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SR-07082008-1E~~r ~;tYOf City Council Report Santa MonicaW City Council Meeting: July 8, 2008 Agenda Item: i _ ~ To: Mayor and City Council From: Eileen Fogarty, Director of Planning and Community Development Subject: Agreement for the preparation of a Tenant Impact Report, including a relocation plan, related to the closure of Village Trailer Park Recommended Action Staff recommends that the City Council authorize the City Manager to execute a professional services agreement with Del Richardson & Associates, Inc. in an amount not to exceed $86,500 for the preparation of a tenant impact report, including a relocation plan, related to the closure of Village Trailer Park at 2930 Colorado Avenue. Executive Summary As-part of the ongoing developmeht agreement process for the closure of the Village Trailer Park, a tenant impact report, including preparation of a relocation plan, is required pursuant to State Law: The City is managing. the preparation of a revised tenant impact report in order to ensure there is a comprehensive relocation plan and compliance with State Mobilehome closure law in approving local agency permits required for a change of use. After a competitive bidding process, staff selected Del Richardson & Associates to prepare the tenant impact report and relocation plan for the closure of Village Trailer Park. The entire contract amount will be deposited. by the developer, Village Trailer Park LLC. Background The Village Trailer Park currently"has 109 rent-controlled. spaces of which approximately 83 are occupied. The Santa Monica Rent Control Board has indicated that a removal permit will be required in accordance with Section 1803(t) of the City Charter. The park owner served a notice of termination to park residents and a tenant impact report; however, the closure has been postponed pursuant to the terms of a Memorandum of Understanding between the City and park owner. to allow the park owner to pursue a development agreement for redevelopment of the site. 1 In exchange for postponing the park closure, the City has agreed to process a development agreement for a proposed mixed-use project or alternatives to be scoped in an EIR for the project. On November 27, 2007, the City Council directed. staff to proceed with the development agreement. The development agreement process allows the City flexibility beyond the limitations of the Government Code in terms of relocation costs and options. Discussion As noted in the executive summary, the closure of the Village Trailer Park requires preparation of a tenant impact report, including a tenant relocation plan. Government Code Section 65863.7 and California Mobilehome Residency Law (Civil Code Division 2, Part 2, Chapter 2.5) state: "Prior to closure of a mobilehome park or cessation of use of the land as a mobilehome park, the person or entity proposing the change in use shall file a report on the impact of the. conversion, closure, or cessation of use upon the displaced residents of the mobilehome park residents. The report shall address the availability of adequate replacement housing in mobilehome parks and relocation costs." The preparation of the tenant impact report will include-the following tasks: • Interview of park residents to understand their relocation preferences; • Explanation of available relocation options to tenants; • Creation of relocation plan that matches relocation options to resident preferences; • Preparation of tenant impact report; and • Determination of appropriate economic comparisons for trailers and coaches through an appraisal of the mobilehomes in accordance with a methodology to be determined after future meetings between city staff, the developer, and the residents' attorneys (the appraisals will inform potential relocation options for residents). 2 Contractor/Gonsultant Selection Staff issued an RFP on March 10, 2008 for the preparation of a tenant impact report, including relocation plan, related to the closure of Village Trailer Park. Three firms responded to the request. Staff reviewed the proposals and interviewed The Loftin Firm and Del Richardson & Associates. After full evaluatiori of the proposals, it was determined that Del Richardson & Associates was most qualified to fulfill stafFs needs for the preparation of the tenant. impact report and relocation plan based on their extensive experience in the preparing tenant impact reports and relocation plans for mobilehome park conversions. Financial Impacts & Budget Actions The total cost of this contract is $86,500, which will be deposited by the developer to account #80.201172. Prepared by: Jing Yeo, AICP, Senior Planner Forwarded to Council: Director, Pl~nnifig and C~mmunity Development ~(iont Ewell Manager F:\CityPlanning\Share\EIRTEMPS\Village Trailer Park\Relocation Contract\VTP Relocation Consultant CC SR.doc 3 Reference Contract No. 8944 (CCS).