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CONTRACT 6359 Professional Services AgreementAgreement No. 6359 AGREEMENT NO. 6359 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND ENVIRONMENTAL SCIENCE ASSOCIATES FOR ENVIRONMENTAL CONSULTANT SERVICES THIS AGREEMENT is entered into this 16th day of May 2022, by and between the CITY OF EL SEGUNDO, a municipal corporation organized under the laws of the state of California ("CITY") and ENVIRONMENTAL SCIENCE ASSOCIATES, a California Corporation ("CONSULTANT"). 1. CONSIDERATION. A. As partial consideration, CONSULTANT agrees to perform the work listed in Section 2, below; B. As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement; C. As additional consideration, CITY agrees to pay CONSULTANT a sum not to exceed $3,900 for CONSULTANT's services. CITY may modify this amount as set forth below. Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in the attached Exhibit 'A" which is incorporated by reference. 2. SCOPE OF SERVICES. A. CONSULTANT will perform services listed in the attached Exhibit "A," which is incorporated by reference. B. CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the work and provide the professional services required of CONSULTANT by this Agreement. 3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT will use the appropriate generally accepted professional standards of practice existing at the time of performance utilized by persons engaged in providing similar services. CITY will continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of any deficiencies and CONSULTANT will have 15 days after such notification to cure any Page 1 of 12 Agreement No. 6359 City of El Segundo Agreement No. 6359 ENVIRONMENTAL SCIENCE ASSOCIATES Page 2 of 12 shortcomings to CITY's satisfaction. Costs associated with curing the deficiencies will be borne by CONSULTANT. 4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and hourly rates for each personnel category and reimbursable costs (all as set forth in Exhibit "A") the tasks performed, the percentage of the task completed during the billing period, the cumulative percentage completed for each task, the total cost of that work during the preceding billing month and a cumulative cash flow curve showing projected and actual expenditures versus time to date. 5. NON -APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for current services are within the current budget and within an available, unexhausted and unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient funds for payment of CONSULTANT services beyond the current fiscal year, this Agreement will cover only those costs incurred up to the conclusion of the current fiscal year. 6. ADDITIONAL WORK. A. CITY's General Manager ("Manager") may determine, at the Manager's sole discretion, that CONSULTANT must perform additional work ("Additional Work") to complete the Scope of Work. If Additional Work is needed, the Manager will give written authorization to CONSULTANT to perform such Additional Work. B. If CONSULTANT believes Additional Work is needed to complete the Scope of Work, CONSULTANT will provide the Manager with written notification that contains a specific description of the proposed Additional Work, reasons for such Additional Work, and a detailed proposal regarding cost. C. Payments over $46,100 for Additional Work must be approved by CITY's city council. All Additional Work will be subject to all other terms and provisions of this Agreement. 7. POLITICAL REFORM ACT. CONSULTANT agrees that it will be considered a public official subject to the Political Reform Act of 1974 for purposes of this Agreement. CONSULTANT agrees and warrants that it has no financial interests which may be materially affected by the project for which the Initial Study, as specified in the scope of services, is being prepared. Such financial interests may include, without limitation, interests in business entities, real property, or sources of income exceeding $500 received within the past year. CONSULTANT further warrants that, before executing this Agreement No. 6359 City of El Segundo Agreement No. 6359 ENVIRONMENTAL SCIENCE ASSOCIATES Page 3 of 12 Agreement, it reviewed the Political Reform Act of 1974 and the Fair Political Practices Commission regulations, including, without limitation, Chapter 7 of Title 2 of the California Code of Regulations, Section 18700, et seq., in order to determine whether any conflict of interest would require CONSULTANT to refrain from performing the professional services contemplated herein or in any way attempting to use its official position to influence the governmental decisions underlying the subject environmental clearances. 8. FAMILIARITY WITH WORK. A. By executing this Agreement, CONSULTANT agrees that it has: Carefully investigated and considered the scope of services to be performed; Carefully considered how the services should be performed; and i i. Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement. B. If services involve work upon any site, CONSULTANT agrees that CONSULTANT has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. Should CONSULTANT discover any latent or unknown conditions that may materially affect the performance of the services, CONSULTANT will immediately inform CITY of such fact and will not proceed except at CONSULTANT's own risk until written instructions are received from CITY. 9. TERM. The term of this Agreement will be from the final date of execution of this Agreement to 30 calendar days from the City's issuance of a written notice to proceed pursuant to Section 10(A)(ii). Unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances: A. Completion of the work specified in Exhibit "A"; B. Termination as stated in Section 17. 10. TIME FOR PERFORMANCE. A. CONSULTANT will not perform any work under this Agreement until: CONSULTANT furnishes proof of insurance as required under Section 24 of this Agreement; and Agreement No. 6359 City of Ell Segundo Agreement No. 6359 ENVIRONMENTAL SCIENCE ASSOCIATES Page 4 of 12 CITY gives CONSULTANT a written notice to proceed. B. Should CONSULTANT begin work on any phase in advance of receiving written authorization to proceed, any such professional services are at CONSULTANT's own risk. 11. