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CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF MAY 16, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David R. Zamora, Community Development Director SUBJECT: Approval to Amend Professional Services Agreement with Michael Brandman Associates (MBA) to Provide Professional Environmental Services/CEQA Processing for the Pacific Rail Industries Rail Dismantling and Salvage Operations Facility DATE: April 25, 2006 BACKGROUND: On November 16, 2004, the City Council approved a Modification to the Conditional Use Permit (CUP No. C-5-86) for Pacific Rail Industries to allow the relocation and re -assembly of a metal shredding facility and a fifty percent increase in transloading activity. The approval action included the Certification of an Environmental Impact Report (EIR) and Mitigation Monitoring and Reporting Program (MMRP) in compliance with the California Environmental Quality Act (CEQA). The EIR was prepared by Michel Brandman Associates, an environmental consultant under contract to the city. Pacific Rail Industries received approval of the original CUP No. C-5-86 in 1986 for the development and operation of a rail dismantling and salvage operations facility at 785 East "M" Street. On December 2, 2004, Hugo Neu-Proler Company d.b.a. Colton Iron and Metal (CIM) filed a Writ of Mandate with the Superior Court of the State of California for the County of San Bernardino alleging the City of Colton violated CEQA and contended that the EIR does not comply with CEQA in 13 areas. Due to the legal action filed by CIM, the applicant has been unable to start with the project. On October 18, 2005, the Court issued a Statement of Decision on this matter and found that the EIR was insufficient in the following areas: (1) Traffic, (2) Hazardous Materials, (3) Air Quality, and (4) Recirculation of the EIR. In order to address the inadequacies of the referenced environmental factors, and at the request of the applicant, on November 1, 2005, the City Council approved a professional services agreement with MBA in the amount of One Hundred Forty -Five Thousand Eight Hundred and Seventy -Five Dollars ($145,875.00) to prepare the required additional environmental work and for the re -circulation of the EIR as identified by the court. Staff is now requesting approval of an Amendment to the MBA Professional Services Agreement in the amount of $27,000, to cover work beyond that provided in the original Scope of Work and Budget. All costs for the project are being paid by Pacific Rail Industries; there is no impact to the City General Fund. ANALYSIS/DISCUSSION: During the preparation of the Draft EIR additional work beyond the original Scope of Work and Budget was required for the following three items: (A) Revised Traffic Study—new traffic counts were needed and evaluation of impacts of new mitigation; (B) Preparation of 2"d and TO Screen check for review of staff and the City Attorney resulted in additional labor and costs in the development of the Draft EIR that was circulated for public comment; and (C) Costs for sub-