HomeMy WebLinkAbout01 - Professional Services Agreement for Housing Element UpdateCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 1
December 18, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Planning Department
Gregg Ramirez, Senior Planner
(949) 644 -3219, gramirez @city.newport- beach.ca.us
SUBJECT: Professional Services Agreement for Housing Element Update
RECOMMENDATION
Authorize the City Manager to execute a Professional Services Agreement with
PBS &J for the 2006 -2014 Housing Element Update and related CEQA review.
2. Approve a budget amendment increasing the expenditure appropriation of 2710-
8080 by $84,868 from the General Fund unappropriated fund balance
DISCUSSION:
Backqround
In September 2007 the State Department of Housing and Community Development
(HCD) adopted Regional Housing Needs Assessment numbers (RHNA) for the
Southern California Association of Governments (SCAG) region. The new RHNA
allocation designates the number of dwelling units each SCAG jurisdiction must provide
during the 2006 -2014 HCD planning period. The City's allocation is 1,784 dwelling units.
The adoption of the RHNA allocation coincides with the requirement to prepare an
update of the Housing Element that includes the new RHNA.
The current Housing Element was adopted by the City Council in July of 2006. Approval
of Measure V by the voters in November 2007 meant that the housing opportunity sites
identified therein, such as those in Newport Center and the Airport Area, could remain
unchanged.
Since adoption, Staff has submitted two draft revised Housing Elements to HCD in
hopes of obtaining certification of the revised element but has to date been
unsuccessful. Based on communications with HCD, the adopted element contains most
of the statutory requirements for the 2008 -2014 planning period. However, since
Housing Element Update PSA
December 18, 2007
Page 2
adoption in 2006, several new statutory requirements, including a detailed inventory and
analysis of the housing opportunity sites and polices and programs that address how
sites will be redeveloped with housing or mixed use, have been added. Staff believes
the most efficient course of action is to proceed with preparing the update reflecting the
new RHNA, new statutory requirements and update the demographic statistics and
related narrative. The update process will also include the required public outreach in
the form of two public workshops.
Environmental Review
The PSA is not defined as a project subject to CEQA; however, the update to the
Housing Element is. It may be possible to do an addendum to the General Plan EIR
however; this needs further analysis by staff and the consultant. If an addendum cannot
be done, environmental review will be conducted pursuant to CEQA requirements.
Schedule
The schedule identifies tasks for the period of January 2008 — October 2008. The
schedule calls for a draft to be prepared for Planning Commission and City Council
review and comment before submittal to HCD. Formal adoption hearings will be
scheduled after staff and HCD agree on the final contents of Element.
The schedule also includes two public workshops. It is anticipated that one workshop
will take place concurrently with a General Plan Implementation /Zoning Code Rewrite
public workshop and the other will be a focused housing event.
Budget
The budget for the project is divided into the Element Update and the environmental
review that totals $84,868.
Housing Element Update — Attachment A of the Proposal indicates the cost of services
to be $54,868.
Environmental Review — Although the exact extent of environmental review is unknown,
staff and the consult agree that a budget of $30,000 will likely cover costs.
Consultant Team
The consultant for this project will be PBS &J. The consultant team will include Linda
Tatum, Program Manager and Jessie Barkley, Senior Planner. During the latter stages
of our General Plan Update, EIP Associates was purchased by PBS &J. Jessie Barkley
played the lead role in the 2006 Housing Element and is familiar not only with the
Housing Element Update PSA
December 18, 2007
Page 3
Housing Element but the General Plan as a whole. Additionally, EIP /PBS &J prepared
the General Plan EIR.
Public Notice:
Public notice is not required for this item.
