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7.1.D. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> April 7, 2014 <br /> SUBJECT <br /> Amendment Number 1 to the Professional Services Agreement with Fugro Consultants, <br /> Inc. for Environmental Consulting Services for 1306 Main Street <br /> RECOMMENDATION <br /> By motion, approve and authorize the City Manager to execute Amendment Number 1 <br /> to Professional Services Agreement for Environmental Consulting Services for 1306 <br /> Main Street in the amount of $27,400 for a total agreement amount of $70,400 <br /> BACKGROUND <br /> On September 20, 2012 the City Manager executed an agreement with Fugro <br /> Consultants, Inc. (Fugro) to conduct environmental consulting services for the 1306 <br /> Main Street housing acquisition and rehabilitation project. The City acquired the Main <br /> Street Apartments in July of 2009 to meet the City's Consolidated Plan goal of <br /> expanding and improving the supply of affordable housing. The City has been in the <br /> process of completing phased building and site improvements with funds budgeted from <br /> its federal Community Development Block Grant (CDBG) and Home Investment <br /> Partnership Program (HOME). After the completion of the additional environmental <br /> testing and potential mitigation the building will be transferred (sold) with long term <br /> affordable deed restrictions. The original agreement included soil and underground <br /> water testing and analysis in the amount of $43,000. <br /> ANALYSIS <br /> Based upon the results of the soil, groundwater, sub slab and indoor air quality tests, <br /> staff and the consultants determined that additional environmental services are <br /> necessary to complete the Phase II Environmental Site Assessment. This cost of <br /> additional scope of work is $27,400, bringing the total contract amount to $70,400. The <br /> amendment will cover costs for work necessary to complete additional environmental <br /> testing and evaluation of the indoor air quality of the apartments, recommendations for <br /> mitigation and related coordination with regulatory agencies. <br /> ALTERNATIVES <br /> Do not authorize execution of Amendment Number 1 to the Fugro agreement; however <br /> the U.S. Department of Housing and Development (HUD) require the Phase II report for <br /> this project due to the investment of federal funds. <br />