DATE: August 19, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: AMENDMENT 1 TO EXISTING PROFESSIONAL SERVICES AGREEMENT WITH FERGUSON, PAPE, BALDWIN ARCHITECTS INC. FOR DESIGN DEVELOPMENT SERVICES ASSOCIATED WITH THE BUILDING INTERIOR IMPROVEMENTS FOR THE PROPERTY LOCATED AT 615 MISSION AVENUE
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 1 to the existing Professional Services Agreement with Ferguson, Pape, Baldwin Architects Inc. for design development services associated with the building improvements necessary for the property located at 615 Mission Avenue, which is being prepared for future use by the City’s READS Literacy Program and the Friends of the Oceanside Public Library, for an additional compensation of $163,500, for a total contract not to exceed the amount of $188,500; approve a change order to Ferguson, Pape, Baldwin Architects Inc. in the amount of $163,500; and authorize the City Manager to execute the amendment, upon receipt of all supporting documents; and authorize the Financial Services Director, or designee, to execute the change order upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
On March 11, 2026, the City Council approved a Purchase and Sale Agreement (“PSA”) with Larry W. Hatter and Cathleen E. Hatter, Co-Trustees of the Hatter Family Trust dated December 4, 1986 (“Seller”) for the acquisition of the property located at 615 Mission Avenue (“Property”). The PSA was later administratively amended by Amendment 1 on May 18, 2026, to document that Seller would be entering into a 1031 exchange for the transaction.
After entering into the PSA, the staff began evaluating the Property to determine its suitability for the City’s future library related uses. During this time, the staff engaged multiple consultants to complete additional studies and reports on the Property, which included, but were not limited to a Phase I Environmental Report, a Hazardous Materials Assessment testing for mold, lead based paint and asbestos, as well as a complete title review. Staff also engaged other vendors and consultants to review necessary improvements for the building and determining the tenant improvements applicable to the City’s use and the future tenant, the Friends of the Oceanside Public Library (“Tenant”).
A primary focus has been evaluating requirements for installation of an elevator within the building in order to allow full use of the basement level. In that regard, on April 1, 2026, the City entered into a Professional Services Agreement (“Agreement”) with Ferguson, Pape, Baldwin Architects Inc. (“Consultant”) in the initial contract amount of $25,000 for the preparation of feasibility studies for the proposed elevator, evaluation of the building entry needed for the City’s use along with the Tenant’s use, and associated evaluation services related to other required improvements for the building. The City completed its initial studies of the Property, and all contingencies and conditions to closing per the PSA were satisfied; therefore, the City moved forward with the acquisition on June 10, 2026, when the City took fee ownership of the Property.
At this time, staff is recommending that the City enter into Amendment 1 (“Amendment”) to the Agreement with Consultant to increase the contract price by $163,500, in order to expand the scope of services to include design development services for the interior upgrades, elevator, restroom improvements, electrical upgrades, construction management services, and other design related services as may be applicable to the building and Property. The next steps are for Consultant to prepare biddable plans which account for the City’s desired tenant and building improvements, estimated to be prepared within approximately six weeks from Amendment approval. The plans will be submitted for permit approval, and will be used to bid out the scope of work. In addition, pursuant to further investigation by the City’s electrical consultant, it was determined that an electrical switchgear upgrade is required and the design plans are necessary; therefore, staff and Consultant will work with San Diego Gas and Electric (“SDGE”) to provide the necessary upgrades. Staff estimates the actual upgrades and elevator improvements may take approximately 12 to 18 months, barring any unforeseen delays by SDGE. During this time, the City’s contractor will be working on the other building improvements in order to ready the building for occupancy.
FISCAL IMPACT
Amendment 1 with Consultant in the amount of $163,500, with the total Agreement compensation in the amount of $188,500, will be charged to the account listed in the table below, which has a total balance available of $497,088; therefore, sufficient funds are available.
|
Description |
Amount |
Account |
FY 2026-27 Available Balance |
|
Amendment 1 with Ferguson, Pape, Baldwin Architects Inc. |
$163,500 |
907205125501.5305.10200 615 Mission Avenue/READS Library Building |
$497,088 |
COMMISSION OR COMMITTEE REPORT
Consultant will maintain the City’s standard insurance requirement over the term of the Agreement.
INSURANCE
Consultant will maintain the City’s standard insurance requirement over the term of the Agreement.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Vicki Gutierrez, Real Estate Manager
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Amendment 1
2. Professional Services Agreement