Report Prepared by: Bill King, Principal Planner, Development Services Department
Title
SUBJECT: Second Amendment to Professional Services Agreement and Second 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 Second Amendment to Professional Services Agreement with FCS International, Inc., and a Second 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 Second Amendment to Agreement for Professional Services with FCS International, Inc., to prepare an Environmental Impact Report for the Merced Gateway Center in the additional amount of $32,500 (bringing the total contract up to $197,500); and,
B. Approving the Second Amendment to Reimbursement Agreement with Gateway Park Development Partners, LLC, regarding the Environmental Impact Report in the amount of $35,750 (bringing the total amount up to $217,250, with $32,500 for the consultants and $3,250 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 $32,500 for payment to FCS International, Inc., for planning services; and,
D. Approving an increase in revenue in the amount of $32,500 to Account 017-0804-360-01-02-Other Revenue Developers and $3,250 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 200.
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/Hwy 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, 178 multi-family residential units, a 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. In order for the Planning Commission and City Council to consider the project, an environmental analysis prepared under the provisions of the California Environmental Quality Act (CEQA) is needed and is currently being prepared by consultants.
On August 17, 2015, the City Council approved the original Agreement for Professional Services with FCS and a Reimbursement Agreement with Gateway Park Development Partners, LLC, in the amount of $125,500 and $138,050, respectively. In order to account for the need of an Environmental Impact Report, an amendment to that agreement was approved by the City Council on January 19, 2016, which changed the amounts to $165,000 and $181,500 respectively.
Changes to the Scope and Agreements
Upon review of preliminary information about the project’s circulation plan, the applicant has requested changes to their proposal. Attachment 2 contains the recommended Second Amendment to the Agreement for Professional Services, which includes an augmented scope of services, budget and the anticipated schedule. The tasks of the augmented scope are reflective of the following changes to the site plan: 1) Coffee Street, between Gerard Avenue and Campus Parkway, will remain in its current configuration composed of two unconnected segments, specifically as a local road with a cul-de-sac adjacent to Pioneer Elementary School, and as a collector road that connects Parsons Avenue with Campus Parkway; and, 2) extension of Parsons Avenue east of Coffee Street to the project’s eastern boundary. A new item, Task 3, is needed to inform decisions as to the need and timing for roadway improvements as the large project develops over time.
As specified in the Second Amendment to the Reimbursement Agreement (Attachment 3), the applicant will pay for the entire consultant cost ($197,500). Under terms of the original agreement and first amendment, the applicant has already paid $165,000. The Second amended agreement will require a final payment of $32,500 due upon execution of the contract. The applicants will also reimburse the City for staff time spent on administering the environmental process. An additional deposit of $19,750 (ten percent of the cost of the environmental review) is required upon execution of the agreement; since the applicant has already paid $16,500 under the terms of the original agreement and first amendment, a balance of $3,250 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 ($197,500) will be reimbursed to the City by the developers as well as the costs ($19,750) 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. Second Amendment to the Professional Services Agreement with FCS International, Inc.
3. Second Amendment to the Reimbursement Agreement with Gateway Park Development Partners, LLC