HomeMy WebLinkAboutItem b - Funding Appropriation
DATE: November 29, 2022
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
Lisa Flores, Planning & Community Development Administrator
SUBJECT: RESOLUTION NO. 7473 AMENDING THE PROFESSIONAL SERVICES
AGREEMENT WITH KIMLEY-HORN AND ASSOCIATES FOR
ADDITIONAL WORK NECESSARY TO COMPLETE THE UPDATE TO
THE CITY’S HOUSING ELEMENT FOR THE 2021-2029 PLANNING
PERIOD IN THE AMOUNT OF $30,000, OFFSET BY A REDUCTION IN
THE GENERAL FUND RESERVE, AND EXTENDING THE CONTRACT
TERM TO JUNE 30, 2023
CEQA: Not a Project
Recommendation: Adopt
SUMMARY
An amendment to the Professional Services Agreement (“PSA”) with Kimley-Horn and
Associates in the amount of $30,000 is needed to complete a substantial number of
additional requirements from the State Office of Housing and Community Development
(“HCD”) to complete final certification of the City’s Housing Element. The amendment
would also extend the term of the PSA with Kimley-Horn to June 30, 2023.
It is recommended that the City Council adopt Resolution No. 7473 (refer to Attachment
No. 1) authorizing an appropriation to amend the Professional Services Agreement with
Kimley-Horn and Associates to complete the update to the City’s Housing Element for
the 2021-2029 planning period in the amount of $30,000, offset by a reduction in the
General Fund Reserve, and to extend the contract term to June 30, 2023.
BACKGROUND
In 2021, the City Council authorized a Professional Services Agreement with Kimley-
Horn and Associates to update the City’s Housing Element for the 2021-2029 planning
period (6th Cycle) in the amount of $208,692, of which a $150,000 was funded by a
Local Early Action Planning Grant (“LEAP”) to help defray much of the costs of the
Professional Services Agreement with
Kimley Horn and Associates
November 29, 2022
Page 2 of 4
Housing Element Update work. On March 18, 2022, the City Manager approved a
contract amendment in the amount of $7,500 to complete additional requirements from
HCD, bringing the contract amount to $216,192.
The original deadline for all cities in the State to submit their final draft Housing Element
for the 6th planning cycle (2021-2029) to HCD was October 15, 2021, with a “90-day
grace period.” However, on January 1, 2022, the state law changed and removed the
grace period and mid-cycle review. In its place, the final deadline became October 15,
2022.
On February 15, 2022, the City Council approved the draft Housing Element. Since the
adoption, the City has been through five extensive rounds of submittal with HCD. These
continued and repeated attempts to address the comments and issues provided by
HCD have led to a substantial amount of additional work on the Housing Element
Update.
Based on a meeting and discussion with HCD on October 10, 2022, the City was
provided with guidance that if the last remaining items were made and posted on the
City’s website for public review for at least seven (7) days, an extension would be
granted to October 20, 2022, to accommodate the comment period. Through their
review, HCD also informed the City that specific language had to be added to the City’s
original Resolution on the Housing Element, even though it was adopted by the Council
in February of this year. HCD had also indicated that the revisions to the Resolution
would be the last step to achieving certification. The fifth draft was posted on the City’s
website for public review on October 13, 2022, and re-submitted to HCD on October 20,
2022, within the prescribed deadline. The revised Resolution No. 7407 for the Housing
Element Update was adopted by Council on November 1, 2022.
On October 28, 2022, the City received a letter from HCD that one word was omitted
from one of the programs for residential care facilities and that group homes must be
allowed in all zones that allow residential uses without a conditional use permit. For this
reason, the draft Housing Element was not certified. On November 9, 2022, the final
amendments with the revised Resolution were submitted to HCD; staff is awaiting
approval.
The Housing Element Update is still under review by HCD. The path to achieving an
approved Housing Element has been complicated by HCD’s continuous changes to
their review and certification process, creating impacts for Arcadia as well as many
other cities. Therefore, it is necessary to appropriate additional funds to allow for the
consultant to complete the additional work and any final coordination necessary to
obtain certification.
Professional Services Agreement with
Kimley Horn and Associates
November 29, 2022
Page 3 of 4
DISCUSSION
Due to the substantial number of additional requirements imposed by HCD mid-way
through the Housing Element Update, an additional appropriation is needed to complete
the project. These changes, coupled with HCDs approach to the many iterations of
review, have led to a great deal of additional analysis and consultant work. The
response to comments was intensive throughout the process, and especially so for the
4th submittal, as HCD required a detailed, site-specific existing conditions summary for
every parcel on the inventory (a total of 392 parcels), in addition to edits to other
recommended program details, and changes to maps. Also, the extended timeline of
the project completion went beyond the anticipated submittal and completion date for
the project, which required subsequent work and coordination with the consultants.
None of these delays and additional deliverables could have been anticipated and were
beyond the scope of the original agreement.
While most of the work with Kimley-Horn and Associates is complete, it is
recommended that the consultant remain under contract until the final certification letter
is received. As such, it is recommended that the City Council extend the contract term
to June 30, 2023. During this time, Kimley Horn and Associations will be available to
respond to any questions HCD may still have or provide any requested supplemental
data. The extended term would provide a buffer in the event there are additional delays
in receiving certification. The requested actions would authorize the City Manager to
amend the PSA and contract with Kimley Horn to ensure completion of the Housing
Element Update efforts.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), as it can be seen with certainty it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
The current total contract amount for the Housing Element Update is $216,192, but
additional funds are necessary to complete the update for the 2021-2029 planning
period. Kimley-Horn and Associates has submitted an invoice for work completed in the
amount of $19,010. While this may be the final amount of contract costs, it is
recommended that the proposed amendment allocate an additional $30,000 to provide
additional funds, should HCD have more corrections to the updated Housing Element.
This would bring the total contact amount to $246,192. There is sufficient funding
available in the General Fund Reserve for appropriation of the requested $30,000.
Professional Services Agreement with
Kimley Horn and Associates
November 29, 2022
Page 4 of 4
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 7473 authorizing an
appropriation to amend the Professional Services Agreement with Kimley-Horn and
Associates to complete the update to the City’s Housing Element for the 2021-2029
planning period in the amount of $30,000, offset by a reduction in the General Fund
Reserve, and extending the contract term to June 30, 2023.
Attachment No. 1: Resolution No. 7473