HomeMy WebLinkAboutC- 5 Monrovia Growers\..V1YJLIY I \.lILLIY LiII\
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROY BRUCKN0#ECTOR OF COMMUNITY DEVELOPMENT
VIA: RICK COLE, CITY MANAGER w•
DATE: JULY 1, 2002
SUBJECT: APPROVAL OF A "FORM" REIMBURSEMENT AGREEMENT FOR CONSULTING
SERVICES IN CONNECTION WITH MONROVIA GROWERS, JAR -UNIVERSITY
COMMONS, AND AZUSA PACIFIC UNIVERSITY.
RECOMMENDATION
It is recommended that the City Council approve the "Form" Reimbursement Agreement for use in
projects being proposed by Monrovia Growers, Azusa Pacific University and JAR -University Commons
LLC, and authorize the City Manager to execute on behalf of the City.
BACKGROUND
Several major projects with similar time schedules are currently in progress. Their public hearing
schedules are anticipated to converge towards the end of the year/early next year. These major projects
include the General Plan Update, Monrovia Nursery Specific Plan, Azusa Pacific University Specific Plan,
and University Commons (Foothill Shopping Center). With the exception of the City's General Plan,
which is funded by the City, the remaining projects require consulting services that should be performed
under the auspices of the City, but which need to be reimbursed by the applicant. These services
include the following consultants: Environmental Impact Analysis, Project Management, Fiscal Impact
Analysis, Traffic Engineering/Planning, and Legal advice. The Reimbursement Agreement provides for the
City to retain the consultants, and for the Applicants to reimburse the City for the associated costs.
There is a provision in the Agreement for an upfront deposit for the consultant services.
As the Council will note, there are blanks in the Form Agreement with respect to consulting firms, scopes
of work, and fee schedules. Because the City still needs to undertake RFP processes for some of the
consulting services, (with others already having been retained), these will be added to the Agreement
when particulars become known. As part of this action, the City Council is asked to authorize the City
Manager to make these future additions to the Agreements.
FISCAL IMPACT
No fiscal impact will be created, because the Reimbursement Agreements require upfront deposits from
the applicants, and require Applicants to pay for the cost of the needed consultants.
W'W
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REIMBURSEMENT AGREEMENT
between
THE CITY OF AZUSA,
a municipal corporation
and
MONROVIA GROWERS CORPORATION}
a California corporation
REIMBURSEMENT AGREEMENT
This Reimbursement Agreement ("Agreenieiit") is made this 30th day of September,
2002, by and between the City of Azusa, a municipal corporation (the "City"), and Monrovia
Growers, a California corporation (the "Developer").
R'P CTT A T .0
This Agreement is made with respect to the following facts:
A. The Developer is the owner of that certain real property ("Property") located
within the City of Azusa, County of Los Angeles, California. The Property is more particularly
described in the legal description attached hereto as Exhibit "A."
B. The Developer is contemplating the development of the Property as a primarily
residential community ( "I roject"). The Developer has submitted an application ("Project
A ppIication") for various discretionary land use approvals for the development of the Property}
including, without limitation, approval of a specific plan, environmental documents pursuant to
the California Environmental Quality Act ("CEQA") and the amendment of the City's General
Plan and Zoning Code. The Developer may also request the City to provide public financing to
assist the Developer in developing the infrastructure for the Property.
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C. To provide the City with the environmental, planning, fiscal, traffic and legal
advice and information necessary to the City's review process concerning the proposed Project
and the processing of the Project Application, including the possible provision of financial
assistance (collectively, "Review Process"), it is necessary for the City to retain the services of a
CEQA consultant, a project land use planner, a fiscal consultant, a traffic planner and special
legal counsel (collectively, "Consultams" and, individually, "Consultant").
D. As a condition to the City's completion of the Review Process, the Developer has
agreed to reimburse the City for the Consultants costs and expenses related to the City's Review
Process in the manner and amounts set forth in this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the following mutual promises and agreements,
City and Developer agree as follows;
1. Incorporation of Recitals. The parties agree that the Recitals constitute the factual
basis upon which the City and the Developer have entered into this Agreement. The City and the
Developer each acknowledge the accuracy of the Recitals and agree that the Recitals are
incorporated into this Agreement as though fully set forth at length.
