City of Gonzales
COMMUNITY DEVELOPMENT DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: October 2, 2023
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Reimbursement Agreement W/ D’Arrigo Bros. of California for a 137-Unit H2A Housing Proposal in the City of Gonzales’s Sphere of Influence.
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager to sign a reimbursement agreement between the City of Gonzales and D’Arrigo Bros. of California for all work related to the permit process and application for the construction of a 137-unit H2A housing project along the eastside of Fanoe Road.
BACKGROUND
Recently, Avila Construction, on behalf of the D’Arrigo Bros. of California, presented a proposal to construct a three-phase 137-unit farm worker housing proposal proximate to the city limits that would need to secure connections to the City’s utilities for sewer and water services, among others.
Per Section 2.2 of the 2014 MOA with the County of Monterey, “The County agrees as follows:
a) Consistent with County General Plan Policy LU - 2.14, mutually work with the City to support the City's proposals to manage its growth and gradually develop within UGB/SOI of the City General Plan in accordance with the approval of future Specific Plans that are prepared to implement a logical, orderly development pattern that matches the City' s ability to provide urban services.
b) To consult with the City on development projects that are proposed within the City' s Planning Area Boundary as illustrated on the City' s Land Use Diagram (Exhibit ' B') as it exists on the Effective Date of this agreement. The intent of the County is AGENDA
ITEM
10 supported by the County's General Plan Policy LU - 2.19. which County intends to implement by 1) minimizing potentially competing development within the City' s Planning Area Boundary, 2) limiting approval of new agricultural-industrial or commercial projects and by directing such development to the City' s agricultural business parks and/or light industrial areas, and 3) referring any discretionary development proposals within the City' s Planning Area Boundary to the City for comment and, for larger projects, potential annexation.
REVIEW AND ANALYSIS
This Reimbursement Agreement (attached), is standard for the City for these types of projects to undertake all the necessary work, studies and processes that will be needed. It has been reviewed by the City Attorney who helped make sure it was appropriate and will be signed by the representatives of the appropriate parties of the D’Arrigo Bros of California.
If approved, the agreement provides the mechanism for the City to get reimbursed for everything that will need to be done for this project to be processed. Specifically, as identified under section 1 of the agreement, they will reimburse the City for all the costs related to:
(a) The preparation of reports and documents for use by the City, or other entities with jurisdiction over the Project development or Property, and the processing of development applications.
(b) The review of Project applications, plans, and supporting technical reports. (c) Legal and outside counsel efforts.
(d) Public notice including legal notices in newspapers. (e) The use of planning, engineering and other consultants for the preparation or review of Project-related plans, studies and technical reports and/or general assistance.
Notwithstanding the foregoing, prior to the City retaining the services of outside consultants for the purpose of preparing specialized Project-related studies and reports, City shall provide the applicant with a written proposal from the outside consultant which includes the proposed cost to perform the services identified therein. The applicant shall have the right to review and comment upon all such proposals, and the City shall take such comments into consideration before entering into any agreement for the desired service; and (f) Public Works Improvement Plan Review.
Explain 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.
Explain: Reimbursement agreements support the Vision because they allow the City to process important development projects that would bring the jobs and economic development necessary to further the Vision of the City.
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.
Explain: Please see the Vision above.
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.
Explain: Please see the Vision above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X N/A
• Housing X Yes No N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explanation: Please see the Vision above.
ALTERNATIVES
The City Council could opt not to approve the agreement or provide other direction accordingly.
FISCAL IMPACT
There is no budget impact associated with the Reimbursement Agreement. The costs to the City to process this project are unknown at this time, but the agreement calls for an initial deposit of $25,000 and allows for an increase in the amount that will be needed if necessary and appropriate.
CONCLUSION
Staff recommends that the City Council approve and authorize the City Manager to sign a reimbursement agreement between the City of Gonzales and D’Arrigo Bros. of California for all work related to the permit process and application for the construction of a 137-unit H2A housing project along the eastside of Fanoe Road.
Attachments:
1. Reimbursement Agreement with D’Arrigo Bros. of California