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CC SR 20230919 I - PBL Final Engineering CITY COUNCIL MEETING DATE: 09/19/2023 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to approve professional services agreements for the Portuguese Bend Landslide Remediation Project final engineering and associated services. RECOMMENDED COUNCIL ACTION: (1) Award a professional services agreement to Geo-Logic Associates, Inc. for the Portuguese Bend Landslide Remediation project final engineering and associated services in the amount of $1,460,000, plus a 15% contingency of $219,000, for a total cost of $1,679,000; (2) Award Amendment No. 1 to the professional services agreement with LSA Associates, Inc. for the Portuguese Bend Landslide Remediation project Environmental Impact Report (EIR) in the amount of $141,917 plus a 15% contingency of $21,288, for a total cost of $163,205; (3) Award a professional services agreement to Hout Construction Services, Inc. DBA Hout Engineering for the Portuguese Bend Landslide Remediation project management, peer review, and associated services, in the amount of $393,784, plus a 15% contingency of $59,067, for a total cost of $452,851; (4) Authorize the Mayor to execute the agreements in a form approved by the City Attorney; and, (5) Approve an additional appropriation of $925,289, from the City’s Capital Infrastructure (CIP) Fund for the professional services associated with the Portuguese Bend Landslide project. FISCAL IMPACT: The current committed CIP balance for the Portuguese Bend Landslide Remediation project is $1,419,767 . In order to proceed with final engineering and to complete the Final EIR based on anticipated project design revisions resulting from comments on the Draft EIR, the total of the recommended PSAs is up to $2,295,056. Additionally, approximately $50,000 is expected to be needed for professional services related to drainage and trail repairs in the landslide area. Therefore, Staff is requesting an additional appropriation of $925,289. The recommended Council action will result in an expenditure of up to $2,345,056. The $925,289 amount may be offset in the CIP fund by the recently announced FEMA grant or be considered part of the required FEMA matching funds; however, this will not be confirmed until the FEMA grant process is completed. VR 1 Amount Budgeted: $2,990,381 Additional Appropriation: $925,289 Account Number(s): 220-400-8304-8001 (Measure R-Professional/Technical) 330-400-8304-XXXX (CIP-Various) ORIGINATED BY: Ramzi Awwad, Public Works Director REVIEWED BY: Same as above APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Professional Services Agreement with Geo-Logic Associates, Inc. (page A-1) (to be transmitted as late correspondence) B. Professional Services Agreement with Hout Construction Services, Inc. DBA Hout Engineering (page B-1) (to be transmitted as late correspondence) C. Amendment No. 1 to the Professional Services Agreement with LSA Associates, Inc. (page C-1) (to be transmitted as late correspondence) BACKGROUND: Project History In spring 2017, the City Council appointed then-Mayor Pro Tem Jerry Duhovic and then- Council Member Ken Dyda to a subcommittee to identify possible solutions or strategies to remediate the Portuguese Bend Landslide (PBL). This subcommittee was formed to begin a collaborative process with community stakeholders and professional experts from Daniel B. Stephens & Associates, Inc. (DB Stephens) and Geo-Logic Associates on identifying possible engineering solutions to remediate the PBL. Additionally, to provide a forum for stakeholder involvement, the City Council convened a committee of concerned residents to chart a path toward significantly reducing movement of the PBL. A series of four public workshops was held to elicit the best ideas from the community and to seek input on goals and possible solutions to remediate the PBL. Approximately 20 to 30 residents attended each of these workshops and participated in the process. Considering input at these workshops, the City commissioned the PBL Remediation Feasibility Study (Feasibility Study) to identify and select a conceptual solution to significantly reduce landslide movement. On January 16, 2018, Staff presented the City Council with a draft Feasibility Study, and on June 18, 2018, a public workshop was conducted to provide residents with a summary of the Feasibility Study and answers to their questions. On August 7, 2018, Staff presented the City Council with the Updated Feasibility Study. The City Council then authorized Staff to move forward with the preliminary design of the PBL Remediation Project. 