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CC SR 20241001 G - ESA PSA Amendment CITY COUNCIL MEETING DATE: 10/01/2024 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to approve an amendment to the Professional Services Agreement with Environmental Sciences Associates to provide environmental services for the City’s 6th Cycle Housing Element. RECOMMENDED COUNCIL ACTION: (1) Approve Amendment No. 5 to the Professional Services Agreement (PSA) with Environmental Sciences Associates (ESA) to extend the agreement term to September 30, 2025 to provide continued environmental support services for the City’s 6th Cycle Housing Element; and (2) Authorize the Mayor and City Clerk to execute Amendment No. 5 to the PSA with ESA in a form approved by the City Attorney. FISCAL IMPACT: There is no fiscal impact, as the request is solely to extend the agreement term to September 30, 2025 with no additional budget request at this time. There is approximately $18,802 remaining in the ESA contract budget. 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. 5 to Professional Services Agreement with ESA (page A-1) B. ESA Amendment No. 5 Request Letter (page B-1) 1 CITYOF RANCHO PALOS VERDES fPJ 4 BY 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, for a contract sum of $238,749. On July 19, 2022, the City Council approved Amendment No. 1 to the PSA with ESA to increase compensation by $29,340 for a new contract sum of $268,089 and to extend 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 that HCD requested, additional revisions were being requested to ensure compliance with the state’s housing element law. In response to the comments received by HCD and make the necessary revisions, the City Council, on June 20, 2023, approved Amendment No. 2 to augment the scope of work to update the City’s 2021-2029 Housing Element, increase compensation accordingly by $14,000 (with a contingency of $6,000) for a new contract sum of $288,089, and extend the term to December 29, 2023. On September 14, 2023, the 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 compensation by $30,350 (with a contingency of $5,000) for a new contract sum of $318,439, to extend the term to May 31, 2024, and to augment the scope of work to update the City’s 2021-2029 Housing Element in response to additional comments received by HCD. On April 16, 2024, the City Council adopted the revised Housing Element, Land Use Element, and Land Use Map, and approving the Addendum to the previously prepared Negative Declaration (Resolution No. 2024-16 and Resolution No. 2024-17), and adopted Urgency Ordinance No. 678U, adopting the Zoning Code amendments required by Program 1 of the Housing Element. 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 2 expertise provided by ESA. The April 16, 2024 City Council staff report for the consideration of the Revised Final Housing Element is available for review. On May 21, 2024, the City Council approved Amendment No. 4 to the PSA with ESA to increase compensation by $5,800 (with a contingency of $5,000) for a new contract sum of $329,239, to extend the term to September 30, 2024, and to augment the scope of work to finalize the Housing Element update process. This work included: updating the electronic sites inventory to submit to HCD, preparing a final clean copy of the Housing Element, and providing any necessary environmental support in conjunction with the adoption of the regular ordinances necessary to effectuate the adopted Housing Element. On June 4, 2024, City Council adopted Urgency Ordinance No. 680U which amended Title 17 (Zoning) to effectuate the Revised Final 2021 -2029 Housing Element, incorporating non-substantive revisions that were recommended by HCD. The City Council also introduced Ordinance No. 681 to amend Title 17 (Zoning) to effectuate the Revised Final 2021-2029 Housing Element by regular ordinance. On June 18, 2024, as part of the second reading of Ordinance No. 681, at the request of Mayor Pro Tem Alegria and Councilmember Bradley, the City Council directed Staff to evaluate properties that could be removed from the Housing Sites Inventory while remaining in compliance with state housing laws. The City Council directed Staff to reassess the Housing Sites Inventory, in response to a statement made by HCD’s Analyst Fidel Herrera that the City exceeded its RHNA. A copy of the June 18, 2024 City Council staff report is available for review. Following an evaluation of the Housing Sites Inventory, the City Council, on September 3, 2024, directed staff to assess potentially removing Site Nos. 16 (Clipper Road lot), 18 (vacant lot adjacent to UCLA site), and 19 (UCLA site) from the Housing Sites Inventory. As a result, Staff must prepare a draft amended Housing Element to remove the specific sites for HCD formal review to determine if the removal of the specific site(s) would still allow the Housing Element to be in compliance with State Housing Laws. A copy of the September 3, 2024 City Council staff report is available for review. DISCUSSION: Upon submittal to HCD of proposed draft amendments to the Council-approved Housing Element, Staff may receive further direction from HCD that may require additional environmental support and may require consultation with ESA to provide an appropriate response. On September 16, 2024, ESA submitted a proposal to extend the contract in order to provide ongoing environmental input and support services on an as-needed basis to the City. ESA submitted PSA amendment request No. 5 (Attachment B) to extend the term by an additional year from September 30, 2024 to September 30, 2025. At this time, the amendment does not require any revisions to the budget or adjustment in scope of work. There is approximately $18,802 remaining in the ESA contract budget; should additional funds be necessary, staff will return to Council for approval. 