CC 2014-05-13_08.h. Agreement Housing Element Update ServicesMEMORANDUM
TO: CITY COUNCIL #
FROM: TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR
BY: hA"·KELLY HEFFERNON, ASSOCIATE PLANNER
SUBJECT:
DATE:
CONSIDERATION TO APPROVE FIRST AMENDMENT TO
AGREEMENT FOR CONSULTANT SERVICES WITH LISA WISE
CONSULTING, INC. TO ASSIST THE CITY WITH THE HOUSING
ELEMENT UPDATE
MAY 13,2014
RECOMMENDATION:
It is recommended the City Council:
1. Approve First Amendment to Agreement for Consultant Services with Lisa Wise
Consulting, Inc.; and
2. Authorize the Mayor to execute the amendment.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The cost proposal from Lisa Wise Consulting, Inc. (the "Consultant") totals $20,640.
This includes $4,200 for optional tasks. It is recommended that Consultant costs be
funded through Community Development Department Planning Contractual Services.
BACKGROUND:
State law requires each city and county to adopt a General Plan containing at least
seven elements, including housing, which is to be updated every five years. The
Housing Element is subject to detailed statutory requirements and mandatory review
and certification by the State De~artment of Housing and Community Development
(HCD). HCD certified the City's 4t Cycle Housing Element Update in December 2013,
which was past the submittal deadline. Because it took the City longer to complete the
HEU and obtain certification, the 4th and 5th cycles are back to back. Note that there is
no penalty for late certification; the only consequence is ineligibility for certain State
grants for affordable housing of which the City has not applied for to date.
The purpose of the Housing Element is to allow cities and counties to establish policies,
procedures, and incentives that will result in the maintenance and expansion of the
housing supply to accommodate existing and future households.
Item 8.h. - Page 1
CITY COUNCIL
CONSIDERATION TO APPROVE FIRST AMENDMENT TO AGREEMENT FOR
CONSULTANT SERVICES WITH LISA WISE CONSULTING, INC. TO ASSIST THE
CITY WITH THE HOUSING ELEMENT UPDATE
MAY 13, 2014
PAGE 2
At a minimum, the Housing Element should clearly identify and address the following:
• An assessment of housing needs and an inventory of resources and
constraints relevant to the meeting of these needs.
• A statement of the community's goals, quantified objectives, and policies
relative to the maintenance, preservation, improvement and development of
housing.
• A program which sets forth a five-year schedule of actions the City is
undertaking or intends to undertake to implement the policies and achieve
the goals and objectives of the Housing Element.
State law also requires jurisdictions to identify adequate sites for housing, including rental
housing, factory-built housing, and mobile homes, and make adequate provision for the
existing and projected needs of all economic segments of the community.
ANALYSIS OF ISSUES:
HCD allocates a region's share of the statewide housing need to Councils of
Governments (COG) based on State Department of Finance population projections and
regional population forecasts. The San Luis Obispo Council of Governments
(SLOCOG) adopted the Regional Housing Needs Plan (RHNP) for the incorporated
cities and unincorporated areas of the County in June 2013. Each jurisdiction is
required to integrate the housing unit distribution numbers identified in the RHNP in their
Housing Element update in order to accommodate their "fair share" of the anticipated
future housing demand.
For SLOCOG's 2014 -2019 Housing Element cycle, the Regional Housing Needs
Allocation (RHNA) data has been established for the City of Arroyo Grande as follows:
Income. Category· ' . ' . ~-.. ~ .. · . ··.-' ' ' . Numb~r of.Units ,,_ ..
Very Low Income (0-50% of AMI)* 60
Low Income (51-80% of AMI) 38
Moderate Income (81-120% of AMI) 43
Above Moderate Income (over 120% of AMI) 101
Total 242
*AMI = Area Med1an Income
The distribution of 242 total housing units for the City is less than the previous program
period, w~ich allocated 362 total housing units to the City.
The City contracted with the Consultant to assist the City with updating its 41h Cycle
Housing Element that was certified in December 2013. Based on the Consultant's
experience, proposed work plan, availability, cost and familiarity with the City's housing
policies and issues, staff recommends that Council approve the proposed contract
Item 8.h. - Page 2
CITY COUNCIL
CONSIDERATION TO APPROVE FIRST AMENDMENT TO AGREEMENT FOR
CONSULTANT SERVICES WITH LISA WISE CONSULTING, INC. TO ASSIST THE
CITY WITH THE HOUSING ELEMENT UPDATE
MAY 13, 2014
PAGE 3
amendment. The scope of work for this process is included as Exhibit "A" of the
contract.
