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DISCUSSION
City of San Bernardino
Request for Council Action
Date: May 1, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager
Gabriel Elliott, Director of Community Development and
Housing
Department: Community Development & Housing
Subject: Contract Amendment for PlaceWorks for the preparation of the City’s General Plan Update and other related
documents (All Wards)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve a contract amendment for PlaceWorks in the amount not to exceed $634,825.09.
Executive Summary
PlaceWorks is requesting a contract amendment in the amount of $634,825.09 to cover current accrued costs and future costs for labor and work products related to the (a) final publication of the State Department of Housing and Community Development (HCD) certified 2021-2029 Housing Element, (b) preparation of the 2050 Environmental Justice Element (EJ), preparation and completion of the City’s General Plan update, and (d) project administration and coordination for the extension of the schedule for completion of the work products beyond the previously City-confirmed time-frame of March 2023.
Background
On April 7, 2020, the city released a Request For Proposal (RFP) for preparation of the General Plan update, the Downtown Specific Plan, an update of the Development Code, the preparation of the Housing Element, and the environmental analysis for the projects. In consultation with prospective consultants prior to submission, the city identified a budget of $4,125,000 to cover the cost of the projects. This budget was derived from a combination of funding sources ranging from the $3,000.000.00 received from the State of California, SB -2 Grants ($625,000.00), and LEAP Grants ($500,000.00).
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A total of six (6) firms, including PlaceWorks, responded to the RFP, with submittals ranging in price from a low of $2,211,510 to a high of $3,621,484. The bid submitted by PlaceWorks was for $3,597,985.
On September 16, 2020, the city entered into a Professional Services Agreement (Resolution No. 2020-231) with PlaceWorks with the scope of work identified above.
On March 22, 2021, the city signed and accepted the Project Guidance Document prepared by PlaceWorks. At that time, the project schedule was designed for final adoption in Spring 2023.
Project Funding
On November 6, 2019, the Mayor and City Council adopted Resolution 2019-320 authorizing the City Manager to enter into an agreement with the State of California to receive $3,000,000.00 for an update to the City’s General Plan.
On May 29, 2020, the City received approval of a $625,000.00 reimbursable grant to assist in the General Plan project. The original term ran through December 31, 2022, but was extended to December 31, 2023. To date, the entirety of the grant has been expended and fully reimbursed to the city. (SB – 2)
LEAP Grant – On July 21, 2021, the City Council adopted Resolution No. 2021-091, authorizing the City to accept the Local Early Action Planning (LEAP) Grant funds in the amount of $500,000.00. These funds were later allocated to the project budget through Amendment No. 1 (see below). The LEAP funds are part of a reimbursable grant set to expire on September 30, 2024. To date, approximately $410,000.00 has been invoiced towards this grant.
Amendment No. 1 – On May 4, 2022, concurrent with the allocation of the LEAP Grant funds, a request was made for additional funding ($297,323.00) to be used for expanded public outreach. The City Council denied the request for additional funding.
To date, no additional amendments have been proposed.
Discussion
The City established a General Plan Advisory Committee (GPAC) to aid in the preparation of the General Plan update. The first meeting of the GPAC was held on July 15, 2021, 10 months after the Professional Services Agreement with PlaceWorks was entered into. The last meeting of the GPAC was on May 1, 2023. Comments received during the GPAC deliberations have been incorporated into the draft General Plan update. The Downtown Specific Plan Advisory Committee (DTAC) was established to aid in review of the draft components of the Downtown Specific Plan (DTSP). Meetings were held beginning July 28, 2021, and ran regularly through August 2022.
The draft land use plan for the zoning code update was provided by PlaceWorks in the fall of 2022. On February 18, 2023, the city was sued over the failure to adopt a 2 0
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compliant Housing Element for the 6th Cycle. Staff’s focus shifted to completion and adoption of the Housing Element and the resources associated with that. Over time the preparation of the Downtown Specific Plan and remaining sections of the General Plan was placed on hold, while, with limited staff and turnovers at all levels of staffing, focus was on the preparation of a compliant Housing Element.
In a letter from PlaceWorks dated March 21, 2024, to the City , PlaceWorks indicated that the requested contract amendment was a result of costs for labor and work products completed to date and anticipated for (a) final publication of the State Department of Housing and Community Development (HCD) certified 2021-2029 Housing Element, (b) preparation of the 2050 Environmental Justice Element (EJ), and (c) project administration and coordination for the extension of the schedule for completion of the work products beyond the previously City-confirmed time-frame of March 2023.
For the Housing and EJ Elements, the increase of fee is attributable to state legislation enacted and new technical guidance issued by the State of California Department of Housing and Community Development (HCD) and the California Attorney General subsequent to the finalization of the work scope and budget contained in the Agreement, preparation of responses to litigation filed by multiple entities regarding the schedule and content of the Element, and requests from City staff to prepare the 2022 and 2023 Annual Planning Reports (APR). The fee for administrative and management tasks is largely attributable to delays attributable to prioritization of City staff’s participation in completion of the Housing Element.
Housing Element
With respect to litigation, the Public Housing, Inland Counties, and the ACLU filed litigation, resulting in extensive negotiations and revisions for the draft Housing Element. This has affected the Element’s housing needs assessment, constraints analysis, land inventory, public outreach, and programs. In addition, since the project’s inception, the State of California has issued a new fair housing guidebook (Guidance for All Public Entities and for Housing Elements, April 2021), AB 2339 Emergency Shelter Guidance (2023), and the Group Home Technical Advisory (2022) – all of which have fundamentally expanded the scope of technical analyses and recommended policies and programs of the Housing Element.
