
564
570
576
588
1689
1661
569559
553547
541
535
513
514
520
526
532
537
1428
1426
1420
1416
1412
1408
1400
1441
1437
1433
1429
1425
1421
1417
725
1410
729
714
645
1403
1405
1409
1413
1475
190
1462
1456
1457
1457
1455
1449
1451
1441
1461
1457
1453
1449
1458
1454
1450
1446
1444
1445
754
750
715
725
1432
1428
1424
1420
573
561
555
543
140
100
123
175
155
130
111
1423
1419
1415
1407
102
1444
1440
1436
1432
718
720
751
726
730
722
741737
733
1440
1480
1476
1472
1468
1464
1485
1481
1477
1473
1469
1465
1479
1485
535
1505
1511
1515
1523
10 8
6 1516
1500
1532
11 7
5 655
603
12 565
575
705
1491
1465
1475
1485
1491 1498
1480
1468
475
1509
1517
1525
1450
1451
1474
1490
1499
1445
555
546
528524
539
510
517
516
1726
1790
507
523
1565
1545
1535
1588
15 530
538
546
550
554
558
510
1568
1558
1548
1540
1575
1585
545
539
516
512
515
523
1690
511
1670
1629
1643
1657
1673
1687
1699
1721
1741
1701
1615
1605
1597
1555
1636
1606
1443
1441
1437
160
1460
1454
1452
1450
1448
1467
1459
1440
1444
590
165
587 593
125
150
190
200
170
1400
1408
185
1418
1411
1417
1425
1431
576
1496
14891484
1488
1492
580
543
558
541
544
539
530516
502
1872
537
535
533
1852
1842
531
1832
1822
529
527
1812
1843 1853
1863
1873
553
656
657
637623609
610
1919
1944
1953
1933611
1891
690
1892
708
714
720
726 732
1835
1938
1926
1914
1902
709
715 7
11 15
19 543
1930
1916
1917
1929
1941
693675
1880
1871
1879
551
642
550
546542
538
532
534
628614
600
547
549
586
545
572
587
571
559 1950
23 27
525
1802
1893
1883
1833
1823
1813
1803
1795
1761 515509
1453A
508A
1832A
1862A
1465A
1616A
531A
893A
1690A
1465A
1656A
This map is a product of
the City of Palo Alto GIS
This document is a graphic representation only of best available sources.

Legend
Assessment Parcel Palo Alto
Assessment Parcel Palo Alto
Assessment Parcel Outside Palo Alto
abc Road Centerline Small Text (TC)
Curb Face (RF)
Pavement Edge (RF)
Address Label Points (AP)
0' 132
Location Map
Hamilton Avenue
(Center Drive to Rhodes Drive)

CITY OF PALO ALTO
IN
C
O
R
P
O
R
A
T
E
D
CAL
IFO
RN
IA
P a l o A l t o
T h e C i t y o f
A P
R
I
L

1 6

1 8
94 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto vthai, 2023-10-11 11:31:58
Assessor Parcels (\\cc-maps\Encompass\Admin\Meta\View.mdb) Item 5
Attachment A - Location Map

Item 5: Staff Report
Pg.
6 Packet Pg. 196 of 541

Hamilton Avenue Capacity Upgrades Project (SD-25000) IFB 195264 IFB Post Date: 7/25/2025
IFB Due Date: 8/15/2025

BASE BID SUMMARY

QTY UNIT AVG
UNIT PRICE BID TOTAL UNIT PRICE BID TOTAL Δ UNIT PRICE BID TOTAL Δ UNIT PRICE BID TOTAL Δ UNIT PRICE BID TOTAL Δ UNIT PRICE 1 MOBILIZATION 1 LS $ 250,000.00 $ 250,0 00.00 $ 500,000.00 $ 500,000.00 100% $ 650,0 00.00 $ 650,000.00 160% $ 30,000.00 $ 30,000.00 -88% $ 650,000.00 $ 650,000.00 160 % $ 457,500.00 2 PUBLIC NOTIFICATION AND POSTING 1 LS $ 1 0,000.00 $ 10,000.00 $ 5,000.00 $ 5,000.00 -50% $ 2,400.00 $ 2,400 .00 -76% $ 1,000.00 $ 1,000.00 -90% $ 12,000.00 $ 12,000.00 20% $ 5,100.00 3 TRAFFIC CONTROL 1 LS $ 100,000.00 $ 10 0,000.00 $ 150,000.00 $ 150,000.00 50% $ 145 ,000.00 $ 145,000.00 45% $ 80,000.00 $ 80,000.00 -20% $ 640,000.00 $ 640,000.00 54 0% $ 253,750.00 4 SHEETING, SHORING AND BRACING 1 LS $ 150,0 00.00 $ 150,000.00 $ 300,000.00 $ 300,000 .00 100% $ 145,000.00 $ 145,000.00 -3% $ 150,0 00.00 $ 150,000.00 0% $ 540,000.00 $ 540 ,000.00 260% $ 283,750.00 5 STRIPING 1 LS $ 10,000.00 $ 10,00 0.00 $ 15,000.00 $ 15,000.00 50% $ 35 ,000.00 $ 35,000.00 250% $ 35,000.00 $ 35,000.00 250% $ 50,000.00 $ 50,000. 00 400% $ 33,750.00 6 UNFORSEEN UTILITY ALLOWANCE 1 LS $ 50,00 0.00 $ 50,000.00 $ 50,000.00 $ 50 ,000.00 0% $ 50,000.00 $ 50,000.00 0% $ 50,000.00 $ 50,000.00 0% $ 50,000.00 $ 50,000.00 0% $ 50,000.00 7 INERT SOLIDS RECYCLING WITH FABRIC 1 LS $ 1,000.00 $ 1,000.00 $ 5,000.00 $ 5,000.00 400% $ 1,000.00 $ 1,000.00 0% $ 60,000.00 $ 60,000.00 5900% $ 32,000.00 $ 32,000.00 3100% $ 24,500 .00 8 INSTALL 12-INCH HDPE PIPE 852 LF $ 468. 75 $ 399,375.00 $ 150.00 $ 127,800 .00 -68% $ 310.00 $ 264,120.00 -34% $ 400.00 $ 340,800.00 -15% $ 730.00 $ 621,960.00 56% $ 397.50 9 INSTALL 15-INCH HDPE PIPE 37 LF $ 336 .25 $ 12,441.25 $ 150.00 $ 5,550.00 -55% $ 670.00 $ 24,790.00 99% $ 550.00 $ 20,350.00 64% $ 3, 000.00 $ 111,000.00 792% $ 1,092.50 10 INSTALL 18-INCH HDPE PIPE 32 LF $ 60 0.00 $ 19,200.00 $ 500.00 $ 16,000.00 -17% $ 680.00 $ 21,760.00 13% $ 600.00 $ 19,200.00 0% $ 3,3 00.00 $ 105,600.00 450% $ 1,270.00 11 INSTALL 24-INCH HDPE PIPE 1,604 LF $ 655.0 0 $ 1,050,620.00 $ 600.00 $ 962,400.0 0 -8% $ 690.00 $ 1,106,760.00 5% $ 700.00 $ 1,122,800.00 7% $ 1,100.00 $ 1,764 ,400.00 68% $ 772.50 12 INSTALL 36-INCH HDPE PIPE 1,978 LF $ 790.7 8 $ 1,564,162.84 $ 200.00 $ 395,600.0 0 -75% $ 790.00 $ 1,562,620.00 0% $ 700.00 $ 1,384,600.00 -11% $ 1,200.00 $ 2, 373,600.00 52% $ 722.50 13 INSTALL 48-INCH HDPE PIPE 2,085 LF $ 926.2 5 $ 1,931,231.25 $ 1,200.00 $ 2,502,000.00 30% $ 1,020.00 $ 2,126,700.00 10% $ 1,400 .00 $ 2,919,000.00 51% $ 1,550.00 $ 3,231,7 50.00 67% $ 1,292.50 14 VIDEO INSPECTION OF NEW SD PIPELINE 6,588 LF $ 10.00 $ 65,880.00 $ 2. 00 $ 13,176.00 -80% $ 4.00 $ 26,352.00 -60% $ 5.00 $ 32, 940.00 -50% $ 10.00 $ 65,880.00 0% $ 5.25 15 CATCH BASIN 14 EA $ 6,875.00 $ 9 6,250.00 $ 20,000.00 $ 280,000.00 191% $ 6,000.00 $ 84,000.00 -13% $ 10,000.00 $ 140,000.00 45% $ 12,000.00 $ 168,000. 00 75% $ 12,000.00 16 INSTALL STANDARD SDMH - CITY STD DWG NO. 312 3 EA $ 13,750.00 $ 41,250.00 $ 15, 000.00 $ 45,000.00 9% $ 16,000.00 $ 48,000.00 16% $ 12,000.00 $ 36,000.00 -1 3% $ 75,000.00 $ 225,000.00 445% $ 29,50 0.00 17 INSTALL STANDARD 72-INCH SDMH - CITY STD DWG NO. 313 17 EA $ 13,750.00 $ 233,750.00 $ 15,000.00 $ 255,000.00 9% $ 20,000.00 $ 340,000.00 45% $ 15,000.00 $ 255,000.00 9% $ 76,000.00 $ 1,292,000.00 453% $ 31,500.00 18 INSTALL SHALLOW MANHOLE - CITY STD DWG NO. 314 1 EA $ 13,750.00 $ 13,750.00 $ 7,500.00 $ 7,500.00 -45% $ 15,000.00 $ 15,000.00 9% $ 15,000.00 $ 15,000. 00 9% $ 76,000.00 $ 76,000.00 453% $ 2 8,375.00 19 INSTALL NEW SDMH JUNCTION BOX 4 EA $ 27 ,500.00 $ 110,000.00 $ 100,000.00 $ 400,0 00.00 264% $ 120,000.00 $ 480,000.00 336% $ 12 0,000.00 $ 480,000.00 336% $ 76,000.00 $ 304,000.00 176% $ 104,000.00 20 INSTALL NEW SDMH JUNCTION BOX WITH CATCH BASIN 7 EA $ 27,500.00 $ 192,500.00 $ 50, 000.00 $ 350,000.00 82% $ 126,000.00 $ 882 ,000.00 358% $ 130,000.00 $ 910,000.00 373% $ 76,000.00 $ 532,000.00 176% $ 95,500.00 21 MODIFY EXISTING SDMH JUNCTION BOX 1 EA $ 22,500.00 $ 22,500.00 $ 20,000.00 $ 20,000.00 -11% $ 10,000.00 $ 10,000. 00 -56% $ 20,000.00 $ 20,000.00 -11% $ 6 0,000.00 $ 60,000.00 167% $ 27,500.00 22 INSTALL 48X48X12 WYE TEE 1 EA $ 6,500 .00 $ 6,500.00 $ 5,000.00 $ 5,000.00 -23% $ 5,000.00 $ 5,000.00 -23% $ 10,000.00 $ 10,000.00 54% $ 7,8 70.00 $ 7,870.00 21% $ 6,967.50 23 INSTALL 24-INCH FLAP GATE 1 EA $ 8,00 0.00 $ 8,000.00 $ 25,000.00 $ 2 5,000.00 213% $ 20,000.00 $ 20,000.00 150 % $ 30,000.00 $ 30,000.00 275% $ 16,000. 00 $ 16,000.00 100% $ 22,750.00 24 INSTALL 48-INCH CHECK MATE ULTRAFLEX INLINE CHECK VALVE 1 EA $ 10,000.00 $ 10,000.00 $ 60,000.00 $ 60,000.00 500% $ 48,000.00 $ 48,000.00 380% $ 60,000.00 $ 60,0 00.00 500% $ 72,000.00 $ 72,000.00 620% $ 60,000.00 25 TYPE A CURB AND GUTTER 128 LF $ 133.00 $ 17,024.00 $ 100.00 $ 12,8 00.00 -25% $ 95.00 $ 12,160.00 -2 9% $ 50.00 $ 6,400.00 -62% $ 110.00 $ 14,080.00 -17% $ 88 .75 26 TYPE B CURB AND GUTTER 1,816 LF $ 133.00 $ 241,528.00 $ 100.00 $ 181,600.00 -25% $ 95.00 $ 172,520.00 -29% $ 50.00 $ 90,800.00 -62% $ 76 .00 $ 138,016.00 -43% $ 80.25 27 SIDEWALK 724 SF $ 20.00 $ 1 4,480.00 $ 15.00 $ 10,860.00 -25 % $ 15.00 $ 10,860.00 -25% $ 37.00 $ 26,788.00 85% $ 38.0 0 $ 27,512.00 90% $ 26.25 28 DRIVEWAY 371 SF $ 35.35 $ 13 ,114.85 $ 15.00 $ 5,565.00 -58 % $ 25.00 $ 9,275.00 -29% $ 50.00 $ 18,550.00 41% $ 72. 00 $ 26,712.00 104% $ 40.50 29 DECORATIVE PAVEMENT 18 SF $ 30.00 $ 540.00 $ 40.00 $ 720.00 33% $ 65.00 $ 1,170 .00 117% $ 165.00 $ 2,970.00 450% $ 430.00 $ 7,740.00 1333% $ 175.00 30 CURB RAMP 2 EA $ 13,000.00 $ 26, 000.00 $ 5,000.00 $ 10,000.00 -62% $ 5,000.00 $ 10,000.00 -62% $ 10,000.00 $ 20,000.00 -23% $ 12,000.00 $ 24 ,000.00 -8% $ 8,000.00 31 REFLECTIVE RUBBER CURBS 1 LS $ 5,000. 00 $ 5,000.00 $ 5,000.00 $ 5,000.00 0% $ 8,000.00 $ 8,000.00 60% $ 10,000.00 $ 10,000.00 100% $ 10,000.0 0 $ 10,000.00 100% $ 8,250.00 32 STREET LIGHT RELOCATION 1 EA $ 1,000. 00 $ 1,000.00 $ 6,000.00 $ 6,000.00 500% $ 5,000.00 $ 5,000.00 4 00% $ 10,000.00 $ 10,000.00 900% $ 20,00 0.00 $ 20,000.00 1900% $ 10,250.00 33 TRIM STREET TREES 20 HRS $ 500.00 $ 10,000.00 $ 500.00 $ 10,000. 00 0% $ 350.00 $ 7,000.00 -30% $ 350.00 $ 7,000.00 -30% $ 400. 00 $ 8,000.00 -20% $ 400.00 34 REMOVE AND REPLACE SIGN POST WITH SIGNS 3 EA $ 1,000.00 $ 3,000.00 $ 1,65 0.00 $ 4,950.00 65% $ 800.00 $ 2,400.00 -20% $ 2,000.00 $ 6,000 .00 100% $ 720.00 $ 2,160.00 -28% $ 1,292.50 35 CONCRETE CAP 12 LF $ 100.00 $ 1,200.00 $ 200.00 $ 2,400.00 1 00% $ 1,600.00 $ 19,200.00 1500% $ 100.00 $ 1,200.00 0% $ 280.00 $ 3,360.00 180% $ 545.00 36 FLEXIBLE DELINEATORS 12 EA $ 50.0 0 $ 600.00 $ 100.00 $ 1,200.00 100% $ 80.00 $ 960 .00 60% $ 250.00 $ 3,000.00 400% $ 140.00 $ 1,680.00 180% $ 1 42.50 37 3-INCH AC OVER 8-INCH PCC OVERLAY 256 TON $ 250.00 $ 64,000.00 $ 375.00 $ 96,000.00 50% $ 309.00 $ 79, 104.00 24% $ 330.00 $ 84,480.00 32% $ 280.00 $ 71,680.00 12% $ 32 3.50

TOTALS SUMMARY
Over Engineer's Estimate: 1% 25% 26% 98%
Total Contract Amount $ 7,420,486.91 $ 7,526,333.10 $ 9,274 ,266.10 $ 9,337,765.80 $ 14,691,600.00 Total 10% Contingency $ 674,589.72 $ 684,212 .10 $ 843,115.10 $ 848,887.80 $ 1,335,600.00 Azul Works, Inc.

Total Base Bid $ 6,745,897.19 $ 6,842,121.00 $ 8,431 ,151.00 $ 8,488,878.00 $ 13,356,000.00

LOWEST BIDDER
Summary Engineer's Estimate Precision Engineering, Inc. Ra nger Pipelines Cratus, Inc.

Cratus, Inc. Azul Works, Inc.

LOWEST BIDDER
BID # DESCRIPTION Engineer's Estimate Precision Engineering, Inc. Ranger Pip elines 1 of 1
Item 5
Attachment B - Bid Summary

Item 5: Staff Report
Pg.
7 Packet Pg. 197 of 541

City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 6, 2025
Report #:2508-5123
TITLE
Approval of Professional Service Contract No. C26194618 with SCS Field Services in an Amount Not-to-Exceed $1,513,890, to Provide Landfill Gas Monitoring, Reporting, and Well Installation Services for the City’s Closed Landfill for a Period of Five Years, and Approval of a Budget Amendment in the Refuse Fund; CEQA Status – Exempt under CEQA Guidelines Section 15301

RECOMMENDATION
Staff recommends that the City Council:

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

C26194618 with SCS Field Services, to provide landfill gas collection system monitoring, reporting, and well installation services for a term of five years for a total not-to-exceed amount of $1,513,890, including $1,376,265 for basic services and $137,625 for additional services; and

2. Amend the Fiscal Year 2026 Budget Appropriations for the Refuse Fund (requires a 2/3 majority vote) by:
a) Decreasing the Refuse Fund balance by $179,175; and
b) Increasing the Landfill Operations appropriation for contract services by $179,175.

EXECUTIVE SUMMARY
The City closed and capped its landfill in 2015. The site was then improved to create Byxbee Park. State and federal regulations impose certain post-closure gas monitoring and reporting requirements. The contract with SCS Field Services will provide necessary routine and on-call monitoring, reporting, well installations, and other engineering services as needed.

