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Home My WebLink AboutENVIRONMENTAL PLANNING DEVELOPMENT SOLUTIONS, INCA-2020-241-15-02A INSURANCE NOT ON FILE MAYOR WORK MAY NOT PROCEEF Valerie Amezcua CITY CLERK MAYOR PRO TEM DATE: Jessie Lopez COUNCILMEMBERS Phil Bacerra Johnathan Ryan Hernandez David Penaloza Thai Viet Phan Benjamin Vazquez VVW#kreq 1) Qr M N O � August 15, 2023 co Jeremy Krout, President EPD Solutions, Inc. 3333 Michelson Dr., Suite 500 Irvine, CA 92612 CITY OF SANTA ANA PLANNING AND BUILDING AGENCY 20 Civic Center Plaza • P.O. Box 1988 Santa Ana, California 92702 M .santa-ana.oro Re: Amendment to Side Letter No. 2 (A-2020-241-15-02) CEQA Compliance — Bristol Related Project Dear Mr. Krout, CITY MANAGER Kristine Ridge CITY ATTORNEY Sonia R. Carvalho CITY CLERK Jennifer L. Hall Pursuant to Section I ("Scope of Services") of Agreement No. A-2020-241-15 entered into by Environment Planning Development Solutions, Inc. dba EPD Solutions, Inc. ("Consultant") and the City of Santa Ana ("City"), dated December 1, 2020, Consultant hereby accepts this amended Letter Agreement for an assignment for on -call planning and technical services for the project listed above. Consultant shall complete the services per the proposal dated April 25, 2023 (attached as Exhibit A-1 to this Letter Agreement). Compensation is subject to Section 14 of Attachment A-1 to this Letter Agreement. The total compensation for this assignment shall be increased by $167,946.00 and the total compensation for these amended services shall not exceed $520,819.00. All other terms and conditions of the Agreement remain unchanged and in full force and effect. If you have any questions regarding this matter, please contact Ricardo Soto or Ali Pezeshkpour in the Planning and Building Services Agency at 714-667-2793. Sincerelyy,--,,, Minh Thai Executive Director Planning & Building Services Agency APPROVED AS TO FORM: Sonia R. Carvalho City Attorney s �4 l onathan Martinez Assistant City Attorney A-2020-241-15-02-01 Valerie Amezma Jessie Lopez Thai Viet Phan Mayor Mayor Pro Tem, Wan] 3 Wand veme.a(atsantaana am iessielooezldsanla-ana.ora iph,n,a5 nta-ana or onsuftaut Jeremy Krout President EPD Solutions, Inc. SANTA ANA CITY COUNCIL Benjamin Vazquez Phil Raceme Jahmtm. Ryan Hemandez David Penaloza Wald Ward Ward Wand byazauez0san - obecena(a)sama-ana om yanhomandezodsanla-anon tlgenalozaitleana EXHIBIT A-1 A-2020-241-15-02A ENVIRONMENT i PLANNING I (DEVELOPMENT SOLUTIONS, I ND. April 25, 2023 Ricardo Soto, AICP All Pezeshkpour, AICP Planning and Building Agency City of Santa Ana rsoto@santo-ana.org RE: Amendment 1 to the Bristol Specific Plan EIR Scope of Work Dear Ricardo and Ali, We have enjoyed working with you to -date on this project. As discussed in the kickoff meetings, we were tasked with identifying qualified firms to assist with peer reviewing the fiscal impact analysis report, completing a community benefits analysis and community serving retail analysis. Based on past experience working DTA, formerly David Taussig Associates, EPD Solutions requested scopes of work from DTA to complete the requested studies, which are provided below. Additionally, we have been asked to expedite the EIR preparation schedule, which requires a significant amount of additional effort; therefore, an amendment is needed. We request the City approve this proposal to amend our scope of work and budget to include the additional scope of work and fee below. AMENDED SCOPE OF WORK The following tasks continue from the previously approved scope of work. Subtask 1.5 Airport Land Use Consistency (ALUC) Determination (If Authorized) This task was included in the proposal if the project required EPD to assist the City with processing the ALUC applications and review. During the project initiation efforts, EPD was informed EPD's services were not needed for this task. The fees associated with this task were not included in the approved contract amount; therefore, not executing this task will not change in the approved fees. 2. Notice of Preparation and Scalping Meeting The approved contract distinguished 3 separate tasks for the Initial Study (2.1), Preparation of the NOP (2.2) and the Scoping Meeting (2.3). Tasks 2.2 and 2.3 were scoped based on past experience with EIRs. However, after the Task 1 efforts, we began the efforts to prepare the NOP. Due to multiple versions of the NOP, and with the format of the scalping meeting and the large number of team members that were required to support the scoping meeting, the budgets for tasks 2.2 and 2.3 were exceeded. However, the budget for the overall Task 2 was not exceeded. Approximately 65% of the task 2 budget was expended. The balance of the budget will be used as part of the later tasks if needed. 10. Project Market Assessment and Development Feasibility Analysis DTA shall provide an assessment of the levels of supply and demand for residential, retail and hotel uses on the Project site, as well as a feasibility analysis to evaluate the residual land value of the Project site and the likelihood that the Project will ultimately be financially successful. Plans for the proposed Project include up to 3.750 multifamily residential units. 