AGENDA REPORT
Meeting Date: December 11, 2023
Item Number:
To: Honorable Mayor & City Council
From: Andre Sahakian, AICP, Project Manager
Josephina Lee, Management Analyst
APPROVAL OF A CHANGE PURCHASE ORDER IN THE NOT-TOEXCEED AMOUNT OF $760,046.95 FOR CONSULTING SERVICES Attachments: 1. Agreement
RECOMMENDATION
Staff recommends that the City Council approve Amendment No. 1 to the agreement between the City of Beverly Hills and Rincon Consultants, Inc. and authorize a change purchase order in the not-to-exceed amount of $760,046.95 for preparation of environmental documentation and related consulting services for the proposed 9600 Wilshire Boulevard Specific plan (Saks project). All costs associated with the consulting services will be borne by the project applicant.
INTRODUCTION
The City has received applications from Street-Works Development, HBC ULC and Saks & Company, LLC for a proposed mixed-use development located at 9570-9620 Wilshire Boulevard; 128 S. Bedford Drive; 133 S. Camden Drive; and 120 and 121 S.
Peck Drive. The project site is approximately 3.3 acres in size, and is bounded by Wilshire Boulevard to the north, S. Bedford Drive to the west, S. Camden Drive to the east, and public alleys to the south. The project site would be bisected by south. Peck Drive, which would be included in the proposed Specific Plan area. The project involves comprehensive redevelopment of the site area, including rehabilitation and conversion of the historic Saks Fifth Avenue building into a private club with up to 50 hospitality suites and a spa, totaling up to 127,000 square feet of floor area; a new 7-story office Subject: AMENDMENT NO. 1 TO THE AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND RINCON CONSULTANTS, INC. FOR THE
PREPARATION OF ENVIRONMENTAL DOCUMENTATION AND
RELATED CONSULTING SERVICES FOR THE PROPOSED 9600
WILSHIRE BOULEVARD SPECIFIC PLAN (SAKS PROJECT); AND
Meeting Date: December 11, 2023
building with up to 86,000 square feet of floor area; a new 6-story office building with up to 80,000 square feet of floor area; two new 6-story multi-family residential buildings with a combined total of up to 70 units; subterranean parking; and various public right-of-way improvements on the surrounding streets and alleys (“Proposed Project”). The applicant has requested approval of a new Specific Plan that would authorize development of the Proposed Project and set forth related development and operational standards that would be applicable to the project site.
The requested discretionary entitlements for the Proposed Project include: a General Plan Amendment, Zoning Map and Zone Text Amendments, a Master Plan of Streets Amendment, a Specific Plan, a Vesting Tentative Parcel Map, an Encroachment Permit, and a Development Agreement.
DISCUSSION
Pursuant to the California Environmental Quality Act (CEQA), the Project requires the preparation of an Environmental Impact Report (EIR). On September 20, 2022, the City Council approved an agreement with Rincon Consultants, Inc. to prepare the required environmental documentation for the Proposed Project with Fehr & Peers as a subconsultant to prepare the required transportation analysis for the EIR (“Agreement”).
The Agreement is attached to this report for reference. The original agreement was for a total not-to-exceed amount of $603,994.95, which includes a $78,781.95 contingency.
As work has progressed on preparation of the EIR, the complexity of the Proposed Project has required a greater breadth of analysis than originally anticipated. The Proposed Project includes a request for a Specific Plan that allows for a range of development scenarios. Accompanying this is a request for a Conceptual Plan for a particular development scenario that is currently proposed. However, if the Specific Plan were to be adopted, it would allow for other development scenarios that could potentially result in different environmental impacts. Therefore, rather than studying only the Conceptual Plan that has been put forth as part of the Proposed Project, three distinct project scenarios are now being analyzed in the EIR to adequately study the possible range of impacts that could result from implementation of the Specific Plan.
