CC 2020-07-14_08i Amendment to Agreement_Circulation Element Update
MEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY MCDONALD, COMMUNITY DEVELOPMENT DIRECTOR
BY: ROBIN DICKERSON, CITY ENGINEER
SUBJECT: CONSIDERATION OF APPROVAL OF A FOURTH AMENDMENT TO
THE AGREEMENT FOR CONSULTANT SERVICES WITH GHD INC.,
FOR THE GENERAL PLAN CIRCULATION ELEMENT UPDATE (GPA
19-001)
DATE: JULY 14, 2020
SUMMARY OF ACTION:
Approval of the Fourth Amendment to the Agreement for Consultant Services with GHD,
Inc., to complete the General Plan Circulation Element Update and associated
Guidelines, Transportation Impact Fee Update, and required environmental review.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The cost proposal from GHD totals $70,050 for the new scope of work. The FY 2020/21
Budget includes the $70,050 of the total $260,500 for Contractual Services for General
Plan updates and studies, which is sufficient to cover this contract amendment.
Significant staff hours will be required primarily from Community Development in order to
complete this update to the General Plan.
RECOMMENDATION:
It is recommended the City Council approve the Fourth Amendment to the Agreement for
Consultant Services with GHD Inc. for preparation of the General Plan Circulation
Element Update, interim VMT Guidelines, Transportation Impact Analysis Guidelines,
Transportation Impact Fee Update, and required environmental review.
BACKGROUND:
Significant work has been completed over the past several years, as time and resources
permitted, that inform the Circulation Element Update, including preparation of base
transportation conditions, corridor and operational studies, a transportation model update,
and initial draft policies.
On February 10, 2015, the City Council awarded a three-year Agreement to Omni Means
for On Call Services Civil Engineering specializing in Traffic Engineering. On February
27, 2019, the City Council amended the agreement to extend the agreement for a two-
Item 8.i. - Page 1
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A FOURTH AMENDMENT TO THE AGREEMENT
FOR CONSULTANT SERVICES WITH GHD INC., FOR THE GENERAL PLAN
CIRCULATION ELEMENT UPDATE (GPA 19-001)
JULY 14, 2020
PAGE 2
year term and to change the name of the company from Omni Means to GHD Inc. On
May 14, 2019, the City Council authorized a second amendment to add the Circulation
Element Update to GHD’s scope of work at a cost of $90,600. On February 25, 2020, the
City Council authorized a third amendment to extend the agreement for one additional
year, as it did for other on-call engineering agreements that were being used for active,
ongoing projects.
ANALYSIS OF ISSUES:
The last comprehensive update to the City’s General Plan occurred in 2001. Since then,
several updates have been approved to various elements. The last major circulation plan
completed was the Bicycle and Trails Master Plan in 2012. The Circulation Element is not
simply a transportation plan, but rather a strategy addressing multiple infrastructure needs
for the circulation of people, goods, and utilities. By statute, the Circulation Element must
correlate directly with the Land Use Element, but also has direct relationships with other
elements. The provisions of a Circulation Element affect a community’s physical, social,
and economic environment, as well as its health. Further, recent legislation has driven
change in the way local governments approach transportation and the types of solutions
available, including:
• The Complete Streets Act
• Global Warming Solutions Act (AB 32)/(SB 32)
• The Sustainable Communities and Climate Protection Act (SB 375) and the completion
of Sustainable Communities Strategies
• CEQA Streamlining for infill projects (SB 226)
• Shift in CEQA transportation metric away from Level of Service (LOS) to Vehicle Miles
Traveled (VMT) (SB 743)
The primary body of work for the Circulation Element Update includes utilizing recent and
new peak hour traffic counts along with the regional traffic model to update base
conditions and provide traffic forecasts in order to build the long-term capital improvement
program. Draft policies and guidelines will be updated in accordance with State law and
circulated for public review. Additionally, environmental review will commence and
policies will be prepared to address the new significant State requirements of SB 743 for
VMT thresholds. SWCA is the local firm subcontracted through GHD to complete the
environmental documents for the Circulation Element Update.
GHD has made significant progress under the current contract, including completing the
following documents and administrative draft documents that are currently in internal
review by City staff:
Updated Draft Existing Conditions Background Report, with all new traffic counts;
Policy Audit Matrix, comparing existing CE policies with proposed changes;
Item 8.i. - Page 2
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A FOURTH AMENDMENT TO THE AGREEMENT
FOR CONSULTANT SERVICES WITH GHD INC., FOR THE GENERAL PLAN
CIRCULATION ELEMENT UPDATE (GPA 19-001)
JULY 14, 2020
PAGE 3
A comparison of traffic volumes before and after closure of at-grade intersections
on US 101; and,
Administrative Draft Transportation Impact Study Guidelines.
