TO: Board of Supervisors
FROM: Brian D. Bordona - Director, Planning, Building, and Environmental Services
REPORT BY: Michael Parker - Planning Manager
SUBJECT: Budget Amendment and Approval of Amendment No. 2 to Agreement No. 190093B with LAK Associates, LLC.
RECOMMENDATION
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Approve and authorize Amendment No. 2 to Agreement No. 190093B with LAK Associates LLC to extend the term of the agreement to June 30, 2026 to provide professional planning services for processing Use Permit project applications; and approve a Budget Amendment. (Fiscal Impact: $25,000 Revenue and Expense; General Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
On August 15, 2018, the County of Napa entered into an agreement with LAK Associates LLC for professional planning services and environmental analysis related to the processing of use permit applications. Under the original agreement, the maximum compensation was set at $65,000 per fiscal year. In March of 2021, the Board of Supervisors approved Amendment No. 1 to extend the term of the original agreement to accommodate ongoing and future planning and environmental review work.
LAK Associates has been working on the use permit applications for E&P Technology, Building A&B, located within the South County Business Park (use permit applications P22-00307 and P22-00308). The project was presented to the Napa County Planning Commission in November 2024; however, the item was continued to a date uncertain due to the receipt of comments raising concerns about the biological resources and transportation sections of the project's Mitigated Negative Declaration (MND).
County staff initially anticipated bringing the project back before the Planning Commission in Spring 2025, well before the expiration of the agreement with LAK Associates on June 30, 2025. However, due to the complexity of addressing the feedback and expanding the environmental analysis, the project has not yet been rescheduled for a hearing.
Since the Planning Commission's decision to continue the item, the County Planner and LAK Associates have been working closely with the project applicant and their consultant team to adequately address the comments and provide a more comprehensive analysis of biological resources and transportation. This work is critical for ensuring that the environmental review is thorough and meets the required regulatory standards.
The agreement with LAK Associates expired on June 30, 2025. During the Fiscal Year 2026 budget process, management did not anticipate the need to extend the agreement, as it was erroneously assumed that the project would have been resolved by that time. Given that the project was continued to a date uncertain, and that work on the project is ongoing, it would be inefficient and counterproductive to discontinue the agreement with LAK Associates.
Therefore, staff recommends amending the agreement with LAK Associates to extend the term through June 30, 2026. This extension would allow LAK Associates to continue their work on the environmental analysis without interruption. Lastly, it would allow the department to process an invoice received by LAK Associates for work done after June 30th.
Importantly, the amendment would not result in an increase in the maximum compensation amount, which remains at $65,000 per fiscal year. All costs associated with the agreement are offset by an equal amount of revenue received from the applicant, making this agreement fiscally neutral to the County budget.
Given the ongoing collaboration between LAK Associates, the applicant, and their consultants since 2022, it is in the best interest of all parties involved to maintain continuity of service and avoid the disruption that could arise from transitioning to a different consultant or staff planner. Extending the agreement ensures that the project remains on track and that the environmental review is completed to the necessary standards. Currently, with support from LAK Associates, staff anticipates bringing the project back to the Planning Commission for a final decision in December 2025 or January 2026.
The Director of Planning, Building and Environmental Services recommends approval of the amendment to extend the agreement with LAK Associates through June 30, 2026, with no increase in the maximum compensation.
Today’s requested action is to (4/5 votes required):
1. Approve a Budget Amendment increase appropriations by $25,000 in Consulting Services (Fund 1000, Subdivision 1700000, Account 52310) offset by an increase in revenue appropriations of $25,000 in Planning Permits (Fund 1000, Subdivision 1700000, Account 42350); and
2. Approve and authorize Amendment No. 2 to Agreement No. 190093B with LAK Associates LLC to extend the term of the agreement to June 30, 2026, with an optional automatic renewal not to exceed two additional years.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
This amendment is needed to pay a past due invoice and to continue environmental work on the project application. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Staff do not foresee this agreement continuing into future fiscal years; if it does, the agreement will be included in future fiscal year budget buildout. |
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Consequences if not approved: |
The department will be unable to pay a past due invoice to LAK Associates, LLC and work on the existing application will halt until internal staff can find sufficient time to work on environmental analysis of the proposed project. |
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Strategic Initiative: |
Champion Environmental Sustainability and Resilience |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.