For the Earthquake Analysis Portion use K'ae from the widely used M-O formula. You must combine the Static Lateral Load with the increment generated by the Earthquake Load for the Total Design Load. Also, obtain the "Design of Earth Retaining Structures for Dynamic Loads" Article by Seed and Whitman published in 1970. To briefly summarize it, with a Soil Internal Friction Angle of 35 degrees and the Horizontal Ground Acceleration (max) Kh=0.17, there should not be any major design penalty to pay. The safety factor still would be around 1.15 against any significant displacements. What is your Wall Dim's and the Seismic Zone you are in?? Good Luck.