Consent Agenda Item 3f
STAFF REPORT
Consent Agenda Item
DATE: April 20, 2026
TO: Honorable Mayor and Council Members
FROM: Katey Schmidt, Senior Planner
THROUGH: Amy Nilsen, City Manager
SUBJECT: Professional Services Agreements with Planwest Partners, Inc. for the 2027– 2035 Housing Element Update
RECOMMENDED ACTION:
1. Authorize the City Manager to execute a professional services agreement with Planwest Partners, Inc., in an amount not to exceed $82,030 for preparation of the 2027–2035 Housing Element Update, including HCD certification support and CEQA compliance.
2. Approve the supplemental budget request for $20,000 to begin the 2027-2035 Housing Element Update this fiscal year.
EXECUTIVE SUMMARY:
In order to meet existing and future housing needs for all in the community, the State of California (Government Code Section 65583) requires that all local jurisdictions adopt a Housing Element as part of their Comprehensive General Plan. A Housing Element is a strategic housing plan outlining how the City will meet its housing needs, including identifying sites to accommodate new housing and programs to facilitate housing production.
State law requires that jurisdictions update their Housing Element and have it certified by the State Housing and Community Development Department (HCD) every eight years. The City must prepare and have its Housing Element certified by August 31, 2027, for the 2027-35 period. Due to the extensive work needed to prepare the Housing Element, the City will require the assistance of a consultant. After issuance of a Request for Proposals, staff recommend that the City award a contract to Planwest Partners, Inc.
BACKGROUND:
Since 1969, the State has required all local jurisdictions to adequately plan to meet the housing needs of everyone in the community. Local jurisdictions meet this requirement by adopting housing elements as part of their Comprehensive General Plan, which serves as the City’s "blueprint" for how the City will grow and develop. State law mandates inclusion of eight elements in comprehensive plans: land use, transportation, conservation, noise, open space, safety, housing, and most recently, environmental justice. Jurisdictions may elect to include additional elements.
Consent Agenda Item 3f
The Housing Element is one of the eight mandated elements in the Comprehensive General Plan and the only element that requires certification by the state. The Housing Element covers a period of eight years. California’s housing element law acknowledges that, in order for the private market to adequately address the housing needs of Californians, local governments must adopt plans and regulatory systems that provide opportunities for housing development. As a result, housing policy in California rests largely on the effective implementation of comprehensive local general plans and in particular, local housing elements.
The 2027–2035 Housing Element Update will address the City’s Regional Housing Needs Allocation (RHNA) and comply with State requirements related to Affirmatively Furthering Fair Housing (AFFH), housing site inventory analysis, and certification by the California Department of Housing and Community Development (HCD).
PROCUREMENT AND SELECTION
An RFP was issued in January 2026 and evaluated using criteria identified in the RFPs, including consultant qualifications, project understanding, approach, public outreach strategy, schedule, and cost. Following proposal review and interviews, Planwest Partners, Inc. ranked highest. The recommended consultant demonstrated strong familiarity with the City of Fortuna and extensive experience with General Plan and Housing Element updates throughout California.
SCOPE OF SERVICES
The Housing Element Update scope includes RHNA analysis, housing sites inventory, AFFH analysis, public outreach, CEQA compliance, and HCD certification support.
FINANCIAL IMPACT
The total estimated cost for the 2027–2035 Housing Element Update is $82,029.99 and will come from reserves. For fiscal year 2025-26 the total supplemental budget request is $20,000, with the remaining funds to be budgeted in the fiscal year 2026-27 budget during the regular budget process. These funds were reserved in the General Fund through the fiscal year 2025-26 budget process for this very purpose.
RECOMMENDED COUNCIL ACTION:
Authorize the City Manager to execute a professional services agreement with Planwest Partners, Inc., in an amount not to exceed $82,030 for preparation of the 2027–2035 Housing Element Update, including HCD certification support and CEQA compliance and approve the supplemental budget request for $20,000 to begin the 2027-2035 Housing Element Update this fiscal year.
Consent Agenda vote.
ATTACHMENTS:
1. Housing Element 2027–2035 Update Proposal from Planwest Partners
2. Supplemental Budget Request
3. Professional Services Agreements with Planwest Partners, Inc. for the 2027–2035 General Plan and Housing Element Update