TO:Andrew P. Powers, City Manager
FROM:Akbar Alikhan, Assistant City Manager
DATE:July 7, 2026
SUBJECT: Professional Services for Downtown Thousand Oaks Project (CI 5540)
RECOMMENDATION:
1. Approve Second Amendment to Professional Services Agreement with RRM Design Group, Inc. (RRM) of San Luis Obispo, CA, (Contract No. 13832-2024) for architectural/engineering design and entitlement services for the Downtown Thousand Oaks Project (CI 5540) in the amount of $7,029,932, plus additional services of $344,267 for a revised total not-to-exceed amount of $12,005,098, and extending the term of the Agreement to June 30, 2031.
2. Approve Fourth Amendment to Professional Services Agreement with HR&A Advisors, Inc. (HR&A) of Los Angeles, CA, (Contract No. 13865-2025) for financial and public-private partnership advisory services for the Downtown Thousand Oaks Project (CI 5540) in the amount of $700,000, for a revised total not-to-exceed amount of $1,700,000.
3. Authorize legal fees in the Legal Consultation Agreement (Contract No. 13571- 2024) with Best, Best & Krieger of Los Angeles, CA, for the Downtown Thousand Oaks Project (CI 5540) in the additional amount of $500,000 for a total agreement not-to-exceed amount of $850,000.
4. Authorize City Manager or designee to execute agreements for site preparation including but not limited to environmental testing, security fencing, demolition, and additional geotechnical work.
5. Authorize budget appropriation for FY 2026-27 in the amount of $4,074,199 from A/C #001-0000-311-1000 (General Fund – Fund Balance) to A/C #001-3570- 612-8300 (General Fund – Improvements Other than Buildings, CI5540).
6. Authorize expenditure for FY 2026-27 in the amount of $9,074,199 from A/C #001-3570-612-8300 (General Fund – Improvements Other than Buildings, CI5540) for professional services for the Downtown Project.
Professional Design Services for Downtown Thousand Oaks Project (CI 5540) July 7, 2026
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7. Authorize City Manager and City Attorney to make minor clarifying and conforming changes to the two Professional Services Agreement Amendments, if needed, before the amendment execution.
8. Authorize staff to issue Request for Qualifications (RFQ) for a private development partner, followed by a Request for Proposals (RFP) from finalist candidates (CI 5540).
9. Find that this action is not a project as defined under the California Environmental Quality Act (CEQA).
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
$4,074,199 Increase to Adopted FY 2026-27 General Fund Budget. $4,074,199 increase to the Adopted FY 2026-27 General Fund Budget is requested for Downtown Thousand Oaks Project CI5540 for final design, construction documents, procurement, financial, site preparation, and legal services. $5.0 million is included in the Adopted FY 2026-27 General Fund Budget in CI 5540.
The City has also set aside $45.0 million in reserves towards the project with an additional $30.4 million from the sale of the property at 401/403 Hillcrest Drive.
BACKGROUND:
Since its adoption on June 5, 2018, and building on the policy goals in the Thousand Oaks Boulevard Specific Plan, the Downtown Core Master Plan (DCMP) established a vision for the downtown core and identified the initiatives the City should pursue to create an active, pedestrian-friendly area. Over the past several years, advancing the creation of a Downtown in Thousand Oaks has consistently been one of City Council’s Top 10 Priorities, including for FY 2026-27.
At the December 3, 2024, City Council Meeting, RRM, in partnership with SmithGroup, was awarded an agreement in the amount of $4,105,727 plus additional services of $525,172, for a total not-to-exceed amount of $4,630,899 for a term ending December 31, 2029, to complete preliminary design of the Downtown Project (Project). The scope of work included all pre-entitlement design work for some phases of the Project, including the City Council hearing that occurred June 23, 2026. The agreement contained options to amend for post- entitlement design work.
Professional Design Services for Downtown Thousand Oaks Project (CI 5540) July 7, 2026
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At the same meeting, HR&A Financial Consultants was awarded an agreement in the amount of $794,034, plus additional services of $205,966, for a total not-to- exceed amount of $1,000,000 for a term ending December 31, 2029, with two one- year options for extension. The scope of work included financial planning, public- private-partnership (P3) advisory services, and assistance with Enhanced Infrastructure Financing District (EIFD) formation services.