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2. City to Retain Consultants. As a necessary and indispensable part of its fact
finding relating to the Review Process for the proposed Project, and the possible provision of
financial assistance to the Developer, the City shall retain, by means of contracts ("Consultant
C'ow acts"), subject to the City's approval in its reasonable discretion, the services of the
Consultants set forth in Section 4 of this Agreement to provide such CEQA, fiscal, planning,
public information, traffic and legal advice relating to the proposed Project and the processing of
the Project Application as the City may deem necessary in its sole and absolute discretion,
including, but not limited to, services necessary for the completion of a water supply assessment
required pursuant to Public Resources Code Section 21151.9, commonly known as SB 610. The
identity of the Consultants employed shall be as determined by the City in its sole and absolute
discretion. The identity, the scope of work, the budget ("Consultant Budget") and the schedule
("Consultant Schedule") for each respective Consultant are attached hereto as Exhibits `B" - "F."
Except for the Consultant Contract for Legal Counsel, the Developer shall receive from the City
copies of all proposed Consultant Contracts not less than five (5) business days prior to the
approval thereof by the City. The City reserves the right, in its sole and absolute discretion, to
amend the scope of work as it deems necessary and appropriate. The City shall notify Developer
in writing of any proposed amendment to a Consultant Contract, including the scope of work, the
reason or basis for the proposed amendment and the effect thereof on the Consultant Budget and
the Consultant Schedule, at least ten (10) business days prior to the approval thereof by the City.
At the Developer's request, the City shall meet and confer with the Developer regarding the
proposed Consultant Contracts, or any proposed amendment thereof, at least five (5) business
days prior to the approval thereof by the City.
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The Developer agrees that, notwithstanding the Developer's reimbursement obligations
under this Agreement, the Consultants selected by the City shall be the contractors exclusively of
the City and not of the Developer. Except for those disclosures required by law including,
without limitation, the Public Records Acts, all conversations, notes, memoranda,
correspondence and other forms of communication by and between the City and the Consultants
shall be, to the extent permissible by law, privileged and confidential and not subject to
disclosure to the Developer. The Developer agrees that it shall have no claim to nor shall it
assert any right to any reports, correspondence, plans, maps, drawings, news releases or any and
all other documents or work product produced by the Consultants pursuant to the Consultant
Contracts.
3. Developer to Cooperate with Consultants. The Developer agrees to cooperate
fully with the Consultants and to provide all information and other assistance to the Consultants
which is, in the reasonable discretion of the Consultants, necessary for the performance of their
duties pursuant to the Consultant Contracts. The Developer agrees that it will instruct its agents,
employees, consultants, contractors and attorneys to cooperate with the Consultants and to
provide all necessary documents or information requested of them by the Consultants; provided,
however, that the foregoing shall not require the disclosure of any documents or information of
the Developer which by law is privileged, confidential, and exempt from disclosure under the
Public Records Act.
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4. City's Preliminary Selection of Consultants. The City has preliminarily decided
to retain the following as Consultants pursuant to this Agreement:
(i) Environmental Consultant - Terry A. Hayes Associates
(ii) Planning Project Manager — Cotton/Bridges/Associates
(iii) Fiscal Consultant - Kosmont Partners
(iv) Traffic Planner — The Mobility Group
(v) Legal Counsel - Best Best & Krieger LLP.
The Developer agrees that the City may select other Consultants to replace the
Consultants preliminarily identified above and shall notify Developer in writing of any proposed
replacement and the basis therefor not less than five (5) business days prior to the approval of
any such replacement; provided, that Developer's approval of such replacement shall not be
required.
5. Developer's Reimbursement of Consultant Costs and Expenditures. The
Developer shall reimburse the City for one hundred percent (100%) of the actual documented
and reasonable costs and expenditures incurred by the City relative to the Consultants Contracts
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as provided herein, including, but not limited to, all costs and expenditures incurred by the City
or the Consultants for the publication and mailing of notices, agendas and other materials,
copying charges and other administrative expenses associated with the Review Process or the
Project ("Consultants Costs"). The City has preliminarily reviewed the scope of work and the
Consultant Budget and Consultant Schedule required of each Consultant and has estimated the
Consultants Costs for each Consultant to be as set forth in Exhibit "G" attached hereto
("Estimated Consultant Costs").
