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HomeMy WebLinkAbout06 - Preparation of EIR for Uptown Newport Mixed Use PA2011-134CITY OF NEWPORT BEACH C9C /Fp0.N`P City Council Staff Report 6 Agenda Item No. October 23, 2012 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community Development Department Kimberly Brandt, AICP, Director 949 - 644 -3226, kbrandt(c newportbeachca.gov PREPARED BY: Rosalinh Ung, Associate Planner APPROVED: D. � 1 TITLE: Amendment to the Professional Services Agreement with The Planning Center DC &E for the Preparation of the Environmental Impact Report for the Uptown Newport Mixed Use Residential Development located in the Airport Area ABSTRACT: Staff requests approval of an amendment to the Professional Services Agreement in the amount of $48,548 with The Planning Center DC &E for continued environmental consulting services for the preparation of an environmental impact report for the proposed Uptown Newport project. RECOMMENDATION: Approve the amendment to the Professional Services Agreement (Attachment A) and authorize the Mayor and City Clerk to execute the Agreement. FUNDING REQUIREMENTS: There is no fiscal impact related to this item. The entire cost of the consulting services will be reimbursed to the City by the applicant, Shopoff Management, Inc. on behalf of Uptown Newport, LP. DISCUSSION: Shopoff Management, Inc. has filed an application for the development of a mixed use residential project consisting of 1,244 residential units, 11,500 square feet of neighborhood - serving retail space, and approximately two acres of park space on a 25- acre site formally known as "Conexant" property. 1 The Planning Center DC &E Contract Amendment October 23, 2012 Page 2 The project requires the preparation of an environmental impact report (EIR), and in September 2011, the City entered into a professional services agreement with The Planning Center DC &E which stipulated that the total cost shall not exceed $254,114. Since then, the City Manager approved three (3) separate amendments to the original agreement consistent with Council Policy F -14, bringing the total contract amount to $310,980. These amendments were necessary to authorize services over and above the original scope of services that included additional meetings and project management hours, additional technical studies related to health risks, noise, vibration, traffic, and an air quality /green house gas assessment. The proposed amendment includes a budget increase of $48,548, bringing the total contract amount to $359,528. This augment is required to cover the cost of additional services that were not anticipated in the original 2011 Professional Service Agreement or previously- approved amendments. These additional costs are attributable to the following tasks: • Draft EIR. Additional work efforts included, but were not limited to, extensive review and revisions to the Hazards, Noise, and Alternative Sections of the Administrative Draft EIR. • Team Meeting and Public Meeting Attendance. Additional team meetings and participation at a Planning Commission study session were required. The budget augment includes the additional meetings and hearings attended to date as well as anticipated future Planning Commission hearings. • Project Management. Additional project management time is required for project coordination and conference calls. • Revision to Technical Studies. Revision to the noise and vibration and off -site consequence studies and changes the Noise and Hazards Sections of the Administrative Draft EIR. Since the proposed amendment would exceed 125 percent of the original agreement, City Council approval is required pursuant to Council Policy F -14. ENVIRONMENTAL REVIEW: The retention of consultants is not a project as defined by California Environmental Quality Act (CEQA). 