HomeMy WebLinkAbout05 - CC-5 - Amendment No.2 to PSA Planning Applicati - 2/7/2017CITY COUNCIL AGENDA REPORT
MEETING DATE: FEBRUARY 7, 2017 ITEM NUMBER: CC -5
SUBJECT: AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT PROVIDING
ENVIRONMENTAL CONSULTING SERVICES FOR AN INITIAL STUDY/MITIGATED
NEGATIVE DECLARATION (PLANNING APPLICATION PA -17-03 FOR MASTER PLAN
OF A 23.4 ACRE PROPERTY AT 1375 SUNFLOWER AVENUE)
DATE: JANUARY 26, 2017
FROM: DEVELOPMENT SERVICES DEPARTMENT — PLANNING DIVISION
PRESENTATION BY: MINOO ASHABI, PRINCIPAL PLANNER
FOR FURTHER INFORMATION CONTACT: MINOO ASHABI, PRINCIPAL PLANNER
Minoo.ashabi@costamesaca.gov
RECOMMENDED ACTIONS
1. City Council approve Amendment 2 to the Professional Services Agreement in the
amount of $21,000 with a new contract total amount not to exceed $62,530.00 for
Psomas with a current contract; and
2. City Council authorize the City Manager and City Clerk to accept and execute future
amendments to the agreement.
BACKGROUND
Proposed Project
The original proposed project involves the following:
1. Initial Study/Mitigated Negative Declaration (IS/MND): This document analyzes the
environmental impacts of the proposed project. Significant environmental impacts are
mitigated to below a level of significance.
2. Planning Application PA -17-03: Master Plan for development of a maximum of
665,000 SF of office development consistent with the 2015-2035 General Plan.
Request for Proposals and Consultant Qualification
On July 14, 2016, a Professional Services Agreement (PSA) was executed between the City
and Psomas for preparation of an Initial Study in the amount of $39,970.00. This contract
was approved as a sole source contract because of Psomas' knowledge of the project site.
Because the original bid did not exceed $50,000.00, the Professional Services Agreement
(PSA) was approved and executed by the Finance Department and the City Manager's
Office. A change order in the amount of $1,560.00 was approved on September 8, 2016
(Amendment No. 1).
On September 27, 2016, the applicant withdrew the application for the General Plan
Amendment and Vesting Tentative Parcel Map and the environmental services was
suspended. The City received and paid the final invoice from Psomas and $22,440 of the
funds was still available under the contract. City staff initiated the refund process; however,
this process was not completed because the applicant submitted a master plan application
and requested to proceed with the development application for the project.
On November 15, 2016, the City Council adopted Rezone R-16-02 that rezoned the property
consistent with the General Plan land use designation of Planned Development Commercial
(PDC).
The application for a master plan has been submitted proposing development of office uses
of up to 655,000 square subject to maximum trip counts adopted by the 2015-2035 General
Plan. The master plan requires completion of an Initial Study /Mitigated Negative
Declaration, which will require restating the contract with the previous consultant (PSomas).
Based on the new scope of services from PSomas, the PSA will need to be amended to
$62,530.00 and requires approval of City Council.
The amended PSA is included as Attachment 1 and the revised scope of work is included as
Attachment 2.
ALTERNATIVES CONSIDERED
An alternative would be to reject the amendment and reinitiate the RFP process.
The City's CEQA guidelines do allow environmental documents to be prepared by in-house
staff. However, the nature, scope, and complexity of this project and current staff demands
do not make this a viable or practical option.
FISCAL REVIEW
There is no fiscal impact because the cost for this contract is 100% funded by the applicant
and deposited in a City account that is managed by the project planner.
LEGAL REVIEW
The attached draft professional services agreement has been reviewed and approved as to
the form by the City Attorney's Office. There is no adverse legal impact anticipated by the
Council taking the recommended action(s), based upon the documents and information
provided to this office.
CONCLUSION
Staff recommends that amendment No. 2 of PSA to be approved to allow the consultant to
complete the work in a comprehensive and timely manner, based on their relevant
experience and technical expertise.