ALTERNATIVES:
The following alternatives are offered for Council's consideration:
1. Approve the First Amendment Agreement for Consultant Services with Lisa Wise
Consulting, Inc. to assist the City with the Housing Element Update;
2. Do not approve the amendment.
3. Modify as appropriate and approve the amendment; or
4. Provide direction to staff.
ADVANTAGES:
The following are positive aspects of approving the proposed amendment and
appropriation:
• The Consultant is local and familiar with Arroyo Grande, thereby saving the City
time and money in travel expenses and understanding the character of the
community.
• The Consultant has valuable experience in preparing housing elements, is
familiar with what HCD is looking for to obtain certification, and has updated the
housing elements for the cities of Pismo Beach and Grover Beach in addition to
Arroyo Grande.
• The Consultant will provide guidance and expertise to staff and decision makers
to ensure the City is meeting all State Housing Element requirements.
• The Consultant is available to start the update process immediately.
DISADVANTAGES:
Hiring a consultant to assist the City with the Housing Element Update would
appropriate $20,640 from the Community Development Department's Planning
Contractual Services that could otherwise be spent on other projects or programs. By
amending this contract, it also precludes consideration of other potentially qualified
consultants, but staff believes this is the most efficient and effective way to proceed at
this time.
ENVIRONMENTAL REVIEW:
The proposed Consultant Services Agreement is exempt pursuant to CEQA Guidelines
Section 15061 (b)(3), which states that CEQA applies only to projects that have the
potential for causing a significant effect on the environment.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, May 8, 2014. The Agenda and
report were posted on the City's website on Friday, May 9, 2014. No public comments
were received.
Item 8.h. - Page 3
FIRST AMENDMENT TO
AGREEMENT FOR CONSULTANT SERVICES.
This FIRST AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES
(hereinafter referred to as the "First Amendment") is made and entered into this 141h day
of April, 2014, by and between the CITY OF ARROYO GRANDE ("City"), a municipal
corporation, and LISA WISE CONSULTING, INC., (hereinafter referred to as the
"Consultant").
WHEREAS, the parties entered into an Agreement for Consultant Services
("Agreement") dated April 5, 2012, a true and correct copy of which is on file in the
Community Development Department and incorporated herein by this reference as
though as set forth in full; and
WHEREAS, the Agreement expired on April 6, 2013; and
WHEREAS, the parties desire to revive and amend the Agreement as set forth herein.
NOW THEREFORE, for the good and valuable consideration, the receipt and
sufficiency of which is acknowledged, the parties agree that the Agreement is hereby
revived and in full force and effect as modified, and subject to the terms and conditions
set forth below:
1. Section 1, entitled "TERM" shall be amended in its entirety as follows:
This Agreement shall commence on May 14, 2014 and shall remain in effect until
May 14, 2015, unless sooner terminated pursuant to the provisions hereof.
2. Section 2, entitled "SERVICES" shall be amended in its entirety as follows:
Consultant will perform the tasks described and comply with all terms and
provisions set forth in Exhibit "A", attached hereto and incorporated herein by this
reference.
3. Section 5, entitled "PAYMENT" shall be amended in its entirety as follows:
City agrees to pay the Consultant in accordance with the payment rates and
terms set forth. in Exhibit "B" attached hereto and incorporated herein by this
reference. Payments shall be on a time and materials basis.
4. Except as modified herein, all other terms and conditions of the Agreement shall
remain in full force and effect.
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Item 8.h. - Page 4
IN WITNESS WHEREOF, the parties have executed this First Amendment on the day
and year first set forth above.
CITY CONSULTANT
By: ____________________ _ By: ____________________ _
Tony Ferrara, Mayor
Title:. __________________ _
Attest:
Kelly Wetmore, City Clerk
Approved As To Form:
Timothy J. Carmel, City Attorney
Page 2
Item 8.h. - Page 5
EXHIBIT A
SCOPE OF WORK
The tasks for this project involve follow up work necessary to complete the Housing
Element Update certification process as outlined below:
Citfof Ar_foyogran_de'.: ._ ..... ·, ··
~ -~ . ;_i·i ; .. ·'.· ·.· ~.:_·.. '. '·~ ··-. :. ·, :.1 .. }··j ~-: ~-" .