In addition, Best, Best & Krieger LLP (BB&K) was also retained with an approved amount of $300,000 added to a previously approved $50,000 for a total not-to- exceed amount of $350,000. The firm was retained to advise the City on key legal issues related to the Project such as the Surplus Lands Act, entitlement processing, compliance with CEQA, and other property disposition procedures.
Staff anticipates that further legal services will be required for the subsequent phases of the Project, including legal assistance during developer negotiations.
After extensive work on the design and CEQA documents, the Planning Commission heard the Project on May 18, 2026, and recommended in a 4-1 vote to City Council to certify the Environmental Impact Report (EIR) and approve the Project as presented by staff. On June 23, 2026, City Council conducted a public hearing and approved the final EIR, a General Plan Amendment, a Specific Plan Amendment, and entitled the civil engineering site work (Phase 1), the mixed-use development of the Westside Parcel (Phase 2A), and the renovation of Carpenter Park (Phase 2B).
DISCUSSION/ANALYSIS:
The next phase of the Project will require continuation of this multi-disciplinary consultant team to address each area of need, shift from the entitlement preparation phase, and move to post-entitlement design, developer selection, and construction portion phases of the Project. There are multiple remaining phases of the Project. Phase 1 includes all site preparation work, including roads and utilities, Phase 2A includes the private development portion of the mixed-use buildings and hotel, Phase 2B includes the park and restaurant pad, Phase 2C includes the City Hall adaptive reuse including public market, and Phase 3 includes the amphitheater. The following sections summarize the purpose and process for each of the three amendments to the existing agreements recommended for City Council approval.
Final Design Phase/Bridging Architect Services (Recommendation #1) The RRM Agreement contained a potential additional scope of work for final design beyond the 30 percent design mark and construction phase support services that can be executed via amendment. The Agreement was first amended on January 9, 2025, to add additional insurance requirements to the agreement. Staff now Professional Design Services for Downtown Thousand Oaks Project (CI 5540) July 7, 2026
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recommends amending the Agreement to add $7,029,932 plus additional services of $344,267 for a new total not-to-exceed amount of $12,005,098 for professional services to advance Phases 1 and 2B of the project from the approved entitlement plans to permit-ready construction documents, consistent with amended Specific Plan 11 (SP 11).
RRM will also provide coordination and advisory support to help evaluate developer proposals, review program and design refinements for consistency with SP 11, and assist with project phasing, sequencing, and overall cost management as the Project advances. The selected partner developer will be responsible for post-entitlement design costs related to Phase 2B.
In addition to project management and developer coordination, the scope includes several supporting technical and implementation tasks needed to move the Project toward construction. These include updated geotechnical and arborist reporting, supplemental topographic surveying, preparation of a signage and wayfinding plan, public spaces operations and maintenance plan, parking district coordination, preparation of a final subdivision map, and support for condition compliance and permitting. The scope also includes preparation of minor SP 11 amendments, if needed, to refine signage, wayfinding, or public art provisions. Throughout the process, RRM will provide ongoing schedule management, coordination among subconsultants, and independent construction cost estimating to support budgeting and bid readiness.
The principal design work consists of preparing construction documents for Phase 1 and Phase 2B improvements. For Phase 1, this includes permit and bid-ready packages for the reinforced concrete box culvert realignment, on-site improvements, roadway encroachment work, and public utility improvements, together with associated specifications, cost estimates, and bidding support. For Phase 2B, the scope includes final design and construction documents for Carpenter Park and related roadway encroachment improvements.
Financial and P3 Advisory Services (Recommendation #2)
The HR&A Agreement was first amended on February 6, 2025, to adjust the timeline and phasing plan, amended a second time on May 1, 2025, to further adjust the scope and funding strategy, and amended a third time on March 5, 2026, to further refine the project strategy and implementation. All amendments were within the total approved amount of $1,000,000. Staff recommends approval of a fourth amendment to the Agreement in the amount of $700,000 for a new not-to- exceed amount of $1,700,000. The additional scope builds on prior procurement and financing work and is intended to assist the City through developer selection, transaction negotiation, and implementation of an EIFD. The primary focus of the work is to guide the City through a two-phased developer solicitation process, Professional Design Services for Downtown Thousand Oaks Project (CI 5540) July 7, 2026
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beginning with a RFQ and followed by a RFP, while ensuring the opportunity is clearly marketed, responses are evaluated consistently, and City staff are supported throughout review, interviews, and selection.
