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ATTACHMENT 1 PROFESSIONAL SERVICES AGREEMENT — Recycled Water Feasibility Study— This Professional Services Agreement ("Agreement") is entered into this 6`" day of December 2011, between the City of Pleasanton, a municipal corporation ("City"), and Carollo Engineers, a corporation whose address is 2700 Ygnacio Valley Road, Walnut Creek, CA 94598, and telephone number is 925-932-1710, ("Consultant"). RECITALS A. Consultant is qualified to and experienced in providing a recycled water feasibility study involving: 1) a market analysis that quantifies supply and demand and identifies customer incentives, 2) a facility analysis to evaluate scenario models consisting of various facility types, site locations and sizing options to meet projected demands, and considering the integration of energy-efficient and renewable energy technologies, 3) an economic analysis that develops cost estimates, potential pricing and identifies potential funding sources, 4) an institutional analysis that evaluates opportunities and barriers, including applicable statutory requirements and obstacles, 5) an environmental analysis that evaluates potentially significant environmental impacts, and 6) an analysis of water supply alternatives to recycled water, 7) report generation, and 8) project management. B. City finds it necessary and advisable to use the services of the Consultant for the purposes provided in this Agreement. NOW THEREFORE, in consideration of the mutual covenants and conditions in this Agreement, City and Consultant agree as follows: 1. Consultant's Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in Exhibit A. Consultant shall provide said services at that time, place and in the manner specified in Exhibit A. 2. City Assistance. Except as set forth in Exhibit A, Consultant shall, at its sole cost and expense, furnish all facilities and equipment that may be required for furnishing services pursuant to this Agreement. City shall furnish to Consultant only the information listed in Exhibit B according to the terms and conditions set forth in Exhibit B, which Consultant shall be entitled to use and rely upon in the performance of the services required under this Agreement. If needed, City shall provide Consultant contact information to allow Consultant to arrange for access to enter upon public and private property as required for Consultant to perform services hereunder. 3. Terms. This Agreement shall commence on the date written above and shall expire on December 31, 2013. 4. Compensation. City shall pay Consultant for services rendered pursuant to this Agreement as described more particularly in Exhibit A. The payments shall be made on a monthly basis upon receipt and approval of Consultant's invoice. Total compensation for services and reimbursement for costs shall not exceed $287,280. Page 1 of 6