HotJslng·EiementU.pdate·~ Stti Cycle . · ·. :· •·· •. ~-
. -~: . : ·.·.~ ... '·. -'··:~.--:· \:. ' ..... ~:-: -,.:: , .... _-.. .. :· ..
TASK 1. Project Scope Refinement &
Document Review
1.1 Kick Off Meeting with Staff
1.2 Communication with Staff (ongoing)
TASK 2. Housing Element Research &
Preparation
2.1. Evaluation of Previous Housing Element
2.2 Background Data and Housing Needs
Assesment1
2.3 Vacant & Underutilized Land I
2.4 Housing Contraints
TASK 3. Prepare Housing Element
3.1 Administrative Draft Housing Element
3.2 Public Review Draft Housing Element
3.3 HCD's 60-Day Review of Public
3.4 HCD's 90-Day Review/State Certification
OPTIONAL TASKS:
1 Council/Commission Workshop (1)
2 Hearings for Housing Element Adoption (2)
(See Notes below under Exhibit B)
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Item 8.h. - Page 6
EXHIBIT B
PAYMENT SCHEDULE
Invoices for completed tasks outlined in Exhibit A will be submitted and paid on a
monthly basis. Payments shall be on a time and materials basis.
I · · · · · : Senior · · ·
City of Arroyo Grande:_,··.-~r!ri<7lpal ;. · · ··::'Associate·
_ :, •.. ·'. • •·. . :c <" .· . \5s.ociate,.
Housing Element Update -5th Cycle r~~<·~._$15_9; .·· · · .. , :: $1?0 ~ $9b ·
-·.-Total
r-------~--------~~----------~----------
Hrs Fee Hrs Fee Hrs Fee Hrs Fee I I
PROJECT TASKS
TASK 1. Project Scope Refinement & Document Review ..
1.1 Kick Off Meeting with Staff 2 $300 4 $480 4 $360 ; 10 $1.140'
1.2 Communication with Staff (ongoing) 4 $600 6 . $720 8 $720 ' 18 $2,040
Subtotal 6 $~00 10 '$1,200 .. , 12 $1.080 · ·. 28 ·I $3,180
I·
i-
TASK 2. Housing Element Research & Preparation
2.1. Evaluation of Previous Housing Element 2 $300 4 $480 6 $540 I 12 $1,320
2.2 Background Data and Housing Needs Assesment 1 2 $300 4 $480 16 $1.440 ! 22 $2,220'
2.3 Vacant & Underutilized Land lnventory2 2 . $300 6 $720 8 $720 ! . i6 $1.740
' 2.4 Housing Con train is 3 2 $300_ 4 $480 6 $540 I -12 $1,320
Subtotal 1~ ~a. $1,200 18 :, $2,160 .;36 . $3,240... _621 $6,600
..
TASK 3. Prepare Housing Element . ,·
3.1 Administrative Draft Housing Element 2 $300 4 $480 20 $1.800 ! 26 $2,580'
3.2 Public Review Draft Housing Element 4 $600 4 $480 14 $1.260 1 22 $2,340
3.3 HCD's 60-Day Review of Public Draft• 4 $600 2 $240 4 $360 : 10 . $1.200'
3.4 HCD's 90-Day Review/Slate Certification 2 $300 2 $240 0 $ -: .. 4.. $540
Subtotal I 12" . $1,800 . 12. · S1.44o·~, 38
TOTAL
Optional Tasks:
1 Council/Commission Workshop ( 1) 4 $600 4 $480 10 $900 ; 18 $1.980
2 Hearings for Housing Element Adoption (2) 8 $1,200 4 $480 6 $540 ; ·18 $2,220
Subtotal t '12 .. $1,800 ·a· $960 .· ''16 $1,440 ' . 36 $4,200
Notes:
1. Will need to re-do analysis of extremely-low, very-low, and low-income housing needs including update of affordability; and
update information pertaining to special needs groups. This assumes there will be no updates to the housing conditions survey and
map, aside from minor adjustments per City input.
2. This number assumes the existing VLI meets the needs of the new RHNA. Few minor map revisions required.
3. Review to ensure no new changes to governmental or non-governmental constraints sections. Will need to update
land/development costs and other non-governmental constraints
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