Administrative
Report
H.5., File # 22-5207 Meeting Date: 12/13/2022
To: MAYOR AND CITY COUNCIL
From: BRANDY FORBES, COMMUNITY DEVELOPMENT DIRECTOR
TITLE
APPROVE A SIXTH AMENDMENT TO THE AGREEMENT WITH RINCON CONSULTANTS, INC.
FOR ENVIRONMENTAL REVIEW SERVICES FOR A PROPOSED NEW DEVELOPMENT PROJECT LOCATED AT 100-132 N. CATALINA AVENUE TO EXTEND THE TERM THROUGH MARCH 31, 2023 AT NO ADDITIONAL COST
EXECUTIVE SUMMARY
The City entered into an agreement with Rincon Consultants, Inc. (Rincon Consultants) on August 20, 2019 to prepare CEQA environmental review documents for a proposed new development project to be located at 100-132 N. Catalina Avenue. Five amendments to the original contract have occurred to extend the term and provide for additional costs related to an expanded scope of environmental review.
All contract costs have been fully reimbursed by the project developer, Catalina Fund, LLC., per the terms of a reimbursement agreement.
The fifth amendment with Rincon expired on September 30, 2022, and work was completed by September 15, 2022, the time the Planning Commission rendered a decision on the project.
However, the decision of the Planning Commission has been appealed to the City Council. The City Council public hearing for the project is scheduled for January 24, 2022.
The sixth amendment will extend the Rincon Consultants contract through March 31, 2023, to cover the time needed for City Council consideration of the project. No additional funding is requested, as there are remaining funds in the existing contract amount to cover the costs associated with the City Council appeal process.
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 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
H.5., File # 22-5207 Meeting Date: 12/13/2022
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 to incorporate additional EIR work 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 Rincon Consultants contract cost and project legal review performed by Best Best Kreiger.
The proposed development is a 30-unit, mixed-use, density bonus project with 5 affordable housing units (4 very-low income, 1 moderate-income) and 25 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 has requested three density bonus incentives/concessions, consisting of lot consolidation, 3-story buildings and a Variance of commercial parking standards for the adaptive reuse of the historic commercial buildings.
COORDINATION
The City Attorney’s Office has prepared the contract amendment.
FISCAL IMPACT
There is no additional cost for extending the term of the contract. All contract costs for the EIR are fully reimbursed to the City pursuant to the reimbursement agreement with the project developer.
There are remaining funds from the fourth contract amendment with Rincon to cover the services needed for the City Council appeal process.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Sixth Amendment to Agreement with Rincon Consultants, Inc. · Fifth Amendment to Agreement Rincon, July 5, 2022
· Third Amendment to Reimbursement Agreement with Catalina Fund, LLC July 5, 2022 · Fourth Amendment to Agreement Rincon, March 1, 2022
· Second Amendment to Reimbursement Agreement Catalina Fund, March 1, 2022 · Third Amendment to Agreement Rincon, December 14, 2021 · Second Amendment to Agreement Rincon Consultants, February 2, 2021 · First Amendment to Reimbursement Agreement Catalina Fund, February 2, 2021 · First Amendment to Agreement Rincon, June 16, 2020
· Original Agreement Rincon, August 20, 2019
· Original Reimbursement Agreement Catalina Fund, September 2, 2019