Report Prepared by: Francisco Mendoza-Gonzalez, Senior Planner, Development Services Department
Title
SUBJECT: Approval of a Professional Services Agreement with J.B. Anderson Land Use Planning and a Deposit and Reimbursement Agreement with Hostetler Ranches, LLC, and Baxter Ranches, LLC, for Preparation of an Environmental Document for the Proposed Ardison Annexation and Baxter Ranches Annexation in the Amount of $45,068.00
REPORT IN BRIEF
Considers approving a Professional Services Agreement with J.B. Anderson Land Use Planning along with a Reimbursement Agreement with Hostetler Ranches, LLC, and Baxter Ranches, LLC, for preparation of an environmental document for two proposed adjacent annexations of approximately 208.44 acres, generally bounded by Bellevue Ranch Master Development Plan area to the north and east, Bellevue Road to the south, and future Haden Street to the west.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Deposit and Reimbursement Agreement with Hostetler Ranches, LLC, and Baxter Ranches, LLC, in the amount of $49,574.80 to cover the cost of the consultant contract and staff time for the administration of the environmental review process; and,
B. Approving the Professional Services Agreement with J.B. Anderson Land Use Planning in the amount of $45,068.00 for preparation of an environmental document for the Ardison Annexation and Baxter Ranches Annexation; and,
C. Approving an increase of revenue in the amount of $45,068.00 to account 30005020-415401 - Other Revenue Developers and appropriating the same to account 30005020-511012-Professional Services for payment to J.B. Anderson Land Use Planning; and,
D. Approving an increase of revenue in the amount of $4,506.80 to account 30005020-414003 - Cost Recovery; and,
E. Authorizing the City Manager or designee to execute the documents.
Body
ALTERNATIVES
1. Approve the agreements, as recommended by staff; or,
2. Approve the agreements, subject to modifications by City Council (identify specific items to be amended in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (to be addressed in the motion); or,
5. Continue to a future City Council meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Section 200
DISCUSSION
Proposed Project
Hostetler Ranches, LLC, and Baxter Ranches, LLC, have submitted sperate applications to annex two project sites adjacent to each other totaling approximately 208.44 acres, generally bounded by Bellevue Ranch Master Development Plan area to the north and east, Bellevue Road to the south, and future Haden Street to the west (Attachment 1). This environmental study would cover two separate annexation projects that are adjacent to each other.
The Ardison Annexation would consist of approximately 48 acres that would be designated for Village Residential and Low Density Residential for approximately 206 residential units. The Baxter Ranches Annexation would consist of approximately 160.44 acres mostly Low Density Residential for approximately 580 residential units, with approximately 15 acres reserved for parkland or open space. Both annexation proposals are generally consistent with the City’s General Plan Land Use designations. The Ardison Pre-Annexation application was taken to the City Council in 2025, and the Baxter Ranches Annexation was taken to the City Council in 2023. For both pre-annexations, the City Council voted to provide general support for official annexation applications moving forward. Therefore, staff has continued our review of the projects and are working to move the annexations forward.
As part of the review process, an environmental review in compliance with the California Environmental Quality Act (CEQA) is required. Due to the complexity and time it takes for the environmental review, City staff and the applicant have agreed to have an outside consultant prepare the environmental review document. City staff and the project applicants are recommending that J.B. Anderson Land Use Planning be selected as the environmental consultant due to their experience with similar projects and their understanding and level of analysis of the project issues in the subject area. J.B. Anderson Land Use Planning and its staff members who will work on the project have the required experience and qualifications to complete the proposed environmental work.
Terms of the Agreements
Attachment 3 contains the recommended agreement for professional services which includes a scope of services, budget, and the anticipated schedule. The scope of work will include the preparation of an initial study in anticipation of the preparation of a Mitigated Negative Declaration (if it is determined that an Environmental Impact Report is required, the scope would need to be amended), and technical studies that include air quality, greenhouse gas analysis, and traffic. All the work would be performed by J.B. Anderson Land Use Planning with possibly sub-consultants.
As indicated in the reimbursement agreement (Attachment 4), the applicant will pay for the entire consultant cost ($45,068.00). The applicants would also reimburse the City for staff time spent on administering the environmental process based on actual cost of time, services and materials. An additional deposit of $4,506.80 (ten percent of the cost of the environmental review) is required upon execution of the agreement.
The applicants also acknowledge in Section 2 of the reimbursement agreement (Attachment 4) that "the contract with the Consultant is being entered into by the City as an accommodation to the Developer to facilitate the evaluation of the project and does not guarantee any particular result or outcome. Developer further acknowledges and agrees that it shall have no control over the work product of the Consultant, and that its payment of the costs is not dependent thereon."
IMPACT ON CITY RESOURCES
The entire cost for preparing the environmental document ($45,068.00) will be reimbursed to the City by the developers as well as the costs ($4,506.80) to cover City staff management of the consultant contract and environmental process.
ATTACHMENTS
1. Location Map
2. Proposed Land Uses for Baxter Ranches and Ardison Annexations
3. Professional Services Agreement with J.B. Anderson Land Use Planning
4. Deposit and Reimbursement Agreement with Hostetler Ranches, LLC, and Baxter Ranches, LLC