REL ONDO BEA
Administrative Report
Council Action Date: March 21, 2017
To: MAYOR AND CITY COUNCIL
From: AARON JONES, COMMUNITY DEVELOPMENT DIRECTOR
Subject: THIRD AMENDMENT TO CONSULTING SERVICES AGREEMENT
WITH ENVIRONMENTAL SCIENCE ASSOCIATES (ESA) AND
SECOND AMENDMENT TO REIMBURSEMENT AGREEMENT WITH
SOUTH BAY ASSOCIATES SPE, LLC FOR ENVIRONMENTAL
REVIEW ASSOCIATED WITH THE SOUTH BAY GALLERIA PROJECT
RECOMMENDATION
1. Approve third amendment to the consulting services agreement with Environmental Science Associates (ESA) for additional services in the amount of $281,448 and a new total contract cost of $694,547 for environmental review services associated with the South Bay Galleria Project; and
2. Approve second amendment to the reimbursement agreement with South Bay Associates SPE, LLC in the amount of $1,098,729 for the reimbursement of 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 will study 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, and April 5, 2016 for additional scope of work. The second amendment brought the total contract cost to $413,099 and the term through June 30, 2017.
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Administrative Report March 21, 2017
Third Amendment ESA Contract Galleria Project
The current request for a third amendment is for additional review required in order to finalize the EIR. The additional scope of work is a result of the adoption of Senate Bill (SB) 32 related to global warming solutions, recent California Environmental Quality Act (CEQA) case rulings, and additional alternatives analysis. The expanded scope of work increases the total cost by $281,448, bringing the contract total for ESA to $694,547. 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 June 30, 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, and are now in the finalization stage of the Draft EIR.
On December 15, 2015, the City Council approved the first amendment in order to extend the term of the contract through December 31, 2016.
On April 5, 2016, the City Council approved the second amendment to expand the scope of work as result of feedback from public scoping meetings. Additional review was authorized in the areas of Shade/Shadow Analysis, Cultural and Historic Resources, Geotechnical Hazards, Water Supply Assessment, Alternatives Analysis, and additional public workshops. The second amendment extended the term of the agreement to June 30, 2017.
The current amendment will provide for additional scope of work related to Greenhouse Gas Emissions, Energy Analysis, Alternative Analysis, and significant funding for additional Responses to Comments anticipated.
The additional funding provided to ESA under this contract amendment is expected to provide sufficient resources to accomplish the complete environmental review process H.11
Administrative Report March 21, 2017
Third Amendment ESA Contract Galleria Project
for this project. The next steps in that process include release of the Draft Environmental Impact Report (DEIR) for public and agency review and comment, the preparation of responses to comments and the Public Hearing process before the Planning Commission. It is anticipated that the DEIR will be released within the next 30 days. Following that release during the 45-day public review period a Public Meeting will be held to solicit public input on the DEIR. Preparation of responses to comments will require 45-60 days depending on the number of comments received. Given these multiple steps and milestones, a Public Hearing before the Planning Commission is anticipated by late summer or early fall.
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 with ESA will be fully reimbursed to the City pursuant to terms of the Reimbursement Agreement with South Bay Associates SPE, LLC.
Expenditures Funding
ESA $694,547 South Bay Associates SPE, LLC $694,547
Submitted by: Approved for forwarding by:
Aaron Jones Joe Hoefgen
Community Development Director City Manager
Attachments:
• Third amendment to consulting services agreement with ESA • Second amendment to reimbursement agreement with South Bay Associates, SPE LLC • Second amendment to consulting services agreement with ESA • First amendment to reimbursement agreement with South Bay Associates SPE, LLC • Administrative Report April 5, 2016
• First amendment to consulting services agreement with ESA • Administrative Report December 15, 2015
• Contract No. C-1412-139 with ESA
• Reimbursement Agreement No. C-1412-140 with South Bay Associates SPE, LLC.
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