Report Prepared by: Julie Nelson, Senior Planner, Development Services Department
Title
SUBJECT: Approval of a Professional Services Agreement with J.B. Anderson Land Use Planning and Deposit and Reimbursement Agreement with Bellevue Merced, LLC, for Preparation of an Environmental Document for the Proposed M Street and Bellevue Road Annexation in the Amount of $28,924.00
REPORT IN BRIEF
Considers approving a Professional Services Agreement with J.B. Anderson Land Use Planning along with a Reimbursement Agreement with Bellevue Merced, LLC, for preparation of an environmental document for the proposed annexation of approximately 37 acres location on the north side of Bellevue Road, west of M Street (extended).
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Professional Services Agreement with J.B. Anderson Land Use Planning in the amount of $28,924.00 for preparation of an environmental document for the M Street and Bellevue Road Annexation; and,
B. Approving the Deposit and Reimbursement Agreement with Bellevue Merced, LLC, in the amount of $31,816.40 to cover the cost of the consultant contract and staff time for the administration of the environmental review process; and,
C. Approving an increase of revenue in the amount of $22,324.00 to account 017-0804-360-01-02 - Other Revenue Developers and appropriating $28,924 to account 017-0804-512-17-00-Professional Services ($6,600 previously paid by the developer into account 017-0804-331-03-17- Environmental Review Fees) for payment to J.B. Anderson Land Use Planning; and,
D. Approving an increase of revenue in the amount of $2,892.40 to account 017-0804-331-01-11 - Cost Recovery; and,
E. Authorizing the City Manager or designee to execute the documents.
Body
ALTERNATIVES
1. Approve the agreements, as recommended by staff; or,
2. Approve the 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
DISCUSSION
Proposed Project
Bellevue Merced, LLC, and AB Merced, LLC have submitted an application to annex approximately 37 acres of land generally located north of Bellevue Road, west of M Street (extended) (Attachment 1). The proposed annexation would include approximately 13.05 acres of land for High Density Residential, approximately 16.1 acres of land for Commercial Office, approximately 4.9 acres of Open Space and approximately 3.06 acres for streets and right-of-way (Attachment 2). The proposed land uses are consistent with the current General Plan land use designations. This proposed annexation was presented to the City Council on October 19, 2020, as part of a comprehensive review of future annexations. At that time, the Council directed staff to proceed with this proposed annexation. Therefore, staff has continued our review of the project and are working to move the annexation forward.
As part of the review process, an environmental review in compliance with the California Environmental Quality Act (CEQA) is required. Due to the complexity and time it takes for the environmental review, City staff and the applicant have agreed to have an outside consultant prepare the environmental review document. City staff and the project applicants are recommending that J.B. Anderson Land Use Planning be selected as the environmental consultant due to their experience with similar projects and their understanding and level of analysis of the project issues in the subject area. J.B. Anderson Land Use Planning and its staff members who will work on the project have the required experience and qualifications to complete the proposed environmental work.
Terms of the Agreements
Attachment 3 contains the recommended agreement for professional services which includes a scope of services, budget, and the anticipated schedule. The scope of work will include the preparation of an initial study in anticipation of the preparation of a Mitigated Negative Declaration (if it is determined that an Environmental Impact Report is required, the scope will need to be amended), and technical studies that include air quality, greenhouse gas analysis, and traffic. All the work will be performed by J.B. Anderson Land Use Planning with no sub-consultants proposed.
As indicated in the reimbursement agreement (Attachment 4), the applicant will pay for the entire consultant cost ($28,924.00), less $6,600 previously paid by the applicant at the time of application submittal. The applicants will also reimburse the City for staff time spent on administering the environmental process based on actual cost of time, services and materials. An additional deposit of $2,892.40 (ten percent of the cost of the environmental review) is required upon execution of the agreement.
The applicants also acknowledge in Section 2 of the reimbursement agreement (Attachment 4) 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 ($28,924.00) will be reimbursed to the City by the developers (less the $6,600 previously paid) as well as the costs ($2,892.40) to cover City staff management of the consultant contract and environmental process.
ATTACHMENTS
1. Location Map
2. Proposed Land Uses
3. Professional Services Agreement with J.B. Anderson Land Use Planning
4. Deposit and Reimbursement Agreement with Bellevue Merced, LLC