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CC SR 20240521 D - Environmental Sciences Associates PSA Amendment No. 4 CITY COUNCIL MEETING DATE: 05/21/2024 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to approve Amendment No. 4 to the Professional Services Agreement with Environmental Sciences Associates to provide continued environmental support for the City’s 6th Cycle Housing Element. RECOMMENDED COUNCIL ACTION: (1) Approve Amendment No. 4 to the Professional Services Agreement (PSA) with Environmental Sciences Associates (ESA) to increase the agreement amount by $5,800 with a contingency of $5,000 for a new contract sum of $329,239 and extend the agreement term to September 30, 2024 to provide continued environmental support for the City’s 6th Cycle Housing Element; and, (2) Authorize the Mayor and City Clerk to execute Amendment No. 4 to the PSA with ESA in a form approved by the City Attorney. FISCAL IMPACT: The proposed amended PSA for $10,800 is included in the FY 2023- 24 Council-adopted budget in the Planning Division’s Professional Technical Services. Amount Budgeted: $250,000 Additional Appropriation: N/A Account Number(s): 101-400-4120-5101 (General Fund – Planning Division/Professional Services) VR ORIGINATED BY: Jessica Bobbett, Senior Planner REVIEWED BY: Brandy Forbes, Director of Community Development APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Amendment No. 4 to Professional Services Agreement with ESA (page A-1) B. ESA Amendment No. 4 Request Letter (page B-1) 1 RANCHO PALOS VERDES BACKGROUND: On March 2, 2021, the City Council approved a one-year PSA with ESA to complete the City’s 2021-2029 Housing Element Update of the City’s General Plan, with an option to renew one additional year, at a contract sum of $238,749. On July 19, 2022, the City Council approved Amendment No. 1 to the PSA with ESA to increase the agreement amount by $29,340 for a new contract sum of $268,089 and to increase the term to August 31, 2023, to complete updates to the Housing Element (one of several elements that make up the City’s General Plan). On August 11, 2022, the City Council adopted the City’s 2021-2029 Housing Element and associated environmental analysis, which included the preparation of a Negative Declaration. Subsequently, the document was submitted to the California Department of Housing and Community Development (HCD) for review for compliance with state law. On October 14, 2022, HCD informed the City’s Planning Division that although the City’s adopted Housing Element addressed many of the statutory requirements, which HCD requested, additional revisions are being requested to ensure compliance with state housing element law. On June 20, 2023, the City Council approved Amendment No. 2 to the PSA with ESA to increase the agreement amount by $14,000 with a contingency of $6,000 for a new contract sum of $288,089, extend the term to December 29, 2023, and augment the scope of work to update the City’s 2021-2029 Housing Element in response to the comments received by HCD. On September 14, 2023, the City’s Community Development Department submitted a revised 2021-2029 Housing Element to HCD addressing its comments and initiating a 60- day review of the revised document. On October 10, 2023, ESA submitted a proposal to reevaluate and augment, as needed, the environmental analysis prepared for the City’s 2021-2029 Housing Element in anticipation of revisions and updates requested by HCD. On November 14, 2023, the City Council approved Amendment No. 3 to the PSA with ESA to increase the agreement amount by $30,350 with a contingency of $5,000 for a new contract sum of $318,439, extend the term to May 31, 2024, and augment the scope of work to update the City’s 2021-2029 Housing Element in response to the comments received by HCD. On April 16, 2024, the City Council adopted the Revised Final Housing Element and associated implementation measures, which included Addendum No. 1 to the previously prepared Negative Declaration. City Staff subsequently submitted the adopted documents to HCD for a 60-day compliance review with State Housing Law. The adoption of the Housing Element and implementation measures were a result of the assistance and expertise provided by ESA. DISCUSSION: 2 On May 8, 2024, ESA submitted a proposal to extend the contract, in order to complete the work outlined in the PSA. Given that the environmental review process has been more involved than ESA originally scoped due to both HCD requirements and input, ESA submitted PSA amendment request No. 4 (Attachment B) to increase the agreement amount by $10,800 and to extend the term to September 30, 2024. The augmented ESA scope