Administrative
Report
H.5., File # 23-7036 Meeting Date: 12/12/2023
To: MAYOR AND CITY COUNCIL
From: SEAN SCULLY, ACTING COMMUNITY DEVELOPMENT DIRECTOR TITLE
APPROVE A FIFTH AMENDMENT TO THE AGREEMENT WITH VERONICA TAM AND ASSOCIATES, INC. FOR SERVICES RELATED TO THE PREPARATION OF AN INCLUSIONARY HOUSING ORDINANCE FOR AN ADDITIONAL COST OF $21,420, INCREASING THE TOTAL CONTRACT NOT TO EXCEED AMOUNT TO $216,835, AND TO EXTEND THE TERM TO DECEMBER 31, 2024
EXECUTIVE SUMMARY
Veronica Tam and Associates, Inc. (VTA) has been contracted to assist with the preparation of the City’s Inclusionary Housing Ordinance. A fifth amendment to the Agreement is required to support additional information and studies concerning inclusionary housing in the overlay zones and comparative analyses with other jurisdictions requested by the City Council during the May 9, 2023 inclusionary housing discussion. The cost of the additional work is $21,420. The work, and associated City Commission and City Council considerations/actions are expected to be complete by December 31, 2024.
BACKGROUND
On October 20, 2020, the City Council approved a contract with VTA to begin work on the 6th Cycle Housing Element update and to draft an Inclusionary Housing Ordinance. The original contract cost was not to exceed $161,950 with a term ending June 30, 2022. Subconsultants for the contract include Keyser Marston Associates (KMA), which is responsible for performing the financial evaluation for the Inclusionary Housing Ordinance.
The first and second amendments included additional funds for the Housing Element scope of work, as well as extensions to the term of the contract, based on the additional required work to complete the Housing Element stemming from the Department of Housing and Community Development’s (HCD) feedback. VTA has completed the work on the City’s 6th Cycle Housing Element update, which was adopted by City Council on July 5, 2022, and certified by HCD to be in compliance with State Housing Element Law. The first and second amendments increased the not to exceed contract total to $173,890 with a term ending March 31, 2023.
Third and fourth amendments to the agreement were required for additional scope of work and costs associated with the preparation of the City’s Inclusionary Housing Ordinance. The scope included investigation of multiple financial evaluation options and presentations at additional City Council meetings. The third and fourth amendments increased the not to exceed total to $195,415 and extended the term to December 31, 2023.
H.5., File # 23-7036 Meeting Date: 12/12/2023
This fifth amendment to the Agreement is required to support additional research and study of inclusionary housing production in “overlay zones,” creation of discounted in-lieu fees for areas outside of the “overlay zones,” comparative economic analysis of five cities, and presentations at two additional meetings requested by the City Council during their inclusionary housing discussion on May 9, 2023.
The cost of the additional work requested in the fifth amendment is $21,420, and will increase the contract not to exceed amount to $216,835.
COORDINATION
Preparation of the contract amendment was coordinated with the City Attorney’s Office.
FISCAL IMPACT
Funding for the original VTA contract amount of $161,950 was provided by the SB2 Grant Award for completion of the Housing Element Update ($106,700) and from the General Plan Maintenance Fund for preparation of the Inclusionary Housing Ordinance ($55,250).
The additional $10,440 of costs approved with the first amendment, the $1,500 for the second amendment, the $13,125 for the third amendment, and the $8,400 for the fourth amendment were all funded by the General Plan Maintenance Fund.
Funding for the $21,420 of costs needed for the fifth amendment will also be paid by the General Plan Maintenance Fund.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - Fifth Amendment Veronica Tam & Associates, Inc. · Veronica Tam & Associates Additional Scope & Fees, August 4, 2023 · Agmt - Fourth Amendment Veronica Tam & Associates, Inc., June 20, 2023 · Agmt - Third Amendment Veronica Tam & Associates, Inc., December 20, 2022 · Agmt - Second Amendment Veronica Tam & Associates, Inc., October 4, 2022 · Agmt - First Amendment Veronica Tam & Associates, Inc., June 7, 2022 · Agmt - Original Agreement Veronica Tam & Associates, Inc., October 20, 2020