Additional work is in internal development and nearing administrative draft status,
including:
Application of available Travel Demand Models for forecasting;
Review of SLOCOG guidance for VMT and estimation of VMT using available
Travel Demand Models and LEHD data (Big Data); and,
Development of new capital improvements project list, integrating the LRSP and
SSAR.
Authorization of the proposed Amendment includes the creation of a new, modern
document template for updates of other General Plan elements, the development of an
interim VMT policy prior to Circulation Element adoption, and the development of impact
study guidelines that will preserve compelling City interests in maintaining efficient
circulation amidst the shift to VMT analysis under CEQA. Lastly, the transportation impact
fee analysis will be developed with consideration of the fact that CEQA mitigation will no
longer result in the construction of capacity improvements on local roadways and
intersections.
The previous Circulation Element Update schedule included in GHD’s original scope of
work was established with the Statewide implementation of SB 743 as the driving force
for completion (July 1, 2020). GHD’s new proposal will extend the schedule, at City staff’s
recommendation, to allow GHD and the City to adequately consider all of the factors
mentioned above, host interactive public workshops, and prepare a defensible CEQA
document under required review periods. However, with the July 1, 2020 VMT
implementation date, GHD’s proposal includes development of an interim SB 743 policy
that establishes a VMT baseline for the City and CEQA thresholds of significance. Staff
has reviewed the proposed scope of work that includes an approximate 9-week timeframe
once work commences. Approval of the amendment will allow GHD, the City’s current
on-call traffic consultant, to incorporate all previous applicable studies and complete the
Circulation Element Update as well as update the City’s guidelines for the preparation of
project related traffic studies. Finally, Transportation Impact Fee Analysis preparation will
allow the City to proceed with an update to transportation related development impact
fees.
The prior scope of work was estimated to cost $90,600. The new proposed scope of work
would bring the total cost of the Circulation Element Update, the Transportation Impact
Analysis Guidelines, and the Transportation Impact Fee Analysis to $160,650. The
Community Development Department’s Fiscal Year 2020/21 Budget included funds for
consultant services to cover this amendment.
Item 8.i. - Page 3
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A FOURTH AMENDMENT TO THE AGREEMENT
FOR CONSULTANT SERVICES WITH GHD INC., FOR THE GENERAL PLAN
CIRCULATION ELEMENT UPDATE (GPA 19-001)
JULY 14, 2020
PAGE 4
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve the Fourth Amendment to the Agreement for Consultant Services with
GHG Inc.;
2. Modify and approve Fourth Amendment to the Agreement for Consultant Services
with GHG Inc.; or
3. Do not approve Fourth Amendment to the Agreement for Consultant Services and
provide direction to staff.
ADVANTAGES:
Amending the Agreement with GHD Inc. will allow the City to complete the Circulation
Element Update, Transportation Impact Analysis Guidelines, Transportation Impact Fee
Update, and required environmental review, and to prepare interim VMT Guidelines that
will comply with the SB 743, all in an expedited manner by use of previous work completed
and through the City’s existing on-call engineering traffic consultant.
DISADVANTAGES:
Amending the Agreement with GHD Inc. would not allow a separate competitive proposal
process; however, GHD has been previously competitively qualified, they are uniquely
qualified to complete the remaining analysis efficiently as they have been the City’s
primary on-call traffic consultant, and their agreement is valid until February 2021.
ENVIRONMENTAL REVIEW:
This contract amendment does not require environmental review.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 8.i. - Page 4
FOURTH AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES
This Fourth Amendment ("Fourth Amendment") to Agreement for Consultant Services
(“Agreement”) by and between the CITY OF ARROYO GRANDE and GHD, INC.
(“Consultant”) is made and entered into this 14th day of July, 2020.
WHEREAS, the parties entered into an Agreement dated March 1, 2015, for On-Call
Consultant Services; and
WHEREAS, the parties entered into a First Amendment to the Agreement dated February
27, 2018, to extend the term of the agreement to February 29, 2020, and to change the
name of the company from OMNI Means LTD to GHD Inc.; and
WHEREAS, the parties entered into a Second Amendment to the Agreement dated May
14, 2019, to add the General Plan Circulation Element Update to GHD’s Scope of
Services; and
WHEREAS, the parties entered into a Third Amendment to the Agreement dated March
1, 2020 to extend the term of the Agreement to February 28, 2021, for the Circulation
Element Update Scope of Services; and
WHEREAS, the parties desire to further modify the Agreement as set forth herein.
