1 STAFF REPORT
DATE: October 15, 2024
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Department Director BY: Simone McFarland, Asst. Director Community Development
SUBJECT: Approval of a Second Amendment to the Professional Services Agreement with Kadre Architects to Complete the D esign, and Provide Construction Support for 211, 233, and 333 South Front Street and 10 E ast Verdugo Avenue for Use as the City’s Homeless Solutions Center
RECOMMENDATION
Approve a second contract amendment to the Professional Services Agreement (PSA) with Kadre Architects (Attachment 1) in the amount of $690,438 to perform architectural and engineering services needed to complete entitlements and construction architectural and engineering improvements at 211, 233, and 333 S. Front Street and 10 E. Verdugo Avenue for use as the City’s Homeless Solutions Center.
BACKGROUND
On April 9, 2024, Council approved the development of a Homeless Solutions Center adjacent to the existing SAFE homeless storage facility, including the former Hollywood Piano store building and a portion of the Metrolink parking lot located at 211, 233, and 333 S. Front Street and 10 E. Verdugo Avenue (Project). Kadre Architects was retained for the Project on March 1, 2023 , via a Request for Proposals process to develop initial site layouts. A first amendment, dated March 1, 2024 (Attachment 2), further refined the Homeless Solutions Center site plan and renderings . A second amendment is now required for architectural and engineering services to address several easements and building limitations on the property. This second amendment is critical to finalizing the bid package/design and providing construction support for the Project.
The Project is in alignment with the City’s five-year (2022- 2027) Homelessness Plan (Plan) approved by Council in December 2022. There are two strategies in the Plan that
COMMUNITY
DEVELOPMENT
2 relate to the potential development of a Homeless Solution Center. The first, Strategy 3, discusses the need to create a shelter and housing accessibility. The second, Strategy 4, Goal 4.3, discusses the addition of spaces allocated for a Safe Parking Program. Both strategies would be implemented in the Homeless Services Center.
DISCUSSION
A second contract amendment to the PSA with Kadre Architects is needed for architectural services and an engineering contract that will reflect increased scope and facility design changes which are required due to several easements and building constraints on the propert y. These developments have required that the design be reversed, placing the housing suites within the Metrolink parking lot and the SAFE parking to the south side of the building closer to the existing SAFE storage. This change is required due to significant utility infrastructure underneath the south parking lot, including sewer, water, gas, and storm drainage.
Revisions were also made to the type and number of housing units. The proposed 52 units are single-occupancy housing suites which include their own bathroom and shower.
Enhancements were added within the existing building that include tenant improvements, structural modifications, roofing, and waterproofing repairs. The needed improvements were identified after the initial design and are included within this amendment .
Additionally, staff is working to ensure that the Project remains in compliance with building and safety codes once the Emergency Shelter Declaration (Council-approved) ends in December 2026. Lastly, construction management costs have increased due to the greater complexity of the project. The revised design and construction documents will include:
• 52 single-occupancy units with showers and bathrooms
• 17 SAFE parking spaces for overnight parking
• SAFE storage
• Landscaping and security fencing
• Tenant improvements within the building allowing for:
o Intake of residents
o Meeting/Training rooms
o Food storage (meals will be prepared offsite)
o 24-hour security
o Laundry
o Wrap-around services including help with accessing social services and housing navigation
3 In the future, additional services may be added such as medical services, addiction counseling, and mental health services. Once the final site design of the property has been received, staff will return to Council requesting additional feedback.
COMMUNITY OUTREACH
Community outreach meetings regarding the Project are tentatively planned to take place in early 2025, once schematic designs are completed.
ENVIRONMENTAL REVIEW
Approval of this amendment is not a project under the California Environmental Quality Act (CEQA) under CEQA Guidelines §15378, which excludes , “The creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.” This amendment is for design and construction administration services only. At a later date, construction activities will require individual National Environmental Policy Act (NEPA) review.
FISCAL IMPACT
The additional projected cost for the design phase of the Project, including a 5% contingency, is $690,438. Sufficient funds in the amount of $200,277 are available in project account 001.CD23A.62170.0000.23990 (General Fund, Community Development Affordable Housing, Private Contractual Services, HCD Permanent Local Housing Allocation Grant). Additional funds are also available in project accounts 370.CD25A.70019.0000.24970 (General City Capital Projects, Community Development Grants, Building Improvements, Homeless Solutions Center) in the amount of $490,161.50.
The revised total cost for the Project will be $1,248,902 for the contract period to extend to January 31, 2027. The project has an estimated completion date of December 2026.
Below are the details.
Term
Original Commencement Date: March 1, 2023
Original Completion Date: February 28, 2024
First Amendment Completion Date: February 28, 2025 Second Amendment Completion Date: January 31, 2027
4 Cost of Service
Original Cost of Service: $139,980 First Amendment to Cost of Service: +$418,484
Revised Cost of Service: $558,464 Second Amendment to Cost of Service: +$690,438
Revised Cost of Service $1,248,902
CONCLUSION
The Homeless Solutions Center will provide critical services and resources to those in need within the community. This amendment is essential to finalizing entitlements, the bid package/ design, and construction support for the Project to ensure timely development. Staff recommends Council approve the second amendment to the PSA with Kadre Architects in the amount of $690,438, to be funded from the approved project budget account. Staff will present the design changes to Council at the beginning of 2025.
ATTACHMENTS
Attachment 1 – Second Amendment to Professional Services Agreement Attachment 2 – First Amendment to Professional Services Agreement Attachment 3 – Professional Services Agreement