2 Preliminary Design On December 17, 2019, following meetings with the Palos Verdes Peninsula Land Conservancy (PVPLC) and other community stakeholders, Staff presented the City Council the proposed preliminary design for the PBL Remediation Project. The preliminary design consists of mitigation measures intended to significantly slow down land movement by removing water and preventing its re-entry, the primary contributor to the landslide. Those measures are summarized as follows: • Infill surface fractures (fissures) to prevent storm water runoff from easily becoming part of groundwater. • Install surface drainage systems, including natural swales, to convey storm water runoff to the ocean and prevent it from becoming part of the groundwater. • Install hydraugers to extract underground artesian water and reduce pressure to slow down landslide movement. The preliminary design was prepared based upon geological, hydrogeological, and geotechnical information available from previous site -specific studies. The preliminary design was completed to a 35-60% design level to support preparing the required environmental document and serve as a basis for final engineering. After considering public testimony, the City Council accepted the preliminary design and directed Staff to proceed with preparing the environmental documents required by the California Environmental Quality Act (CEQA). Environmental Impact Report On May 19, 2020, the City began work on preparation of environmental documents. An Initial Study (IS) was prepared, which concluded that an Environmental Impact Report (EIR) was necessary to meet CEQA requirements. The purpose of an EIR is to identify the significant effects on the environment of a project, to identify alternatives to the project, and to indicate the manner in which those significant effects can be mitigated to a less than significant level or avoided. The EIR evaluates and mitigates a reasonable worst-case scenario of potential impacts associated with the proposed project. It is an informational document for the lead agency and other public agencies, the general public, and decision makers regarding the potential environmental impacts from construction and operation of the proposed project. On December 19, 2020, the City Council conducted a public hearing to receive public comments regarding the issues to be addressed in the EIR. The EIR was scoped to study various environmental impacts based on the project description and objectives. The Draft EIR was completed and released on February 9, 2023 for public review and comment for a 64-day period through April 14, 2023. CEQA requires a comment period of no less than 30 days and not longer than 60 days except under unusual circumstances. The City elected to give 60 days to allow maximum public participation. However, 60 days would have been the day following Easter and might have excluded some persons from commenting. Therefore, the City extended the comment period a few days beyond the 60 days. 3 On March 21, 2023, the City Council conducted a public hearing to provide information about the Draft EIR and solicit public comments regarding issues and concerns with the document. At the close of the comment period, the City received a total of 45 comment letters on the Draft EIR, each of which covered a variety of topics. The comments included letters from federal agencies, state agencies, various organizations, interested parties, and the general public. Some comment themes were not relevant to the EIR process. For example, comments about funding, increasing the scope and coverage area of the project, and treating and re-using water extracted by hydraugers. Some comments urged the City to engage to a greater extent with stakeholders including the PVPLC and affected homeowners. Many of the comments called for additional analysis and revisions to the preliminary design, the most prominent of which include: • Native Plants and Habitat o Detail how proposed plantings would be viable including the appropriate plant establishment period. • Hydraugers: o Determine if hydrauger battery A5 could be eliminated by installing additional pipes drilled from hydrauger battery A6. • Drainage Swales o Determine if the footprint of the drainage swales footprint can be reduced . o Revise the design of the surface drainage system including canyon transitions, swale slopes, geo-liners, and planting to use the most habitat friendly details and to allow for combined drainage and recreational uses wherever possible. • Flow Reduction Basin o Determine if the flow reduction area can be significantly reduced in size or eliminated entirely. • Constructing Phasing o Revise the project design to a phased approach that consists of installing one hydrauger and studying its effectiveness, then proceeding with additional hydraugers if needed, then installing the surface drainage system if needed. Additionally, many comments were about final engineering details which are not available as part of the preliminary design, the most prominent of which are: • Construction Logistics and Trail Management o Provide a detailed construction logistics plan including staging, storage, and access details. o Provide a detailed construction trail use management plan including planned trail closures or restrictions along with signage , fencing, and other details. • Maintenance Logistics and Trail Management o Provide a detailed maintenance logistics plan, including staging, storage, and access details. 