Administrative
Report
H.13., File # 23-5779 Meeting Date: 4/4/2023
To: MAYOR AND CITY COUNCIL
From: BRANDY FORBES, COMMUNITY DEVELOPMENT DIRECTOR
TITLE
APPROVE THE SEVENTH AMENDMENT TO THE AGREEMENT WITH RINCON CONSULTANTS, INC. FOR ENVIRONMENTAL REVIEW SERVICES FOR A PROPOSED DEVELOPMENT PROJECT TO BE LOCATED AT 100-132 N. CATALINA AVENUE FOR AN ADDITIONAL $20,668 FOR A NEW TOTAL NOT TO EXCEED AMOUNT OF $232,417 AND TO EXTEND THE TERM THROUGH SEPTEMBER 30, 2023
APPROVE THE FOURTH AMENDMENT TO THE REIMBURSEMENT AGREEMENT WITH CATALINA FUND, LLC. FOR THE REIMBURSEMENT OF CITY COSTS RELATED TO THE ENVIRONMENTAL REVIEW OF THE PROPOSED DEVELOPMENT PROJECT AT 100-132 N.
CATALINA AVENUE FOR AN ADDITIONAL $20,668 FOR A NEW TOTAL NOT TO EXCEED AMOUNT OF $278,142
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 development project to be located at 100-132 N. Catalina Avenue. There have been six (6) previous amendments to the original contract for additional scope of work and term extensions to enable further analysis required for the IS/MND.
The project has undergone five public hearings, one by the Preservation Commission, four by the Planning Commission, and one by the City Council.
This seventh amendment is for the consultant to perform additional traffic analysis work and attend additional public meetings for a revised project. The expanded scope will cost the City an additional $20,668 and will be fully reimbursed under the terms of the proposed fourth amendment to the reimbursement Agreement with the project developer, Catalina Fund, LLC.
BACKGROUND
The proposed development is a mixed-use, density bonus project with affordable and 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 would be adaptively reused, with a former lodge building repurposed for residential use. Approximately 3,000 square feet of non-residential space would be retained for a food and beverage sales use.
The proposed project required preparation of environmental documents under the California
H.13., File # 23-5779 Meeting Date: 4/4/2023
The proposed project required preparation of environmental documents under the California Environmental Quality Act (CEQA), for which a contract with Rincon Consultants, Inc. was approved by City Council on August 20, 2019.
To date, the project has required five (5) public hearings between the Preservation Commission, Planning Commission and City Council. During that time, the scope of the CEQA review was expanded, requiring contract amendments for additional work and term extensions. Additional costs were fully reimbursed by respective amendments to the City’s reimbursement Agreement with the project developer.
Subsequent to the last City Council hearing, which took place on January 24, 2023, the developer has filed a revised project to be considered by the Planning Commission. The project revision required additional CEQA analysis, which will be covered by the proposed contract amendment.
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 with the City.
The reimbursement Agreement includes the EIR preparation by Rincon and review by the City’s legal consultant, Best Best & Kreiger.
COORDINATION
The contract amendments have been prepared by the City Attorney’s Office.
FISCAL IMPACT
All prior and additional contract costs for the EIR are covered by the reimbursement Agreement with the project developer. City staff time spent evaluating the project is part of the Planning Division’s annual work product, which is funded by entitlement application fees reflected in the City’s Master Fee Schedule.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Seventh Amendment Rincon Consultants, Inc.
· Fourth Amendment Reimbursement Agreement Catalina Fund, LLC. · Sixth Amendment Rincon Consultants, Inc., December 13, 2022 · Fifth Amendment Rincon Consultants, Inc., July 5, 2022 · Third Amendment Reimbursement Agreement Catalina Fund, LLC., July 5, 2022 · Fourth Amendment Rincon Consultants, Inc., March 1, 2022 · Second Amendment Reimbursement Agreement Catalina Fund, LLC., March 1, 2022 · Third Amendment Rincon Consultants, Inc., December 14, 2021 · Second Amendment Rincon Consultants, Inc., February 2, 2021 · First Amendment Reimbursement Agreement Catalina Fund, LLC., February 2, 2021 · First Amendment Rincon Consultants, Inc., June 16, 2020 · Original Contract Rincon Consultants, Inc., August 20, 2019 · Original Reimbursement Agreement Catalina Fund, LLC., August 20, 2019
H.13., File # 23-5779 Meeting Date: 4/4/2023