HomeMy WebLinkAboutCM Report - Froom Ranch Reimbursement AgreemeFinal City Manager Approval Approver Name Date Approved
City Administration
Reviewer Routing List Reviewer Name Date Reviewed
City Attorney
Finance & Information Technology
July 21, 2015
FROM: Derek Johnson, Community Development Director
PREPARED BY: Cori Ryan, Supervising Administrative Assistant
SUBJECT: Reimbursement Agreement for consultant costs related to Froom Ranch
development review process.
RECOMMENDATION
Approve the Reimbursement Agreement with the John and Susan Madonna Trust to secure
payment for City administration fees, and consultant contract costs, estimated to be a total of
101,683.
DISCUSSION
Background
John Madonna and Villagio Senior Housing (Madonna/Froom Ranch) has completed the
preliminary application process to explore a Specific Plan, Vesting Tentative Tract Map, property
annexation into the City, pre-zoning of the property, and development of property. The property is
identified as “Specific Plan-3 Madonna on LOVR” in the City’s General Plan, and is located within
the County of San Luis Obispo, adjacent to the City limits, located directly west of the intersection
of Los Osos Valley Road and Calle Joaquin (Assessor Parcel Numbers [APNs] 067-241-030 and
067-241-030). The current County land use designations are Agriculture, Rural Lands, and
Commercial Retail, and combining designations include Airport Review Area, Flood Hazard,
Geologic Study Area, and Sensitive Resource Area. The conceptual project is a mix of uses
including senior housing, multi-family housing, single-family housing, retail sales uses, park,
and open spaces.
General Plan Consistency
The project requires a Specific Plan and associated General Plan Amendment, and related actions
that would allow for the development of the Madonna/Froom Ranch as identified in the City’s
General Plan as Madonna on LOVR Specific Plan Area SP-3. The intent is for the project to be
generally consistent with the development parameters described in the Land Use and Circulation
Element (LUCE) Update, as adopted in December 2014. Guidance for the project is found in
Chapter 8, Section 8.1.5 of the Land Use Element. The applicant’s conceptual plans show
development above the 150-foot elevation; therefore, the applicant is requesting Planning
Commission and City Council review of LUCE Policy 6.4.7.H. (Resource Protection, Hillside
Planning Areas), which states that the “Irish Hills area should secure permanent open space with no
building sites above the 150-foot elevation, in conjunction with any subdivision or development of
Avila Ranch Reimbursement Agreement #2 Page 2
the lower areas”. The applicant is also requesting Planning and City Council review of key issues
that will affect the design of the Specific Plan, such as the conceptual land use mix, alternatives for
the management of the Froom Ranch historic complex present onsite, and conceptual plans for the
realignment and restoration of Froom Creek.
Reimbursement Agreement
The proposed agreement will obligate the John and Susan Madonna Trust to reimburse the City
for staff time and consultant costs required for the development review of the project, including
the 30% administrative fee for managing consultants. The proposed Reimbursement Agreement
covers consultant services for project management and development review process planning
services (Attachment 1, Froom Ranch Reimbursement Agreement).
SWCA Environmental Consultants has been selected as the consultant for the Project. SWCA
was approved as an on-call consultant for planning services in September 2013 (Attachment 6).
Council approved the request for Request for Proposals to provide planning on-call services,
authorized the City Manager to execute agreements and authorized the Finance Director to
execute and amend Purchase Orders for individual consultant services not-to-exceed the
authorized carry forward amount on 9/3/13. Additional funds for Development Services’ carry
forward have been approved by Council and the City Manager on 2/18/14 and 6/17/14 and have
a current balance of $428,000. SWCA has submitted a scope of work estimating cost at $78,218.
The Reimbursement Agreement specifies that the John and Susan Madonna Trust will pay for
planning services. The John and Susan Madonna Trust will reimburse the City for 100% of the
City’s actual costs as set forth in the Reimbursement Agreement. The City’s direct and indirect
costs, City administration fees, and consultant contract costs, are estimated to be a total of
101,683. The John and Susan Madonna Trust will be required to deposit the total estimated cost
prior to the review of the project.
FISCAL IMPACT
The project will have no direct fiscal impact to the City. The Agreement requires the John and
Susan Madonna Trust to pay fees and includes a 30% Administration Fee that will provide
23,465.40 in additional revenue.
ALTERNATIVES
SWCA has been selected to provide on-call planning services for the Froom Ranch project.
Pursuant to the terms of the Reimbursement Agreement, the John and Susan Madonna Trust has
agreed to reimburse the City for its costs and expenses related to the processing of the project,
including the costs and expenses of SWCA and all other reasonable costs related to the processing
and review of the Project.
An alternative to the current Reimbursement Agreement payment structure would require the
termination of the Reimbursement Agreement and the subsequent processing of the proposed
project using existing City Planning Department Staff or another qualified planning consultant. City
Planning does not have the resources to devote to managing and processing this large and complex
project.
Avila Ranch Reimbursement Agreement #2 Page 3
ATTACHMENTS
1. Froom Ranch Reimbursement Agreement
2. 9/3/13 CAR – Unbudgeted Development Review Revenue
3. 2/18/14 CAR – FY 13/14 Mid Year Budget Update
4. 6/17/14 CAR – FY 14/15 Supplemental Budget Update
5. SWCA Environmental Consultants Scope of Work