BACKGROUND
The City owns and operates a closed, class III municipal solid waste disposal site (Landfill), located at 2380 Embarcadero Road in Palo Alto, California. The Landfill reached refuse capacity Item 6
Item 6 Staff Report

Item 6: Staff Report
Pg.
1 Packet Pg. 198 of 541

and ceased accepting waste in 2011, underwent final capping and regulatory closure in 2015, and is now known as Byxbee Park. The Landfill is currently in its “post-closure” maintenance and monitoring period, under regulatory oversight by CalRecycle, the Regional Water Quality Control Board, The Bay Area Air District (BAAD), and Santa Clara County Department of Environmental Health.

State and federal regulations require that landfill operators provide effective environmental control and monitoring systems to prevent the buildup and release of landfill gas from the buried waste. The Landfill’s gas extraction system consists of buried underground piping, 91 vertical extraction wells, and a flare/blower system that keeps the wellfield under vacuum.

Specific landfill gas control requirements are listed in BAAD’s Regulation 8, Rule 341, and include well-head monitoring, surface emissions monitoring, maintaining detailed operating records, continuous flow and temperature monitoring and recording at the flare/blower station, and source testing.

The environmental control systems monitoring and reporting tasks are required after the landfill closure for as long as the landfill continues producing methane and leachate (estimated for a minimum period of 30 years). The contract needed is to provide services for gas monitoring and reporting for the landfill gas control system for the Landfill as required by those regulations. The work requires specialized instruments, tools, equipment, and trained personnel to meet the stringent requirements of the State and local oversight agencies. The current contract is with SCS Field Services2 for a total not-to-exceed amount of $370,809 for 3 years, and it was amended twice, extending the term of the contract by a total of one year to October 10, 2025 to allow time for a complete formal solicitation process, and adding funds for a new total not-to-exceed amount of $417,012. The recent solicitation process was for a contract term of 5 years instead of 3 years to ensure stability and continuity of these required services.

ANALYSIS
The City requires the services of a qualified and experienced contracting firm to assist with regulatory compliance of the landfill’s gas collection system. Due to the nature and quantity of the work, outside resources are required. The new recommended five-year contract with SCS Field Services will continue to provide the City with monitoring and reporting services, ensuring landfill gas regulatory compliance, and includes the following tasks:
1 Bay Area Air Quality Management District’s (BAAQMD’s) Regulation 8, Rule 34:
https://www.baaqmd.gov/%7E/media/dotgov/files/rules/reg-8-rule-34-solid-waste-disposal- sites/documents/rg0834.pdf?rev=41e786097ed348e99bf53c14f101e055&sc_lang=en 2 City Council, October 25, 2021; Agenda Item #4; CMR #12080 https://portal.laserfiche.com/Portal/DocView.aspx?id=77&page=41&repo=r-704298fc&searchid=44d34e8e-3aae- 4c6d-a2d4-c2ef3c9802d2
Item 6
Item 6 Staff Report

Item 6: Staff Report
Pg.
2 Packet Pg. 199 of 541

1. Perform routine and on-call landfill gas collection and emission control system monitoring and reporting including well-head monitoring, surface emissions monitoring, component monitoring and leak testing, and flare/blower station monitoring;

2. Perform annual landfill flare stack emissions sampling, analyses, and reporting;

3. Compile and prepare required landfill gas reports, including Rule 8-34 Annual Report, Landfill Methane Rule Annual Report, and Environmental Protection Agency greenhouse gas reporting;

4. Provide well installations on an as-needed basis and as directed by City staff; and

5. Provide miscellaneous engineering support services on an as-needed basis and as directed by City staff. These services may include providing consultation on equipment specifications, landfill gas quality evaluations and modeling, or assistance with the regulatory liaison or unforeseen regulatory requests.

Solicitation Process:

A formal Request For Proposals (RFP) for the project was posted to the City’s eProcurement system on June 27, 2025. The City received three proposals on July 25, 2025, all of which were deemed responsive, as summarized in Table 1.

Table 1: Summary of Solicitation Process:

Proposal Description Landfill Gas Monitoring, Reporting, and Well Installation Services/RFP194618
Proposed length of project 5 years
Total days to respond to proposal 29
Pre-proposal meeting None
Pre-proposal meeting date N/A
Number of proposals received 3
Number of proposals considered responsive 3
Proposal price range $195,570-$275,253 per year
Table 2: Proposals Received:

Company Name Location (City, State) Proposal Amount per Year Proposal Amount over 5 years SCS Field Services Long Beach, CA $275,253 $1,376,265
APTIM Concord, CA $240,583 $1,202,915
Blue Flame Crew West Naperville, IL $195,570 $977,850
Item 6
Item 6 Staff Report

Item 6: Staff Report
Pg.
3 Packet Pg. 200 of 541

A team composed of three staff from the Public Works Department evaluated the proposals included in Table 2 based on the following criteria: quality and completeness of proposal, effectiveness of the proposed solution, experience, cost, financial stability, timely performance, prior record of performance for government agencies, ability to provide ongoing services, and compliance with applicable laws.

Following a comprehensive evaluation, SCS Field Services received the highest aggregate score and was selected due to the quality and completeness of their proposal, quality and effectiveness of their services, the experience of their staff, and prior record of performance with the City. Additionally, the key differentiator for SCS Field Services included established and robust software with a data tracking system and analysis of gas wells that allows monitoring of wells over time and assists with troubleshooting of potential compliance issues including with ease in the field with mobile devices. The online database tool retains history of each well, identifies anomalies that alert staff if additional maintenance or troubleshooting is needed at each specific well location, and includes charting and mapping features. This is a unique tool to SCS Field Services that the City currently uses and will continue to benefit from, and it enhances the City’s response time to prevent compliance issues with regulators. Additionally, SCS proposed an equally robust solution for remote monitoring and control of the gas flare which provides real time remote monitoring and an alert system to ping SCS and City staff when the flare is outside of its operating parameters so it can be addressed immediately, reducing flare down time and BAAD enforcement action and fines. These two features were absent or reflected insufficient content to demonstrate this caliber of monitoring tools in the other proposals.

The funding needs for the new contract are significantly higher at $179,175 more per year than the current contract; however, the last RFP was conducted in 2021, and costs have since increased considerably for labor, supplies, and general cost of living expenses. Other contributing factors to the increase include the addition of a new task in the RFP scope of work for well installation, and an increase in the number of hours the technicians may spend on-site monitoring gas wells and surface emissions. The rates for the new contract with SCS Field Services will be locked in and not change for the entirety of the 5-year contract term through October 2030.

The City is required per federal and state regulations to provide effective environmental control and monitoring systems to prevent the buildup and release of landfill gas and leachate from the buried waste, therefore, if this contract is not approved, the City will be unable to comply with these requirements beginning October 2025 and will be subject to permit violations and fines.

FISCAL/RESOURCE IMPACT
Partial funding for the first year of the contract recommended in this report is available in the Fiscal Year 2026 Adopted Operating Budget for the Refuse Fund. To fully fund the first year of the contract, staff recommends amending the Fiscal Year 2026 Adopted Operating Budget for Item 6
Item 6 Staff Report

Item 6: Staff Report
Pg.
4 Packet Pg. 201 of 541

the Refuse Fund by appropriating funding from fund balance in the amount of $179,175.

Appropriations for subsequent contract years will be determined through the annual budget development process and are subject to Council approval. Table 3 summarizes the contract costs.

Table 3: Summary of contract costs for the contract with SCS Field Services for Landfill Gas Monitoring, Reporting, and Well Installation Services:

Monitoring, Reporting, and Well Installation per Year $275,253 Additional Services per Year $27,525
Total Annual Cost $302,778
Total Contract Not-to-Exceed Amount for 5-year term $1,513,890

STAKEHOLDER ENGAGEMENT
This contract is for the continuation of existing Landfill monitoring and reporting services that are required by multiple regulations and engagement focused on the procurement process to engage potential proposers.

ENVIRONMENTAL REVIEW
Council action on this item is exempt from CEQA review under section 15301 of the CEQA Guidelines because the contract for landfill monitoring and reporting services involves the operation, repair, maintenance, permitting, or minor alteration to an existing facility with negligible or no expansion in use.

ATTACHMENTS
Attachment A: Partially Executed Contract with SCS Field Services, Contract #C26194618 APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
Item 6
Item 6 Staff Report

Item 6: Staff Report
Pg.
5 Packet Pg. 202 of 541

Professional Services
Rev. Oct 16,2024

CITY OF PALO ALTO CONTRACT NO. C26194618

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND STEARNS, CONRAD, AND SCHMIDT CONSULTING ENGINEERS, INC. dba SCS FIELD SERVICES

This Agreement for Professional Services (this “Agreement”) is entered into as of the 11th day of October, 2025 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and STEARNS, CONRAD, AND SCHMIDT CONSULTING ENGINEERS, INC. dba SCS FIELD SERVICES , a California corporation , located at 3900 Kilroy Airport Way, Suite 300, Long Beach, CA 90806 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS

A. CITY owns and operates a closed, class III municipal solid waste disposal site, which includes landfill gas and leachate collection systems (the “Project”) and desires to engage a consultant to provide monitoring, reporting, and well installation 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.

Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)

CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation).

CONSULTANT shall provide on -call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved 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”.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
6 Packet Pg. 203 of 541

Professional Services
Rev. Oct 16,2024

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 on-call 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 return 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 exec uted Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.

SECTION 2. TERM. The term of this Agreement shall be from the effective date of this agreement through October 12, 2030 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.

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.

Notwithstanding the foregoing, this is not a warranty or guarantee and in no event will CONSULTANT be responsible for damages due to delays beyond CONSULTANT’s reasonable control.

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 Million Three Hundred Seventy-Six Thousand Two Hundred Sixty-Five Dollars ($1,376,265). 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 One Hundred Thirty-Seven Thousand Six Hundred Twenty Five Dollars ($137,625) for the performance of Additional Services (as defined Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
7 Packet Pg. 204 of 541

Professional Services
Rev. Oct 16,2024

below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C , shall not exceed One Million Five Hundred Thirteen Thousand Eight Hundred Ninety Dollars ($1,513,890), 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 required 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 return 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 exec uted Task Order shall become part of this Agreement. The cumulative 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 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 1 3 (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 Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
8 Packet Pg. 205 of 541

Professional Services
Rev. Oct 16,2024

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 LAWS . 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 shall 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 recommendations 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 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 wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated 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 not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder wit hout 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 Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
9 Packet Pg. 206 of 541

Professional Services
Rev. Oct 16,2024

effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, succes sors, executors, administrators and assignees of the parties.

SECTION 12. SUBCONTRACTING.

Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.

Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcon tractors authorized by CITY to perform work on this Project are:

Best Environmental – Flare Source Testing
Sacramento Drilling – Drilling

CONSULTANT shall be responsible for directing the work of any subcon tractors and for any compensation due to subcon tractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcon tractors. CONSULTANT shall change or add subcon tractors only with the prior written approval of the City Manager or designee.

SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Melissa St. John as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day -to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.

CITY’s Project Manager is Sarah Fitzgerald, Public Works Department, Environmental Services Division, 3201 E Bayshore Road, Palo Alto, CA 94303, Telephone: (650) 496 -6980, Email:

[email protected]. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.

SECTION 14. OWNERSHIP OF MATERIALS. Upon payment to CONSULTANT pursuant to this Agreement, all work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement , in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use,. CONSULTANT agrees that all copyrights which arise from creation of the work Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
10 Packet Pg. 207 of 541

Professional Services
Rev. Oct 16,2024

product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee.

CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.

SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.

SECTION 16. INDEMNITY.

[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney ’s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction.

[Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, i ncluding death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney ’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.

16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
11 Packet Pg. 208 of 541

Professional Services
Rev. Oct 16,2024

16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.

SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or parti al exercise of any right or remedy will preclude any other or further exercise of any right or remedy.

SECTION 18. INSURANCE.

18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.

18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.

18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primar y coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.

18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.

SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
12 Packet Pg. 209 of 541

Professional Services
Rev. Oct 16,2024

19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.

19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).

19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.

19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).

SECTION 20. NOTICES.

All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:

To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303

With a copy to the Purchasing Manager

To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement.

CONSULTANT shall provide written notice to CITY of any change of address.

SECTION 21. CONFLICT OF INTEREST.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
13 Packet Pg. 210 of 541

Professional Services
Rev. Oct 16,2024

21.1. In executing this Agreement, CONSULTANT 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 the Services.

21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest.

CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Al to Municipal Code and the Government Code of the State of California, as amended from time to time . CONSULTANT agrees to notify CITY if any conflict arises.

21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.

SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.

22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section

2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.

22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.

SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department , hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, 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, C ONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to C ITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
14 Packet Pg. 211 of 541

Professional Services
Rev. Oct 16,2024

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-consumer material and printed with vegetable-based inks. (b) Goods purchased by C ONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.

SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE .

CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) h ours of work in a calendar week within the geographic boundaries of the City, CONSULTANT 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, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.

SECTION 25. 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 , as amended from time to time. 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 following 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.

SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.

26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j).

OR

26.1. TASK 4 – ON-CALL INSTALLATION OF WELL S is subject to prevailing wages and related requirements as a “public works” under California Labor Code Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
15 Packet Pg. 212 of 541

Professional Services
Rev. Oct 16,2024

Sections 1720 et seq. and related regulations. CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. , as amended from time to time .

Pursuant to Labor Code Section 1773, the CITY 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 contract for this Project from the State of California Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the CITY’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.), as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E , entitled “ DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for any contract for public works construction, alteration, demolition, repair or maintenance, including but not limited to the obligation s to register with , and furnish certified payroll records directly to, DIR.

SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS” . For purposes of this Section 27, 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. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects , certain claims procedures shall apply , as set forth in Exhibit F, entitled “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 Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.

OR

This Project is not a 9204 Public Works Project.

SECTION 28. CONFIDENTIAL INFORMATION.

28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose.

CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.

Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreeme nt and for no other purpose, Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
16 Packet Pg. 213 of 541

Professional Services
Rev. Oct 16,2024

provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.

28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.

28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.

28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal In formation, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.

28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. Notwithstanding anything to the contrary, CONSULTANT shall be entitled to maintain an archival copy of the Confidential Information pursuant to CONSULTANT’s IT network system back -up and disaster recovery processes, provided such information remains subject to the obligations under this Section.

28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.

SECTION 29. MISCELLANEOUS PROVISIONS.

29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.

29.2. 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 in the County of Santa Clara, Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
17 Packet Pg. 214 of 541

Professional Services
Rev. Oct 16,2024

State of California.

29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.

29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.

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

29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.

29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.

29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.

29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.

SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:

EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
EXHIBIT F: CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204

PUBLIC WORKS PROJECTS
EXHIBIT G: REQUIRED CITY BOND FORMS
Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
18 Packet Pg. 215 of 541

Professional Services
Rev. Oct 16,2024

THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
19 Packet Pg. 216 of 541

Professional Services
Rev. Oct 16,2024

CONTRACT No. C26194618

SIGNATURE PAGE

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

CITY OF PALO ALTO

____________________________
City Manager

APPROVED AS TO FORM:

__________________________
City Attorney or designee

STEARNS, CONRAD AND SCHMIDT,
CONSULTING ENGINEERS, INC. dba
SCS Field Services

Officer 1

By: ________________________________

Name: ______________________________

Title: _______________________________

Officer 2

By: ________________________________

Name: ______________________________

Title: _______________________________

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Vice President
Anton Svorinich
Curtis Jang
President
Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
20 Packet Pg. 217 of 541

Professional Services
Rev. Oct 16,2024

EXHIBIT A

SCOPE OF SERVICES

CONSULTANT shall provide the Services detailed in this Exh ibit A, entitled “SCOPE OF SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualific ations, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project.

CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications.

CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTAN T pursuant to this Scope of Services.

Background:

History and Phasing : The CITY owns and operates an unlined, class III municipal solid waste disposal site, located at 2380 Embarcadero Road in Palo Alto, California. The landfill reached refuse capacity and ceased accepting waste in 2011 and underwent final capping and regul atory closure in 2015. The landfill occupies approximately 126 acres of the 1800 -acre, CITY owned Byxbee Park and Baylands parcel. The landfill is divided into phases - Phase I, Phase IIA, Phase IIB, and Phase IIC, based on the timing of closure and conversion to parkland. Phase I comprises approximately 29 acres and was closed and developed into parkland in 1990. Phases IIA (23 acres), IIB (24 acres) and IIC (51 acres) were closed and converted to parkland in 1992, 2000 and 2015 respectively. Smaller areas of the landfill are occasionally closed off to park users on an as- needed basis for control system maintenance and settlement repairs.

The environmental control systems within the landfill consist of a vertical landfill gas extraction system and a retrofitted vertical leachate extraction system.

Landfill Gas System: The CITY’s landfill gas (LFG) collection system consists of 91 vertical extraction wells. Most of the gas wells are spaced approximately 200 feet apart, have been constructed with a 4 to 6 -inch diameter Schedule 40 PVC casings or high -density polyethylene (HDPE) casings placed within 24 -inch diameter boreholes and have an average depth of approximately 35 feet below the landfill surface. An HDPE piping network collects and transmits gas from the extraction wells to a blower -flare facility where it is com busted. The blower -flare facility is located on Palo Alto Regional Water Quality Control Plant (PARWQCP) property near the landfill northwest boundary. The pipe network is below grade throughout the landfill facility, buried within the final cover system. In the Phases that were capped with a clay layer (Phase I, IIA, IIB), the gas collection system pipes are buried above the clay cap within a thickened vegetative soil layer. In Phase IIC the pipes are buried within a 4 -ft thick layer of evapotranspirative cover material.

Currently, 6 leachate wells are connected to the gas collection system due to the detection of methane above regulatory limits inside and/or outside those wells. During the term of this Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
21 Packet Pg. 218 of 541

Professional Services
Rev. Oct 16,2024

Agreement, the CITY may elect to place an additional 18 leachate wells under vacuum and add them to the landfill gas collection system. Any monitoring required under the regulations of landfill gas wells would include those leachate wells that have been hooked up to the landfill gas collection system.

