DATE: May 19, 2025
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Sofia Mangalam, Community Development Director
Helen Gannon Telfer, Senior Planner
DEPARTMENT: Community Development
SUBJECT: TASK ORDER WITH PLACEWORKS IN THE AMOUNT OF
$139,919 TO PROVIDE ENVIRONMENTAL REVIEW AND
DOCUMENTATION (INITIAL STUDY) FOR GILEAD CHESS
HATCH MASTER PLAN LOCATED AT 1155, 1165, AND 1185
CHESS DRIVE, FOSTER CITY (EA2025-0001); AUTHORIZING A
5 PERCENT CONTINGENCY IN THE AMOUNT OF $6,996
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing the Mayor to execute Task Order PLWS-2025-01 with PlaceWorks, Inc. in the amount of $139,919, to provide environmental review and documentation (Initial Study) for the proposed 800,000 square feet (SF) of biotechnology or research and development uses, located at 1155, 1165, and 1185 Chess Drive (Gilead Chess Hatch Master Plan); authorizing a 5 percent contingency in the amount of $6,996 and authorizing the City Manager to execute any necessary amendments to the Task Order up to that amount; and finding the authorization of the Task Order exempt under California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).
EXECUTIVE SUMMARY
The Chess Hatch Master Plan was evaluated in an Environmental Impact Report (EIR) that was certified in November 2009 (State Clearinghouse No. 2008122065) and subsequently amended with an Addendum in 2013 (herein referred to as the Master Plan
EIR). The Master Plan EIR analyzed demolition of 190,000 SF of existing buildings and development of 800,000 SF of new office uses (including flexible space for retail and other amenities), for a net new development amount of 610,000 SF. On September 3, 2013, the City Council approved a General Development Plan (GDP) to allow up to 800,000 SF of office, biotechnology, or research and development on the Chess-Hatch property via City Ordinance No. 573 followed by Planning Commission approval of the Use Permit for the Project.
On February 14, 2025, the applicant submitted a Preliminary Review application for Gilead Campus Expansion project on the subject property for construction of up to a maximum of 800,000 square feet of biotechnology or research and development.
An Initial Study is a preliminary analysis prepared by the lead agency (usually the city or the county having primary jurisdiction over the project but may also be state agencies) to determine appropriate environmental review and documentation for a Project. For the proposed 800,000 SF of biotechnology or research and development uses in the Gilead Chess Hatch Master Plan, an Initial Study is required to prepare new and update certain technical studies for CEQA review.
Staff is recommending authorizing the Mayor to execute Task Order PLWS-2025-01 with PlaceWorks in the amount of $139,919 and a 5 percent contingency in the amount of $6,996, to prepare an Initial Study for the proposed project (Attachment 2, Exhibit A) and finding the authorization of the Task Order exempt under California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).
BACKGROUND/ANALYSIS
On September 3, 2013, the City approved a Master Development Agreement (DA) to develop the Chess Hatch Master Plan on the Chess-Hatch Property via City Ordinance No. 574. Additionally, a General Development Plan/Rezoning was approved via Ordinance 573 as follows:
“The City of Foster City Zoning Map is hereby amended to reclassify the +/- 11.9-acre land bounded by Chess Drive, Foster City Boulevard, and State Route 92 (APNs: 094- 010-100, -500, -510) to change the Zoning designation from M-1/PD (Light Industrial/Planned Development) to C-M/PD (Commercial Mix/Planned Development) with a General Development Plan to allow up to 800,000 square feet of office, biotechnology, or research and development uses and parking structures and at-grade parking lots; accessory uses, such as commercial, industrial or light assembly uses which are incidental or supportive to the primary office, biotechnology or research and development uses; or other uses which, in the opinion of the planning director, are similar to and no more offensive than the above-listed uses; with up to 5,000 sq. ft. of the total Project square footage to be used for retail, restaurant or other business-supporting ancillary commercial amenities; except that the following uses are excluded: housing, schools, day care, and other uses primarily serving children.” On April 17, 2014, the Planning Commission approved a Use Permit and an addendum to the EIR prepared for the project. (UP-13-004 and EA-07-001B).
On March 1, 2019, a Memorandum of Extension to the DA was entered between the City and Gilead extending the initial term of the DA to September 7, 2024.
On September 7, 2024, both the Use Permit and the Master DA expired.
On February 14, 2025, the applicant submitted a Preliminary Review application for Gilead Campus Expansion project on the subject property for construction of up to a maximum of 800,000 square feet of biotechnology or research and development, in addition to a single, standalone, multi-story parking garage. The proposed project includes the following entitlements:
•An Amendment to the General Development Plan for Chess-Hatch Master Plan for the Property.
•A Vesting Tentative Map for the Property;
•A Use Permit/Specific Development Plan.
These actions will be presented to the Planning Commission and/or City Council at future meetings upon completion of the Initial Study and environmental review.
The City is seeking professional consultant services for the preparation of an Initial Study for the proposed project under CEQA. It shall be noted that EIR technical studies requirements have changed over the years since the Master Plan EIR was prepared in 2009, particularly those involving transportation impacts, have transitioned from primarily relying on Level of Service (LOS) to using Vehicle Miles Traveled (VMT) as a key metric for environmental analysis.
On March 19, 2025, an RFQ was sent out to the established list of 12 consultants on the Master Services Agreement to obtain a cost estimate and schedule (timeline) of the required environmental review for the proposed project. Staff received proposals from seven (7) out of the 12 consulting firms, including proposals from Circlepoint, David J.
Powers and Associates, Dudek, LSA, PlaceWorks, Stantec, and Urban Planning Partners, and evaluated the proposals based on the following:
•Billing Structure/Overall Cost
•Scheduling/Timeline
•Relevant Experience
•A statement demonstrating that the consultant understood the scope of work required.
The following points (out of 40) were scored for each of the seven (7) firms:
Consulting
Firm
Circlepoint David J.
Powers
and
Associates
Dudek LSA PlaceWorks Stantec UPP
Score 35 33 25 35 37 35 36
Staff then narrowed it down and received revised scopes from two (2) firms, based on the elimination of required peer reviews and the addition of separate technical reports that the project applicant would not be providing. After receiving the revised scopes, staff decided to choose PlaceWorks for the Initial Study. PlaceWorks did not require any revisions to their submitted proposal, has a good understanding of the proposed project, and has a reasonable timeline/budget. PlaceWorks has also had several recent and ongoing environmental review projects in the greater peninsula area, including San Mateo, Belmont, and San Carlos.
The consultant in their proposal has included preparing the following technical studies:
•Air Quality, Greenhouse Gas Emissions, and Energy
•Cultural Resources
•Hydrology and Water Supply
•Noise and Vibration
•Shadow
•Transportation
The proposed scope and maximum compensation for the environmental review associated with the project can be reviewed in Attachment 2.
Development projects are 100% cost recovery paid for by the applicant through a pass- through agreement planning fee deposit account (EA2025-0001). Additionally, the City would charge the standard 15% administrative fees as established in the City’s Master Fee Schedule for managing the work performed by the consultant identified in this Task Order. A Task Order is required to approve the selection of the consultant from the established on-call list.
CEQA
The request for approval of the Task Order is exempt per CEQA Guidelines Section 15061(b)(3), Common Sense Exemption (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.
FISCAL IMPACT
All costs associated with review of development projects and CEQA analysis will be paid by the project applicant.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – Task Order with Exhibit A
Attachment 3 – Master Professional Services Agreement with PlaceWorks