HomeMy WebLinkAboutTRI Pointe Homes, LLC - 2011-12-19 Council/Agency Meeting Held: /dam��41
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Council Meeting Date: December 19, 2011 Depart m nt ID Number: PL 2011-09
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Scott Hess, AICP, Director of Planning and Building
SUBJECT: Approve and authorize execution of a Reimbursement Agreement with
TRI Pointe Homes, LLC for Preparation of Environmental .
Documentation for Two Proposed Residential Developments at
Former Wardlow and Lamb School Sites
Statement of Issue:
Transmitted for City Council's consideration is a Reimbursement Agreement between the
City and TRI Pointe Homes, LLC. The Reimbursement Agreement will defray the costs of
professional planning services associated with the preparation of environmental
documentation for the proposed residential developments at the former Wardlow and Lamb
School Sites.
Financial Impact:
Not Applicable
Recommended Action: Motion to:
Approve and authorize the Mayor and City Clerk to execute the "Reimbursement — Planning -
Agreement Between the City of Huntington Beach and TRI Pointe Homes, LLC for Costs
Incurred for CEQA Documentation for the Former Lamb and Wardlow School Sites," as
prepared by the City Attorney in the amount of Ninety Eight Thousand Three Hundred Eighty
Dollars ($98,389).
Alternative Action(s):
The City Council may make the following alternative motions:
A) Deny the Reimbursement Agreement, or
B) Continue the Reimbursement Agreement and direct staff accordingly.
Item 21. - 1 xB -548-
REQUEST FOR COUNCIL ACTION
MEETING DATE: 12/19/2011 DEPARTMENT ID NUMBER: PL 2011-09
Analysis:
Applicant: TRI Pointe Homes, LLC, 195290 Jamboree Street, Suite 200, Irvine, CA 92612
Wardlow Project Location: 9191 Pioneer Drive (North side of Pioneer Dr., east of Magnolia
Ave.)
The project proponent, TRI Pointe Homes, LLC, proposes to develop 50 single-family units
on an 8.35 acre site. The site is bounded by single family residences to the north and south,
a flood control channel on the eastern border with residences beyond, and a City park with
existing sports- fields adjacent to Magnolia Street on the western border. The project
requires the processing of a General Plan Amendment, Zoning Map Amendment, Conditional
Use Permit and Tentative Tract Map. Pursuant to the California Environmental Quality Act
(CEQA), the City must prepare the requisite environmental documentation before this project
can proceed.
Lamb Protect Location: 10251 Yorktown Avenue (North side of Yorktown Ave., east of
B rookhu rst Street.)
The project proponent, TRI Pointe Homes, LLC, proposes to develop 81 single-family units
on a 14.25-acre site. The City owns 2.6 acres of the site that will be used for open space
purposes. The site is surrounded by single family residences on the west, east and north and
fronts Yorktown Avenue on the south. The project requires the processing of a General Plan
Amendment, Zoning Map Amendment, Conditional Use Permit and Tentative Tract Map.
Pursuant to the California Environmental Quality Act (CEQA), the City must prepare the
requisite environmental documentation before this project can proceed.
Reimbursement Agreement:
In December 2008 the City of Huntington Beach selected Michael Brandman Associates to
prepare the environmental documentation for both Wardlow and Lamb School Sites and
entered into a reimbursement agreement with Ranco Huntington, the previous developer, to
cover the their costs. Michael Brandman Associates commenced work; however due to the
recession the project was put on hold. A new developer, TRI Pointe Homes, LLC is now
pursuing the project. Work completed to date can still be used; however the cost of each
contract with Michael Brandman Associates to complete the work is $49,190. The total for
both sites is $98,380. The proposed reimbursement agreement provides for these costs to
be reimbursed to the City by TRI Pointe Homes, LLC. There have been many
reimbursement agreements requested by staff and the development community. 'This is an
acceptable method to give developers greater assurance of timely entitlement processing in
the City of Huntington Beach. Staff recommends the City Council approve the
reimbursement agreement.