Leachate System: The CITY’s Leachate Collection and Removal System (LCRS) consists of 24 vertical extraction wells. These wells are typically constructed with 6 -inch diameter Schedule 80 PVC casings and strategically distributed throughout the landfill. Well spacing avera ges approximately 300 feet, with locations being selected based upon historic information and local leachate levels at the time of installation. Each well has a dedicated pneumatic pump, and compressed air is delivered to each well from a centrally locate d compressor via a network of welded HDPE piping. Leachate is collected from the wells and transported via the piping network to the CITY sanitary sewer main adjacent to the western boundary of the landfill.

Leachate elevations within the refuse mass are measured through a set of 17 vertical piezometers.

Condensate Collection: Gas condensate produced by the LFG collection system is collected in sumps and pumped into the facility’s LCRS via pneumatic submersible pumps. There are currently eleven (11) condensate sumps located in Phase I, Phase IIA, Phase IIB and Phase IIC, combined.

General Requirements:

This scope of services includes: 1) Performing routine and on -call LFG collection and emission control system monitoring and reporting; 2) Performing routine annual landfill flare stack emissions sampling, analyses and reporting; 3) Compiling and preparing various routine LFG reports; 4) On-call installation of wells as needed and as Permit allows; and 5) Providing on -call miscellaneous engineering and training support services.

CONSULTANT shall comply with all requirements of the Landfill’s Permit To Operate, Regulation 8, Rule 34 of the Bay Area Air District’s ( BAAD’s) regulations, including the regulations for Methane Emissions from Municipal Solid Waste Landfills, CCR Title 17, §95460- 95476, and the EPA Greenhouse Gas Rule (40 CFR Part 98, Subpart HH) as well as all pertinent plans and specifications relating to wo rk associated with maintenance and operation of the site’s environmental control systems.

CITY will provide all applicable permits for work performed in accordance with this Agreement.

The CITY has a landfill maintenance contractor that will perform repairs to the gas and leachate collection systems as needed. All routine operation or monitoring work shall take place either above ground or in buried shallow vaults (less than three feet in depth). CONSULTANT shall not be responsible for the overall quality of the gas with regard to trace components.

Expected personnel job titles and required experience levels to conduct the scope of services are listed below. All field personnel performing work listed in this Agreement shall have the following minimum qualifications:

Senior Technician (or equivalent)
• Five (5) years’ experience performing work on LCRS and LFG systems; • Ability to tune and optimize the vacuum on the LFG collection system without supervision or close oversight;
Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
22 Packet Pg. 219 of 541

Professional Services
Rev. Oct 16,2024

• Ability to detect LFG system and LCRS leaks and diagnose potential failures before they occur; and,
• General understanding of landfill regulations relating to the LCRS and LFG systems.

Technician (or equivalent)
• Two (2) years’ experience performing work on LCRS and LFG systems; • Ability to detect LFG system and LCRS leaks and diagnose potential failures before they occur; and,
• General understanding of landfill regulations relating to the LCRS and LFG systems.

CITY will authorize site access for CONSULTANT personnel, equipment, and materials for the completion of the work. CONSULTANT personnel shall be responsible for communication and coordination of onsite work by notifying appropriate CITY personnel at the landfill office prior to beginning work onsite and upon leaving the site.

Work To Be Performed

Task 1 – Routine and On -Call LFG System, Flare, Well -Head Monitoring, and Surface Monitoring and Reporting

Bid Item Definition For Task 1:

CONSULTANT shall provide a Senior Technician (or equivalent) with the experience and skill level defined above, billed at the hourly rates specified in the rate sheets submitted with the proposal, for the performance of routine and on -call LFG system monit oring, well -head monitoring and surface monitoring and reporting.

A) Senior Technician (or equivalent) is expected to spend up to 765 hours onsite per contract year (estimate of 216 hours routine services and up to 549 hours on -call). Field Time Estimate breakdown for Task 1 is as follows, actual hours per monitoring event may vary:
• Routine: Four events (onsite) per year for component leak monitoring (64 hours per year); • Routine: One event per year for surface emissions monitoring (SEM) (32 hours per year); • Routine: Weekly monitoring of the flare station (120 hours per year) • On-call: Well and component adjustment and monitoring (416 hours per year); • On-call: Miscellaneous additional onsite follow -up time for adjusting high -oxygen LFG and Leachate wells, troubleshooting equipment, and potential increased frequency of monitoring events (133 hours per year).

B) Tools/Materials/Equipment/Vehicles/Instrumentation to support Task 1

C) Management/Supervisor/Office Support Staff to support Task 1

D) Remote monitoring and control of landfill flare

General Scope of Services For Task 1
Generally, Task 1 routine and on-call services shall include the following:

a. (Routine) CONSULTANT shall provide computer or web database for CITY and Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
23 Packet Pg. 220 of 541

Professional Services
Rev. Oct 16,2024

CONSULTANT to use to record, store, and analyze all collected monitoring data from all routine and on-call tasks listed below. CONSULTANT shall compile data from all routine and on-call tasks listed below to be utilized by CONSULTANT in preparing the requi red annual reports (Task 3).

b. (Routine) CONSULTANT shall monitor and compile records to support the LFG component quarterly leak monitoring requirements of the BAAD’s Regulation 8, Rule 34, Section 501 and 503 and Title 17, §95460-95476.

c. (Routine) Annual measurement of methane and NMOC concentration on the landfill surface in accordance with site surface monitoring plan and Regulation 8, Rule 34, Section 501 and 506 and including the regulations for Surface Emissions Monitoring (SEM), CCR Title 17, §95469 listed below. Under the regulations, the site is currently required to perform these activities annually, however, if site conditions change, the SEM may increase to a quarterly frequency.
i. Annual instantaneous SEM at 100 -foot spacing with a 500 ppmv methane limit, including testing of cover penetrations, with corrective action/re-monitoring. ii. Annual integrated surface sampling with a limit of 25 ppmv methane.

d. (Routine) Weekly monitoring of the flare station, including download of the data logger.

Document and collect all data including all startup, shutdown and malfunction paperwork:

i. Date, time, and monitoring personnel.
ii. Meteorological condition (i.e., wind velocity, barometric pressure ambient temperature, weather conditions, etc.).
iii. Extraction blower operating inlet and outlet temperatures and pressures. iv. Methane gas, oxygen gas, carbon dioxide and balance gas concentrations at flare inlet as required by the BAAD.
v. Flare exit gas temperature (only when flare operational). vi. LFG flow rate to flare, or CITY incinerator.
vii. Flare combustion louver (only when flare is operational). viii. Flow control valve positions.
ix. Check pilot ignition system propane storage tank level. x. LFG control system blowers, flame arresters, flares, control panel, well fields, and condensate pump systems shall be observed for the following:
• Accessibility.
• Vandalism.
• Malfunctions.
• Leaks.
xi. Weekly record blower running hours;

e. (Routine) Once per quarter, hydrogen sulfide (H2S) shall be tested by CONSULTANT at the Flare Station inlet utilizing field Draeger test tubes; Inspect flame arrester; and, inspect burner heads.

f. (Routine) CONSULTANT shall establish a portable wind station or obtain measurements from the Palo Alto Airport to document compliance with meteorological conditions during Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
24 Packet Pg. 221 of 541

Professional Services
Rev. Oct 16,2024

the monitoring events.

g. (Routine) CONSULTANT shall provide one (1) copy of all field records generated during on-site service before leaving the site for the day.

h. (On-call) If needed by CITY, monthly monitoring of 91 LFG well -heads, 6 (up to 24) leachate well-heads (connected to the gas collection system), 11 condensate sumps, flare station and other valves, fittings and components.

i. (On-call) If needed by CITY, monthly measurement of methane and non-methane organic compounds (NMOC), oxygen concentration and pressure within each well -head (landfill gas wells and leachate wells which are connected to the gas collection system) in accordance with Regulation 8, Rule 34, and Title 17, Section 95469. If the well head does not meet the standards of Regulation 8, Rule 34, Section 305, and Title 17, §95469, then CONSULTANT shall document and make adjustments following Regulation 8, Rule 34, Section 414 scheduling requirements. It is anticipated that some follow -up visits shall be necessary by the Senior Technician for the purpose of monitoring and adjusting wells with high oxygen content. CONSULTANT shall make recommendations to CITY for furt her repairs if necessary. The monitoring requirements of the rule are located in §95469 and §95470.

j. (On-call) If needed by CITY, adjust/tune and optimize the vacuum on the individual wells in order to maximize methane extraction while minimizing oxygen intrusion into the landfill;

k. (Routine) CONSULTANT shall compile well-head monitoring information, including all follow-up monitoring results and submit monthly reports to CITY, within 21 days from the end of each month.

Task 2 – Routine Landfill Flare Stack Emission Sampling, Analytical Testing and Reporting

A) Annual Source Test
• CONSULTANT shall conduct the flare source test on the Flare located at the Regional Water Quality Control Plant in accordance with the Permit To Operate. Additionally, because the landfill is subject to the AB32 Landfill Methane Rule (see Task 3 of this Scope of Services), the flare must be tested annually to document compliance with Rule’s 99% methane destruction requirement, as specified in Section §95471 of the Rule.

CONSULTANT shall perform the annual flare testing while the Agreement is in place. In accordance with Item No. 15 of the Permit To Operate, CONSULTANT shall notify the Bay Area Air District ( BAAD) at least 14 days in advance of the test and shall submit to BAAD the compliance plan for the source test. CONSULTANT shall submit a report summarizing the results of the source test to CITY and BAAD within 45 days of completion of the test.

B) Annual Source Pre-Test
• In addition to the annual Source Test, CONSULTANT shall perform an annual source test “pre-test” one day prior to the official source test to identify compliance issues, troubleshoot, and tune the flare as necessary to ensure optimal performance and compliant Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
25 Packet Pg. 222 of 541

Professional Services
Rev. Oct 16,2024

source test results. The pre-test does not require a report or notification to BAAD.

Task 3 – Routine Report Preparation

Task 3 is outlined below and includes report preparation in compliance with BAAD Rule 8-34, AB32 Landfill Methane Rule, and EPA Greenhouse Gas Reporting Rule, as listed below.

CONSULTANT shall provide a draft of each report to CITY for review prior to submittal to the respective agency, and shall incorporate CITY’s comments into the final reports for submittal.

The final reports and certifications shall be signed by the responsible CITY official, where required.

A. Annual Rule 8-34 Report (One Report Annually)

CONSULTANT shall prepare the Rule 8 -34 annual reports required by the BAAD.

CONSULTANT shall collect the necessary data to complete the reports under Section 411 of Rule 8-34. The reports shall be developed in the format prescribed by the BAAD. The reporting period covers December 1st through November 30th. The report is due the last day of the month after the end of the reporting period. The annual reports shall contain the following information, as required:

1) Operating Records Required by Section 501:

a) All collection system downtime, including individual well shutdown times, length of time for shutdown, and the reason for the shutdown. All periods greater than five (5) days when the collection system was not operating.

b) All emission control system downtime, length of time for shutdown, and the reason for the shutdown. Description and duration of all periods when the control device was not operating for greater than one (1) hour and the length of time that the device was not operating.

c) Continuous temperature records (data logger) for all operating flares and any enclosed combustors with a listing of the dates/times when flare temperature went below permitted limits and any times when temperature gauge was off-line or not operational.

d) Monthly LFG flow meter readings.

e) Records of all quarterly LFG system component leak testing, including monitoring dates, leak concentration by volume if in excess of 1,000 parts per million, by volume (ppmv), location of leak, date of discovery, the actions taken by the City or its mainte nance CONSULTANT to repair the leak, date of repair, date of any required re -monitoring, and the re-monitored concentration in ppmv.

f) Continuous gas flow rate records (data logger information) with a listing of the dates/times when flow rate went above permitted limits and any times when the flow meter was off - line or not operational.

g) Records of all quarterly surface emissions monitoring, including monitoring dates, surface emission concentration by volume if in excess of 500 ppmv, location of exceedance, date Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
26 Packet Pg. 223 of 541

Professional Services
Rev. Oct 16,2024

of discovery, the actions taken by the CITY or its maintenance CONSULTANT to repair the exceedance, date of repair, date of any required re -monitoring, and the re -monitored concentration in ppmv.

h) For monthly wellhead monitoring (temperature, vacuum, and oxygen or nitrogen content), records of all monitoring dates and any excesses of the limits stated in Section 8 -34-305, Title 17, §95460 -§95476, and below (or approved alternative limits), including well identification number, the measured excess, the action taken by the CITY or its maintenance CONSULTANT to repair the excess, and the date of repair, date of any required re-monitoring, and the re-monitored value.

Gas wells
i) A minimum of monthly recording of gauge pressure at all wellheads (all wells must operate under negative pressure conditions).
ii) Monthly monitoring of oxygen or nitrogen concentrations at all wellheads (oxygen must not exceed 5 percent or nitrogen over 20 percent). iii) Monthly monitoring of temperatures at all wellheads (temperature shall not exceed 55C (131F)).

Leachate wells (connected to the LFG collection system) i) A minimum of monthly recording of gauge pressure, oxygen content, methane content, and temperature at each wellhead (the well(s) must be connected to vacuum if any pressure is detected);
iv) Monthly monitoring of oxygen concentrations at wellheads (oxygen must not exceed 15 percent by volume). If the oxygen concentration exceeds 15 percent by volume the vacuum to the leachate well may be turned off;
v) Monthly monitoring of temperatures at all wellheads (temperature shall not exceed 55C (131F)). If temperature exceeds 55 C (131F) the vacuum to the leachate well may be turned off;

2) Calibration information for monitoring equipment used for the various monitoring activities listed above (e.g., OVA, GEM-5000 unit, flow meter, temperature, etc.).

3) Description and duration of all periods when the gas stream was diverted from the control device.

4) The date of installation and location of all wells or system expansions as the result of monitoring exceedances during previous reporting period.

5) Data upon which the density of well and equipment sizing were based.

6) Gas generation rate estimates.

7) Provisions for increasing LFG extraction capacity as gas generation increases.

8) The provisions for the control of LFG migration.

B. AB32 – Landfill Methane Rule Annual Reporting (One Report Annually) Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
27 Packet Pg. 224 of 541

Professional Services
Rev. Oct 16,2024

CITY is subject to the AB32 Landfill Methane Rule (Title 17 California Code of Regulations (CCR), Chapter 10, Article 4, Sub -article 6, §95462 through §95476), which has an annual reporting requirement. The required annual report under this Rule must be s ubmitted by March 15 of each year for the previous calendar year data.

Annual Reports must include the following information, as specified in §95470 of the Rule:

• General site information
• Total volume of LFG collected (reported in standard cubic feet (scf)), • Average composition of LFG collected over the reporting period (reported in percent methane and percent carbon dioxide by volume),
• Gas control device type, installation, rating, fuel type, and total LFG combusted in each control device,
• Date LFG collection system installed
• Percent methane destruction efficiency
• Volume and composition of gas shipped off-site
• Type and amount of supplemental fuels burned with the LFG. • Recent topographic map, and
• All required monitoring data.

CONSULTANT shall compile the required data into a report in a format suitable for submittal to the California Air Resources Board (CARB) Executive Officer. CONSULTANT shall provide a draft of the report to CITY for review. CONSULTANT shall incorporate CI TY comments into the final report and submit to CARB on behalf of the CITY.

C. EPA – Greenhouse Gas Annual Reporting (One Report Annually Submitted Online)

CITY is required under the EPA GHG reporting rule, 40 CFR Part 98, Subpart HH, to submit a report annually. CONSULTANT shall compile the required data and input into an appropriate electronic format in accordance with EPA GHG rule specifications for upload to the EPA’s online reporting tool (e -GRRT). CONSULTANT shall submit draft data file to CITY for review.

CONSULTANT shall incorporate CITY comments into the final report and submit to EPA via e - GRRT. CONSULTANT will be added to the website as CITY agent and shall manage the website reports on behalf of CITY.

The data to be reported is for calendar year 2025, 2026, 2027, 2028, and 2029, and the reporting deadline is March 30 of the following year. As specified in the EPA Rule, the following information is required:

• Landfill Operations (Open/closed/Year)
• Waste Disposal Calculations
• Waste Composition (If Available)
• Modeling Parameters Used
• Methane Data
• Landfill Area, Cover Types by Area, and Oxidation Fractions Used • LFG Modeling Results
Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
28 Packet Pg. 225 of 541

Professional Services
Rev. Oct 16,2024

• Emissions from stationary combustion units.
• Flow of collected LFG
• Methane content of LFG
• Temperature and pressure data for LFG
• Description of control device(s) both on- and off-site • Control device operating hours
• Description of LFG collection system, landfill areas and waste depths • Computed methane volume captured
• Computed methane generated (corrected for oxidation using EPA model) • Computed methane generated (corrected for oxidation using LFG recovery flow and collection efficiency)
• Methane Emissions, Method 1 (Modeling)
• Methane Emissions, Method 2 (Gas Captured and Estimated Collection Efficiency)

Task 4 – On-Call Installation of Wells

As requested by CITY, CONSULTANT shall coordinate and perform all aspects of new or replacement LFG and leachate well installations. This could include, but is not limited to:

• Engineering of well;
• Preparation of drawings;
• Coordination of subcontractors;
• Drilling and completion of well;
• Providing well installation oversight and boring installation logs; • Final as-builts; and
• Well installation reports.

Where applicable, CONSULTANT shall pay prevailing wage rates for laborer(s) and technician(s) for work associated with well installation projects.

Before commencing a well installation, CONSULTANT must provide a payment bond and a performance bond, each in the penal sum of not less than 100% of the maximum price for each installation, and each executed by CONSULTANT and its surety using the bond forms attached hereto as Exhibit G. Each bond must be issued and executed by a surety admitted in California.

Prior to the commencement of any well drilling project, CONSULTANT shall submit a Site - Specific Health and Safety Plan (SSHASP) two weeks prior to the start of work for review and approval by the City. The SSHASP shall include landfill specific considerations.