Prepared by:
Gregg am z
Senior Planner
Attachment:
Submitted by:
92 David Lepoo
Planning Direko /r,
A. Proposal for Housing Element Update from PBS &J
Attachment A
PBSJ
An employee -owned company
October 30, 2007
Gregg Ramirez
Senior Planner
City of Newport Beach
P.O. Box 1768
Newport Beach, California 92658 -8915
Subject: General Plan Housing Element Update
Dear Mr. Ramirez:
PBS &J is pleased to submit this proposal for professional services to assist the City of Newport Beach in
the preparation of its Housing Element update to reflect the new RHNA cycle and comments provided
by the Department of Housing and Community Development (HCD). It is submitted in response to
your oral request and addresses the objectives discussed by HCD. Jessie Barkley, Senior Planner and
Linda Tatum, Program Manager will serve as the primary staff on the Housing Element update.
In general, the tasks will involve the following
a. Update of demographic and housing information and associated text
b. Update of Housing Element constraints section in response to new state law and zoning
categories
c. Revision of Housing Element accomplishments
d. Revision and update of housing resources text to reflect the new RHNA allocation and the HCD
comment letter of September 10, 2007
e. Attendance at Planning Commission and City Council public hearings and two workshops.
f Participation in coordination meetings and conference calls with City staff.
We are prepared to commence the work program on notification from the City of Newport Beach
regarding the acceptability of the work scope and budget.
Sincerely,
PBS &J
Jessie Barkley Linda F. Tatum, AICP
Senior Planner Program Manager
Planning + Urban Design Planning + Urban Design
12301 Wilshire Boulevard • Suite 430 • Los Angeles, California 90025 • Telephone: 310.268.8132 • Fax: 310.268.8175 • www.pbsi.com
J
SCHEDULE
The following schedule is developed based on discussions with City staff, our proposed
scope of work, as well as our experience in preparing Housing Elements.
The Housing Element update is due June 30, 2008 with a 60 day review period. After the
Housing Element is formally adopted by the City Council, after addressing any HCD
comments, the Housing Element is resubmitted to HCD for a 90-day review.
While we will aim to have a Draft Housing Element to HCD for review by the June 30
2008 deadline, based on unknown factors (excessive comments by HCD, extra hearings
required) will do not believe that having an adopted Housing Element is possible by this
deadline.
Housing Element Schedule
1.
Contract Initiation
December 2007
2.
Project Kick -off conference call
2nd Week of January, 2008
3.
Receipt of any requested information/data by PBS &J January 31, 2008
4.
Housing Workshop #1
March, 2008
5.
Housing Workshop #2 (developer roundtable)
March, 2008
6.
Administrative Draft Housing Element
April 15, 2008
7.
Draft Housing Element (based on staff comments received within 2 weeks)
May 15, 2008
8.
Planning Commission Hearing
June, 2008
9.
City Council Hearing
June 2008
10.
Submittal of Draft Housing_ Element to HCD
June 30, 2008
11.
HCD 60 -day review
_ _
ending August, 2008
12.
Address HCD changes (assumes minor edits)
September, 2008
13.
Planning Commission Adoption Hearing
late September /October, 2008
14.
City Council Adoption Hearing
late September /October, 2008
15.
Submittal of Adopted Housing Element to HCD
October, 2008
A
CITY OF NEWPORT BEACH
HOUSING ELEMENT UPDATE
This Scope of Work represents PBS &J's proposed work program to prepare the City of Newport
Beach's 2008 -2014 Housing Element update. We understand that certain portions of the Housing
Element will require revision to address the Department of Housing and Community Development's
(HCD) review letter of September 10, 2007, the City's new RHNA cycle allocation of 1,769 housing
units, new State legislation such as AB 1866 and AB 2634, and the inclusion of relevant demographic
and housing information.
An initial conference call with PBS &J staff and City staff will take place to discuss project parameters,
refine and schedule the public outreach program, provide a list of needed data sources and define any
project protocols.
TASK 2 Needs Assessment, Constraints Analysis, and Accomplishments
Review
PBS &J will revise the City's existing Housing Needs Assessment to be consistent with State Housing
Element law and HCD's review checklist. State law requires that a Housing Element must contain a
thorough needs assessment, which describes and analyzes how the various characteristics and trends of
the City's population, households, housing market, and other factors interact with and shape current
and future housing needs.