To complete this expanded analysis of multiple scenarios, and to do so in an expedited manner, requires additional budget. Furthermore, the Agreement included an optional task of making the EIR compliant with Americans with Disabilities Act (“ADA”) standards for online readability and accessibility. Additional budget is required to implement this optional task as well. Finally, while the Agreement included a contingency amount of $78,781.95, this contingency has been exhausted and needs to be replenished. This combined scope of work has been consolidated into Amendment 1 to the Agreement.
Staff is requesting the City Council approve Amendment No. 1 to the Agreement and a purchase order with Rincon Consultants Inc. for a total not-to-exceed amount of $760,046.95 to provide the above-mentioned services. This amendment request adds a supplementary amount of $156,052.00 to the original agreement, including a $70,000.00 contingency. All costs associated with this contract are borne by the Project applicant. Additionally, in order to process the entitlement applications, the applicant has paid deposits to the City totaling $275,000.00 for the City’s legal and staff time costs.
FISCAL IMPACT
All costs associated with the preparation of environmental documents are paid for by the project applicant. No City funds will be used to pay for the services provided in Meeting Date: December 11, 2023
conjunction with this Agreement. The Applicant has deposited the full supplemental amount of the amended contract, as well as the City’s required 15% environmental contract administration fee of $23,407.80.
Michael Forbes, AICP
Director of Community Development
Approved By
Attachment 1
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B0785-0001\2895217v2.doc
AMENDMENT NO. 1 TO AN AGREEMENT BETWEEN THE CITY OF
BEVERLY HILLS AND RINCON CONSULTANTS INC. FOR THE
PREPARATION OF ENVIRONMENTAL DOCUMENTATION AND
RELATED CONSULTING SERVICES FOR THE PROPOSED 9600
WILSHIRE BOULEVARD SPECIFIC PLAN (SAKS PROJECT)
NAME OF CONSULTANT: Rincon Consultants Inc.
RESPONSIBLE PRINCIPAL OF CONSULTANT: Deanna Hansen, Vice President/Principal-inCharge CONSULTANT’S ADDRESS: 180 North Ashwood Avenue
Ventura, CA 93003
Attention: Deanna Hansen
CONSULTANT’S E.I.N./TAX I.D. NO.: 77-0390093
CITY’S ADDRESS: City of Beverly Hills
455 N. Rexford Drive
Beverly Hills, CA 90210
Attention: Michael Forbes, Director of
Community Development
COMMENCEMENT DATE: September 20, 2022
TERMINATION DATE: September 20, 2023, unless extended
pursuant to Section 2 of this Agreement
(original termination date)
September 20, 2024 (as extended pursuant to
Section 2 by letter dated September 28, 2023)
CONSIDERATION: Original Agreement:
Professional Fee: Not to exceed $525,213.00
Contingency: Not to Exceed $78,781.95
Amendment No. 1:
Not to exceed
Professional Fee: an additional $86,052.00
Contingency: an additional $70,000.00
Total Not to Exceed: $760,046.95 and more
fully described in Exhibit B
DocuSign Envelope ID: 5F2109BF-B202-4941-9F6F-96D9A09494D1 B0785-0001\2895217v2.doc
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AMENDMENT NO. 1 TO AN AGREEMENT BETWEEN THE CITY OF
BEVERLY HILLS AND RINCON CONSULTANTS INC. FOR THE
PREPARATION OF ENVIRONMENTAL DOCUMENTATION AND
RELATED CONSULTING SERVICES FOR THE PROPOSED 9600
WILSHIRE BOULEVARD SPECIFIC PLAN (SAKS PROJECT)
This Amendment No. 1 is to that certain Agreement between the City of Beverly Hills (hereinafter called "CITY"), and Rincon Consultants, Inc. (hereinafter called “CONSULTANT”) dated September 20, 2022 and identified as Contract No. 580-22 (“Agreement”).
RECITALS
A. CITY and CONSULTANT entered into a written agreement the preparation of environmental documentation and related consulting services for the proposed 9600 Wilshire Boulevard Specific Plan (Saks Project).
B. CITY and CONSULTANT desire to amend the Agreement to increase the Consideration and update the Scope of Work with additional services.
NOW, THEREFORE, the parties agree as follows:
Section 1. The Consideration shall be amended as set forth on the cover page.