Task 5 – On-Call Engineering and Training Services

On occasion, CITY may ask CONSULTANT to evaluate the performance and design of the gas system using the services of a qualified LFG engineer. CONSULTANT shall provide engineering services for duties including, but not limited to, possible LFG and LCRS syst em design, permitting, and equipment change-out. Additionally, CITY may ask CONSULTANT to provide landfill gas technician training to staff. Work on these services requires written approval from CITY prior to CONSULTANT working on or billing to these subt asks. Typically, Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
29 Packet Pg. 226 of 541

Professional Services
Rev. Oct 16,2024

CONSULTANT shall develop and submit a written cost estimate prior to work on these subtasks.

End Scope of services

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
30 Packet Pg. 227 of 541

Professional Services
Rev. Oct 16,2024

EXHIBIT A-1

PROFESSIONAL SERVICES TASK ORDER

CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO.

OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:

2. CONSULTANT NAME:

3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
▪ SERVICES AND DELIVERABLES TO BE PROVIDED
▪ SCHEDULE OF PERFORMANCE
▪ MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) ▪ REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
31 Packet Pg. 228 of 541

Professional Services
Rev. Oct 16,2024

EXHIBIT B

SCHEDULE OF PERFORMANCE

CONSULTANT shall perform the Services so as to complete each milestone by the dates and/or with the frequencies specified on the Schedule. CONSULTANT shall submit a Monitoring and Reporting Schedule for approval by CITY within 2 weeks issuance of the notice to proceed (“NTP”). The Schedule shall include date -specific reporting milestones and specify the set day - of-the-week and frequencies of regularly -scheduled monitoring events as described in the scope of work and prescribed in the current Permit to Operate and Rule 8-34 regulations.

Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)

The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
32 Packet Pg. 229 of 541

Professional Services
Rev. Oct 16,2024

EXHIBIT C

COMPENSATION

CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below.

CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below , provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.

CONSULTANT agrees to complete all Services , any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.

BUDGET SCHEDULE

ANNUAL TASKS NOT TO EXCEED AMOUNT
Task 1
(Routine and On-Call Landfill Gas System, Flare, Well- Head Monitoring, and Surface Monitoring and Reporting)
$192,390
Task 2
(Routine Landfill Flare Stack Emission Sampling,
Analytical Testing and Reporting)
$22,613
Task 3
(Routine Report Preparation)
$12,750
Task 4
(On Call Well Installation Services)
$20,000
Task 5
(On Call Other Engineering Services )
$20,000
Annual Sub-total for Services $267,753
Annual Reimbursable Expenses (if any) $7,500
Annual Total for Services and Reimbursable Expenses $275,253 Additional Services (if any, per Section 4) $27,525
ANNUAL Maximum Total Compensation $302,778
5-YEAR Maximum Total Compensation $1,513,890

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
33 Packet Pg. 230 of 541

Professional Services
Rev. Oct 16,2024

REIMBURSABLE EXPENSES

CONSULTANT’S ordinary business expenses , such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.

Reimbursable expenses, if any are specified as reimbursable under this section , will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: unanticipated parts needed on an emergency basis to prevent flare or gas collection system downtime or non-compliance up to the not-to-exceed amount of:
$7,500 per contract year for a total not-to-exceed contract amount of $37,500..

A. Travel outside the San Francisco Bay Area, including transportation and meals , if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.

B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost.

All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
34 Packet Pg. 231 of 541

Professional Services
Rev. Oct 16,2024

EXHIBIT C-1

SCHEDULE OF RATES

CONSULTANT’s schedule of rates is as follows:

Prevailing wage rates for work associated with Task 4 will be provided at time of on-call work request.

OM&M LABOR FEE SCHEDULE:

Technical Field Personnel Rate ($)/Hour
Laborer .....................................................................................................................................102 Field Technician I ....................................................................................................................120 Fusion Technician ....................................................................................................................125 Equipment Operator .................................................................................................................127 Field Technician II ...................................................................................................................130 Controls Technician .................................................................................................................134 Plant Operator/LTP ..................................................................................................................137 GIS Technician (RMC) ............................................................................................................138 Associate Developer ................................................................................................................141 Senior Field Technician ...........................................................................................................143 Mechanic ..................................................................................................................................145 OM&M Project Foreman .........................................................................................................145 Support Manager ......................................................................................................................157 OM&M Superintendent ...........................................................................................................165 Fleet Administrator ..................................................................................................................171 Drone Pilot (RMC) ..................................................................................................................182 Controls Specialist (RMC) .......................................................................................................206 Senior OM&M Superintendent ................................................................................................216 Systems Integrator (RMC) .......................................................................................................262

Management/Support Personnel Rate ($)/Hour
Secretarial .................................................................................................................................102 Project Administrator ...............................................................................................................113 H&S Data Analyst/Support.......................................................................................................115 Associate Professional ..............................................................................................................119 Field Data Analyst ....................................................................................................................121 RMC Support Technician .........................................................................................................122 Designer/Drafter .......................................................................................................................136 Senior Project Administrator ....................................................................................................141 Administrative Coordinator ......................................................................................................147 Senior Field Data Analyst .........................................................................................................169 Field Project Coordinator ..........................................................................................................175 Project Professional ...................................................................................................................176 Project Estimator (RMC) ...........................................................................................................186 Project Coordinator/Accountant .................................................................................................186 Regional H&S Specialist ...........................................................................................................196 Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
35 Packet Pg. 232 of 541

Professional Services
Rev. Oct 16,2024

eTools Support Manager ..........................................................................................................196 Senior H&S Specialist...............................................................................................................225 H&S Manager ...........................................................................................................................260 Field Project Manager ...............................................................................................................271 Regional Quality Advisor .........................................................................................................271 Project Manager ........................................................................................................................281 GIS Developer (RMC) ..............................................................................................................287 Senior Project Professional .......................................................................................................293 Senior Project Manager.............................................................................................................310 Quality Manager .......................................................................................................................338 Regional Manager/Project Director ..........................................................................................349 Director of Technology (RMC) ................................................................................................362 RMC Business Manager (RMC) ...............................................................................................365 Senior Project Advisor ..............................................................................................................372 National RMC/eTools Technology Director .............................................................................396

1. On short-term or one-time assignments, services that require less than eight (8) hours, but more than four (4) hours, will be billed at eight (8) hours. A minimum of four (4) hours will be billed for any service requested which is not conducted in conjunction with an ongoing, long term project (including call-outs after normal work hours), and will be charged portal-to-portal from SCS Field Services offices.

2. The above rates include salary, overhead, and profit. Other direct charges, such as subcontractors, construction equipment, materials, air travel, freight, auto rental, permits, fees, taxes, tolls, and other costs incurred for the project, will be billed at cost plus 10 percent.

The cost of equipment owned by SCS Field Services will not be subject to administrative markup. Automobile mileage cost is $0.71 per mile and is subject to change per Federal IRS laws. Trucks will be charged at $30.00/hour. (No administrative mark-up will be applied to charges for company-owned vehicles.)

4. For operation, construction, and/or repair work performed on weekends and/or nights (if work exceeds 8 hours in a day), the above rates will be marked up 50 percent. For work performed on company-recognized holidays or beyond 12 hours in a day, the above rates will be marked up 100 percent.

5. These rates are based on non-union, non-prevailing wage scales.

6. For long-term on-site project assignments, rates may be discounted on an individually negotiated basis. Long-term on-site personnel are permitted to return home every four (4) weeks.

Travel expenses shall be invoiced to the client at cost plus 10 percent.

7. For projects that require crews to mobilize from a local office and stay in a hotel local to a project site to efficiently perform client-requested work, a $65 per day per person per diem cost will be charged to the project as well as a nightly hotel cost. Hotel costs typically range from $125 to $225 per night. SCS Field Services will make every effort to find the most cost efficient hotels. In some high-expense locations, hotel rates may be above $225 per night. Hotel and per diem expenses will be marked up 10 percent.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
36 Packet Pg. 233 of 541

Professional Services
Rev. Oct 16,2024

ENGINEERING LABOR FEE SCHEDULE:
($)/Hour
Clerical ....................................................................................................................................... 101 Administrative/Secretarial ......................................................................................................... 108 Technician .................................................................................................................................. 125 CAD Drafter ............................................................................................................................... 133 Senior Engineering Technician .................................................................................................. 138 Technical Associate I ................................................................................................................. 143 Technical Associate II ................................................................................................................ 149 Assistant Office Services Manager/Project Administrator ........................................................ 149 Office Services Manager/Senior Project Administrator ............................................................ 154 Associate Staff Professional I .................................................................................................... 159 Project Analyst ........................................................................................................................... 160 Associate Staff Professional II ................................................................................................... 167 CAD Designer I.......................................................................................................................... 170 Staff Professional I ..................................................................................................................... 162 Staff Professional II ................................................................................................................... 178 Senior Office Services Manager ................................................................................................ 180 CAD Designer II......................................................................................................................... 186 Staff Professional III .................................................................................................................. 186 Project Professional I ................................................................................................................. 194 Project Professional II ................................................................................................................ 202 Project Professional III .............................................................................................................. 210 Senior Project Professional I ...................................................................................................... 220 Senior Project Professional II .................................................................................................... 233 Senior Project Professional III ................................................................................................... 244 Industrial Hygienist/Safety Professional .................................................................................... 249 Project Manager I ....................................................................................................................... 257 Project Manager II ..................................................................................................................... 265 Senior Certified Industrial Hygienist/Safety Professional ......................................................... 271 Project Manager III .................................................................................................................... 282 Project Manager IV .................................................................................................................... 295 Senior Project/Technical Manager I .......................................................................................... 308 Senior Project/Technical Manager II ......................................................................................... 315 Senior Project Advisor…............................................................................................................ 317 Project Director I ........................................................................................................................ 329 Project Director II ...................................................................................................................... 339 Project Director III ..................................................................................................................... 355 Principals and Executives ............................................................................................... See Note 3

General Terms

1. Costs for outside consultants and subcontractors, equipment/supplies, and for job-related employee travel and subsistence, are billed at actual cost plus a 10 percent administrative fee.

2. Charges for SCS field equipment and instruments will be in accordance with SCS’s Field Equipment Rental Rates Schedule in effect at the time the work is performed. Company trucks Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
37 Packet Pg. 234 of 541

Professional Services
Rev. Oct 16,2024

are charged at $115 for up to a half day (4 hours) of use, and $170 for up to a full day (company cars at $90/$130). These charges incorporate an allowance of 100 miles per job per day; a per mile surcharge is applied for additional miles based on the applicable federal rate. Vehicle charges for long-term and/or high-mileage projects may be negotiated on a case-by-case basis.

3. Hourly rates for Principals and Executives can be on an individually negotiated basis. In the absence of a project-specific agreement, these rates are $377/hour for Principals, $403 for Vice Presidents, and $461/hour for Senior Vice Presidents and Senior Executives.

OM&M FEE SCHEDULE FOR EQUIPMENT AND ANALYSIS:

GEM 2000 NAV/5000 NAV/Envision Gas Analyzer(s):
• Daily Rate ..................................................................................................................... 248/day • Weekly Rate ........................................................................................................... 1,234/week • Monthly Rate ........................................................................................................ 3,705/month

Gazoscan Kit
• Daily Rate ..................................................................................................................... 253/day • Weekly Rate ........................................................................................................... 1,247/week • Monthly Rate ........................................................................................................ 3,742/month

GEM 5000 w/H2S/CO
• Daily Rate ..................................................................................................................... 270/day • Weekly Rate ........................................................................................................... 1,335/week • Monthly Rate ........................................................................................................ 4,004/month

SEM 500/TVA 2020/TDL 500/ Site FID Emissions Monitor/Irwin Inficon SEM:
• Daily Rate ..................................................................................................................... 270/day • Weekly Rate ........................................................................................................... 1,335/week • Monthly Rate ........................................................................................................ 4,004/month

SEM Methane Detection Robot Dog System ......................................................................900/day Optical Gas Imaging (OGI) Camera…………….................................................................855/day Drone Methane Detection System .......................................................................................700/day Drone Photogrammetry/Videography Unit...........................................................................400/day FLIR Si2 Acoustic Leak Detector……………………….………………..……………….250/day Q Rae Gas Analyzer O2/H2S/CO/Combustibles .................................................................. 66/day Micro Max Gas Analyzer O2/H2S/CO/COI Combustibles .................................................. 66/day 4 Gas Meter ........................................................................................................................... 66/day Magnehelic Pressure Meter ................................................................................................... 15/day Digital Readout Thermocouple ............................................................................................. 33/day Dewatering Pump (Trash Pump) ........................................................................................... 61/day Dräger Detector Tubes/Pump .............................................................................................. 28/each

MiniRae 2000/3000 PID:
• Daily Rate ..................................................................................................................... 201/day • Weekly Rate ........................................................................................................... 1,003/week • Monthly Rate ........................................................................................................ 3,012/month Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
38 Packet Pg. 235 of 541

Professional Services
Rev. Oct 16,2024

RKI Eagle II:
• Daily Rate ..................................................................................................................... 201/day • Weekly Rate ........................................................................................................... 1,003/week • Monthly Rate ........................................................................................................ 3,012/month

Air Sampling Station:
• Daily Rate ........................................................................................................................ 66/day • Weekly Rate ............................................................................................................... 328/week • Monthly Rate ........................................................................................................ 1,012/month

Weather Station:
• Daily Rate .......................................................................................................................66/day • Weekly Rate ............................................................................................................. 328/week • Monthly Rate ........................................................................................................1,012/month

Pipe Laser:
• Daily Rate ........................................................................................................................ 66/day • Weekly Rate ............................................................................................................... 328/week • Monthly Rate ........................................................................................................ 1,012/month

PAS 3000 Personal Air Sampling Pump .............................................................................. 35/day Tedlar Bag (1-Liter) ............................................................................................................ 30/each Sample Flow Controller/Tier II Gauge ................................................................................. 57/day Non-Contaminating Air Sampling Pump .............................................................................. 36/day Interface Probe ...................................................................................................................... 66/day

Handheld GPS:
• Daily Rate ........................................................................................................................ 35/day • Weekly Rate ............................................................................................................... 169/week • Monthly Rate ........................................................................................................... 506/month

Submersible Pump:
• Daily Rate ........................................................................................................................ 66/day • Weekly Rate ............................................................................................................... 328/week • Monthly Rate ........................................................................................................ 1,012/month

Water Level Indicator:
• Daily Rate ........................................................................................................................ 28/day • Weekly Rate ............................................................................................................... 132/week • Monthly Rate ........................................................................................................... 411/month

Water Level Meter w/Temperature:
• Daily Rate ........................................................................................................................ 61/day • Weekly Rate ............................................................................................................... 299/week • Monthly Rate ........................................................................................................... 900/month

100-Foot Temperature Probe:

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
39 Packet Pg. 236 of 541

Professional Services
Rev. Oct 16,2024

• Daily Rate ........................................................................................................................ 22/day • Weekly Rate ............................................................................................................... 108/week • Monthly Rate ........................................................................................................... 319/month

Teflon Well Bailer ............................................................................................................... 35/each Vacuum Box/Carbon Canister and Blower ......................................................................... 201/day Tool Truck ........................................................................................................................... 30/hour

No. 14 P.E. Fusion Machine (1”-4”)
• Daily Rate ..................................................................................................................... 145/day • Weekly Rate ............................................................................................................... 725/week • Monthly Rate ........................................................................................................ 2,208/month

No. 26 P.E. Fusion Machine (2”-6”):
• Daily Rate ..................................................................................................................... 200/day • Weekly Rate ........................................................................................................... 1,000/week • Monthly Rate ........................................................................................................ 2,713/month

No. 28 P.E. Fusion Machine (2”-8”)
• Daily Rate ..................................................................................................................... 255/day • Weekly Rate ........................................................................................................... 1,275/week • Monthly Rate ........................................................................................................ 3,611/month

No. 412 P.E. Fusion Machine (4”-12”):
• Daily Rate ..................................................................................................................... 500/day • Weekly Rate ........................................................................................................... 2,200/week • Monthly Rate ........................................................................................................ 6,600/month

No. 618 P.E. Fusion Machine (6”-18”):
• Daily Rate ..................................................................................................................... 740/day • Weekly Rate ........................................................................................................... 3,400/week • Monthly Rate ........................................................................................................ 9,400/month

Trackstar 500 Fusion Machine
• Daily Rate ..................................................................................................................... 842/day • Weekly Rate ........................................................................................................... 4,210/week • Monthly Rate ........................................................................................................ 9,200/month

Sidewinder Fusion Machine
• Daily Rate ..................................................................................................................... 250/day • Weekly Rate ........................................................................................................... 1,250/week • Monthly Rate ........................................................................................................ 3,500/month

Electrofusion Processor Machine:
• Daily Rate ..................................................................................................................... 245/day • Weekly Rate ........................................................................................................... 1,225/week • Monthly Rate ........................................................................................................ 3,430/month

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
40 Packet Pg. 237 of 541

Professional Services
Rev. Oct 16,2024

Leister Extrusion Welding Gun .......................................................................................... 211/day Leister Extrusion Welding Gun (large) ............................................................................... 590/day Air Compressor ..................................................................................................................... 81/day Arc Welder ............................................................................................................................ 99/day Generator (3,500-Watt) ......................................................................................................... 81/day Generator (5,000-Watt) ......................................................................................................... 99/day Generator (6,000-Watt) ....................................................................................................... 107/day Generator (8,000-Watt) ....................................................................................................... 112/day

Isolation Pinch-off Tool (1”-4”):
• Daily Rate ........................................................................................................................ 53/day • Weekly Rate ............................................................................................................... 268/week • Monthly Rate ........................................................................................................... 805/month

Isolation Pinch-off Tool (2”-6”):
• Daily Rate ..................................................................................................................... 190/day • Weekly Rate ............................................................................................................... 760/week • Monthly Rate ........................................................................................................ 2,280/month

Isolation Pinch-off Tool (2”-8”):
• Daily Rate ..................................................................................................................... 200/day • Weekly Rate ............................................................................................................... 800/week • Monthly Rate ........................................................................................................ 2,400/month

