REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 3 to the Agreement with Moore Iacofano Goltsman, Inc. (MIG) for Preparation of the Freedom Circle Focus Area Plan, Amendment No. 3 to Reimbursement Agreement with Freedom Circle Venture, LLC, and Related Budget Amendment
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing, and Transportation Development
BACKGROUND
On August 27, 2019, the City Council directed staff to proceed with the long-range planning process to designate the Freedom Circle area as a Future Focus Area within the General Plan instead of the preparation of a Specific Plan. This direction was given following the decision by two of the three Freedom Circle property owners funding the Specific Plan (The Sobrato Organization and Irvine Company) to withdraw from their funding of the Freedom Circle Specific Plan process, which had begun in August 2018. The remaining property owner (Greystar DBA Freedom Circle Venture LLC) is continuing to fund the Future Focus Area planning process while the City also continues to process their General Plan Amendment (GPA) application.
DISCUSSION
As a result of discussion at the April 13, 2022 Planning Commission meeting, the City decided it would be appropriate for the City’s consultant, MIG, to prepare additional environmental analyses, including supplemental biological and air quality analyses. The supplemental biological analysis includes a more recent reconnaissance of the Greystar site; the supplemental air quality analysis includes a quantitative analysis of diesel exhaust resulting from construction vehicles on proximate sensitive receptors. Supplemental funding for this work beyond the contingency amount included in the City’s existing Service Agreement with MIG is needed to cover this work; and therefore, staff is proposing to expand the formal Scope of Services for the consultant agreement needs with additional funding to complete this work.
The consultant agreement has been and will continue to be funded through a Reimbursement Agreement with the developer. Included with this report is a related amendment to the Reimbursement Agreement to provide the additional funding necessary.
EIR Scope
Per direction given by the City Council at the August 27, 2019 Council meeting, the project EIR will analyze the pending Greystar General Plan Amendment, a privately initiated application, as well as the City’s proposal to create a Focus Area in the General Plan. The Greystar project, if approved by City Council, would proceed as an 1,100-unit residential land development project. The second element, amending the General Plan to create a Focus Area, would create support within the General Plan for the future development of a mix of up to 2,500 residential units and 2 million square feet of commercial/office development, but a future planning study and additional land entitlement work would be necessary before any specific projects could move forward to utilize this capacity. This approach is consistent with other Focus Areas identified within the General Plan, for which the General Plan identifies a potential amount of development capacity and general land use policies for the Focus Area, and which have subsequently been implemented through the preparation of a Specific Plan.
ENVIRONMENTAL REVIEW
The actions being considered are simply to amend the Professional Services and Reimbursement Agreements. These actions do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5), in that they are governmental organizational or administrative activities that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
Amendment No. 3 to the Professional Services Agreement with MIG increases the not-to-exceed amount by $26,520 to $778,155. The City’s consultant costs for preparation of the Freedom Circle Focus Area and Greystar General Plan Amendment are covered through a reimbursement agreement with the developer. The developer will deposit an additional $26,520 following the execution of Amendment No. 3 to the Reimbursement Agreement. The additional funds will be collected in the City’s Prefunded Plan Review Fund from which payments will also be made.
BUDGET AMENDMENT
FY 2021/22
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Current |
Increase/ (Decrease) |
Revised |
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Prefunded Plan Review Fund |
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Revenues |
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|
|
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Developer Contributions |
$337,150 |
$26,520 |
$363,670 |
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Expenditures |
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Materials/Services/Supplies |
$337,150 |
$26,520 |
$363,670 |
COORDINATION
This report has been coordinated with the Finance Department and the 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 report to council 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. Approve the FY 2021/22 budget amendment in the Prefunded Plan Review Fund to recognize developer contributions in the amount of $26,520 and establish an appropriation for the Freedom Circle Focus Area Plan in the amount of $26,520 (five affirmative council votes required to appropriate additional revenue);
2. Authorize the City Manager to execute Amendment No. 3 to the Agreement with Moore Iacofano Goltsman (MIG) for professional services to prepare the Freedom Circle Focus Area Plan and related Environmental Review documents by increasing the amount of the agreement by $26,520 for a revised not-to-exceed maximum compensation of $778,155, subject to the appropriation of funds; and
3. Authorize the City Manager to execute Amendment No. 3 to the Reimbursement Agreement with Freedom Circle Venture LLC.
Staff
Reviewed by: Andrew Crabtree, Director, Community Development Department
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Amendment No. 3 to Professional Services Agreement with MIG
2. Amendment No. 3 to Reimbursement Agreement
3. Amendment No. 2 to Professional Services Agreement with MIG and RTC 21-1199
4. Amendment No. 2 to Reimbursement Agreement
5. Amendment No. 1 to Professional Services Agreement with MIG and RTC 20-102
6. Amendment No. 1 to Reimbursement Agreement
7. Original Professional Services Agreement with MIG and RTC 18-647
8. Original Reimbursement Agreement