To:
CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
Honorable Mayor and Council Members
FROM: Kevin X. O'Connor , Acting Public Works Director
August 18, 2026 DATE:
SUBJECT: Approval of Amendment No. 2 to the Professional Services Agreement with GHD, Inc. for the South Forbes Road/Oso Creek Trail Active Transportation Enhancements , Cash Contract No. 24-12
RECOMMENDATION
Staff recommends that the City Council:
1. Award Amendment No. 2 to the Professional Services Agreement with GHD, Inc., to provide final engineering design services for the Plans, Specifications , and Estimates Phase of the South Forbes Road/Oso Creek Trail Active Transportation Enhancements , Cash Contract No. 24-12, with a base fee of $426,044;
2. Approve a not-to- exceed 10% contingency to the base fee for Amendment No. 2 in the amount of $42,604 for unforeseen conditions or extra work, and authorize the Public Works Director to approve additional work, for a total not-to exceed Amendment No. 2 amount of $468,648, if needed; and,
3. Authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement with GHD, Inc., subject to the City Attorney making non substantive changes.
BACKGROUND
In 2024, the City was awarded grant funding under the Federal Surface Transportation Block Grant Program (STBGP) to design and construct active transportation improvements on South Forbes Road and along Oso Creek, from the end of cul-de-sac to the southern City boundary (Attachment A). The grant-funded Project, known as the South Forbes Road/Oso Creek Trail Active Transportation Enhancements Project (Project), is located within the City's Gateway Specific Plan area (Gateway Area). The Gateway Area is a local district bisected and bounded by freeway, rail, and utility infrastructure corridors. The City has been implementing the Gateway Specific Plan since its adoption in 2011 to transform the Gateway Area into a vibrant, high-intensity transit and pedestrian-oriented district.
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The Project is comprised of three sections south of Crown Valley Parkway: 380 feet of sidewalk gap closure along the easterly side of South Forbes Road; intersection improvements at the South Forbes Road cul-de-sac and roadway extension, including ADA curb ramps and an east-west pedestrian crossing; and a 3,100 feet extension of the Oso Creek off-street (Class I) paved trail to the southern City boundary at Camino Capistrano.
The improved active transportation network connections and safety improvements resulting from this Project will enhance mobility and safety for people living within the community, as well as Orange County residents cycling to and near the Laguna Niguel/Mission Viejo Metrolink Station, Saddleback College, the Shops at Mission Viejo, and other regional destinations.
In late 2024, a Request for Proposals (RFP) was issued for the Project Approval & Environmental Documentation (PAED) Phase and the Plans, Specifications, & Estimate (PS&E) Phase. Seven firms submitted proposals, and GHD Inc. was identified as the best qualified firm to provide professional civil engineering services for the Project.' On March 24, 2025, the City entered into a Professional Services Agreement with GHD, Inc., to perform the PAED phase of the Project design. On March 20, 2026, the City and GHD, Inc. entered into Amendment No. 1 to the Professional Services Agreement to provide additional services to determine the most cost-effective project design to complete the PAED phase.
ANALYSIS
GHD, Inc. has satisfactorily completed the PAED phase. To ensure the project continues to meet grant timelines, staff met with GHD, Inc., to review and refine the PS&E phase scope of work based on information gained during the PAED phase. GHD, lnc.'s scope of work and fee for the PS&E phase are consistent with their original proposal and the City's RFP.
Approval of Amendment No. 2 to the Professional Services Agreement with GHD, Inc., is necessary to complete the PS&E phase of the project design. The fee for the PS&E phase is $426,044, to which a 10% contingency of $42,604 is recommended, bringing the total not-to-exceed amount of Amendment No. 2 to $468,648 (Attachment B). The PS&E design phase is scheduled for completion by June 2027. Caltrans allocation of construction funding is scheduled for September 2027, _and the City intends to advertise the Project for construction in Fall 2027. Construction is anticipated to start in Spring 2028.
ALTERNATIVES CONSIDERED
The City Council may decide not to approve Amendment No. 2 to the Professional Services Agreement with GHD, Inc. This alternative is not recommended as the South Forbes Road/Oso Creek Trail Active Transportation Enhancements Project would be delayed and the associated grant funding may be jeopardized.
