CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
1/9/2023
1 SUBJECT:
Fourth Amendment to Consultant Services Agreement for On-Call Planning Services Between the City of Pacifica and Consulting Firm Good City Company RECOMMENDED ACTION:
Move to adopt the attached resolution to approve the Fourth Amendment to the Agreement for Consultant Services between the City of Pacifica and Good City Company, by increasing the contract amount by $140,000 with a total not to exceed amount of $460,000 and, to authorize the City Manager to execute the amendment.
STAFF CONTACT:
Christian Murdock, AICP, Planning Director
(650) 738-7341
[email protected]
BACKGROUND/DISCUSSION:
The Planning Department is processing a significant number of routine and complex development project applications submitted for City permits. The Planning Department is also the lead department for several City Council priority initiatives, including but not limited to ongoing efforts to implement the General Plan update and Sharp Park Specific Plan, and updating the Housing Element of the General Plan. The Planning Department also has a key supporting role in several other priority initiatives.
The Planning Department currently relies on three consulting firms to augment planning staff resources for routine project reviews and California Environmental Quality Act (CEQA) analyses1. The costs for these activities related to private development projects is reimbursed by project applicants. However, certain activities initiated by the City are funded from General Fund, grant, and/or other funding sources depending on the nature of the activities being undertaken.
Good City Company is supporting Planning Department staff with the 6th Cycle Housing Element update as well as private development project reviews. Good City Company brings unique expertise to the Housing Element task as it has supported several other jurisdictions in San Mateo County with their Housing Element updates. Good City Company, in consultation with City staff, originally estimated the cost for it to prepare a draft Housing Element document at $90,000. The City Council authorized the Third Amendment to the Agreement for Consultant Services (“Agreement”) for this amount plus a $10,000 contingency on September 26, 2022.
Since the City Council authorized the Third Amendment to the Agreement with Good City Company, the level of effort associated with the Housing Element update has become more 1 These three consulting firms are Good City Company, Metropolitan Planning Group (M-Group), and Raney Planning & Management.
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clearly understood based on what other cities are experiencing. Several San Mateo County jurisdictions have received their comment letters from the California Department of Housing and Community Development (HCD), the state agency responsible for reviewing Housing Element updates for substantial compliance with state law. The extent of analysis requested by HCD and the number and detail of comments provided in those letters on other jurisdictions’ draft housing elements has required a significant upward recalibration of the amount of work that will ultimately be required for Pacifica’s Housing Element update. Therefore, the City Manager recommends a Fourth Amendment to the Agreement with Good City Company to allow work on the Housing Element update to continue uninterrupted.
Staff, in consultation with Good City Company, now estimates that preparation of an adequate draft Housing Element and support for responses
to potential HCD comments will require an additional $140,000 (an additional $150,000 minus the $10,000 contingency authorized by City Council in the Third Amendment).
ALTERNATIVE ACTION:
Deny, or authorize a different amount for the proposed amendment to the Agreement.
Authorization of a reduced amount will require Planning Department staff to shift direct staff resources to the Housing Element update and away from other City Council priority initiatives.
Doing so would also delay adoption of the Housing Element update while Planning Department staff take over responsibilities from Good City Company while continuing to perform other staff general responsibilities, including obligations to process building permit applications and other private development project applications.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Good City Company’s support of the Housing Element Update is consistent with the following Council-adopted Work Plan initiative:
● Item 10: Prepare an update to the Housing Element of the General Plan.
FISCAL IMPACT:
The Fiscal Year 2022-2023 (FY 2022-23) budget allocated $103,449 for the Housing Element update process. The allocated funds included $50,000 from the Local Early Action Planning (LEAP) and $33,449 from the Regional Early Action Planning (REAP) grant programs (totaling $83,449). Allocated funds also included $20,000 from the General Fund for community engagement efforts for the Housing Element update. The City Council, during discussion of the Housing Element update community engagement strategy on August 8, 2022, directed a citywide mailing and third community meeting that resulted in additional costs of approximately $11,000 that were not included in the FY 2022-23 adopted budget.
Good City Company’s original estimate to support the Housing Element Update exceeded the Housing Element Update costs included in the FY 2022-23 adopted budget by $16,551. That amount, plus the additional community engagement directed by City Council, resulted in an additional cost of approximately $27,551 above the FY 2022-23 adopted budget for the Housing Element update. Staff identified salary savings in the Planning Department resulting from position vacancies that were sufficient to cover those costs, and did not request a budget amendment at that time.
The additional $140,000 associated with the proposed Fourth Amendment to the Agreement exceeds potential salary savings within the Planning Department. Staff has identified at least $50,000 within the FY 2022-23 adopted budget for the Planning Department that can be Pacifica City Council 3
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reallocated to the Housing Element update because the anticipated actions included in the budget will not be undertaken this fiscal year. Therefore, an additional $90,000 will be needed to cover the additional cost. Staff will revisit this matter during the mid-year budget review which is currently underway and will be presented to Council in March, 2023. If a budget amendment is needed at that time, staff will include an additional appropriation from the unassigned General Fund balance to ensure full funding of this activity within the Planning Department’s budget.
ORIGINATED BY:
Planning Department
ATTACHMENT LIST:
Att1-Resolution for Contract Amendment (DOCX)
Fourth Amendment - Good City Company (PDF)
Third Amendment - Good City Company (PDF)
Second Amendment - Good City Company (PDF)
First Amendment - Good City Company (PDF)
Original Agreement - Good City Company (PDF)