Section 2. Exhibit A-1 “Additional Scope of Work” shall be added to Exhibit A, as attached hereto and incorporated herein.
Section 3. Exhibit B “Schedule of Payment and Rates” shall be amended and restated as attached hereto and incorporated herein.
Section 4. Except as specifically amended by this Amendment No. 1, the remaining provisions of the Agreement shall remain in full force and effect. [SIGNATURES FOLLOW]
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EXECUTED the day of 20___, at Beverly Hills,
California.
CITY OF BEVERLY HILLS
A Municipal Corporation
____________________________
JULIAN A. GOLD, M.D.
Mayor of the City of Beverly Hills, California
ATTEST:
______________________(SEAL)
HUMA AHMED
City Clerk
CONSULTANT: Rincon Consultants Inc.
DEANNA HANSEN
Vice President/Principal
LACRISSA DAVIS
Chief Financial Officer
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
_______________________ ____________________________
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
____________________________
MICHAEL FORBES
Director of Community Development
____________________________
SHARON L’HEUREUX DRESSEL
Risk Manager
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EXHIBIT A-1
ADDITIONAL SCOPE OF WORK
I. ADDITIONAL SERVICES
CONSULTANT shall perform the following additional services:
-Analysis of two new scenarios added to project description and supporting technical studies
-Expedited turnaround for the first and second round draft of Environmental Impact Report -Additional analysis of the draft EIR including non-technical sections and alternatives analysis
-Complete ADA remediation for the main body of the Draft EIR -Complete ADA remediation for reports, memorandums, and letters included in the Draft EIR appendices
-Additional Project Management tasks including regular project check-in meetings and managing an expanded team of staff
-Additional Contingency budget to ensure coverage in changes to project analysis, budget, and/or expanded project management beyond the scope of services described. This contingency will be used with CITY approval.
Task 5: Technical Studies
The air quality and greenhouse gas (GHG) emissions, health risk assessment, and noise and vibration analyses currently being prepared by Rincon will be updated to account for the three development scenarios discussed above. These scenarios will require additional modeling and analysis in the technical sections of the Draft EIR. Models for each scenario, as appropriate, will be developed and the potential air quality, GHG emissions, and noise impacts of each scenario will be addressed. An additional $17,000 is requested across Task 5 to prepare the technical analyses for the three scenarios.
Tasks 6 and 7: Administrative and Second Round Draft EIR Additional analysis will be required throughout the Draft EIR, including the non-technical sections and Alternatives analysis, to ensure thorough evaluation of all scenarios. The additional budget requested to be allocated to Task 6 and Task 7 is illustrated in the table presented under Cost, below. A total of an additional $40,000 is requested to address all three scenarios in the Draft EIR.
Task 9.3: Public Review Draft EIR ADA Compliance
Rincon will complete ADA remediation for the main body of the Draft EIR. This task assumes that the Draft EIR will be between 500 to 700 pages in length. This task is estimated to cost between $1,988 and
$2,840, depending on the length and complexity of the final Draft EIR document.
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Task 9.4: Draft EIR Appendices ADA Compliance
Rincon will complete ADA remediation for reports, memorandums, and letters included in the Draft EIR appendices. This will not include appendices to the appendices (ex., appendices to the project Geotechnical Report) or technical modeling output that provide minimal value to the reader. This task assumes that there will be between 2,000 to 3,000 pages of appendix materials and that the materials will be either Rincon-prepared documents or documents with a logical document template structure. This task is estimated to cost between $8,236 and $12,212, depending on the length and complexity of the Draft EIR Appendices.
Task 13: Project Management
To assist with an expedited project timeline, Deanna Hansen, Principal, will attend the regular project check-in meetings and provide additional support with project management. Additional management time will also be required for internal check-in meetings with project staff to ensure the project timeline is being met and to manage an expanded team of staff. An additional $14,000 of project management budget is requested.
Additional Contingency Budget
An increase in the overall contingency has been included, as directed by the City, to ensure coverage in the event that changes to the project analysis, additional response to comments budget, and/or expanded project management is required beyond the scope of services described in the original proposal and herein. This contingency will not be used without prior discussion with the City as to the reason(s) behind initiating the use of those funds and written approval. An additional $70,000 of contingency funds is requested.
