HomeMy WebLinkAboutBella Terra Associates, LLC - 2021-10-19 /1P 0V1___D b - O-
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City of Huntington Beach
File #: 21-756 MEETING DATE: 10/19/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Ursula Luna-Reynosa, Director of Community Development
Subject:
Approve and authorize execution of a Professional Services Contract with LSA Associates,
Inc. in the amount of $241,250, for preparation of the Bella Terra Residential Project
Environmental Impact Report (EIR); approve and authorize execution of a reimbursement
agreement with Bella Terra_Associates, LLC in the amount of $241,450 to fund the EIR;
approve an increase in the Community Development Department's Professional Services
listing authority by S241,450 and appropriate fund to be fully reimbursed
Statement of Issue:
Transmitted for your consideration are a professional services contract with LSA Associates, Inc. for
preparation of the Bella Terra Units Environmental Impact Report (EIR) and a reimbursement
agreement with Bella Terra Associates, LLC to fund the EIR.
Financial Impact:
An appropriation of $241 ,450 from the General Fund to the Community Development Department
Professional Services Account 10060201 .69365 is required. These funds will be offset by the
attached reimbursement agreement with the developer of the project, Bella Terra Associates, LLC.
Recommended Action:
"A) Approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract"
between the City of Huntington Beach and LSA Associates, Inc. for the Bella Terra Units
Environmental Impact Report" in the amount of $241 ,450 as prepared by the City Attorney
(Attachment No. 1); and, '*
B) Approve and authorize the Mayor and City Clerk to execute a "Reimbursement- Planning -
Agreement Between the City of Huntington Beach and Bella Terra Associates LLC for Costs Incurred
for the Bella Terra Units Environmental Impact Report"_in the amount of$241,450 as prepared by the
City Attorney (Attachment No. 2); and,
C) Approve an increase in the Community Development Department's professional services listing
authority by $241,450 for the preparation of the Bella Terra Units Environmental Impact Report to
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File #: 21-756 MEETING DATE: 10/19/2021
ensure compliance with Administrative Regulation Number 228, Section 7.1; and,
D) Appropriate funds as revenues are received in the amount of $241,450 from the General Fund to
the Community Development Department Professional Services Account 10060201.69365 for the
Professional Services Contract between the City and LSA Associates, Inc., which is funded by a
reimbursement agreement.
Alternative Action(s):
The City Council may make the following alternative motions:
A. Deny the professional services contract between the City and LSA, Associates Inc.
B. Deny the reimbursement agreement between the City and Bella Terra Associates, LLC
C. Continue the item and direct staff accordingly
Analysis:
A Professional Services Contract between the City and LSA Associates, Inc. is necessary to prepare the
required environmental documentation pursuant to the California Environmental Quality Act (CEQA) for the
proposed applicant-initiated project. This contract will require an appropriation of funds by the City. Funding
for the environmental documentation is included in the reimbursement Agreement with Bella Tema Associates,
LLC, the project applicant.
The project is a request to redevelop a portion of the existing Bella Terra shopping center by
demolishing the existing 149,001 sq. ft. Burlington Coat Factory and an adjacent 33,331 sq. ft. retail
commercial building (Building E) and constructing a new mixed-use project consisting of residential
apartments units and new ground floor retail space. The project consists of three applications: Site
Plan Review (SPR) No. 2021-002, General Plan Amendment (GPA) No. 2021-001, and Zoning Text
Amendment (ZTA) No. 21-003.
Planning staff requested proposals from firms on the pre-qualified vendor list (attachment 3). The
proposal from LSA Associates, Inc. was selected due to the quality of their proposal and experience
working on environmental documents in the City, including the Atlanta Avenue Widening Recirculated
MND and the Seacliff Senior Living MND, as well as similar projects in other jurisdictions.
Staff recommends the City Council approve the contract with LSA, for S241,450, and authorize the Mayor and
City Clerk to execute the documents. Staff also recommends the City Council approve the Reimbursement
Agreement with Bella Terra Associates, LLC. There have been many reimbursement agreements approved over
the years for environmental documentation, particularly EIRs for applicant- initiated projects. This is an
acceptable method to ensure timely entitlement processing and a greater level of detailed environmental
evaluation.
Environmental Status:
Projects over with public agencies exercise ministerial authority, such as the subject professional
services contract and reimbursement agreement, are categorically exempt from the California
Environmental Quality Act pursuant to Section 15300.1.
Strategic Plan Goal:
Non Applicable - Administrative Item
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File #: 21-756 MEETING DATE: 10/19/2021
Attachment(s):
1. Professional Services Contract between the City of Huntington Beach and LSA Associates,
Inc. for the Bella Terra Units Environmental Impact Report.
2. Reimbursement - Planning - Agreement Between the City of Huntington Beach and Bella Terra
Associates, LLC for Costs incurred for the Bella Terra Units Environmental Impact Report
3. Award for Project On-Call Environmental (CEQA) Consulting Services
City of Huntington Beach Page 3 of 3 Printed on 10/132021
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REIMBURSEMENT - PLANNING - AGREEMENT BETWEEN TFIE
CITY OP HUNTINGTON BEACH AND
BELLA TERRA ASSOCIATES, L.L.0
FOR COSTS INCURRED FOR
PREPARATION OF ENVIRONMENTAL IMPACT REPORT FOR
BELLA TERRA RESIDENTIAL UNITS
THIS AGREEMENT ("Agreement") is made and entered into by and between the City of
Huntington Beach, a municipal corporation of the State ol-Calilbrnia, hereinafter referred to as
"CITY." and BELLA TERRA ASSOCIATES. LLC , a Delaware Limited Liablity Company
hereinafter referred to as "DEVELOPER."
