Staff Report
City Council
Item No. {{section.number}}.P
Meeting Date: June 25, 2025
From: Sandra Molina, Community and Economic Development Deputy Director Title: Professional Services Contract with Terra Nova Planning and Research, Inc. for the CV Commerce Center project
RECOMMENDATION:
Approve an amendment to the professional services agreement with Terra Nova Planning and Research, Inc. for planning and environmental services related to the CV Commerce Center project and authorize the City Manager to execute the agreement with Terra Nova Planning and Research, Inc.
BACKGROUND:
On February 28, 2024, the City Council approved a professional services agreement with Terra Nova Planning and Research, Inc. (Terra Nova) in the amount of $346,190 for planning and environmental services on the Messenger development project, since filed and referred to as the CV Commerce Center project (CV Commerce).
At the same February 28th meeting, the City Council approved a Reimbursement Agreement between the City and Developer for the reimbursement of costs associated with Terra Nova’s services. The reimbursement agreement required Developer to provide a $50,000 security deposit. All invoices submitted to the City by Terra Nova have been forwarded to the Developer for payment directly to Terra Nova. To date, the Developer has paid all invoices, and the deposit has remained intact.
DISCUSSION:
The CV Commerce project is located within the North City Extended Specific Plan (NCESP) and makes up most of the land within the NCESP. The NCESP is located north of the I-10 Freeway, primarily west of Bob Hope Drive.
In July 2024, the Developer filed the project for the industrial park which includes approximately 7.9 million square feet of warehouse buildings and offices, and supporting parking, landscaping and drainage areas. The developer has submitted 11 development applications, including three tentative parcel maps, three design reviews, a specific plan amendment, change of zone, zoning ordinance amendment, general plan amendment, and development agreement. The preparation of an EIR is also underway.
The project site and environmental review ensures that topics such drainage flows, traffic/circulation, site grading, are fully analyzed and accounted for in the project design and EIR.
As the project review has commenced, additional work has been needed beyond the original scope of work provided by Terra Nova. Terra Nova, City staff, and the Developer’s team have spent significant time and resources in reviewing drainage and traffic conditions, studies and refining the scope of work for the studies. This resulted in three change orders, all within the City Manager’s approval authority, and the original contract was amended each time.
Terra Nova advised City staff of another change order to modify the scope of work to include a noise study, which has been discussed with the Developer. Staff requested that Terra Nova also assess the scope of work in the contract and identify where costs will need to be augmented given the work to date and to complete the project. This is also included in the change order.
The CV Commerce is a complex project requiring extensive coordination between City staff, Terra Nova, and the Developer. The change orders that have been approved and the additional change order are appropriate for this level of project and ensure that the project and environmental review are complete.
FISCAL IMPACT:
The service contract for Terra Nova is not to exceed $480,270. The reimbursement agreement ensures the Developer pays for services incurred by Terra Nova, and the Developer has done so to date. Additionally, the Developer’s application submittal included the payment of filing fees, which are deposit based and City staff costs are being 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:
1. Fourth Amendment to Terra Nova Contract_CV Commerce
2. Change Order #4