Environmental Justice
Since initiating work preparing the Environmental Justice Element, the California Attorney General released a Best Practices Guide for SB 1000 (September 2023) which significantly expands the breadth of analysis, clarifies and expands the areas considered disadvantaged, clarifies expectations for significant public input, and requires detailed implementation programs. In addition, many nearby cities with heavy industry have received close review and/or legal action by the California Attorney General and local advocacy groups over environmental justice issues, improper environmental clearance, or lack of public input. The budget augment reflects a 2 0
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similarly challenging process to address the environmental justice issues in San Bernardino.
Project Administration and Management
Budget overrun due to (a) additional weekly project and frequent task-related coordination meetings, project tracking, invoicing, and updates to project schedule due to schedule extension beyond completion date stipulated in contractual agreement for which the budgeted funds were fully expended; (b) additional tracking of tasks/documentation required in response to Housing Element litigation and multiple HCD reviews of draft Elements; (c) preparation and processing of multiple budget modifications in response to requests for additional and/or modified work products (e.g., Annual Planning Reports, Truck Routes Study, Local Hazards Mitigation Plan); (d) and delays in receipt of staff comments on draft work products due to their prioritization of the Housing Element and internal City assignments.
Project Status and Projected Completion
General Plan – Based on the current project schedule, a complete draft of all materials is anticipated to be available in the 4th quarter of 2024, with adoption in the 1st quarter of 2025,
Housing Element – The 2021-2029 Housing Element has been completed and was adopted by the City Council on February 21, 2024.
Downtown Specific Plan – A draft of the Downtown Specific Plan has been prepared.
This draft is approximately 90% complete. As noted above, the DTSP was put on hold in early 2023 to complete adoption of the Housing Element. The remaining work to be completed will focus on specific language necessary to ensure consistency with the new Development Code.
Development Code – A draft of the Development Code was prepared prior to the comprehensive update to the General Plan. This draft was provided to PlaceWorks and is in the process of being completed. It is planned that this will be complete and taken for adoption concurrently with the General Plan.
Environmental Impact Report – Preparation of the Environmental Impact Report (EIR) is on hold pending completion of the draft land use plan. When complete, the EIR will address the General Plan, DTSP, and Development Code.
Local Hazard Mitigation Plan – A draft has been completed as of late 2023. Staff from the Police Department and Planning Division have reviewed the draft and provided comments to the consultant and are awaiting a resubmittal.
Truck Route Study – A truck route plan has been prepared but has not been adopted.
Staff have placed this project on temporary hold to allow for consistency review concurrent with the updated land use plan.
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2021-2025 Strategic Targets and Goals
The proposed updates to the General Plan, Housing Element, Specific Plans, and Development Codes aligns with Mayor, City Council, and City Manager Goal Number 4: Ensure Development of a Well-Planned, Balanced, and Sustainable City, in the following way: the Housing Element supports a wide range of housing types and levels of affordability; the Development Code ensures that the City is clean and attractive through implementation of development standards and regulations that address land use, landscaping, building setbacks, and other regulations designed to maintain an attractive and sustainable community; through the General Plan, which includes the transportation and circulation element, safety element, air quality, Open space and recreational uses, and other elements designed to propagate long-term economic growth, the City identifies and maintains infrastructure necessary to sustain the City’s current and future populations.
Fiscal Impact
Fiscal impact to the General Fund is $634,825.09, utilizing department salary savings.
Staff is requesting the increase in order to pay for the required additional services related to the Housing and Environmental Justice Elements.
Cost breakdown for the budget adjustment as identified in Attachment 3:
Task No. 1: Project Foundation Initiation $120,280.03
Task No. 2: Existing Condition/Background Report $ 67,165.04 Task No. 3: Public Outreach Strategy $169,708.52
Task No. 6: General Plan Update $248,465.25
Task No. 14: LEAP Grant – Housing Element $ 29,206.25
Total $634,825.09
FINANCIAL
DATA
Current Fiscal Year: Next Fiscal Year: Total Cost: Ongoing Cost:
COST $ 634,825.09 $ $
634,825.09
$
GENERAL
FUND
SHARE
$ 643,825.09 $ $
634,825.09
$
SOURCE OF FUNDS:
Department salary savings from the
Community Development and Housing
departments.
Budget Adjustment:
Yes
For Fiscal Year: 23/24
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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve a contract amendment in the amount of $634,820.09 for PlaceWorks to complete the tasks for which PlaceWorks was hired.
Attachments
Attachment 1: Amendment No. 2 to Agreement for Professional Services with PlaceWorks.
Attachment 2: Budget Augment Letter from PlaceWorks dated March 21, 2024
Attachment 3: Budget Analysis from PlaceWorks
Attachment 4: Updated Budget Augment from PlaceWorks
Attachment 5: PowerPoint Presentation
Attachment 6: Amendment No. 1 to the Agreement with Placeworks Attachment 7: Professional Services Agreement with Placeworks, Inc.
Ward:
All Wards
Synopsis of Previous Council Actions:
On September 6, 2020, the city entered into a Professional Services Agreement with PlaceWorks (Resolution No. 2020-231). Amendment No. 1 – On May 4, 2022, concurrent with the allocation of the LEAP Grant funds, a request was made for additional funding ($297,323.00) to be used for expanded public outreach.