JAY TREVINO, AICP STEPHEN DUNIVENT
Development Services Department Interim Finance Director
Consultant
MINOO ASHABI, AIA
PRINCIPAL PLANNER
Attachment: 1) Draft Professional Services Agreement Amendment No. 2
2) Revised Scope of Work
Jennifer Marks
Psomas
3 Hutton Centre Drive, Suite 200
Santa Ana, CA 92807 1714.481.8041
Hoonie Kang
Kearny Real Estate Company
1900 Avenue of the Stars
Suite 320
Los Angeles, CA 90067
ATTACHMENT 1
AMENDMENT NUMBER TWO
TO PROFESSIONAL SERVICES AGREEMENT
FOR ENVIRONMENTAL SERVICES
This Amendment is made and entered into this 7th day of February, 2017
("Effective Date") by and between the CITY OF COSTA MESA, a municipal
corporation ("City") and Bon Terra Psomas, a division of Psomas, a California
corporation ("Consultant"), and TREH/Kearny Costa Mesa, LLC, a Delaware Limited
Liability Company ("Applicant").
WHEREAS, Consultant and City entered into an agreement on July 14, 2016, for
Consultant to prepare an Initial Study, Mitigated Negative Declaration and related
documents and studies, as more fully described therein (the "Agreement"); and
WHEREAS, on August 23rd, 2016 Consultant and City entered into Amendment
Number One to the Agreement to adjust the amount of compensation by adding
$1,560.00 to the existing compensation limit of $39,970.00, for a total not -to -be -
exceeded amount of $41,530.00
WHEREAS, Consultant and City desire to amend the Agreement by adding a new
scope of services and to adjust the amount of compensation by adding $21,000.00 to the
existing compensation limit of $41,530.00, for a total not -to -be -exceeded amount of
$62,530.00.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Parties agree as follows:
1. A new Scope of Work, attached hereto as Exhibit "B", is added to Section
1.3.A. of the Agreement.
2. Section 2.1 of the Agreement is deleted in its entirety and replaced by the
following:
2.1. Compensation. Applicant shall pay one hundred percent (100%) of
all costs of City and Consultant in the management and preparation of the
Required CEQA Document and all work related thereto. Consultant's total
compensation shall not exceed Forty -One Thousand, Five Hundred Thirty
Dollars ($62,530.00).
3. All terms not herein defined shall have the same meaning and use as set
forth in the Agreement.
4. All other terms, conditions, and provisions of the Agreement not in conflict
with this Amendment and previous Amendments, if any, shall remain in full force and
effect.
_4 -
IN WITNESS WHEREOF, the Parties hereto have set their hand by their duly
authorized representatives as of the day and year first above written.
CONSULTANT, Psomas
Date:
Signature
Name and Title
Social Security or Taxpayer ID Number
APPLICANT, TREH/Kearny Costa Mesa, LLC
Date:
Signature
Name and Title
Social Security or Taxpayer ID Number
CITY OF COSTA MESA
Date:
Tom Hatch
City Manager
ATTEST:
Date:
Brenda Green
City Clerk
APPROVED AS TO FORM:
Thomas Duarte
City Attorney
APPROVED AS TO INSURANCE:
Ruth Wang
Risk Management
APPROVED AS TO CONTENT:
Minoo Ashabi
Project Manager
DEPARTMENTAL APPROVAL:
Tamara Letourneau
Assistant City Manager
APPROVED AS TO PURCHASING:
Stephen Dunivent
Interim Finance Director
Date:
Date:
Date:
Date:
Date:
t0-
January 17, 2017
Minoo Ashabi
City of Costa Mesa
77 Fair Drive
Costa Mesa, California 92626
Balancing the Natural and Built Environment
VIA EMAIL
Minoo.Asha bi@costa mesa ca. gov
Subject: Revised Request for Change Order No. 2 for Environmental Consulting Services for the
LA Times Building Re -use Project
Dear Ms. Ashabi:
We are pleased to submit this revised request for a change order for our continued assistance with CEQA
environmental services for the Former LA Times Building Re -use Project located at 1375 Sunflower
Avenue in the City of Costa Mesa. Per the City's request, Psomas will continue with preparation of an
Initial Study and Mitigated Negative Declaration (IS/MND) for this project, under contract with the City
of Costa Mesa. Currently, we have $22,440 remaining in the approved contract. In order to fully address
the City's comments, following are specific tasks that would exceed our available budget.
Address City Attorney Comments. Based on review of the City's initial comments on the
previously submitted IS, which was largely based on direction from the applicant's legal counsel,
there are several areas that require revision to better match the City's desired approach. This
change order request will accommodate revision of the IS/MND in response to City Attorney
comments; preparation of a Proofcheck IS/MND; preparation, reproduction, and circulation of the
IS/MND for public review; preparation of responses to comments; and attendance at up to two
public hearings.
The estimated fee for this task is $2,000.
• Water Supply Assessment.
