Administrative
Report
H.11., File # 22-3790 Meeting Date: 3/1/2022
To: MAYOR AND CITY COUNCIL
From: BRANDY FORBES, COMMUNITY DEVELOPMENT DIRECTOR
TITLE
APPROVE THE FOURTH AMENDMENT TO THE AGREEMENT WITH RINCON CONSULTANTS, INC. FOR ENVIRONMENTAL REVIEW SERVICES OF A PROPOSED DEVELOPMENT PROJECT TO BE LOCATED AT 100-132 N. CATALINA AVENUE FOR AN ADDITIONAL $14,800 FOR A NEW TOTAL AMOUNT NOT TO EXCEED $193,858 FOR A TERM THROUGH SEPTEMBER 30, 2022
APPROVE THE SECOND AMENDMENT TO THE REIMBURSEMENT AGREEMENT WITH
CATALINA FUND, LLC FOR REIMBURSEMENT OF COSTS RELATED TO THE ENVIRONMENTAL REVIEW OF A PROPOSED DEVELOPMENT PROJECT TO BE LOCATED AT 100-132 N.
CATALINA AVENUE FOR AN ADDITIONAL AMOUNT OF $14,800 FOR A NEW TOTAL AMOUNT NOT TO EXCEED $239,583 FOR A TERM THROUGH JUNE 30, 2022
EXECUTIVE SUMMARY
The City entered into an agreement with Rincon Consultants, Inc. on August 20, 2019 to prepare a CEQA Initial Study/Mitigated Negative Declaration (IS/MND) for a proposed project to be located at 100-132 N. Catalina Avenue. A first amendment to the agreement extended the term to allow for additional time to complete project review.
During the review, a significant impact was found in the traffic analysis which triggered a full Environmental Impact Report (EIR). On February 2, 2021 the City Council approved a second amendment to the contract and a first amendment to the reimbursement agreement for additional costs and time associated with the scope of the full EIR. A third amendment to the Rincon contract was approved on December 14, 2021 to extend the term through September 30, 2022 as additional time was needed to complete the EIR.
The current fourth amendment adds $14,800 to the contract amount for additional scope of work related to project revisions which required more analysis. The added cost will be fully reimbursed by the project developer, Catalina Fund, LLC, per the terms of the second amendment to the reimbursement agreement. The reimbursement amount is required to be paid in full within 14 days of contract approval and, therefore, an extension to the term of the agreement is not needed.
BACKGROUND
On August 20, 2019, the City Council approved a consulting services agreement with Rincon Consultants, Inc. and a reimbursement agreement with the project developer for CEQA environmental review of a proposed development project to be located at 100-132 N. Catalina Avenue. As part of the original scope of work, Rincon Consultants began preparing a Draft Initial
H.11., File # 22-3790 Meeting Date: 3/1/2022
Avenue. As part of the original scope of work, Rincon Consultants began preparing a Draft Initial Study/Mitigated Negative Declaration (IS/MND). Additional time was needed, and the original contract term was extended under the first contract amendment approved by City Council on June 16, 2020.
The IS/MND included a traffic analysis. The traffic analysis resulted in a significant impact on vehicle miles traveled, which triggered a full EIR. Rincon Consultants submitted a proposal for preparation of the EIR, which included the IS (already prepared), a Notice of Preparation, a Scoping Meeting, an Administrative Draft EIR (including project alternatives and additional traffic analysis), a Notice of Completion, a Notice of Availability, and completion of the Final EIR (with Response to Comments, a Mitigation Monitoring and Reporting Program, and a Statement of Overriding Considerations).
Amendments to the Rincon contract and developer reimbursement agreement were approved by City Council on February 2, 2021, to incorporate the additional EIR scope and costs.
All costs associated with the project’s environmental review are fully reimbursed by the project developer, Catalina Fund, LLC, subject to the terms of the reimbursement agreement. The reimbursement includes the EIR preparation by Rincon and review by the City’s legal consultant, Best Best Kreiger. The additional $14,800 in reimbursement will be paid within 14 days of amendment approval.
The proposed development is a mixed-use, density bonus project with 4 affordable housing units (very low income) and 26 market rate units. The project involves removal of a commercial building and portions of others. Four existing non-residential buildings that are contributors to a potential historic district will be adaptively reused, with the former lodge building repurposed for residential use. Approximately 3,000 square feet of non-residential space will be retained for a food and beverage sales use. The applicant requests three incentives/concessions, consisting of lot consolidation, 3-story buildings, and mixed-use zoning (for the adaptive reuse of the historic buildings).
COORDINATION
Preparation of the contract amendments have been coordinated with the City Attorney’s Office.
FISCAL IMPACT
All prior and additional contract costs for the EIR are fully reimbursed to the City pursuant to the terms contained within the amended reimbursement agreement with the project developer.
City staff time is part of the Planning Division annual work product, a portion of which is funded by entitlement application fees reflected in the City’s Master Fee Schedule.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
Fourth Amendment to Agreement Rincon Consultants, Inc.
Second Amendment to Reimbursement Agreement Catalina Fund, LLC Third Amendment to Agreement with Rincon Consultants, Inc. December 14, 2021 Second Amendment to Agreement with Rincon Consultants, Inc. February 2, 2021 First Amendment to Reimbursement Agreement with Catalina Fund, LLC February 2, 2021
H.11., File # 22-3790 Meeting Date: 3/1/2022
First Amendment to Agreement with Rincon Consultants, Inc. June 16, 2020 Original Agreement Rincon Consultants, Inc. August 20, 2019 Original Reimbursement Agreement Catalina Fund, LLC August 20, 2019