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond CONSULTANT's control, CITY may grant a time extension for the completion of the contracted services. If delay occurs, CONSULTANT must notify the Manager within 48 hours, in writing, of the cause and the extent of the delay and how such delay interferes with the Agreement's schedule. The Manager will extend the completion time, when appropriate, for the completion of the contracted services. 12. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main body of this Agreement takes precedence over the attached Exhibits; this Agreement supersedes any conflicting provisions. Any inconsistency between the Exhibits will be resolved in the order in which the Exhibits appear below: CONSULTANT's May 13, 2022 proposal. 13. CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties. 14. TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a Taxpayer Identification Number. 15. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and maintain during the term of this Agreement, all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement. 16. WAIVER. CITY's review or acceptance of, or payment for, work product prepared by CONSULTANT under this Agreement will not be construed to operate as a waiver of any rights CITY may have under this Agreement or of any cause of action arising from CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character. 17. TERMINATION. Agreement No. 6359 City of El Segundo Agreement No. 6359 ENVIRONMENTAL SCIENCE ASSOCIATES Page 5 of 12 A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause. B. CONSULTANT may terminate this Agreement at any time with CITY's mutual consent. Notice will be in writing at least 30 days before the effective termination date. C. Upon receiving a termination notice, CONSULTANT will immediately cease performance under this Agreement unless otherwise provided in the termination notice. Except as otherwise provided in the termination notice, any additional work performed by CONSULTANT after receiving a termination notice will be performed at CONSULTANT" own cost; CITY will not be obligated to compensate CONSULTANT for such work. D, Should termination occur, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by CONSULTANT will, at CITY's option, become CITY's property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination, not to exceed the total costs under Section 1(C). E. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated. F. By executing this document, CONSULTANT waives any and all claims for damages that might otherwise arise from CITY's termination under this Section. 18. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by CONSULTANT under this Agreement are CITY's property. CONSULTANT may retain copies of said documents and materials as desired, but will deliver all original materials to CITY upon CITY's written notice. CITY agrees that use of CONSULTANT's completed work product, for purposes other than identified in this Agreement, or use of incomplete work product, is at CITY's own risk. 19. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service under this Agreement, no copies, sketches, or graphs of materials, including graphic art work, prepared pursuant to this Agreement, will be released by CONSULTANT to any other person or public agency without CITY's prior written approval. All press releases, including graphic display information to be published in newspapers or magazines, will be approved and distributed solely by CITY, unless otherwise provided by written agreement between the parties. 20. INDEMNIFICATION. Agreement No. 6359 City of El Segundo Agreement No. 6359 ENVIRONMENTAL SCIENCE ASSOCIATES Page 6 of 12 A. CONSULTANT agrees to the following - Indemnification for Professional Services. CONSULTANT will save harmless and indemnify and at CITY's request reimburse defense costs for CITY and all its officers, volunteers, employees and representatives from and against any and all suits, actions, or claims, of any character whatever, brought for, or on account of, any injuries or damages sustained by any person or property resulting or arising from any negligent or wrongful act, error or omission by CONSULTANT or any of CONSULTANT's officers, agents, employees, or representatives, in the performance of this Agreement, except for such loss or damage arising from CITY's sole negligence or willful misconduct. Indemnification for other Damages. CONSULTANT indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising out of this Agreement, or its performance, except for such loss or damage arising from CITY's sole negligence or willful misconduct. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONSULTANT will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify CITY for any judgment rendered against it or any sums paid out in settlement or otherwise. iii, Exclusion for CEQA Actions. Notwithstanding the foregoing, CONSULTANT need not indemnify, defend, or hold CITY harmless in CEQA actions initiated pursuant to Public Resources Code §§ 21167 and 21168 where CONSULTANT's work may form the basis of a lawsuit. However, should CONSULTANT's work, as contemplated by this Agreement, contain errors or omissions that results in an adverse ruling against CITY, CONSULTANT agrees to indemnify and hold CITY harmless to the extent provided for in Section 20(A)(i). B. For purposes of this section "CITY" includes CITY's officers, officials and employees. C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement. D. The requirements as to the types and limits of insurance coverage to be Agreement No. 6359 City of El Segundo Agreement No. 6359 ENVIRONMENTAL SCIENCE ASSOCIATES Page 7 of 12 maintained by CONSULTANT as required by Section 24, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification. 21. ASSIGNABILITY. This Agreement is for CONSULTANT's professional services. CONSULTANT's attempts to assign the benefits or burdens of this Agreement without CITY's written approval are prohibited and will be null and void. 22.INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which is it performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only. 23. AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with respect to all services and matters covered under this Agreement. CITY will have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities. CONSULTANT will retain such financial and program service records for at least three years after termination or final payment under this Agreement. 