Title
a. Consider approving a new Funding Agreement with Esperanza Carmel Commercial, LLC, to fund the preparation of an Initial Study and Mitigated Negative Declaration and associated fees where the Base Budget is $43,294 the County Project Management/Contract Administration Fee is $6,495 (15% of the Base Budget), the Project Contingency is $6,495 (15% of the Base Budget), and staff review time (20 hours at $217/hour) is $4,340 for a not-to-exceed amount of $60,623 and a term from execution to February 28, 2027;
b. Consider authorizing the Director of Housing and Community Development or designee to execute the Funding Agreement with Esperanza Carmel Commercial, LLC, in the amount of $60,623 and three future amendments that do not significantly alter the scope of work and do not increase the Agreement’s amount by more than 10% ($6,063 each), bringing the total cumulative cost increase to $18,189 and potential aggregate not-to-exceed amount to $78,812 subject to review by County Counsel and the Auditor-Controller; and
c. Consider authorizing the Director of Housing and Community Development or designee to execute the Professional Services Agreement with Denise Duffy & Associates, Inc., in the amount of $49,789 and three future amendments to the Agreement that do not significantly alter the scope of work and do not increase the Agreement’s amount by more than 10% ($4,979 each) bringing the total cumulative cost increase to $14,937 and potential aggregate not-to-exceed amount to $64,726 subject to review by County Counsel and the Auditor-Controller.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve a new Funding Agreement with Esperanza Carmel Commercial, LLC, to fund the preparation of an Initial Study and Mitigated Negative Declaration and associated fees where the Base Budget is $43,294, the County Project Management/Contract Administration Fee is $6,495 (15% of the Base Budget), the Project Contingency is $6,495 (15% of the Base Budget), and staff review time (20 hours at $217/hour) is $4,340 for a not-to-exceed amount of $60,623, and a term from execution to February 28, 2027;
b. Authorize the Director of Housing and Community Development or designee to execute the Funding Agreement with Esperanza Carmel Commercial, LLC, in the amount of $60,623 and three future amendments that do not significantly alter the scope of work and do not increase the Agreement’s amount by more than 10% ($6,063 each), bringing the total cumulative cost increase to $18,189 and potential aggregate not-to-exceed amount to $78,812, subject to review by County Counsel and the Auditor-Controller; and
c. Authorize the Director of Housing and Community Development or designee to execute the Professional Services Agreement with Denise Duffy & Associates, Inc., in the amount of $49,789 and three future amendments to the Agreement that do not significantly alter the scope of work and do not increase the Agreement’s amount by more than 10% ($4,979 each) bringing the total cumulative cost increase to $14,937 and potential aggregate not-to-exceed amount to $64,726, subject to review by County Counsel and the Auditor-Controller.
SUMMARY:
Esperanza Carmel Commercial, LLC (Applicant) has applied to the County for a Combined Development Permit (Project), PLN220363, consisting of multiple Coastal Development Permits and a Design Approval on one parcel (Assessor Parcel Number 243-262-004-000).
The Project proposes the redevelopment of the Rocky Point Restaurant to include the following improvements:
- Demolition of the existing Rocky Point Restaurant;
- Construction of a replacement restaurant (120 seats);
- Construction of two employee housing units;
- Construction of a public restroom;
- Improvements to the parking lot (55 stalls);
- Construction of public access trails and signage;
- Replacement of an Onsite Water Treatment System; and
- Landscaping
The County is requiring the Applicant to fund the preparation of an Initial Study and, assuming it is appropriate, a Mitigated Negative Declaration (IS-MND) for environmental review to be conducted by Denise Duffy & Associates, Inc. (DD&A), including associated fees.
DISCUSSION:
The Applicant applied for a Combined Development Permit on January 29, 2025. The application was deemed complete on July 13, 2026. The Applicant was advised the Project required the preparation of an Initial Study, pursuant to California Environmental Quality Act Guidelines section 15063.
Technical reports for the Project have been provided by the Applicant to the County and, in turn, provided the reports to DD&A. The reports include the following:
- Air Quality and Greenhouse Gas - Historical
- Arborist - Hydrological
- Archaeological - Transportation
- Biological - Water and Wastewater
- Geotechnical/Geological
DD&A will use these reports to prepare the IS, and, if appropriate, an MND. The scope of work assumes that all potentially significant impacts can be mitigated to a less-than-significant level. Should the Initial Study determine that the Project could cause potentially significant, unmitigable impacts, the County shall consider other environmental review options.
OTHER AGENCY INVOLVEMENT:
The Offices of the County Counsel and Auditor-Controller have reviewed and approved the Funding Agreement and Professional Services Agreement as to form and fiscal provisions, respectively.
FINANCING:
There are no costs to the General Fund as a result of this action. Staff costs to manage the contracts and professional services provided by the Contractor will be funded by the Applicant. Any additional staff time for processing the environmental review will be charged at the billing rate established in the Department’s fee article.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
Approving this Funding Agreement and Professional Services Agreement supports Board of Supervisors Strategic Goal for Well-Being and Quality of Life, by provide the mechanism for preparing the required Initial Study and, if appropriate, a Mitigated Negative Declaration, to satisfy the County’s obligation to complete environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15063 and thereby ensuring long-term protection of coastal and public resources on the property.
x Well-Being and Quality of Life
Sustainable Infrastructure for the Present and Future
Safe and Resilient Communities
Diverse and Thriving Economy
Dynamic Organization and Employer of Choice
Link to the Strategic Plan:
<https://www.countyofmonterey.gov/home/showdocument?id=139569>
Prepared by: Kathy Nielsen, Management Analyst II, (831) 755-4832
Reviewed by: Taylor Price, Senior Planner, (831) 784-2179
Approved by: Melanie Beretti, AICP, Chief of Planning
The following attachment is on file with the Clerk of the Board:
Attachment A - Funding Agreement, including Attachment 1: Draft PSA