Isolation Pinch-off Tool (6”-8”):
• Daily Rate ..................................................................................................................... 500/day • Weekly Rate ........................................................................................................... 2,000/week • Monthly Rate ........................................................................................................ 6,000/month

Isolation Pinch-off Tool (8”-12”):
• Daily Rate .................................................................................................................. 1,500/day • Weekly Rate ........................................................................................................... 6,000/week • Monthly Rate ...................................................................................................... 18,000/month

4-Wheeler with 44” Mow Deck:
• Daily Rate ..................................................................................................................... 134/day • Weekly Rate ............................................................................................................... 669/week • Monthly Rate ........................................................................................................ 2,002/month

Riding Mower:
• Daily Rate ..................................................................................................................... 235/day • Weekly Rate ........................................................................................................... 1,173/week • Monthly Rate ........................................................................................................ 3,518/month

Chain Saw:
• Daily Rate ........................................................................................................................ 17/day • Weekly Rate ................................................................................................................. 77/week • Monthly Rate ........................................................................................................... 224/month Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
41 Packet Pg. 238 of 541

Professional Services
Rev. Oct 16,2024

Horiba Water Quality Meter:
• Daily Rate ........................................................................................................................ 66/day • Weekly Rate ............................................................................................................... 328/week • Monthly Rate ........................................................................................................ 1,012/month

Hydrogen Sulfide Meter:
• Daily Rate ..................................................................................................................... 254/day • Weekly Rate ........................................................................................................... 1,269/week • Monthly Rate ........................................................................................................ 3,817/month

Infrared Thermometer:
• Daily Rate ........................................................................................................................ 17/day • Weekly Rate ................................................................................................................. 77/week • Monthly Rate ........................................................................................................... 224/month

Micropurge Flow Cell (Groundwater):
• Daily Rate ..................................................................................................................... 134/day • Weekly Rate ............................................................................................................... 669/week • Monthly Rate ........................................................................................................ 2,002/month

Oiless Compressor and Control Box (Groundwater):
• Daily Rate ........................................................................................................................ 99/day • Weekly Rate ............................................................................................................... 499/week • Monthly Rate ........................................................................................................ 1,497/month

Earth/Resistance Tester:
• Daily Rate ..................................................................................................................... 134/day • Weekly Rate ............................................................................................................... 669/week • Monthly Rate ........................................................................................................ 2,002/month

Pitot Tube and Gauges:
• Daily Rate ........................................................................................................................ 17/day • Weekly Rate ................................................................................................................. 53/week • Monthly Rate ........................................................................................................... 224/month

Pressure Washer:
• Daily Rate ........................................................................................................................ 66/day • Weekly Rate ............................................................................................................... 328/week • Monthly Rate ........................................................................................................ 1,010/month

Turbidity Meter/Conductivity Meter:
• Daily Rate ........................................................................................................................ 35/day • Weekly Rate ............................................................................................................... 169/week • Monthly Rate ........................................................................................................... 506/month

Vacuum Air Pump:
• Daily Rate ..................................................................................................................... 134/day Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
42 Packet Pg. 239 of 541

Professional Services
Rev. Oct 16,2024

• Weekly Rate ............................................................................................................... 669/week • Monthly Rate ........................................................................................................ 2,002/month

Downhole Video Camera System ....................................................................................... 270/day

Weed Trimmer:
• Daily Rate ........................................................................................................................ 35/day • Weekly Rate ............................................................................................................... 169/week • Monthly Rate ........................................................................................................... 506/month

Safety Equipment:
• Tyvek Suit (each) ......................................................................................................... 20/each • Polyethylene suit (each) .............................................................................................. 25/each • PVC Gloves (per pair) ................................................................................................... 20/each • Rubber booties (per pair) ............................................................................................ 20/each • Organic Vapor Cartridges (per pair) ............................................................................ 25/each • Organic Vapor/Acid Cartridges (per pair) ................................................................... 32/each • Cartridges pre-filters (per pair) ................................................................................... 20/each • Half face respirator (each) ............................................................................................. 28/day • Full face respirator (each) ............................................................................................. 35/day • Ventilator/manhole blowers .......................................................................................... 35/day • Parachute harness ......................................................................................................... 17/day • Tripod:
- Daily Rate ............................................................................................................. 99/day - Weekly Rate....................................................................................................... 490/week - Monthly Rate ................................................................................................. 1,496/month • SCBA ................................................................................................................................ 270/day • Supplied Air Trailer……………………………………………………...……………… 500/day - Weekly Rate...................................................................................................... 2000/week - Monthly Rate .................................................................................................. 8000/month

General Terms

1. Equipment usage rates are exclusive of freight charges to and from the project site. Freight is an additional expense chargeable to CITY.

2. Shipping, supplies, equipment rental, materials, vehicle mileage, and other non-labor equipment costs or direct costs are billed at cost plus 10 percent.

3. Equipment rented will be charged portal-to-portal from SCS Field Services offices. Renter is responsible for return charges.

4. The cost of equipment owned by SCS Field Services will not be subject to administrative markup.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
43 Packet Pg. 240 of 541

Professional Services
Rev. Oct 16,2024

EXHIBIT D

INSURANCE REQUIREMENTS

CONSULTANTS 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 HEREIN.

REQUIRED TYPE OF COVERAGE REQUIREMENT

MINIMUM LIMITS
EACH

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

STATUTORY

STATUTORY 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

YES

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: CONSULTANT, 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 CONSULTANT 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. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.

II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: [email protected]

III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:

A. PRIMARY COVERAGE

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.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
44 Packet Pg. 241 of 541

Professional Services
Rev. Oct 16,2024

B. CROSS LIABILITY

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

THE POLICY SHALL NOT, FOR THAT REASON ALONE, 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 CONSULTANT 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 CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL:

[email protected]

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
45 Packet Pg. 242 of 541

Professional Services
Rev. Oct 16,2024

EXHIBIT E

DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS

This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONSULTANT without proof that CONSULTANT and its listed subcontrac tors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONSULTANT and its listed subcontractors, if any, to comply with all applicable requirements of the California Labor Code including but not limited to Labor Code Sections 1720 through 1861, and all applicable related regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq ., as amended from time to time. This Exhibit E applies in addition to the provisions of Section 26 (Prevailing Wages and DIR Registration for Public Works Contracts) of the Agreement.

CITY provides notice to CONSULTANT 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 Co ntract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.”

This Project is subject to compliance monitoring and enforcement by DIR. All contractors must be registered with DIR per Labor Code Section 1725.5 in order to submit a bid. All subcontractors must also be registered with DIR. No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with DIR. Additional information regarding public works and prevailing wage requirements is available on the DIR web site (see e.g. http://www.dir.ca.gov) as amended from time to time.

CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is required to post all job site notices prescribed by law or regulation.

CONSULTANT shall furnish certified payroll records directly to the Labor Commissioner (DIR) in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section 16461).

CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of Labor Code Section 1776, including but not limited to:

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, CONSULTANT and its listed subcontractors, in connection with the Project.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
46 Packet Pg. 243 of 541

Professional Services
Rev. Oct 16,2024

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 CONSULTANT and its listed subcontractors, respectively.

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

CITY requests CONSULTANT and its listed subcontractors to submit the certified payroll records to CITY’s Project Manager at the end of each week during the Project.

If the certified payroll records are not pro vided as required within the 10 -day period, then CONSULTANT 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 CONSULTANT.

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

Eight (8) hours labor constitutes a legal day’s work. CONSULTANT shall forfeit as a penalty to CITY, $25.00 for each worker employed in the execution of the Agreement by CONSULTANT or any subcontractor for each calendar day during which such worker is req uired or permitted to work more than eight (8) hours in any one calendar day or forty (40) hours in any one calendar week in violation of the provisions of the Labor Code, and in particular, Sections 1810 through 1815 thereof, except that work performed by employees of CONSULTANT or any subcontractor in excess of eight (8) hours per day, or forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day, or forty (40) hours per week, at no t less than one and one -half (1&1/2) times the basic rate of pay, as provided in Section 1815.

CONSULTANT shall secure the payment of workers’ compensation to its employees as provided in Labor Code Sections 1860 and 3700 (Labor Code 1861). CONSULTANT shall sign and file with the CITY a statutorily prescribed statement acknowledging its obligation to secure the payment of workers’ compensation to its employees before beginning work (Labor Code 1861).

CONSULTANT shall post job site notices per regulation (Labor Code 1771.4(a)(2)).

CONSULTANT shall comply with the statutory requirements regarding employment of apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
47 Packet Pg. 244 of 541

Professional Services
Rev. Oct 16,2024

EXHIBIT F
CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204 PUBLIC WORKS

PROJECTS

The provisions of this Exhibit are provided in compliance with Public Contract Code Section 9204; they provide the exclusive procedures for any claims pursuant to Public Contract Code Section 9204 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 submitted to City in compliance with the requirements of this Exhibit 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 four teen (14) days will result in its being deemed waived.

(B) Submission. The Claim must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Exhibit, 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 Exhibit, 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 Cla im 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.

(D) If City Council Approval Required. If the City needs approval 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 C ouncil after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
48 Packet Pg. 245 of 541

Professional Services
Rev. Oct 16,2024

(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 Exhibit 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 qua lified 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 Cl aim 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, 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 Exhibit or to otherwise meet the time requirements of this Exhibit shall result in the Claim being deemed rejected in its entirety. A Claim that is de nied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Exhibit, 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.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
49 Packet Pg. 246 of 541

Professional Services
Rev. Oct 16,2024

6. Approved Subcontractor Claims . If an approved subcontractor 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 low er 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 granted 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 Co de Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
50 Packet Pg. 247 of 541

Professional Services
Rev. Oct 16,2024

EXHIBIT G

REQUIRED CITY BOND FORMS

[Require use of the attached City payment and performance bond forms if the Project Sum exceeds $25,000.]

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
51 Packet Pg. 248 of 541

Professional Services
Rev. Oct 16,2024

PERFORMANCE BOND

WHEREAS, the City Council of the City of Palo Alto, State of California (“ City”) and , (“ Principal”) have entered into an agreement dated , and identified as (“Agreement”), which is hereby referred to and made a part hereof whereby Principal agrees to install and complete certain designated public improvements; and

WHEREAS, Principal is required under the terms of the Agreement to furnish a surety bond for the faithful performance of the Agreement.

NOW, THEREFORE, Principal and ______________________________________, as Surety, incorporated under the Laws of the State of , and duly authorized to transact business as an admitted surety, under the laws of the State of California, are held and firmly bound unto City in the penal sum of dollars ($ ), for the payment whereof Principal and Surety bind themselves, their respective heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.

The condition of this obligation is such that if the Principal, Principal’s heirs, executors, administrators, successors, or assigns will promptly and faithfully keep and perform the covenants, conditions, and provisions of the Agreement and any alteration thereof, with or without notice to the Surety, and if Principal will satisfy all claims and demands incurred under the Agreement and will fully protect, indemnify, defend, and hold harmless City, its officers, agents, and employees from all claims, demands, or liabilities which may arise by reason of Principal’s failure to do so, and will reimburse and repay City all outlay and expenses which City may incur in making good any default, then this obligation will be null and void; otherwise, it will remain in full force and effect.

As part of the obligations secured hereto, and in addition to the face amount specified above, there will be included costs and reasonable expenses and fees, including reasonable attorney’s fees incurred by City in successfully enforcing such obligations, all to be taxed as costs and included in any judgment rendered. Surety will be liable for any liquidated damages for which the Principal may be liable under its Agreement, and such liquidated damages will be part of the obligations secured hereto, and in addition to the face amount specified above.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Agreement or to the work to be performed thereunder or the specifications accompanying the same, shall in any way affect its obligations on this security, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the agreement or to the work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this bond and has all rights of a party hereto.

/ / /

/ / /

/ / /
Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
52 Packet Pg. 249 of 541

Professional Services
Rev. Oct 16,2024

IN WITNESS WHEREOF, this instrument has been duly executed by the Surety and Principal above named on ______________, 20___.

____________________________________ Phone Number: _____________________ Name of Surety

Signature of Surety

By: Its:

Typed or Printed Name Title

Name of Contractor/Principal

Signature of Contractor/Principal

By: Its:

Typed or Printed Name Title

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
53 Packet Pg. 250 of 541

Professional Services
Rev. Oct 16,2024

CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)

STATE OF )

COUNTY OF )

On , before me, , a notary public in and for said County, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/t heir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

(Seal)

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
54 Packet Pg. 251 of 541

Professional Services
Rev. Oct 16,2024

PAYMENT BOND

WHEREAS, the City Council of the City of Palo Alto, State of California (“ City”) and , (“ Principal”), have entered into an agreement dated , and identified as (“Agreement”), which is hereby referred to and made a part here of, whereby Principal agrees to install and complete certain designated public improvements; and

WHEREAS, under the terms of the Agreement, Principal is required before entering upon the performance of the work to file a good and sufficient payment surety bond with City to secure the claims to which reference is made in Titles 1 and 3 (commencing with Section 8000) of Part 6 of Division 4 of the Civil Code of the State of California.

NOW, THEREFORE, Principal and _______________________________________, as Surety, incorporated under the laws of the State of ___________________________, and duly authorized to transact business as an admitted surety, under the laws of the State of California, are held and firmly bound unto City in the penal sum of dollars ($ ), this amount being not less than one hundred percent of the total amount payable by the terms of the Agreement per Civil Code section 9554, for the payment whereof Principal and Surety bind themselves, their respective heirs, executors, administrators, s uccessors, and assigns, jointly and severally, firmly by these presents.

The condition of this obligation is such that if Principal, Principal’s subcontractors, heirs, executors, administrators, successors, or assigns shall fail to pay any of the persons, companies, or corporations, referred to in section 9100 of the California Civil Code, as amended, with respect to any work of labor performed or materials supplied by any such persons, companies, or corporations, which work, labor, or materials are covered by the Agreement and any amendments, changes, change order, additions, alterations, or modifications thereof, or any amounts due under the California Unemployment Insurance Code with respect to such work or labor, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Principal and its subcontractors pursuant to Section 13020 of the Unemployment Insurance Code, as amended, with respect to such work and labor, the Surety will pay for the same, as specified in Civil Code section 9554, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, the Surety will pay reasonable attorney’s fees in an amount to be fixed by the court.

It is hereby expressly stipulated and agreed that this surety bond shall inure to the benefit of any and all persons, companies, and corporations entitled named in Section 9100 of the California Civil Code, as amended, so as to give a right of action to t hem or their assigns in any suit brought upon this surety bond.

The Surety agrees that no amendment, change, change order, addition, alteration, or modification to the terms of the agreement of the work to be performed thereunder or the specifications accompanying the same, shall in any way affect its obligations on this surety bond, provided the City waives the requirement for a new bond, and Surety does hereby waive notice of any such amendment, change, change order, addition, alteration, or modification to the terms of the agreement or to the work performed thereund er or to the specifications accompanying the same. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
55 Packet Pg. 252 of 541

Professional Services
Rev. Oct 16,2024

IN WITNESS WHEREOF, this instrument has been duly executed by the Surety and Principal above named on ______________, 20___.

____________________________________ Phone Number: _____________________ Name of Surety

Signature of Surety

By: Its:

Typed or Printed Name Title

Name of Contractor/Principal

Signature of Contractor/Principal

By: Its:

Typed or Printed Name Title

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
56 Packet Pg. 253 of 541

Professional Services
Rev. Oct 16,2024

CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)

STATE OF )

COUNTY OF )

On , before me, , a notary public in and for said County, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/t heir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

(Seal)

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Docusign Envelope ID: 71FDF2DA-3AFB-48FA-AAE9-E4E1CD16527E Item 6
Attachment A - Partially
Executed Contract with SCS
Field Services, Contract
#C26194618

Item 6: Staff Report
Pg.
57 Packet Pg. 254 of 541

City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: October 6, 2025
Report #:2503-4382
TITLE
Approval of Construction Contract No. C26193446 with MP Nexlevel of California, Inc., in the Amount Not-to-Exceed $13,600,187 and Authorization for the City Manager or Their Designee to Negotiate and Execute Changes Orders Up to a Not-to-Exceed Amount of $1,060,018 for a Total Not to Exceed Amount of $14,660,205 Over Three Years to Provide Utility Trench and Substructure Installations; CEQA status: Exempt, CEQA Guidelines Section 15301, 15302, and/or 15303; for Fiber-to-the-Premises work, Council Action on This Item is Within the Scope of the Final Initial Study and Mitigated Negative Declaration (IS/MND) for the Fiber-to-the-Premises Project, adopted on June 17, 2024.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve and authorize the City Manager or their designee to execute on-call construction Contract No. C26193446 with MP Nexlevel of California, Inc. in an amount not-to-exceed $13,600,187 (see Attachment A) to provide utility trenching and substructure installations and;

2. Authorize the City Manager or their designee to negotiate and execute change orders for related, additional but unforeseen work that may develop during the term in an amount not-to-exceed $1,060,018 for a total not-to-exceed amount of $14,660,205 over three years.

EXECUTIVE SUMMARY
Staff is requesting an authorized amount of $14,660,205 over the three-year contract term, for MP Nexlevel of California, Inc., to provide on-call utility trenching and substructure installation, labor and equipment. The contract total includes anticipated labor and equipment costs, reimbursement of related materials and contingency funding for related but unforeseen work that may develop during the contract term.

This contract provides for the routine work planned for electric and fiber operations, Item 7
Item 7 Staff Report

Item 7: Staff Report
Pg.
1 Packet Pg. 255 of 541

maintenance and customer connections and expanded capacity for key capital projects including but not limited to Foothills Rebuild for Wildfire Mitigation (EL-21001); and Fiber-to-the-Premises (FO-24000).

Staff continue to make progress on the FTTP pilot construction, including recent approval of the fiber hut permit that will advance the start of construction of the fiber hut foundation and substructure work at the Colorado Receiving Station. MPNexlevel is completing their survey which will inform updates to the construction schedule and timing of pilot fiber service availability. Staff are also pursuing opportunities to serve new multifamily residential developments where cost-effective as part of the FTTP pilot.