4 o Provide a detailed maintenance trail use management plan including planned trail closures or restrictions along with signage, fencing, and other details. o Provide a plan for filling fissures that may develop after construction completion. Finally, some comments questioned the original basis of design from the Updated Feasibility Study and preliminary design accepted by the City Council, and asked for additional analysis and information, the most prominent of which are: • Hydraugers: o Quantify the contributory reduction in land movement expected for each hydrauger battery. o Justify the location of each hydrauger battery and explain why it is the optimal location to achieve the project goals; describe other locations that were considered and why they were not selected. o Explain why hydrauger batteries will not cause landscape deformation including in and outside of the landslide area. o Quantify the total water expected to be produced by each hydrauger battery. o Describe the minimum water quality criteria for discharge of water to the ocean and explain the process for disposing of water that does not meet minimum water quality criteria. • Drainage Swales o Quantify the contributory reduction in land movement expected for the surface drainage swales. o Demonstrate that the geographic scope of the hydrologic and hydraulic study includes the entire watershed needed for the project. • Flow Reduction Basin o Quantify the contributory reduction in land movement expected for the flow reduction area. Explain the methodology and assumptions. o Describe any risk for landslide movement due to excess weight in the flow reduction area. • Fissure Infilling o Quantify the contributory reduction in land movement expected for the fissure infilling. • Other o Explain the contribution of uphill septic tanks and irrigation systems to the land movement. Stakeholder Meetings The City and its consultant team met with the following stakeholders to gain a better understanding of their Draft EIR comments: • PVPLC • U.S. Fish and Wildlife Service • California Department of Fish and Wildlife • Sierra Club • California Native Plant Society 5 • Surfrider Foundation • Portuguese Bend Beach Club Homeowners Association On August 15, 2023, at the request of the Councilmember Bradely, Staff presented an update to the City Council detailing comments received in response to the DEIR. The City Council directed Staff to return with professional services agreements (PSAs) to proceed with final engineering while determining if the project can be modified to reduce the footprint of the flow reduction area and drainage swales, maximize their ability to support native habitat, and relocate hydrauger batteries to areas that minimize impacts on native habitat. Tonight, the City Council is being asked to consider the PSA’s associated with completing the final engineering for the project, as discussed below. DISCUSSION: Final Engineering Staff solicited a proposal for final engineering services from Geo-Logic Associates, Inc. (GLA), the parent company of DB Stephens, for final engineering and associated services. Staff solicited the proposal from GLA because its work on the preliminary design and support of the DEIR places it in a position of unique knowledge of the design and specific project issues. Therefore, Staff recommends entering into a PSA with GLA for final engineering because it is the firm most likely to complete the work quickly and cost- effectively. Final engineering typically advances the preliminary/concept design to a stage where construction bids can be solicited. In this case, to respond to some of the DEIR comments in accordance with City Council direction, final engineering will also include validation of the preliminary/concept design and analysis to determine if certain revisions can be made. As part of final engineering, GLA will sub-contract with an independent third-party quality control technical reviewer who is a nationally recognized academic expert in computational geotechnics and landslide mitigation. Final engineering includes the following key components: • Project Outcome Measures o Quantify the expected mitigation outcome in terms of landslide displacement. o Establish success metrics for hydraugers, surface drainage features, and fissure infill. o Estimate the relative contribution of each mitigation component on landslide movement. o Estimate the contribution of septic tanks and other elements (i.e. irrigation) on landslide movement. • Survey o Re-survey the project area to capture changes due to land movement and produce an updated topographic map including the current functional status of pipes in the area. 6 o Re-survey fissure locations and sizes just prior to soliciting construction bids to capture the most current status before the start of construction. • Concept Plan Validation o Update the PBL 3D seepage/artesian pressure model using the updated survey information and incorporating changes to the project resulting from the DEIR process (including modifications to the original hydrauger battery concept). The results of the