The City may incur Consultants Costs up to the Estimated Consultant Costs for each
Consultant without consulting the Developer. The City shall provide the Developer with
monthly invoices and descriptions of services rendered by each Consultant with reference to the
Consultant Budget and the Consultant Schedule. The City shall notify in writing and consult
with the Developer as provided herein prior to incurring Consultants Costs which exceed the
Estimated Consultant Costs as to any Consultant ("Excess Costs"); provided, however, that the
Developer's obligation to reimburse the City for Estimated Consultant Costs shall not be
contingent upon, nor shall the right of the City to be reimbursed for Excess Costs in an amount
up to Twenty Thousand Dollars ($20,000.00) be defeated by, the fact that the City did not
consult with and notify the Developer in writing prior to incurring such Excess Costs or that the
Developer has not consented to the incurring of such Excess Costs. The decision to incur Excess
Costs and the amount of Excess Costs to incur shall lie within the sole and absolute discretion of
the City; provided, that the City shall notify the Developer in writing of anticipated Excess Costs
as soon as reasonably practicable and shall provide a revised scope of work, Consultant Budget
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and Consultant Schedule together with any proposed amendment to the Consultant Contract in
order to be reimbursed for Excess Costs exceeding Twenty Thousand Dollars ($20,000.00).
For purposes of this Section 5, the City shall be deemed to have consulted with the
Developer when the City has provided written notice to the Developer that the City reasonably
anticipates that it will incur, or has incurred, Excess Costs, the anticipated amount of such Excess
Costs and a revised scope of work, revised Consultant Budget and Consultant Schedule together
with any proposed amendment to the Consultant Contract. If, after consultation, at a meeting of
representatives of the City and the Developer, the Developer disagrees with the City's incurring
of Excess Costs, then the Developer's sole and exclusive remedy will be to terminate this
Agreement pursuant to Section 9 of this Agreement, subject to the Developer's obligation to
reimburse the City for all Consultants Costs validly incurred by the City prior to the date of
termination, whether or not yet paid by the City.
6. Creation of Segregated Reimbursement Account. Within ten (10) days following
approval of this Agreement- by the City, the Developer shall deposit the sum of Thirty Thousand
Dollars ($30,000.00), which represents that portion of the Estimated Consultant Costs to be
incurred by the Consultants during the first month of the term of this Agreement into a special
segregated account ("Account") for the sole purpose of receiving reimbursement funds from the
Developer pursuant to this Agreement as to Estimated Consultant Costs and Excess Costs. On or
before the first day of each month thereafter, the Developer shall deposit the sum that represents
that portion of the Estimated Consultant Costs to be incurred by the Consultants during the
following month, as determined by the City after consultation with the Consultants. No other
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City funds shall be commingled in the Account. The City shall be the sole authorized signatory
on the Account. The Account shall not be interest bearing.
If there are funds remaining in the Account at the end of each month, then such
remaining funds shall be used to offset Developer's obligation to deposit additional funds into
the Account for the following month. If there are funds remaining in the Account at the end of
the term of this Agreement, as defined in Section 6 of this Agreement, then such remaining funds
shall be returned to the Developer; provided, however, that at all times sufficient funds shall
remain in the Account to reimburse the City for that portion of the Estimated Consultant Costs
and Excess Costs estimated to be incurred during the following month in accordance with all
provisions of this Agreement and no refund to the Developer shall be made under any
circumstances unless and until the City believes, in its reasonable judgment, that all
reimbursement obligations of the Developer under this Agreement have been satisfied.
The City shall be entitled to draw upon the funds in the Account in an amount sufficient
to pay the Consultants the Estimated Consultant Costs or Excess Cost as provided in Section 5 of
the Agreement. The City agrees to use reasonable and customary audit and verification
procedures relative to the payment of City funds and account funds to Consultants.
