CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Jonathan Orduna, Community Development Director
DATE: March 15, 2022
SUBJECT: Approval of Amendment No. 2 to the Professional Services Agreement with PlaceWorks, Inc. for Environmental Consulting Services for the City Center Mixed-Use Project
RECOMMENDATION
Staff recommends that the City Council:
1. Approve Amendment No. 2 to the Professional Services Agreement with PlaceWorks, Inc. to provide additional environmental consulting services for the City Center Mixed-Use Project for a total not to exceed amount of $46,255;
2. Recognize Planning (Department 21) Professional Services Revenue of $46,255 and appropriate $46,255 to the Planning (Department 21) Professional Services Expenditure Account for Fiscal Year 2021-2022; and
3. Authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement between the City and PlaceWorks, Inc., subject to the City Attorney making non-substantive changes, upon receipt of payment from the applicant to cover the cost of the Amendment.
BACKGROUND & ANALYSIS
On June 18, 2019, the City Council approved a Professional Services Agreement (PSA) with PlaceWorks, Inc. for environmental consulting services related to the City Center Mixed-Use Project (General Plan Amendment GPA 19-01, Zoning Code Amendment ZCA 19-01, Zone Change ZC 19-01, Site Development Permit SDP 19-03 & Vesting Tentative Tract Map TTM 19024) proposed by Laguna Niguel Town Center Partners, LLC (applicant). The scope of work included analysis of the project under the California Environmental Quality Act (CEQA) and preparation of an Environmental Impact Report (EIR). The cost for the proposed work, which was funded by the applicant, was not to exceed $154,267.
On March 17, 2020, at the applicant's request, City staff suspended the processing of the mixed-use project due to the ongoing COVID-19 pandemic. On May 26, 2021, the applicant resubmitted project plans and review of the mixed-use project restarted. As work resumed, PlaceWorks, Inc. had determined updates to the CEQA technical studies drafted to date were needed due to the suspension of the project for over a year. PlaceWorks, Inc. proposed providing these additional CEQA consulting services for a total not to exceed amount of $67,042 (funded by the applicant). On September 7, 2021, the City Council approved Amendment No. 1 to the PSA with PlaceWorks, Inc. to provide these environmental consulting services.
On February 17, 2022, PlaceWorks, Inc. proposed providing revised CEQA analysis and additional project management and meetings to account for project revisions for a total not to exceed amount of $46,255, which would be funded by the applicant. The total cost of services would be extended from $221,309 to $267,564 to complete the additional services.
PlaceWorks, Inc. has the capability and experience to perform all remaining work items and has extensive involvement and knowledge of the proposed project. Staff recommends approval of Amendment No. 2 to the PSA with PlaceWorks, Inc. for a total not to exceed amount of $46,255 (Attachment "A"). The applicant is aware of the proposal and is in support of the recommendation.
ALTERNATIVES CONSIDERED
The City Council may decide not to approve Amendment No. 2 to the PSA with PlaceWorks, Inc. and direct City staff to issue a Request for Proposal to other environmental consultants to prepare the required CEQA technical studies and EIR. This alternative is not recommended as it would likely result in substantial delays, cost, and would not be expected to yield a superior work product.
FISCAL REVIEW
Associated expenses for PlaceWorks, Inc. services would be offset by an equal amount of revenue deposited by the applicant. The City Council requested budget appropriation of $46.255 for Fiscal Year 2021-22 would be offset by an equal amount of revenue received from the applicant prior to final execution of the Amendment.
LEGAL REVIEW
The City Attorney has reviewed and approved the Agreement and this staff report as to form.
CONCLUSION
Staff recommends that the City Council:
1. Approve Amendment No. 2 to the Professional Services Agreement with PlaceWorks, Inc. to provide additional environmental consulting services for the City Center Mixed-Use Project for a total not to exceed amount of $46,255;
2. Recognize Planning (Department 21) Professional Services Revenue of $46,255 and appropriate $46,255 to the Planning (Department 21) Professional Services Expenditure Account for Fiscal Year 2021-2022; and
3. Authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement between the City and Placeworks, Inc., subject to the City Attorney making non-substantive changes, upon receipt of payment from the applicant to cover the cost of the Amendment.
