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CITY OF COLTON Item #7 <br />AGENDA REPORT <br />FOR THE COUNCIL MEETING OF FEBRUARY 17, 2004 <br />TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL <br />FROM: David R. Zamora, Community Development Director <br />SUBJECT: Approval to Amend Professional Services Agreement with Michael <br />Brandman Associates (MBA) to Provide Professional Environmental <br />Services/CEQA Processing for the Pacific Rail Industries Rail <br />Dismantling and Salvage Operations Facility <br />DATE: February 9, 2004 <br />BACKGROUND: <br />In 1986, Pacific Rail Industries (the "applicant"), located at 785 East "M" Street, received approval <br />of a Conditional Use Permit (CUP #C-5-86), File Index Number #C-5-86, to operate a rail <br />dismantling and salvage operations facility. On June 19, 2001, the applicant submitted an <br />application to modify their existing CUP (#C-5-86) to allow the installation of a steel shredder. The <br />proposed modifications to their CUP required an Environmental Impact Report (EIR). On <br />September 3, 2002, the City Council approved a Professional Services Agreement in the amount <br />of $75,633 with Michael Brandman Associates (MBA) for preparation of the EIR for the Pacific <br />Rail Industries Rail Metal Shredder Project. Subsequent to Council's approval, three (3) budget <br />augments increased the contract amount to $82,562. All costs for the project are being paid by <br />Pacific Rail Industries; there is no impact to the City General Fund. <br />On June 3, 2003, the Council approved the First Amendment to the MBA Professional Services <br />Agreement to increase the Scope of Work and increased the Budget in the amount of $45,842 to <br />address the applicant's request to add (1) transloading activities and (2) increase the amount of <br />material that may be stored overnight at the facility. <br />Staff is now requesting approval of a Second Amendment to the MBA Professional Services <br />Agreement in the amount of $28,000, to cover work beyond that provided in the original Scope of <br />Work and Budget. The City Attorney prepared the Second Amendment to the Agreement. <br />ANALYSIS/DISCUSSION: <br />MBA completed and submitted to staff the First Administrative Draft EIR on the project. Due to <br />extensive internal comments, staff requested extensive revisions and a preparation of a Second <br />Administrative Draft EIR, though it was not covered in the Scope of Work. In addition, resolution <br />of environmental issues, especially air quality issues, required MBA to conduct significant <br />investigation, problem solving, consultation and coordination with sub -consultants beyond what <br />was provided in the Budget. Therefore, a Second Amendment to the Scope of Work and Budget <br />is required to address the work, as well as additional investigations required by MBA. The <br />applicant will pay for the increase to the contract. <br />ALTERNATIVES: <br />Reject the staff's request for approval of a Second Amendment to the MBA Professional Services <br />Agreement in order to revise the EIR currently being processed for the revised project. However, <br />such an action would likely mean that the applicant would prepare additional environmental <br />analysis and the consultants used would not be working under the direction and review of the City. <br />