Within fifteen (15) days following receipt of written demand therefor by the Developer,
the City shall provide the Developer with such reasonable documentation as the Developer may
request to substantiate any withdrawals by the City from the Account.
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Within fifteen (15) days after receipt of written demand therefor by the City, the
Developer shall deposit such additional funds into the Account as the City deems reasonably
necessary to meet the Developer's projected Excess Costs reimbursement obligations as set forth
in Section 5 of this Agreement.
The Developer agrees that its obligations under this Agreement arise independently of the
amount of funds, if any, in the Account. The Developer's obligation to reimburse the City as set
forth in this Agreement shall not be limited or reduced by the amount of funds, if any, in the
Account.
7. City to Retain Absolute Discretion. The Developer acknowledges and agrees
that notwithstanding the Developer's reimbursement obligations under this Agreement, the City
is not obligated to approve any or all of the proposed uses for the Property, to approve any
CEQA documents or general plan or municipal code amendments which may be required for any
of the uses contemplated for the Property, or to approve any development agreement pertaining
to the Property. The Developer warrants and represents that no City official, officer, employee,
agent or attorney has represented, expressly or impliedly, that the City will approve any proposed
use of the Property. The Developer understands that there will be numerous legislative and
adjudicatory decisions made by the City with regard to the development of the Property. All
such decisions of the City with regard to the Property and the contemplated uses of the Property
shall be made only after full compliance with all the City's statutory and other legal obligations
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and after considering all appropriate information and evidence, including such evidence which
may cause the City to disapprove any or all of the contemplated uses of the Property.
Notwithstanding anything in this Agreement to the contrary, the City retains all authority and
discretion granted to it by law to either approve, disapprove or modify any of the proposed uses
of the Property. The Developer agrees that the City may approve, or approve with modifications,
any or all of the Developer's proposed uses of the Property.
The Developer agrees that the City shall not be bound by any recommendations or
conclusions reached by the Consultants and that the City may accept or reject, in whole or in
part, any such recommendations or conclusions.
8. Term. The term of this Agreement shall commence on the date that this
Agreement is executed by the City Manager and shall terminate when all work required by each
Consultant Contract has been completed to the City's reasonable satisfaction and the Developer
has satisfied all of its obligations under this Agreement including, without limitation, the
obligation to reimburse the City for Estimated Consultant Costs and Excess Costs as provided in
Section 5 hereof, whether or not paid by the City prior to the date of termination. The
Developer's obligation to reimburse the City as provided in this Agreement shall survive the
termination of this Agreement pursuant to this Section 8.
9. Early Termination.. The City may terminate this Agreement prior to the term set
forth in Section 8 above, without cost or liability to the City, upon thirty (30) days' prior written
notice to the Developer. The Developer may terminate this Agreement prior to the end of the
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term set forth in Section 8 above upon thirty (30) days' prior written notice to the City, provided,
however, that an event of default by the Developer is not then uncured regarding reimbursement
to the City of both Estimated Consultants Costs and Excess Costs as provided in Section 5
hereof.
Within five (5) business days following either the City's decision to terminate this
Agreement or the City's receipt of written notice indicating the Developer's decision to
terminate this Agreement, the City shall notify the Consultants in writing and instruct them to
cease work immediately under the Consultant Contracts. The Consultants shall be instructed to
bill the City for any work completed prior to such written notification. The City may draw upon
the Account described in Section 6 of this Agreement to reimburse itself for payments made to
the Consultants as Estimated Consultant Costs or Excess Costs as provided in Section 5 herein
following receipt of termination billing for such work from the Consultants. The Developer's
obligation to reimburse the City as provided in this Agreement shall survive the termination of
this Agreement pursuant to this Section 8.
10. Remedies Upon Default. An event of default shall be deemed to exist upon the
occurrence of all three of the following:
(i) Either the City or the Developer has, without legal justification or excuse,
breached any one or more of its obligations under this Agreement; and
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(ii) The nondefaulting party has sent written notice to the party claimed to be in
default, specifying the default and what actions the nondefaulting party asserts should be taken to
remedy the default; and
(iii) The party claimed to be in default has not, within ten (10) days following receipt
of the written notice described above, either corrected the default or taken actions, reasonably
satisfactory to the nondefaulting party, to remedy the default within a reasonable period of time,
but in no event longer than thirty (30) days after receipt of the written notice described above.
