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SR-032586-6WC/ED:CPD:DKW:ljw COUNCIL MEETING: 3/25/86 T0: C9ayor and City Council FROM: City Staff `.' MAR 2 5 198b Santa Monica, California SUBJECT: Recommendation to Award Contract to Michael Brandman Associates for Preparation of EIR on the Colorado Place Amendment Number 4 to Development Agreement and Development Review 318 INTRODUCTION This staff report recommends that Michael Brandman Associates be awarded a contract in the amount of $53,990.00 to prepare an Environmental Impact Report (EIR) on two development projects proposed by Southmark Pacific Corporation. BACRGROUND In October 1981, the Santa Monica City Council approved a Development Agreement with Welton Becket Associates for a 15-acre, two-phase development known as Colorado Place. Colorado Place Phase I, completed in 1983, consists of three office buildings, a restaurant complex, other ancillary uses with combined building area of approximately 450,000 sq. ft., all served by a subterranean parking garage. A proposal has been submitted by the new developer, Southmark Pacific Corporation, to amend the Development Agreement for the unconstructed Phase II ~/~/ MR 2 5 1986 - 1 - component and for a newly proposed off-site development to be known as Phase III. The proposal to amend the existing Development Agreement for the Colorado Place Phase II development consists of a 13-story, 262-room hotel with meeting, restaurant, and health club facilities; a six-story, office building with 450,000 sq. ft. of office and ancillary retail space; and expansion of the existing parking garage; and a 1.5-acre "passive" park to be located on the Phase II site. These proposals amend the original Phase II project design as specified in the Development Agreement, which consisted of a 392-room hotel in two nine-story towers, office space, and an on-site park of approximately 3.5 acres. The proposed Colorado Place Phase III project is located at 2030-2154 Colorado Avenue between Cloverfield Boulevard and 20th Street on the south side of the street, two to three city blocks west of_ the existing Phase I and proposed Phase II developments. The project site is comprised of approximately six acres of land which is currently owned by Parker Manufacturing Company and occupied by eight light industrial buildings totaling approximately 147,000 sq. ft. of space. The Phase III proposal includes three six-story office buildings totaling approximately 345,000 sq. ft. of gross floor area, and a 3.3 acre on-site park to be provided by the developer, including two acres of park proposed as mitigation for the Phase II development. The Community and Economic Development Department has determined that an EIR will be prepared on the proposed projects. The EIR - 2 - will examine a number of potential environmental impacts of the proposed projects including effects on traffic, parking, land use, air quality, noise and a variety of other potential impacts. Members of the public will have an opportunity to comment on the specific scope of the EIR before work on it is commenced. Once an EIR is prepared, there will be a public comment period during which time interested persons can review and comment on the environmental analysis. Public hearings on the projects will also be conducted by the Planning Commission and City Council. A Request for Proposal to prepare the EIR for the Southmark projects was issued by the Community and Economic Development Department, which is responsible for preparing City environmental documents. Three firms responded with proposals. Staff is recommending that Michael Brandman Associates be selected to prepare the EIR. A copy of the contract, including the scope of the EIR, is attached as Exhibit A. Under the recommendations of this staff report, the City Manager would be authorized to enter into a contract with Michael Brandman Associates for the EIR once the City has received a check from Southmark Pacific Corporation for the cost of the EIR, since under the City's environmental procedures, the City is fully reimbursed by private applicants for all consultant costs. BUDGET/FINANCIAL IMPACT The City's costs for this EIR will be fully paid in advance by Southmark Pacific Corporation. Revenue in the amount of $53,990 - 3 - will be credited to Revenue Account Number O1-907-189-000-000. The City's consultant costs will be paid out of Account O1-200-266-000-500. This account currently has a balance of $37,255.00, which balance is anticipated to be required in connection with the preparation of other environmental documents. Therefore, an appropriation increase in the amount of $53,990.00 at account number O1-200-2b6-000-500 will be required. This appropriation increase will be entirely financed by the revenue from the Southmark Pacific Corporation. RECOMMENDATION It is respectfully recommended that the City Council: 1) Authorize the City Manager to enter into a contract with Michael Brandman Associates at a cost of $53,990.00 for preparation of an Environmental Impact Report on the proposed Amendment Number 4 to Development Agreement and Development Review Number 318; and 2) Increase the appropriation at account number 01-200-266-000- 500 by $53,990 to provide funds in the appropriate account for preparation of the EIR. Prepared by: D. Kenyon Webster Senior Planner - 4 - Reference Contract No. 4654 (CCS).