NOW THEREFORE, for valuable consideration the receipt and sufficiency of which is
acknowledged, the parties agree as follows:
1. The Agreement, as amended, shall be further amended to include the additional
services at the cost specified in Exhibit “A” attached hereto and incorporated herein
by this reference. The total cost of the services provided under the Third
Amendment to Agreement for Consultant Services and this Fourth Amendment to
Agreement for Consultant Services shall be no more than $70,050.00.
2. Except as modified herein, all other terms and conditions set forth in the
Agreement, as amended, shall remain unchanged.
Item 8.i. - Page 5
IN WITNESS WHEREOF, CITY and CONSULTANT have executed this Fourth
Amendment the day and year first above written.
CITY OF ARROYO GRANDE:
By:
CAREN RAY RUSSOM, MAYOR
GHD, INC.:
By:______________________________
DOUGLAS J. RIES, PRINCIPAL
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO FORM:
TIMOTHY J. CARMEL,
CITY ATTORNEY
Item 8.i. - Page 6
GHD
943 Reserve Drive Roseville California 95678 United States
T +1 916 782 8688 F +1 916 782 8689 W www.ghd.com
March 13, 2020 Reference No.11144936 / 2101
Ms. Whitney Mc Donald
Community Development Department
City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93421
Re: Circulation Element Update and Associated Transportation Planning Documents
Dear Whitney:
This Proposal reflects GHD’s understanding of the direction received and discussions that occurred during
our meeting on Friday, February 21, 2020. At this meeting, we discussed the status of ongoing work and
identified next steps needed to prepare the City for SB 743 by establishing a VMT policy framework and to
complete updates to the City’s Circulation Element, Nexus Study and Transportation Impact Fee (TIF),
multimodal Transportation Impact Study Guidelines (TISG), and associated CEQA documents.
We thank you for what we felt was a very productive meeting with you and Robin. We hope it was equally
productive for you in terms of getting up to speed as the City’s new Community Development Director.
GHD is committed to continuing to serve the City of Arroyo Grande as a trusted consultant, advisor, and
partner. This Proposal letter specifically responds to your request to prepare an interim VMT policy for City
adoption, enhance the delivery of the other Circulation Element and associated planning documents,
expand the public engagement process, and presents a schedule that ensures quality deliverables and a
feasible CEQA timeline.
Background
As shared at our meeting, GHD, formerly Omni-Means, has been providing transportation planning and
engineering services to the City since 1989. Over the years, we have conducted numerous transportation
studies and GHD maintains an exhaustive archive of prior studies. If you are searching for any information
on past circulation issues or documents, please do not hesitate to reach out to us.
This ongoing Circulation Element Update process is an effort to finalize many past studies that have
reached draft stages over many years. The first Existing Conditions Background Report was prepared in
2012. Since that time, subsequent draft studies were prepared, including a transportation model update
working paper, a draft Circulation Element Update, draft Transportation Impact Study Guidelines, and a
draft Transportation Impact Fee Update. These documents have now been largely superseded in their
entirety by refreshed work products.
Current Contract Status
This current contract was originally envisioned to streamline the finalization of these documents. What
was envisioned as simple refreshes to past documents has evolved along with best practices, industry
standards, and legislative and policy requirements (SB 743). Changes to City staff, and to some extent
GHD staff, over the course of our contract have also changed the desired direction of some work scope
components. GHD is confident that the change in work scope components will result in superior products.
GHD has made significant progress on the current contract, including completing the following documents
and administrative draft documents that are currently in internal review by City staff:
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P8278PRL002.docx 2
Updated Draft Existing Conditions Background Report, with all new traffic counts;
Policy Audit Matrix, comparing existing CE policies with proposed changes;
A comparison of traffic volumes before and after closure of at-grade intersections on US 101; and,
Administrative Draft Transportation Impact Study Guidelines.
Additional work is in internal development and nearing administrative draft status, including:
Application of available Travel Demand Models for forecasting;
Review of SLOCOG guidance for VMT and estimation of VMT using available Travel Demand
Models and LEHD data (Big Data); and,
Development of new capital improvements project list, integrating the LRSP and SSAR.
