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Staff Report
City Council
Item No. 6.F
Meeting Date: February 28, 2024
From: Sandra Molina, Deputy Director of Development Services Title: Professional Services Contract with Terra Nova Planning and Research, Inc. for Messenger Project
City Council
RECOMMENDATION:
To approve a professional services agreement with Terra Nova Planning and Research, Inc. for planning and environmental services related to the Messenger development project and authorize the City Manager to execute the agreement with Terra Nova Planning and Research, Inc. and authorize the City Manager to execute a reimbursement agreement with Developer for the cost of services.
BACKGROUND/DISCUSSION:
The North City Extended Specific Plan (NCESP) encompasses approximately 590 acres of land north of the I-10 Freeway, primarily west of Bob Hope Drive. Development Services Zoning districts within the specific plan include Mixed Use Urban, Mixed Use Neighborhood, Light Industrial and Open Space.
Staff have met several times with Bill Messenger and Marco Rosetti (Developer), who are proposing to develop their properties such that several applications, amendments to the zoning and general plan land use maps, amendment to the specific plan and an environmental impact report (EIR) will be required. The City’s adopted housing element also identified affordable housing sites within their properties that must be considered to maintain the housing element’s certification.
Staff included Terra Nova Planning and Research Inc. in the meetings as Terra Nova prepared the City’s General Plan Update, General Plan EIR and Housing Element, which has been certified by HCD. As such, Terra Nova’s participation in the meeting was invaluable in identifying the path forward for the Developer.
Pursuant to Section 3.12.160.C of the Municipal Code, the City Council may authorize the execution of the professional services contract without obtaining proposals. Given Terra Nova’s work familiarity with the City, their experience preparing the City’s general plan and general plan EIR, and their understanding of Developer’s proposal , Staff is recommending that the City Council approve a professional services contract with Terra
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Nova to provide staff support in the performance of the planning and environmental work for the Developer’s project.
Terra Nova has provided a scope of work for the project and a cost estimate in the amount of $346,190. Staff has shared the cost estimate with the Developer and the Developer agrees with the cost proposal.
Reimbursement Agreement
A reimbursement agreement has been prepared between the City and Developer for the reimbursement of costs associated with Terra Nova’s services as itemized in the contract agreement . The reimbursement agreement requires Developer to make a $50,000 security deposit. All invoices submitted to the City by Terra Nova will be provided to the Developer for payment. The Developer will pay Terra Nova directly. The security deposit will remain in place . In the event the City draws from the deposit, the Developer must reimburse the City to make the deposit whole at $50,000.
Staff recommends that the City Council authorize the City Manager to execute the agreement.
FISCAL IMPACT:
The service contract for Terra Nova is not to exceed $346,190. The reimbursement agreement will ensure the Developer pays for services incurred by Terra Nova.
Additionally, Developer’s applications are subject to application filing fees to cover the costs of review by City departments. The filing fees will be deposit based and staff costs will be billed to a separate City deposit account.
FIVE-YEAR STRATEGIC PLAN:
This action will further Goal A – Serve the Community with Pride and Dedication
Objective – Through diversity, equity and inclusion driven employee programs and employee experiences, Cathedral City is the employer of choice with a workforce that is engaged, motivated and respected public stewards.
A-1 – Study the need to reallocate staff resources including the use of contracts.
ATTACHMENTS:
Terra Nova Professional Services Agreeemnt - Messenger Project CON - Cost Recovery Reimbursement Agmt Form_(2-21_v.2)