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FISCAL REVIEW
The adopted Capital Improvement Program includes sufficient funding in the South Forbes Road/Oso Creek Trail Active Transportation Enhancements Project, including Amendment No. 2 to the Professional Services Agreement with GHD, Inc. Approval of Amendment No. 2 increases the total compensation of the Professional Services Agreement with GHD, Inc., including contingency, for a total not-to-exceed amount of $854,738. The project funding for the PAED and PS&E phases is summarized below. titi~f~~lii~ij•,f 1iil:1f ~~1t,11~~iiit.:
General Fund $219,258
State Transportation Block
Grant
Total Funds Available
LEGAL REVIEW
$687,000
$906,258
: ''. ~A~g:~n~ ~~.~E, ~.ha
: ·, / Y' "Ex , enditu~~~ 1
,/0 • .,
PAED Phase $386,090
PS&E Phase $468,648
Total Estimated Design $SS4,738 Phase Expenditures
The City Attorney's Office has reviewed this report and Amendment No. 2 to the Professional Services Agreement and has approved both documents as to form.
CONCLUSION
Staff recommends that the City Council:
1. Award Amendment No. 2 to the Professional Services Agreement with GHD, Inc., to provide final engineering design services for the Plans, Specifications, and Estimates Phase of the South Forbes Road/Oso Creek Trail Active Transportation Enhancements, Cash Contract No. 24-12, with a base fee of $426,044;
2. Approve a not-to- exceed 10% contingency to the base fee for Amendment No. 2 in the amount of $42,604 for unforeseen conditions or extra work, and authorize the Public Works Director to approve additional work, for a total not-to exceed Amendment No. 2 amount of $468,648, if needed; and,
3. Authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement with GHD, Inc., subject to the City Attorney making non substantive changes.
�u�-S-co_t _t _c ___ S _m_i-th________ _
City Manager City Attorney
Kevin X. O'Connor
Acting Public Works Director Senior Civil Engineer
Attachments:
A. Location Map
B. Amendment No. 2 to the Professional Services Agreement with GHD, Inc. ~~ Harri on Martin
ATTACHMENT A
Location Map
Oso Creek Trail
Location Map
South Forbes Road / Oso Creek Trail Active Transportation Improvements PAED and PSE Laguna Niguel
ATTACHMENT B
Amendment No. 2 to the
Professional Services Agreement with GHD, Inc.
AMENDMENT NO. 2 TO AGREEMENT
FOR PROFESSIONAL SERVICES
BETWEEN CITY OF LAGUNA NIGUEL AND
GHD, INC.
THIS AMENDMENT NO. 2 TO AGREEMENT FOR PROFESSIONAL SERVICES ("Amendment No. 2") is made and entered into ______ , by and between CITY OF LAGUNA NIGUEL, a California municipal corporation ("City") and GHD, Inc., a California corporation ("Consultant"). City and Consultant may be referred to individually as "Party" or collectively as "Parties."
RECITALS
1. City and Consultant entered into a professional services agreement on March 24, 2025, to provide professional engineering services for the Project Approval & Environmental Documentation Phase of the South Forbes Road/Oso Creek Trail Active Transportation Improvement Project ("Project"). The term of the Agreement terminates upon completion of Services on the Project. ("Agreement").
2. Amendment No. 1 to Agreement, executed on March 20, 2026, increased the total Contract Sum and expanded the Scope of Services under the Agreement to provide additional services in support of the Project Approval & Environmental Documentation Phase.
3. City and Consultant now desire to amend the Agreement in order to increase the total Contract Sum, expand the Scope of Services, update the Schedule of Performance and update the Schedule of Compensation to provide for the final design and completion of the Plans, Specifications, and Estimates Phase of the Project.