Following an event of default, the nondefaulting party may exercise any and all remedies
available to it pursuant to this Agreement, or at law or in equity, including, without limitation,
instituting an action for damages, injunctive relief, or specific performance.
11. Nonwaiver of Rights or Remedies. The failure of a party to exercise any one or
more of its rights or remedies under this Agreement shall not constitute a waiver of that party's
right to enforce that right or seek that remedy in the future. No course of conduct or act of
forbearance on any one or more occasions by any party to this Agreement shall preclude that
party from asserting any right or remedy available to it in the future. No course of conduct or act
of forbearance on any one or more occasions shall be deemed to be an implied modification of
the terms of this Agreement.
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12. Assignability. This document may not be assigned by either party without the
express written consent of the other party, which consent shall not be unreasonably withheld or
delayed. Any attempted assignment of this Agreement not in compliance with the terms of this
Agreement shall be null and void and shall confer no rights or benefits upon the assignee.
13. No Coral Modifications. This Agreement represents the entire understanding of
the City and the Developer and supersedes all other prior or contemporaneous written or oral
agreements pertaining to the subject matter of this Agreement. This Agreement may be
modified, but only by written amendment signed by both the City and the Developer.
14. Bindi g Upon Successors. This Agreement and each of its terms shall be binding
upon the City, the Developer and their respective officers, elected officials, employees, agents,
contractors, and permitted successors and assigns.
15. Indemnification. The Developer shall defend, indemnify and hold harmless the
City and its elected officials, officers, employees, agents, contractors, consultants and attorneys
against any and all damages, losses, fines, penalties, costs and expenses arising out of any and all
third party claims and suits by parties not affiliated with the City challenging any action taken by
the City with regard to any procedural or substantive aspect of the Review Process or the
processing of the Project Application, including, without limitation, the CEQA process. The
City shall promptly notify the Developer of any such claim or action, and the City shall
cooperate fully with the Developer, at the Developer's costs, in the defense of such claim. The
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Developer shall appear as real party in interest in any such third party action or proceeding, shall
defend such action or proceeding, and shall be responsible and reimburse the City for its actual
legal fees and costs, including actual attorneys' fees, which may be incurred reasonably by the
City in defense of such action or proceeding. The legal counsel selected and engaged by the
Developer to defend the City shall be subject to the City's approval, which shall not be
unreasonably withheld or delayed.
16. attorneys' Fees. In the event that any action or proceeding, including arbitration,
is commenced by either the City or the Developer against the other to establish the validity of
this Agreement or to enforce any one or more of its terms, the prevailing party in any such action
or proceeding shall be entitled to recover from the other, in addition to all other legal and
equitable remedies available to it, its actual attorneys' fees and costs of litigation, including,
without limitation, filing fees, service fees, deposition costs, arbitration costs and expert witness
fees, including actual costs and attorneys' fees on appeal.
17. Jurisdiction and Venue. This Agreement is executed and is to be performed in the
City of Azusa, Los Angeles County, California, and any action or proceeding brought relative to
this Agreement shall be heard in the appropriate court in the County of Los Angeles, California.
The City and the Developer each consent to the personal jurisdiction of the court in any such
action or proceeding.
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18. Time is of the Essence. Except as otherwise expressly stated, time is of the
essence in the performance of every act required pursuant to this Agreement.
19. Covenant of Further Assurances. The City and the Developer shall take all other
actions and execute all other documents, which are reasonably necessary to effectuate this
Agreement.
20. Interpretation. The City and the Developer agree that this Agreement is the
product of mutual negotiations and is an arms -length transaction. Each party has negotiated this
Agreement with the advice and assistance of legal counsel of its own choosing.
It is further agreed that this document is a product of mutual drafting efforts by both the
City and the Developer and, accordingly, the rule that ambiguities in a document shall be
construed against the drafter of the document shall have no application to this Agreement. In
construing and interpreting this Agreement, the finder of fact shall give effect to the mutual
intention of the City and the Developer, notwithstanding such ambiguity, and may refer to the
facts and circumstances under which this Agreement is made and such other extraneous evidence
as may assist the finder of fact in ascertaining the intent of the City and the Developer.
