Report Prepared by: Julie Nelson, Acting Planning Manager, Development Services Department
Title
SUBJECT: Approval of an Agreement for Services with Dudek for Environmental Services and a Deposit and Reimbursement Agreement with Gardner Ranch 2, LLC and Gardner Commercial LP, Relating to the Annexation of the Approximately 70 Acres of Land at the Northeast Corner of Yosemite Avenue and Gardner Avenue
REPORT IN BRIEF
Considers approving an agreement for services with Dudek, in the amount of $202,820 to perform environmental services for the annexation of approximately 70 acres at the northeast corner of Yosemite Avenue and Gardner Avenue to the City of Merced and entering into a deposit and reimbursement agreement with Gardner Ranch 2, LLC and Gardner Commercial, LP, in the amount of $223,102 to fund the Dudek contract and to reimburse for City staff time to manage the contract.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving an Agreement for Services with Dudek, in the amount of $202,820 to perform environmental services for the annexation of the University Vista project to the City of Merced; and,
B. Approving a Deposit and Reimbursement Agreement with Gardner Ranch 2, LLC, and Gardner Commercial LP, in the amount of $223,102 to cover the cost of the consultant contract ($202,820) and staff time ($20,282) for the administration of the environmental review process and contract; and,
C. Approving an increase of revenue in the amount of $208,820 to Fund 3000-Development Services, Developer Capital Fees account and appropriating the same to Fund 3000-Development Services, Professional Services account for payment to Environmental Science Associates; and,
D. Approving an increase in revenue in the amount of $20,282 to Fund 3000-Development Services, Cost Recovery account; and,
E. Authorizing the City Manager or Deputy City Manager to execute the agreements.
Body
ALTERNATIVES
1. Approving the Services and Reimbursement Agreements as recommended by staff; or,
2. Amending the Services and Reimbursement Agreements (with specific amendments to be specified in Council motion); or,
3. Direct staff to make changes and return to Council at a later late; or,
4. Deny; or,
5. Continue the matter to a future Council meeting (date and time to be specified in motion).
AUTHORITY
The Cortese-Knox-Hertzberg Act of 2000 establishes procedures for city annexations and other local government changes in organization. Merced Municipal Code Title 19 spells out environmental review procedures for the City.
CITY COUNCIL PRIORITIES
On October 19, 2020, the City Council indicated general support for moving forward with the proposed annexation at the northeast corner of Yosemite Avenue and Gardner Avenue.
DISCUSSION
Background
An annexation application for the northeast corner of Yosemite Avenue and Gardner Avenue was submitted in 2016. Recently, the ownership of the property changed, and the project has been modified slightly. The new owners, Gardner Ranch 2, LLC and Gardner Commercial, LP, are seeking to continue the environmental review process and complete the annexation.
The proposed annexation consists of approximately 70 acres with the development of approximately 30 acres (Attachment 1). The development of the approximately 30 acres would include approximately 520 multi-family units, 88,090 square feet of commercial along with associated parking. The existing land uses on the remaining annexation area would remain.
Recommended Consultant Selection
Dudek was the environmental consultant working with the previous owner. A Draft Environmental Impact Report (EIR) was prepared and circulated in 2020. Shortly, thereafter, the previous owners requested the work be stopped. Because Dudek is familiar with the site and would only need to update the existing Draft EIR to include any changes proposed by the new owners, they have requested Dudek continue to work on the project.
Dudek prepared a scope of work for the completion of the Environmental Impact Report for this annexation. The scope of work includes updating the project description and other chapters as needed based on the revised project. The scope also includes project management, the preparation of the Draft EIR for circulation for public review, the preparation of the Final EIR and Responses to Comments on the Draft EIR, and participation in public hearings on the project. The project team also include DKS who will provide an update to the traffic analysis. The budge for the scope of services is $202,820 and the project is expected to take approximately 53.5 weeks. The full scope of work and budget is provided at Exhibit A of the Professional Services Agreement at Attachment 2.
The City Attorney’s office has prepared an Agreement for Professional Services with Dudek at Attachment 2 for $202,820 and a Deposit and Reimbursement Agreement with Gardner Ranch 2, LLC and Gardner Commercial, LP, at Attachment 3 for a total of $223,102. The $202,820 for the consultant contract will be paid in four equal installments within 30 days, 90 days, 120 days, and 180 days of execution of the contract respectively; and the $20,282 for staff time will be paid in one installment within 30 days of execution.
City Council Action
City staff is recommending that the City Council award the contract at Attachment 2 in the amount of $202,820 to Dudek to perform the environmental services for the Yosemite Avenue and Gardner Avenue annexation to the City of Merced. The City Council should also approve the Deposit and Reimbursement Agreement at Attachment 3 with Gardner Ranch 2 LLC, and Gardner Commercial LP, to cover the costs of the contract ($202,820) as well as City staff time involved in managing the contract ($20,282).
IMPACT ON CITY RESOURCES
Gardner Ranch 2, LLC and Gardner Commercial LP, through the Deposit and Reimbursement Agreement at Attachment 3 will fund the entire cost of Dudek’s contract ($202,820) as well as paying for City staff time to manage the contract ($20,820 or ten percent of the contract amount per the Planning and Development Fee Schedule).
ATTACHMENTS
1. Yosemite Avenue and Gardner Avenue Annexation Project
2. Agreement for Services with Dudek
3. Deposit and Reimbursement Agreement with Gardner Ranch 2, LLC, and Gardner Commercial, LP