Jamaal Retonsean Perri I. Emis
Tamara S. Letourneau Kevin G. Ennis
City Manager City Attorney
Halle
Jonathan Orduna John Morgan
Community Development Director Development Services Manager Hannah Tamaddon
Administrative Secretary
Attachment:
A. Amendment No. 2 to the Professional Services Agreement with PlaceWorks, Inc.
ATTACHMENT A
Amendment No. 2 to the Professional Services Agreement
with PlaceWorks, Inc.
AMENDMENT NO. 2 TO AGREEMENT FOR PROFESSIONAL SERVICES
PlaceWorks, Inc.
THIS AMENDMENT NO. 2 TO THE AGREEMENT ("Agreement") for Professional Services is made and entered into on
City of Laguna Niguel, a municipal corporation, hereinafter the "City", and PlaceWorks, Inc., a California corporation, hereinafter the "Consultant".
RECIIALS:
1. Original Contract
A. The City required the services of a qualified environmental consultant to prepare technical studies and environmental documents, including an Environmental Impact Report to comply with the California Environmental Quality Act (CEQA) for a proposed mixed-use development project located at the former South County Justice Center.
B. The Consultant submitted a proposal to the City to provide the required services, dated June 10, 2019.
C. The City entered into a Professional Services Agreement with the Consultant on June 18, 2019, ("Agreement") to provide professional services as requested by the City for an amount not to exceed $154,267.
2. Amendment No. 1
A. On September 7, 2021, the City entered into Amendment No. 1 to the Agreement (Amendment No. 1) with the Consultant to provide updates to the CEQA technical studies and updates to the drafted documents following unforeseen delays related to the COVID-19 pandemic. With Amendment No. 1, the total cost of services would increase from $154,267 to $221,309 to complete the Environmental Impact Report.
B. The City entered into Amendment No. 1 to the Agreement with the Consultant to perform the requested services and to increase the amount of compensation by $67,042 for a new total of $221,309.
3. Amendment No. 2
A. The City now desires to enter into Amendment No. 2 to the Agreement ("Amendment No. 2") with the Consultant to provide further revised CEQA analysis and additional project management and meetings due to project revisions, as identified in Exhibit A-2 in the amount not to exceed $46,255. With the approval of this Amendment No. 2, the total cost of services would increase from $221,309 to $267,564 to complete the additional services.
AGREEMENI:
NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises and covenants herein contained, the parties hereto agree as follows:
1. Services to be Performed by Consultant. Consultant agrees to perform the additional professional services for City and to prepare and deliver the work products to City, in a manner satisfactory to City, as described in Consultant's proposal dated February 11, 2022, ("Proposal") which is attached hereto as Exhibit "A-2".
2. Additional or Different Services. Any proposed changes in the Proposal (Exhibit "A- 2) shall be made only by written amendment to this Amendment No. 2 to the Agreement.
3. Term. This Amendment No. 2 shall become effective on the date stated above and will continue in effect until the work required by this Amendment No. 2 is completed, subject to termination as provided in paragraph 27 except the indemnification provisions contained in paragraph 18 shall remain in full force and effect after the Agreement is terminated.
4. Payment for Services. City agrees to pay Consultant for providing the professional services which are described in Exhibit "A-2", and to pay for those services in the amount and in the manner and at the times set forth in Exhibit "A-2" in an amount not to exceed $46,255 for a new total not to exceed amount of $267,564. Consultant shall invoice City monthly on a time and materials basis. City shall pay all proper invoices within thirty (30) days of receipt. Should City wish to dispute an invoice, it must do so in writing within twenty (20) days of receipt. Otherwise, invoices shall be deemed accurate and payable according to the terms thereof.
5. Continuation of Terms and Conditions of the Agreement. Except as otherwise expressly provided in this Amendment No. 2, all terms and conditions of the Agreement shall remain in full force and effect and shall apply to the performance of services pursuant to this Amendment No. 2.
