EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: April 4, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Elena Lee, Planning Manager
Amy Chen, Community & Economic Development Director
SUBJECT: Proposed Extension and 2nd Amendment to the Good City Company Master Consulting Agreement for Planning Services
Recommendation
Adopt a resolution:
1. Waiving the formal bid procedures under section 2.84.070(D) of the Municipal Code; and
2. Authorizing the City Manager to execute a second amendment to the current Master Consultant Agreement, in a form approved by the City Attorney, with Good City Company, to:
a. Increase the contract in the amount of $700,000 for a total not-to-exceed amount of $1,450,000.00.
b. Extend term to July 20, 2025, which would include two six (6) month extensions at the sole discretion of the City Manager.
c. Authorize Good City Company to provide consultant services for any project in East Palo Alto, as determined by City staff and consistent with the City’s Developer Reimbursement protocols.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
➢ Promote housing, economic and workforce development
➢ Promote public health and safety
Background
On September 15, 2020, the City Council approved a Master Consulting Agreement (MCA) with the Good City Company (GCC), in an amount not to exceed $500,000, to provide project management and coordination for development proposals within the RBD Specific Plan area1. On July 20, 2021, the City Council approved the first amendment to the GCC MCA to increase the budget by $250,000 for a total of $750,000 to allow for additional planning project management2.
In 2022, GCC also processed two Planning entitlements, both located in the Westside Area: University Circle Phase II and Woodland Park Euclid Improvements projects.
Analysis
GCC is currently processing four large development applications (as listed below in Table 1) and coordinating with Raimi + Associates who are providing analysis, community engagement, and environmental review necessary for the City Council to review the Ravenswood Business District (“RBD”) Specific Plan. In 2022, GCC processed two large projects on the West Side: Woodland Euclid Improvements and University Circle Phase II. Both development projects included Environmental Impact Reports and Development Agreements. Since the West Side projects were more complex, and the four RBD projects are anticipating similar components and requiring intricate coordination, the GCC budget is being expended more quickly than anticipated.
The first GCC amendment was approved due to multiple vacancies in the Planning Division. While new staff have been hired, there is still one vacancy, and it may take several months before the position is filled and the new staff are sufficiently trained. In addition, other consultants under contract for project management services have little capacity to assist the City of East Palo Alto at this time. Staff also expects new applications, both within and outside of the RBD.
Due to the current capacity issues described above, staff recommends formal bidding procedures be waived so that the Good City Company MCA budget be increased to address the anticipated cost increase and also to provide services for additional projects in East Palo Alto, as determined by staff and consistent with the City’s Developer Reimbursement protocols.
The Good City Company will continue to provide senior or principal-level project management and other services including, but are not limited to, the following activities:
1. Application intake and reporting;
2. Consultation with other City departments as needed;
3. Coordinate with Applicants when additional information is required by City Departments and technical consultants;
4. Participate in periodic project coordination meetings;
5. Preliminary project and application review;
6. Formal application review and evaluation for completeness;
7. Analysis of zoning, General Plan, Specific Plans, and Area Plans; 1 Link to staff report:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=None&MeetingID=1283&MediaPositio n=15893.831&ID=1306&CssClass=
2 Link to staff report:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=None&MeetingID=1420&MediaPositio n=95.624&ID=1816&CssClass=
8. Site visits and applicant meetings;
9. Preparation of staff reports for review by advisory bodies, Planning Commission, and City Council as required;
10. Engagement and management of technical consultants for specific tasks or reports;
11. Interfacing with sub-consultants hired through Master Consulting processing for project-specific work;
12. Interfacing with other consultants (as relevant to project);
13. Presentations and/or assistance to City staff with project presentations to the Planning Commission, City Council, or other City hearing bodies as needed;
14. Conduct of scoping, outreach, or public information meetings with City staff; and,
15. Perform related duties and responsibilities as required.
Proposed Budget Amendment: $700,000 (Paid via Developer Pass-Through Agreements)
The City anticipates that the Good City Company will continue to be the project lead for the four RBD projects, and to support these projects, $95,000 will be added to support each. Also with this amendment, $20,000 will be added for the finalization of the Woodland Park entitlement and $300,000 will be available for GCC to process two to three additional development projects in the City of East Palo Alto, for a total increase of $700,000. Developers will be required to pay 100% of the costs associated with the Good City Company contract.
Table 1
Projects Developer Addition to Project
Management Budget
University Circle Phase II Seven Bridges Properties $0
Woodland Euclid Sandhill Properties $20,000
2020 Bay Road Bay Road Holdings, LLC $95,000
The Landing Harvest Properties $95,000
EPA Waterfront Emerson Collective $95,000
Four Corners Sandhill Properties $95,000
New Project TBD $100,000
New Project TBD $100,000
New Project TBD $100,000
TOTAL $700,000
Revised Terms for the Contract
Staff also proposes to extend the contract, which expires July 20, 2023, due to the additional work and projects. The original MCA includes two (2) six (6) month extensions at the sole discretion of the City Manager. Due to the complexity of the RBD projects and the proposal for additional services, staff also proposes to extend the term for two years to July 20, 2025 and include two (2) six (6) month extensions at the sole discretion of the City Manager. The RBD Specific Plan Update is anticipated to be completed at the end of 2023 and three of the RBD development projects cannot be approved until after the RBD is amended.
If approved, the following terms in bold text will be amended in the existing MCA.
Please see executed MCA attached for reference.
Table 2
Consultant Service
Up to
Contract
Amount
Proposed
Term Extensions
The Good City
Company
Project Management
for proposals in the
City of East Palo Alto
$1,450,000
July 2023
to July
2025
Two (2) six (6) month
extensions at the
sole discretion of the
City Manager
Fiscal Impact
There is no fiscal impact associated with this report. A developer reimbursement agreement (DRAs) will be set up among each project to cover Good City Company costs and the DRA’s will also include a 10% rate charged to the project to cover City staff overhead.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo Co. Library located at 2415 University Avenue, East Palo Alto.
Environmental
The proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. Resolution
2. Good City Company Master Consultant Agreement
3. Good City Company MCA First Amendment