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CITY OF NEWPORT BEACH
COMMUNITY AND ECONOMIC DEVELOPMENT
PLANNING DEPARTMENT
M5 NEWPORT BOULEVARD
NEWPORT BEACH, CA 92658
(949) 644-T= -+ FAX (949) 644-5250
Hearing Date:
Agenda Item No.:
Staff Person:
May 24, 1999
15
Patrick J. Alford
(949) 644 -3235
REPORT TO THE MAYOR AND CITY COUNCIL
SUBJECT: Newport Dunes Hotel and Time -Share Resort Environmental Impact Report
SUMMARY: An amendment to the professional services agreement for consulting services to
prepare an environmental impact report for the Newport Dunes Hotel and Time -
Share Resort project.
SUGGESTED
ACTION: Approve the amendment to the professional services agreement with LSA
Associates for the preparation of an environmental impact report for the Newport
Dunes Hotel and Time -Share Resort project.
Background
On September 28, 1998, the City Council approved a professional services agreement with LSA
Associates for the preparation of an environmental impact report for the Newport Dunes Hotel and Time-
Share Resort project. The agreement set the costs for these services at $79,500.00.
On October 21, 1998, the Acting City Manager approved an amendment to the agreement. The
amendment was necessary to expand the scope of work to address new water quality issues and to provide
an additional $17,500 in compensation to the consultant. The Acting City Manager was authorized to
approve the amendment under City Council Policy F -3 because the increase was less than twenty five
percent (25 %) of the original agreement.
On April 23, 1999, the Planning Department received a budget augment request from the consultant for
an additional $17,000. This request, along with the previous amendment, would exceed twenty five
percent (25 %) of the original agreement and must be submitted to the City Council for approval pursuant
to City Council Policy F -3.
Analysis
The amendment is necessary to compensate the consultant for additional costs incurred during the
preparation of the Newport Dunes Hotel and Time -Share Resort Environmental Impact Report (EIR).
Additional work was required by the consultant because of revisions to some of the technical studies that
occurred after the awarding of the original contract. Also, the applicant has continued to refine the
planned community development regulations and the design guidelines proposed for the project. This
required additional review and analysis by the consultant that was not provided for in the original
contract.
Based on community input received when the project was first submitted for public comments, it was
determined that additional traffic and parking analysis was necessary. The City's traffic consultant was
directed to provide additional data and analysis on traffic generation and parking demand associated with
weekend activities and special events and functions that may be conducted on the project site. This new
information, in turn, required revisions to the noise analysis and air quality analysis, since both of these
studies are based on estimated traffic volumes.
The consultant's original budget estimates were based on the assumption that traffic, noise, and air quality
technical studies were complete. The additional review and analysis of these technical studies required
significant rewriting of the corresponding sections of the EIR that resulted in cost overruns.
The applicant also experienced difficulty in preparing the planned community development regulations
for the project. On his own volition, the applicant hired a new consultant to prepare the draft regulations
and to add a set of design guidelines. This resulted in considerable delay in the submission of the final
draft document.
The late submission of the development regulations and the addition of design guidelines required the
consultant to make significant revisions to the project description, land use, and visual quality sections of
the EIR. These revisions were not anticipated in the original budget estimates and resulted in additional
cost overruns.
To address the costs associated with additional review and analysis and to complete the EIR, the City, the
consultant, and the applicant have agreed to provide an additional $17,000 in compensation to consultant.
This will bring the total contract cost of the EIR to $114,000. The applicant is responsible for the full cost
of the EIR. 0
Submitted by: Prepared by:
SHARON Z. WOOD PATRICK J. ALFORD
Assistant City Manager Senior Planner
.X Z
Attachments: PSA andment No. 2.
•
Newport Dunes PSA An=d=nt
May 24. 1999
Page 2
AMENDMENT NO. 2
PROFESSIONAL SERVICES AGREEMENT
Newport Dunes Environmental Impact Report
THIS AMENDMENT NO. 2 TO CONSULTANT AGREEMENT, made and
entered into this 24th day of May,
1999, by and
between the CITY OF
NEWPORT
BEACH, a municipal corporation,
(hereinafter
referred to as "CITY ")
and LSA
Associates, Inc., whose address is
One Park
Plaza, Suite 500, Newport
Beach,
California 92614 -5981 (hereinafter
referred to as "CONSULTANT ") is
made with
reference to the following:
RECITALS:
A. On September 28, 1998, a Consultant Agreement was entered into by
and between CITY and CONSULTANT, hereinafter referred to as "AGREEMENT."
• B. On November 2, 1998, an amendment to the AGREEMENT was executed
by CITY AND CONSULTANT, hereinafter referred to as "AMENDMENT NO. 1:'
C. CITY and CONSULTANT mutually desire to amend the AGREEMENT, as
amended by AMENDMENT NO. 1, as provided herein.
NOW, THEREFORE, the parties hereto agree as follows:
1. SERVICES TO BE PERFORMED BY THE CONSULTANT
The Consultant's scope of services shall remain the same and shall be in full
force and effect as set forth in AGREEMENT, as amended by AMENDMENT NO. 1.
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2. COMPENSATION TO CONSULTANT
Consultant's compensation shall be increased by seventeen thousand dollars
($17,00.00) for all work performed in accordance with AGREEMENT, as amended by
AMENDMENT NO. 1, and shall not exceed the total contract price of one hundred and
fourteen thousand dollars ($114,000.00).
IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT
NO. 2 on the date first above written.
CITY OF NEWPORT BEACH,
a municipal corporation
FEW
APPROVED AS TO FORM:
Homer Bludau
City Manager
Robin Clauson
Assistant City Attorney
CONSULTANT
BY:
Robert W. Balen
LSA Associates, Inc.
ATTEST:
LaVonne Harkless
City Clerk
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