(10)AR 081908 Reimbursement Agreement

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ITEM #12 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF AUGUST 19, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David R. Zamora, Community Development Director SUBJECT: Amendment of Reimbursement Agreement with SA Recycling (formerly Sims Hugo Neu West) dba Colton Iron & Metal; and Amendment of the Professional Services Agreement with Tom Dodson & Associates to Provide Professional Environmental Services/CEQA Processing for the Colton Iron and Metal Facility. DATE: August 6, 2008 BACKGROUND: On February 6, 2008, the City Council approved a Reimbursement Agreement in the amount of $75,000 with Sims Hugo Neu West, which has subsequently changed their corporate name to SA Recycling (the "Applicant'), and continues to conduct business in Colton as Colton Iron and Metal (CIM) to pay for all legal review ($15,400) and environmental services/CEQA processing ($59,600) costs for a modification to a Conditional Use Permit (CUP). The Council approved a Conditional Use Permit (Resolution No. 2843) for Hugo Neu-Proler Company (which subsequently changed their name to Sims Hugo Neu West) to establish and operate a salvage scrap iron yard at 790 East "M" Street on December 5, 1967. The modification to the CUP is required in order to legalize various un -permitted structures and improvements (the "Proposed Project') made on the facility site that consists of 3.5 acres. In addition to approval of the Reimbursement Agreement with SA Recycling, the City Council also approved a Professional Services Agreement ("PSA") in the amount of $59,600 with Tom Dodson and Associates for the environmental services/CEQA processing costs for the CIM proposed project. Subsequent to the original project submittal, the Applicant has revised the proposed project that now includes an expansion of an additional 4.5 acres of vacant land to the project site, construction of a new scale house, a 10,000 square foot building, additional landscaping, additional parking and storage areas, and the relocation of the primary ingress/egress onto the facility. The proposed expansion of the facility and project site has created a change in the scope of services for the project and additional environmental work is required by the environmental consultant to adequately prepare a draft Initial Study. Staff is requesting approval to amend the Reimbursement Agreement with SA Recycling to increase the budgeted amount for the environmental consultant services in the amount of fourteen thousand five hundred dollars ($14,500); and to amend the Professional Services Agreement with Tom Dodson and Associates to increase the budgeted amount for environmental services/CEQA processing in the amount stated above ($14,500).