City of Gonzales
COMMUNITY DEVELOPMENT DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: April 3, 2023
FROM: Taven Kinison Brown, Community Development Director THROUGH: Trevin W. Barber, City Manager
SUBJECT: Authorize the City Manager to Execute a Professional Services Agreement with Willdan Financial Services Not to Exceed $7,500 to Prepare a Single-Focus Impact Fee Study and Determine an In-Lieu Fee for the Costs of Development Restriction Easements to Mitigate the Conversion of Agricultural Lands to NonAgricultural Uses in the Vista Lucia Specific Plan Project Area and City Annexation Areas
RECOMMENDATION
Staff recommends the City Council:
Authorize the City Manager to execute a professional services agreement with Willdan Financial Services not to exceed $7,500 to prepare a single-focus impact fee study and determine an in-lieu fee formula for mitigating the conversion of agricultural lands to non-agricultural uses in the Vista Lucia Specific Plan project area and City annexation areas.
BACKGROUND
Additional expenses, similar to municipal impact fees, come into play for the development community when they consider the conversion of protected agricultural land. New City Ordinance 12.150 requires mitigation for the conversion of agricultural lands. To facilitate a determination of the appropriate appraisal value and formula for securing development restrictions on comparable agricultural properties proximate to the City of Gonzales the City needs to engage a financial services company who will subcontract an appraisal firm that is competent in the valuation of such development restrictions placed on comparable agricultural property.
AGENDA
ITEM
6 Willdan Financial Services was previously hired by the City to prepare the City’s Impact Fee Study for the Specific Plan SOI areas and City-wide and that work was presented to and adopted by Council on May/June 2022. This minor contract continues in that vein. Once the in-lieu (Agricultural Impact) fee structure formula is determined, it will be readdressed and updated as may be necessary biennially when the City updates for the City.
REVIEW AND ANALYSIS
This minor single-source contract continues in the same vein as the impact fee work presented by Willdan previously and adopted by Council in May 2022. Once the in-lieu (agricultural impact) fee structure formula is determined, it may be readdressed and updated biennially when the City regularly updates impact fees and other development related fees for the City.
Having a determined in-lieu fee structure in place will allow current development interests, such as Pembrook Development and the Vista Lucia Specific Plan project proponents to calculate agricultural mitigation fees for tentative subdivision maps soon to be proposed once specific plans have been adopted and the Sphere of Influence areas have been incorporated into the City of Gonzales.
Explain the Recommendation and How it Supports the Vision Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explanation: Completing the calculations for this “missing impact fee,” at the City’s direction will allow project proponents to calculate agricultural mitigation fees for tentative subdivision maps and remain engaged with the City moving forward to construct new housing and new community for all income groups within Gonzales’s new city limits.
Explain how the Recommendation Directly Implements the Mission The City Council and staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explanation: Completing the calculations for this “missing impact fee,” at the City’s direction will allow project proponents to calculate agricultural mitigation fees for tentative subdivision maps and remain engaged with the City moving forward to construct new housing and new community for all income groups within Gonzales’s new city limits.
City services will be delivered in a cost-effective, respectful, and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explanation: Offsetting the cost of developing the agricultural mitigation fees will be provided through the Reimbursement Agreement and funding provided through Pembrook Development to further their interests in entitling the VLSP Vista Lucie Specific Plan.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explanation: See the explanation above for the Vision.
ALTERNATIVES
The City could go out more broadly with a new general RFP request that would entail a week to prepare, three weeks to review by the consultant community, another week to evaluate the proposal, and then several additional weeks to return to the City Council to authorize a new contract. Then work could begin.
The current single source proposal presented here honors the City’s earlier efforts to determine Impact Fees through Willdan’s study and efforts, yet City staff was not in a position to give direction to Willdan at that time to determine impact expenses for Agricultural Easements.
BUDGET IMPACT
No impact on the City’s budget is anticipated through cost recovery stemming from the City’s existing Reimbursement Agreement with Pembrook Development.
CONCLUSION
Staff recommends the City Council:
Authorize the City Manager to execute a professional services agreement with Willdan Financial Services not to exceed $7,500 to prepare a single-focus impact fee study and determine an in-lieu fee formula for mitigating the conversion of agricultural lands to non-agricultural uses in the Vista Lucia Specific Plan project area and City annexation areas.
Attachments:
1. Agreement wih Willdan Financial Services