REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHILIP SKEI, Assistant Director Planning and Development Department BY: KENG LEE, Project Manager Housing Production Division SUBJECT ..Title Actions pertaining to Professional Consultant Services for National Environmental Policy Act (NEPA) Assessment and Compliance Documents (Bid File 12502412): 1. Approve the Consultant Services Agreement with SWCA, Inc. dba SWCA Environmental Consultants, in the amount not to exceed $500,000, to provide environmental consulting services for the Community Development Division, U.S. Department of Housing and Urban Development funded projects, programs, and activities through June 30, 2030. ..Body RECOMMENDATION Staff recommends the City Council approve the Consultant Services Agreement with SWCA Environmental Consultants (SWCA) for environmental services and compliance documents as it relates to NEPA through June 30, 2030, for the Community Development Division, U.S. Department of Housing and Urban Development (HUD) funded projects, and related programs and activities. EXECUTIVE SUMMARY The City is required to complete an environmental review for all federal funded projects received from HUD. To stay in compliance and ensure the timely completion of environmental assessments, the City released a Request for Proposals (RFP) for environmental services on May 9, 2025. A total of eight responses were received, reviewed, and scored by an evaluation committee based on the criteria included in the RFP. Based on the evaluation scores and pricing consideration, SWCA is recommended for award of the Consultant Services Agreement for an amount not to exceed $500,000, with payment based solely on actual work performed, with a term through June 30, 2030. BACKGROUND As a recipient of funds from HUD, the Community Development Division is required to perform environmental assessments on all federally funded projects in compliance with NEPA rules and regulations. The projects include, but are not limited to, site development projects, infrastructure improvements, demolitions, street vacations, hotel/motel acquisitions, affordable housing developments, and home rehabilitations. To stay in compliance with federal regulations and support the continued development projects in the community, staff released a Request for Proposals (RFP) seeking Professional Consultant Services for NEPA Assessment and Compliance Documents on May 9, 2025. Responses to the RFP were received from the following consultants: * Dudek * E2 Consulting Engineers * Impact Sciences * Oneida Environmental * Raney Planning & Management, Inc. * Soar Environmental Consulting * SWCA Environmental Consultants * UltraSystems Environmental, Inc. A committee consisting of staff with relevant environmental experience reviewed and scored the proposals based on the criteria included in the RFP. SWCA received the highest average score overall as its response demonstrated a clear understanding of NEPA policies and regulations; familiarity with federal, state, and local rules and agencies; and directly aligned with the request. Staff conducted an interview with SWCA to discuss the proposal and negotiate the fee schedule for the duration of the contract. Based on SWCA receiving the highest score by the evaluation committee and its competitive price, staff found its proposal to be the most advantageous for the City. Staff recommends awarding the Consultant Services Agreement to SWCA, for an amount not to exceed $500,000, with payment based solely on actual work performed. The term of the agreement extends through June 30, 2030. This agreement will ensure compliance with all federal environmental regulations, prevent delays in project execution, and safeguard the City's eligibility for and continued access to federal funds. ENVIRONMENTAL FINDINGS The award of a Consultant Services Agreement for environmental review services is not a Project for the purposes of the California Environmental Quality Act (CEQA). Additionally, the environmental consultant services agreement is an exempt activity under Federal Regulations, 24 CFR Part 58.34: Environmental and Other Studies. LOCAL PREFERENCE Local preference was not implemented based on the conditions of federal funding. FISCAL IMPACT There is no impact on the City's General Fund as a result of this action. The agreement will be funded through federal entitlement funds. ATTACHMENTS Environmental Consultant Services Agreement - SWCA, Inc.