2 The Planning Center DC &E Contract Amendment October 23, 2012 Page 3 The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Submitted by: I yk�",zr- Kimberly Brand , AICP Director Attachment: A. Amended Professional Services Agreement with The Planning Center DC &E 3 11 Attachment No. A Amended Professional Services Agreement with The Planning Center DC &E 0 NO C -4941 AMENDMENT NO. FOUR TO PROFESSIONAL SERVICES AGREEMENT WITH THE PLANNING CENTER / DC &E FOR ENVIRONMENTAL ANALYSIS FOR THE UPTOWN NEWPORT VILLAGE MIXED USE DEVELOPMENT THIS AMENDMENT NO. FOUR TO AGREEMENT FOR PROFESSIONAL SERVICES ( "Agreement') is made and entered into as of the day of October, 2012, by and between the CITY OF NEWPORT BEACH, a California municipal corporation and Charter City ( "City "), and THE PLANNING CENTER / DC &E, a California corporation ( "Consultant'), whose address is 3 MacArthur Place, Suite 1100, Santa Ana, CA 92707 and is made with reference to the following: RECITALS A. On September 27, 2011, City and Consultant entered into a Professional Services Agreement ( "Agreement') for Environmental Analysis for the Uptown Newport Village Mixed Use Development ( "Project'). B. On February 27, 2012, City and Consultant entered into Amendment No. One to the Agreement to extend the term of the Agreement, increase the scope of services to be performed, and increase the total compensation to Consultant ( "Amendment No. One "). C. On July 12, 2012, City and Consultant entered into Amendment No. Two to the Agreement to extend the term of the Agreement, increase the scope of services to be performed, and increase the total compensation to Consultant ( "Amendment No. Two "). D. On August 3, 2012, City and Consultant entered Amendment No. Three to the Agreement to increase the scope of services to be performed and increase the total compensation to Consultant ( "Amendment No. Three "). E. City desires to enter into this Amendment No. Four to increase the scope of services to be performed and increase the total compensation to Consultant ( "Amendment No. Four "). F. City and Consultant mutually desire to amend this Agreement, as provided below. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. SERVICES TO BE PERFORMED Section 2 and Exhibit A of the Agreement, as previously amended, shall be supplemented to include the Request for Contract Amendment No. 4 for the Uptown Newport Environmental Impact Report (EIR) dated September 18, 2012 (updated October 3, 2012), which is attached hereto as Exhibit A and incorporated herein by reference. Exhibit A of the Agreement, as amended, and Exhibit A of Amendment No. The Planning Center / DC &E Four shall collectively be known as "Exhibit A ". City may elect to delete certain tasks of this Exhibit A at its sole discretion. 2. COMPENSATION TO CONSULTANT Exhibit B of the Agreement, as previously amended, shall be supplemented to include the Cost Estimate dated September 18, 2012 (updated October 3, 2012), which is attached hereto as Exhibit B and incorporated herein by reference. Exhibit B of the Agreement, as amended, and Exhibit B of Amendment No. Four shall collectively be known as "Exhibit B ". Section 4.1 of the Agreement, as previously amended, shall be amended in its entirety and replaced with the following: Consultant shall be paid by the Project applicant for the Services through a deposit account on a time and expense not -to- exceed basis in accordance with the provisions of this Section and Exhibit B of the Agreement. Consultant's compensation for all Work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed Three Hundred Fifty -Nine Thousand Five Hundred Twenty -Eight Dollars and 00 /100 ($359,528.00) without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City. 3. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement, as amended shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] The Planning Center/ DC &E 2 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: j (; CITY OF NEWPORT BEACH, a California municipal corporation Date: r /1'V By: on C. Harp Nancy Gardner City Attorney Mlp (0 —t0 Mayor Attachments: Exhibit A Exhibit B — CONSULTANT: THE PLANNING CENTER DC &E, a California corporation Date: By: William Halligan Vice President, Environmental Services Date: Bv: Keith McCann Chief Financial Officer [END OF SIGNATURES] — Services to Be Performed: Request for Contract Amendment No. 4 for Uptown Newport Environmental Impact Report (EIR) dated 9/18/12 (updated 10/3/12) Schedule of Billing Rates: Cost Estimate dated 9/18/12 (updated 