of work includes tasks to finalize the Housing Element update process including, updating the electronic sites inventory to submit to HCD; preparing a final clean copy of the Housing Element; and to provide any necessary environment al support in conjunction with the adoption of the ordinances necessary to effectuate the adopted Housing Element. The amendment includes a $5,000 contingency in the event that HCD requests further revisions prior to certification and/or additional input is necessary for the adoption of the ordinances that will implement the Housing Element. The contingency amount would only be utilized upon authorization by Staff, if needed. Staff believes ESA’s request is appropriate given the extended timelines to adopt and receive certification for the City’s 6th Cycle Housing Element. CONCLUSION: Given the need for these services, Staff recommends the City Council approve Amendment No. 4 to the PSA with ESA and to authorize the Mayor and City Clerk to execute Amendment No. 4 in a form approved by the City Attorney. ALTERNATIVES: In addition to the Staff recommendation, the following alternative action s are available for the City Council’s consideration: 1. Do not approve Amendment No. 4 to the PSA with ESA and provide additional direction to Staff. 2. Take other action, as deemed appropriate. 3 AMENDMENT NO. 4 TO AGREEMENT FOR CONTRACTUAL SERVICES THIS AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES (Amendment No. 4) by and between the CITY OF RANCHO PALOS VERDES, a California municipal corporation (City), and ENVIRONMENTAL SCIENCES ASSOCIATES, a California corporation (Consultant), and is effective as of May 21, 2024. RECITALS A. City and Consultant entered into that certain Agreement for Professional Services dated March 2, 2021 (“Agreement”) whereby Consultant agreed to provide professional services to complete the City’s 2021-2029 Housing Element Update of the City’s General Plan (“Services”) through March 2, 2022, for a Contract Sum of $238,749.48. B. Pursuant to Section 3.2 of the Agreement, the Consultant requested an extension of the time period specified in the Schedule of Performance and the City provided written notice on April 27, 2022, authorizing continuation of services through August 27, 2022. C. Based on significant changes required to this cycle’s Housing Element, the California Department of Housing and Community Development (HCD) provided the City with significant comments, and finalizing the Housing Element has taken more time than anticipated. D. On July 19, 2022, the City Council amended the Agreement (“Amendment No. 1”) to extend the Term by one year through August 31, 2023, and to increase compensation by $29,340 for a new Contract Sum of $268,089.48. The fee increase included a $10,000 contingency in the event that the consultant was required to address additional rounds of revisions based on HCD comments prior to the certification of the Housing Element. The contingency amount would only be utilized upon authorization by the City’s Contract Officer. The City’s Contract Officer authorized use of the contingency. E. On June 7, 2023, the City Council amended the Agreement (“Amendment No. 2”) to extend the Term through December 29, 2023, and increase compensation by $20,000 for a new Contract Sum of $288,089.48. Such an increase in the Contract Sum included a $6,000 contingency in the event that the consultant was required to address additional rounds of revisions based on HCD comments prior to the certification of the Housing Element. The contingency amount would only be utilized upon authorization by the City’s Contract Officer. The City’s Contract Officer authorized use of the contingency. F. On November 14, 2023, the City Council amended the Agreement (“Amendment No. 3”) to extend the Term through May 31, 2024, and increase compensation by $30,350 for a new Contract Sum of $318,439.48. Such an increase in the Contract Sum included a $5,000 contingency in the event that the consultant was required to address additional rounds of revisions based on HCD comments prior to the certification of the Housing Element. The contingency amount would only be utilized upon authorization by the City’s Contract Officer. The City’s Contract Officer authorized use of the contingency. A-1 01203.0005/982123.1 -2- G. The environmental review has been more involved than ESA originally scoped due to both HCD requirements and input, therefore, City and Consultant now desire to further amend the Agreement to extend the Term through September 30, 2024, and increase compensation by $10,800 for a new Contract Sum of $329,239.48. Such increase in the Contract Sum includes a $5,000 contingency