Attachment A
STAFF REPORT
City Council Business Item
DATE: August 7, 2023
TO: Honorable Mayor and Council Members
FROM: Merritt Perry, City Manager
SUBJECT: Professional Services Agreement with California Consulting for Reconnecting Communities Grant for the Kenmar Interchange Improvements
STAFF RECOMMENDATION:
Authorize the City Manager to negotiate and execute a contract with California Consulting, Inc. to complete two Reconnecting Communities Grants for the Kenmar Interchange Improvement in an amount not to exceed $18,000.
BACKGROUND:
The City’s General Plan identified that the Kenmar Interchange would need to be improved to be able to accommodate the traffic generated by the City’s planned growth. Mitigation measures were included in the General Plan Programmatic Environmental Impact Report that call for improving city intersections when financially feasible or as development occurs to maintain the level of service (LOS) at acceptable levels.
It is anticipated with the City’s planned growth that the Kenmar Interchange with Highway 101 will not operate at and acceptable level of service without mitigation. Additionally, there are not bike, or pedestrian facilities that allow crossing of Highway 101 to the Riverwalk Area on the westerly side of Highway 101.
Therefore, the City has been steadily working to identify the improvements needed and develop a plan for improving the interchange. In 2016, the City complete a Complete Streets Connectivity Study that identified improvement alternatives for both the Kenmar/101, and the 12th Street/101 interchanges. A copy of the report can be found at the following link:
https://www.hcaog.net/documents/fortuna-complete-streets-and-connectivity-study The City requested and received $550,000 to complete the preliminary design and environmental documentation phase (PA&ED) of the project in 2018. Caltrans contributed staff time and funding to supplement the project and was an active project partner. The PA&ED phase is essentially complete, and the City adopted the Initial Study/Mitigated - 2 -
Negative Declaration for the project on March 20, 2023. A copy of that document can be found at the following link:
https://cms8.revize.com/revize/fortunaca/Document%20center/Government/Public%20N otices/Community%20Development%20Notices/Kenmar%20101%20Interchange_ISMN D_Appendicies%20Public%20Review%20Draft.pdf
EXECUTIVE SUMMARY:
The future growth of the City is dependent on the 12
th and Kenmar Interchanges with
Highway 101 being improved. Without improvement, future growth of the City will create an unacceptable level of service at those intersections. The City has completed the PA&ED phase for the Kenmar Interchange with Highway 101 and has recently initiated the PA&ED phase for the 12th Street Interchange with Highway 101. It is now time for the City to identify funding for the subsequent phases of work to deliver the Kenmar/Highway 101 Improvement Project including the development of the plans and specifications, acquisition of right of way and construction.
Congress passed the Infrastructure Investment of Jobs Act (IIJA) in 2021 that has directed an unprecedented level of funding for infrastructure projects in excess of $180B over the next 10 years. The IIJA, also known as the “Bipartisan Infrastructure Law,” is a once-ina-generation investment in the nation’s infrastructure and competitiveness. California receives federal infrastructure funding based on formula and competitive grants. Based on formula funding alone, the IIJA will bring California an estimated $41.9 billion over five years. The improvements to the Kenmar/101 Interchange are estimated to cost $25M.
Based on the funding available, now is an important time for the City to pursue grant funds to improve its interchanges with Highway 101. Because Kenmar/101 interchange has completed the environmental analysis it is essentially “shovel ready” and will be more competitive for grant funding. Staff have identified two grant programs funded by the IIJA that the Kenmar/101 Interchange will qualify for that do not require a match (most programs require 50% match).
The two grant programs that the staff would like to pursue are the Federal and State Reconnecting Communities Grant Programs. Each require a separate application and include different requirements. These guidelines for these grants were released at the end of June, and applications are due on September 20th and September 28th respectively.
Currently, we do not have the capacity to complete these grant applications in house and there are few grant writing consultants with the transportation planning and grant writing experience that have the capacity to help the City. The City has identified one consultant, California Consulting, Inc., that has the expertise, and availability necessary to assist the City. California Consulting has provided the attached proposal for assistance. Their proposed fee for grants over $250,000 is between $9,000 and $12,000 depending on the actual effort.
Staff is requesting that the council authorize the City manager to negotiate a contract for up to $18,000 with California Consulting for their assistance. It is likely the actual effort - 3 -
will be less than this amount. If approved, the City Attorney will review the agreement prior to finalization.
FINANCIAL IMPACT:
The proposed cost for the services from California Consulting, Inc. is expected to be up to $18,000. There is currently no budget item for this work in the FY 2023-2024. Staff is requesting that the council approve this expenditure to come from the City’s General Fund, Fund 100. There are adequate General Fund reserves to fund this effort in the City’s General Fund, and for the City to remain in compliance with its adopted reserve policy.
RECOMMENDED COUNCIL ACTION
1. Receive staff report and review questions with staff
2. Open Public Comment
3. Close Public Comment
4. Motion to authorize the City Manager to negotiate and execute an agreement with California Consulting, Inc. to assist the city with two Reconnecting Communities Grants in an amount not to exceed $18,000. Voice vote.