Community Profile: The Community Profile will be updated to address any new available
demographic, economic, and housing data, new requirements to State housing law, (e.g., AB 1866 and
AB 2634), and information to address topics provided by HCD comment letter of September 10,
2007. It is understood that much of the original text of the Housing Needs Assessment will remain and that
the consultant team will only be updating relevant tables and portions of the document text.
It is assumed that the City will assist the consultant team by providing relevant information necessary to
update the Community Profile such as quantification of housing in the coastal zone, information on
second units, at -risk housing developments, condominium conversions and other data.
City of Newport Beach Housing Element Update 1
I
Scope of Work
Specifically the following topics wlll be updated:
• Demographics, income, and employment trends
• Household characteristics
• Special needs populations (including seniors, large households, female- headed households, persons
with disabilities, the homeless, farm labor, military personnel, and students)
• Housing type and growth trends
• Housing market conditions —new home ownership and rental data
IN Housing problems (including condition, overpayment, and overcrowding)
is At -Risk housing analysis
Constraints Analysis: This section will be revised, as necessary, to reflect comments provided in the
HCD comment letter of September 10, 2007, new State regulations, and new zoning categories created
as part of the comprehensive zoning ordinance update.
Review of Past Accomplishments: The current Housing Element will be reviewed to include any
additional accomplishments that have occurred since 2006. It is assumed that City staff will assist the
consultant team by providing information on City programs.
s MI FIINNTI .E r M s
PBS &J will evaluate the availability of vacant and underutilized land, financial resources, and
administrative resources to facilitate future residential development to meet the City's 2008 -2014
RHNA allocation of 1,769 units. Effectively addressing HCD's comments for adequate site capacity
within the Airport Area and Newport Center will be the key component of the Housing Element
update.
Specifically, the sites inventory discussion will be expanded to address the following comments provided
in the HCD September 10, 2007, comment letter. These items are as follows:
• More detailed description of the impact of parcel size on development feasibility
• Discussion that demonstrates mixed -use development or stand alone development are realistic for
vacant and under - utilized sites
* Explanation whether redevelopment, recycling or site intensification would require lot consolidation
to allow additional development
* Further clarification that the noise and height restrictions in the John Wayne Airport AELUP would
not impact housing capacities
It is assumed that City staff will provide GIS support for the creation of any new Housing site maps.
City of Newport Beach Housing Element Update
2
0
Scope of Work
Task 4.1 Evaluation of Past Accomplishments and Potential Housing Programs
PBS &J will discuss with City staff to determine the extent to which the City may want to revise any
housing element programs. As mentioned in the HCD comment letter of September 10, 2007,
Policy H.2.3 must include additional programs to facilitate the development of underutilized and /or
mixed -use sites. Additional programs may be included as necessary to address any new legislative
requirements and /or any additions by City staff. However, it is anticipated that changes to the existing
policies and programs will be minimal.
TASK 5 Community Participation Plan
Task 5.1 Community Workshops
Based upon discussions with City staff regarding the objectives and strategy for community
participation, PBS &J will prepare for up to two (2) community workshops. PBS &J understands that
the primary purpose of the workshops is to meet the community outreach objectives for the Housing
Element set forth by HCD, to advise the public about the Housing Element document and its purpose,
and to solicit information from service providers and housing developers.
The first community workshop will take place as part of the General Plan Implementation Workshop
series already being developed by City staff.
PBS &J suggests that the second workshop could be a targeted "round table" discussion with up to
fifteen local service providers and mixed - use /affotdable housing developers. The purpose of this round
table discussion is to provide input on potential regulatory and financial incentives that could facilitate
affordable housing development within key areas of the community such as the Airport Area and
Newport Center. These incentives will become part of appropriate new housing element programs (see
HCD comment letter on Policy H2.3).
PBS &J will provide all the ptesentation materials for the meeting, including any applicable PowerPoinr
presentations and poster boards, and will keep a written summary of the comments received.
