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HomeMy WebLinkAboutMAKALLON ATLANTA HUNTINGTON BEACH - 2002-05-06DATE: • CITY OF HUNTINGTON' BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH May 13, 2002 TO: Makallon Atlanta Huntington Beach, LLC ATTENTION: Grant Freeman Name 4100 MacArthur Bo tl va r1, Stp. 150 DEPARTMENT: Street Newport Beach, CA 92660 REGARDING: Reimbursement City, State, Zip Agreement See Attached Action Agenda Item E-12 Date of Approval 5 / 6 / 02 Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: Connie Brockway City Clerk Attachments: Action Agenda Page x Agreement x Bonds Insurance RCA Deed Other CC: H. Zelefsky Planning x x Name Department RCA Agreement Insurance Other M.B. Broeren Planning x x Name Department RCA Agreement Insurance Other Name RCA Agreement Insurance Other Department Name RCA Agreement Insurance Other Department Name RCA Insurance Department k ( Telephone: 714-536-5227 ) Council/Agency Meeting Held: OS- 06 �.02 Deferred/Continued to: Ap roved ❑ Conditionally Approved ❑ Denied tL-f- tdytlerk' Signature Council Meeting Date: May 6, 2002 Department ID Number: PL02-14 x CITY OF HUNTINGTON BEACH o REQUEST FOR ACTION Cr SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS -- lJ > SUBMITTED BY: RAY SILVER, City Administrator dPW PREPARED BY: HOWARD ZELEFSKY, Director of Planning n SUBJECT: APPROVE A REIMBURSEMENT AGREEMENT WITH MAKALLON ATLANTA HUNTINGTON BEACH, LLC FOR PREPARATION OF ENVIRONMENTAL DOCUMENTATION FOR THE PACIFIC CITY PROJECT Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Transmitted for City Council's consideration is a request to enter into a reimbursement agreement with Makallon Atlanta Huntington Beach, LLC ("Makar") to reimburse the City for preparation of environmental documentation for the Pacific City Project. The agreement is in the amount of $486,620, which will cover the costs of the City's environmental consultant contract with EIP Associates for the project. Funding Source: Not applicable. Recommended Action: Motion to: "Approve and authorize the Mayor and City Clerk to execute the Reimbursement Agreement with Makallon Atlanta Huntington Beach, LLC for Preparation of Environmental Documentation for the Pacific City Project." • REQUEST FOR ACTION • MEETING DATE: May 6, 2002 DEPARTMENT ID NUMBER: PL02-14 Alternative Action(s): The City Council may make the following alternative motions: "Deny the Reimbursement Agreement between the City and Makallon Atlanta Huntington Beach, LLC." 2. "Continue the item and direct staff accordingly." Analysis Makallon Atlanta Huntington Beach, LLC ("Makar") owns a 31-acre vacant property bounded by Pacific Coast Highway, ' First Street, Huntington Street and Atlanta Avenue. Makar has been engaged in conceptual site planning for the property over the last several years. On March 27, 2002, Makallon Atlanta Huntington Beach, LLC submitted an environmental assessment application for future development of the site (now called ".Pacific City"). In preparation for Makar's submittal, the City solicited proposals from environmental consulting firms for preparation of environmental documentation and entered into a .contract with EIP Associates. The contract amount is $486,620, including contingency, and is accounted for in the Planning Department's budget contractual services account. Makar has agreed to fully reimburse the City for the costs associated with preparation of the environmental documentation. The attached Reimbursement Agreement sets forth the terms of the reimbursement, with an initital deposit of $100,000 to be made to the City within 10 days of approval of this Agreement. Additional deposits will be made pursuant to the Agreement. In addition, Makar will be required to pay normal application fees associated with the environmental documentation. Staff recommends City Council approve the Reimbursement Agreement with Makallon Atlanta Huntington Beach, LLC, and authorize the Mayor and City Clerk to execute the document. Environmental Status: Projects over which public agencies exercise ministerial authority, such as this agreement are categorically exempt from the California Environmental Quality Act. Attachment(s): RCA Author: MBB PL02-14 -2- 4/19/2002 11:16 AM ram' ATTACHMENT 1 REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND MAKALLON ATLANTA HUNTINGTON BEACH, LLC FOR COSTS INCURRED FOR PACIFIC CITY PROJECT ENTITLEMENT AND ENVIRONMENTAL PROCESSING THIS AGREEMENT ("Agreement") is made and entered into this 6th day of = : May _. 