STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 8, 2022
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Robert Reber, Community Development Director SUBJECT: Contract Amendment for Environmental Review of D.R. Horton’s Residential Development Proposal for 215 Skelly RECOMMENDED ACTION:
Adopt a resolution (see Attachment 1) authorizing the City Manager to execute an amendment to an existing agreement with First Carbon Solutions (FCS) to provide planning services and to prepare an Initial Study/Mitigated Negative Declaration (IS/MND) and associated technical studies for the proposed Skelly Development Project at 215 Skelly for an amount not to exceed $146,900, as described in the proposal for services (see Exhibit A).
DISCUSSION:
Homebuilder D.R. Horton has indicated to City staff its intention to submit an application to develop the 7.3-acre former horse ranch at 215 Skelly (Assessor’s Parcel Number 404-020-012-5). The proposed project would remove the existing structures, trees, and vegetation and would construct 40 single-family homes. Under the California Environmental Quality Act (CEQA), the City is required to prepare and release for public comment an environmental assessment of the project prior to approving the project. The environmental review commences with preparation of an initial study (IS) to identify and confirm the level of potential impacts. Based on staff’s preliminary understanding of the proposed project, it appears that a Mitigated Negative Declaration (MND) may be appropriate for the project.
Although D.R. Horton has not yet submitted a project application, D.R. Horton in late 2021 paid the City an $88,000 deposit fee and requested that the City initiate the required environmental review of the project so that the project would be ready sooner for public review and consideration. Thus the City in November 2021—under the City Manager’s spending approval authority—entered into a $50,000 preliminary contract with FCS, a pre-qualified consulting firm, to immediately begin work on the environmental review. FCS provided the City a follow-up proposal to conduct and complete the project’s entire environmental review for an amount not to exceed $146,900. The Scope of Work reflects the level of effort required to prepare an IS/MND, but also includes planning entitlement services to be provided by MIG, another pre-qualified consultant services firm, in this case acting as a subcontractor to FCS. Because the full amount of the contract exceeds the City Manager’s spending authority, City staff recommend that the City Council approve the contract amendment.
FISCAL IMPACT OF RECOMMENDATION:
Per the City’s Master Fee Schedule, applicants are responsible for reimbursing the City for all expenditures, plus 20%, incurred in processing a development review application. On November 9, 2021, D.R. Horton paid the City an initial deposit fee of $88,000, sufficient to cover the initial $50,000 services agreement the City and FCS entered into on November 30. Before the City expends any funds beyond the initial $88,000 deposit amount—and no later than submittal of a development review application—D.R. Horton will be required to pay an additional $88,280 to the City ($176,000 total), to cover the full cost of the FCS contract, plus 20%. Thus D.R. Horton as the applicant bears the full cost of the entitlement review, and there is no impact to the City’s budget or finances.
ATTACHMENTS:
Attachment 1 – Resolution
Exhibit A – First Carbon Solutions Proposal for Services Staff report to City Council —March 8, 2022 Page 1
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