21. Severability. If any term or provision of this Agreement is found to be invalid or
unenforceable, the City and the Developer both agree that they would have executed this
Agreement notwithstanding the invalidity of such term or provision. The invalid term or
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provision may be severed from the Agreement and the remainder of the Agreement may be
enforced in its entirety.
22. i fcadiii-s. The headings of each Section of this Agreement are for the purpose of
convenience only and shall not be construed to either expand or limit the express terms and
language of each Section.
23. Representations and Authorit . Each party signing this Agreement on behalf of a
party which is not a natural person hereby represents and warrants to the other party that all
necessary legal prerequisites to that party's execution of this Agreement have been satisfied and
that he or she has been authorized to sign this Agreement and bind the parry on whose behalf he
or she signs.
24. Notices. Notices required under this Agreement shall be sent to the following:
If to the City: City of Azusa
213 E. Foothill Boulevard
Azusa, CA 91702-1395
Attention: City Manager
Facsimile No. (626) 334-5464
If to the Developer: Monrovia Growers
18331 E. Foothill Boulevard
P.O. Box 1385
Azusa, CA 91702
Attention: Mr. Miles Rosedale
Facsimile No. (626) 334-3126
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Notices given pursuant to this Agreement shall be deemed received as follows:
(i) If sent by United States Mail - five (5) calendar days after deposit into the
United States Mail, first class postage prepaid.
ply.
(ii) If by facsimile - upon transmission and actual receipt by the receiving
(iii) If by express courier service or hand delivery - on the date of receipt by
the receiving party.
The addresses for notices set forth in this Section 24 may be changed upon written notice
of such change to either the City or the Developer, as appropriate.
25. Days. Unless otherwise specified to the contrary, "days" in this Agreement shall
mean calendar, not business, days.
[Signatures on following page.]
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Dated: C)
"City")
ATTEST:
CITY OF AZUSA, a municipal corporation (the
B L__
y
City Clerk
APPROVED AS TO FORM:
By:
City Attorney
Dated:_
APPROVED AS TO FORM:
Legal Counsel for Monrovia Nursery
Company
MONROVIA GROWERS, a California corporation
)(the e"')
Authorized Agent
C-0
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Fxhihit A
Legal Description of Property
Being a portion of the Azusa Rancho Confirmed to Henry Dalton as shown on a map
thereof recorded in Book 2, Page 106 of Patents, together with portions of Parcels 1 through 6
and 8 as shown on a map filed in Book 29, Page 37 of Record of Surveys, together with portions
of Parcels `B" through "F" as shown on a map filed in Book 63, Page 32 of Record of Surveys,
together with portions of Los 77, 79 through 82, 84 and 85 of Subdivision No. 2 of the Azusa
Land and Water Company as shown on a map thereof filed in Book 43, Page 94 of
Miscellaneous Records, all in the Office of the County Recorder of Los Angeles County,
California and also together with portions of Sections 23 and 26, Township 1 North, Range 10
West, San Bernardino Meridian, according to the official plant thereof.
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Exhibit B
CEQA Consultant
Terry A. Hayes Associates
Consultant shall prepare or cause to be prepared all necessary technical analysis and
reports for a complete environmental review of the project as required by the California
Environmental Quality Act.
The estimated costs are $74,939.
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Planning Project Manager
Cotton/Bridges/Associates
Cotton/Bridges/Associates will perform contract staff planning and project management services
for the project. The staff services include, but are not limited to the following tasks:
1. Coordinate the processing of City -required entitlement applications.
2. Meet as needed with project applicants regarding application and project requirements.
3. Coordinate the processing of required CEQA documents.
4. Third -party review of Applicant's technical documents and the CEQA documents prepared by
Terry A. Hayes Associates.
5. Prepare staff reports, resolutions, and conditions of approval.
6. Prepare legal notices for entitlement applications and hearings.
7. Participate in public meetings and public hearings associated with the project.
8. Other tasks directly associated with project applications, as directed by the Community
Development Director.
