DATE: November 17, 2015
SUBJECT:
Title
RESOLUTION AUTHORIZING AMENDMENT NO. 2 TO THE THREE-PARTY AGREEMENT BETWEEN THE DISTRICT, PASHA AUTOMOTIVE SERVICES AND ICF JONES & STOKES, INC. FOR ENVIRONMENTAL REVIEW CONSULTING SERVICES FOR THE NATIONAL CITY MARINE TERMINAL TANK FARM REDEVELOPMENT AND STREET CLOSURES PROJECT TO INCREASE THE AGREEMENT AMOUNT BY $41,554 INCREASING THE AGGREGATE TOTAL OF THE AGREEMENT FROM $198,400 TO $239,954 AND EXTENDING THE AGREEMENT UNTIL JUNE 30, 2016
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EXECUTIVE SUMMARY:
In July 2013, District staff issued a Request for Proposals (RFP) for an environmental evaluation pursuant to the California Environmental Quality Act (CEQA) for the “National City Marine Terminal Tank Farm Redevelopment and Street Closures Project & Port Master Plan Amendment” (Project). Pasha Automotive Services (Pasha) is the Project Applicant. In March 2014, the District, ICF Jones & Stokes, Inc. (ICF), and Pasha entered into a three-party agreement whereby the District retains and directs ICF on the environmental evaluation, and Pasha is responsible for the costs of retaining ICF. The agreement total was $138,640 and the agreement was to terminate on December 31, 2014.1 Pursuant to Board of Port Commissioners (Board) Policy No. 110, Board action was not needed to enter into the agreement as the aggregate total of the agreement did not exceed $175,000.
At the time the RFP was issued, it was anticipated that a Mitigated Negative Declaration (MND) would be the appropriate CEQA document for the proposed Project. However, upon ICF’s completion of the Initial Study, it was determined that the Project has the potential to result in some significant and unmitigable environmental impacts and that preparation of an Environmental Impact Report (EIR) was warranted. Preparation of an EIR required an amendment to the agreement. That amendment, Amendment No. 1, caused the aggregate agreement amount to exceed $175,000 and, pursuant to Board Policy No. 110, required Board approval. On November 4, 2014 (per Resolution 2014-219), the Board authorized Amendment No. 1 to increase the agreement amount by $59,760, increasing the aggregate total of the agreement from $138,640 to $198,400 and extending the agreement until December 31, 2015.2
A Notice of Preparation (NOP) was issued for the Project in December 2014. The NOP was re-issued on August 20, 2015. Changes to the Project, as well as additional work items not anticipated in the original Scope of Work, have resulted in the need for a second amendment to the agreement. Board approval is required for the second amendment pursuant to Board Policy No. 110, Part II. District staff recommends that the Board authorize Amendment No. 2 to the agreement with ICF and Pasha to increase the agreement amount by $41,554, increasing the aggregate total of the agreement from $198,400 to $239,954 and extending the agreement until June 30, 2016 (Attachment A).
RECOMMENDATION:
Recommendation
Adopt a resolution authorizing Amendment No. 2 to the agreement with ICF Jones & Stokes, Inc. for environmental review consulting services for the National City Marine Terminal Tank Farm Redevelopment and Street Closures Project & Port Master Plan Amendment to increase the agreement amount by $41,554, increasing the aggregate total of the agreement from $198,400 to $239,954 and extending the agreement until June 30, 2016.
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FISCAL IMPACT:
This agenda item has no fiscal impact. This Board action would amend the three-party agreement with Pasha, ICF, and the District. This agreement requires Pasha, as the Project Applicant, to pay ICF directly for District-authorized work for the proposed Project and would not require any expenditure of District funds.
Compass Strategic Goals:
Authorization of Amendment No. 2 to the agreement would allow continuation of the environmental review process for the Project. The Project would provide additional space for Pasha’s marine terminal operations and help ensure that the San Diego region remains a valuable asset in the maritime business by continuing to support well-established marine terminal operations.
This agenda item supports the following Strategic Goals.
• A thriving and modern maritime seaport.
• A Port with a healthy and sustainable bay and its environment.
• A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
Project Description
In December 2014, the District issued an NOP of a Draft EIR for the Project. At that time, the Project included the following four main components, totaling approximately 57.0 acres:
• Paving the former tank farm.
• Closure of portions of Quay Avenue and 28th Street.
• PMPA to remove Quay Avenue and 28th Street as streets in the Port Master Plan and designate the areas Marine Related Industrial.
• Potential renewal of short-term Tideland Use and Occupancy Permits in the vicinity of NCMT.
In early 2015, Pasha requested that additional components be added to the Project as follows:
• Use of an approximately 6-acre parcel of District property previously leased to Weyerhaeuser.
• Closure of the portion of 32nd Street west of Tidelands Avenue.
