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SR 12-05-2017 3D City Council Report City Council Meeting: December 5, 2017 Agenda Item: 3.D 1 of 5 To: Mayor and City Council From: David Martin, Director, City Planning Subject: Second Modification to Professional Services Agreement with Dudek for Development of the Local Coastal Program Update Land Use Plan Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a second modification to Contract No. 10212 (CCS) in the amount of $13,028 with Dudek, a California-based company, for professional services related to development of the Local Coastal Program Land Use Plan Update and extend the expiration date through November 2018. This will result in a three-year, amended agreement with a new total amount not to exceed $137,028. The remainder of the professional services to be paid through this contract are fully-funded by a Planning Grant from the California Coastal Commission. Executive Summary Under the State Coastal Act, individual development projects in the coastal zone must have separate Coastal Commission approval, unless a city has won approval from the Commission for local regulations to enforce the requirements of State law. The City has been developing a Local Coastal Program Land Use Plan (LUP) over the last two years to update the 1992 LUP, as a step toward completing the full Local Coastal Program (LCP) planning process and obtaining California Coastal Commission (CCC) certification. A certified LCP would authorize the City of Santa Monica to issue Coastal Development Permits for most projects within the City’s Coastal Zone. The City received a $225,000 CCC Planning Grant in 2015 to undertake this effort through a process involving ongoing collaboration and support from CCC staff. The grant scope divided this sum between funds for a consultant (Dudek) and funds for a part-time, limited-term, Assistant Planner position. The Assistant Planner position has since been incorporated into regular staffing, leaving grant funds available to allocate towards the consultant contract and freeing up General Fund funds previously 2 of 5 committed to the contract. Due to delays in the project, the City needs to budget additional time for Dudek’s contract to complete the project. The State CCC administration has approved an amendment to the grant agreement to facilitate the proposed contract increase. The CCC grant, subsequent to an earlier amendment in May 2017, was funding $121,367 of the total Dudek contract amount, with the rest funded through general fund sources, as approved by Council on October 27, 2015. The recently executed grant budget amendment shifted the remaining direct staff (Assistant Planner) funding to consultant expenses, for a total of $134,495. With the addition of $2,554 of General Fund Professional Services funds that have already been expended, staff now proposes to increase the contract with Dudek to $137,028. This staff report recommends that Council authorize staff to revise the contract with Dudek to add $13,028 to the current contract amount ($124,000) to reflect the new total of $137,028. Background The LUP is the first of two components of a Local Coastal Program (the second being the Implementation Plan, or IP), which is the instrument through which the State transfers authority from the CCC to the local jurisdiction to issue most Coastal Development Permits (CDPs). CDPs are required for any project defined as “development” by the State Coastal Act within a jurisdiction’s Coastal Zone. State law (the California Coastal Act) requires that certain projects in the most sensitive areas in close proximity to the shoreline remain within the CCC’s jurisdiction. The City has never adopted or received certification for an IP, resulting in the continued requirement to obtain CCC approval for all CDPs. The City has also received a $100,000 CCC Planning Grant to develop the IP. A two- year process to develop the IP is scheduled to commence when the LUP is substantially complete. Once Council adopts both components and both are certified by the CCC, the 3 of 5 authority to issue CDPs for projects in the City’s Coastal Zone will be transferred to the City of Santa Monica. On June 24, 2014, Council approved a resolution authorizing staff to submit a grant application to the California Coastal Commission to fund development of a Local Coastal Program update. The City was awarded a Local Coastal Program Planning Grant for $225,000 on November 12, 2014, funding both a part-time, limited term assistant planner, and consultant services. On October 27, 2015, following a competitive bidding process, Council authorized a contract with Dudek, a planning firm with LCP expertise, for a not-to-exceed amount of $124,000. This was initially funded with both grant funds ($104,000) and general funds, of which $7,000 were allocated in the 2015-16 budget with additional funds contingent on Council approval in subsequent years. On May 22, 2017, the City and CCC executed a modification of the grant agreement to reallocate grant funds, approving CCC reimbursement for up to $121,366.85 of the Dudek contract. This modification reduced reliance on the Planning Division’s professional services account. At that time, no changes were made to Contract No. 10212 (CCS) with Dudek and no Council action was required. On October 30, 2017, the City and CCC executed a second modification to allocate the remaining staff reimbursement funds ($13,128) to consultant funding. This modification also extended the grant expiration date through July 31, 2018, in order to accommodate the revised public review and hearing schedule for Planning Commission and City Council adoption. Discussion The CCC staff has administered the LCP grant amount with flexibility in allocation between in-house staff time and project consultant scope as long as the work scope leads to development of LCP documents for adoption. The City has been able to fund more of the project’s consultant scope through the grant since the Assistant Planner 4 of 5 was hired as a permanent, full-time employee in 2016 when a vacant position became available. As of the last request for reimbursement, $81,901.09 had been reimbursed to the City for the in-house position. Following the modification of the grant agreement on October 30, 2017, the City is now able to add more time for the consultant’s work efforts while eliminating further reliance on general funds for this contract. The additional contract scope for more time to revise and coordinate with CCC staff is required due to delays resulting from the internal review process, which is complicated by ongoing coordination with Coastal Commission staff in the local (Long Beach) office and the State central office. The Administrative Draft is currently in an advanced stage of review, and release of a public draft is now anticipated in January 2018. The following table summarizes the funding sources over the term of the contract as it has been revised. Dudek LCP Contract Sources October 2015 (original) May 2017 (REV) Oct 2017 (REV) Grant funding $104,000.00 $121,366.85 $134,494.46 City Funding $20,000.00 $2,633.15 $2,533.22 Total Contract $124,000.00 $124,000.00 $137,027.68 The revised scope and budget of $137,028 will allow Dudek to continue to provide staff with its expertise to complete the LCP for City adoption and CCC certification. Their role is particularly critical for the development of sea level rise policies, a new LCP policy area, and to assist in coordination with CCC staff to reach agreement on coastal policy language and prepare for CCC certification. Financial Impacts and Budget Actions The contract modification to be awarded to Dudek is $13,028, for an amended contract total not to exceed $137,028. Funds of $26,297 are available in the FY 2017-18 budget in the Planning and Community Development Department. The contract will be charged to account 20267.570350. 5 of 5 Prepared By: Elizabeth Bar-El AICP, Senior Planner Approved Forwarded to Council Attachments: A. June 24, 2014 Council Staff Report B. October 27, 2015 Council Staff Report C. Oaks Initiative Disclosure - Dudek REFERENCE – SECOND MODIFICATION TO AGREEMENT NO. 10212 (CCS)