2002, by and between the City of Huntington Beach, a municipal corporation of the State. of California, hereinafter referred to as "CITY," and Makallon Atlanta Huntington Beach, LLC hereinafter referred to as "DEVELOPER." WHEREAS, DEVELOPER is proposing to develop an area within the City. of Huntington Beach known as Pacific City (District 7 and 8a of the Downtown Specific Plan) located between 1st and Huntington Streets on Pacific Coast Highway (the "Project'); and DEVELOPER is required to submit applications to CITY for approval of various discretionary matters, including Commercial Master Site Plan, Conceptual Master Plan and other land use approvals ("entitlements") and environmental assessments implementing the Downtown Specific Plan; and DEVELOPER desires that all entitlements, applications, land use approvals and environmental documentation be processed expeditiously as possible; and DEVELOPER desires to have CITY commit sufficient .resources to enable the expeditious processing of entitlement applications and other necessary planning review and documentation; and Pursuant to California Government Code Section 87103.6, DEVELOPER is allowed to defray the cost of processing development applications, entitlements and environmental review by reimbursing CITY for such costs. NOW, THEREFORE, in consideration of the promises and agreements hereinafter made and exchanged, the parties agree as follows: 02agree/pacificcity/4/18/02 I 1. PAYMENT DEVELOPER agrees to reimburse CITY for its outside professional services for entitlement application processing and environmental document review of the Project as follows: A. DEVELOPER shall post a deposit in the amount of One Hundred Thousand Dollars ($100,000) with the CITY within ten (10) days following the adoption of this Agreement; B. DEVELOPER agrees that invoices, submitted to the CITY by professional planning firms or other CITY consultants will be paid out of such deposit, and within ten (10) days of receiving notice from the CITY that such deposit amount has been reduced to an amount of Twenty -Five Thousand Dollars ($25,000), DEVELOPER will replenish the balance by depositing additional funds to reinstate the amount of One Hundred Thousand Dollars ($100,000). C. In the event that DEVELOPER fails to maintain the One Hundred Thousand Dollar ($100,000) deposit as required in Section 1(B) of this Agreement, DEVELOPER shall, upon written notice, pay the entire balance due (the difference between all deposits paid to that date and the total actual amount) for professional planning services under this Agreement. D. DEVELOPER acknowledges that an estimated amount for the services referred to above has been included as Attachment A to this Agreement, and is the CITY's best estimate of the costs for the services described therein, and that the actual cost of these and other services may be higher. In the event that the actual cost of such 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 that actual costs of 02agree/paciticcity/4/18/02 2 r� such planning and consultant services are less than the estimated costs, CITY will refund the difference between the actual and estimated costs. 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 entitlement applications and environmental documentation as set forth in Section 1 herein. 3. EXCLUSIVE CONTROL BY CITY CITY will maintain exclusive control over the work described herein. Nothing in this Agreement shall be deemed to: A. Require CITY to approve any plan, proposal, entitlement, application or request submitted by DEVELOPER. B. Limit, in any respect whatsoever, CITY's sole authority to direct and control the planner(s) assigned to DEVELOPER's various development projects. C. 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 work to be performed by the professional planning firms to be funded pursuant to this Agreement and therefore, ten (10) days prior to the initial deposit required pursuant to Section 1 of this Agreement, DEVELOPER shall submit a list 02agree/pacificcity/4/18/02 3 of entitlement and planning activities to be performed by the CITY for approval by the Planning Director. 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 up to the date of actual termination. 