The estimated costs are $30,000.
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Exhibit D
Fiscal Impact Consultant
Kosmont Partners
SCOPE OF WORK
Residential Component - Recommended Technical Approach for Monrovia Nursery
Kosmont Partners has reviewed the general specifications of the proposed residential portion of the
Monrovia Nursery project. Before proceeding with the analysis of specific fiscal revenue and expenditure
categories, Kosmont Partners will conduct a quick review the applicable marketing materials assembled
by the developer and from other sources, as available, to determine if the proposed type and quantity of
residential product appears to be reasonable. Some revenue and expenditure categories, by their nature,
will be eliminated from consideration because future budget amounts are not likely to be materially
affected by the development of Monrovia Nursery.
Based on that preliminary review and an understanding of Azusa's operating budget, it is anticipated that
that the per capita multiplier approach would be most appropriate for use in projecting the new revenues
associated with certain intergovernmental transfers, cost reimbursements, charges for service, property
use, licenses and permits, fine and other miscellaneous sources. Because they are "product specific", it is
anticipated that the marginal revenue approach will be most appropriate for projecting revenues from
property and real property transfer taxes. Utility uses, utility in -lieu and utility franchise taxes will be
related to specific utility usage.
This preliminary review and familiarity with Azusa's operating budget indicates that the per capita
multiplier approach is likely to be the most appropriate for estimating the potential cost to the City of
providing municipal service in the areas of police contract service, recreation, library, community services
and general government. Project needs for police patrol, fire protection, off-site street maintenance and
parks maintenance are likely to be best estimated on a marginal cost basis and as a function of particular
project attributes. These estimates will be made after consultation with the appropriate members of the
City staff.
Sales and Business License Tax Revenue
Any new sales and business license tax revenues that Azusa may receive as a result of the development of
the project will be a function of the expenditures by new households in the project on taxable retail
purchases in the City. No significant taxable retail sales can be expected to take place in residential
components of the project. New retail sales that result from project household expenditures will take place
in the commercial components of the project and in the rest of the City at large.
The amount of those new expenditures that occur in Azusa will depend on a complex combination of
factors such as household income levels, spending patterns for the different income levels and the nature
of shopping opportunities (now and in the future) in Azusa and beyond the City limits. New sales tax
revenue to Azusa was estimated for the relatively homogenous and much smaller Mountain Cove project.
There is potentially a very broad mix of residential units in the Monrovia Nursery project. In addition, the
project itself has a commercial component that will have some retail space. Because of that new
commercial space and the pending fiscal impact analysis of the proposed Foothill Center development,
23
there is the potential for double counting some of the sales tax revenue that Monrovia Nursery households
may spend in Azusa.
At best, sales tax revenues from a residential project are an indirect form of fiscal revenue. The relatively
systematic Mountain Cove sales tax revenue estimate for Azusa was possible because of the size and
relative homogeneity of that project. Because of the scale of Monrovia Nursery (it will constitute more
than a 10% increase in the City's total housing stock), the range of household incomes in the project and
the range of retailers from which the households would buy goods, a systematic estimate of new sales tax
revenue to the City similar to the Mountain Cove analysis is likely to be inordinately speculative.
By its size and the nature of its prospective residents, the project has the potential to induce the
establishment a significant new component in retailing in Azusa. If that does occur over time, the question
must be asked whether the fiscal benefits from that new retail development should be attributed to the
residential development from which the retail demand arises or the retail outlets themselves. Kosmont
Partners recommends an alternative to making such a speculative estimate of retail sales tax and
attempting to attribute it to the Monrovia Nursery or new retail developments over some time horizon.
That recommendation is to characterize in a general way the estimated household incomes in the project,
the estimated taxable spending component of those household incomes and the demonstrate the amount of
sales tax revenue the City may receive if a range of the spending is eventually captured by retailers
located in Azusa. This alternative approach will draw upon an analysis of the extent to which retail sales
from Azusa residents are lost to other jurisdictions through leakage.
