TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Scott Agajanian, Economic Development Director
PREPARED BY: Martha Coleman, Management Analyst
SUBJECT:
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Approve a Deposit/Reimbursement Agreement with Murrieta Hot Springs Resort for On-Call Historical Preservation Consulting Services related to the Mills Act
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RECOMMENDATION
recommendation
Approve the Deposit/Reimbursement Agreement between the City of Murrieta and Murrieta Hot Springs Resort LP in connection with the agreements with Applied EarthWorks, Stantec, and SWCA for on-call historic preservation services required to undertake Mills Act obligations in connection with the Murrieta Hot Springs Resort;
Authorize the Mayor to execute the agreement; and
Upon agreement approval, all costs associated with these services will be funded by Murrieta Hot Springs Resort.
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PRIOR ACTION/VOTE
None.
CITY COUNCIL GOAL
Aggressively pursue economic development.
DISCUSSION
The Murrieta Hot Springs Resort LP (MHSR) has inquired with the City of Murrieta (City) about pursuing a Mills Act designation for certain buildings within their property. The Mills Act is a body of California state law, specifically, California Government Code Sections 50280-50290, that encourages the preservation of qualified historic structures by reducing property taxes for owners who agree to rehabilitate and maintain their properties to their historic integrity.
Chapter 16.26 of the Murrieta Municipal Code (MMC) addresses cultural resource preservation, including criteria for designating historic preservation and a process. However, this section of the MMC needs to be updated, as it has not been revisited since 2001 and some aspects are no longer relevant.
Based on the specialized technical expertise required to assist Murrieta Hot Springs Resort LP with its pursuit of a Mills Act designation, on March 24, 2025, staff issued a Request for Proposals for on-call historic preservation consulting services. The solicitation period closed on April 24, 2025. Nine proposals were received; five were deemed responsive, while four did not meet the minimum required criteria and were disqualified.
Following a thorough evaluation process, three firms were selected to be on-call consultants for historic preservation services based on their qualifications, experience, and overall responsiveness to the scope of work: Stantec Consulting Services, Inc., Applied EarthWorks, Inc., and SWCA Environmental Consultants. These firms will provide as-needed historic preservation services to support the City’s obligations under the Mills Act and related programs. The value of each of these agreements is less than $75,000 and therefore within the City Manager’s signature authority.
The attached Deposit/Reimbursement Agreement will require MHSR to make and replenish, as needed, a deposit for costs the City will incur with any of these historic preservation consultants as MHSR pursues a Mills Act designation.
FISCAL IMPACT
There is no direct fiscal impact on the City’s General Fund. A deposit in the amount of $15,000 has been requested from MHSR to fund the historic preservation consulting services. All costs associated with the services provided by Stantec Consulting Services, Inc., Applied EarthWorks, Inc., and SWCA Environmental Consultants and any other allowable expenses will be paid from this account, in accordance with the terms of the Deposit/Reimbursement Agreement. Additional funds may be required if costs for their services exceed the initial deposit amount.
ATTACHMENTS
1. Deposit/Reimbursement Agreement - MHSR and City of Murrieta