Agmt21 Reimbursement The Sobrato Organization

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REV: 07-22-2021 VR attributable to the administration of Consultant Contracts entered into by City under this Agreement. (b) On a monthly basis, City will provide to Developer a summary report on the fees incurred by City's team of Consultants and City staff, the percentage of the deposit that has been expended by City on its evaluation of the Project, and the amount remaining available for billing. Section 4.02. CEQA Non-Refundable Deposit. (a) Developer’s Project is located within the Downtown Precise Plan (“DTPP”). The City will conduct a programmatic level environmental review for amendments to the DTPP that will consider Developer’s Project and five other projects in the DTPP (“DTPP CEQA Review”). Because five of the projects are generally of similar size and one is smaller, the costs of the DTPP CEQA Review will be split such that the five similar size projects, of which Developer’s Project is one, will each pay 18 percent and the one smaller project will pay 10 percent of the DTPP CEQA Review costs. (b) On June 28, 2021, the City Council approved an Agreement for Services with Environmental Science Associates (“ESA”) for an amount not to exceed Seven Hundred Seventy- Five Thousand Two Hundred and Twenty-Two Dollars ($775,222) for the DTPP CEQA Review (“ESA Scope”). In addition to the ESA Scope, the cost of the DTPP CEQA Review will include among other things time spent by City staff, consultants, and special legal counsel for an anticipated total cost of One Million Twenty Thousand Dollars ($1,020,000) (the “Anticipated CEQA Costs”). On or before the Effective Date, Developer shall pay to the City a non-refundable amount equal to 18 percent of the Anticipated CEQA Costs or One Hundred Eighty-Three Thousand Six Hundred Dollars ($183,600) in the form of a wire transfer of good funds. (c) In the event that DTPP CEQA Review costs increase beyond the Anticipated CEQA Costs, Developer agrees to pay any additional costs in accordance with the percentages identified in (a) above. Notwithstanding the foregoing, Developer agrees that should any of the other projects withdraw, Developer will pay an equivalent share of the additional DTPP CEQA Review costs with the remaining applicants. For example, if one of the five similar size project withdraws its application, the four remaining projects will each pay one-fourth of 90 percent of the additional costs; however, if the smaller project withdraws, each of the remaining projects will each pay one-fifth of 100 percent of the additional costs. Section 4.03. Evergreen Deposit and CEQA Deposit. (a) City shall establish and Developer shall fund a deposit account designed to ensure that City is never required to perform work for which reimbursement funds have not been previously deposited (“Evergreen Deposit”). The Evergreen Deposit shall contain funds necessary to cover three months’ worth of budgeted expenditures by City relating to City’s review, evaluation, consideration, and processing of the Project (including any project specific CEQA review necessary for such review, evaluation, consideration, and processing). Developer shall fund the Evergreen Deposit initially by depositing with City on or before the Effective Date the sum of Fifty Thousand Dollars ($50,000) in the form of a wire transfer of good funds. Developer ATTY/AGR.2021.195/The Sobrato Organization (Page 3 of 9)