BACKGROUND
Electric substructure installation and trenching services are contracted out; the City does not have qualified staff to perform this work. The volume of substructure and trenching services varies each year based on the level of construction and development activities occurring within the City. Staff are seeking to establish a multi-year contract with a qualified general contractor to provide trenching and excavation services for the installation of electric utility substructures (conduits, boxes, vaults, etc.) on an as needed basis. Work performed under this contract is smaller in scale than typical utility infrastructure projects and use of an on-call contract gains the City administrative efficiencies (typically work ranges from $2,000 to $100,000 per task order). The necessary trenching and substructures are for a variety of customer service installations (EL-890280), replacement of existing underground electric system equipment (EL- 98003), for the Grid Modernization Project (EL-24000) and Foothills Rebuild Project (EL-21001), and for the Fiber-to-the-Premise Project (FTTP) (FO-24000), street lighting, and communication services. For customer service installations, the costs are reimbursed by the customers. The existing three-year trenching and substructure contract with MP Nexlevel ended in August 2025 and a new contract is needed to maintain continuity of service.

ANALYSIS
The City of Palo Alto has contracted for the installation of electric substructure and trenching services for over 25 years. Ahead of the existing contract’s expiration, on April 7, 2025 City staff issued an Invitation for Bids (IFB) to complete substructure and trenching work for electric and fiber optic capital improvement projects and occasionally for routine maintenance work. While 3652 firms were notified, the City only received one bid from MP Nexlevel of California, Inc.

Item 7
Item 7 Staff Report

Item 7: Staff Report
Pg.
2 Packet Pg. 256 of 541

Table 1: Summary of Bid Process
Bid Name/Number Utility Trench & Substructure Installation/ IFB 193446 (FY26-FY28)
IFB Issued April 7, 2025
Proposal Due May 21, 2025
# of Firms Notified 3,652
Total Days to Respond to IFB 44
Non-Mandatory Pre-Bid Meeting Yes
Number of Bids Received: 1
Staff believe that due to prevailing market conditions and major construction works across the state, contractors did not bid on this project due to the uncertain nature of the “on-call” contract. Rebidding is not a viable option as it will significantly impact and delay on-going customer connections, system improvement, electric grid modernization projects, and an immediate need to maintain access to trenching and substructure contractors.

Under the contract structure, staff create a scope of work (task order) each time the contractor’s services are needed, and the contractor provides a not-to-exceed quote based upon their submitted bid prices. Staff must agree to the contractor’s quote and authorize the work prior to the start of construction. Payment is made upon completion and acceptance of the work, with payment made based upon the actual quantities competed in the field. Material necessary to complete the installation of substructure (conduit, boxes, vaults, sand, slurry, etc.) are either provided to the contractor by the City or the contractor is reimbursed their cost to purchase the material including a 10% administration fee. Under the contract structure, no minimum amount of work is required.

For customer-initiated work, trenching and substructure costs are reimbursed by the customer through the customer connection charges. These costs do not contribute to electric ratepayer expenses. Retention is not held for each individual task order as they have a limited scope and construction duration.

Staff reviewed the single bid submitted by MP Nexlevel of California, Inc. (MP Nexlevel) and recommend that the base bid of $10,600,187 submitted by MP Nexlevel be accepted and that MP Nexlevel be declared the responsible bidder. In addition to the base bid, Staff is recommending an additional $3,000,000 in the first year of the contract to complete the FTTP pilot and Foothills Rebuild for wildfire mitigation (EL-21001). Staff previously awarded this work to MP Nexlevel under the existing contract C22183580 expiring October 31. Due to delays in the fiber hut installation, material lead time for FTTP related materials, and biological and archaeological survey requirements within Midpeninsula’s open space, MP Nexlevel will not be able to complete this work under the existing contract. Staff is proposing to disencumber the Item 7
Item 7 Staff Report

Item 7: Staff Report
Pg.
3 Packet Pg. 257 of 541

remaining $3,500,000 in the original contract and reappropriate $3,000,000 to the new MP Nexlevel contract. Staff anticipates completion of the Foothills Rebuild and infrastructure necessary for FTTP pilot by early 2026. The City has contracted substructure work to MP Nexlevel for over 10 years and has been able to complete several projects through their services, most recently phases 1 – 4 of Foothills Undergrounding project.

The total bid pricing was based on the previous contract and adjusted for added quantities and labor rate escalations. For example, staff changed the scope of the contract to reflect actual bid quantities performed under the most recent contract increasing or decreasing number of hours for a skilled worker (e.g. foreman, equipment operator, truck driver) and types of equipment (e.g. dump truck, directional boring rig). Though the cost of equipment provided by MP Nexlevel was less than the previous bid, the bid’s labor costs increased by 35% due to high demand for construction workers and increasing market wages, thus resulting in a 17% difference between the staff estimate bid price and the bid price received.

The bid provided and contract requirement was labor and equipment costs only. Materials were not included as a bid item since they will be either supplied by the City or purchased by the Contractor with the contractor later reimbursed by the City. Material either supplied by the City or procured directly by the contract includes PVC conduit, boxes, vaults, sand, slurry fill, base rock, or other materials necessary to complete the installation of the substructure work.

The estimated reimbursement cost of Contractor supplied materials is $500,000 and is based on the previous year’s actuals. The contract base amount requested is $10,600,187, which is MP Nexlevel’s base bid price for labor and equipment, plus $500,000 for reimbursed material costs, and $3,000,000 reappropriation. Staff recommends an 8% contingency amount of $1,060,018 for additional unforeseen work that may develop during the three-year term for a total not-to-exceed amount of $14,660,205.

Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff checked references supplied by the contractor for previous work performed and found no significant complaints. The work by the contractor will be continually monitored and evaluated. Continued work under this contract will be subject to satisfactory performance by the contractor and appropriation of necessary funds in the respective fiscal years. If the contractor’s quality of work is not satisfactory and does not meet the City’s construction schedule, the City can terminate the contract at any time during the contract period.

FIBER-TO-THE-PREMISES UPDATE
On December 19, 2022, City Council directed staff to proceed with the Fiber Expansion Plan to implement the Fiber Rebuild project and Phase 1 of the FTTP project without debt financing.

Under Phase 1, staff identified specific areas in the City with lowest cost to build, high density, least competition, and highest demand from the community broadband survey.

Item 7
Item 7 Staff Report

Item 7: Staff Report
Pg.
4 Packet Pg. 258 of 541

Staff deployed a pilot to determine how to align electric grid modernization with FTTP to help streamline utility engineering design and pole replacements and minimize noise disruption, and construction activity in neighborhoods. Thus far, the pilot has been successful in consolidating the type of work, sharing costs and resources when possible, and minimizing construction activity and disruption in the neighborhoods.

Since housing is one of the Council’s top priorities for 2025, staff has been engaging with developers on permit reviews and their interest in Palo Alto Fiber internet. Developers have expressed interest in offering Palo Alto Fiber as another internet service provider to their new housing. FTTP construction costs for new developments are significantly lower than existing facilities because costs are either assumed by the developers or shared with the City and other communication providers.

As these new housing opportunities arise, staff explore project details to determine whether the developments are located in the Phase 1 area and/or near the City’s existing dark fiber backbone. Staff is evaluating the cost/benefit to serve developments outside the Phase 1 boundary and pursue connection where cost-effective within the existing budget and expected to benefit the pilot phase of FTTP implementation.

FTTP Pilot Construction Update
Staff continue to make progress on the FTTP pilot construction, including recent approval of the fiber hut permit that will advance the start of construction of the fiber hut foundation and substructure work at the Colorado Receiving Station. MPNexlevel is completing their survey which will inform updates to the construction schedule and timing of pilot fiber service availability. The fiber hut is built and will be delivered after the foundation is completed. Fiber cables, cabinets, and materials are on order and temporary perimeter fencing extended for the new fiber facility with a permanent security wall to follow.

FISCAL/RESOURCE IMPACT
Funding for this contract will be appropriated over the next three fiscal years based on Council approval of the Electric and Fiber Optic Capital Budgets. The first-year funds are available in the FY 2026 Capital Budget, and $14,660,205 of the total contract amount will be allocated to six projects as outlined below. The cost allocation is based on projected CIP construction work for the Electric and Fiber funds over the next three years.

Expected Contract Distribution by Fiscal Year
Description FY 2026 FY 2027 FY 2028 Total
Labor and Equipment $6,235,580 $3,365,003 $3,499,604 $13,100,187 Materials $166,000 $167,000 $167,000 $500,000
Contingency $340,158 $353,200 $366,660 $1,060,018
Total $6,741,738 $3,885,203 $4,033,264 $14,660,205
Item 7
Item 7 Staff Report

Item 7: Staff Report
Pg.
5 Packet Pg. 259 of 541

Contract Distribution by Project (WBS)
Project Split FY 2026 FY 2027 FY 2028 Total
EL-89028 – Elec Cust Connections 35% $1,646,365 $1,709,490 $1,774,636 $5,130,491 EL-98003 – Elec Sys Improvement 35% $1,646,364 $1,709,489 $1,774,636 $5,130,489 EL-21001 – Foothills Rebuild 6% $800,000 $0 $0 $800,000 FO-10000 – Fiber Cust Connections 3% $149,670 $155,408 $161,331 $466,409 FO-10001 – Fiber Sys Improvement 6% $299,339 $310,816 $322,661 $932,816 FO-24000 – Fiber-to-the-Premises 15% $2,200,000 $0 $0 $2,200,000 Total 100% $6,741,738 $3,885,203 $4,033,264 $14,660,205

ENVIRONMENTAL REVIEW
The on-call work contemplated under this contract is either categorically exempt from the California Environment Quality Act (CEQA) under California Code of Regulations Title 14, sections 15301 (repair or maintenance of existing facilities), 15302 (replacement or reconstruction of existing facilities) and/or 15303 (new construction or conversion of small structures); additionally, for work related to City’s Fiber to the Premises (FTTP) project, Council action on this item is within the scope of the Final Initial Study and Mitigated Negative Declaration (IS/MND) for the Fiber-to-the-Premises Project, adopted on June 17, 2024.

ATTACHMENTS:

Attachment A: MPNexlevel Contract, C26193446
APPROVED BY:

Alan Kurotori, Director of Utilities
Staff: Terry Crowley, Assistant Director of Utilities, Electric Engineering and Operations Item 7
Item 7 Staff Report

Item 7: Staff Report
Pg.
6 Packet Pg. 260 of 541

1 TASK ORDER CONSTRUCTION CONTRACT Rev. ____ 2023

TASK ORDER CONSTRUCTION CONTRACT

Contract No. C26193446

City of Palo Alto

On-Call Utility Trench & Substructure Installation Work (2026-2029 Year Task Order Contract)

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
7 Packet Pg. 261 of 541

2 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

TASK ORDER CONSTRUCTION CONTRACT

TABLE OF CONTENTS

SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS……………………………………...…………..7

1.1 Recitals…………………………………………………………………………………………………………………….7

1.2 Definitions………………………………………………………………………………………………………………….7 SECTION 2 THE PROJECT………………………………………………………………………………………………………...9 SECTION 3 THE CONTRACT DOCUMENTS………………………………………………………………………………..8

3.1 List of Documents……………………………………………………………………………………….…….........8

3.2 Order of Precedence……………………………………………………………………………………………......9 SECTION 4 CONTRACTOR’S DUTY……………………………………………………………………………….…………..10

4.1 Contractor's Duties…………………………………………………………………………………………………..9

4.1.1 Work Performed………………………………………………………………………………………..9

4.1.2 Excavation………………………………………………………………………………………..9

4.1.3 Representative present………………………………………………………………………………………..9

4.1.4 Coordination………………………………………………………………………………………..9

4.1.5 Testing Lab………………………………………………………………………………………..9

4.2 On-Call Provision………………………………………………………………………………………………………9

4.2.1 Work performed………………………………………………………………………………………..9

4.2.2 Prior to issuing first Task Order…………………………………………………………………………………..9

4.2.3 Each Task Order………………………………………………………………………………………..10

4.2.4 Objections………………………………………………………………………………………..10

4.2.5 Aggregated Task Order……………………………………………………………………………………10

4.3 Guarantee to Repair Period……………………………………………………………………10 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………..110

5.1 Contractor's Cooperation………………………………………………………………………………………..10 SECTION 6 TIME OF COMPLETION…………………………………………………………………………………….......10

6.1 Time Is of Essence…………………………………………………………………………………………………….12

6.2 Commencement of Work…………………………………………………………………………………………12

6.3 Contract Time…………………………………………………………………………………………………………..12 Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
8 Packet Pg. 262 of 541

3 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT
6 .4 Liquidated Damages…………………………………………………………………………………………………12

6.4.1 Other Remedies……………………………………………………………………………………………………..12

6.5 Adjustments to Contract Time………………………………………………………………………………….1 2 SECTION 7 COMPENSATION TO CONTRACTOR……………………………………………………………….……….12

7.1 Maximum Compensation and Contract Sum……….…………………………………………….………12 7 .2 Full Compensation……………………………………………………………………………………………………13

7.3 Payment……………………………………………………………………………………………………133

7.3.1 Task Order Compensation Amount………………………………………………………………………………13

7.3.2 Withholding……………………………………………………………………13

7.3.3 Withhold or deductions ……………………………………………………………………13

7.3.4 Section 9.7 Substantial Completion……………………………………………………………………13 SECTION 8 STANDARD OF CARE…………………………………………………………………………………….………..13 8 .1 Standard of Care…………………………………………………………………………………..…………………13 SECTION 9 INDEMNIFICATION……………………………………………………………………………………………..…14

9.1 Hold Harmless……………………………………………………………………………………………..………….14

9.2 Survival………………………………………………………………………………………………………...…………14 SECTION 10 NON-DISCRIMINATION……..……………………………………………………………………...…………14 1 0.1 Municipal Code Requirement…………….………………………………..……………………..………….14 SECTION 11 INSURANCE AND BONDS.…………………………………………………………………………………14

11.1 Evidence of Coverage……………………………………………………………………….………………..14 SECTION 12 PROHIBITION AGAINST TRANSFERS…………………………………………………………….….…15 1 2.1 Assignment………………………………………………………………………………………….…………….15

12.2 Assignment by Law.……………………………………………………………………………………………15 SECTION 13 NOTICES ………………………………………………………………………………………………………….15

13.1 Method of Notice ………………………………………………………………………………………………15

13.2 Notice Recipents ……………………………………………………………………………………………….15

13. 3 Change of Address……………………………………………………………………………………..……….16 SECTION 14 DEFAULT……………………………………………………………………………………….………………...16

14.1 Notice of Default………………………………………………………………………………………………….16

14.2 Opportunity to Cure Default…………………………………………………………………………………16 SECTION 15 CITY'S RIGHTS AND REMEDIES…………………………………………………………………………..17 Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
9 Packet Pg. 263 of 541

4 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

15. 1 Remedies Upon Default… …………………………………………………………………………………….17

15.1.1 Delete Certain Services…………………………………………………………………………………….17

15.1.2 Perform and Withhold……………………………………………………………………………………..1 7

15.1.3 Suspend The Construction Contract……………………………………….…………………………1 7 1 5.1.4 Terminate the Construction Contract for Default………………………………………………17

15.1.5 Invoke the Performance Bond………………………………………………………………………….17

15.1.6 Additional Provisions……………………………………………………………………………………….1 7

15.2 Delays by Sureties……………………………………………………………………………………………….18

15.3 Damages to City…………………………………………………………………………………………………..18

15.3.1 For Contractor's Default…………………………………………………………………………………..1 8

15.3.2 Compensation for Losses……………………………………………….…………………………………18

15.4 Suspension by City……………………………………………………………………………………………….18

15.4.1 Suspension for Convenience……………………………………………………………………………..1 8 1 5.4.2 Suspension for Cause…………………………………………………..…………………………………..18

15.5 Termination Without Cause…………………………………………………………………………………1 9

15.5.1 Compensation………………………………………………………………………………………………….19

15.5.2 Subcontractors………………………………………………………………………………………………..19

15.6 Contractor’s Duties Upon Termination………………………………………………………………...19 S
ECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES…………………….………………………………………20

16.1 Contractor’s Remedies……………………………………..………………………………..………………….20

16.1.1 For Work Stoppage……………………………………………………………………………………………20

16.1.2 For City's Non-Payment…………………………………………………………………………………….20

16. 2 Damages to Contractor………………………………………………………………………………………..20 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….…20

17. 1 Financial Management and City Access………………………………………………………………..20

17.2 Compliance with City Request s…………………………………………………………………………….21 SECTION 18 INDEPENDENT PARTIES……………………………………………………………………………………..2 1 1 8.1 Status of Parties……………………………………………………………………………………………………21 SECTION 19 NUISANCE……………………………………………………………………………………………………….…21 1 9.1 Nuisance Prohibited……………………………………………………………………………………………..21 Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
10 Packet Pg. 264 of 541

5 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT
SECTION 20 PERMITS AND LICENSES…………………………………………….……………………………………….2 1 SECTION 21 WAIVER…………………………………………………………………….……………………….…………….22 S
ECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS………………..……………….22

22.1 Governing Law and Venue…………………………………………………………………………….………….22

22.2 Compliance with Laws…………………………………………………………………………………………22

22.2.1 Palo Alto Minimum Wage Ordinance…………….………………………………………………….22 SECTION 23 COMPLETE AGREEMENT……………………………………………………………………………………22

23.1 Integration………………………………………………………………………………………………………….22 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………..22

24.1 Survival of Provisions…………………………………………………………………………….……………22 SECTION 25 PREVAILING WAGES………………………………………………………………………………………….22 SECTION 26 NON-APPROPRIATION……………………………………………………………………………………….23

26.1 Appropriation………………………………………………………………………………………………………23 SECTION 27 AUTHORITY……………………………………………………………………………………………………….23

27.1 Representation of Parties…………………………………………………………………………………….23 SECTION 28 COUNTERPARTS………………………………………………………………………………………………..23

28.1 Multiple Counterparts………………………………………………………………………………………….23 SECTION 29 SEVERABILITY……………………………………………………………………………………………………24

29.1 Severability………………………………………………………………………………………….…………….24 SECTION 30 STATUTORY AND REGULATORY REFERENCES ……………………………………….…………..24

30.1 Amendments of Laws…………………………………………………………………………….…………..24 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………..……….….24

31.1 Workers Compensation…………………………………………………………………….…………….24 SECTION 32 DIR REGISTRATION AND OTHER REQUIREMENTS…………………….………..…24

32.1 General Notice to Contractor……………………………………………………………………………….…….24

32.2 Labor Code section 1771.1(a)……………………………………………………………………………….…….24

32.3 DIR Registration Required……………………………………………………………………………….…………25

32.4 Posting of Job Site Notices; Compliance Monitoring……………………………………………………25

32.5 Payroll Records……………………………………………………………………………………………….…………25

32.5.1 Accurate payroll records…………………………………………………………………………….…………25 Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
11 Packet Pg. 265 of 541

6 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

32.5.2 Payroll records verified…………………………………………………………………………….…………25

32.5.3 Certified payroll records available…………………………………………………………….…………25

32.5.4 Penalty for not producing records……………………………………………………………….…………25

32.5.5 Informing Project manager …………………………………………………………………………….…………25

32.6 Employment of Apprentices…………………………………………………………………………….…………26 Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
12 Packet Pg. 266 of 541

7 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

TASK ORDER CONSTRUCTION CONTRACT

THIS TASK ORDER CONSTRUCTION CONTRACT ( “Construction Contract”) entered into on August 18, 2025 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ( “City”), and MP NEXLEVEL OF CALIFORNIA, INC. (“Contractor”), is made with reference to the following:

R E C I T A L S:

A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City.

