CITY OF SALINAS COUNCIL STAFF REPORT
DATE: JANUARY 18, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT FROM: MEGAN HUNTER, DIRECTOR BY: LISA BRINTON, PLANNING MANAGER
SOPHIA ROME, MANAGEMENT ANALYST
TITLE: AMENDMENT NO. 1 TO MASTER AGREEMENT WITH RINCON CONSULTANTS, INC. (RINCON) FOR GENERAL PLANNING AND ENVIRONMENTAL SERVICES RECOMMENDED MOTION:
A motion to approve a resolution authorizing the Mayor to execute Amendment No. 1 to the Master Services Agreement with Rincon Consultants, Inc. (Rincon) increasing the total not to exceed compensation amount to $350,000 and approving an increase of $60,000 to the General Fund Professional Services appropriation.
RECOMMENDATION:
It is recommended that the City Council approve a resolution authorizing the Mayor to execute Amendment No. 1 to the Master Services Agreement with Rincon for general planning and environmental services increasing the total not to exceed compensation amount from $150,000 to $350,000 and approving an increase of $60,000 to the General Fund Professional Services appropriation.
EXECUTIVE SUMMARY:
Rincon has been assisting the Community Development Department since October 2017 with general planning and environmental services including, but not limited to, peer review of CEQA documents, review of Future Growth Area specific plans, and other planning efforts. Rincon has provided technical support in planning and environmental review of several key economic and housing development projects in addition to processing cannabis permits. An Agreement to provide planning and environmental services was executed on October 13, 2017 and was amended three times with a term through June 4, 2021 and total compensation not to exceed $235,000.
In May 2021, the Council approved a new two-year Master with a not to exceed compensation amount of $150,000 to continue needed general planning and environmental technical assistance with project processing and cannabis permitting through June 30, 2023 (see Attachment 2). At that time only $50,000 was appropriated for FY 2021-2022. Subsequently, under the Master Agreement, Rincon prepared scope of work and budget in the amount of $97,926.50 to provide the planning and environmental services required to process a large, mixed use development application. The project will be paid through developer deposits to the City for the full amount for services rendered by Rincon. In addition, the Current Planning Division continues to operate with limited staff resources to process multiple large development projects. More recently, one of the four full-time planners started extended family leave compounded by an existing vacant position. To address the additional scope and staffing needs, it is recommended that the City Council approved a resolution authorizing the Mayor to execute Amendment No. 1 to the Master Services Agreement with Rincon increasing the total not to exceed compensation amount to $350,000 and approve a General Fund allocation of $60,000 for costs under the Master Agreement through the end of FY 2021-2022.
BACKGROUND:
In September of 2017, the Community Development Department sent out a Request for Proposals (RFP) to Provide Contract Planning Services to planning firms (see Attachment 4). Rincon was selected to carry out the requested services including, but not limited to, review and technical analysis of administrative drafts of Environmental Impact Reports (EIRs), assisting with plan documents relating to the Chinatown Revitalization and Alisal Vibrancy Plans, and other planning and environmental services for the Future Growth Area, Accessory Dwelling Units, and technical assistance. Rincon’s expertise in providing permit processing services throughout the State, and extensive experience with cannabis regulations and permitting assistance for various local governments was a significant consideration in their selection. With their expertise, Rincon has been providing permit services for the City of Salinas’ commercial cannabis program. The original 2017 Agreement and subsequent Amendments were for planning and environmental services for the Community Development Department including environmental support, advanced planning, staff training, current planning, grant writing, and cannabis permit processing.
Timeline of Contract Execution and Amendments
October 13, 2017
Agreement for Professional Services was executed with a termination date of June 30, 2018, not to exceed $50,000
July 1, 2018
First Amendment to extend the termination date to June 30, 2019 June 4, 2019
Second Amendment approved by the City Council extending the Agreement term for two years through June 4, 2021, and increasing the not to exceed amount to $200,000
March 16, 2021
Third Amendment approved by the City Council to increase the not to exceed amount to $235,000 May 11, 2021
New two-year Master Agreement approved by the City Council with a not to exceed total compensation amount of $150,000. Only $50,000 was appropriated for FY 2021-2022.