TERMS
1. Agreement Changes. The Agreement is amended as follows:
A. Section 2.1 , "Contract Sum," shall be amended to read in its entirety (new text is identified in bold italics, deleted text in strike through) as follows:
"Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the "Schedule of Compensation" attached hereto as Exhibit C and incorporated herein by this reference. The total compensation ( excluding the Contingency Sum), including reimbursement for actual expenses, shall not exceed Seven Hundred Seventy Four Thousand Twenty Dollars ($774,020) Three Hundred Forty Seven Thousand Nine Hundred Seventy Six ($347,976) ("Compensation Sum"), unless additional compensation is approved pursuant to Section 1.5. This Agreement includes a contingency amount equal to Eighty Thousand Seven Hundred Eighteen Dollars ($80,718) Thirty Eight Thousand One Hundred Fourteen Dollars ($38,114) ("Contingency Sum") to account solely for additional work, or unforeseen conditions, related to the services. The total compensation (including the Contingency Sum), including reimbursement for actual expenses, shall not exceed Eight Hundred Fifty Four Thousand Seven Hundred Thirty Eight Dollars ($854,738) Three Hundred Eighty Six Thousand Ninety Dollars ($386,090) ("Contract Sum"), unless additional compensation is approved pursuant to Section 1.5.
The Consultant shall obtain written approval from the City for any use of the Contingency Sum.
Compensation may include reimbursement, for actual and necessary expenditures, if both specified in the Schedule of Compensation, as well as approved by City in advance. Upon expiration of original term of the Agreement, if term is extended (pursuant to Section 3 .2 or otherwise), fees and rates may only be increased both pursuant to Section 9.4 as well as subsequent to negotiation between the Parties on such increase shall be no greater than the CPI increase (Orange County area) for the applicable period of time. City has no obligation or duty to provide any such increase.
The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City. Consultant agrees that if Consultant becomes aware of any facts; circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services, Consultant shall promptly notify the City Representative of said fact, circumstance, techniques or event and the estimated increased or decreased cost related thereto." B. Exhibit A, "Scope of Services," is amended (new text is identified in bold italics, deleted text in strike through) as follows:
"I. All work product is subject to review and acceptance by City, and must be revised by Consultant without additional charge to City until found satisfactory and accepted by City.
II. Consultant will perform services, described in Consultant's Proposal, Consultant's Amendment 1 Proposal, Consultant's Amendment 2 Proposal and City's RFP (refer to Section 1.2 for conflicts)."
C. Exhibit C, "Schedule of Compensation," is amended (new text is identified in bold italics, deleted text in strike through) as follows:
"I. City will compensate Consultant for the services performed upon submission of a valid invoice, as described in Section 2.2.
II. The total compensation for the services shall not exceed the total of the Contract Sum, as provided in Section 2.1 of this Agreement.
III. Consultant will be compensated for services provided pursuant to this Agreement in accordance with description in Consultant's Proposal, Consultant's Amendment 1 Proposal, and Consultant's Amendment 2 Proposal."
D. Exhibit D, "Schedule of Performance," is amended (new text is identified in bold italics, deleted text in strike through) as follows:
"I. Consultant shall perform all services and deliver all work products timely in accordance with the schedule described in Consultant's Proposal, Consultant's Amendment 1 Proposal, and Consultant's Amendment 2 Proposal and City's RFP (refer to Section 1.2 for conflicts)."
2. Continuing Effect of the Agreement. Except as amended by this Amendment No. 2 and Amendment No. 1, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment No. 2, whenever the term "Agreement" appears in the Agreement, it shall mean the Agreement, as amended by this Amendment No. 2 and Amendment No. 1.
3. Affirmation of the Agreement. City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each Party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation.
4. Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2.
5. Authority. The persons executing this Amendment No. 2 on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 2 on behalf of said Party, (iii) by so executing this Amendment No. 2, such Party is formally bound to the provisions of this Amendment No. 2, and (iv) entering into this Amendment No. 2 does not violate any provision of any other agreement to which said Party is bound.
[SIGNATURES ON FOLLOWING PAGE]
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No. 2 on the date and year first-above written.
ATTEST:
Marissa J. Asistin, City Clerk
APPROVED AS TO FORM BY THE
CITY ATTORNEY FOR THE
CITY OF LAGUNA NIGUEL,
CALIFORNIA:
Scott C. Smith, City Attorney
CITY:
CITY OF LAGUNA NIGUEL, a California
municipal corporation
Tamara S. Letourneau, City Manager
CONSULTANT:
GHD INC., a California corporation
By: ___________ _
Name: Josh Wolf
Title: Vice President
By: ___________ _
Name: Lindsay Ray
Title: Assistant Company Secretary, America
Address: 320 Goddard Way, Suite 220
Irvine, CA 92618
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairperson of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code§ 313.) APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE
BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT'S BUSINESS ENTITY.