City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Ken Zuidervaart, Planning Director
Date: 07/08/2025
Subject: Lawson Drayage, Inc. Reimbursement Agreement
RECOMMENDED ACTION:
Approve and authorize the Mayor to sign the Reimbursement Agreement with Lawson Drayage Inc. to ensure the City is reimbursed for staff time and CEQA consultant costs associated with processing an application to operate an industrial storage yard focused on the handling, storage, and logistical coordination of large-scale battery energy storage systems (BESS), including Tesla Megapack units, and other heavy industrial equipment at 222 and 350 East Fourth Street.
BACKGROUND:
Lawson Drayage Inc. has submitted an application to operate an industrial storage yard at 222 and 350 East Fourth Street. The proposed facility will focus on the handling, storage, and logistical coordination of large-scale battery energy storage systems (BESS), including Tesla Megapack units, as well as other heavy industrial equipment.
Given the complexity and potential environmental impacts of the proposed project, the City is required to conduct a thorough review in compliance with the California Environmental Quality Act (CEQA). This review necessitates significant staff time and the engagement of specialized CEQA consultants.
DISCUSSION:
To ensure that the City’s General Fund is not impacted by the costs associated with processing this application, staff has negotiated a reimbursement agreement with Lawson Drayage Inc.
Under this agreement, the applicant will reimburse the City for:
All staff time dedicated to the review and processing of the application Costs incurred for CEQA consultants and any related technical studies This approach is consistent with City policy for projects that require significant staff and consultant resources beyond routine permitting. The agreement ensures transparency and fiscal responsibility by requiring the applicant to bear the full cost of processing their application, including environmental review.
FISCAL IMPACT:
There is no net fiscal impact to the City’s General Fund. All costs incurred by the City for staff time and CEQA consultant services related to this application will be reimbursed by Lawson Drayage Inc. per the terms of the agreement.
Attachments:
1. Reimbursement Agreement - Lawson Drayage, Inc.