Environmental Status:
xB -549- Item 21. - 2
REQUEST FOR COUNCIL ACTION
MEETING DATE: 1 2/1 9120 1 1 DEPARTMENT ID NUMBER: PL 2011-09
Projects over which public agencies exercise ministerial authority, such as this agreement
contracting for preparation of environmental documentation, are categorically exempt from
the California Environmental Quality Act pursuant to Section 15300.1.
Strategic Plan Goal:
Maintain financial viability and our reserves
Attachment(s):
1. "Reimbursement — Planning - Agreement Between the City of Huntington Beach and
TRI Pointe Homes, LLC for Costs Incurred for CEQA Documentation for the Former
Lamb and Wardlow School Sites."
Item 21. - 3 xB -550-
ATTACHMENT #1
REIMBURSEMENT-PLANNING-AGREEMENT BETWEEN THE
CITY OF HUNTINGTON BEACH AND TRI POINTE HOMES, LLC
FOR COSTS INCURRED FOR CEQA DOCUMENTATION
FOR THE FORMER LAMB AND WARDLOW SCHOOL SITES
THIS AGREEMENT("Agreement") is made and entered into by and between the City of
Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as
"CITY," and TRI POINTE HOMES, LLC, a Delaware limited liability company, hereinafter
referred to as "DEVELOPER."
WHEREAS, DEVELOPER is proposing to develop an area within the City of Huntington
Beach known as the former Lamb School site and the former Wardlow School site; and
DEVELOPER is required to submit applications to CITY for approval of various
discretionary matters, such as entitlements, zone changes, land use approvals and environmental
assessments; and
DEVELOPER desires that all entitlements, zone changes, land use approvals and
environmental assessments be processed as soon as possible; and
DEVELOPER desires to have CITY commit sufficient resources to enable the expeditious
processing of applications and other necessary documentation; and
Pursuant to California Government Code Section 87103.6, DEVELOPER is allowed to
defray the cost of processing development applications and entitlements by reimbursing CITY for
such costs,
NOW, THEREFORE, in consideration of the promises and agreements hereinafter made and
exchanged, the parties agree as follows:
1. PAYMENT
DEVELOPER agrees to reimburse CITY for its professional services as follows:
11-3098n2535 I of 7
A. Within ten (10) days following execution of this Agreement by CITY,
DEVELOPER will make an initial payment to CITY in the amount of Forty-Nine Thousand One
Hundred Ninety Dollars ($49,190.00) (hereinafter the "Amount of Deposit"). Thereafter, on the
first day of each third month, DEVELOPER shall replenish the Amount of Deposit by paying to
CITY an amount equal to the amount paid by CITY for professional services funded by this
Agreement (the "Quarterly Payment"). The parties acknowledge that the Amount of Deposit will be
used to pay the professional planning services funded by this Agreement, and if, prior to the
payment of any Quarterly Payment, the Amount of Deposit is less than One Thousand Dollars
($1,000), DEVELOPER shall make the next Quarterly Payment within ten (10) days' notice from
CITY. DEVELOPER acknowledges that the amount referenced in this Agreement is the CITY's
best estimate of the costs for the services described herein, and that the actual cost of said services
may be higher. In the event that the actual cost of said services exceeds the estimated costs,
DEVELOPER agrees to pay the actual cost within ten (10) days after receiving CITY's invoice for
same. In the event the actual costs of Reimbursement Services are less than the estimated costs,
CITY will refund the difference between the actual and estimated costs.
B. The estimated cost to cover twelve (12) months of professional services is
Ninety-Eight Thousand Three Hundred Eighty Dollars ($98,380.00).
C. A late payment fee of ten percent (10%) will be assessed if CITY receives
any payment later than the thirtieth (30th) day after that payment is due but unpaid. In
addition, one and one-half percent(1%2) interest per month shall be added for each month the
payment hereunder is due but unpaid.
11-3098/72535 2 of 7
2. STATEMENT OF INTENT
The amounts reimbursed to CITY pursuant to this Agreement will help defray
CITY's cost of the professional planning services required to process DEVELOPER's various
development applications and entitlements as set forth herein.