Following solicitation, HR&A will support the City in negotiating business terms with the preferred development partner or partners, including potential best-and- final offers, an Exclusive Negotiating Agreement, and a final Disposition Agreement. This work includes financial and strategic analysis, term sheet development, coordination with legal and City staff, and preparation of materials to communicate the recommended transaction structure and key deal terms to City stakeholders. Throughout this process, HR&A will evaluate development proposals not only for qualifications and technical approach, but also for financial feasibility, funding sources, financing plans, and alignment with the City’s risk management and performance objectives.
The scope also includes continued support for EIFD implementation and broader project financing strategy. HR&A and team will refine revenue, bond capacity, and fiscal impact analyses and advance formation documents such as the Resolution of Intent and Infrastructure Financing Plan, along with related public meeting materials. On an as-needed basis, HR&A will also update the project’s financial model to reflect changing financing assumptions, evaluate additional funding sources, assist with grant writing, and provide other advisory support related to project delivery, stakeholder communications, cost validation, and economic impact analysis. Overall, the work is designed to help the City maintain a flexible and actionable financing strategy while advancing the Project toward implementation.
Legal Services (Recommendation #3)
Since November 2023, Best, Best & Krieger LLP (BB&K) has advised the City on key legal issues related to the Project such as the Surplus Lands Act, entitlement processing, CEQA compliance, and other property disposition procedures. Staff anticipates that further legal services will be required for the upcoming phase of the Project. Based on the increased scope of the Project and anticipated legal analysis needed, staff recommends that City Council authorize an additional $500,000 for the City’s legal consultation agreement with BB&K for a new total not- to-exceed amount of $850,000. Legal service agreements are not included as attachments for confidentiality purposes.
Site Preparation Services (Recommendation #4)
The City-owned properties at 1900, 1938, and 1948 E. Thousand Oaks Boulevard were recently vacated by the prior tenants. With the buildings vacated, any additional environmental testing and geotechnical work may be performed without Professional Design Services for Downtown Thousand Oaks Project (CI 5540) July 7, 2026
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disruption to businesses. Additionally, security fencing and demolition services will be required to prepare the site for civil infrastructure work as part of the first phase of the Downtown Project.
Next Steps
Staff recommends approval for the issuance of a RFQ to develop a short-list of qualified developers. Finalists would be asked to submit proposals in response to the City’s RFP to be issued later this year. Staff will return in 2027 with a proposed developer for City Council approval and authorization to enter into an Exclusive Negotiation Agreement with the selected finalist.
Per City Council direction, the RFQ/P will allow for the City to retain the option to include sale or long-term lease of publicly-owned property and a mix of for-sale condominium and apartment units versus apartment units solely.
Top Ten Council Priorities FY 2026-27
The recommended City Council action and staff efforts meet City Council’s Top Ten Priorities #1, “Downtown Thousand Oaks Project – Advance the Downtown Thousand Oaks Project through continued community engagement, completion of environmental review, and preparation for Planning Commission and City Council consideration. Based on policy direction, refine phased implementation strategies, evaluate targeted improvements along Thousand Oaks Boulevard within the downtown core, and prepare for a future development partner selection process, if directed.”
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- Professional Design Services for Downtown Thousand Oaks Project (CI 5540) July 7, 2026
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interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made (Attachment #3).
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
A. Create a more equitable, accessible, safe, welcoming, and inclusive government and community regardless of race, color, ethnicity, religion, sex, physical or mental ability, sexual orientation, gender identity and expression, age, language, education, and/or socio-economic status.
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
I. Maintain a strong local employment base geared toward retaining high quality businesses; Sustain a healthy business community; and, Diversify the local economy, with a specific emphasis on small businesses and high technology/biomedical jobs.
PREPARED BY: Ryan Roman, Assistant to the City Manager
Attachments:
Attachment #1 – Second Amendment to Agreement with RRM Design Group, Inc.
Attachment #2 – Fourth Amendment to Agreement with HR&A Advisors, Inc.
Attachment #3 – Best, Best & Krieger signed Levine Act Disclosure Form CMO: 850-20:RR/H:common/City Council/Council Items/2026/070726 Downtown (CI 5540) – Amendments to Professional Services Agreements for Project Design – Staff report