6. Authority to Sign. The persons executing this Amendment No. 2 on behalf of Consultant warrants and represents that they have the authority to execute this Amendment No. 2 on behalf of Consultant and have the authority to bind Consultant to the performance of the obligations hereunder.
/lI
2 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 as of the date first above written.
"CITY"
CITY OF LAGUNA NIGUEL
BY Tamara S. Letoumeau
City Manager
ATTEST:
Thy Merritt,
Acting City Clerk
APPROVED AS TO FORM BY THE
CITY ATTORNEY FOR THE
CITY OF LAGUNA NIGUEL,
CALIFORNIA
Kevin G. Ennis, Esq.
City Attorney
"CONSULTANT"
PLACEWORKS, INC.
Print Name:
Title:
3 EXHIBIT "A-2"
PROPOSAL
4 3 PLACEWORKS
February 11, 2022 (updated February 27, 2022)
John Morgan
Development Services Manager
City of Laguna Niguel
30111 Crown Valley Parkway
Laguna Niguel, CA 92677
Subject: Request for Contract Amendment No. 2 for the Laguna Niguel City Center Mixed Use Project Environmental Impact Report (LAG-08.0) (Former project name as included in original contract was Laguna Niguel Town Center)
Dear Mr. Morgan:
This contract amendment request is to cover work beyond our approved contract with the City dated June 18, 2019, as amended by Contract Amendment No. 1 (proposed July 19, 2021, and executed September 7, 2021) for the preparation and processing of the Laguna Niguel City Center Mixed Use Project Environmental Impact Report (EIR). Specific tasks requiring additional fees are detailed under Scope of Work.
Specifically, this amendment requests additional fees for:
» Revising EIR sections to reflect new construction scheduling and updated quantified analysis and modeling where applicable (air quality, GHG, noise, utilities).
» Providing data regarding air quality/GHG modeling and addressing project-site construction revisions. » Updating the noise analysis per the updated City of Laguna Niguel CEQA Manual thresholds and methodology provided on February 7, 2022
» Additional project management efforts due to an extended project schedule. » Additional coordination and meeting attendance/participation.
This amendment also requests fee transfers between tasks, particularly for preparation of the Phase 1 Environmental Site Assessment (included in PlaceWorks' scope of work but prepared by applicant team) as well as some completed tasks with remaining budget.
Scope of Work
The following scope of work details the additional work to be covered in this contract amendment and some requested fee transfers between tasks. The scope is organized per the tasks in our original approved contract with the City dated June 18, 2019, as amended September 7, 2021.
TASK 1 PROJECT DESCRIPTION
This task included updating the previously complete EIR project description. It included updating the site plan, project objectives, characteristics, and construction detail and scheduling. No changes are proposed to this task.
3 MacArthur Place, Suite 1100 | Santa Ana, California 92707 | 714.966.9220 | PlaceWorks.com 83 PLACEWORKS
TASK 2 NOTICE OF PREPARATION AND SCOPING MEETING
Task completed. The NOP was released on November 1, 2019, and the public scoping meeting was held on November 13, 2019. No changes are proposed to this task.
TASK 3 DRAFT EIR
This task is in progress, and the scope of work has been modified to account for the following out-of-scope Work:
» Update the aesthetics section to reflect the revised building renderings and architectural details.
PlaceWorks updated the aesthetics section based on the renderings received from the client on July 1, 2021. However, based on the team call on December 7, 2021, new renderings that address City comments will be provided to PlaceWorks. Therefore, PlaceWorks will ensure the aesthetics section is consistent with the updated renderings.
» Modify topical EIR sections to reflect the revised project data in the updated technical reports. The completed utilities and service systems EIR section requires recalculation of water, wastewater, and solid waste numbers in addition to coordinating with the City to attain adequate confirmation from the water district about the project's water supply assessment. » Assess the approach and technical updates needed for the utilities and service systems, hydrology and water quality, and geology and soils discussions to address the revised project description. This was needed to ensure consistency between the CEQA analysis and technical studies that were not prepared by PlaceWorks when we updated already-completed sections. Its purpose was to ensure a defensible EIR with no discrepancies in the analyses because of the new land use statistics. » Update the geology and soils EIR section (submitted to the City March 13, 2020) in accordance with the Geotechnical Review Sheet (prepared October 8, 2021) and the updated Geotechnical Evaluation Report for CEQA (updated August 13, 2021).
