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HomeMy WebLinkAboutCED Environmental Consulting Services for the Dominican Residential Development Project & Associated Supplemental FY 25-26 Budget Appropriation____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: October 6, 2025 Disposition: Resolution 15464 Agenda Item No: 5.b Meeting Date: October 6, 2025 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community and Economic Development Prepared by: Kristina Estudillo Principal Planner City Manager Approval: ______________ TOPIC: AGREEMENT FOR ENVIRONMENTAL CONSULTING SERVICES FOR THE DOMINICAN RESIDENTIAL DEVELOPMENT PROJECT AND ASSOCIATED SUPPLEMENTAL FISCAL YEAR 2025-2026 BUDGET APPROPRIATION SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO (1) EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH ENVIRONMENTAL SCIENCE ASSOCIATES (ESA) IN AN AMOUNT NOT TO EXCEED $675,221 FOR ENVIRONMENTAL CONSULTING SERVICES FOR THE DOMINICAN RESIDENTIAL DEVELOPMENT PROJECT (PLAN 23-081) LOCATED AT ASSESSOR’S PARCEL NUMBER (APN) 015-163-03 AND (2) APPROPRIATE SUPPLEMENTAL FISCAL YEAR (FY) 2025-2026 BUDGET APPROPRIATIONS TOTALING $675,221 RECOMMENDATION: Staff recommends that the City Council adopt a resolution authorizing the City Manager to (1) enter into a professional services agreement with Environmental Science Associates (ESA) for environmental consulting services in an amount not to exceed $675,221 and (2) appropriate supplemental fiscal year (FY) 2025-2026 Budget Appropriations totaling $675,221. BACKGROUND: In December 2023, the Community and Economic Development (CED) Department received an application for a residential development project on a 20.79-acre site located at the intersection of Magnolia Avenue and Deer Park Avenue (Dominican Residential Development Project). The applicant for the project is Dominican Valley LLC, and Dominican University previously owned the site and was part of the Dominican College Campus Development Plan. The application was determined to be complete for the purposes of application processing in October 2024, and staff subsequently initiated the environmental review process. The proposed Dominican Residential Development Project involves subdividing the project site into 50 parcels and constructing 50 residential units, along with 14 Junior Accessory Dwelling Units (JADUs). The 50 residential units include the following types of housing: •27 single-family homes, ranging from 2,612 to 3,215 square feet (sf) •17 townhomes, ranging from 1,150 to 1,390 sf SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 o 14 attached JADUs •6 duplex units consisting of 1,705 sf each As part of the application review process, the CED Department has analyzed the project for compliance with California’s Environmental Quality Act (CEQA). Based on the preliminary review of the project, the CED Department has determined that a full-scope Environmental Impact Report (EIR) covering all the topical issues associated with the project must be prepared to comply with CEQA. As the City lacks the capacity and subject matter expertise to conduct the EIR, on May 2, 2025, CED staff published a Request for Proposals (RFP) to identify a firm to undertake the CEQA review for this project. In response, the CED Department received proposals from four interested firms. CED staff then held a series of interviews in July 2025 to ascertain which firm is the most qualified to conduct the CEQA review for a project of this nature. Subsequently, CED staff identified ESA as the most qualified firm for this project based on their CEQA expertise, track record, experience with complex housing development projects, and familiarity with state housing legislation. ANALYSIS: Adopting the proposed resolution will authorize the City Manager to execute a professional services agreement with ESA to complete an EIR for the Dominican Residential Development Project. CED staff selected ESA after undergoing a formal competitive procurement process, and CED staff have identified ESA as the best qualified firm to complete the work required. ESA’s completion of an EIR will ensure that the Dominican Residential Development Project complies with CEQA, which in turn provides the City with a process to evaluate any environmental impacts of the project and strategies to address these impacts. FISCAL IMPACT: Approval of the staff recommendation would authorize a professional services agreement with ESA in an amount not to exceed $675,221. The project applicant is responsible for any costs incurred by the City in processing their application, including the cost of an environmental consultant conducting CEQA review for their development application. Thus, a supplemental FY 2025-26 budget appropriation is being requested within the City’s Development Services Fund (207) in the amount of $675,221 to reflect funding provided by the project applicant, as well as to appropriate funding for the proposed contract. To cover CED staff time overseeing the accounting of this project, the CED Department will require the project applicant to pay an additional ten percent administrative fee as prescribed in the Master Fee Schedule. OPTIONS: The City Council has the following options to consider on this matter: 1. Authorize the City Manager to enter into the agreement. 2. Authorize the City Manager to enter into the agreement with modifications. 3. Direct staff to return with more information. 4. Take no action. RECOMMENDED ACTION: Staff recommends that the City Council adopt a resolution authorizing the City Manager to (1) enter into a professional services agreement with Environmental Science Associates (ESA) for environmental consulting services in an amount not to exceed $675,221 and (2) appropriate supplemental fiscal year (FY) 2025-2026 Budget Appropriations totaling $675,221. ATTACHMENTS: 1. Resolution 2.Professional Services Agreement with ESA Page 1 of 2 RESOLUTION NO. 15464 RESOLUTION AUTHORIZING THE CITY MANAGER TO (1) EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH ENVIRONMENTAL SCIENCE ASSOCIATES (ESA) IN AN AMOUNT NOT TO EXCEED $675,221 FOR ENVIRONMENTAL CONSULTING SERVICES FOR THE DOMINICAN RESIDENTIAL DEVELOPMENT PROJECT (PLAN 23-081) LOCATED AT ASSESSOR’S PARCEL NUMBER (APN) 015-163-03 AND (2) APPROPRIATE SUPPLEMENTAL FISCAL YEAR (FY) 2025-2026 BUDGET APPROPRIATIONS TOTALING $675,221 WHEREAS, the City of San Rafael’s Community and Economic Development (CED) Department is processing a Tentative Subdivision Map and Major Environmental Design Review application for the proposed Dominican Residential Development Project (PLAN23-081), located at Marin County Assessor’s Parcel Number (APN) 015-163-03; and WHEREAS, the project requires environmental review under the California Environmental Quality Act (CEQA); and WHEREAS, CED staff published a Request for Proposals (RFP) for preparation of CEQA documentation for the proposed project on May 2, 2025, and subsequently received four proposals from interested firms; and WHEREAS, CED staff reviewed the proposals and held a series of interviews in July 2025 to ascertain which was the most qualified firm to conduct the environmental review for a project of this nature; and WHEREAS, CED staff identified Environmental Science Associates (ESA) as the most qualified firm because of their experience with complex housing development projects, understanding of recent changes to State law, and their proposed approach; and WHEREAS, the project applicant is responsible for reimbursing the City for the costs incurred by the City in processing its development application, including preparation of CEQA documents; and WHEREAS, the cost of preparing the CEQA document for the Dominican Residential Development Project will be paid through a reimbursement agreement between the CED department and the project applicant. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael finds the foregoing recitals are true and correct, and authorizes the City Manager or their designee to execute a professional services agreement with Environmental Science Associates (ESA) for an amount not to exceed $675,221; and FURTHER RESOLVED, that the City Council authorizes supplemental budget appropriations of $675,221 within the Development Services Fund (207) to support these agreements, via increased planning fee revenues received from the Dominican Residential Development Project applicant. I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a special meeting of the City Council of said City held on Monday, the 6th day of October 2025, by the following vote, to wit: Page 2 of 2 AYES: Councilmembers: Bushey, Hill, Kertz & Mayor Kate NOES: Councilmembers: None ABSENT: Councilmembers: Llorens Gulati LINDSAY LARA, City Clerk