10/3/12) The Planning Center/ DC &E 9 EXHIBIT A SERVICES TO BE PERFORMED The Planning Center/ DC &E 10 September 18, 2012 (updated October 3, 2012) Ms. Rosalinh Ung, Associate Planner Planning Department City of Newport Beach 3300 Newport Blvd., Bldg. C Newport Beach, CA 92663 Subject: Request for Contract Amendment No. 4 for the Uptown Newport Environmental Impact Report (EIR) Dear Ms. Ung: Pursuant to our conversations, this letter is to request Contract Amendment No.4 for our services on the Uptown Newport Environmental Impact Report (EIR). This request replaces the previous Contract Amendment No. 4 as forwarded to you on August 21, 2012. As you are aware, the scope of work for the Offsite Consequence Analysis (OCA) was modified per the City's Fire Department's request subsequent to that submittal. This request also covers additional fees for meetings as requested by the City and out -of -scope tasks completed by The Planning Center l DC &E for noise analysis (pile driving modeling), Screencheck EIR revisions, and project management for an extended schedule. We have detailed the tasks in accordance with the original task numbering for our approved scope of work. We have not included the tasks for which we are not requesting changes. The Planning Center I DC &E TASK 4 ADEIR I AND II Additional time spent on this task was primarily related to extensive back and forth review and revisions on the ADEIR with multiple reviewers on both the City and applicant teams. To expedite the project schedule, Initial EIR sections were submitted as completed beginning at the end of April 2012. The section -by- section review was followed by team review of the entire document (exclusive of the Alternatives section and Executive Summary) prior to the all -day City, applicant, and consultant team meeting held on June 7, 2012. Compared to an approved budget of a total 56 hours ($6,627) to conduct two iterations of document revisions, over 200 hours were expended on revisions subsequent to the initial submittal of EIR sections. Following is a summary of unanticipated work on the ADEIR: • Extensive work for the hazards section to incorporate original OCA analysis and then subsequent re -work of the OCA. The hours required to address chemical storage issue and integrate the OCA into the ADEIR were not included in the cost estimate for the technical study itself. • Technical review, coordination and correspondence on Phase 1 report conducted by The Planning Centers DC &E's Peter Garcia (Director, Site Assessment Strategies) to substantiate report conclusions and refine hazard mitigation for onsite contamination (prompting RM Environmental clarification memo on the Phase 1 dated 6/20/12). Integration of the supplemental information to EIR Hazards section. • EIR hazards update for new FAA findings letter. • Revision to Noise/Vibration section to incorporate supplemental analysis conducted by applicant's consultant (Wilson Ihrig Associates memo 6/29/12) • Revised figures subsequent to original preparation including tower footprint, shade shadow exhibits, and sewer Orange County r Northern Cnlifomia ` tos Angeles /Downtown - Eo5- Angeles/West . tnlon4 'F7ripire San Diego ] MaeA.,ttar 7laa<'Suir ®11001 1 Sala Ana CA,92707 171AS6&42_20 171 e,96S221 (Fj' Ww .pldnningtenter.iom i1 September 18, 2012 (updated October 3, 2012) Page 2 plan exhibits • Revise 'Office/Commercial /Residential' alternative from original description including 400 residential units to updated description including 800 units (additive units and bonus density), including quantified analysis. • Re- formatting (word - processing) and editing sections per revisions requested above. TASK 9 MEETINGS /HEARINGS There were no changes to this task in Contract Amendment No. 3. Contract Amendment No. 2 added fees to cover our attendance at a 5/16/12 noise/vibration meeting, the all -day EIR team review meeting (held (3/7/12), and an anticipated 3 hour team meeting to review DEIR comment letters upon close of the DEIR review period. The contract was also amended at this time to add 2 public hearings for a total of 4 public hearings. At the time Contract Amendment No. 2 was approved, we had one remaining coordination