PURPOSE:

This report requests City Council approval of an amendment to a Professional Services Agreement (PSA) with Kimley-Horn and Associates (KHA) for tasks related to the traffic impact analysis for the proposed restaurant development on the A-1 North property located at 2555 N. Hollywood Way at the intersection with Empire Avenue.

BACKGROUND:

Zelman Development submitted applications to the City of Burbank in 2003 for a tentative parcel map, conditional use permits, and development review for a proposed restaurant, service station, and office development on the A-1 North property.  The development was proposed for the currently vacant portions of the property not being used as the Star Park parking lot.

Because of previous work completed for the City and knowledge of the project area, KHA was selected to conduct the traffic impact analysis for the proposed project.  A PSA was executed with KHA in the amount of $49,115 (Exhibit A).  As the traffic study progressed, the proposed project was revised several times by the applicant.  Due to these revisions and additional traffic study work that was identified, the number of required tasks related to the traffic study increased.  The PSA was amended and increased by $22,050 to cover the cost of the additional services, for a total contract of $71,165 (Exhibit B).

As a result of the Burbank-Glendale-Pasadena Airport Authority�s proposal to purchase about 27 acres of the 31-acre A-1 North property and use the property for parking, the proposed project has again been revised.  The currently proposed project would occur on about four acres of vacant land along the Hollywood Way frontage of the property.  The proposed project is separate and independent from the Airport Authority�s proposal.  The Authority�s proposed parking facility and Zelman�s proposed restaurants require different entitlements and are on separate schedules.  Although the two projects are being studied in separate environmental documents, each of the environmental documents acknowledges the other project.  The California Environmental Quality Act (CEQA) requires that environmental documents consider the potential cumulative impacts of the project being studied and other projects occurring nearby.  KHA�s traffic study and the related environmental document would satisfy this requirement by acknowledging and considering the Authority�s project and other proposed or in-progress projects in the vicinity.

Zelman�s proposed project now includes three drive-through restaurants (McDonald�s, Del Taco, and Panda Express), one restaurant with no drive-through (Denny�s), and a multi-tenant �strip mall� restaurant building for smaller restaurant tenants.[1]   The service station and office park that were part of the original project proposal are no longer part of the project.

Because of these most recent project revisions, additional work is now required to revise the previous traffic analysis.  KHA has identified the additional tasks that would be required to complete the revised traffic study.  The cost for these tasks is $5,950, which would bring the total contract amount to $77,115 (Exhibit C).  Per City policy, the maximum PSA amount that may be approved by the City Manager is $75,000.  All PSAs over $75,000 are subject to approval by the City Council.

ANALYSIS:

KHA�s fees for completing this traffic study are competitive.  KHA has experience working with the City in the preparation of traffic studies and other traffic engineering work.  KHA has been involved with the A-1 North project since the start of the environmental analysis and has already performed a substantial amount of work on this project.  Staff has been satisfied with KHA�s work and believes that it is appropriate to amend the contract to allow KHA staff to finish the traffic analysis for the revised project.

FISCAL IMPACT:

Per the City of Burbank Fee Resolution, the project applicant is required to deposit with the City the amount of the contract plus a ten percent administrative fee.  The project applicant previously deposited with the City the amount of the original contract and first amendment, and will be required to deposit the amount of the second amendment.  This deposit must be made prior to the execution of the PSA and payment of any fees to KHA.  As such, execution of the PSA would have no fiscal impact on the City.  Once the applicant deposits funds with the City, sufficient funds will be available to cover the amended PSA.

RECOMMENDATION:

Staff recommends that the City Council authorize the second amendment to the Professional Services Agreement with Kimley-Horn and Associates to conduct additional traffic impact analysis work for Zelman Development�s proposed project on the A-1 North property.

LIST OF EXHIBITS:

Exhibit A          Original Professional Services Agreement

Exhibit B          First Amendment to Professional Services Agreement

Exhibit C          Proposed Second Amendment to Professional Services Agreement

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