350,000 square feet of retail uses, 250 hotel rooms and a senior living facility with up to 200 residential units. OTA will undertake the following tasks to prepare this market assessment and development feasibility analysis: 10.1. Background Project and Fiscal Research DTA shall review selected development parameters associated with the Project, including Project land use and public infrastructure data. Specifically, OTA would undertake the following subtasks: • Verify existing land use designations and proposed development within the Project by land use type; Urban Planning a Due Diligence a Entitlements m CEG1A/NEPA m Development Services a Management a Public Outreach 3333 Michelson Drive, Suite 500 m Irvine, Calif. 92612 949.794.1180 a info@epdsolutions.com April 25, 2023 Facie I2 Bristol Specific Plan EIR Amendment 1 • Determine projected market prices and/or project valuations of the proposed product types; • Determine demographic characteristics by land use type, including persons per household or employees per thousand square feet; • Confirm the public infrastructure to be constructed by the Project proponent. 10.2. Economic Overview of Project Trade Areas DTA shall conduct research to examine and summarize the local and regional economic conditions that serve as a basis for assumptions to be utilized in the Market Assessment of the Project. This task Includes the following subtasks: • Determine the Project's Trade Areas based on key factors, such as population density, political boundaries, the scope of the Project's development, and the location of residential projects, retail centers and hotels close to the Project site that are likely to represent competition. • Compile a demographic profile of the Project's Trade Areas, including existing population and employment, and the projected growth of these factors resulting from the Project, once trade areas have been determined. • Provide a summary of the local and regional economic conditions. 10.3. Existing Supply Conditions in Each Trade Area DTA shall examine the existing market conditions for the Trade Areas, including an assessment of existing inventory and recent growth trends for multifamily residential, retail and hotel development (the "Development Categories") within the Trade Areas. This task shall include the following determinations for each of the three Development Categories: • Current inventory and recent inventory trends; • Current vacancy rates and recent vacancy rate trends; and • Current rent levels/hotel room rates and recent rent level/hotel room rate trends. 10.4. Existing and Future Demand in Each Trade Area DTA shall examine the existing market demand for the three Development Categories in the Trade Areas, as well as the total demand for each of the Development Categories once the Project has been completed. This task shall include the following determinations: • Current demand for rental housing and updated demand for rental housing once Project has been completed; • Current demand for retail development and updated demand for retail development once Project has been completed; and • Current demand for hotel development and updated demand for hotel development once Project has been completed. 10.5. Comparison of Future Supply and Future Demand in Each Trade Area DTA shall prepare a comparison of the future supply and future demand for each of the three Development Categories based on the following: Determine future supply within the Trade Areas for each of the three Development Categories based on the current supply within the Trade Areas determined under combined with the Project land uses determined under Task 10.1; Compare the future supply for each of the three Development Categories with the future demand for each of the Development Categories that are anticipated within each of the Trade Areas once the Project has been completed, as determined under Task 10.4; Verify that the future demand within the Trade Areas for each Development Category is greater than the future supply for each Development Category. 10.6. Development Feasibility DTA shall prepare a dynamic baseline proforma of the proposed privately developed portion of the Master Plan incorporating the information obtained under Tasks 10.1 - 10.5, including an analysis of the time value of April 25, 2023 Page 13 Bristol Specific Plan EIR Amendment 1 the projected cash flow anticipated to complete the construction of the Project and the sale/rental all of the completed uses. The pro forma will include a complete cash flow analysis through build -out and discount factors to determine residual land value in 2023 dollars. 