B. Contractor is a corporation duly organized and in good standing in the State of California, California Contractor’s License Number 907019 and Department of Industrial Relations Registration Number 1000010357.

Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract.

C. On April 7, 2025, City issued an Invitation for Bids (“IFB”) to contractors for the On-Call Utility Trench & Substructure Installation Work (“Project”). In response to the IFB, Contractor submitted a Bid.

D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions.

NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows:

SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS.

1.1 Recitals.

All of the recitals are substantive parts of this Construction Contract and are hereby incorporated herein by reference.

1.2 Definitions.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
13 Packet Pg. 267 of 541

8 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

Capitalized terms shall have the meanings set forth in this Construction Contract (sometimes referred to herein as the “Contract”) and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. The following definitions apply to this Construction Contract and the General Conditions, notwithstanding and superseding any differing definitions in Article 1 of the General Conditions:

Acceptance: The point at the end of the Term (as defined in Section 2) when Contractor has fully performed each Task Order in compliance with the Contract Documents and the Project as a whole is accepted by the City in writing, including each Task Order which has been Conditionally Accepted.

Change Order: A duly authorized written instrument signed by the City or by the City and Contractor, which operates to amend the scope of Work in a Task Order, and which also amends the Task Order Compensation Amount or Contract Time.

Conditional Acceptance/Conditionally Accepted: The City’s provisional acceptance of a completed Task Order, subject to final Acceptance of the Project at the end of the Term.

Contract Sum: The maximum amount of compensation stated in Section 7 of this Construction Contract that is payable to Contractor for performance of the Work encompassed in the Task Orders issued by the City for the performance of the Work in accordance with the Contract Documents, including adjustments made by Change Order.

Contract Time: The total number of days set forth in a Task Order within which completion of the Task Order Work, including any adjustments of time (increases or decreases) made by Change Order.

Field Order: A written instrument signed by the City or its Construction Manager that authorizes and directs performance of the Work described therein , and which may or may not include adjustments (increase or decrease) to the Task Order Compensation Amount or Contract Time.

Final Completion: Full completion of the Work required by a Task Order, including all punc h list items and submission of Record Documents, all to City’s satisfaction.

Final Payment: Final Payment of any undisputed amounts due to Contractor following Acceptance, less any amounts withheld or offset pursuant to the Contract Documents, including, but not limited to, liquidated damages, unreleased stop notices, amounts subject to setoff, up to 150% of unresolved third- party claims for which Contractor is required to indemnify City, and up to 150% of any amounts in dispute as authorized by Public Contract Code section 7107.

Task Order: A written directive issued by the City to the Contractor using the Task Order form attached as Exhibit A-1 to this Construction Contract which specifies a scope of Work to be performed by the Contractor as well as the time for commencement and completion of the Work and the Task Order Compensation Amount, including any documents attached thereto or incorporated therein, and which may be modified by Change Order.

Task Order Compensation Amount: The total amount payable to Contractor for satisfactory completion of a Task Order in accordance with the Contract Documents.

Work: All labor, materials, equipment, services, permits, fees, licenses, and taxes, and all other things necessary for Contractor to perform its obligations and complete a Task Order, including, without limitation, any changes or additions requested by City, in accordance with the Contract Documents and all Applicable Code Requirements.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
14 Packet Pg. 268 of 541

9 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

SECTION 2 THE PROJECT.

The Project is located at various locations within Palo Alto, CA. The Project requires the Contractor to perform Work as specified in any Task Order issued by the City from time to time over a 3-year period of time, beginning on the Execution Date set forth above (the “Term”). In the event that the Work specified in any Task Order is not completed by the expiration of the Term, the City, in its sole discretion, may elect to extend the Term until completion of the Work and the City’s final Acceptance of the Project as a whole.

SECTION 3 THE CONTRACT DOCUMENTS.

3.1 List of Documents.

The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the City ’s Purchasing Division and are hereby incorporated into this Construction Contract by reference.

1) Change Orders

2) Field Orders

3) Construction Contract

4) Notice to Proceed

5) Bidding Addenda

6) Task Orders, and attachments thereto

7) Special Provisions

8) General Conditions

9) Project Plans and Drawings

10) Technical Specifications

11) Instructions to Bidders

12) Invitation for Bids

13) Contractor’s Bid and Non-Collusion Declaration

14) Reports listed in the Contract Documents

15) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid)
16) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time of Bid)

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
15 Packet Pg. 269 of 541

10 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

17) City of Palo Alto Traffic Control Requirements

18) City of Palo Alto Truck Route Map and Regulations

19) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre-Qualification Checklist (if applicable)

20) Performance and Payment Bonds

3.2 Order of Precedence.

For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency canno t be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City.

SECTION 4 CONTRACTOR’S DUTY.

4.1 Contractor’s Duties.

Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents and individual Task Orders, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work as specified in each Task Order and in the Contract Documents , including, but not limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. Unless otherwise specified in a Task Order:

4.1.1 Work should be performed during normal work hours (Monday through Friday between 8 AM and 6 PM).

4.1.2 Each excavation must be fully restored within forty-eight (48) hours.

4.1.3 City representative shall be present to inspect W ork performed and obtain necessary measurements/survey data if applicable.

4.1.4 Contractor must coordinate with the City’s representative to schedule soil compaction testing prior to pavement restoration.

4.1.5 Contractor shall anticipate up to 24- hour turn- around time for City’s contracted testing lab to perform soil compaction testing.

4.2 On-Call Provision.

4.2.1 Work performed under the Contract will be performed within the Term, on an on -call basis, as requested by the City from time to time, as needed, with a Task Order assigned and approved by the City’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A -1.

4.2.2 Prior to issuing the first Task Order, the City will schedule a mandatory pre -construction meeting with the Contractor, which will include review of the Task Order procedures and Project requirements.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
16 Packet Pg. 270 of 541

11 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

4.2.3 Each Task Order shall designate a City Project Manager and shall contain a specific scope of Work, a specific schedule of performance, and the Task Order Compensation Amoun t. Because each Task Order will contain a specific schedule of performance, unless otherwise specified in a Task Order, the Construction Schedule submittal requirements set forth in Section 3.10 (Schedules Required of Contractor) or in part

1.05 of Section 800 (Additional Provisions for Utilities Construction) of the Technical Speci fications will not apply to this Construction Contract.

4.2.3 Time is of the essence in completion of all Task Order Work. Therefore, Contractor must sign each Task Order issued by the City and return it to the Project Manager in PDF form sent via email, as indicated on the Task Order form, within 2 days of the issuance date shown on the Task Order.

4.2.4 If Contractor has any objections to or questions regarding a Task Order it must notify City of such objections or questions promptly following receipt of the Task Order so any such issues may be resolved without delaying the Work as scheduled. Contractor’s failure to timely comply with the requirements in this paragraph will be deemed a material breach of this Construction Contract.

4.2.5 The aggregated Task Order Compensation Amount issued under this Construction Contract shall not exceed the maximum Contract Sum set forth in Section 7, below. Contractor shall only be compensated for Work performed under an authorized Task Order and the City may elect, but is not required, to authorize Work up to the maximum Contract Sum set forth in Section 7.

4.3 Guarantee to Repair Period.

Notwithstanding any provision in the Contract Documents to the contrary, the one -year “Guarantee To Repair Period” specified in Section 12.2 of the General Conditions (Correction of Defective Work and Guarantee to Repair Period) will commence separately for each Task Order, beginning from the date of Conditional Acceptance by the City of each Task Order. If Contractor fails to repair Defective Work within the applicable Guarantee To Repair Period, the City may deduct its cost of having such Defective Work repaired from any payments otherwise due to Contractor.

SECTION 5 PROJECT TEAM.

5.1 Contractor’s Cooperation.

In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectiv ely and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project.

SECTION 6 TIME OF COMPLETION.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
17 Packet Pg. 271 of 541

12 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT
6 .1 Time Is of Essence.

T
ime is of the essence with respect to all time limits set forth in the Contract Documents, including each Task Order. 6 .2 Commencement of Work.

C
ontractor shall commence the Work on the date specified in each Task Order , notwithstanding references elsewhere in the Contract Documents to commencing Work on the date specified in the Notice to Proceed . 6 .3 Contract Time.

W
ork hereunder shall begin on the date specified in each Task Order, and the specific work authorized by each Task Order shall be completed no later than the time/schedule requirements specifi ed therein, and in conformance with the Contract Documents. By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion of any Task Order. 6 .4 Liquidated Damages.

P
ursuant to Public Contract Code Section 7203, if Contractor fails to achieve Final Completion of the entire Work within the Contract Time specified in a Task Order, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Final Completion of the Task Order, based on the amount of Five Hundred Dollars ($500) per day, or as otherwise specified in the Special Provisions. Liquidated damages may also be separately assessed for failure to meet milestones specified elsewhere in the Contract Documents, regardless of impact on the time for achieving Final Completion. The assessment of liquidated damages is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer by delay in completion of the Work. The City is entitled to setoff the amount of liquidated damages assessed against any payments otherwise due to Contractor, including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the amount of unreleased reten tion, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in part prior to Final Completion, shall not operate as a waiver of City’s right to assess liquidated damages. 6 .4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Final Completion of the entire Work within the Contract Time specified in a Task Order. 6 .5 Adjustments to Contract Time.

T
he Contract Time for each Task Order may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents.

S
ECTION 7 COMPENSATION TO CONTRACTOR.
7 .1 Maximum Compensation and Contract Sum.

Contractor shall be compensated for the Task Order Compensation Amount specified in each Task Order for satisfactory completion of the Work specified in that Task Order in compliance with the Contract Documents, but the Contract Sum will not exceed Fourteen Million Six Hundred Sixty Thousand Two Hundred Five dollars ($14,660,205.00) for the Term.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
18 Packet Pg. 272 of 541

13 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

In addition, the total annual Task Order Compensation Amount may not exceed $<insert field> during each year of the Term.

7.2 Full Compensation.

The Task Order Compensation amount, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered i n performance of the Work required by each Task Order until its Conditional Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Task Order Compensation Amount may only be adjusted by a Change Order approved in accordance with the requirements of the Contract Documents.

7.3 Payment.

Notwithstanding any conflicting or inconsistent provisions in the Contract Documents, including Article 9 (Payments and Completion) of the General Conditions, the following will apply to this Construction Contract:

7.3.1 The Task Order Compensation Amount will be based upon the unit prices set forth in the Bid Schedule and not on a separate Schedule of Values.

7.3.2 The City will withhold five percent (5%) retention from each payment to Contractor. All undisputed retention will be released to Contractor within sixty (60) days following:

T he end of each one-year period during the Term, measured from the Execution Date.

Other: _______________________________________________________.

7.3.3 The City may also withhold or make deductions from payments otherwise due or to become due to the Contractor as otherwise specified within the Contract Documents, including deductions for liquidated damages or withholding for unreleased stop notices.

7.3.4 Section 9.7 (Substantial Completion) of the General Conditions will not apply to this Construction Contract and all other references to “Substantial Completion” in the Contract Documents will be deemed to mean “Final Completion,” as defined herein.

SECTION 8 STANDARD OF CARE.

8.1 Standard of Care.

Contractor agrees that the Work shall be performed by qualified, experienced and well -supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
19 Packet Pg. 273 of 541

14 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

SECTION 9 INDEMNIFICATION.

9.1 Hold Harmless.

To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as “ Indemnitees”), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and co sts of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comp ly with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Except as provided in Section

9.2, below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee.

Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of any third- party claim relating to the Contract.

9.2 Survival.

The provisions of Section 9 shall survive the termination or expiration of this Construction Contract.

SECTION 10 NON-DISCRIMINATION.

10.1 Municipal Code Requirement.

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 person due to the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, 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 o f the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.

SECTION 11 INSURANCE AND BONDS.

11.1 Evidence of coverage.

Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Notwithstanding any conflicting or inconsistent provisions elsewhere in the Contract Documents, the amount for each of the bonds must be based upon one hundred percent (100%) of the Contract Sum, as defined in this Construction Contract.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
20 Packet Pg. 274 of 541

15 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

SECTION 12 PROHIBITION AGAINST TRANSFERS.

12.1 Assignment.

City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construct ion Contract or any interest therein , including any Task Order, directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City.

12.2 Assignment by Law.

The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint -venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co -tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity.

SECTION 13 NOTICES.

13.1 Method of Notice.

All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed received on the earlier of the following:

(i) On the date delivered if delivered personally;
(ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided;
(iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is received by the recipient if sent by certified mail.

13.2 Notice to Recipients.

All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at:

To City: City of Palo Alto
City Clerk
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, CA 94303

Copy to: City of Palo Alto
Public Works Administration
250 Hamilton Avenue
Palo Alto, CA 94301
Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
21 Packet Pg. 275 of 541

16 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

Attn:

[Include Construction Manager, If Applicable.]
_______________________________
_______________________________
_______________________________
_______________________________

City of Palo Alto
Utilities Engineering
250 Hamilton Avenue
Palo Alto, CA 94301
Attn: Jim Pachikara

In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following:

Palo Alto City Attorney’s Office
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, California 94303

All Claims shall be sent by registered mail or certified mail with return receipt requested.

All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at:

To Contractor:

MP Nexlevel of California, Inc.
500 County Road 37 East
Maple Lake, MN 55358
Attn: Felicia Brezinka

13.3 Change of Address.

In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided.

SECTION 14 DEFAULT.

14.1 Notice of Default.

In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents , including any Task Order, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety.

14.2 Opportunity to Cure Default.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
22 Packet Pg. 276 of 541

17 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT
Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice.

However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice.

SECTION 15 CITY’S RIGHTS AND REMEDIES.

15. 1 Remedies Upon Default.

I
f Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, without limitation, the following:

15. 1.1 Delete Certain Work . City may, without terminating the Construction Contract, delete certain portions of the Work from one or more Task Orders, reserving to itself all rights to Losses related thereto.

15. 1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work from one or more Task Orders that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto.

15. 1.3 Suspend the Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract or one or more Task Orders for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum , Task Order Compensation Amount or Contract Time, and shall have no liability to Contractor for damages if Ci ty directs Contractor to resume Work.

15. 1.4 Terminate the Construction Contract for Default . City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein.

15. 1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond.

15. 1.6 Additional Provisions . All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive t he City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Construction Contract for breaches that are not material. Ci ty’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suff ered by City.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
23 Packet Pg. 277 of 541

18 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

15.2 Delays by Sureties.

Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that C ity determines advisable under the circumstances.

Contractor and its surety shall be jointly and severally liable for any additional cost incurred by City to complete the Work following termination. In addition, City shall have the right to use any mater ials, supplies, and equipment belonging to Contractor and located at the Worksite for a Task Order for the purposes of completing the remaining Work.

15.3 Damages to City.

15.3.1 For Contractor’s Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents.

15.3.2 Compensation for Losses. In the event that City’s Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the difference and shall promptly remit same to City.

15.4 Suspension by City.

15.4.1 Suspension for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work under one or more Task Orders in whole or in part. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, i f any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work.

15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents including the applicable Task Order(s), City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction. Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occ asioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
24 Packet Pg. 278 of 541

19 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

15.5 Termination Without Cause.

City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, inclu ding, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor.

15.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work :

.1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor.

.2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors:
(i) Demobilizing and
(ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination.

.3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work.

.4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated.

15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section.

15.6 Contractor’s Duties Upon Termination.

Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following:

(i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) For each Task Order, p rovide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
25 Packet Pg. 279 of 541

20 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract;
(iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portion s thereof, that City does not elect to accept by assignment; and
(v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto.

Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, submittals of as -built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date.

SECTION 16 CONTRACTOR’S RIGHTS AND REMEDIES.

16.1 Contractor’s Remedies.

Contractor may terminate this Construction Contract or a Task Order only upon the occurrence of one of the following:

16.1.1 For Work Stoppage. The Work under a Task Order is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience.

16.1.2 For City’s Non-Payment. If City does not pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract or the subject Task Order (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract.

16.2 Damages to Contractor.

In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph

15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind.

SECTION 17 ACCOUNTING RECORDS.

