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City of Marina City Council Agenda Item No. 8g(1)11-07-12.pdf

City of Marina City Council Agenda Item No. 8g(1)11-07-12.pdf

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Published by L. A. Paterson
California-American Water Company Test Slant Well Application
California-American Water Company Test Slant Well Application

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Published by: L. A. Paterson on Apr 27, 2013
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09/23/2014

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October 31, 2012 Item No.
8g(1)
 Honorable Mayor and Members City Council Meetingof the Marina City Council of November 7, 2012
CITY COUNCIL CONSIDER ADOPTING RESOLUTION NO. 2012- ,APPROVING A FEE AGREEMENT BETWEEN THE CITY OF MARINAAND CALIFORNIA AMERICAN WATER FOR PROVISION OFPLANNING AND ATTORNEY SERVICES RELATED TO REVIEW ANDPROCESSING OF A SLANT TEST WELL PROJECT LOCATED AT THENORTH-WEST CORNER OF THE LONESTAR CALIFORNIA, INC. SITE,MARINA (APN
’S 203
-011-019 & 203-011-001); AUTHORIZING THEFINANCE DIRECTOR TO MAKE THE APPROPRIATE ACCOUNTINGAND BUDGETARY ENTRIES, AND; AUTHORIZING THE CITYMANAGER TO EXECUTE THE FEE AGREEMENT ON BEHALF OF THECITY SUBJECT TO FINAL REVIEW AND APPROVAL BY THE CITYATTORNEYREQUEST:
It is requested that the City Council consider:1.
 
Adopting Resolution 2012- , approving a Fee Agreement between the City of Marina andCalifornia American Water for provision of planning and attorney services related toreview and processing of a slant test well project located at the north-west corner of theLonestar California, Inc. site, Marina (
APN’S 203
-011-019 & 203-011-001), and;2.
 
Authorizing the Finance Director to make the appropriate accounting and budgetaryentries, and;3.
 
Authorizing the City Manager to execute the Fee Agreement on behalf of City subject tofinal review and approval by the City Attorney.
BACKGROUND:
On October 19, 2012, California American Water submitted an application (at the time of report preparation the application is incomplete) for a Coastal Development Permit for a slant test wellfor the Monterey Peninsula Water Supply Project (MPWSP). The applicant is proposing toconstruct a slant test well facility at the north-west corner of the Lonestar California, Inc. site toobtain field data concerning geologic, hydro-geologic and water quality characteristics of theSand Dunes Aquifer, Salinas Valley Aquitard, and 180-Foot Aquifer. This data will be used todesign the MPWSP system. The project consists of a slant test well, a monitoring well cluster, asubsurface beach diffuser system and electrical panel with conduit.Fees for review of smaller and/or less complex project proposals are usually based upon a fixedfee schedule for the provision of a specified list of City review services. Pursuant to CityOrdinance No. 2007-07 and Resolution No. 2007-153, fees for the review of larger and/or more
complex projects are based upon “cost of service” according to an agreement between the
applicant and the City.Entitlement review for this project includes environmental review and conduct of a PlanningCommission Public Hearing for review and consideration of a Coastal Development Permit.This project will also require preparation by the City Attorney of an Indemnification Agreementto be executed by California American Water.
59
 
ANALYSIS:
Due to the complexity of the project, planning and attorney costs related to review and processing of the proposed project will differ from the fixed fee that would otherwise be
assigned to the project according to the City’s fee sch
edule.A draft Fee Agreement has been prepared by the City Attorney
(“EXHIBIT
A
”)
. The FeeAgreement allows for recovery of costs for necessary project review to ensure compliance with
the City’s Local Coastal Plan, General Plan and the California Envir 
onmental Quality Actrequirements.To date, staff, in consultation with City CEQA Council Rutan & Tucker, expended resources toreview several project descriptions, and these staff hours and consultant expenses have already been invoiced as a deposit for the Fee Agreement to ensure full cost recovery.The Fee Agreement also includes time required by the City Attorney, CEQA Counsel and Citystaff during preparation of the environmental document, the Indemnification Agreement, staff reports and one Public Hearing of the Planning Commission. It includes adequate time for staff to respond to numerous anticipated public inquiries related to the project.At the time of writing of this staff report, due to incomplete information, the determination as tothe type of environmental document needed was not yet made. Preparation of an InitialStudy/Mitigated Negative Declaration or Environmental Impact Report will require an additionaldeposit to the account in an amount yet to be determined.Upon conclusion of the project, should any funds remain in the Fee Agreement account, theywill be returned to the applicant.
FISCAL IMPACT:
 Should the City Council approve this request, all costs associated with the review and processingof this project will be borne by the applicant and reimbursed through the authority of the FeeAgreement between the parties.Specifically, on October 19, 2012, the applicant was invoiced for $5,500 for costs accruedthrough October 7, 2012 plus funds to prepare the Fee Agreement. The Fee Agreement providesfor a second deposit of $15,000 for entitlements and an as yet to be determined amount for CEQA. Further, the Fee Agreement requires additional deposit(s) as necessary to reimbursecosts beyond the deposit amount should they occur.The applicant deposits will be credited to Fee Agreement Revenue Account No.11.161.56310.4044, with associated expenditures recorded in Fee Agreement ExpenditureAccount No. 11.161.65892.4044.
CONCLUSION:
The request is submitted for City Council consideration and possible action.
60
 
 Respectfully submitted, ____________________________ Theresa Szymanis, AICPPlanning Services Manager City of Marina
REVIEWED/CONCUR:
  _____________________________ Christine di Iorio, AICPCommunity Development Director City of Marina _____________________________ Douglas A. YountInterim City Manager City of Marina
61

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