Report Prepared by: Leah Brown, Management Analyst, and Jonnie Lan, Acting Planning Manager, Development Services Department
Title
SUBJECT: Approval of an Agreement for Professional Services with De Novo Planning Group for Environmental Services, and a Deposit and Reimbursement Agreement with The Dominion Village at Merced, LLC, for the Old Dominion Annexation (Annexation #25-0001) Consisting of Approximately 260 Acres of Land, Generally Located North of Bellevue Road, South of Farmland Road, East of G Street and West of Golf Road
REPORT IN BRIEF
Considers approving an Agreement for Professional Services with De Novo Planning Group in the amount of $362,304 to perform environmental services for the Old Dominion Annexation (Annexation #25-0001), consisting of approximately 260 acres of land, generally located north of Bellevue Road, south of Farmland Road, east of G Street and west of Golf Road, and entering into a deposit and reimbursement agreement with the Dominion Village at Merced, LLC, in the amount of $398,534.40 to fund the De Novo contract and to reimburse for City staff time to manage the contract.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Professional Services Agreement with De Novo Planning Group to complete environmental services for the Old Dominion Annexation (Annexation #25-0001), in the amount of $362,304; and,
B. Approving the Deposit and Reimbursement Agreement with The Dominion Village at Merced, LLC, in the amount of $398,534.40 to cover the consultant contract ($362,304) and additional staff time ($36,230.40) for the administration of the environmental review process and contract; and,
C. Approving an increase of revenue in the amount of $362,304 to Fund 3000-Development Services, Developer Capital Fees account and appropriating the same to Fund 3000-Development Services, Professional Services account for payment to Environmental Science Associates; and,
D. Approving an increase in revenue in the amount of $36,230.40 to Fund 3000-Development Services, Cost Recovery account; and,
E. Authorizing the City Manager to execute the necessary agreements.
Body
ALTERNATIVES
1. Approve the Agreement for Professional Services and Deposit and Reimbursement Agreement as recommended by staff; or,
2. Amending the Agreement for Professional Services and Deposit and Reimbursement Agreements (with specific amendments to be specified by Council motion); or,
3. Direct staff to make changes and return to Council at a later late; or,
4. Deny; or,
5. Continue the matter to a future Council meeting (date and time to be specified in motion).
AUTHORITY
The Cortese-Knox-Hertzberg Act of 2000 establishes procedures for city annexations and other local government changes in organization. Merced Municipal Code Title 19 spells out environmental review procedures for the City.
CITY COUNCIL PRIORITIES
On March 3, 2025, the City Council indicated general support for moving forward with the proposed annexation generally north of Bellevue Road, south of Farmland Road, east of G Street and west of Golf Road, renamed the Old Dominion Annexation.
DISCUSSION
Background
The project is the annexation of approximately 260.5 acres located on the north side of Bellevue Road between G Street and Golf Road. Of the total annexation area, approximately 170.3 acres is proposed for development (Attachment 1). The proposed development is a mixed-use project with commercial, residential (including, low-, medium-, and high-density) as well as open space areas, as listed in the table below.
|
Proposed Land Uses |
Acres |
Maximum Units |
Total Building Area |
|
Rural Residential |
20.4 |
60 |
|
|
Low Density Residential |
12.2 |
73 |
|
|
Medium Density Residential |
25.1 |
301 |
|
|
High Density Residential |
12.2 |
440 |
|
|
Planned Development (PD) |
31.5 |
*TBD |
TBD |
|
Commercial |
18.5 |
|
403,000 SF |
|
Open Space/Park Reserve |
21.3 |
|
|
|
Roads and existing canal |
29.1 |
|
|
|
Total |
170.3 |
874 + PD (TBD) |
403,000 SF + TBD |
*Housing units to be decided. Building area includes housing.
The project includes four phases:
|
Proposed Land Uses |
Acres |
Phase 1 |
Phase 2 |
Phase 3 |
Phase 4 |
|
Planned Development (PD) |
31.5 |
31.5 |
|
|
|
|
Commercial |
18.5 |
18.5 |
|
|
|
|
High Density Residential |
12.2 |
|
12.2 |
|
|
|
Medium Density Residential |
25.1 |
|
15.1 |
|
10.0 |
|
Low Density Residential |
12.2 |
|
|
|
12.2 |
|
Rural Residential |
20.4 |
|
|
20.4 |
|
|
Open Space/Park Reserve |
21.3 |
|
|
21.3 |
|
In preparation for submitting an official annexation application, the developer is ready to proceed with the environmental study. As part of the environmental process, the attached Deposit and Reimbursement Agreement (Attachment 3) is needed to establish the method for the developer to pay for the environmental study.
De Novo prepared a scope of work for the completion of the Environmental Impact Report for this annexation. The scope includes project initiation, project description, the creation of the Notice of Preparation and scoping meeting, the Administrative Draft EIR for circulation for public review, the preparation of the Final EIR and Responses to Comments on the Draft EIR, and participation in public hearings on the project. Upon approval by the City, they will prepare the Findings of Fact/Statement of Overriding Consideration and Notice of Determination. This agreement includes the potential for optional tasks for a total project cost of $362,304. The full scope of work and budget is provided at Exhibit A of the Agreement for Professional Services at Attachment 2.
The City Attorney’s office has prepared an Agreement for Professional Services with De Novo at Attachment 2 for $362,304 and a Deposit and Reimbursement Agreement with The Dominion Village at Merced, LLC, at Attachment 3 for a total of $398,534.40. The $362,304 for the consultant contract will be paid in four equal installments, the first payment will be within 10 days of mutual execution of the contract, then 90 days, 120 days, and 180 days of execution of the contract respectively; and the $36,230.40 for staff time will be paid in one installment within 30 days of execution.
City Council Action
The City Council is being asked to approve the contract for De Novo in the amount of $362,304 at Attachment 2 for environmental services for the Old Dominion Annexation (Annexation #25-0001). The City Council is also being asked to approve the Deposit and Reimbursement Agreement for this same project to fund De Novo’s contract ($362,304) as well as City staff time involved in managing the contract ($36,230.40) as shown at Attachment 3.
IMPACT ON CITY RESOURCES
The Dominion Village at Merced, LLC, through the Deposit and Reimbursement
Agreement at Attachment 3 will fund the entire cost of De Novo’s contract ($362,304) as well as paying for City staff time to manage the contract ($36,230.40, or ten percent of the contract amount per the Planning and Development Fee Schedule).
This item will require 5 affirmative votes from Council for approval.
ATTACHMENTS
1. Location Map
2. Professional Services Agreement with De Novo
3. Deposit and Reimbursement Agreement