Since 2017, Rincon has provided ongoing planning and environmental services that have supported substantial initiatives for the City. Their services have been essential in moving these projects forward. Rincon’s technical expertise and assistance has filled service gaps due to staffing shortages. Training new staff with less experience has also supported the Department by giving staff the tools and resources needed to carry out City Council strategic plan goals, initiatives, and objectives. Specific projects Rincon has supported include:
The completion of Visión Salinas planning initiatives
The Salinas Travel Center Specific Plan
Drafting an Adaptive Reuse Ordinance for the downtown and determining the appropriate environmental clearance Supporting the City’s commercial cannabis permitting processes Preparation and review of the West Area Specific Plan (WASP) and Central Area Specific Plan (CASP) Preparation and review of proposed Airport development
Planned Unit Development (PUD) at 11 Hill Circle
The Downtown Rezone Project
Assistance with technical and environmental work required to consider rezoning 1 Preston Street to Residential - High Density DISCUSSION:
Services under the 2021 Master Agreement will be utilized to support City and Department tasks and initiatives including:
Continued cannabis permit processing
Peer review of CEQA documents
Preparation of environmental documents
Reviewing and commenting on Administrative Draft Environmental Impact Reports (ADEIRs) Provide additional technical analysis to facilitate environmental review, as needed Assist with advanced planning efforts for policy initiatives and future plans Provide training in key areas identified by the City, including “planning 101” for new entry-level planning staff, community groups, and volunteers and historic preservation training for a range of staff levels Creating educational brochures related to changes in regulations to facilitate the public’s understanding of key issues and developing procedures for planning staff Provide support on current planning cases, amendments, and ordinances, including reviewing development applications, preparing response letters, and preparing Planning Commission staff reports Assist Planning Manager in technical review of staff generated documents such as response letters, staff reports, resolutions, and ordinances Provide planning grant writing support, as needed
As specific projects are assigned to Rincon under the Master Agreement, Rincon is to provide a detailed scope and budget for the project-based work. This will enable staff to effectively monitor and manage the multi-year agreement.
Since June 2021, multiple large and complex development applications have been submitted. In August 2021, the City entered into a Funding Agreement to provide for Environmental and Planning Services for a Mixed Development. Under the Master Agreement, Rincon prepared scope of work and budget in the amount of $97,926.50 to provide the requested planning and environmental services. The project developer will fund this work through deposits to the City for the full amount for services rendered by Rincon under this scope of work.
In addition, Amendment No. 1 will allow the Current Planning Division the flexibility to use Rincon’s technical planning and environmental staff and services to address staffing shortfalls and the current increase in workload. In mid-December, one of four full-time planners in the Current Planning Division started extended family leave. In addition, the Division has a vacant full-time Assistant Planner position and vacancies for a part-time Associate Planner, and Administrative Aide. Recruitment for the full-time Assistant Planner closed on January 10, 2022. However, the interviewing and onboarding processes could take several months. Recruitments for the part-time vacancies are pending as of the date of this report. Large and complex projects pose the greatest issue of balancing staff time between focusing on those more complex tasks, while still providing the required customer service for the smaller, routine projects, and over the counter service.
CEQA CONSIDERATION:
The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) per Guidelines Section 15378. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
The use of contract technical staff and services supports City Council’s goals of Operational Efficiencies and New Revenue by augmenting Permit Center operations to facilitate the plan review, permitting and inspection of multiple large projects, which if constructed, would result in new revenue to the City.
DEPARTMENTAL COORDINATION:
Community Development Department staff (Current Planning, Advanced Planning and Plan and Project Implementation) has consulted with Legal to develop the proposed Amendment No. 1 to the Master Agreement. Should the Council authorize the Mayor to enter into the Master Agreement, the Community Development Department will continue to collaborate with Legal and the City Attorney’s Office to finalize and execute the document.
FISCAL AND SUSTAINABILITY IMPACT:
Amount
Funding Source
$97,926.50
Developer funded through Funding Agreement; no fiscal impact to the City $50,000.00
*Currently funded through the General Fund: 1000.30.3462-63.5010 $60,000.00
General Fund appropriation increase needed for services through the end of FY 2021-2022: Professional Services account (1000.30.3462-63.5010) $142,073.50
Funding to be requested in during new budget year cycle(s), as needed * Existing cannabis annual monitoring and application fees will offset the cost of some services related to Commercial Cannabis Permitting.
It should be noted that the actual funding needed may be less than the requested $60,000 since this is for an on-call contract. If services are not used, the City would not accrue any charges from Rincon. In addition, approximately 60% of the Current Planning Division is funded through application fees. Therefore, some revenue will be recouped through fees and minimize the true impact to the General Fund. Unfortunately, the nature of on-call services and unpredictability of revenue make it difficult to estimate the actual impact.
ATTACHMENTS:
City Council Resolution
Draft Amendment No. 1 to Master Agreement for General Planning and Environmental Services June 2021 Master Agreement for General Planning and Environmental Rincon 2021 Fee Schedule
2017 RFP for Planning and Environmental Services
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