7. HOLD HARMLESS DEVELOPER hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with DEVELOPER's performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by DEVELOPER, its officers, agents or employees except such loss or damage which was caused by the negligence or willful misconduct of CITY. DEVELOPER's indemnification and defense obligations include, but are not limited to, all claims, writs, damages, losses, expenses, demands and defense costs related to the preparation of environmental documentation related to the Project and/or any approval or denial of the Project. CITY shall be reimbursed by DEVELOPER for all costs and reasonable attorney's fees incurred by CITY in enforcing this obligation. DEVELOPER will conduct all defense at its sole cost and expense, and CITY shall approve selection of DEVELOPER's counsel, which approval will not be unreasonably delayed or withheld. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The 02agree/pac i fi cc i ty/4/1 8/02 4 policy limits do not act as a limitation upon the amount of indemnification to be provided by DEVELOPER. E:�II�i:�Tl 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, or when all services contemplated hereunder have been completed. 9. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery or overnight courier to DEVELOPER or to CITY at the addresses noted below, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States mails, 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, which will be deemed given when received: TO CITY: City of Huntington Beach ATTN: Planning Director 2000 Main Street Huntington Beach, CA 92648 10. MODIFICATION TO DEVELOPER: Makallon Atlanta Huntington Beach, LLC ATTN: Grant Freeman, CFO 4100 MacArthur Boulevard, Suite 150 Newport Beach, CA 92660 No waiver or modification of this Agreement shall be valid unless in writing and duly executed by both parties. 02agree/pacificcity/4/18/02 5 11. 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 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. 12. INTERPRETATION OF THIS AGREEMENT 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. 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. I3. DUPLICATE ORIGINALS 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 02agree/paciticcity/4/18/02 6 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 14. 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. 15. 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. 16. ATTORNEY'S FEES Except as expressly set forth in Section 7 of this Agreement, 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. 17. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 18. ENTIRETY This Agreement, and the attached exhibits, contains the entire agreement between the parties respecting the subject matter of this Agreement and supercedes all prior understanding 02agree/pacificcity/4/18/02 7 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 offices the day, month and year first above written. MAKALLON ATLANTA HUNGTINGTON BEACH, LLC, By: MAKAHB, LLC_ , a Delaware limited liability company, By: MAKALLON, LLC, a Delaware limited liability company, its Member, By: Makar Properties, LLC, a Delaware limited liability company, its Managing Member By:_� Grant . Freeman, Chief Financial Officer 1;7S►IFAIC TA91l7_VIO7_1» e:z� _ a. City Admitfistrator CITY OF HUNTINGTON BEACH, a municipal corporation of the State of Californi ke� Mayor ATTEST: CityfClerk 6T- TZ APPROVED AS TO FORM: City Attorney Z INIT ED A PROVED: Di ector of Planning 4olo- 02agree/pacificcity/4/18/02 " STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On April 19, 2002, before me, Lesly Alana Gunz, Notary Public, personally appeared Samuel H. Weissbard and Grant M. Freeman, personally known to me (Of py-eved to ,r „ the basis of tis f , eery e videnee to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that husk°/they executed the same in hisihffftheir authorized capacity(ies), and that by his4iff/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. LEsLY AU►NA GUNZ Commbdon 81294M Notary Pub5c - Catflanb Orange County %7MVCMM.B0MFeb23,2M5 (Seal) WITNESS my hand and official seal. Signature ATTACHMENT A REVISED PROPOSED COST ESTIMATE (JANUARY 26, 2002) PACIFIC CITY EIR SCOPE OF WORK ITEM CCO cuE F o m U. 3Ec c C C O2 co IL W gEc C w 0 m Lu Ec w Ec w O m y O V y OO 4) O a OC1 2 oO EIP LABOR COSTS n/a Costs Incurred Between 1998 and January 2002 37 1 Project Initiation and Organization 6 4 - 8 __.-.. 8 2 Peer Review of Applicant's Technical Studies 32 6 12 -- - 3 Prepare Annotated Initial Study 16 -_27 - - _- --- -- - 4 Prepare & Distribute IS/NOP 8 32 - - -_ 4 6- - - 5 Prepare Administrative Draft EIR - --- -_-_ 100 -_- -- 200- - - - A Introduction 2 4 B Summary of Impacts and Mitigation Measures _ -- 4 ------ - 16-- ---- - - ------ --- C Project Description 2 2 24 2 4 _- -_ D Effects Found Not to Be Significant _ E Impacts/Mitigation Measures Land Use and Planning 16 32 Visual Quality and Aesthetics 16- 32------ --._-- -- -- -. _ Public Services, Utilities, and Service Systems 6 -- 60 - -- _- Eopulation and Housing 4 4 36 Traffic, Circulation, and Parking 6 24 - _-- - Air Quality, 4 --- -.