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FINANCIAL STATEMENT Similar to the initial costs of the Agreement and the First Amendment, the Second Amendment costs would be paid in full by Nearon Enterprises, pursuant to the approved reimbursement agreement. Planning Division review and administration of the project will continue to be conducted by staff and is part of the Current Planning budget. BACKGROUND On April 15, 2014, the City Council authorized the establishment of an economic development zone program and the initiation of a pilot economic development zone along Johnson Drive encompassing up to eleven parcels. The certification of a Supplemental EIR is required to disclose the environmental effects of the Johnson Drive Economic Development Zone and meet the requirements of CEQA. Since award of the Agreement to ESA for preparation of the Supplemental EIR on July 15, 2014, staff has worked closely with the consultant team to prepare the extensive documentation required to evaluate the Johnson Drive Economic Development Zone. This documentation includes technical background studies related to air quality, noise, aesthetics, transportation and greenhouse gas emissions; a Supplemental EIR; Response to Comments Document; an Economic Impact Analysis; public noticing; and associated materials. At its March 17, 2015, meeting, the City Council approved the First Amendment to the Agreement for additional consultant and subconsultant costs associated with additional project area traffic analysis necessary for the Supplemental EIR in an amount not to exceed $66,531, raising the total Agreement amount to $208,857. DISCUSSION ESA and its subconsultants have completed the work associated with the Supplemental EIR. However, additional project analysis was required, beyond that initially anticipated by the scope of work and the First Amendment, due to multiple changes in the project description and issues requiring additional environmental and economic /fiscal analysis raised by the City Council, Planning Commission, and general public during document review periods and public meetings. Funding for this additional project analysis was not included in the original contract or as part of the First Amendment; however, Nearon agreed to pay all additional costs pursuant to the approved reimbursement agreement. Table 1 below shows a breakdown of the unforeseen consultant and subconsultant costs since approval of the First Amendment. The scopes of work associated with these additional costs are attached in Attachment 2. Table 1: Additional Consultant and Subconsultant Costs ESA Scope of Work Date Additional Cost July 28, 2015 $48,200 August 7, 2015 $66,531 December 2015 $35,565 January 16, 2016 $97,049 April 20, 2016 $47,350 May 17, 2016 $37,550 Total Additional Costs: $332,245 Page 2 of 3