3. EXCLUSIVE CONTROL BY CITY
CITY will maintain exclusive control over the work described herein. Nothing in
this Agreement:
A. Shall be deemed to require CITY to approve any plan, proposal, suggestion,
application or request submitted by DEVELOPER.
B. Shall be deemed to limit, in any respect whatsoever, CITY's sole authority to
direct and control the planner(s) assigned to DEVELOPER's various development projects.
C. Shall be deemed to impose any liability on CITY different from any liability
as may otherwise be established by law.
4. CITY EMPLOYEES AND OFFICIALS
DEVELOPER shall employ no CITY official nor any regular CITY employee in the
work performed pursuant to this Agreement. No officer or employee of CITY shall have any direct
financial interest in this Agreement.
5. TIME IS OF THE ESSENCE
CITY agrees that time is of the essence for the performance of the work to be funded
pursuant to this Agreement and therefore, thirty (30) days prior to each quarterly invoice,
DEVELOPER shall submit a list of proposed activities to be performed by the CITY for approval
by the Planning Director.
11-3098n2535 3 of 7
6. TERMINATION OF AGREEMENT
Either party may terminate this Agreement at any time with or without cause, upon
ten (10) days' prior written notice to the other party. DEVELOPER shall be responsible for all
costs incurred prior to termination, including any and all costs incurred after notice of termination
has been given.
7. TERM
This Agreement shall be effective on the date of its approval by the City Council of
CITY. This Agreement shall expire when terminated as provided herein.
8. NOTICES
Any notices, certificates, or other communications hereunder shall be given either by
personal delivery to DEVELOPERs agent or to CITY as the situation shall warrant, or by enclosing
the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal
Service, to the addresses specified below; provided that CITY and DEVELOPER, by notice given
hereunder, may designate different addresses to which subsequent notices, certificates or other
communications will be sent:
TO CITY: TO DEVELOPER:
City of Huntington Beach Tri Pointe Homes, LLC
ATTN: Director of Planning and Building Attn: Tom Grable
2000 Main Street 19520 Jamboree Road
Huntington Beach, CA 92648 Suite 200
Irvine, CA 92612
9. MODIFICATION
No waiver or modification of any language in this Agreement shall be valid unless in
writing and duly executed by both parties.
11-3098n2535 4 of 7
10. SECTION HEADINGS
The titles, captions, section, paragraph and subject headings, and descriptive phrases
at the beginning of the various sections in this Agreement are merely descriptive and are included
solely for convenience of reference only and are not representative of matters included or excluded
from such provisions, and do not interpret, define, limit or describe, or construe the intent of the
parties or affect the construction or interpretation of any provision of this Agreement.
11. INTERPRETATION OF THIS AGREEMENT
The language of all parts of this Agreement shall in all cases be construed as a
whole, according to its fair meaning, and not strictly for or against any of the parties. If any
provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be
unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining
covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent
upon any other unless so expressly provided here. As used in this Agreement, the masculine or
neuter gender and singular or plural number shall be deemed to include the other whenever the
context so indicates or requires. Nothing contained herein shall be construed so as to require the
commission of any act contrary to law, and wherever there is any conflict between any provision
contained herein and any present or future statute, law, ordinance or regulation contrary to which
the parties have no right to contract, then the latter shall prevail, and the provision of this
Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to
bring it within the requirements of the law.
12. DUPLICATE ORIGINAL
The original of this Agreement and one or more copies hereto have been prepared
and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the
11-3098/72535 5 of 7
date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed
an original instrument as against any party who has signed it.
13. IMMIGRATION
DEVELOPER shall be responsible for full compliance with the immigration and
naturalization laws of the United States and shall, in particular, comply with the provisions of the
United States Code regarding employment verification.
14. LEGAL SERVICES SUBCONTRACTING PROHIBITED
DEVELOPER and CITY agree that CITY is not liable for payment of any
subcontractor work involving legal services, and that such legal services are expressly outside the
scope of services contemplated hereunder. DEVELOPER understands that pursuant to Huntington
Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and
CITY shall not be liable for payment of any legal services expenses incurred by DEVELOPER.