WHEREAS. DEVELOPER is proposing to develop an area within the City of I-luntington
Beach known as Bella Terra Residential Units: 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:
I. 11AYNIENT
DEVELOPER agrees to reimburse CITY for its professional services as follows:
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A. Within ten (10) days toltoxving execution of this Agreement by CITY.
DEVELOPER will make an initial payment to CITY in the amount of' One Hundred Thirty Two
Thousand Seven Hundred Ninety-Eight Dollars (5132,798.00) (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 it, prior to the payment of any Quarterly Payment, the Amount of
Deposit is less than One Thousand Dollars (SI,000). DEVELOPER shall make the next Quarterh
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
Two Hundred Forty One Thousand Four Hundred Fifty Dollars ($241,450.00).
C. A late payment fee of ten percent (10%) will be assessed it' CITY receives
any payment later than the thirtieth (30") day after that payment is due but unpaid. In
addition, one and one-half percent (1 '/) interest per month shall be added for each month the
payment hereunder is due but unpaid.
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2. STATENIENT OF INTENT
The amounts reimbursed to CITY pursuant to this Agreement Nyill 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.
13. 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 017I71CIALS
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 017 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.
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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. TERIM
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 DEVE..L.OPER's agent or to CITY as the situation shall warrant, or by enclosing
the same in a sealed envelope. postage prepaid, and depositing the saute 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 oT 1-luntington Beach Bella Terra Associates, LLC
A'I"I-N: I lavden Beckman c/o DJM Capital Partners
2000 Main Street Attn: Kristofer Golder
Huntington Beach. CA 92648 777 Edinger Avenue. Suite 133
1 luntimtton Beach. CA 92647
9. MODIFICATION
No waiver or modification of any language in this Agreement shall be valid unless in
writing and duty executed by both parties.
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10. SECTION 1-11-ADINGS
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 AGREI MEN'T
The language of' all parts of this Agreement shall in all cases be construed as a
whole, according to its I'air meaning, and not strictly for or against any of' the parties. If anv
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 Lender 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 anv 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 aftected 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
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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 Slates and shall, in particular, comply with the provisions of the
United States Code regarding employment verification.
14. LE-GAL SERVICES SUBCONTRACTING PROF11131TED
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 Lluntington
Beach Citv Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and
CITY shall not be liable for payment of any le services expenses incurred by DEVELOPER.
15. ATTORNEY'S FEL'S
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 hereinbclow 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.
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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 1016&,p/ .20 o7�
DEVELOPER,
CITY OF HUNTINGTON BEACH, a
BEL LLLC, municipal corporation of the State of
California
By: —
Mayor
iinntn e ---��
ITS: (circle one)Chairman'PresidenFNice President
AND City Clerk
INITIATED AND APPROVED:
By:
t' /'%� 01 eOAI Lt L- 4-YZ- Director of Community Development
print name
ITS: (circle one) Sec /Chief Financial
Officer/Asat.Secretary—Treasurer
REVIEWED AND APPROVED AS TO
CONTENT:
City Manager
APPROVED AS TO FORM:
City Attorney
rjagreunlywidusurincVrcim6msJ-07 7 of 7
COUNTERPART
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 CV& tz r`q77-' 20 ,21 .
DEVELOPER,
CITY OF HUNTINGTON BEACH, a
BELLA TERRA ASSOCIATES, LLC, municipal corporation of the State of
California
By.
Mayor
print name
ITS: (circle one)Chairman/PrcsidenWlce President
AND City Clerk Ioao/,A/jr.
INITIATED AND APPROVED:
By: u e.
Director of Community Development
prim name
ITS: (circle one) Secretary/Chief Financial
Officer/Asst. Secretary—Treasurer
M
ND PPROVED AS TO
City Manager
APPRO ED AS TO •ORM:
T. ty Attorney
COUNTERPART r�^v
g/apedci"1WsurfiuVrcimWn3-07 7 of 7
_ City of Huntington Beach
2000 Main Street ♦ Huntington Beach, CA 92648
(714) 536-5227 ♦ ivAvNv.huntingtonbeachca.gov
aEs�u.nm•'� �
Office of the City Clerk
Robin Estanislau, City Clerk
October 21, 2021
Bella Terra Associates, LLC
c/o DJM Capital Partners
Attn: Kristofer Golder
777 Edinger Avenue, Suite 133
Huntington Beach, CA 92647
Dear Mr. Golder:
Enclosed are fully executed copies of the "Professional Services Contract between the
City of Huntington Beach and LSA Associates, Inc. for Preparation of Environmental
Impact for Bella Terra Residential Units" and the 'Reimbursement — Planning —
Agreement between the City of Huntington Beach and Bella Terra Associates, LLC for
Costs Incurred for Preparation of Environmental Impact Report for Bella Terra
Residential Units" approved by the Huntington Beach City Council on October 19, 2021.
Sincerely,
Robin Estanislau, CIVIC
City Clerk
RE:ds
Enclosure
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