Report Prepared by: Bill King, Principal Planner, Development Services Department
Title
SUBJECT: First Amendment to Professional Services Agreement and First Amendment to Reimbursement Agreement for Preparation of an Environmental Impact Report for the Merced Gateway Center
REPORT IN BRIEF
The City Council will consider approving a First Amendment to Professional Services Agreement with FCS International, Inc., and a First Amendment to Reimbursement Agreement with Gateway Park Development Partners, LLC, for the preparation of an Environmental Impact Report for the Merced Gateways commercial project at the northeast and northwest corners of Campus Parkway and Coffee Street.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the First Amendment to Agreement for Professional Services with FCS International, Inc., to prepare an Environmental Impact Report for the Merced Gateway Center in the amount of $165,000; and,
B. Approving the First Amendment to Reimbursement Agreement with Gateway Park Development Partners, LLC, regarding the Environmental Impact Report in the amount of $181,500 ($165,000 for the consultants and $16,500 for City staff management of the contract); and,
C. Approving the additional appropriation of funds to Account 017-0804-512-17-00-Professional Services in the additional amount of $39,500 for payment to FCS International, Inc., for planning services; and,
D. Approving an increase in revenue in the amount of $39,500 to Account 017-0804-360-01-02-Other Revenue Developers and $3,950 to Account 017-0804-331-03-25-Environmental Impact Filing EIR for staff administration of the environmental process (approval is contingent upon execution of the agreements).
Body
ALTERNATIVES
1. Approve the amended agreements, as recommended by staff; or,
2. Approve the amended agreements, subject to modifications by City Council (identify specific items to be amended in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (to be addressed in the motion); or,
5. Continue to a future City Council meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Section 400
CITY COUNCIL PRIORITIES
This item is aligned with the City Council’s priority of coordinating with the developer on the Retail Center at Campus Parkway/Highway 99.
DISCUSSION
Proposed Project
The developers, Gateway Park Development Partners, LLC, submitted an application to the City in June 2015, for development of the Merced Gateway Center, including approximately 523,000 square feet of retail commercial and restaurant development, 182 multi-family residential units, an 81-room hotel, a fire station site, and associated infrastructure on a 77.5-acre parcel located at the northeast and southeast corners of the Campus Parkway and Coffee Street. Attachment 1 shows the current project proposal, submitted in September 2015.
Requested entitlements include: a) General Plan Amendment in order to relocate and reduce the size of the multi-family area from 20 to 8 acres and to increase the size of the commercial land use from 57.5 to 69.5 acres, as well as amendments to the Circulation Element involving the extension of Coffee Street from Gerard Avenue to Parsons Avenue, the elimination of two planned collector roadways through the project site, and right-turn only access on the Campus Parkway for two project driveways; b) a Zone Change/Establishment of a Planned Development from the current zoning of High Medium Density Residential (R-3-2) and Community Commercial (C-C) to Planned Development for the entire site; and, c) possibly a Conditional Use Permit for development of the entire site (contingent on the applicant providing details on building architecture, landscaping, etc.). In order for the Planning Commission and City Council to consider the project, an environmental analysis will need to be prepared under the provisions of the California Environmental Quality Act (CEQA).
On August 17, 2015, the City Council approved an Agreement for Professional Services with FBS and a Reimbursement Agreement with Gateway Park Development Partners, LLC, in the amount of $125,500 and $138,050 respectively. It has since been determined that an EIR will be necessary, instead of a Mitigated Negative Declaration (MND) so the project budget and scope of work needs to be modified. An EIR scoping meeting was held on October 27, 2015, and work has continued on the environmental document under the terms of the original contract.
Terms of the Agreements
Attachment 2 contains the recommended First Amendment to the Agreement for Professional Services which includes a scope of services, budget, and the anticipated schedule. The amended scope of work includes the preparation of an Environmental Impact Report and technical studies that include air quality/greenhouse gas emissions, biological resources, cultural resources, noise, traffic, and a water supply assessment as required by State Law for projects of this size. Specialized sub-consultants serving with First Carbon Solutions include KD Anderson and Associates (KDA) for traffic and circulation and Balance Hydrologics, Inc., for the water supply assessment.
As indicated in the First Amendment to the Reimbursement Agreement (Attachment 3), the applicant will pay for the entire consultant cost ($165,000). Under terms of the original agreement, the applicant has already paid $125,500. The amended agreement will require a final payment of $39,500 due upon execution of the contract. The applicants will also reimburse the City for staff time spent on administering the environmental process. An additional fee of $16,500 (ten percent of the cost of the environmental review) is required upon execution of the agreement; since the applicant has already paid $12,550 under the terms of the initial agreement, a balance of $3,950 is due upon execution of the contract.
The applicants also acknowledge in Section 2 of the reimbursement agreement (Attachment 3) that “the contract with the Consultant is being entered into by the City as an accommodation to the Developer to facilitate the evaluation of the project and does not guarantee any particular result of outcome. Developer further acknowledges and agrees that it shall have no control over the work product of the Consultant, and that its payment of the costs is not dependent thereon.”
IMPACT ON CITY RESOURCES
The entire cost for preparing the environmental document ($165,000) will be reimbursed to the City by the developers as well as the costs ($16,500) to cover City staff management of the consultant contract and environmental process. Actions to appropriate the revenue to the corresponding Accounts in the Development Services Department budget are included in the recommendation.
ATTACHMENTS
1. Proposed Site Plan and Land Use Table for Merced Gateway Center
2. First Amendment to the Professional Services Agreement with FCS International, Inc.
3. First Amendment to the Reimbursement Agreement with Gateway Park Development Partners, LLC