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THE OF 19 F N CITY COUNCIL AGENDA REPORT PL'E ASANTO® July 20, 2010 Operations Services Department TITLE: APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH ENVIRONMENTAL SCIENCE ASSOCIATES (ESA) TO PREPARE THE CITY'S CLIMATE ACTION PLAN AND ASSOCIATED ENVIRONMENTAL IMPACT REPORT SUMMARY In 2006, Governor Schwarzenegger signed into law State Assembly Bill 32: Global Warming Solutions Act (AB32) requiring significant reductions in the State's greenhouse gas emissions. As part of the overall strategy for meeting AB32 requirements, staff is recommending the preparation of a comprehensive Climate Action Plan (CAP). Because the City will be undertaking a Housing Element Update during the same time frame, ESA's scope of work includes preparing environmental work for the Housing Element update as well as the CAP. In accordance with the Tentative Agreement/ Settlement Term Sheet with Urban Habitat et al, the City is agreeing to complete the CAP by February 17, 2012 and to submit the Housing Element to the State Department of Housing and Community Development no later than August 16, 2011. RECOMMENDATION 1. Authorize the City Manager to execute a Professional Services Agreement with Environmental Science Associates (ESA) in the amount of 298,448 to complete a Climate Action Plan, and an Environmental Impact Report for the CAP and the Housing Element Update. 2, Approve a project contingency of $25,000 to address additional costs that may develop during the project. FINANCIAL STATEMENT Total cost for the CAP portion of the project is $216,968. Of this amount, $165,000 will be funded by federal Energy Efficiency and Conservation Block Grant and $51,968 including the $25.000 contingency will be funded by General Fund Contingency. Cost for completing the Housing Element environmental analysis is $106,480 which will be funded from the Lower Income Housing fund. The City is also applying for a sustainable community grant which if approved will reduce the use of the General Fund contingency.