Agenda Item No: N.9
AGENDA REPORT
DATE: April 7, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-51 HD Economic & Planning Systems Amendment
Approving an Amendment to Increase the Contract Amount Between the City of Fairfield and Economic & Planning Systems
Funding Source: $125,000; Low-Moderate-Income Housing Fund
Contact: LaTanya Terrones, (707) 428-7454
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
Adopt a resolution authorizing the city manager or designee to amend the agreement with Economic & Planning Systems (EPS) to increase the total contract from $99,945 to $125,000 to complete additional analysis associated with the City’s affordable housing nexus and commercial linkage fee study associated with consideration to implement an Inclusionary Housing Policy in Fairfield.
DISCUSSION
In 2023, the City issued a Request for Proposals (RFP) seeking a qualified consultant to prepare an Affordable Housing Nexus Study and Commercial Linkage Fee Study. The purpose of the study was to evaluate the relationship between new development and the demand for affordable housing and to determine a legally defensible fee structure that the City could adopt to support affordable housing development.
Following the RFP process, the City entered into an agreement with Economic & Planning Systems (EPS) to conduct the study. EPS has completed the primary scope of work under the existing agreement, including development of the nexus analysis and recommended fee framework.
As the study progressed and draft findings were shared with stakeholders, including members of the development community, additional questions and feedback were received regarding certain assumptions and c alculations used in the analysis. In response to this feedback, and to ensure the study is thorough, transparent, and legally defensible, additional analysis and recalculations are necessary.
The additional work requested of EPS includes further evaluatio n of development prototypes, updated financial feasibility modeling, and recalculation of certain fee assumptions based on developer feedback. This additional analysis will ensure that the final nexus study accurately reflects market conditions and development economics while maintaining compliance with state nexus requirements.
The original contract amount with EPS is nearing completion. The cost of the additional analysis will increase the total contract amount to more than $100,000, which requires City Council approval in accordance with the City’s purchasing policies.
Approving this amendment will allow EPS to complete the additional work needed to finalize the study and provide the City with the necessary technical analysis to consider adoption of an inclusionary housing and commercial linkage fee program.
FINANCIAL IMPACT
The amendment to the agreement with EPS will increase the total contract to an amount not-to- exceed $125,000. Funding for this work will be paid from the Low -Moderate-Income Housing Fund (LMIHAF).
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The nexus study process has included outreach and discussion with stakeholders, including members of the development community, who have provided feedback on draft assumptions and calculations used in the analysis.
ALTERNATIVE ACTION
The council may choose not to approve the amendment to the agreement with EPS. However, if the amendment is not approved, the City may be unable to complete the additional analysis required to finalize the nexus st udy and move forward with consideration of an inclusionary housing and commercial linkage fee program. This may directly impact the City’s ability to generate funding to support affordable housing development.
COORDINATED WITH
N/A
STAFF CONTACT
LaTanya Terrones, Sr. Project Manager
(707) 428-7454
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Contract Amendment