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Home My WebLink AboutE-17 Staff Report - Amended PSA with MIG and Reimbursement AgreementCONSENT ITEM E-17 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MATT MARQUEZ, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: AUGUST 19, 2019 SUBJECT: REQUEST TO AMEND PROFESSIONAL SERVICES AGREEMENT WITH MOORE, IACOFANO, AND GOLTSMAN (MIG) CONSULTANTS TO PROVIDE PLANNING AND ENVIRONMENTAL CONSULTANT SERVICES FOR THE CONSOLIDATED READY MIX PROJECT LOCATED AT 162 N. ASPAN AVENUE AND TO AMEND REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF AZUSA AND THE APPLICANT OF THE PROPOSED PROJECT, CONSOLIDATED READY MIX, LLC SUMMARY: On March 28, 2018, the City authorized the City Manager to enter into a Professional Services Agreement with MIG for planning and environmental services for the Consolidated Ready Mix project located at 162 N. Aspan Ave., Azusa, CA 91702. The term of the agreement was until completion of the project, with the ability to extend the agreement by mutual consent. The consultants, MIG, submitted an Authorization for Additional Services (AAS) on July 22, 2019, to request an increase of service fees from $67,790 to $118,990.00, for an additional request of monies to total $43,000.00 with an option of $8,200.00 for Additional Work. On March 19, 2018, the City Council authorized the City Manager to enter into a Reimbursement Agreement with Consolidated Ready Mix, LLC, the applicant for the proposed project located at 162 N. Aspan Ave., Azusa, CA 91702. The term of the agreement was until completion of the project, with the ability to exceed the estimated costs so long as the City consults with the applicant prior to amending any scope of services to be provided by the consultants. As such, the amended Reimbursement Agreement will ensure that the City will be reimbursed by the applicant for the consultant’s compensation. RECOMMENDATION: Staff recommends that the City Council take the following actions: 1)Approve a Professional Services Agreement Amendment with MIG to provide planning and environmental services for the Consolidated Ready Mix project in an amount not to exceed $118,990.00; and APPROVED CITY COUNCIL 8/19/2019 Amend Professional Services Agreement with MIG & Amend Reimbursement Agreement with Consolidated Ready Mix, LLC August 19, 2019 Page 2 2) Approve a Reimbursement Agreement Amendment between the City and the applicant, Consolidated Ready Mix, LLC, to reflect the amended PSA amendment terms; and 3) Authorize the City Manager to prepare and execute the agreement, in a form acceptable to the City Attorney, on behalf of the City. ANALYSIS: MIG has provided planning and environmental services for the Consolidated Ready Mix project since March 28, 2018 which includes a Use Permit application, Minor Use Permit application, and Initial Study/Mitigated Negative Declaration environmental document preparation. The consultants are citing the complexity of the project and unanticipated additional work tasks as the reason for the increase of the service fees. Below is a timeline of the project: 1. August 31, 2017 – City staff received complaint of an illegal cement operating business at 162 N. Aspan Avenue. City staff conducted a field inspection and confirmed the illegal cement operating business. The operator was instructed to cease all operation and obtain all the required permits from the Planning Division. 2. September 27, 2017 – Planning Commission conducted a Public Hearing for a Use Determination/Interpretation Request to classify the proposed dry mix batch plant as a “Manufacturing/Processing – Medium Intensity” use. The Planning Commission approved the request. 3. December 6, 2017 – City of Azusa issues a Notice of Violation - Code Enforcement Issues. 4. December 13, 2017 – City issued first Cease and Desist Letter to the operator of Consolidated Ready Mix based on various filed inspection dated on September 11, 2017, October 30, 2017, November 16, 2017, December 5, 2017 and December 17, 2017. 5. December 14, 2017 - Planning Application, Environmental Information Form, Use Permit, and Minor Use Permit Application submitted to the City of Azusa. 6. April 17, 2018 – Environmental review documentation process is initiated 7. April 2018 – Present – Environmental Information Form, Project Application, applicant provided Technical Studies undergo revisions 8. May 3, 2018 – City of Azusa issues a second Cease and Desist Letter. 