11. Fiscal Impact Analysis (FIA) Peer Review DTA shall review the FIA for the Project, dated February 7, 2023, prepared by The Natelson Dale Group, Inc. (NDG) regarding the fiscal impacts of the Project on the City's General Fund. More specifically, DTA shall evaluate NDG's methodology and assumptions regarding fiscal revenues generated by the Project and municipal service costs incurred thereon. Under this approach, DTA will thoroughly review the assumptions utilized by NDG in analyzing the City's current annual budget to determine costs related to the City's provision of services to its residents, as well as its General Fund revenue sources. DTA will undertake the following tasks to analyze the FIA: 11.1. Background Project and Fiscal Research This task involves reviewing selected fiscal parameters relevant to the Project, Including Project land use and public infrastructure data, and obtaining material required for the fiscal analysis from the City, such as the current City budget. Specifically, DTA would verify the following aspects of the FIA: • Verify existing land use designations and applicant provided proposed development by land use type; • Verify projected market prices and/or project the valuation for each product type • Confirm all unique new public improvements associated with the existing land use designations, including major backbone roads, storm drains, streetlights, park acreage, landscaped areas, natural open space, recreational activity areas, water quality basins, etc., that are to be maintained by the City;* • Confirm demographic characteristics by land use type, including persons per household or employees per thousand square feet; and • Review Assessor Parcel Numbers (APNs) and determine the total average property tax rate for each Tax Rate Area (TRA) currently included within the Project, obtain breakdowns of average general levy tax allocation factors from the Orange County Auditor -Controller for each TRA, and determine the various public agencies currently providing services to the Project. 1 1 .2. City General Fund Cost Analysis DTA will primarily employ the Per Capita/Employee Multiplier Approach for verifying recurring City General Fund costs associated with the Project. This task includes an evaluation of the FIA's analysis of the City's current operating budget and relevant City studies or reports. 11.3. City General Fund Revenue Analysis DTA will generally employ the Case Study Method to verify the FIA's annual recurring City General Fund revenues for the Project, such as sales taxes, property taxes, and investment income. DTA will calculate property taxes based on the TRAs in which the Project is located. Where applicable, DTA will employ the Per Capita/Employee Multiplier Method for verifying other recurring City General Fund revenues, such as fines and forfeitures, State subventions, and other miscellaneous revenue sources. This task will involve an analysis of the City's current operating budget for applicable revenue categories. 11.4. Net FIA Based on the information obtained under Task 11.1 and analysis of expected Project costs and revenues under Tasks 11.2 and 11.3, respectively, DTA will evaluate the FIA's determinations related to the fiscal balance of the Project (i.e., an analysis of whether the Project is expected to generate an annual surplus or deficit for the City General Fund at build -out). 11.5. Prepare Executive Summary for FIA's Conclusions DTA shall prepare a summary of its critique of the FIA's conclusions in the form of an Executive Summary of the fiscal impacts of the Project. April 25, 2023 P a g e j 4 Bristol Specific Plan EIR Amendment 1 12. Economic Impact Analysis (EIA) Peer Review DTA shall review the EIA for the Project, dated February 7, 2023, prepared by NDG regarding the economic impacts of the Project. The EIA identifies the general economic Impacts of the Project and quantifies those impacts where possible. General economic output impacts include additions to regional output (gross receipts or sales), earnings (the sum of wages and salaries, proprietors' income, and other labor income), and employment (the number of direct, indirect, and induced jobs created). 12.1. Recurring Job Creation DTA will verify the number of new jobs created on -site by each component of the Project as reflected in the EIA, and based on the number of new on -site jobs created, DTA shall calculate indirect and induced City employment as determined through the Impact Analysis for Planning ("IMPLAN") input/output modeling system utilized In the EIA. 12.2. Recurring Sales Impacts Retail sales in the City will increase with the development of the Project indirectly from resident and employee purchases made within the City. DTA will confirm the EIA's assumptions regarding the indirect retail sales generated from off -site retail expenditures by residents and employees and the multiplier effect of that spending on the local and regional economy. The multiplier effect will be estimated using data available from IMPLAN. 12.3. Recurring Economic Impacts Based on the recurring employment impacts determined under Task 12.1, DTA shall confirm the EIA's sum of the wages and salaries associated with these recurring direct, indirect, and induced jobs and the total economic output associated with the Project. 