Data Collection and Analyses. For historical and projected water demand and supply for the
District water service area, Psomas will utilize information contained in the District's 2015 Urban
Water Management Plan scheduled for adoption in June 2016 (UWMP) along with updated
information following the development of that Plan. If available, District -wide water service area
demands will be updated to include FY 2015/16 water demands versus those included in the
UWMP. Since the additional demands from this Project were not specifically included in the
2015 UWMP, the additional demands will be determined separately. Since the 2015 UWMP
projected demands out 25 years into the future to 2040, those projections will still be within the
time range projected in the UWMP. Psomas will also collect and analyze current water use from
meter read data from all meters currently serving the existing Project upon obtaining a
consent letter from current property owner to District to provide those records to 3 Hutton Centre Drive
Psomas. That data will then be subtracted from estimated new Project demands to Suite 230
determine net additional demands from Project. Santa Ana, ca 927107
LI 71d 7;1.7 373
www.Psomas.com
—9—
Minoo Ashabi
January 17, 2017
Page 2
Psomas will include regional water supply information from Metropolitan Water District of
Southern California's 2015 Urban Water Management Plan, the State Department of Water
Resources' (DWR) latest State Water Project Delivery Capability Report for imported water
supply and reliability as well as groundwater supply information available from the District and
Orange County Water District.
Draft Water Supply Assessment. Psomas will develop the Project WSA to address the
information above and include water demand projections consistent with EIR statistics so that the
draft WSA will meet the requirements of SB 610 and generally include the following sections:
o Executive Summary
o Project Description
o Projected Additional Net Water Demands for the Project (A Technical Memo will be
prepared to develop the net Project water demands consistent with the final Project
statistics from the EIR and circulated to the Developer and District staff for review and
comments). Existing water use, if any, for the parcels within the Project that was included
as existing demand in the 2015 UWMP will be obtained from District meter records.
Since the new proposed Project will likely be including many water efficient fixtures and
is subject to a much more stringent landscaping ordinance (just adopted by DWR in July
2015), we will consider using lower water demand factors and include this discussion in
the Technical Memo described above. If recycled water is to be used for landscape
irrigation or any internal "purple pipe" plumbing, these demands will be projected
separately. In this manner we will not be using demand factors that are overly
conservative and based on older factors based on outdated development standards.
o Update to District -wide Water Demand and Supplies, including new Project demands
o Update Description of Water Sources: Imported, Groundwater or Recycled from those
included in previous UWMP and WSAs
o Update the discussion of Reliability of District Water Supplies, including the following:
► Analysis of normal, single -dry year, and multiple dry water years for the Project
and the District during, at minimum, a 20 -year projection (these tables will be
updated/revised from the 2015 UWMP to reflect the net additional demand from
the Project)
o Conclusion
The preliminary draft WSA will be submitted digitally to the Developer for internal review and
comment, first. A draft WSA, revised based on comments, will then be submitted to District staff
for their review and comment.
Final Water Supply Assessment. Psomas will receive from and review comments with the District
staff to confirm appropriate refinement of the draft WSA. Psomas will clarify comments as
needed and incorporate comments into a Final WSA and submit to the District with a copy for the
EIR. A total of up to ten bound copies and one electronic copy of the Final WSA will be provided
to the District. One digital copy will be provided to incorporate as an appendix to the EIR, and
one will be provided to the Developer for their records.
The estimated fee for this task is $19,000.
WIN
Minoo Ashabi
January 17, 2017
Page 3
In summary, Psomas requests that authorization of this Change Order request for $21,000. It is noted that
revision and completion of the IS/MND pursuant to this change order is based on two primary
assumptions:
1. The applicant will provide an updated traffic study addressing the City's comments. In order to
maximize efficiency, Psomas requests that the traffic study be provided as both a pdf and
Word/Excel files. We also request that all changes from the previous version be shown in track
changes.
2. The applicant will provide information at the earliest time possible addressing the need for pile
driving to be determined based on scheduled geologic testing. Should it be determined that pile
driving is required, all reasonable efforts to minimize impacts through alternative methods will be
considered in coordination with the applicant and the City. Should alternative methods not be
feasible, this impact may be considered significant and unavoidable which would require
preparation of an environmental impact report.
Thank you for the opportunity to submit this request for a change order and we look forward to
continuing to work with the City on this Project. Please contact Jennifer Marks, Senior Project Manager,
by phone at 714.751.7373 or by email at Jennifer.Marks@Psomas.com if you have any questions or
would like additional information.
Sincerely,
PSO M S
Jo Patronrte Kelly, A
ice President, Principal
RAProjects\COS_ CMX\3COS010200\Contracts\CO2 Tribune-011717.docx
)Tnifer Y. arks
Senior Project Manager
--a --