City of Gonzales
COMMUNITY DEVELOPMENT DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: December 5, 2022
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-83
RECOMMENDATION
It is recommended that the City Council approve Resolution No. 2022-83, A Resolution of the City Council of the City of Gonzales rescinding Resolution No. 2022-63 that authorized an Agreement between Harris and Associates for Initial Work on the City of Gonzales 6th Cycle Housing Element Update for the Period 2023-2031, and approving and authorizing a new Agreement between 4LEAF, Inc. for Planning Services for the City of Gonzales 6th Cycle Housing Element Update for the Period 2023- 2031.
BACKGROUND
On September 6, 2022, staff brought before the City Council, Resolution 2022-63 to execute a contract with Harris and Associates to begin initial work on the City’s Housing Element for $65,000 the City had already been awarded through the State of California to reimburse our city expenses in preparing an updated Housing Element. The Harris and Associates estimated cost to complete the Housing Element was ~$460,000, of which no money had been budgeted for the tasks ahead. The City had previously secured a state reimbursement of $65,000 that we could apply to the contract. Otherwise, to continue the task, the city would need to find an estimated $395,000 to complete the 6th Cycle Housing Element.
Since the September 6, 2022, City Council action to authorize a contract and begin work, the City learned that a neighboring city, Soledad was poised to award a 6th Cycle Housing Element contract for approximately $200,000.
Staff considered the matter of the substantially lower price and determined that our previous efforts at soliciting bids to prepare the 6th Cycle Housing Element may have been too narrow. We had previously AGENDA
ITEM
6 advertised and circulated our need for services among nine preapproved planning services contractors already vetted by the city. We received only two responses then – and were taken aback with the bid responses approximating $400,000 and $460,000. Staff now thought it wise to re-cast our efforts to a larger pool of contractors, and to be more explicit in the City’s size and budget constraints to solicit a more affordable housing element contractor.
On September 27, 2022, staff distributed and circulated a “Second Request for Proposals for the 6th Cycle Housing Element Update for the Planning Period 2023-2031.” Staff posted the “job” on the IMS Integrated Marketing Systems Website and soon received queries. By the closing date of October 18, 2022, staff had fielded several phone calls of interest, received three timely responses to the second request, including a second response from Harris and Associates. The budgets proposed by the three respondents are as follows:
• Harris & Associates $459,100 (unchanged from the first effort) • Placeworks $206,465 (the same firm that won the Soledad contract) • 4LEAF, Inc $81,320
On Monday, October 31, 2022, staff called and met online with 4LEAF, Inc. to be introduced to their consultant team, talk through their experience and housing element accomplishments, price points, and what City efforts would be required to complete this effort. Staff was very encouraged.
Additionally, on November 15, 2022, the Community Development Director conferred with Mike Renner, the Executive Project Manager for 4LEAF to discuss aspects of the environmental review and further reducing City expenses to prepare for the Housing Element 6th Cycle. We agreed to a refined Scope of Work and Budget.
As described previously in September to the City Council, there are potential penalties from the State of California, if the City does not complete the 6th Cycle Housing Element Update process in a timely manner. State funding programs that require a local jurisdiction’s Housing Element compliance include:
• Community Development Block Grant Program
• Infill Infrastructure Grant Program
• Local Housing Trust Fund Program
• Affordable Housing and Sustainable Communities Program • Permanent Local Housing Allocation Program
• Caltrans Sustainable Communities Grant Program
REVIEW & ANALYSIS
The applicant’s Scope of Work and Budget (Exhibit A and B to the attached resolution) includes the tasks and components necessary to complete a 6th Cycle Housing Element update. To meet the City’s need for a more affordable Housing Element preparation, the city-side of this effort will have us committed to inhouse tasks that are better served by familiar staff with the City of Gonzales. We can commit to:
• Conducting Community Outreach
o Through our existing networks and conventions.
• Providing dedicated website pages for the Housing Element preparation and interactive Facebook, social media, and press releases. o These are skills and communication platforms that the City should practice and enhance anyway.
• Have staff proceed independently with Safety Element and Environmental Justice Element updates for adoption or acknowledgement in place by November 2023. o This is a big task for staff, yet we can build on foundations pioneered in the Health and Wellness Element 2018 update to the General Plan. • Native American Tribal Consultations.
o Regulations require that these consultations be “government-togovernment.” (The consultant will provide technical direction to assist our efforts)
• Processing a Categorical Exemption for purposes of compliance with the California Environmental Quality.
