Agenda Item No. 21
CITY OF YUCAIPA
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Fermin Preciado, Director of Development Services/City Engineer Benjamin J. Matlock, Planning Manager/City Planner)K&-
FOR: City Council Meeting of June 27, 2022
SUBJECT: Freeway Corridor Specific Plan EIR Cost Share
RECOMMENDATION:
That City Council review and approve the Fair Share/Reimbursement Agreement between the City and the individual property owners/developers of the properties within the Freeway Corridor Specific Plan area as part of the requirement for them to pay for their fair share of the cost of the professional services to prepare the Subsequent Environmental Impact Report.
DISCUSSION:
At the City Council meeting of March 28, 2022, the City Council approved a Professional Services Agreement with PlaceWorks, of Santa Ana, CA, in the total amount of $400,819, and with Dudek in the amount of $447,694 in order to provide the necessary professional services in the preparation of a Subsequent Environmental Impact Report of the Freeway Corridor Specific Plan to provide the necessary environmental review for the Freeway Corridor Specific Plan update that is currently being prepared based on Council direction.
As part of the Council action, the formal execution of the contracts is contingent upon the execution of a Fair Share/Reimbursement Agreement between the City and the individual property owners/developers of the properties within the Freeway Corridor Specific Plan area to ensure that they pay for their fair share of the cost of these professional services. Staff has been working with Pacific Industrial, one of the developers who will require that the update to the Specific Plan be completed in order to finalize the Conditional Use Permit application they have submitted within the Specific Plan area. The execution of the Fair Share/Reimbursement Agreement [Memorandum of Understanding (MOU)] will initiate the environmental review efforts for the entire specific plan.
Infrastructure improvements required as part of the future development will be delinated through the Specific Plan policies and appropriate Conditions of Approval, as well as additional deal points that will be refined as part of a future Development Agreement. It should be noted that, as part of the environmental review efforts, staff has worked with Dudek to refine their biological services scope of work to absorb the necessary wildfire assessment for the Project; however, the professional services agreement for Placeworks will need to be adjusted to include traffic and infrastructure -related analysis that was ultimately not a part of the SCAG funded grant for the Specific Plan update, but critical to the overall success of the plan. These costs will ultimately be recuperated through subsequent private development projects.
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Freeway Corridor Specific Plan EIR Cost Share
City Council Meeting of June 27, 2022
Attachment: Draft Memorandum of Understanding
Approved by:
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COST SHARING AGREEMENT
Introduction
This Agreement is entered into between the City of Yucaipa ("City"), and PI Development, LLC ("Developer"), collectively (the "Parties"). The Parties agree to jointly fund an Environmental Impact Report and related CEQA studies for the Freeway Corridor Specific Plan Update, which study shall be conducted by a qualified consultant under contract with the City at the direction of City staff. The scope of work will include a program level Environmental Impact Report as required to support amendment to the Freeway Corridor Specific Plan as well as necessary project specific analysis and studies related to the proposed Conditional Use Permit and Tentative Parcel Map proposed by Developer for the project known as Pacific Oaks Commerce Center as referenced in the attached Statement of Work — Exhibit A (hereafter collectively referred to as the "EIR Studies").
The City and Developer hereby agree to share in the cost of the EIR Studies as set forth herein.
The purpose of this Cost Sharing Agreement is to set forth the Parties' agreement with respect to contributions that shall be paid by the City and Developer.
Amount of Cost Sharing
The Parties hereby agree to pay the following amounts to fund the EIR Studies:
Agency Amount
City of Yucaipa $400,000
Developer $589,218
Total $989,218
EIR Studies
contract
amount
Terms
1. Maximum Proposed Study Cost: In the event that any cost over -runs later cause the final total cost of the EIR Studies to exceed the initial contract amount of $989,218.00, then City shall pay 40% of such increased cost and Developer shall pay 60% of such increased cost.
To the extent that the City receives grant funds or other funding or credits applied to offset the costs of the EIR Studies, each Party will receive proportional credit toward its portion of the costs of the EIR Studies as set forth herein, with 40% of the credit to reduce the amount of the City's contribution obligation, and 60% of the credit to reduce the amount of the Developer's contribution obligation.
