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HomeMy WebLinkAbout06 - EIP Associates Inc'1107 CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 March 27, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Sharon Wood, Assistant City Manager 949 - 644 -3222, swood @city.newport- beach.ca.us SUBJECT: Amendment to Professional Services Agreement with EIP Associates, Inc. and Budget Amendment — HCD Comments and Final Printing RECOMMENDATION: 1. Approve and authorize the Mayor and City Clerk to execute the Fourth Amendment to Professional Services Agreement with EIP Associates, Inc. 2. Approve budget amendment transferring $149,711 from the unappropriated General Fund reserve to account 2710 -8293 General Plan Update. DISCUSSION: The City has received comments from the State Department of Housing and Community Development (HCD) on our new Housing Element, which must be resolved before HCD will certify the element as complying with State law. Staff and EIP have discussed HCD's requirements and divided the work according to who can complete it most efficiently. Among the things required by HCD are an analysis of buildout capacity in the Airport Area and Newport Center, and justification of the market feasibility for mixed use development. This work would be best done by EIP. Their original contract and scope of work contemplated a much lower level of effort on the Housing Element. Because Newport Beach's previous element had been certified by HCD, we anticipated only an update for consistency with the new Land Use Element. However, new legislation requiring the additional analysis passed since the contract was written. Therefore, staff believes it is appropriate for the EIP contract to be amended for this work. The estimated cost of this work, including the potential for response to additional comments from HCD, is $21,965. Amendment to PSA with EIP Associates, Inc. and Budget Amendment March 27, 2007 Page 2 Staff also authorized EIP to prepare the administrative record for the lawsuit that was filed on the environmental impact report, because these materials needed to be prepared in a short time. The proposed amendment to the professional services agreement and the budget amendment include $5,000 for this work. The final item included in the amendment to the agreement with EIP corrects an earlier error. In 2003, the City Manager authorized use of the contingency amount of $50,000 for EIP to conduct additional biological studies that had not been anticipated when the scope of work was developed. In reviewing the budget for this amendment, I realized that the contingency of $50,000 had not been included in the contract amount approved by the City Council, although it had been shown in the project budget attached to the agreement, but below the bottom line. Additional funds are also needed for printing of the General Plan. The agreement with EIP provides that the City is responsible for printing. However, due to time constraints during the public review and adoption process, staff asked EIP to arrange for printing. These costs were paid from the General Plan Update account, resulting in an overrun of $52,746. We have received an estimate of nearly $20,000 for printing the final General Plan, some of which will be recouped through sale of the documents and CDs. Staff is requesting $72,746 for printing costs as part of the budget amendment. Submitted by: Sharon Wood Assistant City Manager Attachments: Fourth Amendment to PSA Budget Amendment FOURTH AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT, entered into this day of March 2007, by and between CITY OF NEWPORT BEACH, a Municipal Corporation (hereinafter referred to as "City ") and EIP Associates, Inc., whose address is 12301 Wilshire Boulevard, Suite 430, Los Angeles, CA 90025 (hereinafter referred to as "Consultant "), is made with reference to the following: RECITALS A. City and Consult ant entered into a Professional Services Agreement for a General Plan Update on June 10, 2003. B. Th e Professional Services Agreement was amended on August 10, 2004, increasing total compensation to consultant to $1,023,656. C. The Professional Services Agreement was amended on March 28, 2006, increasing total compensation to $1,575,787. D. The Professional Services Agreement was amended on August 22, 2006, increasing total compensation to $1,718,057.00. E. Th e Parties desire to amend the agreement to provide for preparation of the administrative record on the environmental impact report and response to comments from the State Department of Housing and Community Development on the Housing Element. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1'. COMPENSATION TO CONSULTANT Paragraph 3, Compensation to Consultant, is amended to provide that Consultant's compensation for all work performed in accordance with this agreement shall not exceed One Million, Seven Hundred Ninety -Five Thousand, Twenty -Two Dollars ($1,795,022.00). 