Agenda Item No. 22
CITY OF YUCAIPA
AGENDA REPORT
TO: Honorable Mayor and City Council p
FROM: Fermin Preciado, Director of Development Services/City Engineer(• Benjamin J. Matlock, Planning Manager/City Planner -3 K, FOR: City Council Meeting of August 8, 2022
SUBJECT: Yucaipa Freeway Corridor Specific Plan Update
RECOMMENDATION:
That City Council:
1) Approve and authorize the Mayor to execute Amendment No. 1 to the Professional Services Agreement with P1aceWorks, of Santa Ana, in the increased amount of $290,205 for a total amount of $655,024 and approve the amount of $36,000 for contract contingency for a total budget in the amount of $691,024 to provide professional services for the preparation of the Freeway Corridor Specific Plan Update Subsequent Environmental Impact Report; and 2) Amend the Fiscal Year 2022-2023 Annual Operating budget to authorize a budget transfer of $248,413 in the form of a loan to the Yucaipa Freeway Corridor Specific Plan Project in the Capital Project Fund (Fund 35), from the FY2021/2022 Budget Surplus (Net Revenues) where future development fee revenue related to this project will be received and repay the loan; and
3) Amend the Fiscal Year 2022-2023 Capital Improvement Program Budget in the Capital Projects Fund (Fund 35) to increase expenditures in the Yucaipa Freeway Corridor Specific Plan Project by $748,413; and,
4) Authorize the City Manager or his designee to administer the terms of the Agreement.
BACKGROUND:
The Freeway Corridor Specific Plan (FCSP) area includes the largest undeveloped area in Yucaipa, comprised of 1,242 acres of land, and is poised to capture a portion of the regional demand for commercial and residential uses. Its original intent was to provide job growth opportunities for the community and was one of the key strategies for providing housing opportunities that could meet the Regional Housing Needs Assessment (RHNA) during prior housing cycles. The existing FCSP was originally developed in FY2007/2008, right before the economic recession that resulted in dramatic changes to the retail and commercial industry. Since the adoption of the FCSP, the City has also -342-
Freeway Corridor Specific Plan SEIR Amendment No. 1
City Council Meeting of August 8, 2022
completed a comprehensive General Plan update, which was adopted in 2016. In total, these changes, along with feedback from property owners within the FCSP, indicate that the current plan is deficient in a variety of areas that effectively hinder the ultimate development and potential community benefits of the site.
To help address the development potential and viability of the FCSP area, the City applied for and was awarded several grants from Southern California Association of Governments (SCAG) that have been combined to complete an update to the plan (Project). The first study session regarding the update to the FCSP was presented at the regular City Council Meeting of June 14, 2021. Following that discussion, a second study session was held during the City Council Meeting of September 27, 2021 that helped refine the development requirements as the draft Land Use Plan is developed for the FCSP.
At the City Council meeting of March 28, 2022, the City Council then reviewed the draft Land Use Plan and directed that the Project continue to move forward. During that meeting, Council also 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 was 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. At the City Council Meeting of June 27, 2022, an agreement was executed 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 SEIR effort is now underway; however, a few additional elements are necessary to complete the required efforts, including utility infrastructure assessments, an analysis of Level of Service traffic impacts, and a Health Risk Assessment. In addition, a new industrial project related to construction services was submitted on July 27, 2022, that will also need to be incorporated into the project -level review element of the EIR as this Project will be deemed complete sometime after the Notice of Preparation for the SEIR occurs. As such, they will fall under the SEIR process, and therefore will also be subject to the fair share requirements.
DISCUSSION:
The budget for the Professional Services Agreement that was recommended and ultimately approved by the City Council for Placeworks efforts on the SEIR had included a scaled down number to allow for an opportunity to review the required efforts and ultimately create an appropriate share of costs with existing project applicants, as portions of the environmental efforts are to create the programmatic level of review for the overall Specific Plan area, as well as a project level of review for the individual entitlements submitted. In addition, during the Land Use Plan discussion at the March 28, 2022, study session, Council noted that maintaining an appropriate Level of Service (LOS) -343-
Freeway Corridor Specific Plan SEIR Amendment No.
City Council Meeting of August 8, 2022
at the traffic intersections within and around the plan area was important. Pursuant to Senate Bill 743, LOS is no longer an environmental review topic under CEQA but is an effort that can be added and tied into the overall traffic analysis for the Project. With consideration of these various elements, Amendment No. 1 to the Professional Services Agreement would authorize these necessary elements to address the environmental impacts and relevant topics of concern. With the amendment, the Professional Services Agreement would be increased amount of $290,205 for a total amount of $655,024 and approve the amount of $36,000 for contract contingency for a total budget in the amount of $691,024. It should be noted that the wildfire assessment previously listed in the proposed Placework's scope has been transferred to the existing agreement with Dudek as a result of cost savings for the biological review efforts for this Project.
FISCAL IMPACT:
The preparation for the FCSP has been funded through competitive grants that was awarded to the City by SCAG, which has reduced the Capital Fund/property owner costs for the efforts. At the City Council meeting of January 24, 2022, Council approved the transfer of $400,000 in FY2020/2021 Net Revenues from the General Fund to the Freeway Corridor Specific Plan Project in the City's Capital Projects Fund (Fund 35) for these required professional services.
The total estimated cost for the required professional services identified in the proposed agreements is in the amount of $1,148,413. The funding for the Project includes the $400,000 previously approved for the Project and the amount of $500,000 already collected from a developer for this effort. In addition, staff is recommending Council authorize a budget transfer in the amount of $248,413 in the form of a loan to the Yucaipa Freeway Corridor Specific Plan Project from the FY2021/2022 Net Revenues toward future projects' participation. The current estimated FY2021/2022 Net Revenues is in the amount of $340,991. As a result there is sufficient funding available to accommodate staff s recommendation.
The individual property owners and/or developers of the properties within the Freeway Corridor Specific Plan area will be responsible for their "fair share" cost of the professional environmental review services applicable to their specific development projects and included in the proposed contracts. The cost of the services for each individual project will be identified and reimbursed to the City through a Fair Share/Reimbursement Agreement between the City and the individual property owners/developers. These future revenues will be received and used to repay the proposed loan to fund this effort.
Attachments: Professional Services Agreement Amendment No. 1 Approved by:
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AMENDMENT NO. 1 TO "FREEWAY CORRIDOR SPECIFIC PLAN SEIR" THIS AMENDMENT, made and entered into this 811 day of August, 2022, by and between Placeworks, hereinafter called "CONSULTANT," and City of Yucaipa, a municipal corporation, hereinafter called "City",
NOW, THEREFORE, CONSULTANT and CITY mutually agree as follows:
Subject to the terms and conditions of the original agreement dated March 28, 2022, between subject CONSULTANT and the City of Yucaipa, Amendment No. 1 to original agreement shall be as follows for the additional contract design services.
Original Agreement Amount $400,819
Amendment No. 1 $290,205
Revised Agreement Amount $691,024
CITY Fee and Payment Thereof
The CITY will pay the CONSULTANT for services rendered in the total amount NOT TO EXCEED $691,024 for the additional work required to complete the environmental review, including focused elements related to individual projects proposed in the Specific Plan, additional efforts for infrastructure design related to the Specific Plan, and including an analysis of Level of Service impacts.
IN WITNESS WHEREOF, the parties hereto have executed this agreement on the 8th day of August, 2022.
Consultants Name
Date
City of Yucaipa
Authorized Agent for City
Date
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