» Update the completed hydrology and water quality section per the Conceptual Hydrology Study (prepared September 2, 2021), the Water Quality Management Plan (prepared August 18, 2021), and the updated Geotechnical Evaluation Report for CEQA (updated August 13, 2021). » Update the completed utilities and service systems' Existing Conditions and Regulatory Setting sections to reflect updated regional/local plans and conditions (2020 UWMP, updated Gas Report, 2019 Green Building Code, etc.).
» Incorporate updated noise analysis (see details under Task 7) including EIR discussion regarding the City's CEQA Manual Update.
The approved original contract as amended includes the evaluation of up to four alternatives, including two No Project scenarios. Based on the meeting on June 15, 2021, the EIR will include analyses of four alternatives that are consistent with the approved contract (no additional fees are requested for this task):
» Alternative 1: No Project-No Development
» Alternative 2: No Project-Development Under Existing General Plan Land Use and Zoning Designation » Alternative 3: High-Density Residential Development Only » Alternative 4: Reduced Development Alternative Reduced Commercial February 17, 2022 | Page 2
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TASK 4 FINAL EIR AND RESPONSE TO COMMENTS
This task has not been initiated, and the scope of work has not been modified since the original approved scope of work.
TASK 5 CITY STAFF COORDINATION AND PUBLIC HEARINGS
Our original contract included attendance at four coordination meetings. Contract Amendment No. 1 detailed the dates for our previous attendance at four meeting as of that amendment and assumed PlaceWorks' attendance and participation at four additional meetings (or conference calls) estimated at two hours/meeting. Starting in October, the City and applicant requested PlaceWorks' participation in weekly team meetings. As of December 31, 2021, PlaceWorks has attended the following coordination meetings with the City and applicant:
» 7/21/2021 Team meeting with City and Applicant team
» 8/12/2021 Team meeting with City and Applicant team
» 9/10/2021 Team meeting with City and Applicant team
» 10/5/21 through 1/18/22 (excluding 12/28/21) Weekly meetings (total 12 meetings through December 2021)
All of the additional meetings have been virtual (Zoom) meetings and with few exceptions have only lasted 30 to 45 minutes (with minor preparation). Both our Project Manager (JoAnn Hadfield) and Assistant Project Manager (Arabesque Said-Abdelwahed) have attended these meetings (with a couple of exceptions).
Additionally, our Air Quality/GHG Principal and technical associate attended one meeting to discuss air quality methodology.
The estimated amendment for this task includes the additional meetings attended in 2021 and weekly meetings in 2022 up until release of the Draft EIR for public review. After distribution of the Draft EIR, PlaceWorks will participate in up to three, one-hour, meetings to review and discuss comments received.
Our cost estimate assumes the participation of JoAnn and Arabesque at meetings through February 2022 and for the response to comments coordination meetings. Only JoAnn will attend the March 2022 meetings prior to Draft EIR release. The total cost estimate for this task, therefore, includes the budget exceeded for this task in 2021 ($1,040) plus JoAnn and Arabesque's participation in 8 weekly meetings (0.75 hour/meeting) between January and February 2022, attendance by JoAnn only at two March 2022 meetings, and up to three focused meetings to discuss comments received on the Draft EIR (1 hour/meeting).
Our contract includes attendance at up to 5 public hearings. We have not changed the assumption or budget for public hearing attendance.
TASK 6 PROJECT MANAGEMENT
The estimated project management effort in our original contract was based on a start date of late June 2019 and estimated project approval by May 2020; a total project duration of 10 months. The project was dormant for an entire year, from March 2020 until it resumed at the re-kickoff meeting on March 24, 2021. The estimated project management effort in our Contract Amendment No. 1 was based on an anticipated project approval in March 2022. Based on the current project schedule, the Draft EIR will be released for public review in February 2022 (or early March 2022), and project approval is anticipated in June/July 2022. This contract amendment includes project management fees for an additional four months. As with previous estimates for this task, the estimate for 10 weeks is based on 1.5 hours/week for JoAnn and 1 hour/week for 1 It is assumed PlaceWorks will not attend weekly status meetings during the public review period.
