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<br />Although Amendment No. 2 will terminate on June 30, 2018, downtown construction <br />activities continue, and overall coordination efforts will still benefit from a dedicated point <br />of contact. Examples of projects currently or anticipated to be under construction in the <br />downtown area during the proposed amendment include the projects located at 2075 <br />Broadway and 851 Main Street, Kaiser Medical Office Building 2, the County of San <br />Mateo’s County Office Building 3, and tenant move-ins at recently completed projects. <br />Staff recognizes the value of the service provided under the agreement and negotiated <br />an amendment so that services can continue through December 31, 2019. <br /> <br />The level of effort anticipated in Amendment No. 3 is lower than the prior Amendments <br />No. 1 and 2, and has been reduced from 10 hours per week to approximately 8 hours <br />per week for a term of eighteen months. The hourly rate has been increased by <br />approximately 3 percent. <br /> <br />ALTERNATIVES <br />Council may choose not to approve Amendment No. 3 with Kitchell/CEM, Inc. and direct <br />staff to modify the terms or allow services to conclude once Amendment No. 2 expires. <br /> <br />FISCAL IMPACT <br />Previously, Amendment No. 1 increased the original agreement amount by $107,250, <br />from $60,000 to $167,250. Subsequently, Amendment No. 2 increased the agreement <br />amount by $113,750, from $167,250 to $281,000. Approximately 85 percent of costs <br />under Amendments No. 1 and No. 2 were paid for by private development projects. <br /> <br />Amendment No. 3 would increase the agreement by $112,500, from $281,000 to <br />$393,500. Approximately 90 percent of costs under Amendment No. 3 are anticipated <br />to be paid for by private development projects. As a result, the increase in costs to the <br />City would be approximately $11,250. As of June 15, 2018, there was $86,216 of <br />available budget in this program. <br /> <br />ENVIRONMENTAL REVIEW <br />The activity is not a project under CEQA as defined in CEQA Guidelines, Section <br />15378, because it has no potential for resulting in either a direct or foreseeable physical <br />change in the environment. <br /> <br /> <br /> <br />6.1.B. - Page 2