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EA-7.1 (12.8.21) FUNDING AGREEMENT FOR PROFESSSIONAL ENVIRONMENTAL REVIEW SERVICES FOR A PRIVATE PROJECT This funding agreement for professional environmental review services ("Agreement") is made and entered into this 19th day of October, 2022 ("Effective Date"), by and between the City of Redlands, a municipal corporation (hereinafter "City") and MCKERNAN, INC, a California Corporation (hereinafter "Applicant"). City and Applicant are sometimes individually referred to herein as a "Party" and, together, as the "Parties." RECITALS WHEREAS, Applicant has filed an application with City for a proposed a Historic Resources Assessment of the property (the "Project") located at 130 Sierra Vista Drive in Redlands, San Bernardino County, California, San Bernardino Assessor Parcel No. 0176-173-09-0000 that requires environmental review pursuant to the California Environmental Quality Act ("CEQA"); and WHEREAS, City, as Lead Agency, has determined that an Initial Study (the "IS") for the Project will be required pursuant to Section 15063 of the State CEQA Guidelines; and WHEREAS, the IS will be prepared by a consultant approved by and under contract to City; and WHEREAS, by executing this Agreement, Applicant expressly agrees to advance payment for all costs and expenses the City incurs in the preparation of the IS related to Applicant's Project and for any associated investigations, environmental studies, and documents permitted or required by CEQA or other federal or state law in connection with the processing of Applicant's Project (collectively, the "Environmental Documents"); NOW, THEREFORE, in consideration of the mutual promises contained herein, the City of Redlands and McKernan, Inc. agree as follows: AGREEMENT Section 1. Funding Obligation. Within ten (10) days of the date of written request of City, Applicant shall deposit the sum of nine thousand nine hundred twenty-seven dollars and fifty cents dollars ($9,927.50) (the "Deposit") with City to engage a professional consultant who will commence work on the Environmental Documents. The present estimated cost of the Environmental Documents is estimated to be nine thousand twenty-five dollars ($9,025), and the contract administration fee is nine hundred twenty-five dollars and fifty cents ($902.50). Applicant acknowledges that Applicant is obligated by this Agreement to pay to City the full, actual cost for the preparation of the Environmental Documents, as deemed reasonable or necessary by City, to ensure the legal sufficiency of the Environmental Documents. The Deposit will be applied towards the actual total cost of the Environmental Documents. Applicant shall thereafter make payments to City for the balance of City's costs for preparation of the Environmental Documents within ten (10) days of the date City submits written invoices to Applicant. 1 L:\ca\Agreements\130 Sierra Vista Project_ Developer Funding Agreement.EA-7.1-FY22-0055.docx-jm