It is assumed that City staff will be responsible for all noticing and advertising for both workshops
Task 5,2 Planning Commission and City Council Hearings on the Draft Housing Element
We propose a total of four public hearings (two heating with the Planning Commission and two with
the City CouncIl). one set of public hearings will be completed prior to sending the Draft Housing
Element to the Department of Housing and Community Development for their formal review and
comment. The second set of sessions will involve formal adoption of the Housing Element.
Specific tasks ate as follows
City of Newport Beach Housing Element Update
0
Scope of Work
Planning Commission Public 1-fearing
PBS &J will conduct one hearing before the Planning Commission that provides a detailed overview of
revisions that have occurred in draft Housing Element. The purpose of the hearing is for the Planning
Commission to recommend the draft Housing Element, with changes, to the City Council. PBS &J will
prepare all presentation materials for the public hearing. We assume that the City will make all
arrangements and prepare noticing for the meetings.
City Council Public Hearing
Following recommendations from the Planning Commission we will conduct a hearing with the City
Council that provides a detailed overview of the draft Housing Element prior to the release of the
Housing Element to HCD for their review and comment. PBS &J will prepare all presentation materials
for the public hearing. We assume that the City will make all arrangements and prepare noticing for the
meetings.
The updated Housing Element will be submitted for HCD review for the mandatory 60 -day review.
PBS &J will be responsible for revisions to the Element to address HCD comments. All revisions will be
prepared in underline /strikeout format to focus HCD reviews on changed text. We are anticipating one
round of revisions to negotiate policy concerns and provide supplemental information. This budget
provides an allowance of 36 hours for revisions.
While our goal is to achieve HCD certification of the Housing Element, certification is not guaranteed
Should a consensus on policy commitment cannot be reached between the City of Newport Beach and HCD,
the City can choose to adopt the Housing Element with findings that indicate the Housing Element as
substantially complies with State law.
TASK Planning Commission -Adoption k
Housing
The final task will be to commence with the adoption of the Housing Element. During this stage we
have budgeted one hearing with the Planning Commission and one hearing with the City Council on
the Final Housing Element. For the public hearings during this stage, PBS &J staff will provide a policy
level overview of the Housing Element, focusing on revisions since the initial draft was submitted. We
assume that the City will make all arrangements and noticing for the meetings. Our budget provides an
allowance for public hearings, with all hearing attendance to be billed on a time - and - materials basis.
s
PBS &J will produce a final electronic copy of the Housing Element and one original reproducible hard
copy of the final Adopted Housing Element.
City of Newport Beach Horsing Element Update 4
�0
Attachment A
NEWPORT BEACH Housing Element Update
October 2007
1\
Hours
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$165
$120
$115
$125
Task
Cost
Housing Element Update
Update Community Needs
Update demographic and housing information and
8
25
$4,320
Assessment
minor text
8
Update Constraints Section
This section will be updated to reflect new state
14
$3,000
law and new zoning categories
Update Housing Resources Section
Land use resources will be updated to reflect new
16
30
$6,240
RHNA allocation and HCD comments
Update Housing Accomplishments IRevise
section to reflect new RHNA cycle
10
20
$4,050
Update Housing Element Policies
Coordinate with City to reflect HCD comments
Assumes this will be coordinated with the GP
8
10
10
16
_
8
$2,520
$4,490
Attend 1 Workshop
Implementation Worshop
Attend Housing Roundtable
Coordinate Housing "roundtable" workshop
10
16
8
2
$4,740
(workshop 2)
Maps
!Update Housing Element maps (assumes new maps
4
$500
. 'twill be produced by the City)
_
Format document
Format Document including other minor edits
12
__ _.
!
_.
$1,380
Incorporate any City Comments
Revise per City comments
8
14
8
2
$4,170
Coordinate HCD Comments
Assumes one round of HCD comments.
16
20
2
$5,270
Project Management and
Coordination with City (assumes project
__
coordination with the City
management, 1 in-person meeting and up to 3
18
22
8
4
$7,030
conference calls)
Public Hearing
Assumes 2'planning commission, and 2 City Council
_
Hearing (including preparation of PowerPoint
20
24
4
$6,640
presentation)
Total Hours
132
's 211
50
12
$54,350
Total Labor
$21,780
$25320
1 $5750
$1,500
„ ' ,
ice'.