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Arabesque for project management/coordination tasks. For an approximate 6 weeks during the Draft EIR public review period, the estimate is based one half this effort per week (.75/hours/week for JoAnn and .5 hours per week for Arabesque).
TASK 7 PLACEWORKS IN-HOUSE TECHNICAL STUDIES
Air Quality/GHG
PlaceWorks' Contract Amendment No. 1 covered time for PlaceWorks to update long-term criteria air pollutant and GHG emissions based on refined operational project characteristics and updated trip generation information from LLG. The project required remodeling since a new model (CalEEMod 2020) was released on June 1, 2021, that replaced the EMFAC 2016 model previously used to estimate construction and operational emissions.
This second amendment covers remodeling primarily related to updated construction phasing detail. It also includes back-and-forth coordination to determine the project changes, potential construction phase overlap, and conditions required to avoid a significant construction-related impact for air quality. This refinement included the assessment of peak daily truck trips for import/export material hauling. And finally, the cost estimate covers the effort to update the previously completed EIR air quality section.
Noise and Vibration Analysis
Our original noise analysis relied on the FTA standard (80 DBA Leg maximum) for construction impact significance and the City's Municipal Code for acceptable noise levels for stationary sources (dBA).
Subsequently, we updated the analysis to comply with the methodology and standards adopted in the City's CEQA Manual (June 2021) including CNEL analysis for operational impacts. This amendment includes the fees for that update as well as the effort required to update the noise analysis and EIR section for consistency with the February 7, 2022 City CEQA Manual update for noise analysis.
Completed Scope of Work for Consistency with the June 2021 City of Laguna Niguel CEQA Manual Construction Impacts. PlaceWorks updated the construction noise modeling to address the new City of Laguna Niguel CEQA Manual and to reflect the latest equipment mix and construction durations.
During the preparation of the noise analysis in early 2021, the City did not have construction noise thresholds or vibration thresholds. The Federal Transit Authority (FTA) criterion of 80 dBA Leq was used for construction noise, and FTA vibration damage criteria were used (0.2 in/sec PPV and 0.3 in/sec PPV). The City of Laguna Niguel adopted its CEQA Manual in June 2021. According to that CEQA Manual, construction noise would have an impact if construction activities that last more than 10 days in a three-month period would increase the ambient by:
» 10 dBA or more at noise-sensitive areas exposed to baseline noise levels lower than 60 dBA hourly Leq, » 5 dBA or more at noise-sensitive areas exposed to a baseline noise level of 60 dBA hourly Leq or higher.
The June 2021 CEQA Manual adopted construction vibration annoyance thresholds (72 VdB for frequent vibration events at residential uses) in addition to vibration damage. Therefore, PlaceWorks conducted a construction vibration annoyance analysis. The EIR noise section was updated to reflect the revised analysis.
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Stationary/Operational Impacts. The noise modeling for operational stationary noise sources, prepared prior to the adoption of the CEQA Manual, used the exterior noise standards in Section 6-6-5 of the Laguna Niguel Municipal Code, with the statistical descriptors of L50, L25, L8, L2, and Lmax. The standards are different than those in the municipal code, and the statistical descriptor in the CEQA Manual is CNEL (Community Noise Equivalent Level), a 24-hour, weighted-average level. PlaceWorks reevaluated stationary noise sources using the Laguna Niguel CEQA Manual standards and guidelines.
Also, the site plans provided in early 2021 did not show a trash enclosure. The trash enclosure was added to the current site plan, and PlaceWorks adjusted the stationary noise analysis for the trash enclosure.
