REPORT TO COUNCIL
SUBJECT
Title
Action on a Reimbursement Agreement for Consultant Planning Services with Tasman East Holdco, LLC, and City Manager Contract Approval Authority for Reimbursement Agreements up to $250,000
Report
BACKGROUND
At the July 17, 2018 City Council meeting the City Council approved Reimbursement Agreements for Consultant Planning Services with seven different developer entities working in the Tasman East Focus Area. The Reimbursement Agreements enable the developers to reimburse the City for the costs of third party contract planning services provided to the developers as an expedited planning permit review service. Currently, the City Manager is not authorized to sign any reimbursement agreements regardless of contract amount.
Subsequently one of the seven developer entities restructured their legal status resulting in a name change for the entity. City Council approval is required in order to approve the Agreement to reflect the current entity’s name.
The City Manager is authorized to approve service contracts originating from most City departments up to $100,000 and for the Utility departments up to $150,000. In 2009, to streamline contract approval related to the annual clean-up campaign, the Council authorized the City Manager by resolution (Attachment 1) to sign service contracts related to the campaign up to $250,000.
DISCUSSION
The Reimbursement Agreement for one of the Tasman East Specific Plan area development projects was previously structured to include two legal entities corresponding to two properties encompassed within the development project, “Tasman East Parcel 56 Owner” and “Tasman East Parcel 57 Owner”. In further reviewing the Agreement it was determined that it would be more appropriate for the Agreement to be between the City and a single legal entity, “Tasman East Holdco, LLC” which acts as a consolidated property owner for both properties. While this change is non-substantive in terms of impact upon City fiscal resources and service delivery, it is outside of the scope of non-substantive revisions allowed under the previous Council action. Staff is therefore requesting City Council approval of a revised Agreement (Attachment 2) that updates the name of the legal entity but is otherwise unchanged.
Approval of the Reimbursement Agreement will allow the City to augment staff during development applications peak demand associated with the Tasman East Specific Plan. The total amount of eligible costs is estimated to be $30,000 for the subject development project. In the event that additional services are required that would exceed estimated costs, the City will give the Applicants 10 business days’ advance written notice prior to authorizing any work that would cause eligible costs to exceed the estimated budget.
Contract Approval Authority for Reimbursement Agreements
Due to the high development activity in Silicon Valley, neighboring cities have resorted to service agreements for planning permit review and other development services such as plan reviews. Using third party services overseen by City staff and fully reimbursed by developers is utilized when the City experiences peak service demands. In order to take advantage of reimbursement agreements to expedite development related activities, staff seeks contract approval authority for the City Manager for reimbursement contracts including amendments subject to review and approval by the City Attorney’s Office up to and including $250,000 through approval of the attached resolution (Attachment 3).
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment. An EIR is currently being drafted for the Tasman East Specific Plan, which will be brought to the Council for consideration when the Tasman East Specific Plan is considered. Development projects associated with the consultant planning work being funded for through these reimbursement agreements will be subject to CEQA review and clearance.
FISCAL IMPACT
The reimbursement agreements will be funded by the developer with no impact on the General Fund.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute a Reimbursement Agreement, subject to minor non-substantive revisions, with Tasman East Holdco, LLC.
2. Approve a resolution authorizing the City Manager to enter into Reimbursement Agreements including amendments of up to $250,000 subject to review and approval by the City Attorney’s Office.
Staff
Reviewed by: Andrew Crabtree, Community Development Director
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Resolution No. 09-7592 Contract Approval Authority for Annual Clean-Up Campaign
2. Reimbursement Agreement for Consultant Planning Services for the Tasman East Specific Plan with Tasman East Holdco, LLC
3. Resolution Contract Approval Authority for Reimbursement Agreements