Our record of progress is also documented in our Short Term Action Lists, which serve as both agenda
and minutes for our twice-monthly check-in meetings. Check-in meetings were not originally anticipated in
the original contract. These meetings, while somewhat effort intensive, have been invaluable, particularly
with changes in City staff and changes to expectations regarding VMT policy. Check-in meetings have
ensured clear communication on progress, expectations, and deliverables. Continuing these meetings is
highly encouraged to ensure progress and responsibility are discussed and reviewed on an ongoing and
regularly basis moving forward.
The current contract budget for the Circulation Element Update is approximately 61% expended, with
about $35,000 remaining. Until recently, it was not clear what level of CEQA document would be required
to process the City’s Circulation Element. Sufficient budget remains in the current contract to complete the
CEQA document, being prepared by a subconsultant, at a Mitigated Negative Declaration (MND) level.
The remaining budget is not, however, sufficient to cover unanticipated changes to expended work effort,
lost time and effort resulting from changes in City staff, and changes to desired deliverables and work
scope to close out this critical City planning process.
Next Steps
As both the City and GHD have correctly and independently diagnosed, insufficient budget remains to
complete remaining tasks to the City’s satisfaction. GHD is confident that the proposed Scope of Work,
Budget, and Schedule below remains an excellent value proposition to the City. We are confident that this
Proposal will complete these documents in a way that will serve the City for years to come.
Our Proposal includes the creation of a new, modern document template for updates of other General
Plan elements, the development of an interim VMT policy prior to Circulation Element adoption, and the
development of impact study guidelines that will preserve compelling City interests in maintaining efficient
circulation amidst the shift to VMT analysis under CEQA. Lastly, the transportation impact fee will be
developed with consideration of the fact that CEQA mitigation will no longer result in the construction of
capacity improvements on local roadways and intersections.
The previous schedule was originally established with the Statewide implementation of SB 743 as the
driving force for completion (July 1, 2020). Extending our schedule allows GHD and the City to adequately
consider all of the factors mentioned above, host interactive public workshops, and prepare a defensible
CEQA document under required review periods. However, with the upcoming July 1, 2020 VMT deadline,
GHD proposes to complete an interim SB 743 policy that establishes a VMT baseline for the City and
CEQA thresholds of significance.
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Scope of Work
The following Scope of Work is proposed to be completed in the general order presented below, following
a logical sequence of mutually-dependent efforts.
Task 1 – Interim VMT Policy – Recognizing that the update to the Circulation Element will extend beyond
July 1, 2020, the legislated deadline for Cities to adopt a VMT policy for CEQA impact evaluation, this task
will develop an interim VMT policy and assist the City in processing it through City Council approval. This
task includes preparation and attendance at two (2) meetings.
Task 1 Deliverables
Interim VMT Policy (including VMT Baseline, Thresholds, and Guidance by Project Type)
Assist City staff in processing policy approval including preparation and attendance two public
meetings.
Task 2 – Prepare Circulation Element Document Template – A graphically rich document template will
be developed by GHD for City use, including for the Circulation Element itself, associated planning
documents, and future City planning documents. The document template will include formatting
guidelines, including font selection and color schemes. Two drafts will be circulated to the City for
comment prior to finalization.
Task 2 Deliverables
Two Draft Document Templates and Style Guides.
Finalize Document Template and Style Guide
Task 3 – Complete Update to Transportation Impact Study Guidelines – A revised draft of the
Transportation Impact Study Guidelines has been prepared to reflect current standard industry, except for
specific guidance on VMT analysis, which will be based initially on Task A-1’s interim policy. Once VMT
guidance, multimodal performance measures, and LOS study requirements have been finalized with City
staff, the draft guidelines can be completed for public review.
Task 3 Deliverables
Finalize VMT impact assessment guidance.
Obtain City approval of all TISG methodologies and requirements
Finalize Transportation Impact Study Guidelines
Task 4 – Update Travel Forecasts and Revise and Update Circulation Element and Map – Based on
the concurrence on the proposed policy updates included in the Policy Matrix, the current administrative
draft of the Circulation Element will be further revised and updated. Additionally, using the recently
updated SLOCOG regional model, travel forecasts for the City of Arroyo Grande/South County area will
be utilized to help identify a Circulation Map for future planned circulation improvements within the City.
