City Council Report
City Council Meeting: September 24, 2013
Agenda Item: 3-M
To: Mayor and City Council
From: Karen Ginsberg, Community and Cultural Services Director
David Martin, Planning & Community Development Director
Andy Agle, Housing & Economic Development Director
Subject: Agreement Amendment for Financial Feasibility Analysis Related to Proposed Parks and Affordable Housing Linkage Fees
Staff recommends that the City Council authorize the City Manager to negotiate and execute a second modification to Professional Services Agreement No. 2585 in the amount of $40,120 with HR&A Advisors, Inc., a California-based organization, to complete the financial feasibility analysis related to proposed Parks and Commercial Development/Affordable Housing Linkage Fees. This will result in a two-year agreement with a new total amount not to exceed $97,995.
In 2012 HR&A was selected from a short list of economic consultants established from a Request for Qualifications (RFQ) process to complete the financial feasibility analysis for the proposed Transportation Impact Fee (TIF). A first modification in April 2013 increased the agreement in an amount not to exceed $57,875 for related financial feasibility analysis associated with the proposed Parks and Commercial Development/Affordable Housing Linkage fees. Staff recommends extending the agreement with HR&A through December 31, 2014 to complete the remaining scope of work associated with the analysis. This second modification would increase the contract by $40,120 resulting in a two year agreement total of $97,995.
On September 8, 2009, Council directed staff to pursue the creation of an open space linkage fee on new development to achieve the open space and parks and recreation goals set forth in the LUCE. On December 11, 2012, Council directed staff to establish an affordable housing linkage fee for new commercial development. In accordance with the State Mitigation Fee Act (AB1600 et seq.), the City has prepared draft nexus studies for these two possible fees for upcoming consideration by the Council.
In December 2012 HR&A advisors, Inc. was selected pursuant to SMMC section 2.24.073 (CCS) due to the specialized nature of the analysis needed. HR&A Advisors, Inc. specializes in economic, development and market analysis with over 30 years of experience throughout the United States. The proposed second modification of the agreement would result in a total contract amount of $97,995, creating the need for Council approval.
In December 2012 the City executed Professional Services Agreement No. with HR&A, Advisors, Inc. in an amount not to exceed $24,975 through a term ending on December 31, 2013 for a financial feasibility analysis related to the proposed Transportation Impact Fee (TIF). Building upon the analysis prepared for the TIF, in April 2013, a first modification of the Agreement resulting in a total contract amount of $57,875 was approved for HR&A, Advisors, Inc. to prepare financial feasibility analyses for the proposed parks and commercial development/affordable housing impact fees. The proposed second modification would increase the contract by $40,120 and extend the term through December 31, 2014. This amendment would enable HR&A Advisors, Inc. to perform additional financial analysis of the proposed impact fees for six new development prototypes within the downtown and commercial corridors. The total contract amount through December 31, 2014 would be $97,995.
Financial Impacts & Budget Actions
The modification to be awarded to HR&A, Advisors, Inc. is $40,120 for an amended agreement total not to exceed $97,995. Funds are available in the FY2013-14 budget in the following accounts: