For City Council Meeting [July 9, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Robb Steel, Assistant City Administrator/Director of Development Services
Title
Request City Council to Authorize First Amendment to Professional Service Agreement with Kimley-Horn and Associates for Planning Support Services, increasing funding by $33,000 to a maximum amount of $108,000.
(ACTION)
Body
BACKGROUND:
On January 26, 2016, the City Council approved a Professional Service Agreement with Kimley-Horn for preparation of the mandatory fifth-cycle housing update (from 2014 to 2021) to the Housing Element Plan (HEP) for $58,020. California Government Code (CGC) Section 65585 mandates the Housing Element Plan update.
On July 18, 2017, the California Housing and Community Development Department (HCD) found the City’s draft HEP prepared by Kimley-Horn met the statutory requirements and that the HEP would comply with the housing element law once adopted and submitted to HCD. On December 12, 2017, the City Council adopted the 2014-2021 HEP.
On March 26, 2019, the City Council approved a Professional Services Agreement (Exhibit A) with Kimley Horn to provide planning support services for $75,000. The proposal included $35,000 to help the City satisfy recent inquiries from HCD regarding various information in the housing element document and respond to inquiries from Inland Counties Legal Services regarding implementation steps approved by the City.
The City must submit a 4-year update to the Housing Element to comply with Government Code Section 65588 and other new housing laws effective January 1, 2018. This update will be a precursor to the receipt of state grant funding for various projects.
ANALYSIS/DISCUSSION:
Kimley Horn prepared a letter responding to the Inland Counties Legal Service inquiries and reviewed the HCD Letter for the 4-Year update.
To prepare a 4-year update and obtain compliance with the housing element laws, Kimley Horn submitted a proposal to conduct the following scope:
Task 1 - Outreach and Engagement. Conduct two community workshops and engage stakeholder engagement with interest groups, service agencies and other parties on Rialto’s housing performance.
Task 2 - Review of Past Performance. Evaluate progress on the policies and programs of HEP since its approval by the City Council.
Task 3 - Update to Housing Needs Constraints and Resources. Update the HEP with the most current relevant data.
Task 4 - Update to Housing Policy Program. Update the HEP to reflect current conditions, changes in policy and availability of resources.
Task 5 - Public Review and HCD Consultation. Participate in two public hearings and consult with HCD during the public review process to obtain HEP updated approval.
Additional tasks will require Municipal Code amendments to comply with the housing element plan (Additional Tasks) that may include updates to:
• Emergency, Transitional and Supportive Housing (compliance with Senate Bill 2)
• Reasonable Accommodations (compliance with Senate Bill 520)
• Density Bonus (compliance with CGC Section 65915)
Staff proposes to utilize the City Attorney’s Office to prepare the Municipal Code amendments under the Additional Tasks or Kimley Horn can perform the task for an additional cost. The overall goal is to obtain HCD approval by December 2019.
Kimley Horn proposes to complete the HEP update within 5 to 6 months. The additional scope (Tasks 1 to 5) requires an additional $33,000 for total HEP related costs of $68,000.
ENVIRONMENTAL IMPACT:
Pursuant to Section 15378 of California Environmental Quality Act (CEQA), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Approval of a Professional Service Agreement is an administrative function in accordance with the Rialto Municipal Code and is not a project as defined by CEQA.
GENERAL PLAN CONSISTENCY:
Approval of this action complies with the City of Rialto General Plan Goals and Policies:
1. Essential community services and amenities must meet the needs and desires of our families
2. Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
3. Implementation Measure 8.1: Annual Review of General Plan, Land Use Policy Map, and Environmental Indicators
4. Implementation Measure 8.2: Zoning Code Revisions to Create New Districts Update the Zoning Ordinance upon adoption of the General Plan.
5. Implementation Measure 8.3: Zone Changes to Correct Inconsistencies.
6. Goal 6-2: Promote and encourage housing development that adequately meets the needs of all socioeconomic segments of the community and region.
LEGAL REVIEW:
The City Attorney has reviewed and approved the First Amendment and the staff report.
FINANCIAL IMPACT:
Operating Budget Impact
The existing Professional Services Agreement (PSA) establishes a maximum compensation of $75,000. The First Amendment increases the maximum compensation by $33,000 to $108,000. All services are payable on a time and material reimbursement basis. Staff recommends increasing Purchase Order Number 2019-1768 by $33,000. FY20 funds are available and budgeted in Account No. 010-500-4260-2011.
Capital Improvement Budget Impact
There is no capital improvement budget impact.
Licensing
Prior to execution of the Professional Service Agreement/Purchase Order/Construction Contract, the vendor is required to submit a business license application and pay a Business License tax, as well as Administration and State fees. On February 26, 2019, Kimley Horn paid $2,286.53 for a business license.
RECOMMENDATION:
Request City Council to approve the First Amendment (Exhibit B) to a Professional Service Agreement with Kimley-Horn and Associates for Planning Support Services, increasing funding by $33,000 to maximum amount of $108,000.