This report requests that City Council approve the Second Amendment to the Professional Services Agreement (PSA) with PCR to complete the remaining environmental review (EIR) for the project application submitted as Conditional Use Permit No. 2002-6, Sign Variance No. 2002-1, and Development Review No. 2002-12 for a proposed Home Depot store at 1200 S. Flower Street.

On October 23, 2000, Home Depot U.S.A., Inc. submitted an application for a conditional use permit and development review to construct a home improvement center on the former ITT property at 1200 S. Flower Street. The proposed project includes a 115,000 square foot Home Depot store with a 25,000 square foot outdoor garden center, 687 parking spaces in a surface parking lot, and a 95-foot tall pylon sign. The project site is also known to be contaminated with various toxic substances.

Staff reviewed the project application and determined that the hiring of a consultant was necessary to perform the required environmental review pursuant to the California Environmental Quality Act (CEQA). The applicant retained their own consultants, who are currently preparing a Health Risk Assessment and Remedial Action Plan to address soil contamination on the project site, and a traffic study to analyze potential traffic impacts resulting from the project. The consultant retained by the City of Burbank will review all environmental studies and documentation, and perform all environmental review required by CEQA.

On April 20, 2001, the Community Development Department circulated a Request for Proposals (RFP) to PCR Services Corporation, Environ, and Impact Sciences to prepare an environmental impact report for the proposed project. All three consulting firms submitted proposals by the April 30, 2001 deadline. Pursuant to City policy, staff from three City departments were assembled to review the proposals. Staff from the Community Development Department, Fire Department, and City Attorney�s office considered the strength of each proposal and the proposed scope of work in relation to the proposed fee structure. Based on this review, staff selected PCR Services Corporation as the consultant for this project.

The First Amendment to the PSA was executed on March 21, 2002 to extend the completion date from May 15, 2002 to May 15, 2003. The City routinely approves this type of request if an active PSA will expire before the project is complete.

On December 10, 2002, PCR submitted a revised scope of work addressing the tasks that will need to be completed prior to finishing the environmental impact report. In addition, a number of tasks related to soil contamination were identified that will require the oversight of other consultants. Separate contracts were requested with Dr. Susan Mearns, Environ, and Komex to enable them to work with PCR to address soil related concerns. Individual PSAs will be prepared for each sub-consultant and submitted to the Director of Community Development and the City Manager for the appropriate approvals. This report specifically addresses the first amendment to the PSA with PCR.

This report requests that City Council approve the Second Amendment to the PSA with PCR Services Corporation to complete the environmental review for the proposed Home Depot project.

PCR has worked for approximately one year with the City and Dr. Mearns to assist the Home Depot team in preparing a Health Risk Assessment (HRA) for the proposed project. A great deal of time was spent working with various state agencies in the review process for the HRA. PCR has been involved in the process from the beginning, and neither the City nor the applicant would benefit from either changing consultants or not completing the environmental review at this time.

The pros and cons of retaining PCR are as follows:

Pros

• PCR has worked with the City and the applicant to completed a large portion of the EIR, and amending the PSA will provide PCR the necessary funds to complete the environmental review for this project.
• PCR has also worked with our sub-consultants, Dr. Mearns, Environ, and Komex, on other projects, and has established a relationship with each of these consultants.

Cons

• None

The City will incur no costs by amending the existing PSA with PCR. The original contract was for $147,415, and the cost of PCR�s amended scope of work will be an additional $128,436.74. The City of Burbank�s Fee Resolution requires that applicants pay the full cost of the consultant fee plus an administrative fee. The administrative fee is necessary in many instances to pay for any outside legal consul needed for oversight to process the environmental documentation. In this particular case, the City has acquired the assistance of Margaret Sohagi from Fox and Sohagi to review all of the environmental documents and application proceedings. For that reason, an administrative fee of 20% ($25,687.35) will be added to the additional cost to amend the contract with PCR for a total additional cost of ($128,436.74 + $25,687.35) $154,124.09. The applicant has agreed with the cost required to amend the contract, and will be required to deposit this full amount with the City before the PSA is executed.

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