STAFF REPORT
17 Meeting Date:
August 12, 2025
SUBJECT: MEMORANDUM OF UNDERSTANDING WITH SOUTHERN CALIFORNIA
ASSOCIATION OF GOVERNMENTS FOR ENVIRONMENTAL REVIEW
ASSOCIATED WITH DOWNTOWN SPECIFIC PLAN PHASE II
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to execute a memorandum of understanding, in a form approved by the City Attorney, with the Southern California Association of Governments for environmental review associated with the Downtown Specific Plan Phase II update with an expenditure in an amount not to exceed $177,388; and
2. Find the action does not constitute a project within the meaning of the California Environmental Quality Act under State CEQA Guidelines Section 15378.
Appropriation: $0 Fund: N/A
Submitted By: . Approved:
Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
SUMMARY OF THE MATTER
In 2019, the City Council decided to complete the comprehensive update to the Downtown Specific Plan (“DSP”) in two phases. Phase I, adopted in 2020 and implemented in 2022, included streamlining of the business permitting process and new parking standards for non-residential uses. The housing, building height, and parcel merger components of the DSP update were deferred until Phase II, to be addressed separately and in coordination with the Housing Element update. The Housing Element update was completed and certified by the California Department of Housing and Community Development in February of 2023. The City Council has directed staff to prepare a Program Environmental Impact Report (“EIR”) to initiate Phase II of the DSP update (the “DSP Phase II update”).
On October 5, 2023, the City was awarded a $200,000 competitive grant from the Southern California Association of Governments (“SCAG”) via its Sustainable Communities Program to substantially fund the EIR and associated public outreach efforts.1 The consultant selection process for the EIR was delayed for a time due to potential state budget deficits affecting the SCAG grant. After funding was re-secured, SCAG released an RFP for the DSP Phase II update but received no response from the SCAG bench of consultants. 1 To increase the likelihood of a grant award, the City’s grant application identified The Kennedy Commission as a co-applicant.
The Kennedy Commission is tasked with conducting certain public outreach efforts for the project, including meetings with Downtown focus groups and local housing-related organizations. The feedback obtained by the Kennedy Commission will be submitted to the City and included as public comment on the DSP Phase II update for consideration by the City’s hearing bodies.
MEMORANDUM OF UNDERSTANDING WITH SOUTHERN CALIFORNIA ASSOCIATION
OF GOVERNMENTS FOR ENVIRONMENTAL REVIEW ASSOCIATED WITH DOWNTOWN
SPECIFIC PLAN PHASE II
August 12, 2025
SCAG subsequently released another RFP, which was successful. On May 1, 2025, the City and SCAG chose CSG Consultants to prepare the EIR with the assistance of a subconsultant team to provide support on technical studies. The services to be provided are detailed in the attached proposal (Attachment 2).
SCAG has negotiated a final cost proposal with CSG Consultants. As indicated in the table below, an additional $17,388 in match contributions from the City is required to meet the current cost proposal.
Project Costs
CSG Consultants $367,015.50
The Kennedy Commission $10,372.50
Total Program EIR Cost $377,388.00
Available Funding
REAP 2.0 Grant Award $200,000
Prior City Council Appropriation $160,000
Total Funding Available $360,000
Funding Gap $17,388.00
Next Steps
CSG Consultants will be given notice to proceed once contracts are executed. The EIR is projected to be ready for presentation to decision-making bodies within 11 months of the notice to proceed.
In order to prepare an adequate environmental analysis, the City must first solidify the scope of the DSP Phase II update. City staff presented an outline of the draft Phase II updates to the City Council, Planning Commission, and Housing and Human Services Committee between December 12, 2023 and February 28, 2024. Due to the amount of time that has lapsed since the City Council’s last opportunity to provide direction to staff on the scope of this project, staff will be returning to the City Council in the fall to request additional direction.
FINANCIAL ANALYSIS
The City Council budgeted $160,000 for FY 2024-2025 for this project. No funds were expended, and as such, the full amount will roll over into FY 2025-2026. The Community Development Department’s current Fiscal Year 2025-2026 operating budget has sufficient funding for the additional $17,388 cost from salary savings from vacant positions.
ENVIRONMENTAL ANALYSIS
MEMORANDUM OF UNDERSTANDING WITH SOUTHERN CALIFORNIA ASSOCIATION
OF GOVERNMENTS FOR ENVIRONMENTAL REVIEW ASSOCIATED WITH DOWNTOWN
SPECIFIC PLAN PHASE II
August 12, 2025
The recommended action consists of organizational or administrative activities of the City that will not result in a direct or indirect physical change in the environment and/or the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment, and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; 14 CCR Section 15378(b)(5) and (4), respectively.) Here, the proposed action includes allocations of funds to prepare a Program EIR, which does not commit the City to adopting an amendment to the DSP.
ATTACHMENTS
1. Draft Memorandum of Understanding with SCAG (Pgs. XX-XX)
2. CSG Consultants Proposal (Pgs. XX-XX)
Report Prepared By: Coordinated With:
Anthony Viera, Planning Manager Michelle Bannigan, Finance Director Jane Abzug, Assistant City Attorney
Kate Kazama, Associate Planner