24. INSURANCE. A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONSULTANT will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: Type of Insurance Commercial general liability: Professional Liability Business automobile liability Workers compensation Limits $2,000,000 $1, 000,000 $1,000,000 Statutory requirement B. Commercial general liability insurance will meet or exceed the requirements of the most recent ISO-CGL Form. The amount of insurance set forth above Agreement No. 6359 City of El Segundo Agreement No. 6359 ENVIRONMENTAL SCIENCE ASSOCIATES Page 8 of 12 will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies will be endorsed to name CITY, its officials, and employees as "additional insureds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto. Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable or subject to reduction except upon 30 days prior written notice to CITY. C. Professional liability coverage will be on an "occurrence basis" if such coverage is available, or on a "claims made" basis if not available. When coverage is provided on a "claims made basis," CONSULTANT will continue to renew the insurance for a period of three years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT for all claims made by CITY arising out of any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect. D. Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 01 06 92, including symbol 1 (Any Auto). E. CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A:VII." F. Should CONSULTANT, for any reason, fail to obtain and maintain the insurance required by this Agreement, CITY may obtain such coverage at CONSULTANT's expense and deduct the cost of such insurance from payments due to CONSULTANT under this Agreement or terminate pursuant to Section 17. G. Self -Insured Retention/Deductibles. All policies required by this Agreement must allow CITY, as additional insured, to satisfy the self -insured retention ("SIR") and deductible of the policy in lieu of CONSULTANT (as the named insured) should CONSULTANT fail to pay the SIR or deductible requirements. The amount of the SI R or deductible is subject to the approval of the City Attorney and the Finance Director. CONSULTANT understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by CONSULTANT as primary insured to pay its SIR or deductible constitutes a material breach Agreement No. 6359 City of El Segundo Agreement No. 6359 ENVIRONMENTAL SCIENCE ASSOCIATES Page 9 of 12 of this Agreement. Should CITY pay the SIR or deductible on CITY's behalf upon the CONSULTANT'S failure or refusal to do so in order to secure defense and indemnification as an additional insured under the policy, CITY may include such amounts as damages in any action against CONSULTANT for breach of this Agreement in addition to any other damages incurred by CITY due to the breach. 25. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written approval to use any consultants while performing any portion of this Agreement. Such approval must approve of the proposed consultant and the terms of compensation. 26. INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the status on the project, which will include a schedule update and a short narrative description of progress during the past month for each major task, a description of the work remaining and a description of the work to be done before the next schedule update. 27. NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows: If to CONSULTANT: Attention: Mike Harden Environmental Science Associates 626 Wilshire Boulevard, Suite 1100 Los Angeles, California 90017 (949) 870-1510 mharden@esassoc.com If to CITY: Attention: Michael Allen City of El Segundo 350 Main Street El Segundo, California 90245 (310) 524-2345 mallen@elsegundo.org Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. 28. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, CITY's conflict of interest regulations. 29. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT's bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT' bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should Agreement No. 6359 City of El Segundo Agreement No. 6359 ENVIRONMENTAL SCIENCE ASSOCIATES Page 10 of 12 CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability. 30. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of CONSULTANT's or CITY's obligations under this Agreement. 31. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County. 32. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state, and local laws applicable to this Agreement. 33. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. There is one Attachments to this Agreement. This Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns. 34. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party. 35. SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect. 36. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. CITY's Manager, or designee, may execute any such amendment on behalf of CITY. 37. ELECTRONIC SIGNATURES. This Agreement may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one Agreement binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code § 16.5, the Parties agree that this Agreement, Agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed Agreement No. 6359 City of El Segundo Agreement No. 6359 ENVIRONMENTAL SCIENCE ASSOCIATES Page 11 of 12 when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature. 38. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement. 39. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this Agreement. 40. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood, debris flow, explosion, acts of terrorism, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties' reasonable control, then the Agreement will immediately terminate without obligation of either party to the other. 41. