REPORT TO COUNCIL
SUBJECT
Title
Action on Amendments to Three Professional Service Agreements for the Related Santa Clara Development Project Extending the Terms with Milstone Geotechnical Consulting Services, Valbridge Property Advisors and Robert E. Van Heuit and Related Budget Amendment
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The Related Santa Clara project is a 9.1 million square foot development on a former all-purpose landfill site. There are various local and state agencies that are charged with the oversight of a closed landfill. City staff and Related Santa Clara (Developer) have been working closely with these agencies in order to secure necessary approvals and permits to allow for the future construction of the project.
The Related Santa Clara project is a complex, multi-faceted development project that requires significant technical expertise beyond City and other regulatory agencies’ staff knowledge on matters related to the landfill as well as disciplines in other areas.
The City has entered into several third-party consulting agreements to assist with the work associated with the Project. The term of third-party consulting agreements expired on December 31, 2022. These contracts are funded by Related Santa Clara (Developer), through advances provided to the City as required by the June 2016 Disposition and Development Agreement.
The requested action is for an extension of the term, retroactive to the expiration date and to add funds in two of the Agreements modifying the total not-to-exceed contract amount.
DISCUSSION
While Related Santa Clara has commenced ground lease payments for the first phase of the Project, work is ongoing related to the landfill and an ongoing eminent domain matter. The continuation of the Milstone and Van Heuit agreements are necessary for the County to continue to review the impacts of the project on the landfill. The continuation of the Valbridge agreement is necessary for expert testimony.
Barry Milstone DBA Milstone Geotechnical - Amendment No. 6
On January 23, 2019, the City entered into an Agreement for Services with Barry Milstone DBA Milstone Geotechnical (Milstone Geotechnical) to provide technical advice and assistance to the Santa Clara County Department of Environmental Health (County) for its review of the project on behalf of the City.
Milstone Geotechnical has been providing technical advice and assistance to the County as the Local Enforcement Agency with oversite of the landfill for its review of the Related Santa Clara project. Working closely with Robert Van Heuit, the scope of work includes environmental review of permit applications, landfill closure plan, site development plans, and other information as necessary to evaluate and prepare plan review documents for submission to the County.
The contract has an expiration date of December 31, 2022. The scope of work on behalf of the County is not yet complete and additional services are needed. Approval of Amendment No. 6 to the Agreement would allow the City/County to continue to access the Contractor’s services for the scope by adding $30,000 for a total not-to-exceed amount of $200,000 and extending the term through December 31, 2023.
Hulberg and Associates, Inc., DBA Valbridge Property Advisors - Amendment No. 6
Valbridge is one of the largest independent commercial property valuation and advisory services firms in the United States. Norm Hulberg, principal in Valbridge’s San Jose office, has been providing commercial appraisal services in Northern California since 1976.
In April 2018, the City entered into an agreement with Hulberg and Associates, Inc., DBA Valbridge Property Advisors (Valbridge) to provide appraisal services to support the ongoing eminent domain actions. The scope of work includes preparation of appraisals, providing property and lease comparable and valuation consulting, and expert testimony. The eminent domain action was anticipated to have concluded in 2022 but the trial was postponed and is now anticipated to commence in May 2023. Valbridge will provide expert testimony on behalf of the City in the matter.
As the eminent domain actions are not complete and additional services are needed. Approval of Amendment No. 6 would allow the City to continue to access Valbridge’s services for this scope through December 31, 2023. No additional funds will be added to the not-to-exceed contract amount.
Robert E. Van Heuit - Amendment No. 5 to the Amended and Restated Agreement
Robert Van Heuit provides technical expertise to the County Department of Environmental Health in coordination with Milstone Geotechnical as necessary to review the Related Santa Clara project. On September 27, 2018, the City entered into an Agreement for Services with Robert E. Van Heuit (Van Heuit) to assist the County with its review of the project. The scope of work includes environmental review of permit applications, landfill closure plan, site development plans, and other information as necessary to evaluate and prepare plan review documents for submission to the County.
The contract has an expiration date of December 31, 2022. The scope of work is not yet complete and additional services are needed. Approval of Amendment No. 5 to the Amended and Restated Agreement would allow the City/County to continue to access the Contractor’s services for the scope by adding $30,000 for a total not-to-exceed amount of $430,000 and extending the term through December 31, 2023.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of a California Environmental Quality Act (“CEQA”) pursuant to the CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The existing contract costs are budgeted in the Capital Improvement Program budget under the Related Santa Clara Developer Fund. The budget amendment in the following table increases the current project budget by the additional $60,000 for the Milstone Geotechnical and Van Heuit agreements, with a corresponding increase to the developer contributions revenue estimate.
Budget Amendment
FY 2022/23
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Related Santa Clara Developer Fund |
|
|
|
|
Revenue |
|
|
|
|
Developer Contributions |
$1,657,217 |
$60,000 |
$1,717,217 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Other Development Project Services |
$650,000 |
$60,000 |
$710,000 |
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
Approve and authorize the City Manager to execute:
1. Amendment No. 6 with Barry Milstone DBA Milstone Geotechnical Consulting Services for the Related Santa Clara Development Project to add $30,000 for a total not-to-exceed contract amount of $200,000 and to extend the term through December 31, 2023;
2. Amendment No. 6 with Hulberg and Associates, Inc., DBA Valbridge Property Advisors for Consulting Services for the Related Santa Clara Development Project to extend the term through December 31, 2023; and
3. Amendment No. 5 to Amended and Restated Agreement with Robert E. Van Heuit for Consulting Services for the Related Santa Clara Development Project to add $30,000 for a total not-to-exceed contract amount of $430,000 extend the term through December 31, 2023.
4. Any further Amendments to the Agreements to extend the term or modify hourly rate schedule only with no additional funds added to the Agreement.
5. Approve the FY 2022/23 budget amendment in the Related Santa Clara Developer Fund to recognize developer contributions in the amount of $60,000 and increase the Other Development Project Services project by $60,000 (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Ruth Mizobe Shikada, City Manager’s Office
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Amendment No.6 with Barry Milstone DBA Milstone Geotechnical Consulting Services
2. Agreement and Amendments 1-5 with Milstone Geotechnical Consulting
3. Amendment No. 6 with Hulberg and Associates, Inc., DBA Valbridge Property Advisors
4. Agreement and Amendments 1-5 with Hulberg and Associates, Inc., DBA Valbridge Property Advisors
5. Amendment No. 5 to Amended and Restated Agreement with Robert E. Van Heuit
6. Agreement and Amendments 1-4 with Robert E. Van Heuit