As with the closure of portions of Quay Avenue and 28th Street, the closure of 32nd Street west of Tidelands Avenue would need to be added to the PMPA to change the land use designation from “Street” to “Marine Related Industrial.”
In addition, as the result of comments received on the NOP, staff added the following items to the PMPA:
• Incorporate District-owned uplands properties located north of the marina (part of the area also known as “Lot K”), east and west of Marina Way. Designate the property as Commercial Recreation, and add an overlay that would allow temporary, short-term marine-related industrial uses on the portion located west of Marina Way. The incorporation of these properties into the Port Master Plan are clean-up items remaining from the District’s acquisition of upland property.
• Add an overlay that would allow for marine-related industrial uses on the property designated “commercial recreation,” north of the boat launch ramp and south of 32nd Street, until a commercial development is developed on that site.
The Project components are identified on Attachment B.
Although not required pursuant to CEQA, at the request of interested parties, the District re-issued the NOP in August 2015.
The tank farm and street closures, which collectively total approximately 11.2 acres, as well as the approximately six-acre former Weyerhaeuser site, would provide additional space for Pasha’s marine terminal operations, including staging vehicles for import and export. The tideland use and occupancy permit sites total approximately 47 acres. The Project does not propose any new development on the tideland use and occupancy permit sites; however, the Project does assume a maximum theoretical throughput associated with these sites as the sites have the potential to handle more vehicle throughput on an annual basis. No development is proposed on the former Weyerhaeuser site. Quay Avenue, 28th Street, and 32nd Street are District roads and are not dedicated city streets.
CEQA Consulting Services Agreement
On March 26, 2014, the District, ICF, and Pasha entered into a Three-Party Agreement whereby the District retains and directs ICF, and Pasha is responsible for the costs of retaining ICF. The executed agreement was for a not-to-exceed fee of $138,640 for a term of 12 months, expiring on December 31, 2014.1 Pursuant to Board Policy No. 110, Part II, Board action on an agreement is not needed when the agreement expenditure is below $175,000.
At the time the RFP was issued and ICF was retained, it was anticipated that an MND would be the appropriate CEQA document for the proposed Project. Upon ICF’s completion of the Initial Study portion of the MND, it was determined that the Project has the potential to result in some significant and unmitigable environmental impacts and that preparation of an EIR is warranted. District staff subsequently notified Pasha of this determination and the District, with the assistance of ICF, drafted an amendment to the agreement for the tasks necessary to complete an EIR for the Project. That first amendment to the agreement resulted in the aggregate agreement amount exceeding $175,000; therefore, Board approval was required to enter into the first amendment to the agreement. On November 4, 2014 (per Resolution 2014-219), the Board authorized Amendment No. 1 to the agreement with ICF and Pasha to increase the agreement amount by $59,760, increasing the aggregate total of the agreement from $138,640 to $198,400 and extending the agreement until December 31, 2015.2
The Project revisions described above, as well as additional work items not anticipated in the original Scope of Work, have resulted in the need for a second amendment to the agreement. These additional work items are related to the following:
• Expansion of greenhouse gas (GHG) analysis to include post-2020 analysis.
• Additional cumulative project and project alternative analysis.
• Modifications to PMPA.
• Potential demolition of two structures on the former Weyerhaeuser Lumber site.
Board approval is required for the second amendment as the amount exceeds the value for which an amendment can be approved at a staff level pursuant to Board Policy No. 110, Part II. District staff recommends that the Board authorize Amendment No. 2 to the agreement with ICF and Pasha to increase the agreement amount by $41,554, increasing the aggregate total of the agreement from $198,400 to $239,954 and extending the agreement until June 30, 2016.
General Counsel’s Comments:
The General Counsel’s Office reviewed this agenda sheet as presented to it and the proposed Second Amendment to Agreement with ICF Jones & Stokes, Inc., and Pasha Automotive Services and has approved them as to form and legality.
Environmental Review:
The proposed Board action does not constitute a “project” under the definition set forth in CEQA Guidelines Section 15378 and is therefore not subject to CEQA. No further action under CEQA is required. The Board’s authorization of Amendment No. 2 to the agreement will facilitate ICF’s continuation of the environmental review process for the Project.
The proposed Board action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit (CDP) Regulations. Therefore, issuance of a CDP or exclusion is not required for the proposed Board action.
Equal Opportunity Program:
Due to limited sub opportunities, no small business participation goal was established for RFP 13-25.
PREPARED BY:
Anna Buzaitis
Senior Redevelopment Planner
Environmental & Land Use Management
Attachments:
Attachment A: Draft Second Amendment to Agreement
Attachment B: Project Location Map
1Agreement for Environmental Review Consulting Services, filed on March 26, 2014, on file in the Office of the District Clerk bearing Document No. 61431
2First Amendment to Agreement, filed on December 1, 2014, on file in the Office of the District Clerk bearing Document No. 62618