-.- 20 — Noise 4 _ ----- -- -- Energy and Mineral Resources 4 - 8 _20 Geology and Soils 2 32 ----- ---.. _--- ----- Hazardous Materials 4 24 Hydrology and Water Quality-- 2 24 Biological Resources Cultural Resources -- 4 - 2 __ 2 - 24 - _ --32 - - Cumulative Impacts 8 8 8 - 8 16 _- 4 8 F Growth -Inducing and Irreversible Impacts 2 4 8 _- 16 G Signifcant Unavoidable Impacts 8 2 24 24 4 _- 4 8 2 4 H Project Altematives List of Organizations and Persons Consulted 1 2 J References 2 8 K Preparers of the Environmental Document 1 1 L Prepare Document in PDF Format (web posting) _ -'— _ __._.._.....-- 24 4 Prepare Draft EIR 12 8 40 16 24 24 8---_-_-----_8-_-----_'"_-40 32..._-_--...._-4 5 Prepare Administrative Final EIR 80 24 120 24 24 60 24 24 80 40 4 6 Prepare Final EIR 40 8_ 32-- 6 _.-.- -6 -- 24 _8.-._.._..--_...._. 6 10 16 4 7 Meeting Attendance (4 hours per meeting) Meetings with City staff mtgs) 120 24 40 40 _ —, - Public Workshops (4 mtgs) 16 16_-__- 16 REVISED PROPOSED COST ESTIMATE (JANUARY 26, 2002) PACIFIC CITY EIR Committee Meetings (4 mtgs) 16 16 16— — _ Scoping Meeting 1 mt 4 4 _ 4 Planning Commission Study Sessions 3 m s 12 12 __ 12_— Planning Commission Public Hearings Q mt s) 12 12 12 City Council Study Sessions (3 mt 12 12 12 12 _ 12-- 12 ---- ------------- ----....------.....--- City Council Public Hearings (3 mtgs) - - Coastal Commission Study Sessions/Staff Mt 2 mtgs) 8 8 8 Coastal Commission Public Hearin 2 mtgs) a 8 S 8 Pmject Management & General Coordination_ Policy and Planning Management — 18 8 —_ -- ---_— -- — -- Technical Management 18 8 General Project Administration 24-- 9 Prepare Mitigation Monitonng Program 1 6 24 10 Prepare Certification and Finding Documents 2 24 24 Total Hours Hourly Rate 459 $ 160 228 $ 160 524 $ 130 323 $ 95 233 $ 85 280 $ 75 66 $ 130 114 $ 95 234 $ 65 294 $ 65 54 $ 40 TOTAL EIP LABOR $ 73,440 $ 36,480 $ 68,120 $ 30,685 $ 19,805 $ 21,000 $ 8,580 $ 10,830 $ 15,210 $ 19,110 $ 2,160 EIP DIRECT EXPENSES Reproduction 190 bound documents average $60/doc. Mileage Delivery/Postage Photos/Graphics — Miscellaneous 10% administrative fee Subtotal - Expenses -- - -- .-- - --- TOTAL EIP BUDGET SUBCONSULTANT EXPENSES LSA(Traffic) ' Geotechnical Consultants (Geologic Issues Tetra Tech/Simons Li & Associates H drol !Water MIG 10% administrative fee Subtotal - Technical Studies GRAND TOTAL - WITHOUT CONTINGENCIES 20% Contingency Fee - Meetings Assumes 20% of $78.120 (Tasks 7 and 8) Assumes 20% of $19,690 (Subtotal - Expenses) Assumes 20% of $365.870 overall budget); allows for annual rate increases and any other unforeseen expenses, such as a more extensive RTC effort 20% Contingency Fee - Deliverables 20% Contingency Fee - Schedule/Overall Budget GRAND TOTAL - WITH CONTINGENCIES 0 Pape 2 REVISED PROPOSED COST ESTIMATE (JANUARY 26, 2002) PACIFIC CITY EIR 0 0 H ,o c� U W o! ~ a N O U 37 $ 5,920 $ 5,920 26 $ 3,240 $ 3,240 50 7.250 $ 7,250 43 _$ $ 5,125 $ 5,125 52 $ 5,050 $ 5,050 316 $ 20,140 $ 93,935 6 $ 560 20 $ 1,720 28 $ . 3,760 6 $ 560 48 $ 5.600 48 $ 5,600 66 $ 5,280 44 $ 4,220 30 $ 3,060 24 $ 2,420 24 $ 2.420 36 $ 3,840 34 $ 2,980 28 $ 2.560 26 $ 2,300 34 $ 2_980 30 $ 3,180 60 $ 6,240 _ ----- 30 $ 3,360 _ 6 $ 560 _ 74 $ 8,260 _ 3 $ 300 10 $ 860 2 $ 215 _ 24 $ 960 216 $ 20,400 _ $ 20.400 524 $ 55.920 $ 55.920 160 $ 18,180 $ 18,180 $ 76,900 32.0401 48 $ 7,200 is • PW 3 ram.:,.,,.,,:>v,,. REVISED PROPOSED COST ESTIMATE (JANUARY 26, 2002) PACIFIC CITY EIR 48 $ 7,200 12 $ 1,660 $ 5,400 _ _36 36 5,400 _ 36 _$ $ 5,400 36 $ 5,400 24 $ 3,600 24 $ 3,600 $ 10,960 _ 26 $ 3,920 26 $ 3,920 24 $ 3,120 31 $ 2,740 $ 2,740 50 $ 5,720 $ 5,720 2,809 $ 311,340 $ 311,340I • • Pape 4 RCA ROUTING SHEET INITIATING DEPARTMENT: Planning SUBJECT: APPROVE A REIMBURSEMENT AGREEMENT WITH MAKALLON ATLANTA HUNTINGTON BEACH, LLC FOR PREPARATION OF ENVIRONMENTAL DOCUMENTATION FOR THE PACIFIC CITY PROJECT COUNCIL MEETING DATE: I May 6, 2002 Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Attached Subleases, Third Party Agreements, etc. (Approved as to form by City Attome Not Applicable Certificates of Insurance (Approved by the City Attome Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable 7�- / 12"✓'( J'� Administrative Staff Assistant City Administrator Initial City Administrator (initial)