Rincon Consultants, Inc.
250 East 1st Street, Suite 1400
Los Angeles, California 90012
213-788-4842
w w w. r in co n co n su lt ant s. co m
December 23, 2024
Rincon Project No. 22-13430
Sunayana Thomas, Community Development Director
City of Fullerton
Community and Economic Development Department
303 West Commonwealth Avenue
Fullerton, California 92832
Via email: [email protected]
Subject: City of Fullerton 6th Cycle Housing Element Update Dear Ms. Thomas:
Rincon Consultants, Inc. (Rincon) respectfully requests a contract amendment of $60,952 plus a $30,000 contingency for the 6th Cycle Housing Element Update project. The contract amendment would support ongoing revisions to the Site Inventory and analysis in response to City Council direction, additional coordination with Department of Housing and Community Development (HCD), and coordination meetings with the City and Dudek. These unanticipated tasks were not included in the scope of work described in the Professional Services Agreement (PSA) dated August 15, 2024. Rincon also proposes to extend the term of the PSA from April 2025 to September 2025 to complete necessary deliverables.
Background
On December 20, 2022, the City Council approved a PSA for an amount not to exceed $315,784, inclusive of a $52,574 contingency to support the 6th Cycle Housing Element Update and other related tasks. In December 2023, the City entered into a stipulated judgement with Californians for Homeownership, Inc. and HCD. On March 25, 2024 and on July 1, 2024, Rincon submitted drafts of the Housing Element Update to HCD. HCD provided a review letter on August 15, 2024, and Rincon has been working with the City to address HCD’s comments while meeting the City’s needs to maintain existing communities and promote economic development.
On August 15, 2024, the City of Fullerton (City) and Rincon entered into a Professional Services Agreement that reallocated the $52,574 contingency among Housing Element update tasks and removed other tasks from Rincon’s scope of work.
On September 25, 2024, the Planning Commission recommended that the City Council approve the Housing Element update and zoning code updates. On November 19, 2024 and December 3, 2024, the City Council directed staff to revise the Sites Inventory in the Housing Element to address community concerns, reduce the number of sites proposed to be rezoned, and to revise the development standards as part of zoning code updates. On December 10, 2024, the City Council adopted the zoning code updates as revised and directed staff to revise the Housing Element Update for adoption on January 7, 2025.
City of Fullerton
City of Fullerton 6th Cycle Housing Element Update
2 Scope of Work – Phase II
Task 1 Project Management
At the time the August 15, 2024 PSA was executed, it was assumed that the project would adhere to the timeline included in the December 19, 2023 Stipulated Judgement. As a result of City Council direction on November 19, 2024, the project timeline, and resulting coordination and project management will be extended by at least an additional month. As of today, expenditures for this task have exceeded the authorized budget by approximately $6,000. Additional coordination with the City and Dudek is needed to address revisions to the Site Inventory, the HIOZ, and the General Plan. As such, Rincon requests an additional $12,000 ($6,000 for previous work and $6,000 for future work) for this task.
Task 2 Housing Element Update
As stated in the August 15, 2024 PSA, any changes to the Site Inventory would require substantial revisions to the Housing Element that would necessitate revisions to our scope of work, timeline, and project budget. Subsequent to the September 25, 2024 Planning Commission adoption hearing, Rincon revised the Site Inventory and associated analysis at the direction of City staff and to address public comments received in September 2024, which has prompted additional coordination with HCD, review of sites, and expanded analysis to support redevelopment potential.
Upon receiving direction from City Council to proceed with the Site Inventory as presented on December 10, 2024, Rincon produced a revised Housing Element update for the January 7, 2025 adoption hearing, which involved revising the Approved and Pending Projects list, the Housing Constraints, Housing Resources analysis, and the Housing Plan to align with revisions to the HIOZ development standards and revised Site Inventory, the Affirmatively Furthering Fair Housing analysis for internal consistency, and updating the public participation section to document comment letters and public participation. As of today, changes to the Site Inventory and Housing Element Update subsequent to September 25, 2024 have resulted in a budget exceedance of approximately $17,000.
Subsequent to receipt of the August 15, 2024 HCD comment letter regarding the City’s July 1, 2024 Housing Element update submittal, Rincon substantially revised the Housing Element pursuant to City direction. We anticipate that HCD will raise questions regarding the revisions, and as such, we anticipate the need for further revisions to address future HCD comments. We request an additional $32,000 for this task ($17,000 for previous work and $15,000 for future work). Given the unpredictable nature of future revisions, and to avoid the need to process future change orders, we request an additional contingency of $30,000 to address multiple HCD comment letters.
We assume that future revisions to the Housing Element would not involve revisions to the Site Inventory and would be limited only to addressing HCD comments.
Task 8 Public Hearings
The Rincon team has participated in one in-person Planning Commission public hearing (September 25, 2024) and three in-person City Council hearings (November 19, December 3, and December 10, 2024). Between the November 19, 2024 City Council hearing and the December 10, 2024 City Council hearing, Rincon worked with City staff and the project team to analyze various sites inventory scenarios to prepare for the hearings. As of today, the authorized budget has been exceeded by approximately $8,000.
City of Fullerton
City of Fullerton 6th Cycle Housing Element Update
3 Rincon will participate in one additional in-person Planning Commission public hearing and two City Council hearings (January 7, 2025 and a future hearing date). Rincon requests an additional $14,900 ($8,000 for previous work and $6,900 for future work) for this task.