3 Staff believes ESA’s request is appropriate given the direction from City Council to consider amendments to the City’s adopted 2021-2029 Housing Element. CONCLUSION: Given the need for these services, Staff recommends the City Council approve Amendment No. 5 to the PSA with ESA and to authorize the Mayor and City Clerk to execute Amendment No. 5 in a form approved by the City Attorney. Approval of Amendment No. 5 would solely extend the term of the agreement by an additional year (through September 30, 2025) should ESA’s services be required in the future. 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. 5 to the PSA with ESA and provide additional direction to Staff. 2. Take other action, as deemed appropriate. 4 AMENDMENT NO. 5 TO AGREEMENT FOR CONTRACTUAL SERVICES THIS AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES (Amendment No. 5) 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 October 1, 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 by one year through December 29, 2023, and increase compensation by $20,000 for a new Contract Sum of $288,089.48. Such 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 by one year through May 31, 2024, and increase compensation by $30,350 for a new Contract Sum of $318,439.48. Such 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 -2- 01203.0005/1016389.2 G. On May 21, 2024, the City Council amended the Agreement (“Amendment No. 4”) to extend the Term by one year 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. H. On September 3, 2024, the City Council directed staff to consider amendments to the Sites Inventory Analysis for the adopted 2021-2029 Housing Element. City and Consultant wish to extend the Term of the Agreement to September 30, 2025, to provide ongoing input and support to the City. No change will be made to the Contract Sum of $329,239.48. 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 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, 2025, except as otherwise provided in the Schedule of Performance ( Exhibit D"). 2. Continuing Effect of Agreement. Except as amended by Amendment Nos. 1 through 5, 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 5 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. 5, 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. 5, 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. A-2 -3- 01203.0005/1016389.2 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. 5. 5. Authority. The persons executing this Amendment No. 5 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. 5 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. 5 does not violate any provision of any other agreement to which said party is bound. [SIGNATURES ON FOLLOWING PAGE] A-3 -4- 01203.0005/1016389.2 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:Albert Cuisinot (Sep 20, 2024 12:31 PDT) 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. A-4 01203.0005/1016389.2 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 OR TYPE OF DOCUMENT TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT NUMBER OF PAGES TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER DATE OF DOCUMENT SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) 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-5 □□ □□ □ □□ □ □ 01203.0005/1016389.2 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT 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. 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-6 □□ □□ □ □□ □ □ RPV - ESA Agmt Amendment No. 5(1016389.2) _approved Final Audit Report 2024-09-20 "RPV - ESA Agmt Amendment No. 5(1016389.2)_approved" His tory Document created by Sheena Lau (slau@esassoc.com) 2024-09-20 - 4:36:10 PM GMT- IP address: 45.62.187.160 Document emailed to Albert Cuisinot (acuisinot@esassoc.com) for signature 2024-09-20 - 4:36:53 PM GMT Email viewed by Albert Cuisinot (acuisinot@esassoc.com) 2024-09-20 - 7:30:55 PM GMT- IP address: 24.4.106.105 Document e-signed by Albert Cuisinot (acuisinot@esassoc.com) Signature Date: 2024-09-20 - 7:31:10 PM GMT - Time Source: server- IP address: 24.4.106.105 Document emailed to Ruta Thomas (rthomas@esassoc.com) for signature 2024-09-20 - 7:31:13 PM GMT Email viewed by Ruta Thomas (rthomas@esassoc.com) 2024-09-20 - 8:50:57 PM GMT- IP address: 104.28.85.127 Document e-signed by Ruta Thomas (rthomas@esassoc.com) Signature Date: 2024-09-20 - 8:51:14 PM GMT - Time Source: server- IP address: 107.77.229.154 Agreement completed. 2024-09-20 - 8:51:14 PM GMT Created: By: Status: 2024-09-20 Sheena Lau (slau@esassoc.com) Signed Transaction ID: CBJCHBCAABAAcjTY1Hc21CfrHlf22wU1ogQlOoBmvmuL A-7 ~ ~ ~ 0o ~ ~ 0o e r-ESA ...... I Powered by Adobe Acrobat Sign 633 West 5th Street Suite 830 Los Angeles, CA 90071 213.599.4300 phone 213.599.4301 fax esassoc.com September 16, 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 2021-2029 Housing Element –Contract Amendment Request #5 Dear Octavio: As you are aware, the ESA team has been working with the City on the 2021-2029 Housing Element Update and the associated environmental analyses in accordance with out contract dated November 14, 2023. During the process, there have been four contract amendments and the contract currently has a total budget of $329,239.48 (original contract amount plus Amendments 1, 2, 3, and 4 including the associated contingency). In addition, Amendment 4 extended the timeline for the contract to September 30, 2024. The City Council adopted the Revised Final 2021-2029 Housing Element, General Plan amendments, Local Coastal Program amendment, zoning code amendments and zone changes on June 18, 2024. However, the City Council recently directed staff to consider amendments to the adopted 2021-2029 Housing Element. In light of this recent direction, the purpose of this amendment request is to extend the timeline for the contract to September 30, 2025 to provide ongoing input and support to the City. This amendment request does not include any revisions to the budget. If additional budget is needed based on the effort and decisions during the review of materials and process necessary to implement the City Council direction, a separate contract amendment request will be submitted. If you have any questions, please feel free to contact me at (310) 266-8331. Sincerely, Luci Hise-Fisher, AICP Project Manager B-1