Report Prepared by: Kim Espinosa, Planning Manager, Development Services Department
Title
SUBJECT: Approval of an Agreement for Services with Environmental Science Associates (ESA) for Environmental Services and a Deposit and Reimbursement Agreement with University Vista Master Plan, LLC, Relating to the Annexation of the University Vista Project to the City of Merced
REPORT IN BRIEF
Considers entering into an agreement for services with Environmental Science Associates (ESA), in the amount of $855,493 to perform environmental services for the annexation of the University Vista project (290 acres at the northwest corner of Bellevue and Lake Roads) to the City of Merced, and entering into a deposit and reimbursement agreement with University Vista Master Plan, LLC, in the amount of $941,042 to fund the ESA 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 Environmental Science Associates (ESA), in the amount of $855,493 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 University Vista Master Plan, LLC, in the amount of $941,042 to cover the cost of the consultant contract ($855,493) and staff time ($85,549) for the administration of the environmental review process and contract; and,
C. Approving an increase of revenue in the amount of $855,493 to Account 017-0804-360-01-02-Other Revenue Developers and appropriating $855,493 to Account 017-0804-512-17-00-Professional Services for payment to Environmental Science Associates; and,
D. Approving an increase in revenue in the amount of $85,549 to Account 017-0804-331-01-11-Cost Recovery; 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 September 20, 2021, the City Council indicated general support for moving forward with an application for the annexation of the University Vista project to the City of Merced.
DISCUSSION
Background
On September 20, 2021, the City Council reviewed Preliminary Annexation Application #21-02 for University Vista, a 290-acre mixed use development at the northwest corner of Bellevue and Lake Roads (Attachment 1). The project would include an estimated 4,176 dwelling units along with 788,486 square feet of commercial, mixed use, and hospitality development over the course of approximately 10 years. 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.
Recommended Consultant Selection
Although the applicants have yet to submit for an official annexation application given that their annexation will need to wait until the annexation of the UC Merced campus to the City of Merced per the terms of AB 3312, the applicants are anxious to get started with the environmental process.
The applicants have worked with Environmental Science Associates (ESA) in the past and indicated that they had the skills and experience to handle such a complex project. City staff had also worked with ESA and/or some of their team members in the past on various projects, including an EIR for the Wastewater Treatment Plant expansion and the University Community Plan. After discussing the project with the applicants and City staff, ESA prepared a scope of work for the preparation of an Environmental Impact Report (EIR) for the University Vista Project.
The scope of work (Exhibit A of Attachment 2) includes project management, the preparation of the Notice of Preparation (NOP), the peer review of three technical reports prepared for the applicants directly in the areas of biological assessment, air quality/energy/greenhouse gas study, and population/employment/housing; conducting the tribal consultation per State law, 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 includes ESA as well as Fehr and Peers for transportation analysis, Black Water Consulting Engineers, Inc., for the water supply assessment, and ALH Economics for the urban decay analysis. The budget for the scope of services is $855,493 and the work is expected to take approximately 52 weeks to complete.
The City Attorney’s office has prepared an Agreement for Services with ESA at Attachment 2 for $855,493 and a Deposit and Reimbursement Agreement with University Vista Master Plan, LLC, at Attachment 3 for a total of $941,042. The $855,493 for the consultant contract will be paid in three equal installments within 30 days, 120 days, and 180 days of execution of the contract respectively; and the $85,549 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 $855,493 to Environmental Science Associates to perform the environmental services for the University Vista annexation to the City of Merced. The City Council should also approve the Deposit and Reimbursement Agreement at Attachment 3 with University Vista Master Plan, LLC, to cover the costs of the contract ($855,493) as well as City staff time involved in managing the contract ($85,549).
IMPACT ON CITY RESOURCES
University Vista Master Plan, LLC, through the Deposit and Reimbursement Agreement at Attachment 3 will fund the entire cost of ESA’s contract ($855,493) as well as paying for City staff time to manage the contract ($85,549 or ten percent of the contract amount per the Planning and Development Fee Schedule).
ATTACHMENTS
1. University Vista Project
2. Agreement for Services with Environmental Science Associates
3. Deposit and Reimbursement Agreement with University Vista Master Plan, LLC