Task 4 Deliverables
Travel forecasts within the City of Arroyo Grande from the SLOCOG model
Revised and Updated Draft Circulation Element
Revised and Update Draft Circulation Map
Task 5 – Revise and Update Transportation Impact Fee – Based on the updated Circulation Map
determined in Task 4, the past draft Transportation Impact Fee (TIF), dated May 10, 2016, will be updated
with a revised Transportation Capital Improvement Program (TCIP) that will contain new and refreshed
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cost estimates. Additionally, with further input from the City, anticipated 20-year development levels will be
used from which transportation impact fees, by land use type, will be proposed.
Task 5 Deliverables
Revised TCIP with new and refreshed cost estimates
Updated TIF based on the updated TCIP and City projected 20-year development levels.
Task 6 – Public Workshops and Public Meetings– Recognizing the importance of overall circulation
planning within the City of Arroyo Grande, prior to completion of the above circulation documents, input
from the community is highly desired. Two public workshops are proposed to share existing condition
findings, receive initial community concerns, share initial circulation alternatives and receive input on
potential policy recommendations. With community input at those key critical stages in our process, we
will have an understanding as to the potential effectiveness of proposed recommendations to meet
identified community needs.
Following the selection and completion of the environmental document, GHD will assist the City in the
preparation and attendance at two public meetings, one before the Planning Commission and a second ,
before City Council.
Task 6 Deliverables
Preparation and Attendance at Two (2) Public Workshops
Environmental Document coordination.
Planning Commission and City Council hearings (2 total)
Schedule and Budget
Consistent with our preceding meeting, GHD proposes to deliver the interim VMT policy to the City in May
2020 to ensure adequate time for discussion with City staff and decision makers in advance of adoption.
GHD will also be working, under separate contract, with SLOCOG to host an information SB 743 / VMT
workshop that all member agencies will be invited to attend. This meeting, scheduled in early June, will
provide opportunity to refine and review the proposed interim policy with other agency approaches.
Also consistent with our preceding meeting, GHD proposes to have the Circulation Element, all associated
planning documents, and the associated CEQ document, completed in early December 2020. A detailed
project schedule will be established in coordination with City staff and the environmental subconsultant.
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P8278PRL002.docx 5 Item 8.i. - Page 11Task 1 Interim VMT Polley 1.1 Interim VMT Policy 4 12 16 4 36 s 6,000 1.2 Approval Processing Interim Policy, incluidng 2 public meetings 8 12 20 s 3,760 Task 2 Prepare Circularion Elem,ent Document Tempfate 2.1 Two Draft Document Templates and Style Guides 4 24 8 36 s 5,500 2.2 Finalize Document Template and Style Guide 2 12 8 22 s 3,330 Task 3 Complete Update to Tran.sportarion Impact Study Guidelines 3.1 Finalize VMT impact assessment guidance 2 4 16 8 30 s 4,690 3.2 Obtain City staff approval or all TISG methodologies and requirements 2 4 8 14 s 2,330 3.3 Finalize Transportation Impact Study Guidelines 2 4 4 10 s 1,730 Task 4 Update Travel Forecasts and Revise/Update Clrcularion Element and Map 4.1 Trav-el forecasts within the City of Arroyo Grande from the SLOCOG model 4 16 8 28 s 4,300 4.2 Revised and Updated Draft Circulation Element 2 8 12 4 2 28 s 4,790 4.3 Revised and Updated Circulation Map 2 2 4 8 2 16 34 s 5,370 Task 5 Revise and Update Transportation Impact Fee 5.1 Revised TCIP with new and refreshed cost estimates 2 4 4 32 42 s 6,370 5.2 Updated TIF based on the updated TCIP and City projected 20-year growth 4 4 20 2 12 42 s 6,740 Task 6 Public Worl<shops, Environmental Coordinarion and Public Meerings 6.1 Preparation and Attendance al 2 Public Workshops 8 8 12 12 12 52 s 8,340 6.2 Environmental Document Coordination -(SWCA afready under contract, no additional 4 4 2 10 s 2,000 budget added) 6.3 Planning Commission and City Council hearings (2 total) 8 8 12 28 s 4,800 Total Hours 58 74 76 108 8 108 0 0 g ~ 8 0 N ~ .., :g u, .., .... ~ u, ... 0 0 t ... <Ii ,.; ~ 0 ... ... ... ... .... ... ... ... ... ... ... ...
P8278PRL002.docx 6
Thank you for your consideration and please feel free to contact me with any questions, comments, or
concerns regarding the above Proposal.
Sincerely,
Todd Tregenza, AICP
_______________
Associate
TBT/C1584LTR001.docx
cc: Robin Dickerson, City of Arroyo Grande
Jake Hudson, GHD
Item 8.i. - Page 12