Direct costs _
Mileage, photocoping,two poster boards, FeclEx. 2 copies of printed Housing Element are
$450
_
SubconsultaM Admin Fee 15%
$68
Total Direct Cosh /Expenses
$518
TOTAL ESTIMATED COST
1 $54,868
1\
EM:
An employee -owned company
HOURLY BILLING RATES AND JOB CLASSIFICATIONS
California Sciences and Planning Division
Senior Division Manager/ Principal Technical Professional .................. ......................$190 —$260 / hour
Senior Program Manager / Senior Project Director / Senior Planner IV / p
Senior Scientist IV ................................................. ............................... ......................$175 —$220 / hour
Program Manager / Senior Environmental Manager III / Project Director /
Senior Planner III / Senior Scientist III .................. ............................... ......................$150 —$190 / hour
Senior Environmental Manager / Senior Planner II / Senior Scientist II /
Senior Engineer II .................................................. ............................... ......................$120
—$160 / hour
Associate Environmental Manager / Associate Planner / Senior Scientist I .....................$95
—$125 / hour
Environmental Specialist / Planner II / Scientist II ............................ ............................$85
—$110 / hour
Environmental Analyst / Planner I / Scientist I ........................................ ........................$65
—$90 / hour
Senior Administrator ......................................................................... ............................$90
—$120 / hour
Senior Word Processor ...................................................................... ............................$ %5 —$100 / hour
WordProcessor ...................................................................................... ........................$65 —$90 / hour
Administrative ........................................................................................ ....................:...$55 —$80 / hour
Technical Aide I / Technical Intern I ...................................................... ........................$45 —$65 / hour
Mileage................................................................................................. ................:.............. $.485 / mile
In addition, identifiable, nonsalary costs that are directly attributable to the project (i.e., travel, meals, lodging, auto
rentals, printing and copies, graphic materials, phone charges, equipment and specialized computer charges, etc.) and
subcontractor fees include a 15% administration charge to cover overhead and administration.
1. This schedule is effective until January 1, 2008, and is subject to annual and / or periodic revisions thereafter, as
necessary to accommodate inflationary trends, salary adjustments, and the general costs of business.
2. Invoices will be subm tied by Consultant monthly. Client will notify Consultant, in writing, of any objections to
an invoice within ten (10) days of the date of invoice. Otherwise, the invoice shall be deemed acceptable by the
Client. Amounts indicated on invoices are due and payable immediately upon receipt.
3. A late payment finance charge at a rate of 18% per annum (or the maximum amount allowed per law if lower) will
be applied to any unpaid balance commencing thirty (30) days after the dare of the original invoice.
4. Fees for litigation and expert witness services will be charged at $450.00 per hour with a 4 -hour minimum per day.
City of !Newport Beach NO. BA- 08BA -034
BUDGET AMENDMENT
2007 -08 AMOUNT: $sa,s6s.00
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates Increase in Budgetary Fund Balance
Increase Expenditure Appropriations AND X Decrease in Budgetary Fund Balance
Transfer Budget Appropriations No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
from additional estimated revenues
PX from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase expenditure appropriations from unappropriated General Fund Fund Balance for the Housing Element
Update and related environmental review.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE Amount
Fund Account Description Debit Credit
010 3605 General Fund - Fund Balance $84,868.00 "
REVENUE ESTIMATES (3601)
Fund/Division Account Description
EXPENDITURE APPROPRIATIONS (3603)
Description
Division Number 2710 Planning - Administration
Account Number 8080 Services - Professional & Technical $84,868.00
Division Number
Account Number
Division Number
Account Number
Division Number
Account Number
Division Number
Account Number
Automatic System Entry.
'i
Signed: /0) - /ot -e7
Financial Approval: Administ a Services Director Date
Signed: /
Administrative Ap oval: ity Manager at
Signed:
City Council Approval: City Clerk Date