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SR 08-27-2019 3E City Council Report City Council Meeting: August 27, 2019 Agenda Item: 3.E 1 of 5 To: Mayor and City Council From: David Martin, Director, Transportation Planning Subject: Approval of Contract Amendment with Rios Clementi Hale Studios for the Promenade 3.0 Project Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to execute the first modification to agreement #10769 with Rios Clementi Hale Studios (RCHS), a California based company, that has provided professional urban design services for the “Promenade 3.0” project since late 2018. The proposed modification would extend the term of the agreement by twelve months and add an additional amount of $150,000, bringing the total not to exceed amount of the agreement to $480,000. 2. Authorize the City Manager to negotiate an amended cost-sharing agreement with Downtown Santa Monica Inc. (DTSM) for an amount up to $50,000, bringing the total contribution of DTSM to the overall project cost to $150,000. Summary The Third Street Promenade has been the dynamic heart of our Downtown since its current iteration was completed in the late 1980s. Its continued success depends in part on refreshed infrastructure. Thus, beginning early 2018, the City in partnership with Downtown Santa Monica Inc. (DTSM) kicked off the Promenade 3.0; and the City hired Rios Clementi Hale Studios (RCHS) to lead a multi-disciplinary team to prepare a strategic urban design plan to guide the future of Third Street Promenade. Through a cost-sharing agreement, DTSM contributed $100,000 towards the total project cost of $330,000. To date, the RCHS team has completed the Needs Assessment Report and initiated stakeholder and community engagement, but the level of public outreach and engagement desired by stakeholders exceeds the original six-month schedule and scope. Therefore, staff recommends modifying the agreement with RCHS to extend the term by one year and increase the agreement by $150,000 to continue their engagement and outreach efforts through the remainder of 2019, including assistance with a series of “pop-up” summer activations on the Promenade. Staff also requests 2 of 5 Council authorize the City Manager to amend the cost-sharing agreement with DTSM, which has agreed to contribute up to $50,000 for this additional scope. Discussion In the past three decades, since the last major redevelopment of the Promenade, the competition for great urban places has increased across the region while the retail, entertainment, dining landscape brought on by online -retailers, streaming video, and “fast-casual” restaurants, has changed dramatically, challen ging the traditional tenant mix that has sustained the Promenade’s success. Recognizing these challenges, in early 2018 the City of Santa Monica and Downtown Santa Monica, Inc (DTSM) initiated the “Promenade 3.0” project. The “Promenade 3.0” initiative is organized into three “lanes” of activities: • Lane 1 – a renewed emphasis on marketing and events, led by DTSM; • Lane 2 – a review of leasing strategies, including assorted regulatory and code barriers to attracting desired tenants, being led by the City; and • Lane 3 – a review of the Promenade’s physical design. The three lanes are obviously interrelated in certain respects. For example, future changes to the physical design of the street will need to support future desired events. The “Promenade 3.0” project requires coordination across a range of urban design, place-making, economic development and engineering disciplines to realize both shor t- and long-term goals of revitalizing the Promenade. In late 2018, City Council contracted Rios Clementi Hale Studios (RCHS) to provide professional urban design services in support of “Lane 3” of the “Promenade 3.0” project. RCHS, a Los Angeles-based design firm, is supported by Gehl Architects, an internationally known planning firm that specializes in a metric-based survey of public life in locations around the world. The team also includes KPFF and MGAC, providing civil engineering and cost estimating support, respectively. (Attachment A) 3 of 5 The “Promenade 3.0” scope of work as originally proposed by the RCHS team is to create a strategic action plan for reinvesting in the Promenade’s physical infrastructure. The core effort for the study, which was to unfold over six months, is to develop a pedestrian-only streetscape configuration complemented by a range of innovative strategies for improving the character and functionality of the Promenade. This task involves identifying a preferred conceptual design that helps revitalize the Promenade as a walking and shopping corridor that continues to meet community and stakeholder expectations. The final product should provide conceptual-level details suitable for use on a planning level as a guide for implementation of the desired infrastructure featured in the concept plan, and as a basis of design for future capital improvement projects along the Promenade. As the “Promenade 3.0” initiative has unfolded in the first half of 2019, the demand and need for stakeholder outreach has exceeded the original scope of services, and has extended the project timeline from six months to twelve. For example, additional face-to- face roundtables with Third Street property owners is necessary to develop a consensus vision for the street. While these meetings are taking place over the summer, the project team will also be designing, deploying and evaluating a series of “pop-up” activations intended to test various concepts that are under consideration for a permanent physical infrastructure plan. These “pop-ups,” which must comply with current laws and regulations, will be an expansion of concepts explored in the 1200 Block “Experiment”, and may include bleacher seating, stages, splash pads, turf areas, unique lighting, specialized artwork and focused seating areas. DTSM has committed up to $200,000 to fund the purchase and fabrication of th ese “pop-up” activations. These summer “pop-ups” will also serve as a means to engage the general public in the “Promenade 3.0” design process by enabling the average user of Third Street to experience and comment upon possible and program possibilities for the street. The additional services proposal will enable the RCHS team to: 1. Continue bi-weekly team meetings with the City and DTSM through the end of 2019; 2. Attend additional stakeholder and Commission meetings through the end of 201 9; 3. Facilitate and attend a two-day design workshop event in the fall; and 4. Support the design, deployment and evaluation of the summer “pop-up” activations 4 of 5 Based upon the additional public and stakeholder input over the summer and early fall, proposals in all three “Promenade 3.0” lanes will converge at the conclusion of 2019. Accordingly, the RCHS team will fulfill their contractual obligations as outlined in the original scope of services and deliver a final proposed physical design strategy for the Third Street Promenade. At a future meeting, City and DTSM staff will share work completed to date and the proposed project schedule, including public outreach for Council’s review and consideration. Past Council Actions Meeting Date Description 10/09/2018 (Attachment A) Original contract authorization with Rios Clementi Hale Studios (RCHS) to provide a Needs Assessment study for the Third Street Promenade Financial Impacts and Budget Actions Staff seeks authority to approve funding from the General Fund to extend the term and increase the amount of agreement 10769 with Rios Clementi Hale Studios (RCHS) to provide professional urban design services for the “Promenade 3.0” project. Downtown Santa Monica Inc. has agreed to fund up to $50,000 to design and evaluate the “pop-up” activations. DTSM’s contribution will be executed through an amendment of the existing cost-sharing agreement with the City, and will need to be negotiated separately through the City Manager’s Office. Agreement Modification Request Agreement # Current Authorized Amount Modified Request Amount FY 2019-20 Budget Department Account # Total Revised Contract Amount 10769 $330,00 $150,000 01200001.552010 $480,000 Future year funding is contingent on Council budget approval. 5 of 5 Prepared By: Alan Loomis, City Urban Designer Approved Forwarded to Council Attachments: A. October 9, 2018 Council Report (Web Link) B. RCHS Oaks Initiative Disclosure Form REFERENCE: Modified Contract No. 10769 (CCS) & Modified Contract No. 10918 (CCS)