9. July 12, 2018 – Design Review Committee meeting convened. 10. July 25, 2018 – Planning Commission meeting convened. Community Meeting/Workshop conducted. Participants informed of the project, anticipated project design, and forthcoming technical reports. Planning Commission directed a second Community Meeting/Workshop be conducted upon completion of all technical reports. Amend Professional Services Agreement with MIG & Amend Reimbursement Agreement with Consolidated Ready Mix, LLC August 19, 2019 Page 3 11. August 14, 2019 – Second Planning Commission Community Meeting/Study Session. FISCAL IMPACT: The consultant’s compensation is not to exceed $118,990.00, for an additional request of monies to total $43,000.00 with an option of $8,200.00 for Additional Work. Funds for this contract would be from the project applicant’s Trust 50 account. The proposed recommendations have no fiscal impact to the General Fund. The consultant’s cost will be reimbursed through the developer’s trust account 50-35- 611-000-2719. Prepared by: Reviewed by: Robert (Dean) Flores Manuel Muñoz Assistant Planner Planning Manager Reviewed by: Fiscal Reviewed by: Matt Marquez Talika M. Johnson Director of Economic and Community Development Director of Finance Reviewed and Approved by: Sergio Gonzalez City Manager Attachments: 1)Professional Service Agreement Amendment with MIG 2) MIG Authorization for Additional Services (AAS) 3) Reimbursement Agreement with Consolidated Ready Mix, LLC CITY OF AZUSA AMENDED PROFESSIONAL SERVICES AGREEMENT 1. PARTIES AND DATE. This amended Agreement is made and entered into this 19th day of August, 2019 by and between the City of Azusa, a municipal corporation organized under the laws of the State of California with its principal place of business at 213 East Foothill Boulevard, Azusa, California 91702 (“City”) and MIG, a Limited Liability Company, with its principal place of business at 537 S. Raymond Avenue, Pasadena, CA 91105 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.” Attachment 1 Professional Service Agreement Amendment for MIG Consolidated Ready Mix – 162 N. Aspan Avenue Page 2 of 3 3.3 Fees and Payments. 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall be based on the consultant’s compensation rate and shall not exceed $118,990.00, for an additional request of monies to total $43,000.00 with an option of $8,200.00 for additional work without written approval of the City Manager. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement. Amended Professional Service Agreement for MIG Consolidated Ready Mix – 162 N. Aspan Avenue Page 3 of 3 CITY OF AZUSA MIG By: By: Sergio Gonzalez, City Manager Name: Attest: Title: Jeffrey Cornejo, City Clerk Approved as to Form: Best Best & Krieger LLP Marco Martinez, City Attorney Attachment 2 AMENDED REIMBURSEMENT AGREEMENT Between CITY OF AZUSA a California municipal corporation and CONSOLIDATED READY MIX LLC A Nevada limited liability company Attachment 3 Amended Reimbursement Agreement with Consolidated Ready Mix LLC August 19, 2019 Page 2 of 4 REIMBURSEMENT AGREEMENT This amended Reimbursement Agreement (this "Agreement") is made this 19th day of August, 2019, by and between the City of Azusa, a California municipal corporation (the "City"), and CONSOLIDATED READY MIX LLC, a Nevada limited liability company (the "Applicant" and together with the City, occasionally, each a “Party” and collectively the “Parties”). Amended Reimbursement Agreement with Consolidated Ready Mix LLC August 19, 2019 Page 3 of 4 SIGNATURE PAGE TO REIMBURSEMENT AGREEMENT CITY OF AZUSA a California municipal corporation By: ____________________________________ City Manager ATTEST: By: ___________________________ City Clerk APPROVED AS TO FORM: ________________________________ City Attorney Consolidated Ready Mix LLC, a Nevada limited liability company By:_____________________________ Rondell Fletcher, Owner Amended Reimbursement Agreement with Consolidated Ready Mix LLC August 19, 2019 Page 4 of 4 EXHIBIT B ESTIMATES COSTS FOR EACH CONSULTANT MIG (PLANNING & ENVIRONMENTAL) MIG’s current published rates for a total estimated amount of $118,990.00. BEST BEST & KRIEGER LLP (LEGAL) Standard private rates per attorney (minus 10% discount) for a total estimated amount to be determined. OTHER CONSULTANTS To be determined.