in the event that the consultant is required to address additional rounds of revisions based on HCD comments and to provide additional environmental review prior to the certification of the Housing Element. The contingency amount will only be utilized upon authorization by the City’s Contract Officer. TERMS 1. Contract Changes. The Agreement is amended as provided herein. Deleted text is indicated in strikethrough and added text in bold italics. a. Section 2.1, Contract Sum, is amended to read: “The total compensation, including reimbursement for actual expenses, shall not exceed $318,439.48 (Three Hundred Eighteen Thousand Four Hundred Thirty Nine Dollars and Forty Eight Cents)$329,239.48 (Three Hundred Twenty Nine Thousand Two Hundred Thirty Nine Dollars and Forty Eight Cents) the “Contract Sum”, unless additional compensation is approved pursuant to Section 1.9.” b. Section 3.4, Term, is amended to read: Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding the date hereof May 31, 2024, September 30, 2024, except as otherwise provided in the Schedule of Performance ( Exhibit D"). c. Section I of Exhibit “C” Schedule of Compensation, is amended to read: I. Consultant shall perform the following tasks at the following rates” TASK CONSULTANT COSTS SUBCONSULTANT BAE COSTS SUBCONSULTANT MBI COSTS A. Project Administration 1. Project Kick-Off Meeting $1,440 $1,610 2. Project Schedule Development $960 $1,140 3. Project Coordination $20,880 A-2 01203.0005/982123.1 -3- TASK CONSULTANT COSTS SUBCONSULTANT BAE COSTS SUBCONSULTANT MBI COSTS B. Housing Element Amendment Assessment and Analysis 1. Evaluation of 2013-2021 Housing Element $6,310 2. Housing Assessment and Needs Analysis $28,460 3. Adequate Sites Analysis $8,360 4. Housing Production Constraints Analysis $8,360 5. Housing Goals, Policies, and Quantified Objectives $6,340 C. Public Engagement $3,480 1. Public Outreach Program Development and Two Community meetings $3,610 $27,083.64 2. Stakeholder Interview $3,610 $17,694.38 D. Planning Commission and City Council Workshops $3,480 $6,245 $4,916.84 E. Draft 2021-2029 Housing Element Update 1. Administrative Draft Housing Element Update $4,880 2. Public Draft Housing Element Update $3,060 3. Public Noticing $390 A-3 01203.0005/982123.1 -4- TASK CONSULTANT COSTS SUBCONSULTANT BAE COSTS SUBCONSULTANT MBI COSTS F. General Plan Consistency and Environmental Review $6,276.22 1. General Plan Amendment $3,260 2. Environmental Determination $4,780 3. Draft Initial Study/Mitigated Negative Declaration $17,860 4. Environmental Noticing, Outreach, and Filing $3,880 5. Final IS/MND $10,920 6. Addendum $25,350 G. Public Hearings $6,960 $4,100 $3,163.40 H. Final Housing Element Update $34,280 I. State Certification and City Adoption $2,050 J. Printing, travel, postage, etc. $1,250 $1,500 $9,000 K. Meeting Platform Hosting (Zoom, GoToWeb, Teams, etc.) $500 Contingency** $6,000$5,000 $21,000$26,000 Total $125,500$136,300 $124,305 $68,634.48 TOTAL $288,089.48$329,239.48 A-4 01203.0005/982123.1 -5- ** Contingency shall not be used without written authorization from the City’s Contract Officer. 2. Continuing Effect of Agreement. Except as amended by Amendment Nos. 1 through 3, all provisions of the Agreement, as amended, shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment Nos. 1 through 4 to the Agreement. 3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Contractor each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement, as amended. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement, as amended, other than as provided herein. Each party represents and warrants to the other that the Agreement, as amended, is currently an effective, valid, and binding obligation. Contractor represents and warrants to City that, as of the date of this Amendment No. 4, City is not in default of any material term of the Agreement, as amended, and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement, as amended. City represents and warrants to Contractor that, as of the date of this Amendment No. 4, Contractor is not in default of any material term of the Agreement, as amended, and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement, as amended. 4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 4. 