Commercial Component
The small 30,000 square foot to 50,000 square foot commercial component will generate a range of
revenues and create a number of expenditure obligations for the City. The primary revenue categories will
be property tax, sales tax, utility user tax, franchise tax and business license tax. The property tax will be
a function of the value of the land and improvements. The sales tax and business license taxes will be a
function of the gross receipts of the businesses occupying space in the project. At his early stage in the
development process, any estimate or projection of taxable retail sales will be very generalized and based
on reasonable averages for generic classes of retailers. Some of the tenants of the commercial space may
not engage in the sale of any taxable goods.
Utility user taxes and utility franchise taxes will be a function of the amount of utilities consumed.
Estimates of utility consumption that will generate those tax revenues will be based on industry averages.
Other miscellaneous fiscal revenues may be generated for the City as a consequence of the number of
employees working in this project component.
A majority of the City's obligation for new fiscal expenditures will fall into the police, fire prevention and
emergency medical service (EMS) categories. The police services will tend to revolve around dealing
with property crimes such as shoplifting or automobile break-ins. Estimating that burden, as well as the
calls for fire and EMS, will be based on discussions with the cognizant City offices and departments.
There may also be some additional minor fiscal burden in other expenditure categories resulting from the
presence of the on-site employees as equivalent residents.
In the Event of Negative Net Fiscal Impact
In the event the analysis indicates that there is likely to be a significant negative fiscal impact resulting
from annual fiscal expenditure obligations exceeding annual fiscal revenues, a range of approaches to
closing the gap will be investigated. This will include but not be limited to the use of community facilities
districts, assessment districts, etc. Working in conjunction with the City's financial advisor (FA), the
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Kosmont team will identify those approaches that are most likely to enable the project to meet the
objective of balancing the City's annual fiscal revenues and expenditures. At this early stage in the
development process, the recommendation of any such approach will necessarily be generic.
Nevertheless, it will set a framework within which a detailed mechanism ultimately can be created.
COSTS
The estimated costs are $17,936.
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Exhibit E
Traffic Planner
The Mobility Group
Coordination of Traffic Studies for Specific Plan EIRs for Monrovia Nursery, Azusa Pacific
University, and Foothill Center. The services include, but are not limited to the following tasks:
1. Attend meetings of the Traffic Working Group.
2. Assist City in developing a common technical approach and methodology for the three
development project traffic studies.
3. Assist City to coordinate the preparation of a common database of future cumulative projects.
4. Review project impact issues and relation to General Plan.
The estimated costs are $ 10,041.20.
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Exhibit F
Legal Counsel
Best Best & Krieger LLP
Scope of Work
1. Review Project Application for discretionary land use approvals including, but not
limited to, request for general plan amendment, specific plan amendment, zoning code
amendment, related environmental documents and other related approvals needed from
the City of Azusa.
2. Review and comment on staff reports related to the Project.
I Analyze and review the City's land use regulations to determine findings needed to
approve the Project.
4. Review and analyze State land use statutes and environmental regulations to ensure that
the Project is consistent with all applicable laws and regulations.
5. Assist staff in reviewing fiscal impacts of Project and developing and implementing
mitigation measures, including, but not limited to, assessment districts, special taxes,
mitigation fees or reimbursement agreements.
6. Assist staff in drafting enforceable conditions of approval on land use approvals.
7. Advise the City on how to proceed with questions or demands for documents and
information related to the Project, including but not limited to California Public Records
Act questions or requests, California Political Reform Act questions or other questions to
which the City must respond, as mandated by law.
8. Attend Planning Commission and City Council meetings where staff has requested
attendance by the City Attorney when the Project will be discussed.
9. Attend meetings with staff and Developer's representatives, if and when necessary, to
discuss the Project.
Hourly rates are $185.00 blended hourly rates. Total costs will range depending how many legal
issues come up during the approval process from $2,590 to $18,500.
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Exhibit G
Estimated Consultant Costs
Terry A. Hayes Associates
$74,939.00
Cotton/Bridges/Associates
$30,000.00
Kosmont Partners
$17,936.00
Mobility Group
$10,041.20
Best, Best & Krieger
$18,500.00
Total
$151,416.20
Note 1: Total costs will range depending how many legal issues
come up during the approval process from $2,590 to $18,500.
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