update will be used for sizing of the hydraugers. o Update the PBL 3D slope stability model using the updated survey information and incorporating changes to the project resulting from the DEIR process (including modifications to the original hydrauger battery concept). The results of the update will be used to complete final engineering of hydrauger batteries. o Evaluate the effect of surface water loading from the flow reduction area (if not eliminated) on landslide stability. o Evaluate the effect of heavy equipment on landslide stability. • Final Design Criteria o Establish final design criteria including storm size for the surface drainage system, minimum water quality discharge standard, and materials for various features. • Final Engineering of Fissure Infilling o Update the fissure infilling plan based on updated survey information. • Final Engineering of Drainage Swales and Flow Reduction Area o Update the hydrology and hydraulics (H&H) calculations used for the drainage swale concept design. o Determine if the size of the drainage swales can be reduced per the updated (H&H) calculations. o Determine if the flow reduction area can be reduced in size or eliminated based on the updated (H&H) calculations and design storm. Identify other drainage improvements that would be necessary to eliminate or reduce the size of the flow reduction area. If the flow reduction area is required, determine the drainage time for multiple scenarios. o Simulate an event exceeding the design storm and identify potential impacts on the surrounding area. o Develop context sensitive designs for the drainage swales and flow reduction area (if not eliminated) including native vegetation to the extent possible. This effort will be in collaboration with the PVPLC with the goal of reaching a mutually agreeable planting palette. o Detail all components of the surface drainage system including planting and materials selection. o Provide evidence that proposed plantings would be viable, including a plant establishment period. o Determine if drainage swales could serve a mutual purpose as trails to reduce the overall project footprint. 7 • Final Engineering of Hydrauger Batteries o Develop aesthetically acceptable designs for the hydrauger battery wing walls and water storage tanks. o Identify beneficial uses of discharged groundwater. • Construction Plans, Specifications, and Cost Estimates o Prepare 60%, 90%, and 100% construction drawings, specifications, cost estimates, contract special provisions, and related documents for the project. This will include addressing comments from the independent third - party quality control review as well as the City’s quality assurance review at each stage. o Prepare construction logistics plans detailing storage and staging locations as well as temporary access routes. o Prepare construction trail use and management plans specifying trail closures, signage, fencing, and traffic control details. • Design Validation During Construction o Develop a plan to confirm modeling and design assumptions during construction. This plan will include boreholes and instruments to measure the groundwater table, basal failure surface elevations, and artesian pressure. The plan will enable estimating the volume and quality of groundwater and will serve as a basis of comparison for post-construction conditions. o Develop a sequence of construction plan including using feedback from each hydrauger battery to confirm assumptions or make modifications to the next hydrauger battery. • Post Construction Plans o Develop a post-construction monitoring plan. o Develop a post-construction maintenance plan including access, storage, and staging. o Develop a post-earthquake repair plan (for minor damage). GLA will also study the possibility of implementing short-term mitigation measures in advance of the measures identified in the preliminary/concept plan. If such measures are determined to be viable, they will be presented to the City Council for considera tion. It is important to note that implementing any construction activity in the project footprint before finalization of the FEMA grant agreements (see Additional Information) could have implications on grant funding eligibility. If that is the case, the implications will be presented along with the measures for consideration. In addition to the above key final engineering components, Staff will direct GLA to prepare responses to various questions raised during the DEIR that may not be answered in the final engineering plans. EIR Support On September 20, 2022, the City entered into a PSA with LSA Associates, Inc. (LSA) to complete the EIR for the project (originally started by Chambers Group, Inc.) based on the preliminary/concept design. Because the final engineering process may result in revisions to the project design to reduce the environmental footprint of the project , 8 additional work will be needed for the EIR process. Staff recommends amending the PSA (Amendment No. 1) with LSA to provide environmental support services during the final engineering