3. NO AMENDMENTS TO REMAINDER OF AGREEMENT All other provisions of the Agreement shall remain in force and effect in their original form. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first written above. CITY OF NEWPORT BEACH A Municipal Corporation Bv: Steven Rosansky, Mayor ATTEST: LaVonne Harkless, City Clerk 9 CONSULTANT EIP Associates, Inc. By: Terri Vitar, Regional Vice President City of Newport Beach BUDGET AMENDMENT 2006 -07 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: NO. BA- 07BA -055 AMOUNT: $149,711.00 Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To increase expenditure appropriations for approval of the fourth amendment to the professional services agreement with EIP Associates, Inc. for HCD comments, preparation of administrative record for EIR lawsuit, and final printing for the General Plan Update. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 010 3605 REVENUE ESTIMATES (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Description General Fund - Fund Balance Description Amount Debit Credit $149,711.00 Signed: Signed: istrative AppKoval: City Manager City Council Approval: City Clerk 3 1231107 Dat Date Description Division Number 2710 Planning- Administration Account Number 8293 General Plan Update $149,711.00 Division Number Account Number Division Number Account Number Division Number Account Number ' Automatic System Entry. Signed:t�/fl /X� / % /�i�yiL` F anc jpl Approval: Administrative Services Director Date Signed: Signed: istrative AppKoval: City Manager City Council Approval: City Clerk 3 1231107 Dat Date COUNCI AGUIDA CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 10 March 13, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Sharon Wood, Assistant City Manager 949 -644 -3222, swood @city.newport- beach.ca.us SUBJECT: Amendment to Professional Services Agreement with EIP Associates, Inc. and Budget Amendment — HCD Comments and Final Printing RECOMMENDATION: 1. Approve and authorize the Mayor and City Clerk to execute the Fourth . Amendment to Professional Services Agreement with EIP Associates, Inc. 2. Approve 'budget amendment transferring $99,711 from . the unappropriated General Fund reserve to account 2710 -8293 General Plan Update. DISCUSSION: The City has received comments from the State Department of Housing and Community Development (HCD) on our new Housing Element, which must be resolved before HCD will certify the element as complying with State law. Staff and EIP have discussed HCD's requirements and divided the work according to who can complete it most efficiently. Among the things required by HCD are an analysis of buildout capacity in the Airport Area and Newport Center, and justification of the market feasibility for mixed use development This work would be best done by EIP. Their original contract and scope of work contemplated a much lower level of effort on the Housing Element. Because Newport Beach's previous element had been certified by HCD, we anticipated only an update for consistency with the new Land Use Element. However, new legislation requiring the additional analysis passed since the contract was written. Therefore, staff believes it is appropriate for the EIP contract to be amended for this work. The estimated cost of this work, including the potential for response to additional comments from HCD, is $21,965. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first written above. CITY OF NEWPORT BEACH CONSULTANT A Municipal Corporation EIP Associates, Inc. By: By: Steven Rosansky, Mayor Terri Vitar, Regional Vice President ATTEST: LaVonne Harkless, City Clerk 2 i City of Newport Beach BUDGET AMENDMENT 2006 -07 CT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues NX from unappropriated fund balance EXPLANATION: NO. BA- 07BA -055 AMOUNT: Sss,711.00 Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To increase expenditure appropriations for approval of the fourth amendment to the professional services agreement with EIP Associates, Inc. for HCD comments, preparation of administrative record for EIR lawsuit, and final printing for the General Plan Update. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 010 3605 RIIIUE ESTIMATES (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Division Account Division Account Division Account Division Account Number Number Number Number Number Number Number Number Description General Fund - Fund Balance Description Description 2710 Planning - Administration 8293 General Plan Update Signed: Sig• Administrative Approval: City Manager Signed: City Council Approval: City Clerk Amount Debit Credit $99,711.00 $99,711.00 Date Date Date