Additional Scope of Work Required to Comply with Updated February 2022 CEQA Manual Update Construction Impacts. PlaceWorks will update the noise section to reflect the February 2022 CEQA Manual noise thresholds/methodology. Although remodeling will not be required to evaluate the FTA standard, the previous analysis will have to be reviewed/validated for project construction detail that was updated subsequent to the original analysis. The conclusions of the analysis conducted in 2020 (using the 80 dBA Leq FTA threshold) will be substantiated and the Draft EIR noise section will be updated accordingly to reflect the new 2022 CEQA Manual thresholds. Similarly for construction vibration, it as assumes that no new information will be presented that will result in remodeling.
Stationary/Operational Impacts. The noise analysis will be updated to reflect the February 2022 CEQA Manual methodology and thresholds. The analysis will reflect the allowable, exterior noise levels relating to project mobile and stationary sources. The update will also address the trash enclosure and truck deliveries to the project site. If detailed truck delivery information is not available from the client, our team will provide a conservative analysis of this potential noise impact based on delivery frequency and location assumptions.
Our scope of work does not include an assessment of compliance with interior noise sources for the project itself or for the potential impact on surrounding land uses. The assessment of noise impact to surrounding receptors will be based on compliance with exterior noise levels and compliance with onsite noise levels for interiors is not a CEQA issue. If additional analyses are requested for the potential project impact to interior spaces for surrounding land uses, we will provide a cost estimate for the work. PlaceWorks will update the Noise section of the EIR with the updated threshold/methodology references, and updated analysis and findings.
Phase I Environmental Site Assessment
PlaceWorks did not prepare a Phase I Environmental Site Assessment because the Applicant provided the Phase I ESA. To accommodate costs associated with the preparation of the Draft EIR, PlaceWorks requests that funds from Task 7, PlaceWorks In-House Technical Studies, be reallocated to Task 3, Draft EIR.
TASK 8 SUBCONSULTANTS' TECHNICAL STUDIES
Biological Technical Report: VCS Environmental
The biological resources technical letter report was completed on August 15, 2019. Based on the comments received from the City on September 13, 2021, VCS Environmental revised the biological resources technical letter report with an updated review of the California Natural Diversity Database and responded to City comments.
Cultural Resources: Cogstone
Task completed. The SB 18/AB 52 consultation assistance was completed in 2020.
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CONTINGENCY
This contingency cost would cover unforeseen conditions that may arise during the period of performance (e.g., unanticipated increase in level of comments on the Draft EIR). The contingency cost is equivalent to 15% of the cost shown for this Contract Amendment No. 2.
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Cost Estimate
Table 1 summarizes our requested contract amendment in the total amount of $42,524 Table 1. Contract Summary Table
Original Requested Requested Total Contract w/
Contract Approved Contract Amenoment No. 2 Rest bution Requester Task/Subtask Description (06/18/19) Amendment No. 1 Amendment No.
Task 1. Project Description
$3,162| $3,876 $0 $7,038
Task 2 Notice of Preparation and Scoping Meeting
3,509 $0 3,509
Task 3 Draft EIR
67,790 16,225 8,705 6,625 99,345
Task 4 Final EIR
14,851 0 14,851
Task 5 City Staff Coordination & Public Hearings
7,507 7,048 5,370|| 19,925
Task 6 Project Management and Administration
14,851| 23,052 7,085 44,988
Task 7 PlaceWorks In-House Technical Studies
Air Quality/GHG Analysis 13,541 6,260 4,881 24,682
Phase 1 Site Assessment 6,625 (6,625)
Noise and Vibration 13,280 1,836 12,466 27,582
Task 8. Subconsultants Technical Studies
Biological Resources, VCS 1,650 1,715 3,365
Environmental
Cultural Resources, Cogstone 825 0 825
Total Labor $147,591 $58,297 $40,222 $246,1100
Contingency (@15%) $8,745 6,033 $14,778
Reimbursables $6,676 0 $6,676
GRAND TOTAL $154,267 $67,042 $46,255 $267,564
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We appreciate your consideration of this requested contract amendment. Please let us know if you need additional information to assist you in expediting this request. Thank you.
Sincerely,
PLACEWORKS
JoAnn C. Hadfield
Principal, Environmental Services
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