process. Environmental support services include the following key components: • Consult on environmental constraints to be considered as part of design revisions. • Provide recommendations on swale designs and other features. • Recalculate impacts on resources, including biological resources, within the revised project footprint. • Assess the final engineering plans in comparison to the project description and impact analysis in the DEIR and accordingly recommend the appropriate CEQA path. • Prepare regulatory agency permit applications. • Prepare materials and attending meetings with stakeholders (including on -site meetings) Because the extent of design revisions (if any) is not known at this time, it is not possible to determine if there will be a need for revised DEIR technical reports, substantial revisions to the DEIR, or changes to the DEIR processing. Therefore, revised technical reports and substantial revisions to the DEIR are not included in the scope of work of the PSA with LSA. Upon conclusion of the design revisions, should revisions to the technical studies or DEIR be necessary, an amendment to the PSA with LSA will be presented to the City Council for consideration. Project Management On February 15, 2022, the City entered into a PSA with Hout Construction Services, Inc., DBA Hout Engineering (Hout) to provide program management services for the PBL Remediation Project. The HCS team, including various sub-consultants, consists of professionals and industry experts with in-depth experience in project management, environmental services, surveying, civil engineering, geotechnical engineering, and landslide remediation. The scope of services with Hout included project management through completion of the EIR based on the preliminary/concept design. Hout’s scope did not include project management for revisions to the preliminary/concept design or project management through the final engineering phase. Staff recommends entering into a new PSA with Hout to provide project management services to oversee final engineering and to assist the City with technical and peer review of GLA work product. This includes a detailed review of all reports, plans, specifications, cost estimates, and other project documents through the final engineering phase. Hout will provide the City with quality assurance which is a second layer of review in addition to the quality control performed by GLA. Staff recommends entering into a PSA with Hout for these services because as a contract City, the Public Works Department (PW) does not have the resources or personnel to effectively manage the Project while also providing other basic public works services. 9 Additionally, PW does not have the range of expertise, including but not limited to environmental science, surveying, civil engineering, geotechnical engineering, and landscape architecture to properly review GLA’s work product and assure that the City’s best interests are achieved. A new PSA is recommended rather than an amendment to the existing PSA because the existing PSA covers multiple projects, some of which have been completed; therefore, a new PSA will be more efficient from a contract management perspective. Absent a qualified project management firm, it is extremely unlikely that PW could progress the Project in a timely manner while also providing other basic services. Project management services include the following key components: • Peer review and provide recommendations on the project outcome measures, design criteria, success metrics, survey, H&H calculations, updated 3D seepage/artesian pressure model, 3D slope stability model, and final design report. • Quality assurance review of 60%-90%-100% plans, specifications, special provisions, and cost estimates. • Peer review of post construction monitoring and maintenance plans. • Facilitate resolving public comments on the DEIR and manage completion of the EIR. • Manage scope, schedule, and budget of GLA and LSA. • Coordinate with stakeholders, prepare materials for meetings, and manage documents. Stakeholder Coordination The final design process for this project is envisioned to occur in collaboration with the PVPLC, surrounding homeowners associations (HOAs), permit agencies, and other stakeholders and interest groups. GLA will prepare design information and submit it to the City for review. After an initial review, the City will then collaborate with stakeholders and consider modifications to the design based on discussions with stakeholders. Ultimately, it is possible that modifications requested by stakeholders may not be compatible with project objectives. If that is the case, Staff will present a design that prioritizes the project objectives to the City Council for consideration. Cost Estimate The professional services fees for final engineering and associated services are typically developed using an approved preliminary/concept plan. However, because there may be substantial revisions to the preliminary/concept plan, the professional services work for some components of final engineering and associated services are difficult to quantify. Accordingly, the professional services fees are based on budget line items with established rates for categories of various professionals that will be working on the Project. Staff anticipates that the Project Officer will need to increase some budget line items and decrease other budget line items throughout the project, but that the total fees will be sufficient, particularly when factoring in contingencies. 