17.1 Financial Management and City Access.

Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City ’s accountants during normal business hours, may inspect, audit and copy Contractor ’s records, books, estimates, take -offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
26 Packet Pg. 280 of 541

21 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

17.2 Compliance with City Requests.

Contractor’s compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor ’s right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony.

SECTION 18 INDEPENDENT PARTIES.

18.1 Status of parties.

Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth.

SECTION 19 NUISANCE.

19.1 Nuisance Prohibited.

Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract.

SECTION 20 PERMITS AND LICENSES.

Except as otherwise provided in the Special Provisions and Technical Specifications or an individual Task Order , the Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays cau sed by non- City inspectors or conditions set forth in the licenses or permits issued by other agencies.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
27 Packet Pg. 281 of 541

22 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

SECTION 21 WAIVER.

A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character.

SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS.

22.1 Governing Law and Venue.

This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, without regard to conflict of law provisions, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, California and no other place.

22.2 Compliance with Laws.

Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract.

22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) h ours 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.

SECTION 23 COMPLETE AGREEMENT.

23.1 Integration.

This Construction Contract, including the Contract Documents incorporated herein, represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Construction Contract may be amended only by a written instrument, which is signed by the parties.

SECTION 24 SURVIVAL OF CONTRACT.

24.1 Survival of Provisions.

The provisions of the Construction Contract which by their nature survive termination or expiration of the Construction Contract or Final Completion , including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion of a Task Order or any termination or expiration of a Task Order or the Construction Contract.

SECTION 25 PREVAILING WAGES.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
28 Packet Pg. 282 of 541

23 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

This Construction Contract is not subject to prevailing wages and related requirements . Contractor is not required to pay prevailing wages and meet related requirements under the California Labor Code or California Code of Regulations in the performance and implementation of a Task Order if the Contract:

___is not a public works contract as defined in Labor Code section 1720 et seq.; ___is for a public works construction project of $25,000 or less, per Labor Code Sections 1782(d)(1), 1725.5(f) and 1773(j);
___is for a public works alteration, demolition, repair, or maintenance of $15,000 or less, per Labor Code Sections 1782(d)(1), 1725.5(f) and 1773(j).

Or

This Construction Contract is subject to prevailing wages and related requirements as a “public works” contract under California Labor Code Sections 1720 et seq. and related regulations. Contractor is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the City 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 Construction Contract for this Project and any Task Order issued pursuant to this Construction Contract from the State of California Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the City’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, website (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. Contractor shall post a copy of the general prevailing wage rates at all Project job sites for each Task Order and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.) , including, but not limited to, Sections 1720, 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.), as amended from time to time.

SECTION 26 NON-APPROPRIATION.

26.1 Appropriations.

This Construction Contract is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Construction Contract will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, 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 Construction Contract are no longer available. This section shall t ake precedence in the event of a conflict with any other covenant, term, condition, or provision of this Construction Contract.

SECTION 27 AUTHORITY.

27.1 Representation of Parties.

The individuals executing this Construction Contract represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.

SECTION 28 COUNTERPARTS

28.1 Multiple Counterparts.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
29 Packet Pg. 283 of 541

24 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

This Construction Contract may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement.

SECTION 29 SEVERABILITY.

29.1 Severability.

In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected.

SECTION 30 STATUTORY AND REGULATORY REFERENCES.

30.1 Amendments to Laws.

With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, as may be amended from time to time, unless otherwise required by law.

SECTION 31 WORKERS’ COMPENSATION CERTIFICATION.

31.1 Workers Compensation.

Contractor will maintain workers’ compensation insurance for its employees as required by law, including Labor Code sections 1860 and 3700. Pursuant to Labor Code Section 1861, by signing this Construction Contract, Contractor certifies as follows:

“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.”

SECTION 32 DIR REGISTRATION AND OTHER REQUIREMENTS.

32.1 General Notice to Contractor.

City requires Contractor and its S ubcontractors to comply with all applicable requirements of the California Labor Code including but not limited to Labor Code Sections 1720 through 1861, and all applicable related regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Se ction 16000 et seq., as amended from time to time. Additional information regarding public works and prevailing wage requirements is available on the DIR website (see e.g. http://www.dir.ca.gov) as amended from time to time. .

32.2 Labor Code section 1771.1(a)

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 Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
30 Packet Pg. 284 of 541

25 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

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 contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.”

32.3 DIR Registration Required.

City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its S ubcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions.

32.4 Posting of Job Site Notices; Compliance Monitoring.

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 - compliance monitoring and enforcement by DIR.

32.5 Payroll Records.

Contractor shall furnish certified payroll records directly to the Labor Commissioner (DIR) in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section 16461).

City requires Contractor and its Subcontractors to comply with the requirements of Labor Code section 1776, including, but not limited to:

32.5.1 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 Subcontractors, in connection with the Project.

32.5.2 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 Subcontractors, respectively.

32.5.3 At the request of City, acting by its Project Manager, Contractor and its Subcontractors shall make the certified payroll records available for inspection or furnished upon request to the City’s Project Manager within ten (10) days of receipt of City’s request.

City requests Contractor and its Subcontractors to submit the certified payroll records to the City’s Project Manager at the end of each week during the Project.

32.5.4 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 w orker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof.

32.5.5 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.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
31 Packet Pg. 285 of 541

26 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

32.6 Employment of Apprentices.

Contractor shall comply with the statutory requirements regarding employment of apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
32 Packet Pg. 286 of 541

27 TASK ORDER CONSTRUCTION CONTRACT Rev. ____ 2023

IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed on the date and year first above written.

CITY OF PALO ALTO

____________________________
City Manager

APPROVED AS TO FORM:

____________________________
City Attorney or designee

MP NEXLEVEL OF CALIFORNIA, INC.

By:___________________________

Name:________________________

Title:__________________________

By:____________________________

Name:_________________________

Title:___________________________

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
33 Packet Pg. 287 of 541

28 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

EXHIBIT “A-1”

TASK ORDER FORM
Contractor hereby agrees to perform the Work detailed below in accordance with all the terms and conditions of the Construction Contract referenced in Item 1A below. All attachments listed in Item 7 are incorporated into this Task Order by this reference. The Contractor shall furnish the necessary labor, equipment, and materials required by this Task Order as described below, and as further specified in the Contract Documents.

CONTRACT NO. ISSUE DATE
Purchase Requisition No.

1A. TASK ORDER CONSTRUCTION CONTRACT NUMBER
1B. TASK ORDER NO.

2. CONTRACTOR

3. CONTRACT TIME: START: COMPLETION:
4 TASK ORDER COMPENSATION AMOUNT: $__________________
BALANCE REMAINING IN CONTRACT SUM: $__________________________________

5. BUDGET CODE: _______________
COST CENTER: _________________ COST ELEMENT: ______________ WBS/CIP: ___PHASE: ___

6. CITY PROJECT MANAGER’S NAME/DEPARTMENT:_____________________________________

7. ATTACHMENTS: A: Task Order Scope of Work B (if any): __________________________________ ----------------------------------------------------------------------------------------------------------------------------- ------

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 Consultant.

APPROVED: APPROVED:

CITY OF PALO ALTO CONTRACTOR NAME: ______________________

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

Contractor must sign and return this Task Order in PDF form via email to the Project Manager at [email protected] within two days following the Issue Date set forth above.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
34 Packet Pg. 288 of 541

29 Rev. _____ 2023

TASK ORDER CONSTRUCTION CONTRACT

EXHIBIT “A-1”

TASK ORDER FORM
Attachment A – Task Order Scope of Work

1. DESCRIPTION OF WORK TO BE PERFORMED.

2. SCHEDULE FOR PERFORMANCE OF WORK.

3. BASIS FOR TASK ORDER COMPENSATION AMOUNT.

4. SUBMITTAL REQUIREMENTS.

5. ADDITIONAL PROVISIONS.

Item 7
Attachment A - MPNexlevel
Contract, C26193446

Item 7: Staff Report
Pg.
35 Packet Pg. 289 of 541

City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 6, 2025
Report #:2508-5045
TITLE
Approval of Construction Contract C25194006 with SCC Electric, Inc. in the Not-to-Exceed Amount of $997,500, and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders Up to a Not-to-Exceed Amount of $99,750 for the Utilities Control Center Generator Replacement Project as part of the Building Systems Improvements Project (PF-01003); and Approve Amendment to the FY 2026 Budget in the Capital Improvement and Electric Funds; CEQA Status - Exempt under CEQA Guideline Sections 15301 and 15302

RECOMMENDATION
Staff recommends that the City Council:

1. Approve and authorize the City Manager or their designee to execute construction contract C25194006 with SCC Electric, Inc. in the amount not to exceed $997,500 for the Utilities Control Center Generator Replacement Project, part of the Building Systems Improvements Project (PF-01003);

2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with SCC Electric, Inc. for related, additional but unforeseen work which may develop during the contract period, the total value of which shall not exceed $99,750;

3. Amend the Fiscal Year 2026 Capital Budget Appropriation for the Capital Improvement Fund (requires two-thirds vote) by:
a. Increasing the expense appropriation for the Building Systems Improvements Project (PF-01003) by $597,250; and
b. Increasing the estimate for Transfer in from Electric Fund for the Building Systems Improvements Project (PF-01003) by $597,250; and

4. Amend the Fiscal Year 2026 Operating Budget Appropriation for the Electric Fund (requires two-thirds vote) by:
a. Increasing the Transfer to Capital Improvement Fund appropriation by $597,250; and
b. Decreasing the Electric Fund Operations Reserve by $597,250.

Item 8
Item 8 Staff Report

Item 8: Staff Report
Pg.
1 Packet Pg. 290 of 541

BACKGROUND
The existing emergency generator for the Utilities Control Center (UCC) at the Municipal Service Center (MSC) was installed in 1987 and is now 38 years old. Due to its age and outdated technology, the generator no longer complies with the current emissions standards set by the U.S. Environmental Protection Agency for non-road diesel engines. Additionally, sourcing replacement parts for the existing generator has become increasingly difficult, resulting in potential delays and increased maintenance costs. To meet these regulations and ensure reliable emergency power, the generator must be replaced. Under the recommended contract C251940061, SCC Electric, Inc. will be responsible for this project.

ANALYSIS
Scope Overview
The scope of work includes the installation of a new generator along with a new Automatic Transfer Switch (ATS), which is essential for automatically transferring electrical loads during power outages. A triple switch will also be installed to enable safe maintenance and testing operations. All components will be integrated into the existing electrical system.

In addition, the project includes the removal of the underground diesel fuel storage tank. Given its age, the tank poses potential environmental risks such as leakage and soil or groundwater contamination. Removing the tank will eliminate future liabilities and align the UCC with current environmental safety standards. In its place, the project will install a new Tier-4 compliant diesel generator with an integrated above-ground belly fuel tank. The tank is built directly into the generator base and serves as the primary on-site fuel storage. This configuration consolidates fuel storage within the generator system and eliminates the need for separate tanks or underground fuel infrastructure.

Outdoor lighting will also be installed to improve visibility and safety around the generator area, particularly during nighttime maintenance or emergency operations.

Solicitation Process
On April 2, 2025, a notice inviting formal bids for the UCC generator replacement was posted on the OpenGov Procurement website. Thirteen contractors attended the pre-bid meeting; one qualified bid was received by the June 30, 2025 deadline.

Table 1: Summary of Bid Process
Bid Name/Number UCC Generator Replacement Project
IFB #194006
Proposed Length of Contract 120 days
Total Days to Respond to Bid 90
1 UCC Generator Replacement Project Contract C26194006; https://www.paloalto.gov/files/assets/public/v/1/public-works/public-services/contracts/c26194006-ucc- generator-contract.pdf
Item 8
Item 8 Staff Report

Item 8: Staff Report
Pg.
2 Packet Pg. 291 of 541

Number of Bids Received 1
Bid Price Range $997,500
Staff has reviewed the submitted bid and recommends that the bid of $997,500 submitted by SCC Electric, Inc. be accepted and that SCC Electric, Inc. be declared the lowest responsible bidder. Although only one bid was received, the submitted bid closely aligns with the engineer’s estimate of $1 million, indicating that the pricing remains reasonable and consistent with current market conditions. The award of contract includes the base bid. The change order amount of $99,750 (which equals 10% of the total contract) is requested for related, additional but unforeseen work which may develop during the contract term.

Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff also confirmed with the California Department of Industrial Relations (DIR) that the contractor has an active DIR registration.

FISCAL/RESOURCE IMPACT
Partial funding for this work is available in the Fiscal Year 2026 Adopted Capital Budget for the Building Systems Improvement Project (PF-01003). To fully fund the UCC Generator Replacement Project, the Fiscal Year 2026 budget is recommended to be amended by increasing the Building Systems Improvement Project (PF-01003) by $597,250, offset by a transfer from the Electric Fund Operations Reserve in the same amount.

STAKEHOLDER ENGAGEMENT
City staff coordinated closely with Utilities personnel working at the UCC throughout the planning of the Generator Replacement Project. Input from Utilities staff was incorporated to ensure the project minimizes operational disruptions and aligns with facility needs. Staff will continue to coordinate with UCC personnel during construction to maintain safety, access, and continuity of operations.

ENVIRONMENTAL REVIEW
This contract is categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility and no further environmental review is necessary.

ATTACHMENTS
None.

APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
Item 8
Item 8 Staff Report

Item 8: Staff Report
Pg.
3 Packet Pg. 292 of 541

City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 6, 2025
Report #:2508-5035
TITLE
Approval of Amendment No. 2 to Contract Number S23185432 with Koffler Electrical Mechanical Apparatus Repair, Inc. in the Amount of $230,000 for a New Not-to Exceed Amount of $460,000, and Extending the Term through September 29, 2027, for Electric Motors and Submersible Pump Service at the Regional Water Quality Control Plant; CEQA Status – Exempt under Section 15301(b)

RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their designee to execute Amendment No. 2 to Contract S23185432 (Attachment A) with Koffler Electrical Mechanical Apparatus Repair, Inc. in the amount of $230,000 for a new not-to-exceed amount of $460,000 and to extend the term an additional 24 months through September 28, 2027, for electric motor and submersible pump repairs for the Regional Water Quality Control Plant.

BACKGROUND
The Regional Water Quality Control Plant (RWQCP) operates continuously to treat an average of 19 million gallons of wastewater per day for Palo Alto and five partner agencies. Reliable, on- call electric and submersible pump repair services are critical to maintaining uninterrupted operations and meeting state regulatory requirements.

The RWQCP maintains an Electric Motor Service Repair Contract to ensure rapid turnaround for repairs and rebuilding of critical equipment. The original contract (September 29, 2022) was executed with a not-to-exceed amount of $180,000 for essential pump and motor services.1 On April 24, 2024, Amendment No. 1 increased the not-to-exceed amount to $230,000 due to multiple urgent process motor and pump repairs.2 Given the ongoing need for these specialized 1 Koffler Electrical Mechanical Apparatus Repair, Inc. S23185432; https://www.paloalto.gov//files/assets/public/v/1/public-works/rwqcp/contracts/attachment-c-contract-with- koffler-electrical-mechanical-apparatus-repair-inc-general-services-agreement.pdf 2 Koffler Electrical Mechanical Apparatus, Inc. Amendment No. 1 S23185432; Item 9
Item 9 Staff Report

Item 9: Staff Report
Pg.
1 Packet Pg. 293 of 541

Item 9
Item 9 Staff Report

Item 9: Staff Report
Pg.
2 Packet Pg. 294 of 541

services and the aging infrastructure at the RWQCP, staff recommends extending the contract term by two years and increasing the budget to ensure continued operational reliability. The current contractor was the successful proposer in a competitive bidding process, having been awarded the contract as the lowest responsive and responsible bidder among the four firms that submitted proposals for the project.

ANALYSIS
Electric motors and submersible pumps are essential to wastewater conveyance, treatment, and recycled water operations. Failures can disrupt compliance with regulatory discharge requirements and impact the plant’s ability to process incoming wastewater.

The existing contract requires extension through an amendment providing for an additional 24- month term, thereby extending the contract expiration date to September 29, 2027, and increasing the not-to-exceed contract amount by $230,000. The increased contract authority is necessary to ensure adequate funding for urgent pump and motor rebuilding services that may arise during the extended term. The contractor has consistently demonstrated a record of high- quality performance and the ability to execute work with expeditious turnaround.

FISCAL/RESOURCE IMPACT
Funding for the first year of the recommended additional term of the contract is available in the Fiscal Year 2026 Adopted Wastewater Treatment Fund operating budget. The second year’s funding will be subject to Council approval of the annual budget development appropriation.

This expenditure is included in the Wastewater Treatment Fund operating budget and will be supported by revenue contributions from the partner agencies. Palo Alto treats combined wastewater from Palo Alto, Los Altos, Los Altos Hills, Mountain View, Stanford University, and East Palo Alto Sanitary District (partners). Palo Alto’s share of this contract is approximately 37%, and the other five agencies’ share is approximately 63%, based on the volume and strength of wastewater contributions of each partner. Funding in subsequent fiscal years is subject to Council’s approval of each fiscal year’s budget appropriation.

STAKEHOLDER ENGAGEMENT
The RWQCP’s partner agencies, including the City of Palo Alto, are regularly consulted on the need for, and status of, maintenance activities. Additional engagement occurs through the annual budget process, which includes meetings where new and amended contracts are presented along with associated rate impacts. This amendment continues an existing electric motor service repair contract that was procured through a competitive solicitation process.

Item 9
Item 9 Staff Report

Item 9: Staff Report
Pg.
3 Packet Pg. 295 of 541

ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(b) of the CEQA Guidelines as it involves the repair and maintenance of an existing publicly owned utility used to provide sewage treatment services, with no expansion on the existing facility.

ATTACHMENTS
Attachment A: Koffler Electrical Mechanical Apparatus Repair, Inc.; S23185432 Amendment No. 2 APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
Item 9
Item 9 Staff Report

Item 9: Staff Report
Pg.
4 Packet Pg. 296 of 541

Vers.: Aug. 5, 2019