We assume that hearing preparation would be limited to agenda report and presentation review and up to one hour for responding to questions prior to the hearing.
Task 9 HCD Certification
Upon City adoption of the HIOZ ordinance, Rincon will submit required documentation to HCD for final certification. Rincon anticipates that the Housing Element and documentation would be submitted twice due to potentially necessary revisions following the initial adoption for a total of $4,000.
Cost
Cost Assumptions
Rincon assumed the following in developing our scope of work and cost estimate. All deliverables will be provided electronically in PDF and/or Word format. Comments from the City will be provided as a consolidated set of comments in editable electronic format (i.e., as track changes in MS Word). Following review, each deliverable will be finalized and submitted in electronic (PDF) format. With the exception of the final adopted Housing Element that Rincon will ship to HCD as an optional task, the City would be responsible for printing all other hard copy documents.
Costs have been allocated to tasks based upon Rincon’s proposed approach. Rincon may re- allocate costs among tasks and/or direct costs as circumstances warrant so long as the adjustments maintain the total price within its authorized amount. With the exception of public hearings, meetings and community outreach will be conducted virtually.
Multiple iterative changes to the Site Inventory require substantial revisions to the housing element that may necessitate revisions to our scope of work, timeline, and project budget.
Rincon’s Project Manager will immediately alert City staff if requests for additional revisions may result in the need for additional budget, cause project delays, or affect the City’s ability to achieve the RHNA. Once Rincon determines that revisions the Site Inventory are feasible, preparation of updates would require a minimum of two weeks and may vary depending on the extent of revisions. If HCD requires submittal of a hard copy for any version of the Housing Element, the City will be responsible for the production and mailing of this document.
Cost Estimate
Our current authorized budget is $315,784. We are requesting an additional $60,952 plus a contingency amount of $30,000 for a total request of $90,952. Upon authorization of the contract amendment, the new authorized total fee for this project would be $406,736. Rincon reserves the right to reallocate the budget among tasks as circumstances warrant so long as the adjustments maintain the total price within the authorized amount. Any additional tasks not identified herein will be completed only upon authorization.
The amendment request is summarized as follows:
City of Fullerton
City of Fullerton 6th Cycle Housing Element Update
4 Tasks
Authorized
Budget
Allocation
Proposed
Amendment
Budget with
Proposed
Amendment Rationale
Housing Element Update
Task 1: Project Management $75,702 $12,000 $87,702 Additional meetings and coordination with City, Dudek, and
legal counsel
Task 2: Housing Element Update $192,678 $32,000 $224,678 Additional analysis and submittals Task 8: Public Hearings $17,340 $14,900 $32,240 Additional preparation and analysis
Task 9: HCD Certification $1,948 $2,052 $4,000 Two submittals of the adopted Housing Element update
Contingency $30,000 $30,000 Potential further revisions to respond to HCD comments
Total Requested $315,784 $90,952 $406,736
This proposal is valid for a period of 30 days and is fully negotiable to meet the City’s needs. We appreciate the opportunity to assist with this project. Please let us know if you have any questions about this proposal or need additional information.
Thank you for your consideration and for this opportunity to support your project. If you have any questions regarding this proposal, please contact Lilly Rudolph at 805-947-4828 or [email protected], or Brenna Weatherby at 760-205-2097 or [email protected].
Sincerely,
Rincon Consultants, Inc.
Lilly Rudolph, MPA, AICP
Project Manager
[email protected]
Contact for Clarification
Brenna Weatherby
Principal
[email protected]
Authorized to contractually obligate and negotiate
on behalf of Rincon Consultants, Inc.
Attachments
Attachment 1 Project Schedule
Attachment 1
Project Schedule
City of Fullerton
City of Fullerton 6th Cycle Housing Element Update
1-1
Project Schedule
Rincon proposes to adhere to a schedule depicted on the following table. The PSA dated August 15, 2024 expires in April 2025. Rincon proposes to extend the term of the PSA to September 2025 as shown in the table below.
Date Task and Responsible Party
August 15, 2024 Task 2.9. HCD provides formal written findings to City and Rincon August 20, 2024 Task 2.9. Rincon and City participate in video conference with HCD August 30, 2024 Task 2.9. Rincon and City participate in video conference with HCD September 9, 2024 Task 2.10. Rincon submits revised draft to City for Planning Commission consideration
September 25, 2024 Task 8. Rincon attends and presents at Planning Commission public hearing
November 19,
December 3, December
10, 2024
Task 8. Rincon attends and presents at three City Council public hearings
December 23, 2024 Rincon submits revised draft to City for City Council consideration January 7, 2025 Task 8. Rincon attends and presents at City Council public hearings January 10, 2025 Task 2.10. Rincon submits adopted Housing Element to HCD (following 10-day public review period commencing January 3, 2025) TBD Task 9. Rincon submits evidence of rezoning to HCD within 24 hours of receipt of executed resolutions and ordinances
February 25, 2025 Task 2.10 Rincon commences revisions to Housing Element in response to HCD comments
Spring 2025 Task 2.10. Rincon submits revised draft to City for Planning Commission consideration
Spring 2025 Task 8. Rincon attends and presents at Planning Commission public hearing
Spring/Summer 2025 Task 8. Rincon attends and presents at City Council public hearing TBD Task 9. Rincon submits evidence of rezoning to HCD within 24 hours of receipt of executed resolutions and ordinances