meeting. Our attendanceat a 6/25/12 meeting with the City (with Planning and Fire Departments) used this allocation. Remaining, approved meetings, therefore, include the DEIR comment review meeting, and 4 public hearings. The City anticipates the following meetings/hearings prior to the anticipated project approval at the end of this year: • Two (2) Planning Commission study sessions (tentatively 1014 and 10/18/12) • Two (2) Planning Commission Public Hearings • Two (2) City Council Public Hearings The public hearings are included in our contract as amended. This contract amendment includes fees for the following: • Attendance /participation at the 8/28/12 meeting (2.5 hours) with City applicant to coordinate updates to the OCA (JoAnn attended at City and Cathy Fitzgerald participated via conference call) • Attendance/participation in 2 Planning Commission study sessions at an estimated 2 hours /each (includes attendance by JoAnn Hadfield and one other staff person (technical support (AQ /Noise/GHG or Jorge Estrada, Assistant Project Manager) TASK 10 PROJECT MANAGEMENT Contract Amendment No. 2 included additional fees for ongoing project management based on an estimated 12- week extension of the original project schedule. The original schedule estimated that the Draft EIR would go out for public review on 4/6/12, and at the time of the 2nd Contract Amendment, the team's estimated schedule for public release of the EIR was 6/29/12. Release of the DEIR was extended until 9/10/12, an additional 10 weeks from the projected date for Contract Amendment No. 2. Our proposal estimated project management (project coordination including City, applicant, and consultant team, project scheduling, etc.) based on 1 hour /week for the Project Manager (JoAnn) and 11/2 hours for the Assistant Project Manager (Jorge). Project coordination, particularly phone calls related to the OCA and hazards issues, exceeded the 1 1/2 hours/week for JoAnn. An additional 10 hours have been included in this amendment for topic- specific project coordination and conference calls. Technical Studies Noise & Vibration At the request of the project applicant, we revised the noise modeling and EIR section to accommodate pile driving for the project. Subsequently, the project applicant requested that the pile driving be eliminated, and the construction activities had to be remodeled. The additional fee for this task reflects the modeling efforts and updating the EIR section, including tabular noise levels, to reflect these changes (8 hours total). 12 September 18, 2012 (updated October 3, 2012) Page 3 Offsite Consequence Analysis - Revision The scope of work included in Contract Amendment No. 3 was the preparation of an Offsite Consequence Analysis (OCA) to identify and characterize the quantities and locations of chemicals of concern at the TowerJazz Facility and to determine the likelihood and impact of a potential chemical release at the facility. Based on The Planning Centers DC &E's August 2, 2012, conference call with the City of Newport Beach (Planning and Fire Departments), this task includes supplementing the original study to address the extremely hazardous substances (EHSs) on the list provided by the City that exceed reportable quantities, as listed in Appendix A, Part 355, Title 40 of the Code of Federal Regulations (CFR). The chemicals that will be evaluated are as follows: • Anhydrous ammonia • Boron trichloride • Chlorine • Hydrofluoric acid (49 %) • Sulfuric acid (96 %) The analyses will consist of the following: • Worst -case scenarios — Analyzed using RMP *Comp, nighttime meteorological conditions (Stability Class F and wind speed of 1.5 m /sec), and instantaneous release from the largest container stored onsite. Passive mitigation measures, such as diked areas or releases inside buildings, may be considered per EPA OCA guidance. • Alternative release scenarios — Analyzed using RMP *Comp and ALOHA and daytime meteorological conditions (Stability Class D and wind speed of 3 m /sec). More realistic release scenarios, such as releases from a hole in a tank or piping, will be considered, and active mitigation measures, such as automatic shutoff valves or