Report to Carson Reclamation Authority
Tuesday, April 04, 2017
Consent
SUBJECT:
Title
CONSIDER AWARDING AMENDIMENT NO. 1 TO A PROFESSIONAL SERVICES AGREEMENT WITH RE|SOLUTIONS, LLC, EXPANDING THE SCOPE OF WORK AND INCREASING THE CONTRACT AMOUNT BY $100,000, TO A TOTAL OF $300,000
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I. SUMMARY
This action would approve Amendment No. 1 to a Professional Services Agreement increasing the Scope of Work, particularly in the area of the DTSC negotiations, with RE|Solutions, LLC, increasing the contract amount by $100,000.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE Amendment No. 1 to a Professional Services Agreement with RE|Solutions, LLC for environmental regulatory and project management services, increasing the contract amount by $100,000.00.
2. AUTHORIZE the Chairman to execute the agreement in a form approved by Authority Counsel.
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III. ALTERNATIVES
TAKE any other action the Reclamation Authority Board deems appropriate.
IV. BACKGROUND
This Amendment No. 1 to a Professional Services Agreement with RE|Solutions (RES) increases the amount of the contract to reflect the additional duties they have been tasked to do since the approval of the original contract, as well as the greatly expanded set of negotiations with DTSC over regulatory issues since the original contract was approved in November.
These duties include:
1. Additional negotiation with DTSC on replacement financial assurance, enterprise fund rebalancing, Compliance Framework Agreement (CFA)/Explanation of Significant Differences (ESD), Site Soils classification, and Phased Development Plan. As part of the negotiation of the Tera Tech Termination and Release Agreement, an entire new compliance regime needed to be negotiated with the regulators, including providing evidence of the CRA’s financial capacity to perform the remedial work and future O&M. There are still myriad issues under negotiation with DTSC.
2. Management of data downloaded from TetraTech and assistance to GT in development and loading of document portal. The GT Document Management portal is also on the agenda: RES is instrumental in determining which documents from Tetra Tech and Envirostore will be loaded onto the site. This is a completely new task since the November contract.
3. Significant involvement in negotiation with Macerich and in drafting MOU including preparing the Master Development Schedule and the Responsibility Matrix. The Responsibility Matrix has helped negotiate most of the “who pays for what?” decisions between the CRA and Macerich at a level of specificity that was not captured in the MOU, helping head off future disagreements.
4. Responding to extensive requests from Macerich re: environmental due diligence, design of BPS and lot line issues.
5. Initiation of development coordination with Cell 1 developer and Vestar on Cells 3, 4, and 5.
6. Takeover of SCS coordination, and coordination of the private developer participation in City’s EIR and Specific Plan for the site. RES oversees SCS’ overall O&M contract and helps make decisions that could have regulatory impacts; the CRA still also needs to create an O&M protocol and manual: SCS started developing one with the assistance of Tetra Tech, but there still needs to be a quality check of the plan and the monitoring of its performance.
7. RES has also taken on much of the coordination of the private developers with the City’s EIR consultant.
One of the most important things is the ability to maintain the schedule that was included in the July 2016 ENA. Macerich is confident that they can hold up their end of the schedule from the shopping center design and construction end, but the CRA bears most of the responsibility for the environmental compliance. These responsibilities include the submittal and follow up of the PDP through DTSC, which is necessary for the ultimate receipt of the HRA by Macerich for Cell 2.
Ultimately, the CRA’s contracts with RES still may come in three sections, which may result in three separate contracts. The first is this consulting contract to initially provide the CRA the type of advice described above, as well as helping finalize the DTSC approval of the Tetra Tech termination, the AIG commutation, and assisting with the negotiation with the other Master Developer proposers. Most importantly, the initial scope would include drafting the bid specs for the new Environmental Contractor to replace Tetra Tech, as it is likely that the CRA, as a public agency, will need to bid with that work. From the bidding perspective, having one of the prospective contractors (e.g. either Tetra Tech or SCS) write bid specs for the future design and construction would be problematic and the CRA does not have the experience in-house to write the bid specs.
V. FISCAL IMPACT
Funds for this service are included in the adopted FY 2015/16 budget of the Authority.
VI. EXHIBITS
1. Amendment No. 1 to a Professional Services Agreement. (pgs. 4-8)
Prepared by: John Raymond, Executive Director