Funding. In September of 2020, the City conpletedan application for and received a $65,000 LEAP Grant from the State of California for financial assistance in preparing the 6th Cycle Housing Element Update. The City’s application indicated that the full $65,000 would be used and that the Housing Element Update was anticipated to be completed for that amount. In this second request for proposals and prices, 4LEAF, Inc. initially offered a contract price of $81,320. This left us in a deficit of $16,320.
The City of Gonzales Community Development Director, in conferring with Mile Renner, as introduced above, will be taking a new approach to the CEQA Documentation necessary to approve a 6th Cycle Housing Element. With mutual concurrence, the consultant has dropped their CEQA compliance tasks from the Scope of Work and has agreed to a reduced price of $65,000 subject to the in-house staff tasks identified above. (A far cry from the additional $395,000 we originally thought). No additional funding appears necessary.
Attached to this staff report is a Resolution to rescind Resolution 2022-63 that authorized an Agreement between Harris and Associates for Initial Work on the City of Gonzales 6th Cycle Housing Element Update for the Period 2023-2031 and approves and authorizes a new agreement between 4LEAF, Inc. for Planning Services for the City of Gonzales 6th Cycle Housing Element Update for the Period 2023-2031.
The 4LEAF Scope of Work for Planning Services (Exhibit A and e-mail from Mike Renner) includes the completion of the 6th Cycle Housing Element, except the tasks detailed above that reflect the expected Community Development Department and City efforts in community outreach, internet and media, updating two companion General Plan elements, tribal consultation, and CEQA documentation. Staff is recommending that the Contract be constructed for a maximum of $65,000.
Consultant Experience. (Excerpted from the 4LEAF Proposal for Services). 4LEAF, Inc. (4LEAF) is a full-service municipal services firm with 21 years of professional experience and a growing Planning Division. Staff dedicated the City of Gonzales 6th Cycle Housing Element will primarily include Jane Riley, and Bret McNulty:
• Jane Riley, AICP: Jane has been preparing housing elements and housing policies and programs for 28+ years for communities ranging in size from under 10,000 to over 500,000. She is currently leading the 4LEAF team in the preparation of the City of San Marino and City of Santa Clarita Housing Elements and in addition to her housing element work, she has written housing and inclusionary ordinances and workforce housing programs. • Bret McNulty: Bret has over 21 years of Planning and Development services experience with 11 years between the County of Santa Barbara, the City of Sebastopol, and the County of Sonoma.
He has experience leading the preparation, adoption, and certification efforts for economic development and public outreach programs. He has managed and co-authored comprehensive plan and community plan updates for Orcutt, Los Alamos, and county-wide economic development study, development code amendments, design guidelines, and grant applications.
Staff has followed through with calling several of their professional contacts and has had several on-line computer and telephone conversations with the firm. All positive experiences to City staff.
How the Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Getting underway with the 6th Cycle Housing Element, and its successful certification at the state level will facilitate a greater understanding of our citizens’ housing needs and how best to address income disparities, fairness and social equity in housing opportunities and local programs that may be crafted or revised. Additionally, a certified and timely Housing Element allows the City to continue to pursue state funding programs for transportation, infrastructure, and housing, uninterrupted.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: The City of Gonzales can assign our existing $65,000 REAP funding resource to fund this effort. Staff will continue to pursue additional funding sources should they become available to better offset staff efforts.
City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: Having gone out for a second effort at finding a better cost to complete the 6th Cycle Housing Element, city staff has reduced its potential unfunded consultant expenses from approximately $395,000 to $0. City staff has stepped up to demonstrate a local in-house effort at community outreach, communications, general plan updates, and CEQA review. Staff will work these items into the current tasks underway and on-going in the Community Development Department.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X N/A
• Housing X Yes No N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explain: See Vision explanation above.
ALTERNATIVES
Amend or modify staff recommendation.
BUDGET IMPACT
Presently the City has secured a $65,000 grant from the State of California. No additional budgetary impact for consultant services is foreseen at this time.
CONCLUSION
Staff recommends that the City Council approve Resolution No. 2022-83, A Resolution of the City Council of the City of Gonzales rescinding Resolution No. 2022-63 that authorized an Agreement between Harris and Associates for Initial Work on the City of Gonzales 6th Cycle Housing Element Update for the Period 2023-2031, and approving and authorizing a new agreement between 4LEAF, Inc. for Planning Services for the City of Gonzales 6th Cycle Housing Element Update for the Period 2023- 2031.
Attachments:
1. Resolution No. 2022-83 w/ Agreement and Exhibts A & B
2. Resolution No. 2022-63 (Being Rescinded)