CITY OF SALINAS COUNCIL STAFF REPORT
DATE: AUGUST 6, 2024 DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, DIRECTOR
BY: HEIDI NIGGEMEYER, STORMWATER PROGRAM MANAGER
TITLE: AMENDMENT NUMBER 4 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN WALLACE GROUP AND THE CITY OF SALINAS RECOMMENDED MOTION:
A motion to approve a Resolution:
Authorizing the City Manager to execute Amendment Number 4 Wallace Group for the Stormwater Development Impact Fee Rate Study; and Approving the allocation of $47,750 from the American Rescue Plan Act (ARPA) Green Infrastructure project (CIP 8192).
EXECUTIVE SUMMARY:
This report presents an amendment to the Professional Services Agreement with Wallace Group to expand the scope of work to include a stormwater impact fee nexus study to align service fees with the Stormwater Master Plan Update currently in progress and allocating necessary funds for the study.
BACKGROUND:
The City of Salinas owns and operates a municipal storm sewer system for the residents and businesses within its service area. Upgrades to the system to accommodate development are made through the collection of development impact fees.
On December 14th, 2021, City Council approved Resolution No. 22269 approving the Agreement for Professional Services with Wallace Group for the Stormwater Master Plan (SWMP) Update in the amount of $800,000. On March 27, 2023, Amendment 1 was approved extending the contract term to December 31, 2023. On September 21, 2023, Amendment 2 was approved extending the contract term to August 31, 2024. On June 28, 2024, Amendment 3 was approved further extending the contract to May 31, 2025.
California Government Code Sections 66000-66008, also known as the Mitigation Fee Act, provides local jurisdictions the authority to impose fees as a condition of approval of a development project to cover all or a portion of the cost of public facilities affected by the project. The Mitigation Fee Act broadly defines public facilities to include public improvements, public services, and community amenities. The Act also contains specific requirements for establishing, increasing, and imposing impact fees, as well as for the collection and expenditure of those fees, and required annual reporting and periodic re-evaluation of the fee program (nexus study).
Pursuant to California Government Code and Article V of Chapter 9 of the Salinas Municipal Code, the City imposes development impact fees on development to fund improvements to capital infrastructure and facilities required to accommodate and service development (Development Impact Fees).
Appropriately adjusted development impact fees are a benefit to the community and to Developers alike. The public benefits by being able to improve or expand facilities as necessary to accommodate growth. Developers benefit by being able to mitigate certain impacts caused by their project on a fair share basis. This reduces the burden of a developer to solely mitigate a large impact caused by cumulative development. In other words, no single developer is solely responsible to upsize a major sewer main if this is required to service other proposed developments.
In May 2024, City staff requested Wallace Group to complete a development impact fee study (nexus study) to determine what the new stormwater development impact fees should be to align with the Stormwater Master Plan update, which is happening concurrently. The City is responsible for addressing the millions of dollars of proposed improvements to the existing stormwater system and in order to accommodate future development, City staff is proposing a nexus study be completed to provide an update to the Stormwater Development Impact Fee schedule currently in place at the City. The development impact fees account only for impacts from future development on the existing system leaving the remainder of the improvements to be paid by the City.
The expanded work tasks include development of comprehensive financial planning and a rate model for stormwater infrastructure services, review of the current City development impact fee schedule for its compliance with the Stormwater Master Plan Update and City goals. The additional scope represents a not-to-exceed increase of $47,750 to the original Agreement, as per Wallace Group’s proposal dated June 13, 2024 (Exhibit B-1). The term of the Agreement remains with an expiration date of May 31, 2025. This Agreement may be extended for one (1) optional one (1) year period by either party upon (30) days written notice. This Agreement may be extended only upon mutual written consent of the parties.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
The proposed project and agreement meet the City Council’s Strategic Plan Goals of Infrastructure and Environmental Sustainability and Economic Development.
DEPARTMENTAL COORDINATION:
This project has relied on coordination between the NPDES, Maintenance, GIS, and Development Engineering divisions in Public Works.
FISCAL AND SUSTAINABILITY IMPACT:
Funding is available and appropriated in 3911.50.8192 (ARPA Green Infrastructure Project CIP).
ATTACHMENTS:
Resolution
Amendment No. 4 to Agreement for Professional Services for Environmental Consultants between Wallace Group and City of Salinas Original Approved Contract w/all Amendments to date
Exhibit B-1: Stormwater Development Impact Fee Study Scope of Services and Rate Proposal Page | 1Page | 1
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