Report Prepared by: Samuel J. Rashe, Planning Manager, Development Services Department
Title
SUBJECT: Approval of a First Amendment to the Deposit and Reimbursement Agreement with University Vista Master Plan, LLC, Relating to the University Vista Annexation (Annexation #22-02) to Annex 290 Acres of Land Located at the Northwest Corner of Bellevue Road and Lake Road to the City of Merced, and Approval of a First Amendment to the Professional Services Agreement with Environmental Science Associates
REPORT IN BRIEF
Considers approving amendments to the Deposit and Reimbursement Agreement with University Vista Master Plan, LLC, and the Professional Services Agreement with Environmental Science Associates to increase the amount of the contract for environmental services and to reimburse for City staff time to manage said contract.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the First Amendment to the Deposit and Reimbursement Agreement with University Vista Master Plan, LLC, in the amount of $49,706, which includes the increase in contracted environmental services ($45,188) and management time by City staff ($4,518) for a total contracted amount of $990,748; and,
B. Approving the First Amendment to the Professional Services Agreement with Environmental Science Associates to complete Environmental Services for University Vista Annexation (Annexation #22-02) in the amount of $45,188 for a total contract amount of $900,681; and,
C. Approving an increase of revenue in the amount of $45,188 to Fund 3000-Development Services, Developer Capital Fees account and appropriating the same to Professional Services account for payment to Environmental Science Associates; and,
D. Approving an increase in revenue in the amount of $4,518 to Fund 3000-Development Services, Cost Recovery account; and,
E. Authorizing the City Manager to execute all necessary documents.
Body
ALTERNATIVES
1. Approve the First Amendment to the Deposit and Reimbursement Agreement and the Professional Services Agreement; or,
2. Amend the First Amendment Professional Services Agreement, and or Deposit and Reimbursement Agreement (with specified amendments to be specified in council motion; or
3. Direct staff to make changes and return to Council later; 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.
DISCUSSION
Proposed Project
On September 20, 2021, City Council reviewed a Pre-Annexation application for University Vista located at the northwest corner of Bellevue Road and Lake Road for a 290-acre mixed-use development, in which City Council indicated general support for the annexation. On December 6, 2021, the City of Merced entered into a Deposit Reimbursement Agreement with University Vista Master Plan, LLC, and an Agreement for Services with Environmental Science Associates (ESA) for the sum of Eight Hundred Fifty-Five Thousand Four Hundred Ninety-Three Dollars ($855,493.00).
ESA has submitted a request to amend the professional services agreement for the University Vista Project Environmental Impact Report (EIR) in the amount of Forty-Five Thousand One-Hundred Eighty-Eight dollars ($45,188) to address work that falls outside the original contract scope and budget. After issuance of the Notice of Preparation, an analysis of agricultural resources and wildfire impacts, due to local sensitivities, was added; the preparation of these additional sections required consultant effort not contemplated in the original agreement.
Further, the project applicant modified the project description by increasing residential unit counts, expanding commercial square footage, and retaining the existing site layout. These changes required updates to the project description and supporting environmental analysis. Additionally, when the original scope was developed, several technical studies had not yet been completed. Upon review of those studies, ESA determined that additional effort was needed to adequately prepare the air quality, biological resources, energy, and greenhouse gas emissions sections of the EIR.
The project also experienced a prolonged hiatus beginning in early 2023. As a result, the consultant must review previously completed work to re-familiarize staff with the project and ensure consistency across all EIR sections. Because the remaining budget is insufficient to complete these expanded tasks, an amendment is required to add funding to the Administrative Draft EIR task to complete the document in compliance with CEQA requirements.
City Council Action
City staff is recommending that the City Council approve the Amended Professional Services Agreement (Attachment 3) in the amount of $45,188 to Environmental Science Associates to perform the environmental services for the University Vista Annexation to the City of Merced. Staff is also recommending the approval of the Amended Deposit and Reimbursement Agreement (Attachment 4) with University Vista Master Plan, LLC, in the amount of $49,706 to cover the costs of the contract ($45,188) as well as City staff time involved in managing the contract ($4,518).
IMPACT ON CITY RESOURCES
The City is not responsible for the cost of preparing the EIR document. University Vista Master Plan, LLC, will fund the entire cost of the ESA contract amendment as well as paying for City staff time to manage the contract.
This item requires 5 affirmative votes for approval.
ATTACHMENTS
1. Original Professional Agreement for Services with Environmental Science
2. Original Deposit and Reimbursement Agreement with University Vista Master Plan, LLC
3. First Amendment to the Professional Services Agreement with Environmental Science
4. First Amendment to the Deposit and Reimbursement Agreement with University Vista Master Plan, LLC
5. Land Use Map