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY. [SIGNATURES BEGIN ON FOLLOWING PAGE] Agreement No. 6359 City of El Segundo Agreement No. 6359 ENVIRONMENTAL SCIENCE ASSOCIATES Page 12 of 12 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first hereinabove written. CITY OF EL SEGUNDO 116 4 j de, Michael Allen, Deer. Services Director ATTEST: Tracy Wearer, City Clerk APPROVED AS TO FORM: MARK D. HENSLEY, CITY ATTORNEY Joaquin Vazquez, Deputy City Attorney tf«i3Lit mCE APPROVAL: Hankâ–º, Risk P a na er ENVIRONMENTAL SCIENCE ASSOCIATES Ruta K. Thomas, Sr. Vice President Taxpayer ID No. 94-1698350 Exhibit A Agreement No. 6359 626 Wilshire Boulevard Suite 1100 Los Angeles, CA 90017 213.599.4300 phone 213.599.4301 f.-i May 13, 2022 Michael Allen, AICP, Development Services Director City of El Segundo 350 Main Street El Segundo, CA 90245 Subject: Proposal to Prepare a Notice of Exemption and Supporting Memorandum for the City of El Segundo Cannabis Ordinance Dear Michael: Environmental Science Associates (ESA) appreciates the opportunity to submit this letter proposal to prepare environmental documentation forthe City of El Segundo (City) Draft Cannabis Ordinance (the Ordinance orthe Project). The document, which we assume will be Notice of Exemption (NOE) with a supporting memorandum that will document the reasons the Project is exempt from environmental review under the California Environmental Quality Act (CEQA). Included in this proposal is a summary of the Project as we understand it, a scope of work to complete the CEQA exemption process and documentation for the Project, our anticipated schedule, and an estimate of fees and direct costs for completion of our services. Project Understanding The El Segundo Municipal Code currently expressly prohibits all commercial cannabis activity within the City. The City is proposing the Project in order to amend the current Chapter 14 of Title 4 to authorize permitted commercial cannabis activity within the City. The Project would regulate the location of cannabis businesses that would be permitted by right in specified zoning districts. The Ordinance would restrict cannabis retailers to Smoky Hollow West (SH-W) and Industrial, including Light Industry (M-1) and Heavy Industry Zones (M-2). The Project includes additional restrictions such as providing required minimum distances from schools, day care centers, and youth centers, prohibiting these uses from being location on the frontage of an arterial and a minimum 5,000 square feet of floor area. Given the Project would not alter the existing densities or the development assumptions of the existing zoning designations where cannabis retailers would be considered a permitted use, the Project would not result in any environmental impacts and is exempt from CEQA. In addition, while the Project would amend the Zoning Code to include these land uses as permitted by right, the Project does not approve any future development projects. The Project would be exempt from CEQA under the Common Sense Exemption (Section 15061 [b][3]), and is subject to the Special Situations for Projects Consistent with Zoning (Section 15183). Future development of cannabis uses within permitted zoning districts may also be exempt under CEQA per Section 15332 (Class 32, Infill Development Projects) as these permitted districts are largely developed; however all permit applications and future developments will be subject to project -specific review for CEQA compliance. Scope of Work Based on our understanding of the Project and review of other similar efforts in the State, ESA anticipates that a NOE with a supporting memorandum will be adequate to provide the documentation to substantiate Agreement No. 6359 Exhibit A Mr. Michael Allen May 13, 2022 Page 2 the CEQA exemption for the Project. ESA will review the Draft Ordinance and will prepare a draft Project Description that will be used in the Draft Notice of Exemption (NOE) form and a supporting memorandum. The NOE will follow the template provided by the State Clearinghouse, which includes a project description, list of applicable exemptions, and a description of why the Project is exempt. The discussion for the reasons why the Project is exempt will reference an attached supporting memorandum. The memorandum will describe the applicable Sections of the State CEQA Guidelines and explain why the Project is exempt. The memorandum will also discuss the reasons why the Project is not subject to any exceptions to the exemptions. The memorandum will explicitly state why policy actions such as the Project would not result in physical development or changes to the existing development assumptions for the City. The memorandum will also discuss how all future discretionary projects that would implement cannabis uses would be subject to project -level review under CEQA. This scope assumes ESA will prepare one draft NOE and memorandum for the City's review and will respond to one set of comments. ESA will prepare a Final NOE and memorandum for the City's use at the City Council's June 2022 hearing and for City's use in preparingtheir staff report. ESA will provide both the draft and final versions electronically. The City, with the assistance of ESA, as needed, will file the NOE with the County Clerk after approval of the Project. Schedule Given the short time and limited scope of work, ESA does not anticipate attendance at any coordination meetings orthe City Council hearing. ESA understands the need to complete these deliverables prior to the Une hearing date and will provide the Draft NOE and memorandum within 1-2 weeks of the City's Notice to Proceed. The Final NOE and memorandum will be prepared within one week of receipt of the City's comments on the Draft. Proposed Fee Based on our understanding of the Project and the Scope of Work, our estimated fee to prepare the deliverables described above is $3,900. We appreciate the opportunity to submit this proposal. The terms of this proposal remain valid for sixty (60) days and are subject to change after that time. Should you have any questions or require additional information please feel free to contact us at (949) 870-1510. Thank you for considering ESA. Sincerely, Mike Harden, Senior Managing Associate