Report Prepared by: Jonnie Lan, AICP, Acting Planning Manager and Leah Brown, Management Analyst, Development Services Department
Title
SUBJECT: Approval of a First Amendment to a Deposit and Reimbursement Agreement with MCYL1, LLC, Relating to the Annexation of the Yosemite Lake Village Project to the City of Merced, Generally Located at the Northeast Corner of G Street and Old Lake Road
REPORT IN BRIEF
Considers approving an amendment to the Deposit and Reimbursement Agreement with MCYL1, LLC, to change the payment schedule of the De Novo contract 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 MCYL1, LLC; and,
B. Authorizing the City Manager to execute the agreements.
Body
ALTERNATIVES
1. Approve the First Amendment to the Deposit and Reimbursement Agreement; or,
2. Amend the First Amendment to the Deposit and Reimbursement Agreement (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 April 4, 2022, the City Council indicated general support for moving forward with an application for the annexation of the Yosemite Lake Village project to the City of Merced.
On June 3, 2024, the City Council approved the original Professional Service Agreement with De Novo and the original Deposit and Reimbursement Agreement with MCYL1, LLC, for this project.
DISCUSSION
Background
On April 4, 2022, the City Council reviewed Preliminary Annexation Application #21-06 for Yosemite Lake Village, a 734-acre mixed use development at the northeast corner of Old Lake and Golf Roads, along with adjoining properties to be included in the annexation area (Attachment 1). The project would include an estimated 2,708 dwelling units along with 8 acres of neighborhood commercial development and 564 acres of parks and open space (Attachment 2). After reviewing the information in the application and hearing from the applicants, the City Council voted unanimously to offer general support for the project moving forward with an official annexation application.
On June 3, 2024, the City Council approved an Agreement for Professional Services with De Novo for $348,610 and a Deposit and Reimbursement Agreement with MCYL1, LLC, for a total of $383,471 (Attachment 4). This agreement arranged a specific payment schedule. The applicant requests to update the payment schedule with this amendment. The monetary amounts listed in the original agreement are not being changed.
The $348,610 for the consultant contract will be paid in four (4) equal installments of $87,152.50 with the first installment being due within 10 days of the mutual execution of this Amendment. The second, third and fourth installments of $87,152.50 will be due within, 90 days, 120 days, and 180 days of the mutual execution of this Amendment respectively; and the $34,861 for staff time will be paid in one installment within 30 days of mutual execution of the Amendment. The approval would not change the scope of work or the funding amounts to support the proposed scope of work.
City Council Action
City staff is recommending that the City Council approve the First Amendment to the Deposit and Reimbursement Agreement (Attachment 3). This would update the payment schedule. The approval would not change the scope of work or the funding amounts to support the proposed scope of work.
IMPACT ON CITY RESOURCES
Per the original approval, MCYL1, LLC, through the Deposit and Reimbursement Agreement will fund the entire cost of De Novo’s contract ($348,610) as well as paying for City staff time to manage the contract.
ATTACHMENTS
1. Location Map
2. Yosemite Lake Village Project Plan
3. First Amendment to Deposit and Reimbursement Agreement
4. Original Deposit and Reimbursement Agreement