Cost
ADA Compliance
Because the Draft EIR and some of the technical studies are still in progress, the precise number of pages and/or complexity of the documents (e.g., types of headings, tables, etc.) requiring accessibility services is not yet known. This scope and cost estimate provides a range for ease of use. The following table provides the estimated time and cost range for Tasks 9.3 and 9.4 using the intermediate service option, with completion assumed at a rate of 35 pages per hour and an hourly rate of $142.
Table 3 Time and Cost Estimates for Accessibility Remediation Task Estimated
Duration1
Estimate Cost
Range
Task 9.3. EIR (estimated 500-700 pages) 14 hours – 20
hours
$1,988 – $2,840
Task 9.4. Appendices (estimated 2000 - 3000 pages) 58 hours – 86 hours2
$8,236 – $12,212
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Total 72 – 106 hours $10,224 – $15,052
Notes:
1 This is our best estimate based on our current understanding of the documentation. If page numbers are less than shown, or if there is less complexity with the documentation to be made accessible, any remaining funds will be left in the budget. If there are more pages or greater complexity than estimated, a budget amendment may be needed. 2 Assuming most appendices have a logical document template structure, the appendices would fall under the time estimate of 35 pages per hour. If appendices are more complex or have incorrect template structures, additional time and a budget amendment may be required.
Summary Costs ADA Remediation Scope of Work and Further Detailed in Exhibit B Estimated costs $10,224 to $15,052, depending on the number of total pages and complexity of the finalized documents. If page numbers are less than estimated, or if there is less complexity with the documentation to be made accessible, any remaining funds would be left in the budget. If there are more pages or greater complexity of documents than estimated, a budget amendment may be needed in the future.
(a) Additional Analysis for Scenarios and Contingency Fund Additional analysis for the three scenarios estimated at $71,000, with an additional $70,000 of contingency funds.
(b) Total Cost
The current budget is $594,213, with $9,781.95 remaining in the contingency fund. With approval of this Amendment No. 1, the total budget would be $755,218.95 to $760,046.95 with an available contingency fund of $79,781.95.
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B0785-0001\2895217v2.doc
EXHIBIT B
SCHEDULE OF PAYMENT AND RATES
ORIGINAL AGREEMENT:
CITY shall compensate CONSULTANT for the satisfactory performance of the work described in Exhibit A in a total amount not to exceed Five Hundred Twenty-Five Thousand Two Hundred Thirteen Dollars ($525,213.00) including all labor, reimbursable expenses, and taxes at the rates set forth in Attachment 1 to Exhibit B. CITY shall reimburse CONSULTANT for expenses reasonably incurred in the performance of the Agreement.
A Contingency in an amount not to exceed Seventy-Eight Thousand Seven Hundred Eighty-One Dollars and Ninety-Five Cents ($78,781.95) is for additional, unforeseen and unanticipated work outside the Scope of Work described in Exhibit A, and shall not be undertaken without the express direction by the CITY in writing. Compensation for said additional work shall be mutually agreed upon by the parties in writing.
In no event shall the Professional Fee and the Contingency together exceed Six Hundred Three Thousand Nine Hundred Ninety-Four Dollars and Ninety-Five Cents ($603,994.95).
CONSULTANT shall obtain CITY’s approval in writing if the cost of the services will exceed the proposed amount outlined in this Exhibit B.
CONSULTANT shall submit to CITY a detailed invoice, on a monthly basis or less frequently, for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period and the amount due. Within 30 days of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice.