ATTACHMENT:
Attachment A - Draft Agreement with California Consultants, Inc. for Grant Writing Services
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GRANT WRITING SERVICES AGREEMENT
DATED: July 24, 2023
PARTIES: California Consulting, Inc. (hereinafter the “Consultant”); and City of Fortuna, (hereinafter the “Client”)
AGREEMENT:
The undersigned hereby agree to the following terms and conditions:
Section 1. Duties of Consultant: During the term of this Agreement, Consultant shall provide the Client as follows:
a. Grant writing at the direction of the Client on specific grants identified by the Client.
Section 2. Time for Performance of Duties: Notwithstanding any other term or condition of this Agreement, Client specifically acknowledges that Consultant has other clients and/or outside employment. Consultant shall have control over the time and manner of performing its duties described in Section 1, and shall make available such time as it, in its sole discretion, shall deem appropriate for the performance of its duties under this Agreement.
Section 3. Term of the Agreement: The effective date of this Agreement is July 25, 2023 and shall continue on a month to month basis allowing either party to discuss new terms at any time.
Section 4. Compensation: Client shall pay Consultant on a per grant basis as compensation for Consultant’s grant writing services as described in Section 1. Consultant shall provide Client with a written invoice monthly. Client agrees to pay invoice within 30 days of receipt.
The following is a breakdown of cost Per Grant:
Grant Amount Request Cost
Up to $10,000 $1,500
$10,001 - $50,000 $4,000
$50,001 - $100,000 $5,500
$100,001 - $250,000 $7,500
Over $250,000 $9,000 - $12,000
Cost will be determined based on complexity of grant preparation for all grants exceeding $250,000. Consultant will provide Client with cost prior to commencing work on grant selected by Client. If Client decides to withdraw the application or cease work on the application prior to submission and after work has begun, Client agrees to pay Consultant for work completed at an hourly rate of $150.00, not to exceed the total amount of the per grant rate. Consultant will provide Client with breakdown of time spent along with invoice.
Section 5. Expenses: The Client agrees to reimburse the Consultant for reasonable out-of-pocket expenses related to performing services on behalf of the Client. Such expenses typically might include, but are not limited to, mileage, conference calls, copies, binding - 5 -
costs, postage, parking, travel, and lodging expenses. Consultant shall provide Client with a receipt and a description of the expense with the invoice.
Section 6. Relationship: Consultant shall perform its grant writing services hereunder as an independent contractor and not as an employee of the Client or an affiliate thereof.
It is expressly understood and agreed to by the parties hereto that Consultant shall have no authority to act for, represent or bind the Client or any affiliate thereof in any manner, except as may be agreed to expressly by the Client in writing from time to time.
Section 7. Confidentiality: Except in the course of the performance of its duties hereunder, each party agrees that it shall not disclose any trade secrets, know-how, or other proprietary information not in the public domain learned as a result of this Agreement. Similarly, the parties agree that they shall not disclose or divulge this Agreement, or any of its term or conditions to third parties, except as is necessary to perform the terms and conditions stated herein.
Section 8. Indemnification: The Client agrees to indemnify and hold harmless the Consultant, its members, officers, directors, employees, attorneys, and contractors and each person who controls Consultant or any of its affiliates from and against any demands, losses, claims, actions or causes of action, damages, judgment, arbitration awards, liabilities (whether absolute or accrued, contingent or otherwise), costs, and expenses whatsoever (including reasonable costs of investigation or defending any action) to which they or any of them may become subject under any applicable law arising out of Consultant’s performance under this Agreement and will reimburse Consultant for all expenses (including counsel fees) as they are incurred.
Consultant maintains liability insurance in the amount of one million dollars.
Section 9. Assignment: This Agreement shall not be assignable by either party; provided however, that Consultant shall have the discretion to allocate its duties hereunder to owners, affiliates, or employees of Consultant.
Section 10. No Guaranteed Result: Client acknowledges and agrees that Consultant does not have control over third party decision makers, and therefore Consultant makes no representations, warranties or guarantees that it can achieve any particular results. Consultant, however, shall act in good faith toward the performance of its duties described above.
Section 11. Prior Agreements: This Agreement shall supersede any prior agreements between the parties, and serves as the sole and only agreement between them. This Agreement may only be modified by a writing signed by both parties.
Section 12. Governing Law: This Agreement shall be deemed to be a contract made under the laws of the State of California and for all purposes shall be construed in accordance with the laws of said State.
Section 13. Attorney’s Fees: The prevailing party in any action filed that arises out of this Agreement shall be entitled to recoup their reasonable attorney’s fees and costs from the other party.
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Section 14. Notices: All notices will be sent via certified mail or overnight courier to:
Consultant at: California Consulting, Inc.
214 Main Street, Suite 102
El Segundo, CA 90245
Client at: City of Fortuna
621 11th Street
Fortuna, CA 95540
Section 15. Termination: This Agreement may be terminated by either party for any reason not in violation of federal and/or California State law upon thirty (30) days written notice to the other party. Client shall compensate Consultant for all services rendered prior to the date of termination. There shall be no liquidated damages in the event of termination under this provision.
IN WITNESS THEREOF, this Agreement is executed on the dates set forth below and effective on the date first set forth above.
“CONSULTANT” “CLIENT”
California Consulting, Inc. City of Fortuna
By________________________________ ________________________________ Steven N. Samuelian, CEO Name: __________________________ Title: __________________________