12.4. One -Time Output, Wage, and Employment Impact The Project will generate one-time increases in output and wages from the construction and development of the Project and all related site improvements. DTA will verify the number of off -site jobs created through indirect and induced impacts. Indirect and induced impacts represent the multiplier effect of increases in wage and output on all sectors within the City's economy. 12.5. Prepare Handout and Executive Summary for EIA's Conclusions DTA shall prepare a summary of the EIA's conclusions in a form of a handout and an Executive Summary of the fiscal and/or economic impacts of the Project. One round of review is assumed and 2 virtual meetings with the City and applicant. Attendance at a public hearing for the project is excluded. 13. Community Benefits Analysis and Meetings 13.1. Community Benefits Analysis Report DTA will memorialize terms of the proposed community benefits that have been negotiated between the Project proponent and City and assess the value and feasibility of such benefits on both quantitative and qualitative bases in the form of a Community Benefit Analysis Report (the "CBA"). The CBA will analyze the financial value or socioeconomic benefits to the City arising from the Project's contributions related to regional and neighborhood infrastructure improvements (including mobility and urban amenity improvements), public parking resources, neighborhood/community parks and open space, cultural facilities, affordable and workforce housing, school facilities, development impact fees, use of prevailing wages for construction jobs, local hiring requirements and employment outreach efforts to disadvantaged communities. DTA will include a summary of the fiscal and economic impacts of the Project benefits as determined in the prior tasks of this Scope of Work. 13.2. Meetings DTA shall attend up to one in -person meeting at the City, as well as up to 3 virtual meetings with representatives of the City and other stakeholders. 14. Expedited EIR Preparation Schedule April 25, 2023 P a a e I5 Bristol Specific Plan EIR Amendment 1 An expedited EIR preparation schedule has been requested, which would reduce the EIR preparation schedule by approximately 3 months to October from the original 12-month schedule (25% reduction). The reduced timeframe will require a substantial amount of additional effort by EPD team members to complete the EIR in this timeframe, including overtime and allocating other EPD team members onto this project to support the additional effort. Due to the increased cost of doing so, on amendment to the budget is needed, which reflects a 25% increase to the budget. SCHEDULE FOR TASKS 10 - 13 An administrative draft of the analyses will be provided in 5 weeks from receipt of information to be requested in data needs request list. AMENDED BUDGET The following table presents the amended budget with the inclusion of the two new tasks. Tasks Fee Type Approved Fee Amended Fee Task 1: Project Initiation, Project Description, and Peer Review ofTechnicalStudies - Subtask ?A Kick -Off Meeting and Scope Fixed Fee $ 2,710 Subtask 1.2 Prepare Project Description Fixed Fee $ 4,880 Subtask 7.3 AB52 & SB 78 Consultation Fixed Fee $ 6,665 Subtask 7.4 Peer Review Technical Studies Fixed Fee $ 21,700 Task 2:.Notice of Preparationand Scoping Meeting Subtask 2.7 Initial Study Fixed Fee $ 16,100 Subtask 2.2 Prepare and Circulate NOP Fixed Fee $ 1,600 Subtask 2.3 Scoping Meeting Fixed Fee $ 4,100 Task 3; Administrative Draft EIR Subtask 3.1 Administrative Draft EIR Fixed Fee $ 98,725 Subtask 3.2 Revised Administrative Draft EIR (two revisions) T&M $ 29,260 `Task 4.-Public Draft. EIR:(w/ NOC & NOA) -T&M $ 8,610 Tasks. Preparation of Final EIR/Response to Comments Subtask 5.1 & 5.4 Administrative Draft Final EIR (w/ Errata & MMRP) T&M $ 24,420 Subtask 5.2 Revised Draft Final EIR T&M $ 9,760 Subtask 5.3 Final EIR T&M $ 1,700 Task 6.Findings & Statement of Overriding .Considerations. .Fixed Fee $ 16,100 Task 7. Notice of Determination Fixed Fee $ 1,600 Task 8. Project Management, Meetings and Community Outreach- Management Fixed Fee $ 26,575 Meetings Fixed Fee $ 25,600 Task 9. Planning Commission and City Council Hearings Fixed Fee $ 14,680 - April 25, 2023 Page 16 Bristol Specific Plan EIR Amendment 1 Tasks Fee Type Approved Fee Amended Fee Task 10. Project Market Assessment and Development Feasibility Analysis Fixed Fee $ 34,500 Task 11. Fiscal Impact Analysis (FIA) Peer Review Fixed Fee $ 17,250 Task 12. Economic Impact Analysis (EIA) Peer Review Fixed Fee $ 14,375 Task 13. Community Benefits Analysis and Meetings Fixed Fee $ 20,125 Task 14. Expedited EIR Preparation Schedule Fixed Fee $ 78,696 Amendment #1 Subtotal $ 164,946 LABOR SUBTOTAL $ 374,785 $ 479,731 EXPENSES BUDGET $ 12,000 $ 15,000 6-Month Contingency $ 26088 TOTAL $ 352,873 $ 520,819 Should you have any questions, please do not hesitate to contact me at (949) 791-1181 or Jeremy d).eodsolutions.com. Respectfully submitted, EPD Solutions, Inc. J remy KroUt President/CEO Agreed to by: Name Date