5. Authority. The persons executing this Amendment No. 4 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 4 on behalf of said party, (iii) by so executing this Amendment , such party is formally bound to the provisions of this Amendment, as amended, and (iv) the entering into this Amendment No. 4 does not violate any provision of any other agreement to which said party is bound. [SIGNATURES ON FOLLOWING PAGE] A-5 01203.0005/982123.1 -6- IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written. CITY: CITY OF RANCHO PALOS VERDES, a municipal corporation ____________________________________ John Cruikshank, Mayor ATTEST: _________________________________ Teresa Takaoka, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP _________________________________ Elena Q. Gerli, City Attorney CONSULTANT: ENVIRONMENTAL SCIENCES ASSOCIATES, a California corporation By: Name: Albert Cuisinot Title: Chief Financial Officer By: Name: Ruta K. Thomas Title: Senior Vice President Address: 626 Wilshire Blvd. Suite 100, Los Angeles, CA 90017 Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONTRACTOR’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY. Albert Cuisinot (May 13, 2024 15:56 PDT) A-6 j ~ 01203.0005/982123.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF LOS ANGELES On __________, 2024 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. A-7 □ □ □ □ □ □ □ □ □ 01203.0005/982123.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF LOS ANGELES On __________, 2024 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. A-8 □ □ □ □ □ □ □ □ □ 626 Wilshire Boulevard Suite 1100 Los Angeles, CA 90017 213.599.4300 phone 213.599.4301 fax esassoc.com May 9, 2024 Octavio Silva Deputy Director of Community Development City of Rancho Palos Verdes 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90275 Subject: Rancho Palos Verdes Housing Element Update –Contract Amendment Request #4 Dear Octavio: As you are aware, the ESA team has been working on the City’s Housing Element Update and the associated environmental analysis per our amended contract dated November 14, 2023, with a total budget of $318,439.48 (original contract amount plus Amendments 1, 2, and 3 including the associated contingency). With respect to the terms of the Professional Services Agreement, in light of the extended timeline for the project, ESA requests that the contract be extended until September 30, 2024, in order to allow time to complete the work outlined in Exhibit D of the Professional Service Agreement between the City and ESA. There is some remaining ESA budget in tasks that have been completed. These amounts, which total $12,622.50, will be reallocated to cover the majority of the expenditures for the completion of the more extensive scope of the Addendum that ESA prepared to evaluate the revised Housing Element and General Plan and Zoning amendments to implement the Housing Element. In addition, while the City Council adopted the Addendum, the revised Housing Element, and the urgency ordinances on April 16, 2024, there are still a few remaining tasks for which budget is needed. The following provides the additional tasks and budget amendment request for the completion of the Housing Element: Task 6, Subtask 6 Addendum (ESA) ESA requests budget to cover additional hours needed to complete the Addendum. In addition, the Mixed Use Overlay District (MUOD) and Residential Overlay District (ROD) were adopted as urgency ordinances by the City Council. The City will be taking further action regarding the adoption of these ordinances as well as other necessary amendments to implement the adopted Housing Element. ESA will coordinate with City staff through the process to provide any necessary environmental support. This amendment request assumes 6 hours of staff time. Task 6 Augment: $2,800 Task H, Final Housing Element Update (BAE): BAE will prepare the updated electronic sites inventory and coordinate with City staff. BAE will prepare a final clean Housing Element, incorporating any final revisions necessary based on coordination with City and HCD staff, in order for the City to receive certification of the Housing Element. B-1 r ESA _....4 Octavio Silva May 9, 2024 Page 2 Task H Augment: $3,000 Contingency: While the City Council adopted the revised Housing Element, which incorporated HCD input, ESA suggests the inclusion of a contingency budget in the event that HCD requests further revisions prior to certification and/or additional support is necessary for the adoption of the ordinances that will implement the Housing Element. At this point and given where the City is in the process, ESA suggests a contingency of $5,000 for additional work that may be needed. Based on the above, ESA is requesting an additional $5,800 to complete the process. With the contingency request of $5,000, which will only be used upon City authorization, the budget amendment request is $10,800, bringing the total contract amount to $329,239.48. Should you have any questions, please feel free to contact me at (310) 266-8331. Sincerely, Luci Hise-Fisher, AICP Project Manager B-2