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B0785-0001\2895217v2.doc
ATTACHMENT 1 TO EXHIBIT B
Hours Labor Budget Direct Expenses Total Budget
Task 1: Project Initiation and Data Collection 60.00 11,786.00 0.00 11,786.00 Task 2: Project Description 60.00 11,188.00 0.00 11,188.00 Task 3: NOP & IS 82.00 15,486.00 0.00 15,486.00
Task 4: Scoping Meeting 92.00 20,744.00 0.00 20,744.00
Task 5: Technical Studies 418.00 90,652.00 141,463.00 232,115.00 If Necessary Bat Habitat Assessment and Survey 1 81.00 17,498.00 0.00 17,498.00 Task 6: First Round Draft EIRs 506.00 88,604.00 0.00 88,604.00 Task 7: Second Round Draft EIR 120.00 21,342.00 0.00 21,342.00 Task 8: Final Proof Draft EIR 72.00 13,062.00 0.00 13,062.00 Task 9: Public Review Draft EIR 54.00 9,450.00 0.00 9,450.00 Task 10: Responses to Comments & Final EIR 140.00 28,140.00 0.00 28,140.00 Task 11: Findings & NOD 56.00 10,966.00 0.00 10,966.00
Task 12: Public Hearings 80.00 17,636.00 0.00 17,636.00 Task 13: Project Management 122.00 27,196.00 0.00 27,196.00 Project Total 1,941.00 366,252.00 141,463.00 525,213.00 15-Percent Contingency 78,781.95
Direct Expenses Summary Amount
GPS 65.00
Meals 40.00
Record Search 920.00
Sound Level Field Monitoring Package 440.00
Standard Field Package 110.00
Vehicle Day Rate 88.00
Vehicle, Equipment and Supplies 250.00
Traffic Engineering Subconsultant 139,550.00
Direct Expenses Subtotal 141,463.00
1 This task is identified as an "if necessary" task and will be completed upon authorization of the City Total Cost with Contingency 603,994.95
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B0785-0001\2895217v2.doc
AMENDMENT NO. 1: ADDITIONAL SCOPE OF WORK (EXHIBIT A-1) CITY shall compensate CONSULTANT for the satisfactory performance of the additional services described in Exhibit A-1 in an additional amount not to exceed Eighty-Six Thousand Fifty-Two Dollars ($86,052.00) including all labor, reimbursable expenses, and taxes at the rates set forth in Attachment 2 to Exhibit B. CITY shall reimburse CONSULTANT for expenses reasonably incurred in the performance of the Agreement.
An additional contingency in an amount not to exceed Seventy Thousand Dollars ($70,000.00) is for additional, unforeseen and unanticipated work outside the Scope of Work described in Exhibit A-1, and shall not be undertaken without the express direction by the CITY in writing.
Compensation for said additional work shall be mutually agreed upon by the parties in writing.
In no event shall the Professional Fee and the Contingency together exceed Seven Hundred Sixty Thousand Forty-Six Dollars and Ninety-Five Cents ($760,046.95).
CONSULTANT shall obtain CITY’s approval in writing if the cost of the services will exceed the proposed amount outlined in this Exhibit B. A separate written amendment may be required.
CONSULTANT shall submit to CITY a detailed invoice, on a monthly basis or less frequently, for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period and the amount due. Within 30 days of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice.
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B0785-0001\2895217v2.doc
ATTACHMENT 2 TO EXHIBIT B
DocuSign Envelope ID: 5F2109BF-B202-4941-9F6F-96D9A09494D1 Certificate Of Completion
Envelope Id: 5F2109BFB20249419F6F96D9A09494D1 Status: Sent Subject: Complete with DocuSign: CLEAN - Amendment No. 1 - Rincon Agreement - 9600 Wilshire EIR.pdf Source Envelope:
Document Pages: 10 Signatures: 5 Envelope Originator:
Certificate Pages: 3 Initials: 0 Evelin Welch
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.166
Record Tracking
Status: Original
12/4/2023 2:19:35 PM
Holder: Evelin Welch
[email protected]
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Signer Events Signature Timestamp
Deanna Hansen
[email protected]
Principal
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Lacrissa Davis
[email protected]
Vice President/CFO
Rincon Consultants, Inc.
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Michael Forbes
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Sharon L'Heureux Dressel
[email protected]
Risk Manager
Sharon Dressel
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Deborah R. Hakman
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Cindy Owens
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Policy & Management Analyst
City of Beverly Hills
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