OF REDONDO
Administrative Report
Council Action Date: December 19, 2017
To: MAYOR AND CITY COUNCIL
From: AARON JONES, COMMUNITY DEVELOPMENT DIRECTOR
Subject: FOURTH AMENDMENT TO CONSULTING SERVICES AGREEMENT WITH
ENVIRONMENTAL SCIENCE ASSOCIATES (ESA) AND THIRD AMENDMENT TO
REIMBURSEMENT AGREEMENT WITH SOUTH BAY ASSOCIATES SPE, LLC FOR
ENVIRONMENTAL REVIEW SERVICES RELATED TO THE SOUTH BAY GALLERIA
PROJECT
RECOMMENDATION
1. Approve fourth amendment to the consulting services agreement with Environmental Science Associates (ESA) for additional services in the amount of $231,600 for a new total contract cost of $926,147 for environmental review services associated with the South Bay Galleria Project;
2. Approve third amendment to the reimbursement agreement with South Bay Associates SPE, LLC in the amount of $483,840 for a new total reimbursable services amount of $1,582,569 for costs associated with the South Bay Galleria Project; and
3. Authorize the Mayor to execute signature on all required documents.
EXECUTIVE SUMMARY
On December 16, 2014, the City Council approved a contract with Environmental Science Associates (ESA), an environmental consulting firm, to prepare all required environmental documentation for the South Bay Galleria Project at cost of $350,391. Scope of work included the preparation of a full Project Environmental Impact Report (EIR).
The Environmental Impact Report studies various project alternatives starting with maximum build out of the site at approximately 1.3 million square feet of commercial uses and up to 650 residential units, ranging down to approximately 932,450 square feet of commercial uses and 298 residential units.
Subsequent contract amendments were approved by the City Council on December 15, 2015 to extend the term of the agreement, on April 5, 2016 for additional scope of work related to technical studies, and on March 21, 2017 for additional work in the areas of alternatives analysis. The previous amendments brought the total contract cost to $694,547 and the term through December 31, 2017. The Draft EIR was released for public and agency review and comment from July 28, 2017 through September 11, 2017.
Over 500 comments were received.
Due to the number of comments received, this fourth amendment to the contract is necessary for additional and extends the contract to December 31, 2018. The expanded scope of work increases the total cost by $231,600, bringing the contract total for ESA to $926,147.
The corresponding reimbursement agreement with the project developer, South Bay Associates SPE, LLC covers all anticipated consultant, legal, and staff costs associated with the environmental review for the project.
The City Attorney's Office has prepared the necessary contract and reimbursement agreement amendments between the City, ESA, and South Bay Associates SPE, LLC.
BACKGROUND
The South Bay Galleria property owners are seeking to redevelop the site. The proposed development requires preparation of an EIR and additional staff and legal resources to review and process the project.
The City Council approved the environmental consulting services contract and related reimbursement agreement on December 16, 2014, and extended the contract term through December 31, 2017.
The contract with ESA includes the full scope of project services including: public scoping, EIR preparation and circulation, responses to comments and Final EIR delivery. A full detail of the consultant's responsibilities and deliverables is provided in the exhibits to the attached contract. Since inception of the contract, ESA has completed the public scoping, review of scoping comments, preparation of all technical studies, and completion of the Draft EIR. The Draft EIR was made available for public review and comment beginning July 28, 2017 through September 11, 2017. The first Public Hearing before the Planning Commission is anticipated by early 2018.
The Reimbursement Agreement with the project developer, South Bay Associates SPE, LLC provides for full cost reimbursement of additional environmental review, legal review, and City administrative costs.
COORDINATION
The proposed contract amendments were prepared by and coordinated with the City Attorney's Office.
FISCAL IMPACT
All contract costs for the South Bay Galleria Project will be fully reimbursed to the City pursuant to terms of the Reimbursement Agreement with South Bay Associates SPE, LLC.
Funding Expenditures
South Bay Associates SPE $1,582,569 EIR Preparation - ESA $926,147 CEQA Legal Consultant - $450,000
Sohagi Law Group
City Administrative Costs $206,422
Total $1,582,569
SUBMITTED BY:
Aaron Jones, Community Development Director
APPROVED BY:
Joe Hoefgen, City Manager
ATTACHMENTS:
N.3
Fourth Amendment to consulting services agreement with ESA Third Amendment to reimbursement agreement with South Bay Associates SPE Third Amendment Contract ESA
Second Amendment Contract ESA
First Amendment Contract ESA
Original Consulting Services Agreement ESA
Second Amendment Reimbursement Agreement South Bay Associates SPE First Amendment Reimbursement Agreement South Bay Associcates SPE Original Reimbursement Agreement South Bay Associates SPE N.3