City Council
Report
City Council Meeting: May 26, 2026
Agenda Item: 4.G
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To: Mayor and City Council
From: Jing Yeo, Director, Administration
Subject: Approval of Second Modification to Agreement with Engineering Solutions Services for Grant Management Services for the Community Development Department
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of signification effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Authorize the City Manager to execute a second modification to agreement #11245 (CCS) for grant management services for the Community Development Department. This will result in a five-year amended agreement, with future year funding contingent on Council budget approval.
Summary
The City was awarded a Hazard Mitigation Grant by the Federal Emergency Management Administration (FEMA) in support of the Seismic Retrofit Program on September 15, 2021. This grant required outside grant management services, so RFP #299 was issued for these services. Engineering Solutions Services (ESS),was awarded the contract, which was approved by Council on March 8, 2022. This original contract had a three-year term with one one-year option to renew, for a total term of four years. Agreement #11245 with ESS was executed on April 26, 2022. The single oneyear option was executed on June 25, 2024 and a first modification to the agreement was executed on 8/28/25 to extend the term by one year. The agreement is set to expire at the end of the current fiscal year, but the grant program will continue until January 3, 2027. Therefore, staff recommends extending the term of the agreement 2 of 3
with ESS for an additional year so that the City of Santa Monica (City) can continue utilizing ESS’s grant management services for the life of the grant program. Council approval is necessary for the proposed term extension. All other aspects of the agreement, including the total amount, remain unchanged.
Discussion
The City was awarded a Hazard Mitigation Grant by FEMA in 2021. This grant helps owners of properties in Santa Monica that require seismic retrofitting with the costs of those retrofits by reimbursing them for a percentage of those costs. Due to the complexity of the grant program, the fact that it was a federal grant, and the lack of available staff to fully support this program, the City opted to hire a consultant to provide grant management services. RFP #299 was issued as a result, with the RFP being awarded to, and contract #11245 executed with ESS. The grant program was expected to be completed in 2025, so the term on the contract with ESS was limited to up to four years.
However, the grant program has been extended until January 3, 2027, which will extend the required time needed for grant management services. There will be a three-month closeout period prior to that in which the entire history of the program will be reviewed to ensure the accuracy of all financial transactions that occurred during the program. One of ESS’s primary functions will be to manage this closeout. Therefore, staff recommends extending ESS contract #11245 for one additional year so that ESS can continue providing grant management services for the life of the grant. It is also staff’s understanding that FEMA is actively working on extending the term of the seismic retrofit grant even further, in which case, staff may seek an additional extension to the term of the agreement with ESS to match.
Environmental Review
The agreement is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA guidelines, which states that CEQA does not apply where there is no possibility that this project may have a significant effect on the environment. The agreement for ESS’s work is administrative in nature and involves functions such as website creation/hosting, 3 of 3
contacting owners regarding the grant program, and reporting on financial transactions.
Therefore, it can be seen with certainty that the proposed agreement would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.
Past Council Actions
Meeting Date Description
03/08/22 (attachment A) Original bid and award of agreement with ESS for grant management services
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future.
Prepared By: Kevin Purcell, Principal Administrative Analyst Approved Forwarded to Council
Attachments:
A. March 8, 2022 Staff Report
B. ESS - Oaks
C. ESS - Levine Act
D. ESS - Original Agreement
E. ESS - First Modification