10 The GLA fee for final engineering and associated services is $1,460,000 plus a 15% contingency of $219,000, for a total cost of $1,679,000. The LSA fee for the environmental impact report revisions and associated services is $141,917 plus a 15% contingency of $21,288, for a total cost of $163,205. The Hout fee for project management, peer review, and associated services is $393,784, plus a 15% contingency of $59,068, for a total cost of $452,852. It is possible that some or all of the professional services fees will be reimbursed by grant funds (see Additional Information). However, verification of eligibility will not occur until after the grant award process is completed. The Capital Improvement Program (CIP) current budget includes a committed amount of $1,419,767 in the CIP Fund. The total of the recommended PSAs is up to $2,295,056. Additionally, approximately $50,000 is expected to be needed for professional services related to drainage and trail repairs in the landslide area. Therefore, Staff is requesting an additional appropriation of $925,289. Table 1 shows a budget summary of the project. Table 2: Retaining Wall Repairs at 3001 Crest Rd Budget Summary Table Upon completion of the final engineering stage, additional professional services will be needed. These including bidding services, construction engineering, construction management and inspection services, etc. Costs for those services can be better quantified upon completion of the final engineering stage. Accordingly, additional PSAs will be brought for consideration by the City Council at a future date. Schedule The current schedule for completion of the final design documents and presentation of a final EIR for City Council consideration is tentatively September 2024. The schedule is very aggressive and has been accelerated to the extent possible by starting certain tasks and sub-tasks that are dependent on a prior task by using any available information from that prior task to progress the ensuing task to the extent possible. ADDITIONAL INFORMATION: Building Resilient Infrastructure and Communities (BRIC) Grant The proposed project is estimated to cost approximately $33 million based on an estimate prepared in 2019 using the preliminary/concept plan. The estimate included contingencies and accounted for inflation to a projected construction start date which at the time had been forecast as 2024. 11 Concurrently with development of the Draft EIR, the City submitted an application to the Federal Emergency Management Agency (FEMA) for a BRIC grant in the amount of $23.3 million, accounting for a non-federal match of $10 million to increase competitiveness of the application. On August 28, 2023, FEMA announced that the project was selected for the BRIC grant. The City must certify the EIR and meet other requirements before any funds will be disbursed. Grant funds are expected to become available in two to three years, assuming the EIR is certified. CONCLUSION: Staff recommends the City Council award a PSA to GLA for final engineering and associated services in the amount of $1,460,000, plus a 15% contingency of $219,000, for a total cost of $1,679,000. The final engineering scope includes validation of the preliminary/concept design and analysis to determine if certain revisions can be made in response to DEIR comments, as well as advancing the engineering design to a stage where construction bids can be solicited. Staff recommends the City Council award a PSA to LSA for environmental consulting services for revisions to the project design and associated services in the amount of $141,917 plus a 15% contingency of $21,288, for a total cost of $163,205. The environmental work includes assessing the environmental impacts of design revisions and advising the City on CEQA compliance. Staff recommends the City Council award a PSA to Hout for project management , peer review, and associated services in the amount of $393,784 plus a 15% contingency of $59,068, for a total cost of $452,852. The project management work includes management of the project scope, schedule, and budget, as well as technical review of all project documents across the range of project disciplines. ALTERNATIVES: In addition to Staff recommendations, the following alternative actions are available for the City Council’s consideration: 1. Do not approve one or all of the proposed PSAs for final engineering and associated services, and direct staff to solicit new proposals for consideration. This will result in delaying the start of final engineering by approximately 3-6 months. 2. Take other action, as deemed appropriate. 12