15. ATTORNEY'S FEES
In the event suit is brought by either party to construe, interpret and/or enforce the
terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear
its own attorney's fees.
16. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the laws of the
State of California.
17. SIGNATORIES
Each undersigned represents and warrants that its signature hereinbelow has the
power, authority and right to bind their respective parties to each of the terms of this Agreement,
and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority
or power is not, in fact, held by the signatory or is withdrawn.
11-3098n2535 6 of 7
18. ENTIRETY
This Agreement, and the attached exhibits, contains the entire agreement between the
parties respecting the subject matter of this Agreement and supersedes all prior understanding and
agreements whether oral or in writing between the parties respecting the subject matter hereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
and through their authorized officers on / 20 ,//
Developer,
TRI POINTE HOMES, LLC CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
By:- Thdmas J. Mitchell California
President
print name
ITS: (circle one)Chairm residen ice Mayor
President/Manager/Member
AND
y Clerk 1�-Wto
By: INITIA ED ROVED:
Michael D. Grubbs
Chief Financial Officer
print name Director of Planning and Building
ITS: (circle one)Secretaryl,Chief Financial
Officer Asst. Secretary—Treasurer/Manager/Member
REVIEW D AND APPROVED AS TO
CONTE
A I/L'-
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APPROVED AS TO FORM:
� � ity Attorney
11-3098/72535 7 of 7
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California )
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County of - )
On !l- �� ' l 1 , before me, &UE41 Notary Public,
personally appeared (�
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
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Michael Brandman Associates 6128111
reli inary Fee Estimate®Wardlow®r Lamb School Site IS/MNI
The following provides Michael Brandman Associates' preliminary fee estimate for the preparation of
an IS/MND for either the former Wardlow School Site Project or former Lamb School Site Project in the
City of Huntington Beach.The proposed fees are based on the scope of work previously identified by
the City(2009),and fees include all labor and direct costs.A fee discount is identified if MBA is
awarded both school sites.
IF v
Professional Labor
Task 1.0: Project Initiation NC
Task 2.0: Peer Review of Geotechnical Investigation, Liquefaction
Evaluation and Hydrology Analysis 3,000
Task 3.0: Draft Initial Study 21,1001
Task 4.0: Revised IS/Proposed M N D 3,500
Task 5.0: Response to Comments 3,500
Task 6.0: Final MND 2,000
Task 7.0: Mitigation Monitoring Plan 1,000
Task 8.0: Management and Meetings 6,000
Task 9.0:CEQA Notices 1,800
Total Professional Labor $41,900
Direct Costs
Traffic Study(Garland Associates) $6,480
Cultural Resources Records Search NC
Reprographics/Document Production $2,000
Mileage 200
Delivery/Postage 200
Miscellaneous(Film, Maps, Faxes) 100
Administrative Fee(@ 10%) 900
Total Direct Costs $9,880
TOTAL PRELIMINARY FEE(base price) $51,780
Discount @5%(if awarded both former School Site projects) (2,590)
TOTAL PRELIMINARY FEE(w/discount) $49,190
1 Includes Air Quality/GHG and Noise Technical Analyses
Notes:NC=No charge;estimated fees are valid for 90 days.With Cit y concurrence MBA reserves the ability to
adjust or transfer fee amounts between tasks as long as the total fee is not exceeded.
nf . City ®f Huntington Beach
2000 Main Street ® Huntington Beach, CA 92648
(714) 536-5227 * www.huntingtonbeachca.gov
v
FB,I7 ieoe,a° ® Office of the City Clerk
8 ' Joan L. Flynn, City Clerk
December 21, 2011
Tri Pointe Homes, LLC
Attn: Tom Grable
19520 Jamboree Rd., Ste. 200
Irvine, CA 92612
Dear Mr. Grable:
Enclosed for your records is a copy the "Reimbursement— Planning —Agreement Between
the City of Huntington Beach and Tri Pointe Homes, LLC for Costs Incurred for CEQA
Documentation for the Former Lamb and Wardlow School Sites."
Sincerely,
Joan L. Flynn, CIVIC
City Clerk
JF:pe
Enclosure: Agreement
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