water spray mitigation, may be considered per EPA OCA guidance. • Impacts — Evaluated using endpoints specified in Appendix A to 40 CFR 68 — Table of Toxic Endpoints. In addition, the quantities and locations of the chemicals that will be analyzed, as well as how they are stored (i.e., enclosed building, open environment, diked area), will be obtained from TowerJazz through Brian Rupp. [Note: Subsequent to the initiation of this task, conflicting information for the location and quantities of hydrofluoric acid and sulfuric acid were provided. Two more model runswere required for each chemical, and six additional hours were required to complete the task. The cost estimate below includes these hours as verbally approved by the City.] Cost Estimate To limit the amount of the overall cost estimate for this amendment, as detailed in the cost table below, we are requesting to transfer some of the direct cost fees (primarily for report reproduction) to labor fees. We do not anticipate that the total $23,274 allocated for direct costs will be required. Additionally, we are requesting the remaining budget for the biological resources assessment be transferred to supplement the ADEIR preparation (Task 4) budget. The biological resources assessment has been completed, and our subconsultant, Ruben Ramirez has confirmed that no additional invoices will be submitted. The total cost estimate for the additional work detailed in this contract amendment is $48,548. Approval of this amendment and associated fee transfers between tasks and direct costs, would result in a total contract amount for the Uptown Newport EIR of $359,528 (including Contract Amendment Nos. 1 to 3). 13 September 18, 2012 (updated October 3, 2012) Page 5 Acknowledgment If you have any questions about the contents in this contract amendment, please contact me at 714.966.9220 or jhadfield@planningcenter.com. Respectfully submitted, THE PLANNING CENTERIDC &E JoAnn C. Hadfield Principal, Environmental Services 14 EXHIBIT B SCHEDULE OF BILLING RATES COST ESTIMATE DATED SEPTEMBER 18, 2012 (UPDATED OCTOBER 3, 2012) The Planning Center/ DC &E 15 September 18, 2012 (updated October 3, 2012) Page 4 Cost Estimate Table 1. Cost Estimate TASK TOTAL APPROVED CONTRACT (THROUGH AMEND. # 3, DATED 7/10/12 REQUESTED CONTRACT AMENDMENT # 4 TOTAL ORAFTEIR �r ."s€b,.`,8,"zv,s. -,. ;:^:.;m- _ c - Task 1 Project Initiation $3,700 - $3,700 Task 2 Initial Study/NOP 6,540 - 6.540 Task 3 Public Scoping Meeting 1,680 Offsite Consequence Analysis- TowerJaa Semiconductor 4,180 Task 4.1 - ADEIRI 66,160 Subtotal TPC I DC&E Technical Studies 66,160 Task 4.1 -ADEIR II 6,960 31,965 38,925 Task 5 Preprint and Draft EIR 4,575 - 4,575 Task 6 Final EIR - RTC/Errata 16,710 - 16,710 Task 7 Mitigation Monitoring & Reporting Program 1,440 - 1,440 Task B F0F/SOCMOD 2,800 - 2,800 Task 9 Meetings/Hearings 19,060 2,843 21,903 Task 10 Project Management 23,040 5,700 28,740 CEQA TASKS TOTAL LABOR $152,665 $40,508 $193,173 TRANSFER FEE REQUEST TO CEQA LABOR Remaining Biological Resource Budget (study complete) $2,624 $2,624 2/3 report reproduction budget 13,053 13,053 TOTAL CEQA TASKS LABOR WITH TRANSFERRED FEES $152,665 $56,185 $208,850 The Planning Center Air Quality /GHG $11,410 ($2,624) $11,410 Health Risk Assessment 7,920 7,920 Environmental Site Assessment (peer review only) 680 680 Noise/rraffic 13,750 920 14,670 Offsite Consequence Analysis- TowerJaa Semiconductor 4,180 7,120 11,300 Subtotal TPC I DC&E Technical Studies $37,940 $8,040 $45,980 Subconsultants (billed at cost + 10 %) Cadre(Bio) $7,128 ($2,624) $4,504 Cogstone (Cultural) 9,600 9,600 Kimley -Horn (Traffic) 76,692 76,692 Task 1 Remove and Add Study Scenarios Task 2 Develop Link Volumes for Noise Analysis Task 3 Add Analysis of Freeway Mainline Segments for Existing Plus Project Scenario Task 4 Additional Team Meetings and Public Hearings 3,581 3,581 Subtotal Subconsultants Technical Studies $97,001 ($2,624) $94,377 TECHNICAL STUDIES TOTALS $134,941 $5,416 $140,357 Labor Subtotal $287,606 $61,601 $349,207 Reimbursable Expenses (includes 10% mark -up) $23,374 - $23,374 Reimbursable Expense Adjustment ($13,053) ($13,053) ^, ?_e1(7 SQ .S3 a+ - $48:548;' ;i359,�i28a3 10