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Freeway Corridor Specific Plan EIR Studies Cost Sharing Agreement
2. Payment: City will make the progress payments to the consultant in accordance with the provisions of the contract between the City and the consultant on a monthly basis based on actual services provided. Payments to the consultant shall be made with 40% of the funds from the City and 60% of the funds from Developer funds on deposit with the City pursuant to the provisions of this Section 2. Developer provided an initial deposit in the amount of $150,000 towards its share of the funding on March 28, 2022.
Developer shall submit additional deposits in in the minimum amount of $50,000 as determined by the City until the full amount of Developer's obligation (currently $589,218.00) has been deposited with the City. Such additional deposits shall be made by Developer as the project progresses, and before or at the time when the Developer's deposit amount is spent down to $20,000 due to payments to consultant. Developer hereby agrees to make additional deposits with the City for Developer's portion of the cost as set forth above, within 15 days of receipt of notice that the City has spent down the Developer's deposit to $20,000 or less. This same procedure regarding payment by the City and reimbursement to the City from the Developer shall also apply in the event of any cost increases that later cause the final total cost of the EIR Studies to exceed the initial proposed amount. The City shall have the authority to suspend preparation of the EIR Studies if Developer fails to timely submit the deposits required by this Section 2.
3. Termination: This Agreement will remain in effect until the EIR Studies have been completed and all cost sharing commitments have been met provided at any point in the process the EIR Studies show that the Developer's proposed project is not feasible or Developer desires to terminate its entitlement application, Developer shall have the right to notify City of its intent to terminate the agreement with 30 day notice.
Developer shall be obligated to fund its share of all costs incurred through the termination date.
4. Notices: Any notice required or permitted to be given under this agreement shall be in writing and may be given by personal delivery or by U.S. Postal Service mail. Notice shall be deemed given upon actual receipt in the case of personal delivery or within three (3) business days after mailing. The address for service of notices for each party is set forth adjacent to the signatures below. Each party may change its address for service of notices by providing written notice to the other party.
5. No Waiver: The wavier or failure of any party to exercise, in any respect, any right provided in this Agreement shall not be deemed a waiver of any other right or remedy to which the party may be entitled.
6. Integrated Agreement: The terms and conditions set forth herein constitute the entire agreement between the Parties as to the matters set forth herein and supersede any communications or previous agreements with respect to the subject matter of this Agreement. There are no written or oral understandings directly or indirectly related to this Agreement that are not set forth herein. No change can be made to this Agreement other than in a writing signed by the Parties.
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Freeway Corridor Specific Plan EIR Studies Cost Sharing Agreement
7. Governing Law and Venue: The Parties agree that any action to interpret or enforce this Agreement shall be governed and enforced according to the laws of the State of California and any dispute under this Agreement shall be brought in the Superior Court in and for the County of San Bernardino.
8. Attorney Fees: If any party hereto brings any legal action regarding the interpretation or enforcement of this Agreement, the prevailing party shall be entitled to recover its reasonable attorney fees from the non -prevailing party in the litigation, in addition to any other relief that may be granted.
9. Severability: If any term or provision of this Agreement is held by a court to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term or provision had never been included.
10. EIR Studies Content: The City, in its role as the lead agency pursuant to the California Environmental Quality Act shall have the sole responsibility and authority to oversee the consultant's preparation of the EIR Studies, and nothing in this Agreement shall be interpreted to provide any authority for Developer to influence or direct the Consultant's work, documentation, or conclusions, however the City may, in its sole discretion consider input Developer may provide in the course of the preparation of the EIR Studies.
[SIGNATURES APPEAR ON THE FOLLOWING PAGES]
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Freeway Corridor Specific Plan EIR Studies Cost Sharing Agreement
The City of Yucaipa agrees to make the payments identified above and will comply with the terms of this Agreement.
City of Yucaipa
By: Raymond Casey
Title: City Manager
Date:
City of Yucaipa
Ray Casey, City Manager
34272 Yucaipa Blvd
Yucaipa, CA, 92399
Telephone: (909) 797-2489
Email: [email protected]
The Developer agrees to make the payments identified above and will comply with the terms of this Agreement.
PI Development, LLC
By: Dan Floriani
Title: Co -Founder
Date: 5t27/2022
PI Development LLC
6272 E Pacific Coast Highway, Suite E
Long Beach, CA 90803
Telephone: (949) 422-9294
Email: [email protected]
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