SR-09-24-2013-3MCity Council Meeting: September 24 2013
Agenda
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
Recommended Action
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.
Executive Summary
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.
Background
On SPt2�[Lrnber 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 Decarriber s 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.
Discussion
Consultant Selection
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.
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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:
Account
Amount
01265.555060
$13,374
01264.555060
$13,373
S010400.589000
$13,373
$40,120
Prepared by: Karen Ginsberg, CCS Director
Approved:
Forwarded to Council:
Karen Ginsb g Rod Gould
Director, Co unity & ult iral Services City Manager
Approved:
Andy Agle C
Director, Housing & Economic
Development
Approved:
GI / L/\ i
David Martin
Director, Planning & Community
Development
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Reference:
Agreement No. 9804
(CCS)